Google AIS Custom Search

auto (139)

Social Media Guidelines

A Blueprint for Policies in Dealerships

Social Media Guidelines A Blueprint for Policies in Dealerships At this point, a large number of dealerships have jumped into using social media for one purpose or another—marketing and branding, reputation management, customer relationship management, even lead generation. Even if your dealership has not jumped on the social media bandwagon, however, you can be assured that at least some (if not the majority) of your employees are either occasional or avid users. Some of your salespeople may already be using Facebook or Twitter to communicate with current customers or prospects via their own personal accounts. That being the case, it may soon, if it has not already, become necessary for you to address the proper use of social media by both the dealership and individual employees, and determine what your policies should be. Dealers who embrace using social media in the dealership seem to be of differing opinions on whether or not formal guidelines are needed for employees. Some dealers believe that it is necessary to provide rules and structure only when employees are representing the dealership on social media in an official capacity—posting on the dealership’s Facebook page, contributing to the dealership’s blog or otherwise assisting in the dealership’s reputation management. Other dealers believe that guidelines are needed to address employees’ individual conduct during personal social media use, especially if it relates to their work in any way. Still others are of the opinion that trusting employees to responsibly represent the dealership on social media, whether in a personal or professional capacity, is no different than trusting them to represent the dealership over the phone or out in public; they believe that if they hire the right people it shouldn’t be a cause for concern. Chris Boudreaux, senior vice president of services at social media agency Converseon and creator of the website SocialMediaGovernance.com, in his December 16, 2009, report entitled, “Analysis of Social Media Policies: Lessons and Best Practices,” suggested that a company create at least two policies: “One policy that sets the expectations and boundaries for all employees, including any relevant limitations or suggestions for the personal use of social media,” and “Operational guidelines for employees working on social media as part of their job.” Employees’ Individual Use of Social Media While you can’t exactly dictate how your employees use their personal social media accounts, you can provide some guidance as to appropriate conduct when their use of social media intersects with their professional life, and having these guidelines written down as part of company policy might just protect the dealership from the FTC if an employee behaves improperly online. Jim Radogna of Dealer Compliance Consultants noted in a July 27, 2011, blog post on AutoDealerPeople.com, “According to FTC guidelines, ‘The Commission agrees that the establishment of appropriate procedures would warrant consideration in its decision as to whether law enforcement action would be appropriate use of agency resources. The Commission is not aware of any instance in which an enforcement action was brought against a company for the actions of a single ‘rogue’ employee who violated established company policy that adequately covered the conduct in question.’” Thankfully, establishing social media guidelines pertaining to employees’ individual use of social media needn’t involve pages upon pages of rules. There are some guidelines for employee social media use that seem to be universal among businesses in many different industries: • Any use of social media for work purposes should be confined to your work day. Any social media activities pertaining to work that are conducted outside normal work hours will be considered optional and voluntary on your part. • Be transparent. If a conversation pertains to the business or the automotive industry, identify yourself as an employee of the dealership. If you have a vested interest in what is being discussed, be the first to point it out. • When posting comments on matters related to the business and the automotive industry, identify your views as your own personal opinions and not reflective of the views of the dealership’s owners or management. • Be honest. Don’t post anything that is untrue or misleading, and don’t encourage others to post anything untrue or misleading about the dealership, such as a fake “customer” review. • If you encounter something that requires an official response from the dealership, such as negative comments about the kind of service a customer received or a false statement about an individual at the dealership or about the dealership itself, relay the information to the appropriate person in management so that the matter may be dealt with through the proper channels. Do not attempt to respond on behalf of the dealership. • Be courteous and have respect for others. This means respect for individuals, respect for the dealership and respect for competitors. Don’t make derogatory comments about the competition, whether it’s a competing dealership or another vehicle manufacturer. Respectfully acknowledge differences of opinion and don’t pick fights. Don’t use language that may be deemed offensive, inappropriate, demeaning, threatening or abusive. If you speak about others, do not disparage them or state anything that is not factual. • Protect confidential and proprietary information, and respect others’ privacy. Customer information must be protected in accordance with the dealership’s information safeguards and privacy policy. Do not identify a customer without their express permission; this includes posting photographs of their new vehicle or commenting/congratulating them on their purchase. Do not reveal proprietary information regarding dealership operations. • Respect copyright and fair use laws. Don’t claim authorship of someone else’s work; always attribute quoted information to its original author or source. Do not post copyrighted information without written reprint authorization. As a general rule, it is better to simply link to information you wish to share rather than repost it. • Remember that the Internet is everywhere, and it is permanent. Anything you post can be read not only by friends and family but possibly by other dealership personnel and competing dealerships. Also, search engines and other technologies make it virtually impossible to take something back once it’s “out there.” Think before you post. • Engage in meaningful dialogue. Try to add value to a discussion and provide worthwhile information and perspective. For example, don’t merely jump into a discussion about a 2012 Chevrolet Camaro to tell someone you can get them a great deal on one. No one appreciates random solicitations. Think more along the lines of commenting that you drove one when it first arrived at the dealership and were really impressed with the V6 engine on the 2LS trim. • Own up to your mistakes and correct them. If you have misstated something or been in the wrong, admit your mistake up-front and move quickly to correct it. Use of Social Media in the Dealership Social media sites can be great assets for a dealership when it comes to advertising and/or marketing as well as reputation management, if they are used correctly. When used incorrectly or carelessly, social media can bring headaches and even legal trouble. Here are a few things to keep in mind when it comes to your dealership’s use of social media: • Although social media sites are regarded as comparatively casual communication channels in contrast to traditional media, any advertising activities conducted on social media are subject to the same rules. Any advertising you do or anything you post that could be construed as advertising, including the posting of inventory, must meet state and federal truth-in-advertising standards. Also be aware that the Federal CAN-SPAM Act can apply to messages sent by commercial social networking sites. • Don’t tweet about or post every bit of inventory you have on Facebook. Most dealers have already figured out that this can be a real turnoff for social media followers; it clogs up other users’ news feeds and is considered annoying. That isn’t to say you can never post about your inventory. If you take in a particularly interesting or unique vehicle on trade or get a handful of a certain in-demand new model from the manufacturer, by all means, use it to generate interest. However, if you post listing after listing, eventually others will simply tune it out as virtual white noise or drop you altogether. Also, keep in mind that the posting of inventory could be considered an advertisement and as such is subject to state and federal regulations. • Have a set procedure in place for dealing with any negative comments about the dealership encountered online. Designate someone in dealership management to deal with and respond to negative comments, and make certain employees understand that they are to notify that individual about such encounters rather than attempt to respond on their own. This way, you can ensure that everything is dealt with in the same manner and consistent with the best interests of the dealership. • Don’t post fake reviews. By that same token, don’t alter or omit content or otherwise manipulate the content of a review. The Federal Trade Commission’s Guides Concerning the Use of Endorsements and Testimonials in Advertising state, “Endorsements must reflect the honest opinions, findings, beliefs, or experience of the Endorser … [T]he endorsement may not be presented out of context or reworded so as to distort in any way the endorser’s opinion or experience with the product.” The FTC can impose stiff penalties for violating its rules by planting or allowing someone else to plant fake reviews. • Keep in mind that while you can offer a customer an incentive such as a free oil change to write a review about the dealership, according to FTC regulations the customer writing the review must disclose the source and nature of any compensation they receive. • Obtain permission from a customer before posting any photos or messages pertaining to that customer’s vehicle purchase online. They may not want everyone in the virtual world to know they just made a major purchase. Respect their privacy. • If you opt to hire a third-party company to help manage your online reputation or social media presence, be certain that company is aware of and adheres to state and federal advertising regulations as well as your dealership’s own social media policies. • If a customer expresses dissatisfaction online with how something was handled by the dealership or believes a mistake was made, don’t get defensive and don’t argue with them publicly. Acknowledge the customer’s feelings and request that the customer contact the dealership so that you can make a good faith effort to resolve the problem to their satisfaction. HR Use of Social Media The use of social media by a company’s human resource department, either to monitor current employees or screen job applicants, has been hotly debated recently as more and more reports emerge of employers seeking to gain access to current or prospective employees’ social media accounts. In some cases, employers have gone so far as to demand social media login and password information from individuals who have set their profiles to use the highest privacy settings. Facebook specifically addressed this trend in a March 23, 2012, post by Erin Egan, Chief Privacy Officer, Policy, Facebook: “In recent months, we’ve seen a distressing increase in reports of employers or others seeking to gain inappropriate access to people’s Facebook profiles or private information. This practice undermines the privacy expectations and the security of both the user and the user’s friends. It also potentially exposes the employer who seeks this access to unanticipated legal liability. The most alarming of these practices is the reported incidences of employers asking prospective or actual employees to reveal their passwords.” The post went on to note that Facebook has “made it a violation of Facebook’s Statement of Rights and Responsibilities to share or solicit a Facebook password.” A March 20, 2012, article by Manuel Valdes and Shannon McFarland of the Associated Press noted that some employers, rather than asking for employees’ logins and passwords, are asking applicants to “friend” the company’s HR manager or to log into their social media accounts during interviews. The article also noted, “Questions have been raised about the legality of the practice, which is also the focus of proposed legislation in Illinois and Maryland that would forbid public agencies from asking for access to social networks.” A March 25, 2012, Associated Press article noted that Senators Charles E. Schumer of New York and Richard Blumenthal of Connecticut were calling on the Justice Department and the Equal Employment Opportunity Commission to begin investigations into whether employers asking for Facebook passwords during job interviews are violating federal law. In a press release also dated March 25, 2012, and posted on Senator Blumenthal’s website (blumenthal.senate.gov), the senator stated, “I am alarmed and outraged by rapidly and widely spreading employer practices seeking access to Facebook passwords or confidential information on other social networks .… A ban on these practices is necessary to stop unreasonable and unacceptable invasions of privacy.” Dealer Compliance Consultants, in its “Social Media Policy Guidebook for Auto Dealerships,” said that “friending” an applicant should be avoided and could potentially open an employer up to invasion of privacy claims by potential employees. Even if an individual has not restricted access to their social media profile information and it is easily discovered during an Internet search, this can still be potentially problematic for an employer. That same publication notes, “When a job candidate is the subject of a social media search there’s a possibility that the search will reveal information that would be off limits in an interview, such as age or marital status. Hiring managers should be very careful in using private information people are posting publicly to make hiring decisions.” This practice could open a dealership to allegations of discrimination. The publication also points out that even if the hiring manager did not rely on anything unlawful, the information on social media sites might not be reliable. For these reasons and more, according to Dealer Compliance Consultants, “Given the real possibility for inappropriate and illegal uses in the hiring context, organizations need to carefully consider how, if at all, they utilize the sites when screening candidates.” To insulate the dealership from this type of risk, an outside agency could be used to screen potential employees. However, dealers need to make certain any such third-party company follows the correct procedures and that the dealership’s job applications contain the necessary notifications. According to Dealer Compliance Consultants, “If an employers uses a third party to conduct searches on job candidates, the federal Fair Credit Reporting Act and applicable state law on background checks likely will apply.”

