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http://www.alanvinesautomotive.com 

http://www.dealersynergy.com 

Durran Cage went from a Chrysler OEM Rep to an Internet Sales Manager... He was delivering 25-27 units per month. They brought in Dealer Synergy and we helped them get to:

  • 95 Units Per Month!
  • 2.3 Million Dollars Gross Profit from Their Annual ONLINE SALES! 
  • Durran Cage, Internet Sales Director gets promoted to GSM of the Dealership!! 

This is such an incredible success story and it couldn't have happened to a better person, a better department or a better dealership.

So, from everyone here at AIS... CONGRATULATIONS!!!

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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

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Schedule your priorities, Not prioritize your schedule

“Things which matter most should never be at the mercy of things which matter least.”

—     Johann Wolfgang von Goethe

 http://www.dealersynergy.com 

Have you ever looked at the clock and seen it was the end of your shift and you thought to yourself, “Wow — where did the day go?” Or worse, “Uh oh, I got absolutely nothing done today.” Well, you are not alone; most people in our industry feel the exact same way. Automotive professionals sometimes describe working at a dealership as “chaotic,” “a constant fire drill,” “not organized,” “overwhelming,” “stressful,” etc.

 

A lot of dealerships feel like they are grinding to sell cars, but wonder why they constantly fail to hit their objectives. They are confused why they are not selling as many units as they need to, even though they have their team working bell-to-bell most of the month. There is a logical reason of course: They have no understanding or training when it comes to proper time management. Remember, there are only 86,400 seconds in a day. When they are gone, they are gone. For the most part, most dealerships just “react” versus being “proactive.”

 

You can get up and have a positive attitude and want to work really hard, but if you have no plan, you can’t expect to be tremendously successful. Don’t get me wrong — I am sure you can have some success. It will only be short lived, however, or not at the full magnitude that you are capable.

 

Here is an example: If I said to everyone reading this AutoSuccess article that I am giving away $1,000,000 to anyone who can drive from Houston, Texas to Philadelphia, would you be in? Of course you would be. But here is the catch: You can only use this map that I give you. Are you still in? Of course you are. But there is more to the catch. The map is of the city of San Francisco. Uh, oh. That changes everything, because the rules of the $1,000,000 giveaway is that you have to use this map and only this map.

 

So how in the world are you going to get this easy million dollars? Oh, I know: You can have a great attitude. You can think positively, and you can be happy about the opportunity. Is that going to help you accomplish that goal? No. A positive attitude is great, but it is not enough in this example, and it is not enough in the real world at your dealerships.

 

OK, how about working hard? If you work really hard at looking at this map of San Francisco, maybe you can unlock some secret rout to Philadelphia from Houston? No, you can’t. So, working hard is important, but it is not the sole answer. You need to have a map; you need an internal global positioning system (GPS). You need to begin with the end in mind. Car dealerships are awesome, but they are hectic; there is a lot going on. Plus, it is a month-to-month business. I get it. You need, though, to take control of what you have control of — yourself.

 

We all have multiple roles in our life. We are not just automotive professionals. Some additional roles that you might fall into include:

 

• Parent • Son/daughter • Brother/sister • Manager

• Leader • Owner • Trainer • Motivator

• Analyst • Friend • Volunteer • Veteran

• Paramedic • Athlete • Pet owner • Community activist

• Baby Sitter (which can have multiple meanings…)

 

So, now take into account how busy your day is, how hectic a dealership is, how intense our industry is and now add all of the roles you play in life. How are you juggling everything? Are you even trying to juggle or are you neglecting important things?

 

There is a better way.

 

Internationally respected leadership authority Dr. Stephen Covey says that the most effective planning is weekly planning — not monthly or daily. It is truly best to pick a time once a week (my wife and I prefer Friday, after work) and map out the following week. The key is not to overload or “pack” as much as possible into a short amount of time. Rather, you want to identify your priorities — a.k.a. “must do’s” — and schedule them first. This should include your different roles. You want to make sure that you put first things first. Here are some examples:

 

• Showroom appointments

• Training sessions (can be from the dealership or on your own)

• Phone call and follow-up time

• Breaks, lunch, etc. (it is important to refresh yourself and “sharpen the saw”)

• Any days off

• Clients anniversaries, birthdays or other important dates

• Personal friends’/relatives’ anniversaries, birthdays or other important dates

• Special time with family (and or friends)

• Health appointments (doctors etc…)

• Relaxation time

 

If you have any questions about this article or would like some advice on how to create a powerful weekly planning road map, please feel free to call me or e-mail me.

