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AutoSuccess addresses the specific, researched needs of new car and light truck dealerships by providing entrepreneurial, cutting-edge, solution-based editorials to increase dealership profits and reduce expenses

AutoSuccess, magazine, sales, new, used, selling, salespeople, vehicle, dealer, dealership, leadership, marketing

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AutoSuccess may10

  1. 1. Check out the latest MAY podcast featuring Jim Radogna of2010 Dealer Compliance Consultants Inc. autosuccesspodcast.com
  2. 2. Double Customized mailer, list, 800#, postage, PURL campaign tracking, $25,000 cash prize giveaway Triple Customized mailer, list, 800#, postage, Customized mailer, list, 800#, postage, PURL campaign tracking, Call Center, PURL campaign tracking, Call Center, $25,000 cash prize giveaway $25,000 cash prize giveaway Single Customized mailer list, 800#, postage, $25,000 cash prize giveaway Home Run Customized mailer, list, 800#, postage, PURL campaign tracking, Call Center, Sale in a Box, $25,000 cash prize giveawayIf you would like information emailed to you, please visit the link belowhttp://www.IdealDirectMail.com
  3. 3. AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccessonline.com. Subscription rate is $69 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other magazine to which this magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220.2300 Hurstbourne Village Dr, Suite 1200 Louisville K rstbourne Ken Kentucky 40299 | 877.818.6620 / 502.588.3170 | AutoSuccessOnline.com / AutoSuccessPodcast.com | info@autosuccessonline.com Susan Givens, Publisher vens, Thomas Williams, VP & Creative Director V Dave Davis, Editor & Creative Strategist Brian Ankney, Account Manager Susie Horne, Account Manager John Warner, Sales-Improvement Strategist @autosuccessonline.com sgivens1@autosuccessonline.com design@autosucces design@autosuccessonline.com ddavis@autosuccessonline.com super6@autosuccessonline.com shorne@autosuccessonline.com jwarner@autosuccessonline.comfeature solution leadership solution marketing solution sales & training solution GET PREPARED FOR THE RECOVERING ECONOMY FOSTERING A CULTURE OF ENTREPRENEURSHIP COMPLIANCE AS REPUTATION MANAGEMENT THE DEATH OF TRADITIONAL SALESPEOPLE, HOW TO MAKE CAR BUYERS COME TO YOU DEALERS MAINTAIN PROFITABILITY DURING DEALERS USE AUTOMOTIVE AD NETWORK TRANSPORTATION PROVIDERS CAN HELP USING SEQUENTIAL QUESTIONING TO HOW TO MEASURE THE REAL UPLIFT WHAT YOU NEED FOR A PROFITABLE SUMMERTIME SAVINGS CAN BE A TO DOMINATE SEARCH ENGINES FACEBOOK FOR AUTO DEALERS YOUR ADVERTISING CREATES HELP CLOSE MORE SALES PERIODS OF LOW SUPPLY REALITY FOR YOUR TEEN START TRACKING CALLS RESOLUTIONS, PART 4 DETAIL DEPARTMENT An Interview with PatGunning PART 2 32 24 18 16 08 25 17 10 28 26 30 22 20 14 MarkTewart KatherineDonovan StephenR.Covey ToddSmith JohnFreund KirkManzo StephenCravens JimmyVee & TravisMiller JeffGrandstaff JimRadogna BudAbraham ScottJoseph JoeAbraham SusanGivens pg 4 pg 6 pg 0 pg2 pg2 pg1 May 2010 jeff grandstaff kirk manzo scott joseph
  4. 4. leadershipsolution StephenR.Covey RESOLUTIONS 4 part To overcome the and I’ve become aware of how everyone is subordinates, but he discovers that these restraining forces of very anxious about the entertainment value of groups demand different things of him. He pride and pretension, I resolve to work on the program. Recently, I was in San Francisco, feels that if he is true to one, he may offend character and competence. and I thought I would make my interview the other. So he begins to play games and more controversial by getting into the political put on appearances to get along or to get Socrates said that “the greatest way to live arena. But my comments threw the whole by, to please or appease. In the long run, he with honor in this world is to be what we conversation off on a tangent. All the call- discovers that by trying to become “all things pretend to be.” ins commented on political points. I lost the to all people,” he eventually becomes nothing To be, in reality, what we want others to power to present my own theme and represent to everyone. He is found out for who and think we are. Much of the world is image- my own material. what he is. He then loses self-respect and the conscious, and the social mirror is powerful respect of others. Whenever we indulge appetites and in creating our sense of who we are. The passions, we are rather easily seduced by pressure to appear powerful, successful Effective people lead their lives and manage pride and pretension. We then start making their relationships around principles; and fashionable causes some people to appearances, playing roles and mastering become manipulative. When you are living ineffective people attempt to manage their manipulative techniques. If our definition time around priorities and their tasks around in harmony with your core values and or concept of ourselves comes from what principles, you can be straight-forward, goals. Think effectiveness with people; others think of us from the social mirror, we efficiency with things. honest and up-front. And nothing is more will gear our lives to their wants and their disturbing to a person who is full of trickery expectations — and the more we live to meet and duplicity than straight-forward honesty; the expectations of others, the more weak, Stephen R. Covey, Ph.D., is co-founder of that’s the one thing they can’t deal with. shallow and insecure we become. FranklinCovey, and is the author of The 7 Habits of Highly Effective People. He can I’ve been on an extended media tour with my A junior executive, for example, may desire be contacted at 866.892.6363, or by e-mail book, The 7 Habits of Highly Effective People, to please his superiors, colleagues and at scovey@autosuccessonline.com. Time to rethink auto transportation Call 1-866-207-3360 Nationwide or register online Door-to-Door for our lowest rates Online Easy ShipCarsNow.com BUILDING AMERICA®08 www.autosuccessonline.com