Source - http://www.autodealermonthly.com/72/4565/ARTICLE/Social-Media-Guidelines-for-Dealerships.aspx

Read more…

Graphic Courtesy of http://www.automotivedigitalmarketing.com 

http://www.dealersynergy.com 

DETROIT (Reuters) -- The deteriorating European markets have led auto industry executives to worry about possible contagion spreading across the Atlantic, but June new-car sales in the United States are expected to hit a five-year peak for that particular month.

Auto sales, which offer an early snapshot of consumer demand, have been one of the bright spots in the U.S. economy for several months until May results came in short of expectations and raised concerns about the sector's recovery.

Analysts and industry officials, however, said there are just too many old cars that need to be replaced, which will drive consumers into dealers' showrooms.

The average age of cars on the road is an all-time-high 11 years.

"The most interesting thing is the ongoing battle between pent-up demand and concern over financial issues," said Karl Brauer, chief executive of research firm Total Car Score. "There is, by no means, clear sailing ahead on the financial issues, but people are getting really tired of driving their old cars."

Economists polled by Thomson Reuters see the annual selling rate for new cars in the U.S. market in June finishing at 13.9 million vehicles.

That would mark the second month in a row below the 14 million rate, but would exceed last month's 13.7 million.

Opinions vary, however, as TrueCar.com expects a sales rate of 13.6 million, while General Motors CEO Dan Akerson said on Thursday the market was "surprisingly strong" and he saw it finishing between 14 million and 14.2 million.

J.D. Power and LMC Automotive, and Edmunds.com see sales rising 20 percent from last year to about 1.27 million new cars and trucks, while TrueCar sees an increase of 18 percent.

That would be the highest level since 1.46 million were sold in 2007, just before the U.S. economy slipped into a recession that forced GM and Chrysler into bankruptcy.

Some of the projected increase will be due to a recovery by Toyota Motor Corp. and Honda Motor Co. from the impact of last year's earthquake in Japan that hurt U.S. supplies.

Major automakers including GM, Ford Motor Co. and Toyota will report June U.S. new-car sales on Tuesday.

Second-half worries

The downward spiral of the European market has raised concerns, however.

"I'm a little bit worried about the second half because we see softness in Europe," Akerson said Thursday at an event in Chicago. However, his positive forecast for June U.S. sales was based on the pent-up demand in the market.

Ford echoed Akerson's concerns on Thursday when it warned that second-quarter losses from operations outside North America could triple the $190 million first-quarter loss, hurt mainly by weakness in Europe.

The No. 2 U.S. automaker still sees an overall profit, however, as North America remains strong.

"The good news is we still have growth in the economy. It is moderate," Ford North American chief Mark Fields said earlier in the week. "Some of the economic figures in the last six weeks are a little bit contradictory.

The housing starts and permits actually were up. At the same time, we've seen consumer confidence come off its high earlier this year."

Ford expects a June sales pace in the high 13 million-vehicle range, he said.