 

Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry. He can be contacted at 267-319-6776, or by e-mail at sbradley@autosuccessonline.com.

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http://www.dealersynergy.com

AutoSuccess September 2011

 

Great Question(s)!

 

I received a lot of great responses from my article a couple of months ago on getting Internet sales departments to effectively make phone calls. I had some people contact me with skepticism, but after we hung up from our call, they were complete believers and understood exactly what I was trying to articulate in my article. I also had people excited because finally someone broke it down with details on how things should work and why. But, I also had some communication with people that were a little confused about the numbers and the strategy. So, this article is going to break things down a little deeper.

Let me recap the highlights from that article:

  • Your Internet Sales Department is primarily a phone sales department.
  • You want to have a minimum of 120 phone calls per day per rep.
  • Do not let your team settle for mediocrity.
  • Implement the “power hour” exercise ASAP.
  • The average connection ratio (From phone call attempts to connections) is only 11 to 14 percent.
  • The key to success is understanding the logic: The more people you attempt to call, the more people you will connect with on the phone; the more connections, the more appointments; the more appointments, the more confirmations; the more confirmations, the more shows; the more show, the more sales.

Here, however, is the most powerful advice I can give:

Every dealership should really think about having professional appointment setters in their dealership, and I mean every dealership. We have clients all over this country and abroad, and it doesn’t matter if they are a small dealership, a large dealership, a dealer group, highline, import, domestic or even an independent dealer. Our most successful clients have professional appointment setters and some even have a full-blown team of appointment setters.

One recent example is Gary Mathews of Jackson in Jackson, Tennessee. This is a Chrysler, Dodge, Jeep and Hyundai dealership that went from 35 units per month to 86 units per month and were on track for 102 for August.  In a down economy, they have broken dealership record after record. And they are proud to tell you why: their dedication to their Internet business. One of the main keys to their success is that they have a team of appointment setters, and all they do from open to close in shifts is pound the phones and e-mail (the CRM is programmed with an automated e-mail action plan).  Think about it: How much more successful would your dealership be if you had a team of trained appointment setters, and all they did at your dealership was make phone calls all day from open to close in shifts?

Remember that you only have a 11 to 14 percent connection ratio on the phones. So, if you only make 50 calls, you will only have five to seven connections. Plus, if you leave this up to your sales team to do, there will be no consistency. How could there be? They have to do follow-ups, product presentations and deliveries; they sometimes chase stips; they have days off, shifts off, personal time, and so on.

You need 100 percent consistency on those phones, from open to close.

I will give you another example. We have a Honda Dealership client in New Jersey that went from 60 units online to more than 200. How did they do this? Well, they had a team of 12 professionally trained appointment setters who made 120 calls per day five days per week for a total of more than 30,000 phone calls in one month. That’s what it takes to sell 200 units online. More than 15,000 phone calls to sell 100 units online. More than 7,500 phone calls to sell 50 units online.

Math is math.

The push back I get from dealers is that they don’t trust “BDC Reps,” “appointment setters,” etc. The reason why most are not successful is that they have the wrong people in those positions and most don’t have the proper training.

At minimum, an automotive Internet sales / phone sales professional — A.K.A. “Phone Ninja” — should be trained in areas including:

  • Inbound / outbound phone process
  • How to qualify a prospect and Identify wants, wishes and expectations.
  • Objections / rebuttals
  • The power of leaving a great voice mail
  • Outbound / inbound e-mail protocol
  • How to execute the dealership’s value package proposition
  • Science of communication — tone, inflection, etc.
  • Automotive Internet sales knowledge
  • Product knowledge

These people are truly phone sales professionals. The only difference between them and your showwroom sales professional is that they do not sell the vehicle; they sell the appointment. They should, however, be no less intelligent, skilled and trained.

If you have any questions about this article please feel free to call or e-mail me.

Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry. He can be contacted at 866.648.7400
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http://www.dealersynergy.com http://www.internetsales20group.com "The Next Online Evolution: Video Search" Was FIRST Published in Digital Dealer Magazine in 2007 Did you ever wish you had a hot tip, or like the television show, Early Edition, get tomorrow’s newspaper today and then go out and buy a winning lottery ticket? Even better, what if you could call yourself back in 1985 and tell yourself to buy all the Apple computer stock you could handle. Wouldn’t that be awesome? Sorry, but I can’t help you with those items, but I can share with you that I strongly believe video search is a sleeping giant of an opportunity that is growing and poised to explode at quantum speeds and virtually no one in the auto industry is taking advantage of the opportunity. Everyone knows about search engines and they are used all the time, but I was surprised at the sheer magnitude of their influence. • 88 percent of adults conduct online research prior to completing their purchase. • 67 percent of adults in the United States use search engines as a research tool. • 54 percent of search engine users find web sites to purchase their desired product. • 62 percent of search engine users click a result within the first page. The latest multi-media/video trend is video Internet marketing or Internet 2.0. Video search is the foundation for the next Internet evolution. The new web is evolving to become a very different animal than it is today. It’s truly becoming a tool for bringing together the small contributions of millions of people driven by their individual preferences and desires. Just a few months ago, eMarketer, an online marketing news channel, said more people than ever are watching more online video more frequently. eMarketer estimates that over one-third of the US population will view video on the Internet on average during 2006. By 2010, the US Internet video audience will have grown 45.8 percent to 157 million, up from 107.7 million this year. When Google spent $1.65 billion for 19-month-old online video phenomenon You Tube, it was portrayed as a sign of the triumph of online video. They didn’t buy it just because it was a cool site; they bought it for the audience it reaches. Research shows the current video-viewing audience is predominantly male and most are heading toward middle age rather than their first job. This means that site visitors are in their prime spending age and advertisers need to know they can reach this audience in this new medium. This model is evolving as we speak and will become the way advertisers reach buyers in the future. Companies that succeed in this new medium within the channel will be those that are in the right position to leverage the video viewing community to get their messages across. Just like a traditional web site, video enhanced sites have existing content and keywords married to special events videos, and the various search engines that consumers use each day pick these up. Cyrus Krohn of MSN Video says, “Television has got a lot on the Internet as far as history goes, but the evolution of products I’m envisioning will service both parties,” he said. “I don't know how long it’s going to take, but you’re really going to have a hard time distinguishing between the monitor and the box.” Growth in this area will continue to explode and opportunities for automotive advertising, marketing and branding will be abundant on these video channels. Most people I talk to under 50 are well aware of YouTube.com, MySpace.com, Google Videos and others, and the e-mail I used to get with jokes are now replaced by e-mails with links to online videos. Here are a few more eye opening stats. • For all the clips playing, online video advertising currently comprises just 2.6 percent ($410 million) of total Internet advertising spending ($16.4 billion) • The average video seeker is far more likely to be heading toward middle age rather than heading for his first job. This means that users are in their prime spending age and advertisers need to know how to reach out to them in this new medium. • Time magazine unveiled its “Person of the Year” for 2006 on December 16, 2006, as – you, the creators and consumers of user-generated Internet content like video-file sharing sites YouTube, and the social network site MySpace.com. Over the next few years, companies will expand their presence utilizing online videos and keywords they could never have even imagined using today. Television commercials are expensive, but you can put “commercials” and other branding videos online for free. Do you utilize videos on your web site? You can easily tweak them and post them on YouTube and other sites now for free. Film your sales manager giving a brief overview of a new vehicle model and post it on the web. How about posting a short video of your service manager talking about the importance of tire rotation on your new SUV? Can you see a brief clip or series from your business manager explaining the value of an extended service contract? I can also see him or her talking about loyalty programs, GAP coverage and other important aftermarket products. Currently you probably have just a bulletin board in the showroom with testimonial letters from happy customers. Why not film customer testimonials and make your customers “stars on the web?” Are you starting to see the possibilities? You don’t always need a professional film crew to do the videos, but it will help. Try it out with your home video camera, experiment a bit and post a few to see the results and ask for feedback from friends, associates and family. Maybe you have a college nearby with a film program. Invite some of the students to get some experience by videotaping your team for online videos. Some may jump at the chance. You will quickly learn how to make it happen. Let that Steven Spielberg part of you come out, and start working on your next big blockbuster.
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http://www.dealersynergy.com http://www.internetsales20group.com This article was first published in Digital Dealer Magazine September 2006! The thrill of gambling is exhilarating. Am I going to win? Am I going to hit it big? Let me put it all on the line and see what happens. Since living close to Atlantic City, NJ, gambling has always intrigued me, but I must confess I am not a gambler at all. I am a realist; I am a numbers person. I don’t feel comfortable just hoping on the long shot. So, where am I going with this? Well, this is exactly what is going on in our industry today – gambling. Dealers are advertising on a long shot. There is no science, no reason – just hope that our initiative sells some more cars. It’s all in the statistics, but is anybody listening? You head down the road of spending tons of money to bring new customers into your dealership or to your web site, and then you do not do a value proposition for the dealership. From there you sell the vehicle, have no plan to bring that customer into service and you do very little to create a relationship that will lead to valuable service business and the inside track to the customer’s next vehicle purchase. Let’s talk about some numbers. NADA tells us that the