Read this month’s and previous issues online at www.AutoSuccess.biz                                                       ...
SUMMITIII                                                                                                                 ...
8Moving Out of Your Comfort Zone                                                                                BrianTracy...
HERE’S HOW TO GET EVERY MAILER OPENED!                                            A POPULAR SCRATCH OFF • 8.5” x 13” Full ...
BrianTracy                     Moving Out of Your Comfort Zone                     Any change, or even      affected. You ...
BobTasca                        Improving Employee Satisfaction                                                           ...
TomGegax                                                      Customer Service Counts                       Tires Plus’ cu...
JimAdams                                                             The Road to 20                                       ...
continued                                                                                 These are the questions you must...
DavidKain                                                    E-mail Best Practices:                                       ...
“Let’s make financing magic together.”We’d love to meet with you to discuss how we canhelp provide the best financing to y...
KirkManzo                                                                  ... With Time to Spare                      Man...
MichaelYork                                    If Your Business Closed Today,                               Would Anyone R...
august 2005              19
fs       feature solution                                                                                                 ...
approval sale with all 5,000 pieces going topeople who qualify. With the same 2 percentreturn and the same 100 ups, the re...
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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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Auto Success Aug05

  1. 1. Read this month’s and previous issues online at www.AutoSuccess.biz .biz The Real Deal Pre-approval Sale Ben Elliott & Jimmy Peters Moving Out of Your Comfort Zone Improving Employee Satisfaction Improves Customer Satisfaction The Road to 20 Cars a Month, Every Month E-mail Best Practices: Create an Effective Auto Response How to Really Maximize an Employee Price Programa division of Systems Marketing, Inc. August 2005
  2. 2. SUMMITIII BEST PRACTICES Dean Evans David Kain Sean Vice President of President, Kain WolÞngton Marketing, Dealix Automotive Inc. Internet & Owner, BZResults.com BDC Training Specialist You will learn: Case Study: How to use - Internet Marketing that You will learn: BDC/Internet departments generates high quality - Mapping out the best to sell 100 - 500 extra cars leads - Maximizing lead Internet sales process - E-mail templates for the a month. You will learn: LEADERSHIP • INTERNET • CRM • MARKETING • BDC • SALES generation from your best short and long-term - Setup a successful BDC/ Web site communication Internet department - Maximizing third party - Phone script elements - Use the Web to promote automotive sites that turn leads into all your proÞt centers - Metrics that matter appointments - Use the Web to drive - Focus on return on - Recruiting, hiring and Dealers & showroom & phone trafÞc investment compensating for results - Sell old stock, vehicles & parts inventory - Use e-mail marketing to drive more trafÞc for zero cost Managers Only! Two days of intense learning. Dramatically Kevin Root Steve Hiatt Owner, Mountain Mitsubshi Jennifer Picheco improve your results.VP & GM, Dealer AdvisoryService, The Cobalt Group Case Study: How to Director of e-Commerce, increase your net by half a Germain Motor Company Case Study: Processes million in a year. Case Study: Germain the top 20 dealerships You will learn: Motor Company’s Internetuse to convert more leads - Evaluating personnel, department sells over 200 to sales the lazy or content ones cars per month - here is - Continually train our secret You will learn: everyone: Front end two times a week, Þxed end You will learn: - Use the top three key once a weeksuccess drivers to convert - Dedicated vs. - Put in controls. Move Designated leads to sales over aged inventory in - Avoid the three most - The pricing fear factor new, used and parts - Are you really listening to common mistakes that - Forge a deep relationship with your the customer? kill sales - Third-party leads.. - Maximize your lead manufacturer to help get correct inventory, ßoor line Why not? volume - Move forward or move and capital - Respond to leads - Praise every on - Our follow-up - Drive for appointments improvement in sales schedule- Focus on processes that goals, certiÞcations, etc. - Measure, track and deliver results out in public feedback MGM Grand Las Vegas, Nevada Chip Perry Jim Adams Robert Revere November 3 & 4, 2005 CEO and President, General Manager, CRC Director, Avondale AutoTrader.com Roper Kia Auto Group Honor YourInternet Advertising Best Commitments: The Case Study: Transition Practices Þve things we owe our from Internet BDC to sales staff modern day CRC Limited Seats, You will learn: You will learn: You will learn: - How AutoTrader.com’s - How to understandtop performing dealers get - Lower compensation opportunity generations is percentages Register Today! their outstanding results the key to success - Lower overhead - Take home examples of - Individual goal setting - 100 percent effective merchandising - Managing activities bring accountability you can put to results - Higher results immediate use - Daily one-on-ones: The key to success Case studies - Your selling attitude: Mirroring behavior - Building your dealer brand from successful dealerships across the country.Darren Haygood Jasen Rice Erik StuttzDirector of CRM & Internet Sales, Lokey Automotive Internet Director, Lou Fusz Automotive Case Study: Ranked #17 Vice President of Consulting, STC Group Class room style seating only $695 Case Study: Lokey Case Study: Paragon Automotive Group in Total Internet Sales for Honda & Acura uses CRC triples Internet sales - by dealer groups, Internet to sell 106 extra cars in spending less! departments generate one month. upwards of 20%-40% in advance, You will learn: of the dealerships total You will learn: - DeÞne your dealership’s business. - How we increased our CRM strategy. BDC vs. leads and increased dedicated personnel You will learn: our closing ratio from 7 $995 after - Maximize your ROI, - Marketing to today’s percent to 25 percent ignore the hype and start Internet consumers - How to evaluate the realizing real results - Internet Department’s different CRC models to - Achieve higher gross steps and processes to choose the one that works October 5, 2005. than with your walk-in the appointment/sale for your store customers - Gaining revenue in the - How to staff your CRC - Achieve 20 percent Þnance department and - How to build out & Closing ratio & 20 getting them to become overcome obstacles to percent retail mix for your more atoned to the creating a successful CRC dealership Internet customer - Best practices for turning - Turn leads into phone - Meeting and exceeding leads into appointments ups - phone ups into Internet customers that show and appointments expectations appointments into sales Speakers and times subject to change Call today to register. toll free 866.317.7914 web www.autosuccess.biz
  3. 3. 8Moving Out of Your Comfort Zone BrianTracyINSID Improves Customer Satisfaction 9 Improving Employee Satisfaction Customer Service Counts The Road to 20 Cars a Month, Every Month 10 12 BobTasca TomGegax JimAdams Create an Effective Auto Response 14 E-mail Best Practices: DavidKain ... With Time to Spare 16 KirkManzo Would Anyone Really Notice or Care 18 If Your Business Closed Today, MichaelYork The Real Deal Pre-approval Sale 20 BenElliott And You Are ... 22 TonyDupaquier How to Really Maximize an Employee Price Program 24 ScottJoseph Steering Out of Control 25 CarolMartin-Ardell Fact Finding 26 AnthonyHall Manufacturer or Leadership 28 Is it Marketing, the SeanWolfington Pre-Owned ProÞtability 29 New Software Steps Up RandyBaroneIn the special featureof the July issue ofAutoSuccess Magazine, The Champion Coach 30 MarkTewartwe incorrectly stated thatBen Freeland worked for Smile and the World Smiles With You 31 PattiWoodFreeland Luxury cars, heis the owner of NaplesNissan in Florida. Leverage Your Ofßine Marketing Efforts 32 PaulAccinno CRM Evolution 34 DanVogel Exodus 34:2 “Be ready in the morning, and then come up.” 3411 Pinnacle Gardens Drive Louisville, Kentucky 40245 ! Toll Free: 877.818.6620 " Facsimile: 502.588.3170 Isaiah 41:13 Patrick Luck, Editor & Publisher “For I the Lord thy God will hold thy • pluck01@autosuccess.biz right hand, saying unto thee, Fear Susan Givens, Vice President not; I will help thee.” • sgivens02@autosuccess.biz Courtney Hill-Paris, Sales-improvement Strategist • chill-paris04@autosuccess.biz Brian Ankney, Sales-improvement Strategist • brian01@autosuccess.biz God Bless America Thomas Williams, Creative Director • twilliams03@autosuccess.biz AutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccess.biz. Subscription rate is $75 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. 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, 3411 Pinnacle Gardens Drive, Louisville, Kentucky 40245.