  5. 5. salestrainingsolution KirkManzo USING SEQUENTIAL QUESTIONING TO HELP CLOSE MORE SALES Helping customers this first question is rather predictable. The overcome the natural answer should be “Yes!” Your follow-up procrastination associated with purchasing question would then be: high-ticket items is the key to your success. You must develop a method to seamlessly “Great. Then, is this the vehicle you would transition from the demo drive to asking for like to take home with you today?” a commitment. The challenge is to create an approach that appears conversational, but is At this point the reaction from most people in fact very strategic in structure. will not be, “Sure, I’d love to take it home.” Realizing that we are all programmed to Sequential questioning techniques represent politely decline the first offer to purchase a very effective way to direct your customer anything, don’t press the panic button. to a desired outcome while maintaining a Simply stick to the sequence and ask the next conversational tone. This technique was question. initially applied by one sales organization almost 50 years ago and was so successful at “I understand we still need to work out closing sales that the three-day cancelation some details, but my question is do you clause was established for door-to-door (think/feel) this is the right car for you?” purchases. Their response should indicate to you dealership that two different salespeople The idea is to consistently ask a series of whether you are on the right vehicle or if were trying to sell the same unit to two questions designed to move the conversation you will need to ask additional selection different customers at the same time? Last forward to a desired destination: the close. questions and go back to step 3 in the sales month? Last week? Yesterday? The idea here In order to maximize the application of process. Customers who respond positively is to keep the conversation moving forward this approach you must first complete the to the first question will often state that they towards the write up. standard steps to a sale prior to earning the like the car. Proceed to the next step in the right to ask for their business. commitment process. “In order to help the other salespeople know who is interested in this vehicle, why Let’s take a quick minute to review the initial “Great. Then do me a favor, when you pull don’t you put your last name on the back five steps: back into the dealership would you park of my card and place it on the dashboard 1. Meet and Greet the vehicle into the Sold Lane.” of the car. This will help cut down on any 2. Establish Common Ground /Build Rapport confusion regarding who is interested in 3. Conduct an Interview (Needs Assessment) At this point most customers will exhibit purchasing this vehicle.” 4. Present the Vehicle (Walk Around) a significant amount of resistance to your 5. Take a Demo Drive WITH the customer. request for them to park in the sold lane. Remember that a customer’s willingness to Push back is predictable. Regardless of remove the vehicle from the inventory and Just a reminder: While on the demo drive, how strong your customer reacts, stay calm. tag the unit with their last name does not allow the customer to enjoy the movie. This Explain the importance of separating the represent the end of your work to close this means, don’t talk during the movie (demo vehicle from the rest of the inventory by sale. But if you have the courage to ask 100 drive); it does not enhance the experience. stating the following: percent of your customers at the end of each demo drive to purchase the car, do you think Once you have almost completed the demo “You may have noticed I’m not the you might close a few more sales? drive (should be at least 10 to 15 minutes) only salesperson who works here at the and you are approximately one mile from dealership. I wouldn’t want another Good luck and good selling. returning to the dealership, you must ask a salesperson to take out YOUR CAR on question to take your customer’s temperature: a test drive with one of their customers, Kirk Manzo is the president of The while you and I are inside working out the Manzo Group. He can be contacted at “Did you like the way the vehicle drove?” details for this car. Do you? 800.858.6903, or by e mail at e-mail Well, that’s what I thought.” kmanzo@autosuccessonline.com. If you conducted a proper interview and walk-around presentation, the answer to By the way, when was the last time at your10 www.autosuccessonline.com
  6. 6. Faith in the future and preparation for the future are a powerful TV, radio and direct mail can be highly effective in today’s market, if combination, and it’s a combination that GA Marketing has bonded used properly. into its business DNA. As an organization that prides itself on going against the grain of conventional wisdom, the company is preparing for Every consumer is different and responds to different advertising in a massive expansion, as the industry recovers, to position itself as the different ways. Compare the grosses of customers who buy off the premiere automotive staffed event, advertising, training and consulting Internet against those who buy off of other forms of advertising. A company. Susan Givens, publisher of AutoSuccess, recently sat down lot of the dealers I talk to tell me that the Internet customer is highly with the company’s president, Pat Gunning, to discuss this strategy, and educated and price driven, which produces only half the gross. In how the company plans on helping dealerships now and in the future. response, we created Inventory Blaster, which takes average online ads and makes them promotions, without using the price of the car. AutoSuccess: Pat, what is driving this need for you to hire? Combine this Internet tool with the right direct marketing materials, Pat Gunning: In times when most companies are trying to cut costs and you’ll have a well-diverse plan that’s hard to beat. and personnel, we are doing something very different. After years of competitors trying to duplicate our business models, many have AS: Sounds like your business strategy relies heavily recognized there is a lot more to it than what appears at first glance. on being different. How has this recently affected your A lot of guys who tried to compete with us were used car managers, business and your people? general sales managers and general managers who had no advertising PG: Dealers tell us of their struggles to overcome decreased grosses background, and lacked experience being on the road in the promotions and drops in floor traffic, much of which is attributed to the high focus business. Unfortunately, they made a lot of mistakes at the dealers’ on Internet advertising. Now we’re seeing dealers jump back into the expense, and gave many dealers a bad taste of the staffed event industry. promotions business because of the positive cash flow and energy it creates in the showroom. Look at it this way: We can all play golf, but very few make it to the PGA Tour. Why is that? A lot of it comes down to dedication, To fill this steadily growing number of orders, we need to recruit now. commitment, practice, mental toughness and great coaches. Working Our hiring process is slow to ensure we accept only candidates of solid for us is a lot like being that player who makes it to the Tour. Strong talent and character. Our training process is long and intense to weed hiring, training and accountability practices seem to be what dealers out those who can’t cut it. This is a big separator between us and other want when it comes to staffed events. Demand for promotions has companies. There’s more to it than just hiring a car guy and sending increased, thanks largely to dealer recommendations regarding the him off to a store, telling him to “make it happen.” To us, “hope” is quality of our teams. In fact, we have been contacted by two other not a strategy. We don’t just hire car guys; we take talented people staffed event companies who were so impressed with our team training and teach them our system and management style so they can learn and accountability that they wanted to sell our teams. quickly, without making unnecessary mistakes at dealerships. Even those dealers whom are strictly Internet-focused have discovered AS: What positions are you looking to fill? the power of staffed events. The Internet is an invisible transaction. PG: We are looking for strong desk managers, closers, FI Dealers didn’t build multi-million dollar show rooms to have lengthy professionals, top-ranked sales representatives and national account phone conversations. Where you close business is on the showroom executives that call on dealers. floor. And in order to close business on the showroom floor, you need to get people in your dealership. This is where promotional marketing AS: How do you develop your people to be successful? comes into play. PG: A lot of car guys don’t think they need any more training. In fact, we have to pass on a lot of candidates because they aren’t willing to The success of our business model has helped dealers dominate their go through our training program. It may be hard to believe, but we’re market and created a need for us to seek additional help. OK with that. If the candidate doesn’t want to take part in our training, then they don’t fit within our system. We are a lot like the New AS: So what do you suggest dealers do to dominate their England Patriots in this way. We’ve learned that these types of people market? tend to create a lot of issues down the road. There are a lot of car guys PG: Do what your competition is not — pursue well-rounded, who don’t like to be held accountable to a higher standard. systematic marketing plans. Over the last couple years we’ve talked to a lot of dealers, and have noticed an alarming trend. If you look back Those who do take part in our training process understand its three years ago, every dealer in an average market was advertising importance. New team members spend weeks in assessment training, via direct mail, TV, radio, etc. These days, everyone is focused on designed to evaluate skills and character prior to officially becoming advertising through the Internet, making the Internet a rather saturated a part of our family. Once accepted into the flock, team members are space. Just because advertising options like direct mail have been required to participate in quarterly round-table training to discuss around for awhile doesn’t mean they don’t work. We are one of the common challenges and introduce new management and sales few companies that still offer a performance guarantee, which requires techniques. All of this regulated training acts as preparation for a us to track our advertising and stay on top of trends. Believe it or not, nationwide team convention held yearly in Cincinnati, Ohio. This12 www.autosuccessonline.com
  7. 7. convention allows teams to share experiences with their peers, further piece to our aggressive growth commitment, and require the attentiondeveloping themselves both professionally and personally. This cycle of only the most notable candidates.then continues for each year of a team member’s employment. AS: What will it take for people to join your team?Improving our people has been key in the results we have been able to PG: Before one can get to training, he or she must meet a very detailedprovide for our clients. As other companies are finding it harder and list of hiring criteria, which includes drug testing, background checks, aharder to have good sales, we have increased our average sale by 43 signed code of ethics and more. Our hiring process is lengthy, to weedpercent — all because we work a system. out the good from the bad. We don’t cut corners. This process is just as important to our