average store spends over $500 in advertising for each new vehicle sold. That number is actually incorrect because we know a large percentage of sales are repeats, referrals or came to us because of our location/brand. This means you probably spend closer to $800 to $1,000 for each vehicle you sell from your advertising. You only close at 22 percent on your ups; 40 percent of those never create a cash RO and a full two-thirds of these customers are gone by the time they truly become valuable – which is when the vehicles reach 30,000 miles. Oh yeah – by keeping them loyal you also pick up amazingly profitable service business. The customer that does remain loyal is seven times more likely to repurchase and on average will have a gross of an additional $900. Let me break it down further. Smart Tech Enterprise research states that a prior customer closes at 60 percent versus 22 percent for a fresh up, with a gross profit increase of over $900. But most dealers don’t allocate any budget for owner retention efforts and the dealerships that do only allocate minimally. Let’s say you should at least spend 10 percent of your ad budget on loyalty for your customers. Create a custom value proposition, leverage it during the sales process and apply it to customers to keep them happy in service and then allow your customers to earn toward their next vehicle purchase. Airlines, hotels, rental cars, grocery stores and thousands of retail establishments already know what you refuse to learn. Any one transaction has little value compared to the loyalty of a customer. In working with CRM and database marketing for years, it is also amazing that you ignore your database. You do garage predictors to try and find people who may or may not have the money, inclination to your brand or even be in the market for a vehicle, yet you ignore a gold mine in your own database. Again, it goes back to a dealer’s gambling mentality. You choose to take a shot in the dark versus science and math. NADA again tells us 2 percent of the people in your database purchase a vehicle every month. A typical store has an active database of 6,000 to 10,000 customers. Think about the potential and then get sick over the fact that you have not created loyalty with these people. One hundred twenty to 200 people from these stores purchase every month and you have done little to say, “Buy from me,” unless they get that generic mailer via the garage predictor. Claim your customers as our own. Glue those who have been in within the last six months with a rewards program. Aggressively go after the inactives for service and let everybody know you want to sell them their next vehicle. The good news is you can do all of this for the 10 percent of the ad budget discussed earlier. I am always amazed when I talk to dealers who will not commit 10 percent of their ad budget to what makes the most sense. It goes back to gambling. I am not a gambler, however, if you are, at least be a smart gambler, and play the odds. What makes more sense? Putting all of your money on a 22 percent shot or at least some of your money on a 60 percent shot with the opportunity to make $900 higher gross profit per unit? I was going to end this article at this point, but I was thinking about a conversation I had recently with another industry expert. We were discussing that a lot of articles are written that have good surface content. They explain the issues, but do not go too deeply into the “how” to solve or the “how” to actually take action. In my opinion, that’s for two basic reasons: They don’t want to give away the farm for free. After all, we are all here for business. Or, they don’t want it to look like they are trying to plug their products and/or services. I hope you would feel that I have covered some useful content and information, but now I am going to take it to the next level. I want to give you some strong takeaways – things that you can put into effect immediately at your dealership and see some great results. Let’s start with an example of a customer loyalty program: • Free lifetime state safety inspections • Free loaner vehicle with a 30,000 mile service • Free body shop estimates • Free shuttle service • Free car wash • 10-15 percent discounts on installed accessories • Loyalty pricing • Referral program • 10 percent toward your next vehicle purchase • 5 percent toward major service • 5 percent toward body shop • “Frequent Flyer Miles” program The idea is to reward your customers for their actions. Anything that they do at your dealership gets them rewarded. For example, there are companies out there that have loyalty cards with smart chips in them that allow the customers to earn “points,” like airlines have frequent flyer miles. So, anytime the customer goes into your dealership to buy parts, have service work done or to purchase a vehicle, they will earn points on their card for future activities. The more they do in your dealership the more they earn for future visits. Okay, now you have an idea of what a rewards program looks like. How do you utilize this information at your dealership(s) immediately? One idea is your web site. Remember, over 85 percent of people who buy cars go online first to do research before they ever step foot into your dealership. There should be a section on your web site that is clearly defined “Customer Rewards” or a button that says something to the effect of “Click here for Customer Rewards.” The idea, again, is to call attention to this section. Remember most dealers do not have this on their site. This is an opportunity to differentiate your value package proposition for your dealership from any other dealership around you. Remember, the average prospect researches three to five web sites before choosing yours. If your competition is giving cars away at invoice or there are other price factors, why should they pick you? If you are a little farther away than your competition, why take that extra drive to your dealership? Because you have something they don’t… a customer rewards program! One last idea – what about your lost opportunities? I mean all of those leads you don’t close? Let’s say you buy or generate 400 leads in a month. You sell 40 units; that’s 360 leads left over. Some are bogus; some don’t respond; some bought elsewhere or just changed their mind. You can contact all of your dead leads, let’s say your “bought elsewheres” for example, and let them know you wish them the best with their new vehicle and even though you didn’t earn their business they can call you whenever they’d like to ask you any question they might think of… and oh, by the way… as a token of appreciation for them letting you have the “opportunity” to earn their business you want to give them a gift… an “owner’s reward” card. Explain all that the card does and contains. You will be surprised how many people will use this card. The benefit here is that you are going to turn a lost opportunity, somebody who bought elsewhere, into a service customer, and remember, a service customer is seven times as likely to purchase a vehicle from where they have their service done. Keeping all this in mind, my aim is to help you sell more cars more profitably and more often! Sean V. Bradley
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For Real Results, Don’t Forget Your CRM!