"The (annual sales rate) does appear to be slowing down from the 14.6 million level in the first quarter, which we attribute to some demand pull forward into the first quarter with the warm winter and an increasingly cautious consumer given some signs of a slowing U.S. economy," RBC Capital Markets analyst Joseph Spak said in a research note.

Spak expects a June sales rate of 13.9 million vehicles, but said lower gasoline prices, easier access to credit and newly launched cars will bolster second-half demand.

He added there are more downside risks to his industry estimate at this time.

Analysts expect sales in June to decline from May, but Kelley Blue Book said such a decrease is what normally occurs this time of year.

Since 2007, the daily selling rate has dropped between 3 percent and 10 percent from May to June, putting the company's projected 8 percent decline within that trend.

Despite the expected second straight month below a 14 million sales rate, analysts are not backing off full-year U.S. sales projections yet.

"Despite the relative slowdown in the last few weeks, the first-half sales results this year indicate a relatively healthy car industry; perhaps the brightest spot in an otherwise struggling U.S. economy," said TrueCar analyst Jesse Toprak. "We expect second-half of 2012 to average around 14.5 million units."

J.D. Power and LMC still expect 2012 sales of 14.5 million new cars and trucks.

"We're seeing healthy retail sales growth as we head into the summer selling season and as automakers change over to the 2013 model-year vehicles," said J.D. Power analyst John Humphrey. "All indicators point toward an industry that continues to get healthy."



Source: http://www.autonews.com/article/20120630/RETAIL01/120629879#ixzz1zNUwocKk

Read more…

If you want to Sell MORE Cars…

Remember “Macro” Versus “Micro”

http://www.dealersynergy.com 

http://www.seanvbradley.com 

The goal is to sell more cars, more often and more profitable. The question is how can we do this? How can we stack the deck in our favor to ensure consistent success? The answer is to sell on a Macro level versus a micro level. First, let me explain the difference between the two. “Micro” selling is the way the typical sales consultant sells… one deal at a time, working off of “Ups” or referrals. “Macro” selling is when you are able to sell multiple units at a time or sell to multiple people at a time. For example “Fleet” sales is a form of macro selling, if you have a company that wants to buy several units in one deal. Sometimes this might be better than selling one unit at a time and sometimes it’s not. You might be thinking how can you even say something like that Sean…? Simple, with a lot of “Fleet” deals, there might be multiple units getting delivered however; they are discounted or heavily discounted because the client is buying multiple units in one transaction. So, is it better to sell one unit at a $2,200 (total) gross or sell four units in one fleet transaction for a TOTAL gross of $4,000? That is a good argument. On one hand you are making $4,000 on the other hand you are obviously NOT maximizing on gross. Before I give you my opinion, I want to share with you some statistics that might BLOW YOUR MIND!

  • You have a six percent closing ratio off of OEM leads (Leads from your manufacturer)
  • You have an eight percent closing ratio from 3rd party leads… but remember that over 70+ percent of the leads you get from 3rd parties originates from search engine optimization and or search engine marketing
  • You have a 14-16 percent closing ratio from leads you generate through SEO and SEM initiatives and or from leads from your dealership website.

*** (Here is the MIND BLOWING PART)

  • On average you have a 27 percent closing ratio from membership buying services like:
    • Costco
    • BJs
    • Sam’s Club
    • AAA
    • Etc…
    • As a matter of fact Costco had a 35 percent closing ratio!

People believe that if they are in a “Membership Buying Program” they will get a better deal. Numbers do not lie. Most dealerships and most sales people sell the hardest way “One at a time”. There is a better way… “Macro Selling”.

What you need to do is start a “Membership Buying Program” for your dealership. Here is a very serious example of how I did this myself when I was a manager at a dealership in New Jersey. I created a membership buying program through my dealership for law enforcement. I worked with a company called www.njcops.comit is both a FREE newspaper as well as a website. It goes to EVERY law enforcement division in the state of New Jersey. For example:

  • Every Police Department in NJ
  • Every Sheriff Department in NJ
  • Every Correctional Facility in NJ
  • Every State Trooper Barrack in NJ
  • Every Federal Agency located in NJ
  • EVEN Law Enforcement from outside NJ like NY, Maryland etc… views this publication.

I created a full page ad in the free publication as well as full digital marketing and branding on their website www.njcops.com . I came up with a complete value package proposition (An AWESOME, “Why Buy From Us”).  Basically the ad said “Show me your badge and we will…” But it wasn’t JUST for the officers… it was for EVERYONE at the police department including dispatch etc… And their spouses and their kids and… Do you get it? It was for EVERYONE. Sound familiar…?? There is ALWAYS a sale going on EVERYDAY at your dealership at EVERY dealership. Same concept, Perception is REALITY! We wanted EVERY single person reading NJ COPs Magazine and website to think and know that if they or ANYONE they knew wanted or needed ANYTHING automotive… Sales, Service, Parts, Finance, Special Finance, Body Shop, Aftermarket. There was NO OTHER PLACE OTHER than Sean V. Bradley and my Dealership!  

We literally signed up 22 different Police Departments in 1 week! And we sold a ton of cars! Let me explain further, when I say that we signed up 22 police departments in 1 week. That means that 22 different police departments as well as every one of their officers, employees, family and friends. Anytime anyone needed anything automotive they came to me and my dealership. We were our own Costco, BJs, Sam’s Club, AAA. We eventually moved beyond just law enforcement. We created a membership buying program for the military, teachers, firefighters and more.

What you need to do to start selling on a macro level versus a micro level is:

  • Understand the difference
  • Identify which “Macro” audience you want to target first. It might not be law enforcement or military. For example if you are highline and you are in Clear Lake Texas (Right next to NASA), you might want to target NASA…
  • Create a POWERFUL “Value Package Proposition” for your targeted Macro Audience.
  • Create a POWERFUL Marketing Campaign to fully engage your new audience
  • Get ready to sell a lot more cars!

If you have ANY questions about this article or if you would like me to help you identify what “Macro” opportunities you have in your area, please feel free to email or call me

Read more…

Global Consumers Place Highest Trust in Earned Media

Online automotive consumers place the most amount of trust in earned media, and the least in ads served on mobile phones, finds Nielsen [download page] in an April 2012 report. An impressive 92% of automotive consumers surveyed around the world said they trust earned media, such as word-of-mouth or recommendations from friends and family, an 18% increase from 2007. Automotive consumer opinions posted online (70%) was next-most trusted, outpacing other formats such as editorial content within newspaper articles, dealership and car company websites (both at 58%). Text ads on mobile phones are trusted by just 29% of automotive consumers.

This finding contrasts with April 2012 survey results from Ipsos, which found that while automotive consumers worldwide may turn to their friends for advice on vehicle purchases and repair services, only 38% will trust a dealership, make of vehicle or a service department more because friends recommended it.