  4. 4. HERE’S HOW TO GET EVERY MAILER OPENED! A POPULAR SCRATCH OFF • 8.5” x 13” Full Color On Both Sides • 8.5” x 11” Full Color on Both Sides • 3.5” x 8.5” Full Color Super Slots© Insert Includes: • 3.5” x 5” Dash for the Cash© Ticket Scratch Off Play Area/ $15,000 Cash Includes $20,000 Give-away Give-Away†/ Insured • Residential Selector or • Residential Selector or Your Database List Your Database List • Quality 80# Cover Stock • Quality 70# Text Stock • Mailed in a 6x9 White • Mailed in an Envelope Envelope • Postage Included!** • Postage Included!**ONLY great value PER PIECE* PER PIECE* A DOCUMENT THAT GETS NOTICED! ARE YOU CAPTURING THE OFF LEASE MARKET?• 4 Separate Pieces in the Envelope • 8.5” x 13” Full Color On Both Sides• Experian or Equifax Score List or BK • $20K Insured Vehicle Give-Away†• Quality 70# Text Paper • Off Lease Termination List• Mailed in an Open Face • Quality 100% Gloss Stock Window Envelope • Self Mailer Format• Postage Included!** • Postage Included!** only LOW PRICE OF PER PIECE* PER PIECE* *Based on 12,500 pieces **Premium U.S. Postage with Express Delivery †Group policy CALL TODAY FOR A FREE INFORMATION PACKET AND OUR MARKET REVIEW OR VISIT US AT WWW.PREMIUMPRODUCTIONSONLINE.COM (866) 376-2392
  5. 5. BrianTracy Moving Out of Your Comfort Zone Any change, or even affected. You will experience sleeplessness, achieve them. You must begin to see yourself an attempt to change indigestion or fatigue. You may react with and think about yourself as capable of being anything you are impatience, irritability or anger. You will one of the highest earning sales people in your doing, makes you often feel as if you are on an emotional field. You must take charge of developing a uncomfortable. By roller coaster. So if you want to sell more new self-concept for sales and income that is attempting to change, and earn more, you must increase your self- more consistent with what you really want toyou move out of your comfort zone. You feel concept level of income. You must increase accomplish.increasingly uneasy. You experience stress the amount you believe yourself capable ofand tension. If the change is too extreme, earning. You must raise your aspirations, Your self-concept determines your levels ofyour physical and mental health can be set higher goals, and make detailed plans to performance and effectiveness in everything you do. In sales, you have a series of mini- self-concepts that govern every activity of selling. You have a self-concept for prospecting, for using the telephone, for cold calling, for making appointments, for qualifying, for presenting, for answering questions, for closing, for getting referrals and for making follow-up sales. You have a self- concept of your level of product knowledge, your personal management skills, your level of motivation and for the way that you relate to different types of customers. In every case, you will always perform in a manner consistent with your self-concept. Wherever you have a high self-concept, you perform well. If you enjoy working on the telephone, you look forward eagerly to telephone prospecting and selling and you do it well. If you have a high self-concept for making presentations or for closing sales, you feel comfortable and competent whenever you are doing them. Wherever you feel tense or uneasy in selling, it means that you have a low self-concept in that area. You do not feel comfortable when you are engaged in that activity. You probably avoid that activity as much as possible. This is normal and natural. The only question is, what are you going to do about it? Now, here are two things you can do immediately to put these ideas into action. First, set a goal today to become one of the highest earning people in your field. Then, back your goal with action by committing to becoming very good in every area of selling. Second, see yourself, imagine and visualize yourself as if you are already very good at what you do. Create within yourself the feeling of success and accomplishment. Remember, as within, so without! Brian Tracy is the chairman and CEO of Brian Tracy International. He can be contacted at 866.300.9881, or by e-mail at btracy@autosuccess.biz. 8
  6. 6. BobTasca Improving Employee Satisfaction Turn Your Improves Customer Satisfaction Internet Leads We learned to curb Employee referrals into Showroom employee turnover and increase employee Ask internal employees who do an outstanding job if they know any one who Appointments... satisfaction because might make a good fit with the organization. customer satisfaction Offer an employee “bird dog fee” for their hangs in the balance. help in finding a quality candidate that staysMaking a difference in employee satisfaction for a period of time (example: six months).at your store hinges on four areas of focus: 1. Recruiting process Advertising 2. Hiring process When networking and employee referrals 3. Orientation process fail to generate a qualified candidate for an 4. Continuous improvement process immediate position, we have some great content and helpful pointers for creating theIn this article we’ll look at recruiting out of right kind of ad:inspiration, not desperation, and if you like 1. Sell yourself. Like a “Why Buywhat you read, you can watch for future Here?” brochure, a want ad needsarticles to look more closely at hiring, to be a “Why Work Here?”orientation for new hires and continuous 2. Never over-promise and under-improvement. deliver. 