client’s well-being as it is to ours. Our rigorous hiringAS: Describe some of the processes you have to motivate qualifications and training programs will appeal to only an elite few.and develop your staff.PG: Monday mornings are reserved for intricate sales training geared Think of it this way: What type of person strives to be a Greento the needs of staffed event account executives. Techniques from Beret? One who is driven, focused, committed and professional; orthe Sandler Sales Institute, The NTR Group and Stephen Covey are an individual who is non-committal, unfocused, unaccountable andregular topics up for discussion at these Monday morning meetings. lacking the desire to be all they can be?Motivational training programs such as those by Tony Robbins areattended by all — from the president to the receptionist. AS: Pursuing such an aggressive growth plan in the face of a recession seems a bit risky.The skills taught here go beyond basic classroom training to involve PG: This company is no stranger to conquering concerns. Fifteenstrategic goal setting and achievement plans. These plans require years in the business has given us many opportunities to learn righteach employee to regularly write down goals, address aspects of from wrong. We’ve taken our share of risks and have experienced bothperformance that need improvement, and apply new communication success and set backs as a result.techniques to their daily lives. All of these actions combine to create aprogram that nurtures success amongst its employees. Experience has formed the foundation on which successful events are built. It can be scary for a dealer to try something new in an economyAS: Tell us about your “Rules.” like this. We understand that fear. We’ve been there. But our historyPG: Our employees live by a list of more than 180 rules focused on has proven to us what really works and what doesn’t. This “no fear”sales and management best-practices. These rules act as guidelines for mentality has proven to be a large contributor to our steady and rapideach employee to teach them different ways to think about and handle growth. While not every dealer may be enticed by hard results, thereissues. When faced with difficult circumstances or tough decisions, these are an increasing number of dealers who’ve come to rely on ourrules help to define the issue and keep employees charging forward. products and services.Each rule is regularly reviewed as a part of various training programs.Copies of specific rules are displayed on the walls of each account Still think you’ve got what it takes to be a part of GA Marketing’sexecutive’s office and are shared with each team as reminders to apply all star squad? They may be searching for you. Send your resume tothe principle to a solution. Presenting guidelines in this manner helps Matt Baker, VP of GA Marketing at mbaker@autosuccessonline.each employee become better equipped to proactively handle situations. com for consideration.This style of training develops people to a higher standard. Thinking of hiring additional personnel for your dealership or businessAS: How has this training and preparation allowed your in the coming months? GA has a few free tips that will help you fillcompany to adapt to the changing needs of your clients your positions with quality talent. To request aand the marketplace? copy of Nine Necessary Rules for Hiring andPG: While staffed events are the core of our business plan, our people Retaining the Industry’s Best, e-mail Matthave been able to create additional services to help our clients grow. Baker at the address above, with the subjectAs time and dealer needs progressed, the talents of our employees line “RULES.”have allowed us to adapt and increase the services we are able toprovide. We now offer a variety of themed staffed events, direct mail For more information about GAadvertising, Internet promotions, RV programs and a fully automated Marketing or president Pat Gunning,inventory posting solution. We have repeatedly reinvented ourselves contact him at 866.880.3564, or by e-mail at pgunning@autosuccessonline.com.in response to growing demand. Our offerings grew out of need. Somewere created as a result of our absorption of various event providers,while others were built from direct requests from the dealer.By creating new business opportunities in response to demand, we arenow the one in need. We need to add talent to support our expandingbusiness divisions. No doubt about it: These new positions are a key
  8. 8. marketingsolution SusanGivens DEALERS USE AUTOMOTIVE DOMINATE SEARCH ENGINES Ever since consumers created by Ford Motor company to protect consumer searches a month. Without the cost began shopping on the their brand from third-party lead providers of expensive Superbowl ads, the network can Internet, third-party lead providers have used who were inviting consumers to receive give its members unlimited leads for a flat search engine marketing to acquire and sell quotes from competing brands so they membership fee. leads to multiple dealers who were willing to could sell the same lead to more dealers. buy them. With more dealers buying the same Their network was designed to be a captive “The network helps us reach people who type leads, the closing ratio and gross profits of consumer site that sells leads to their dealers in the more popular national and regional these leads have decreased while the cost has and not to GM, Honda or Toyota. “These leads search phrases like ‘Hyundai Virginia Beach,” increased. always generated the best returns because said Alex Snyder from Checkered Flag Toyota they were exclusive and not resold to multiple in Virginia Beach. “To appear on top of the As a result, most dealers prefer to generate dealers from competing brands,” said Sean results, we optimize our Web site and the their own exclusive leads that have higher Wolfington, founder of BZ Results and Cyber network powers our off-site SEO