Traditional Media Takes a Fall
Data from Nielsen’s “Global Trust in Advertising 2012″ indicates that automotive consumer trust in traditional paid advertising messages has taken a significant drop. While close to half say they trust TV (47%), magazine (47%), and newspaper ads (46%), confidence in these ads has dropped by 24%, 20%, and 25%, respectively from 2009 to 2011, when the latest survey was conducted.

Despite this fall in trust, traditional media ads, particularly on TV, appear to have their intended effect. According to April 2012 survey results from ExactTarget, TV ads influence a larger proportion of online automotive consumers... a product or service than a variety of other advertising media. 53% of respondents said a TV ad had influenced them to purchase a vehicle or maintenance service in the past 12 months, putting TV ads far ahead of newspaper ads (32%) and magazine ads (30%). In fact, three times more respondents said they had been influenced by a TV ad than by a banner or other ad on a website (53% vs. 18%).

Trust in Online Ads Low, But Growing
The Nielsen study finds that trust in most online ads is relatively lower than on traditional media, save for ads found on OEM branded websites, which are trusted by 58% of consumers. For example, only 40% trust ads served in search engine results, while just 36% trust online video ads, or ads on social networks. These findings are similar to Nielsen and NM Incite survey results released in February 2012, which found more trust in branded website ads than any other form of online adv....

Despite low rates of trust in online banner ads (33%), this represents a 27% increase since 2007. Similarly, while the level of trust placed in mobile phone advertising is still low, at 29%, this is an increase of 61% since 2007, and 21% since 2009.

Attitudes Towards Relevance Mirror Trust
The Nielsen survey also asked respondents to identify which advertising and brand messaging platforms are the most relevant to them when searching for information about the products, finding that the relevancy results often mirrored the trust responses. Recommendations from friends and family again topped the list, at 90% of respondents, followed by consumer opinions posted online (75%), branded websites (59%), and editorial content such as newspaper articles (55%). The relevance of paid traditional media platforms ranged from about 40-50%, while many online platforms scored lower, save for ads served in search engine results (42%).

Other Findings:
Latin American consumers had the highest levels of trust across 17 of the 19 advertising methods identified, when compared to other regions.
Trust in mobile phone ads was highest in the Middle East and Africa, with 40% indicating trust in text ads on mobile phones. These consumers also placed more trust in billboard and outdoor advertising than the global average (59% vs. 47%).
Consumers in Asia Pacific reported a higher level of trust in all formats surveyed when compared to the global average. They also had the highest level of trust in earned media, such as recommendations from friends and family (94%) and consumer opinions posted online (76%).
North Americans and Europeans appear to be the most skeptical consumers, with European respondents reporting the lowest levels of trust in all but 1 format (consumer opinions posted online - 64%).

About the Data: The Nielsen Global Trust in Advertising Survey was conducted in August/ September 2011 and polled more than 28,000 consumers in 56 countries throughout Asia Pacific, Europe, Latin America, the Middle East, Africa and North America. The Nielsen survey is based on the behavior of respondents with online access only. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% internet penetration or 10M online population for survey inclusion.

Source - http://www.marketingcharts.com/television/global-consumer-trust-highest-in-earned-media-21766/ 

Read more…

Have you ever seen a car dealership ad that promises to pay off the loan balance of your trade-in, even if you owe more than the value of the trade-in? Well, the Federal Trade Commission has stopped a handful of dealers from continuing to deceive buyers with this too-good-to-be-true offer.

See, what was happening, says the FTC, is that the dealers would just take that negative equity and roll it over into the loan for the new car. One dealer even required customers to go out of pocket for the difference.

"Buying a new car or truck is a major financial commitment, and the last thing consumers need is to be tricked into thinking that a dealer will 'pay off' what they owe on their current vehicle, when they really won't," said David Vladeck, Director of the FTC's Bureau of Consumer Protection. "The Federal Trade Commission is constantly on the lookout for potentially deceptive ads, and brings actions to stop them when appropriate."

The specific dealers named in the FTC complaints are: 1) Billion Auto, Inc., in Sioux Falls, South Dakota; 2) Frank Myers AutoMaxx, LLC, in Winston-Salem, North Carolina; 3) Key Hyundai of Manchester, LLC and Hyundai of Milford LLC, in Vernon and Milford, Connecticut, respectively, and which advertise jointly; 4) and Ramey Motors, Inc., in Princeton, West Virginia.

An ad for Key Hyundai contained the following statement: "I want your trade no matter how much you owe or what you're driving. In fact I'll pay off your trade when you upgrade to a nicer, newer vehicle." And Ramey Motors promised to "pay off your trade no matter what you owe . . . even if you're upside down, Ramey will pay off your trade."

The FTC has ordered these businesses to stop misrepresenting that they will pay the remaining loan balance on a consumer's trade-in.

The Commission says it began looking into these deceptive practices as a result of one of last year's public roundtables regarding consumer protection issues that may arise in the sale, financing or lease of motor vehicles.

FTC Takes Action To Stop Deceptive Car Dealership Ads [FTC.gov]

Links - http://consumerist.com/2012/03/ftc-goes-after-car-dealers-for-lying-to-customers-about-trade-ins.html 

Read more…

Auto Dealers Build Trust by Personalizing Follow-Up Emails
http://www.drivingsales.com
http://www.dealersynergy.com
REPOST from DrivingSales.com Writen By Justin Braun. Auto dealers know the follow-up process is one of the most critical elements of lead conversion. This is especially true for leads generated through automotive live chat. To be successful in this business and build trust with consumers, dealers must follow-up with leads quickly and be precise and specific in their communication. For leads generated from automotive live chat, the chat transcript holds vital information about the prospect’s desires and how far along he or she is in the conversion funnel.

But, how can auto dealers be specific, personal and build trust in a timely manner?

Understandably, auto dealers hate to email out a price without first talking to someone. Dealers should simply focus on continuing to build the relationship with the prospective customer that was initiated by the live chat conversation while providing information that move the customer forward in the sales process.

In this blog, we analyze a real-life situation in which a dealer failed to follow-up appropriately with a chat lead. Then, we discuss appropriate and effective ways to follow-up with chat leads (and all Internet leads) so that they convert into sales and move forward in the sales process.

Below is an example of a failed follow-up process, straight from the chatter’s mouth…er, their fingers.

“Hello. Not too sure if you can answer my question. But how long does it usually take to get the bottom line price on a car? I originally inquired on 1.26.12 and then again yesterday. I have received the same auto reply/generic email thanking me for my interest.

Its okay. I just wanted to know if the manager would take the time to reply or if I should just forget about it and move on.”

Nothing is worse than spamming your leads with robotic, impersonal auto-replies. Something we stress to our auto dealer clients is to always be personal in your follow-up responses. As you can see from the last sentence of the chat, this ready-to-buy prospective customer has lost all trust is on the verge of giving up on the dealership.

So dealers, how would you salvage this situation and prevent it from happening in the future? Here are a few tips:

Send a personal email

A personal touch is all your prospects are looking for. It doesn’t have to be long – both you and the customer live busy lives – 3 to 5 sentences addressing the situation will salvage the sales process. Using the phrase, “My online sales assistant let me know you were interested in ______,” can be very effective. Fill in the blank and take it from there. Also, don’t forget to include a call to action. Never end an email with a statement! Conclude your email with a question to prompt a response.