There is endless chatter about social media in the dealer marketing world these days and why wouldn’t there be? Over 500 million people are using one of the “Big 4”—Facebook, Twitter, MySpace, and Linked-In. In addition, of the two-thirds of Americans who now visit social networking sites, 43 percent visit them more than once a day. Significantly for the retail industry, and automotive dealers in particular, 68 percent have become a fan or friend of a product, service, company, or group on a social networking site. Without a doubt, dealers need to harness the power of social media. Most of the social media chatter and discussion, however, currently revolves around dealership Facebook pages and Twitter accounts, while almost none of it focuses on one of the most powerful tools in a dealership’s arsenal…the CRM/ILM system.



Yes, tapping social networking can be a little overwhelming and tricky, but if you utilize your CRM and ILM systems, along with some key best practices, you can eliminate much of the confusion and create a straightforward strategy. For example, knowing whether or not a customer belongs to a social site is helpful (and you can do that directly through your CRM/ILM system, with the right plug-ins); but seeing how many friends or contacts that customer has on each site gives you a powerful advantage. Based on the user privacy settings, you can actually go directly from the CRM tool to a customer’s social media page to gain even more information about that customer.



Imagine the selling opportunity with a customer that has over 200 contacts on Facebook alone. If this “influencer” has a good experience at your dealership, then recommends your dealership to his/her friends via a post on the wall, and those 200 contacts have their own friends, the customer’s experience becomes viral across all of those contacts. Your marketing efforts can grow exponentially by targeting just one prospect and then spreading the positive message by word of mouth or, in this case, “text of mouth”! And this is just one opportunity you can leverage combining the right CRM system and plug-ins, as well as the following simple best practices:



1. Enhance your CRM data to include social media information for each of your customers and prospects.



2. Use the enhanced data to create outbound CRM/ILM-based campaigns that target social network influencers in your database.



3. Target your social media campaigns. Don’t just email the same content asking everyone to be your friend, make the request relevant to the recipient.



4. Train your store to review the social media data (recent posts, friends, etc.), in addition to the customer’s history of interactions with your store, before they interact with the customer.



5. Measure, measure, measure!



Bottom line: just as you should never forget your CRM and ILM systems when planning your email and direct mail campaigns, be sure to include these critical systems as you map out your social media plan…it is a lot easier than you think, just try it!



Mike Martinez is chief marketing officer at izmocars.com. For more information about izmocars and iCRM social media plug-ins, go to www.izmocars.com/solutions/icrm.html.
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BDC vs. Sales Floor
Does your sales force communicate effectively with your internet/BDC department? If you are like a lot of dealers the chances are that the answer is “NO”. I have worked in a few dealerships over the years where I have experienced the same problems as an Internet director. Nowadays, I have been working with dealerships nationally on a training and consulting level where I still see the same problems arise.