strategy by closing ratios and lower costs. To accomplish Car, which trained all of the Ford dealers on providing thousands of inbound links that this, dealers must be positioned where FordDirect.com when it was launched. increase our Web sites search authority.” consumers start their online shopping: search engines, such as Google and Yahoo. This has been a big obstacle because dealers have not been able to compete with national third- party lead providers who have long had an advantage on the search engines because of their national footprint and corresponding search authority. A new network, designed for local dealers, however, has changed the playing field by giving them an advantage on national search engines. Looking to use their combined weight to generate high-quality exclusive leads for less money, dealers have been joining the Automotive Advertising Network (created by industry veterans Brian Pasch, Sean Wolfington and David Boice) to establish a national footprint to increase their own authority and positioning on the search engines. As a result, they are appearing ahead of the third-party lead providers for popular The Super Bowl of Search Now some of the top dealers in the country are national and regional search phrases. Engine Optimization using their own dealer’s network to generate “It hurts our closing ratio and gross profit their own leads for less money, using regional The search authority of the dealer’s network when lead providers sell the same lead to and local Web sites, such as FordDirect.com, became most visible when the phrase “cash multiple dealers, or sell ads on Web pages that CarDealerSale.com and the hundreds of other for clunkers” became the No. 1 most-searched promote our inventory,” said Brian Benstock, sites. Chrysler may also be launching a similar phrase in the nation. Everyone scrambled to GM of Paragon Honda/Acura, the No. 1 initiative sometime this year. compete for this phrase in what became the selling Honda/Acura dealer in the world. “Super Bowl” of automotive search engine “We use the network because it promotes Unlike a traditional lead generator, the new optimization. Manufacturers and national our inventory on hundreds of national, network generates traffic through online lead providers had the advantage because of regional and local Web sites that don’t allow marketing, content publishing and through their huge footprint and their corresponding competitors ads on our pages and delivers hundreds of national, regional and local authority on the search engines, but the new unlimited exclusive leads.” consumer sites that are optimized to appear network gave dealers the power they needed on Google Page One for the most popular to end up on top. Ford Creates the First Ad Network regional search phrases like “Boston Dealer,” The first ad network, FordDirect.com, was a phrase that receives more than 20,000 “Every manufacturer and dealer had the same14 www.autosuccessonline.com
  9. 9. AD NETWORK TO “The network helps us reach people who type in the more popular national and regional search phrases like ‘Hyundai Virginia Beach,” said Alex Snyder from Checkered Flag Toyota in Virginia Beach. “To appear on top of the results, we optimize our Web site and the 2. “CashForClunkersFacts.com and network powers our off-site SEO strategy CashForClunkersNY, both AAN sites, appears on top for “Cash for Clunkers New York” by providing thousands of inbound links that increase our Web sites search authority.” program with the same offer so the question national Web site for national search phrases, was who could reach the consumer first,” a regional Web site for regional search phrases said Benstock from Paragon Honda, who sold and a local Web site for local search phrases,” more Hondas to clunker consumers than any Pasch said. “We are informing consumers other Honda dealer in the country. about the recall and helping them connect to member dealers who can help them service Since search engines are where consumers their vehicle or replace it for a new one.” initiate their research the majority of the time the Web site that could appear first for “cash “The leads we get from the network have a for clunkers” would certainly win the race. much higher closing ratio and gross profit “When consumers typed in a national search because we are the only dealer getting our 3. “ToyotaRecall.org, an AAN site, appears on top phrase like ‘cash for clunkers’ and regional leads” said Jon Sherrell, Internet Director for “Toyota Recall” phrases like ‘cash for clunkers new york,’ at the Rairdon Group in Washington. “We more than one of the Web sites in the network also get more leads from our dealer Web appeared on top of page one,” Pasche said. site because we inherit the network’s search In the end, the network generated more than authority and that dramatically improved our 150,000 leads for member dealers in less than placement on the search engines for highly 45 days, something that would have been competitive phrases for the vehicles we sell.” impossible before. Susan Givens is the publisher of Toyota’s Recall helped a lot of AutoSuccess. She can be contacted at dealers sell more cars 877.818.6620, or by e-mail at The recalls from Toyota became the most sgivens1@autosuccessonline.com. recent “jump ball” in the search engine optimization game. “ToyotaRecall.org, one of 4. “ToyotaRecall.org, an AAN site, appears on top the many Web sites in the network, appears for “Toyota Recall Virginia” and “Toyota Recall Chesapeake” multiple times on Google page one when consumers search for national, regional and local phrases that relate to the recall,” said Wolfington. For instance, when a customer searches for “toyota recall” (national phrase), “virginia toyota recall” (regional phrase) or “chesapeake toyota recall” (local phrase) they will find Toyota’s Web site and ToyotaRecall. org, the network’s Web site. “Members in the network appear on top because the network mirrors the search 1. “CashForClunkersFacts.com, an AAN site, 5. “BostonDealers.org, an AAN site, appears on behavior of consumers by optimizing a appears on top for “Cash for Clunkers” top for “Boston Dealers” 1 5 the #1 sales-improvement magazine for the automotive professional