Follow-up with relevant and specific information

Confirm special features/options on the vehicle ( something as simple as leather seats or advanced options like Bluetooth)
Confirm availability (and interior color and condition if it is pre/owned)
Send a pic of the actual vehicle and offer to send more
Give a bullet point of what the next steps are in the buying process
Explain advantage of buying from you
Remind the prospect of what is needed for the test drive( license, and whatever else they may want)
Provide info on what services or reconditioning on the pre-owned vehicle has been done

Read what is given to you

Read the chat transcript, form lead or any other consumer insights you have. Know what the customer wants and give it to them. It’s that easy! Remember that the chat conversation has already developed a relationship between your dealership and the prospective customer. An impersonal auto-response removes the customer entirely from the sales process and ruins your rapport.

By acting as an advocate in the follow-up process, auto dealers can provide consumers with information and then ask questions to assist them in moving forward through the sales process. Keep in mind that consumers don’t buy a car every day, week, month or year. Every “inside” tip you give prospects builds upon the trust already established by the live chat conversation.

Remember, the leads received through automotive live chat are a product of a two-way conversation. A template email saying thanks for your interest just stalls customers and erodes any trust built during a live chat conversation.

Remember, the leads received through automotive live chat are a product of a two-way conversation.

In addition to these tips, ActivEngage CEO Todd Smith offers additional advice that will not only help ensure auto dealers successfully transform chat conversations into leads, but will help them stand out in the marketplace during the critical follow-up process.

Read more…

As social media continues to grow in influence in the automotive industry, Nissan is connecting with that powerful force to help create an ultimate street/track 370Z, called “Project 370Z.” Launched at a special blogger media day at the 2012 Chicago Auto Show.

Nissan enthusiasts are invited to vote on modifications and follow the construction online through Facebook.com/nissanperformance. The finished vehicle will be revealed May 17 at the annual ZDayZ gathering in North Carolina.

“Think of Project 370Z as a factory project car built in a non-factory way,” explained Erich Marx, director, Social Media & Interactive Marketing, Nissan North America. “Nissan Z® owners are among the most active of all on social media. We can’t wait to see how the finished vehicle turns out.”

At the show’s social media day, in the second year it has been held, Nissan also hosted a Google+ Hangout, and made sure the bloggers were introduced to culinary delights provided by a Southern Mac & Cheese Nissan NV food truck. Guests were also treated to Nissan’s new “virtual new car experience” using Microsoft Kinect technology.

Read more…

Nissan Is Gaining Social Media Steam

Automakers have seen the benefits that social media can have on its brands, and as a result, are spending more time (and money) cultivating a presence on these online channels. And this effort is paying off – especially for Nissan. Nissan North America has been interacting with fans of its brands through social media and building a loyal brand following.

Nissan is seeing increased fan interaction on the big three social media venues: Twitter, Facebook and YouTube. Nissan ranked #8 on list of Top 15 Brands on Twitter for 2011 (as indexed by HootSuite), joining other famous brands such as Apple and Nike. Boasting more than 75,000 Twitter followers across various Nissan brand accounts, the automaker is following the lead of automakers that like to tweet. Take Lexus – the luxury brand is rated the most active tweeter when it comes to automakers, conversing with 288,000 followers… not too shabby.

Nissan is also making great strides with its Facebook account. The company has passed the 500,000 likes count, thanks it part to the all-new Pathfinder Concept reveal that can be accessed by liking Nissan’s Facebook page. Nissan still has a way to go before catching up with BMW’s Facebook page, which boasts over 7,000,000 fans.

Considering how popular online videos are, it’s no surprise that Nissan is having increased success onYouTube. The Nissan channel views have jumped to 10,000,000, thanks to frequent and updated video content.

Read more…

Rules and Regulations for the BDC:


I have established rules and regulations for the BDC Center so it s understood what qualifies them as credit to the internet department and the sales floor has a clear understanding where and how this customer came into the showroom. This also gives trust and understanding to each internet representative and the sales team. The rules help with the double dipping on leads.

Example:

Prior 72 hours when a BDC Rep. receives contact through email or a phone it is the BDC representatives leads

After 72 hours if the customer responds in either a mass email or decides to call in the new BDC does all the work, then the new BDC gets the credit

If a phone up comes in and the BDC has had a response from the customer then it’s the original BDC Rep gets the credit.  Need to develop a team environment.

If there is no contact through phone or email for 30 days then the record is open for any BDC

There must be a complete explanation in the notes of the CRM higher gear on what is going on with the customer.  If there is not an accurate notation the manager has the right to decide what BDC rep deserves credit of lead, if any.

If customer comes in and does not make an appointment, but you have had contact with that customer the appointment will be the original BDC rep.

On the daily log, if there is an appointment made be the salesperson it is the salesperson appointment.  NO BDC Rep is to take a salesperson appointment and make it theirs.

Cannot make an appointment when car is already sold or has a deposit taken

Etc…Each representative signs and understands these rules and regulations so there are no questions of what is being paid on or gets credit for.  Each Rep is responsible for handing there leads on the week bonus and commissions.

I use the method of SMART goals (retrieved from: www.projectsmart.co.uk/smart-goals.html) to help me establish my goals and objectives for my BDC team.

Specific:
*Well defined
*Clear to anyone that has a basic knowledge of the project

Measurable
*Know if the goal is obtainable and how far away completion is
*know when it has been achieved

Agreed upon
*Agreement with all the stakeholders what the goals should be

Realistic
*Within the availability of resources, knowledge and time

Time Based
*Enough time to achieve the goal
*Not too much time, which can affect project performance

Advertising:

Get everyone to your website!  All advertising should bring customers directly to the dealer website.  Use as little 3rd party vendors as possible.  Less is more. The more contact and rapport you create with a customer the more loyal and trust worthy we become as a dealer. I work with six franchises and I found that the more you can control where you send your customers for information the closing percentage is much higher since you are guiding them to where you want them to go.

We have learned to use SEO/SEM on our website to our advantage. We have a very strong closing percentage from our SEO leads.  We are now tapping into Adwords marketing which I feel will be a strong push for our internet leads this quarter.

Current lead providers:
Website
Manufacture
Edmunds
Auto trader
ZAG/TrueCar

Since I have started with this organization and implemented my process and procedures for the BDC this organizations numbers from the internet department 2010 to 2011 have shown a 41% increase.  The stores are not highway stores and have now relied on our department for 40-45% of monthly sales, not added units.