So how do we fix this common problem?

I learned from my previous dealer about the power of having mandatory weekly meetings. I am talking about sales meetings with sales managers, sales consultants, internet/bdc coordinators, and the internet director. The meeting needs to be mandatory and held once a week. These sales meetings need to be a half hour to an hour long with the purpose of uniting the two departments together.
The meeting must cover any news or updates in the dealership regarding advertisements and store policies. If there is an advertisement running for that weekend, there needs to be a customized script or outline created for the BDC so that the calls are answered properly. This advertisement needs to be reviewed in this meeting so that everyone is on the same page when speaking to customers.

The biggest goal of this meeting is to allow both departments to see how they operate. The way to do this is to role play around the room the phone scripts using coordinators and sales staff. Also, it is important to role play the sales process of how the customer will be handled once they arrive to the showroom. It is important that sales consultants and sales managers know what is being said on the phones and how it is being said. Why? It makes a smooth transition from speaking on the phone with one person and working in the showroom with another. When the customer comes in and works with a sales consultant, there will never be a “he said, she said” situation because the sales representative will know what is being said on the phone and will have the knowledge to check the notes of the conversation in the CRM.

What will these meetings do to your people?

These meetings boost strong morale in the dealership. The meeting needs to be positive and motivational at the same time. While these meetings are serious, people need to laugh and enjoy being in that conference room for almost an hour. It is a great idea to have bagels and coffee in the room for breakfast. One of the most powerful things I did at the dealership was taking pictures and videos at these meetings for memories. We need to understand that people love memories and they appreciate being remembered. There is nothing more rewarding then to look at them one year later and remember how effective these meetings were.

As the communication improves in the dealership by utilizing this practice, both departments will work together. The sales staff in the dealership will start to see value in the internet department and will only show respect as they will realize that the BDC is there to help them make money. When you motivate and lead your people by building value in the right processes, you will only see positive change.
Let’s face it, when I left my last dealership I had sales consultants that were sad about me leaving because of how I ran my department. This is the effect that needs to happen in your dealership right now. If you are not having the success that you desire in your sales and BDC department performance, it is a great idea to consider how the departments communicate with one another.


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Despite the ups and downs of the last year, it appears the auto business is slowly moving upward on the activity meter. If this trend holds, 2011 should be a pretty good year for the auto business, but you need to start you planning now. Since we’re in October, it’s time to make plans to attend the NADA Convention in San Francisco February 5-7, 2011. To get the best hotel rooms and flights, you might consider booking now to save yourself the scramble later. This promises to be an innovative year on the exhibition floor. As in past years, there will probably be one, stronger theme throughout the hall. My prediction is Social Marketing. I think we can look forward to half the booth holders adding some form of social marketing to their offerings. This prediction is based on the trends we are seeing in the larger product businesses like Proctor & Gamble. Big business has discovered that you can reach a half million eyeballs using Facebook and engage the customer with the product for a lot less money than it costs to reach that same number of people using traditional media. Watch for auto dealers to ramp up their engagement with social media sources like Facebook, Twitter, and Foursquare. To the skeptics that say, “Consumers don’t want to communicate with an auto dealership on Facebook,” you are wrong. What consumers don’t want is to be hit with sales messages on Facebook. The secret to Facebook and all social marketing is the concept of “giving.” This is hard concept for us in the car business to grasp. The value of Facebook to an auto dealer is to make friends with people who will eventually need to buy a car. You don’t make friends by saying, “Hey we have cars on sale!” You make friends by saying, “Acme Ford is participating in the March for Breast Cancer. We will donate additional cash to the March for every person that signs up to be on our team.” Or, another “giving” form of social marketing would be to say, “If you’re a Mustang fan, check out the Mustang Club that Acme Ford has formed. Sign up today and receive our free book, The Ford Mustang: American Classic, just for joining the club.” Do you see the difference between trying to push people with sales messages instead of pulling them with “giving” messages? A good way to learn more about using social marketing for your dealership is to go on Facebook and see how other businesses are engaging customers. The ones with the most friends are probably doing it correctly. Once you have earned the trust of a lot of “friends” on Facebook, you can communicate with a ton of potential customers without spending anything in the way of media dollars. Zero is a really nice price for marketing. If you are not savvy at Facebook, find someone who is to handle your Facebook site. Just make sure they understand “giving” vs. pushing.
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