  10. 10. marketingsolution KatherineDonovan GET PREPARED FOR THE RECOVERING ECONOMY Without a doubt, the these social forums as a means to casually return, but lower your customer burn. last two years have communicate back and forth with friends been the most challenging in our industry’s and family. We should be using them as they Create a Follow-up Practice history. There have been radical changes are meant — a forum to listen and provide “If you build it they will come” does not within dealer networks, manufacturers and value. This can be a challenging, but it pays cut it when it comes to marketing. You must consumer buying habits. So after last month, in spades, make sure that everyone in your dealership is we are all breathing a collective, if not aware of the campaign and the surrounding cautionary, sigh of relief. The economy is Target Your Traditional Marketing details. In addition, you will want to make showing us signs of better days. Customers Targeted marketing campaigns are all sure you have set clear expectations with are returning and the profits are following. the rage right now because they work. your staff on how the incoming calls should Identifying and targeting the correct be handled, how appointments will be The challenge now is efficiency. We customer with the correct message makes confirmed and how customers will be greeted must strategically communicate with our your message stick and your dealership when they visit the dealership. customers in ways that they respond to while relevant. Do not waste your time or money adding to the bottom line. Smart outreach on untargeted campaigns. Measure Your Return must be coupled with financial accountability When you start your campaigns, understand and responsibility. Target Online Communications the timelines and set a time at the beginning Targeted SEO and SEM should be used on all to review your results. Hold your teams and Below are a few steps that can be taken to electronic marketing. Many of us have started vendors accountable by setting objectives and insure your dealership is prepared to take utilizing SEO and SEM, but have done this timelines with whoever helped you develop advantage of the current economic outlook: much like we used to approach direct mail — your campaign and marketing. spray and pray. Keywords and advanced long Cleanse Your Data tail SEO help you land customers by pulling And finally, More than 25 percent of your current them in with services and topics specific to database has records that cannot or should their interest. Try New Marketing not be marketed to. Do not let unscrupulous A percentage of your budget should always companies waste your money trying to Be Cohesive in Your Messaging be set aside for trying new marketing communicate with them. Many dealers today spend good money to campaigns and new channels. Interest in make live calls direct mail pieces to drive mobile marketing alone is exploding, in fact, Capture E-mail Addresses foot traffic for a specific event. Unfortunately, according to a recent report published by Capturing customers’ e-mail addresses not when the customer visits your Web site or Unica, more than 36 percent of companies only allows you to communicate in a media dealership, there is no sign of the event. are already utilizing mobile marketing. that is more convenient to them, but also And worse yet, they often get two or three We are faced with a wide range of new dramatically reduces campaign costs. For communications that send mixed messages! marketing opportunities including rich media instance, if you send 12 communications a This extends between departments as well; like podcasting, messaging and apps to year paying an average of $0.83 apiece, you coordinate your message between sales and new social media and microbloging. Each could be saving $10 per year, per customer in service.t Ensure cohesion — this will reduce presents their own opportunities for reaching your database. That really adds up. your expenses and customer confusion while new customers and should be considered as maximizing your ROI. part of your strategic plan. Listen to Your Customers We spend a lot of time talking at our Talking with Customers, Not at Them For more ideas on how you can improve your customers when we should be listening to As tempting as it is, not every customer in customer communications, or to receive a our customers. For example: Most dealers your database wants to hear from you each free opportunity analysis customized to your today understand the importance and power month. Too often we get caught up with dealership, please contact me at the address of having a Facebook or Twitter account. what we want our customers to hear, and below. Unfortunately, these social media marketing are not focused on marketing messages that tools are often used by most dealerships to customer need to hear. All that noise is too Katherine Donovan is director of account communicate at their customers, not with easily dismissed and pushed aside. Sending development at VinSolutions. She can be the customer. It’s not the same as newspaper customers the right message, at the right time contacted at 866.837.0794, or by e-mail at or TV ads of yesterday. People utilize in the right way will not only increase your kdonovan@autosuccessonline.com.16 www.autosuccessonline.com