  • Year 2010 internet deals  425 
    year 2011 internet deals  601

41% increase

Jenna Dellanno
Business Development Manager
Ray Price Auto Group
raypricecars.com


Read more…

One of my biggest secrets to bringing customers back into our showroom is my Customer Relations person.  They are part of my BDC crew but her title is Customer Relations Representative.  This is our way as a dealership to separate ourselves from the salesmanship mentality, giving a customer to trust that they are speaking with someone who wants to know how their visit went.  Many dealers have their salespeople or sales manager make the next day thank you for visiting call but we have our Customer Relations Representative contact our unsold showroom traffic.  I found in my experiences that when a sales manager and or a salesperson made those  follow up next day calls customers do simple one liners such as “still looking”,  “not in the market”, or “I will call you”.  With my customer relations person they take out the threat of a sales tactic.  The customer truly gets the feeling our dealership wants to know how their visit went and if they had any additional questions.  Many times it opens the flood gates as to how poor our salesman were or how they did not like the sales managers attitude.  More often though, many express on how they did not receive enough for their trade and we were not able to get to the payments they wanted.  With those statements from our customer triggers my Customer relations person to ask appropriate questions such as:  I’m sorry to hear that we were not able to get to where you wanted to be, but if we could re visit your deal with my sales manager and get to your number or close to it will you come back into our dealership?   Majority say yes of course, then I the BDC Manager receives the deal, takes a look at what and how the customer was treated and find out why our sales floor did not sell the customer when they had been in the showroom.  I then negotiate with my sales manager to either push the trade or take off on the sales price that was presented to the customer.  The Customer Relations person is to handle all unsold traffic floor ups and internet ups.

Some Customer examples:

Example 1:

A customer had come into our showroom and was greeted by a salesperson just as they always do.  Customer wanted to be at a certain price on one of our used cars and the sales manager would not agree to sell the car at that point to the customer for the price they wanted.  My customer relations person called to find out how their visit went.  The customer expressed that the dealer was not willing to negotiate and that she wanted to be at a particular price out the door. They had been waiting for a call back from the salesperson which they had still not received.  My customer relations person asked what car they were working on and the number they needed to be at, the customer expressed concern as how are you going to help me if I was already at your dealership and they were not willing to do anything then.  The customer relations person response was my sales manager re visits the deal and that if we can get you to the price on that car you will come back in?  Since a relationship was developed with the customer relations person they found out the problem as to why she need to be at a certain price it was because she was approved through her credit union and wanted to purchase that car with them but we had been able to get her a better interest rate and to put the difference of our price of $265 dollars on her credit card we could make the deal happen. We didn’t do anymore on the price, but since the relationship was built and found out more details as a non salesperson we had been able to convince her of purchasing the vehicle with us and not changing the sales price.

Example2:

A customer had little and not much credit pretty much a ghost is how they described them.  The sales manager did not waste too much time with them and expressed that we were not able to get them financed. Once my customer relations person had followed up and discussed what happen during their visit my representative was able to discover that a family member could provide $10,000 towards a purchase of a car and was able to come back down and bought one of our pre -owned car. 

Example 3:

A customer’s vehicle choice of trim and model had to be located from another dealer.  The particular salesperson they had in the showroom avoided locates at all costs.  Once my customer relations person was able to talk with the customer so much information was collected they were able to find out that we need another salesperson to work this deal so we could find the car for this customer and sell it. 

Below are some word tracks, scripts, and follow up process ideas:

Unsold Showroom Follow up Contact

1 day after visit                        Phone- BDC Thank you for visiting

2 day after visit            Phone/email- BDC if did not contact 1st day after visit attempt another call- then unsold email

3 day after visit            Phone- BDC Thank you for visiting

7 day after visit            Phone- BDC Thank you for visiting- depending on previous contact

21 day after visit          Phone- Are you still interested in make or model? Depending on previous contact-

Schedule appropriate phone/email based off the follow contact above- you are responsible for assigning your phone calls where you see appropriate

1 Day after visit (phone)

BDC Rep:  Hi, may I please speak with (customer name)

Customer:  This is (customer name)

BDC Rep:  Hi, (customer name), this is (BDC Rep name) from the customer relations department at Ray Price (make) the reason for my call is to thank you for visiting our showroom and to make sure your questions have been answered and  to see how your visit had went with (salesperson).

If yes: Great, do you have an idea of when you would be visiting or seeing (salesperson) again?  Is there a message I can relay to him to help assist in your buying process?

Voicemail message:

If no: (This is where you may find out if the customer liked or disliked the sales representative, bring to  appropriate managers attention for this customer service situation to be handled)
              If customer does not want to work with Salesperson, offer alternative solutions such as:
            Working with another salesperson
            Working directly with a sales manager
If resistance: explain that we are looking for any feedback that could help us improve how they were treated in the sales department. It’s important to our dealership that we know how to improve.

More options for a process:

Unsold Traffic:

Guidelines to Succeed in Unsold Showroom traffic

  1. Reconcile daily to make sure the up count matches the number logged. It’s important to make sure all customers had been logged the previous day by the sales representatives or sales managers.

 

  1. BDC handles the call as customer relations call, BDC has a strong sense of confidence and belief towards the customer so customer show that we care here to assist on any situation

 

  1. BDC handles all objection and issues regarding the customers visit in the showroom, and brings the issues good/bad to the BDC/General Manager

Process for Unsold

Next day follow up call is to ask customer how visit went, if a message is left assign again later that day- Do not leave message on 2nd attempt. If cannot reach by phone send unsold email

Day 3: make an attempt for call but do not leave a message, only one message should be left with in a 72 hour period especially if the salesperson has called the customer.

Day 5: Watch the salespersons follow up; make sure that salesperson has not yet already talked with customer

Depending on what happened after day 1-3 will determine follow up for next steps

If customer is not sure of when they are ready to purchase:
Follow up calls every 5 days up to 30 days
After 31 days call once a month
If left message during this process use to your best knowledge of appropriate follow up

If customer bought elsewhere, transfer to BDC manager so it can be kept track of

IF customer has email address:
Next day: Unsold email
3 Day: KIT email
5 Day: (email) Incentive?
7 Day: Unsold Email
12 Day: KIT email BDC
Once a month, KIT email

Jenna Dellanno
Business Development Manager
Ray Price Auto Group
raypricecars.com

Read more…

Hyundai-Race--Times-Square-2.jpg

Hyundai has launched an inventive social marketing program called the “HYUNDAI RACE” at Times Square, one of the busiest city cross streets in the world. By downloading a controller app from the iTunes app store, participants can enjoy the HYUNDAI RACE featuring the all-new Hyundai Veloster on a prominent billboard via Hyundai WiFi.

Steve Shannon, Hyundai Motor America vice president of Marketing said, “Having a large video display in Times Square certainly creates awareness among consumers through creative graphic elements. But Hyundai’s racing game takes engagement to a new level. The game invites the audience to interact with Hyundai in the middle of one of the world’s busiest venues for commerce and tourism. It’s a great example of our innovative marketing at work.”

HYUNDAI RACE  is played by tilting a smart phone like one would steer a car. Players race their Veloster against the clock and their score will get posted on the billboard to be ranked amongst other players. HYUNDAI RACE will be up on the billboard in Times Square until the end of this year, and Hyundai will continue launching a number of other interactive experiences in Times Square thoughout 2012.

Read more…

Hey dealers, is your website equipped to out-perform competition this holiday season?  Your 2011 holiday planning should already be well underway but there a few last-minute tips to get you in the spirit of closing sales from web leads.

Cyber Monday is a marketing term created by companies to persuade people to shop online on the Monday immediately following Black Friday.   Between November 28 and December 31, a record number of consumers researching their next vehicle purchase will be visiting your dealership website.

Forrester Research predicted in its U.S. Online Retail Forecast, 2009 to 2014 report that the web would influence 48% of 2011 in-store sales, predictions which are set to come true.  The average holiday shopper plans to do 36% of their shopping online – whether they’re comparing prices, researching products, or making a purchase (or an appointment to make a purchase). Data from Experian Hitwise indicates that website traffic increases in a troubled economy because buyers research purchases more carefully online to stretch shopping budgets.

Is your digital showroom (dealership website) ready for this spike in traffic?

To capture these leads, streamline your sales process and put your holiday marketing into high gear, try these tips:

1)  Review online sales and customer-support options for better, more personalized service.

Integrating a live-chat option into your online sales strategy will help both you and prospective customers.  Live-chat allows consumers to receive the full automotive shopping experience without having to leave the comforts of home.  With the majority of consumers doing extensive research online prior to visiting a dealership, live-chat gives dealers the opportunity to engage website visitors in a personal sales process, answering questions, providing information and obtaining contact information.  Live chat will save you time and money by transforming your already present website visitors into ready-to-buy leads and appointments.

2)  Review last year’s SEO strategy

Which keywords sent the most and highest converting traffic to your website?  This holiday season, create content and paid search campaigns with a high density of these best performing keywords.  Drop the season’s worst performing keywords and determine which holiday-relevant keywords should be added.  Doing so will maximize the findability of your dealership and inventory online.

3)  Create a Mobile Site

Many holiday shoppers will be researching online and on their smartphones both before and during their trips to your dealership.  Dealers would be wise to integrate the showroom experience with relevant, timely and personalized website and mobile app info.  This can be done using QR codes that link to relevant videos, vehicle specs and inventory comparisons.  Google is forecasting that 15 percent of total online search this holiday season will come from mobile.  Dealers interested in quickly and cost-effectively building a mobile site should try out Google’s new GoMo initiative.

4)  Ask for an email address wherever you can, both online and in-store.

Design an email strategy that includes holiday purchasing incentives and promotions.  ”Email is still the king of Web marketing,” says Allison Howen, Associate Editor of Website Magazine.  ”There are about three times as many email accounts as there are Facebook and Twitters users combined, according to a recent study from Smarter Tools.

5)  Act fast to plug your leaky conversion funnel with split testing.

Use your web analytics to determine the pages on your website critical to conversion that have the poorest engagement.  Use Google’s simple A/B Split testing solution to see how subtle changes to buttons and forms can make a big impact on your conversion rate.  There’s no better time to start testing than now and there’s no more critical time to achieve your highest conversion than the holiday season.

6) Add social sharing to product pages to turn customers into sales channels.

Ask showroom visitors and customers alike to rate your dealership on your Facebook page (as well as other rating sites).  Encourage consumers on the lot to check-in via Social and incentivize the sharing of photos and testimonials of their in-store experience.  Keep your social profiles updated with holiday specials along with pictures and videos of inventory.  Also, resolve customer service issues on Facebook or Twitter to publicly display your customer service chops.

Remember dealers, these strategies are not just for the holidays.  Don’t stop just because it’s December 25.  Take advantage of the last six days of the year by ramping up the promotion of year-end sales on your website and social media.  Don’t forget to record your holiday season metrics too.  They will come in handy next year.

When did you start your holiday season digital marketing strategy?  Do you plan on implementing any of the mentioned strategies?  What can you share with the online community that will help dealers be better prepared for next year?

Read more…

Honda fights TrueCar's prices

Below-invoice online discounts frustrate some dealers and automakers

 

Honda, leery of brand-eroding discounts, has warned its dealers to stop offering prices below invoice on TrueCar.com and other Internet shopping sites.

The discounts jeopardize payments that Honda sends to dealers for local marketing, the automaker told dealers in October. Industrywide, the payments range from $300 to $600 for a $30,000 vehicle, one dealer said.

TrueCar is a leading player in the growing online retail industry that channels Internet leads to dealers. TrueCar CEO Scott Painter last week criticized Honda's position.

"They're trying to say Hondas are worth more than invoice, but if everybody's paying less than invoice, that's not true," Painter said.

The dispute highlights frustration among some dealers and automakers who say third-party Web sites such as TrueCar are eroding their power to set transaction prices.

TrueCar publishes recent transaction prices on its Web site and offers what it calls guaranteed low prices to shoppers. Dealers who sign up with TrueCar agree to pay the company $299 for each new vehicle sold from a TrueCar lead and $399 for each used vehicle sold.

Honda spokesman Chris Martin said that the automaker considers TrueCar an advertising medium. And Honda does not permit dealers to advertise prices below invoice, in part because it erodes Honda's brand equity. Dealers who do so jeopardize per-car payments from the factory under Honda's dealer marketing allowance.

But Painter said Honda is ignoring the realities of the marketplace, in which dealers compete aggressively on price.

In response to Honda's actions, TrueCar last week began warning Honda shoppers with a banner on its Web site that they might not get TrueCar's low price.

Upfront price guarantees are a key part of TrueCar's pitch to shoppers. And the prices listed for vehicles on TrueCar's Web site often are below invoice.

For example, a TrueCar search near Ann Arbor, Mich., for a 2012 Toyota Camry SE with automatic transmission and four-cylinder engine returned three guaranteed prices from local dealers, two of which were for less than the car's $22,075 invoice price. One dealer was offering the car for $21,875, another for $21,025 and a third dealer listed a car at the invoice price.

In TrueCar's terminology, the invoice is several hundred dollars above the cost of the vehicle to the dealer because the price does not include such factory payments to dealers as the holdback allowance.

Painter said Honda sales via TrueCar have declined since October because of Honda's warning.

He said the 278 Honda dealers under contract with TrueCar sold 2,389 vehicles in November. TrueCar's Honda dealers sell an average 8.6 new Hondas per store per month, and leads from the Web site generate 12.2 percent of the total sales volume of TrueCar's Honda dealers, he said.

"They could be doing twice as many sales through our platform than they are right now," if Honda revoked this policy, Painter said.

Painter was careful to add, though, that he was not picking a fight with Honda.

More clout

Painter: The stats don't lie.
 

On Jan. 1, TrueCar's role in auto retailing will grow. That's when TrueCar becomes the exclusive online vehicle shopping partner for Yahoo.com. Traffic to TrueCar's Web site is expected to jump from a couple of million unique visitors per month to 20 million per month as a result of the deal, Painter said.

Now, though, TrueCar leads account for a small slice of U.S. auto sales. TrueCar-participating dealers are expected to sell about 250,000 vehicles from TrueCar leads in 2011 either from shoppers on the TrueCar Web site or through agreements with more than 100 large associations, such as USAA and AAA.