  11. 11. leadershipsolution JohnFreund SUMMERTIME SAVINGS CAN BE A REALITY FOR YOUR TEEN Now that the school After your child is armed with a bit more for example, they’ll have approximately year has ended, your spending sense, help them establish a savings $31,290. But if they contribute $2,000 a teen may be looking forward to a summer of plan. Help them remember that time is on year to their IRA for 20 years, assuming the scooping sundaes at the local ice cream stand their side. While those first jobs are the same 8 percent rate of return, they’ll have or policing the pool as a lifeguard. Whatever beginning of independence and maturity, the approximately $98,845 their source of summer-time income, it is youth of their years means the compounding important that they understand the value of of their cash. They should invest some of Your teen may also want to consider investing their work, the privilege of a paycheck and their earnings in a savings account such as a in the stock market. Even if they set aside the significance of saving and how it can Roth Individual Retirement Account (IRA) as little as $50 per month, they could invest contribute to a successful future. as soon as possible. This way, their earnings in a few companies they admire and track will continue to compound without the burden each organization’s daily performance in the After a couple weeks on the job, a teenage of Uncle Sam taxing every dollar. newspaper or online. With a vested interest worker will most likely get their first in the stock market, your teen will learn a lot paycheck. When this happens, be sure to sit They can contribute up to $5,000 per year about the fundamentals of investing and the down with your child to explain the ins and and withdraw the money tax-free when potential benefits it may have for their future. outs of the inevitable tax withholding and they turn age 59 ½. Although the money is other deductions that could eat up nearly 30 taxed before they put it into the account, it It is never too early to begin practicing solid percent of their earnings. After they get a will accumulate tax free for many years to savings habits. As soon as your child receives grasp on this reality, encourage them open a come. While some may think it’s too early that first paycheck, teach them that setting checking account and give them the freedom to begin funding retirement accounts in your aside even a small amount each week may they’ve been yearning for. Let them spend. teens, when you look at the numbers you’ll make a big difference on the road ahead. Once they realize how many hours it takes see it’s the best time to start. For example, John Freund is the senior vice president of them to afford the latest iPod or designer if your child begins contributing to an IRA investments for Moors Cabot. He can be t-shirt, they may think twice when the next this year and contributes $2,000 for the next contacted at 866.599.9162, or by e-mail at payday comes around. 10 years, and gets an 8 percent rate of return, jfreund@autosuccessonline.com. 1 7 the #1 sales-improvement magazine for the automotive professional
  12. 12. sales trainingsolution MarkTewart THE DEATH OF TRADITIONAL SALESPEOPLE part 2 A recent article I wrote to practice what I call the “slippery-slide but about truly understanding the customer titled “The Death method of selling.” and their thoughts and feelings. From of Traditional Salespeople” (AutoSuccess, understanding comes a shared goal-achieving December, 2009), received more response If you were at a pool and it had one of those process with the customer. You and the than any article I have ever written. Judging slippery-slides, you would start at the top and customer share a destiny, rather than acting from the massive response, I struck a nerve slide effortless to the bottom. In sales, it’s as opposing players. with salespeople, managers, business owners usually the salesperson that puts obstacles and just about everyone who read the article. in the way of the customer from flowing Traditional objection handling techniques Based upon the overwhelming response effortlessly to their destination. The obstacles stress changing a customer’s thoughts and and the huge amount of requests for more start in the form of an outdated mindset of emotions, rather than understanding them and information on this theme, I am providing the “control” and coercive techniques. then utilizing those thoughts and emotions following article. to come a winning solution for the customer. Instead of concentrating so much on outdated I call this paradigm shift “selling form the word tracks to overpower people, why heart.” Some old-school types will read this For as long as I can remember, traditional not concentrate on understanding basic and think it’s a bunch of psycho-babble and sales training has focused highly on certain human emotion and thought in assisting the feel-good mumbo-jumbo. To those of you sales skills such as cold calling, presentation- customer, rather than fighting him? Let’s locked into that vein of thought, understand demonstration, objection handling and start with the most abused skill in selling, that it’s not my mission to change you, as closing. This model is outdated and out of which is listening. So much of selling is most adults do not change. As Jesus said to touch. The traditional model that is taught to actually just listening. It is a proven part of his disciples, “Don’t tarry too long with the salespeople has an adversarial and combative communication that when most people listen, non-believers.” tone that goes against the grain of basic they listen intently for about the first 10 human communication. To find out more about this topic and receive seconds and then quickly shift into thinking about what their response will be. A quick some FREE bonuses, contact me at the Selling is not something you do to someone. shift occurs in the salesperson that is now address below. By my definition, selling is assisting people self-focused and control oriented. in finding and understanding a solution to Mark Tewart is the president of Tewart their problem(s). Every buyer has a problem To truly listen is to seek to understand based Enterprises, and the author of the best seller, — whether it is a want or need problem — upon complete focus on the customer and How To Be A Sales Superstar. He can be and it’s the job of the salesperson to guide the contacted at 866.429.6844, or by e-mail at their perspective. Perception of the customer mtewart@autosuccessonline.com. buyer to the solution instead of force feeding is the only reality that matters. It’s not about him product or services. It’s much easier right or wrong or overcoming objections,18 www.autosuccessonline.com
  13. 13. salestrainingsolution BudAbraham WHAT YOU NEED FOR A PROFITABLE DETAIL DEPARTMENT Dealers say they want of your detail department. Not the technical in carpet and upholstery cleaning is far to improve, but they aspects, but the management aspects. As exaggerated. An extractor cannot be expected continue to operate their detail departments important as the technical resources are, it is to clean carpets with heavy, ground-in dirt the same way they always have. Even worse, rare to hear anyone say that they spend equal and grit — not without some aggressive they do not have a long-term action plan to amounts of time and energy on management friction shampooing. The dealer, however, one day improve the department, which is resources. is always looking for unrealistic cure all symptomatic of the problems in the detail solutions. departments of almost all dealerships in the Manpower Resources U.S. and Canada today. Manpower resources are the people used to Facilities Resources detail vehicles. Nothing happens without By “facility,” it means the building or space Whatever justification the dealer makes, people. However, dealers often go about where the detailing is performed. For many the reality is if they want to improve the trying to get more production out of people in dealers, it is anywhere they can put a few efficiency and profitability of their detail the wrong way. cars. Today, however, many dealers are department, they would make some realizing that a properly laid out shop is tough investment decisions to upgrade First, dealers hire “experienced” detailers, essential to maximum production. Things the department in terms of management, thinking that someone with experience such as equipment placement, traffic flow personnel, facilities and equipment. will give them a jump-start. Wrong! patterns, lighting, heat and noise control are Unfortunately, “experienced” detailers in this just some of the important considerations. Utilizing Resources primitive business have usually come from There are certain resources – materials, a undisciplined work environment and resist Materials Resources facilities, equipment, manpower and change; their experience is only good if you You cannot clean cars without having the management — that have to be addressed for let them do things the way they want. right chemicals. They are thought to be the department to improve. They are your the “life’s blood” of the detailing process. production resources. Second, they spend more money on There is no argument about the importance equipment, buildings and better chemicals. of chemicals in the detail department, but Management Resources As important as they are, spending money on there is a tendency for the “detail technician” Management is the foundation of the them without proper attention to manpower to exaggerate their importance. And, of production resource structure, because results in less-than-expected results. In most course, the chemical salesman promotes this proper management is critical to consistent, cases, the experienced detailers will not use attitude to sell more chemicals. Bottom line: profitable production. Without a clear the new equipment or processes; it’s not the Chemicals are a commodity. Buy them from understanding of this resource, the time, way they “have always done it.” any legitimate supplier and you basically get attention and money applied to the other the same thing. resources will be wasted. What a dealer has to do in the detail department is to establish a benchmark for Summary Management resources are best utilized in a a prototype detail employee. Then, do not An experienced detailer with an electric detail department as follows: hire people with good skills; hire people with buffer, shop vac, plastic squeeze and spray 1. Cost analysis and a clear understanding good values and teach them the skills. bottles and a few rags will not make it if you of the financial aspects of operating the want an efficient detail department. department Equipment Resources You must have knowledge and a clear 2. Establishment of performance standards Having the right equipment and tools to do understanding of your production resources. and their constant review by a manager your detailing work is more important today If you do not, it is unlikely you will ever have and a supervisor over the manager than ever. However, the dealer seems to be an efficiently operating detail department of 3. Clearly defined goals and objectives looking for equipment at a cheap price that which you can be proud. for the department, the detailers, the will be a cure-all to all the problems in the manager, and the supervisor detailing department. The tendency is to The choice is yours to continue as you have 4. A well-defined management philosophy expect the equipment and tools to solve the or to move forward. 5. The hiring, training, motivation and problems, which they cannot do. delegation of responsibility and clearly Bud Abraham is the president of Detail Plus Car Appearance Systems. He can be defined accountability For example, soil extractors have become a contacted at 866.205.8499, or by e-mail at common piece of equipment in dealership babraham@autosuccessonline.com. It is here at the foundation that you find the detail departments. But the expectations of most important resources in the operation what this piece of equipment can accomplish20 www.autosuccessonline.com

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