Painter said he wants to almost double the number of dealership franchises that participate with TrueCar to 10,000 next year and facilitate the sale of about 500,000 vehicles.

USAA, a financial services association for military families, has asked Honda to reconsider its TrueCar action on behalf of its 8 million members who did 500,000 searches for Honda and Acura vehicles this year, according to a recent letter from David Bohne, president of USAA federal Savings Bank, to John Mendel, executive vice president of American Honda Motor Co.

Protecting profit

The Toyota Camry SE: In Michigan offers of $1050 below the invoice price.

Mike Warwick, director of digital marketing for the seven-store Kelly Automotive Group in suburban Boston, agrees with Honda's policy toward TrueCar.

"Honda's trying to protect the gross profit in selling a car and trying to protect the salespeople who are the backbone of the industry," Warwick said.

Kelly, with a Honda store and two Nissan stores among its holdings, dropped out of its TrueCar contract this month after just three months as a participating dealer, Warwick said.

In November alone, the group was inundated with 700 leads from TrueCar customers who took a guaranteed vehicle price that Kelly offered, he said. But the stores closed on just 20 of those deals and only three were profitable given the discounts negotiated, Warwick said.

The vast majority of customers went elsewhere, using the deals negotiated on TrueCar to get lower prices for vehicles at other non-TrueCar dealers, he said. Meanwhile, Kelly had to follow up with all 700 customers, Warwick said.

Few Honda dealers, he said, would be willing to risk their dealer marketing allowance for the additional volume that TrueCar can bring.

Industrywide, that type of quarterly allowance is 1 to 2 percent of the sticker price for every vehicle sold, Warwick said. On a $30,000 vehicle, that would be $300 to $600.

Other dealers, though, like TrueCar. Taylor Chevrolet in suburban Detroit is eager for TrueCar's tie-up with Yahoo to begin, said Jeff Kotlarek, Taylor Chevrolet's Internet sales manager. He gets about 15 new-car sales per month from TrueCar.

He said Taylor Chevrolet offers vehicles to TrueCar shoppers at $100 below invoice and still makes money on the vehicles by upselling on warranties, accessories or additional options. The store sells about 175 new vehicles total per month.

In a recent speech, AutoNation CEO Mike Jackson said of TrueCar: "The good deal that they're pitching to the consumer is lower than average. So to the extent that everyone goes with the TrueCar price, it moves the average down.

"It's a death spiral, and the question is whether they are powerful enough to unleash that dynamic in the U.S. marketplace."

AutoNation's COO, Mike Maroone, sits on TrueCar's board of directors, but neither he nor AutoNation has financial ties to TrueCar.

Amy Wilson contributed to this report

Read more…

http://www.dealersynergy.com

Who should be running my internet department or bdc?

 

This is another question I am asked from dealers all over the country — and the dealers who don’t ask me this question really should. While I acknowledge the fact that there are many different types of dealerships, please have an open mind to what you are about to read.

 

First, I am sure that we are all aware that 88 to 98 percent of people go online before they ever step foot into the dealership. We also know that social media is the No. 1 form of communication in this country. The problem that I continue to see, however, is that many dealerships in this country still don’t view the Internet or business development department as a “real” department.

 

Too many times I walk into dealerships and you can immediately feel the tension in the air; it’s an “us vs. them” mentality. There is dissention on the floor, frustration, anger and even sabotage — not to mention disrespect. I often hear the same thing from Internet coordinators, managers, directors and BDC reps; they are neither appreciated nor respected, and are treated as the “stepchild” in the dealership, and that goes from the dealer to the GM to the GSM, all the way down the food chain.

 

And, as we all know, perception is reality. If the dealer feels this way — that the manager of the department isn’t a “real” manager — they aren’t going to have an idea of who the right person is for the job, or what type of a pay plan to put together. They might not give this manager authority in the dealership. They might only make this person a “manager” in title only.

 

They also might put in place the wrong people. They have people who aren’t working out on showroom floor, so they give them a shot in the Internet department. Or, they might hire someone computer savvy because they feel that qualifies them to run an Internet sales department. Dealers also hire young people because they feel they can relate to the prospects better. These are all wrong strategies. The Internet Department or BDC in the dealership should be a major department, on a level with the new, used, finance and fixed ops departments. We are focusing on Internet “sales” department, but it goes deeper than that (Internet sales, service, parts, body shop, finance,

aftermarket, leasing, fleet, special finance, etc.).

 

Here are some facts: The average dealership delivers approximately 100 units new and used a month. An average dealership has approximately 10 salespeople, a finance manager, a sales manager and either a GSM or GM. All of that goes into selling about 100 units. Now, I have dealers who tell me that they want to sell 50, 100 or 150+ units per month from their Internet department, but they don’t want to treat the department as more important than the other departments or profit centers in the dealership. Furthermore, they want to put in place the wrong type of person to manage and run the department. They don’t want to pay the Internet sales director like the other “real” managers in the dealership. They also do not allow them to have any “real” manager authority, but they will put all of the responsibility on that person’s shoulders.

 

So, what exactly is the right profile? Who should run an Internet sales department? First and foremost, you want to make sure you have a person who is an automotive sales manager, or at the very least have someone who is a great sales consultant and closer with the potential to be a great sales manager with the proper training and support. Let’s go deeper: If you are trying to run a department that delivers more than 100 units a month online, you should have at the bare minimum a great sales manager, or even a GSM or GSM-caliber person running that department. Answer this question: Would you ever have a non-salesperson run your entire dealership, or even be a GSM at your dealership?

 

You want a sales manager in that department who can drive the momentum in that room. You want someone who can put a deal together and can even desk a deal if necessary. You also want to have someone who will be respected by the other managers and the showroom sales force — not just by the Internet department.

 

So, how in the world do you expect to deliver that number of units without having the caliber of individual I just outlined? The argument is that dealers need someone to manage the Website, take pictures, create videos, get testimonials, handle I.T., take care of the CRM/ILM, handle online reputation management, SEO, VSEO and all other forms of digital marketing. I agree 100 percent — all of that needs to be taken care of. However, I do not think that the Internet sales director or Internet sales manager should be that person, especially when you are trying to deliver 100+ units per month from the department. You should either hire a person to do those jobs, or outsource those duties. Anything else is not going to be as productive in the long run. They are, at a minimum, two different jobs.

 

Don’t freak out if you are a current Internet sales or BDC director and don’t fit the profile I just mentioned. And don’t freak out if you are a GM or dealer who just hired someone who doesn’t fit the profile outlined in this article. I would say, if they were the “right” individual who you believe in, get that person training on product knowledge, I would have them get certified as a sales consultant from your OEMs and I would get them certified as a sales manager by your OEMs. If you have to invest time, money and training to get the department head at the level of any other department head in your organization, it is what it is. If you don’t, you will suffer.

 

The bottom line is that having the right Internet sales / BDC director is crucial to the success of the dealer’s online initiative. If you have any questions about this article or if you would like some examples or ideas of ways to ensure your department’s success, feel free to e-mail me or call me.

 

Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry.

Read more…

SPONSORS