3. Mention in-depth training, if youRecruitment process offer it.Trying to recruit great people is a never- 4. Mention that a mentoring orending chapter in the story about meeting continuous improvement processand exceeding customer expectations. But will be provided, if it is.do we sometimes make decisions out of 5. Advertise that you offer monthlydesperation? To avoid being caught in a bind, associate reviews for ongoingfinding great people starts with an outlined support, and live up to thatdescription of each position in the dealership promise.to define our dealership needs. This canstart with looking at our surroundings and Other sourcesfocusing on these three things: Here are a few more examples of where to • Work environment look for great people: • Job tasks and responsibilities • Job Fair: Set up a booth at your • Job competencies local college(s) during a job fair day.As anyone in retail knows, there’s no such • Monster.com and other Internetthing as a “hiring freeze” in a car dealership, sources.and if you’re not on the lookout for talent, itmay go unnoticed. The automotive business is a sales and service industry that can be compared to aQualiÞed applicants fine hotel, fine restaurant or clothing store.Whether you’re looking for a qualifiedtechnician, superstar sales person or Customers are willing to seek out, find and pay more money when the service exceeds Guaranteed...trustworthy title clerk, the best dealers utilize“word of mouth” advertising. The goal is to their expectations. There’s no danger of or You Don’t Pay! exceeding customer expectations if wenever have a need to run advertisement don’t put an end to the revolving door thatto solicit employees and to create a is the result of employee turnover, and thatreputation in the community that qualifies starts with recruiting the right people out ofyour dealership as the place to work. This inspiration, not desperation. At Tasca, wemeans we need to focus on doing our best as learned a lot about recruiting the right peopleeffective leaders within our workplace and from our training partners, and I encourage Call today for a free estimatecommunity. Quality job applicants will seek you to contact me to learn more about on implementingto find us, if we are doing our jobs. creating a recruiting and hiring process that the TIMS system in your store.Networking will build employee satisfaction and boostAlways let people know we are on the lookout your CSI.for quality, potential candidates. Be sure to askother business contacts (banks we deal with,advertisers and even our supply vendors) for Bob Tasca III is the dealer principal of www.worlddealer.netany possible recommendations while we are the Tasca Automotive Group. He can be e-mail: info@worlddealer.netparticipating in business transactions and contacted at 866.210.1254, or by e-mail at 866.429.6826even involved in social activities. btasca@autosuccess.biz.august 2005 9
  7. 7. TomGegax Customer Service Counts Tires Plus’ customer our employee playbook, dealt with how to handled cleanly in the first place. service was legendary. treat our guests (we called them “guests” to I asked our people inspire the kind of service you’d find at a fine 4. Solicit and act on feedback. Create to add a touch of hotel). You can’t inspire daymaking service as many comment channels as possible: volunteerism to the through occasional pep talks, memos and comment cards, follow-up phone calls, job, to try to make meetings. It’s gotta be walked, talked and complaint hotlines. You can’t get bettereach customer’s day a little brighter. If we lived - day in and day out. without knowing what your customersconcentrated first on kindness and empathy, think. We regularly retained an outsideI said, healthy profits would naturally follow 2. Treat employees right. If you leapfrog service to conduct customer surveys. We(as long as our prices and costs were in line). your people and focus chiefly on pleasing also contracted a “mystery shopper” service customers, you’ll wind up with unhappy - for both in-store and phone interactions -Why gun for “legendary” customer service? customers. Connect the dots, folks. Do to get an objective, in-depth look at quality you really expect employees who feel control.1. It keeps ’em coming back. Seat-of- unappreciated to welcome customers with athe-pantsers spare no expense to get new big smile and a genuine desire to give them a Gathering information is pointless, of course,customers in the door, yet often fail to provide positive impression of your company? Honor unless you act on it. We tweaked our storea why-go-anywhere-else experience. Huge your people, concern yourself with their protocols all the time based on customermistake. Customers are like spouses - take well-being and respond to their grievances feedback. Every negative comment about anthem for granted and they may go elsewhere like they were customers. You’ll be employee was routed to his manager’s in-boxto get their needs met. It’s a vicious circle rewarded with invigorated, loyal employees (and copied to his district manager) so the- businesses pour more and more resources who set new standards for performance and offender could be coached back on track.into unearthing new customers to replace customer care.the ones lost to neglect. Showering attention 5. Walk your talk. Leaders give a lot of lipon customers already in the fold keeps them 3. Establish clear policies. In our business, service to their commitment to customerin the fold, so your new customers become guidelines were essential at three customer- service. Are you among the few who followadd-ons rather than replacements. care stages. through? When you hear of a complaint, do you shake your head and joke about the2. It pulls in new customers. Don’t just Initial contact. customer being an odd duck? Or, do yousatisfy customers. Astound them. Lay out Guests were greeted with WHENS: urge your people to look at the situationthe red carpet, and guests will rave to friends Welcome, Handshake, Eye contact, Name, through the customer’s eyes and do whatand family. That sends new customers to Smile. We then asked a series of questions it takes to make her happy? Do you shout,your doors and Web site - at no additional to identify their needs. Staffers also fielded “You gave away WHAT?” Or, do you say,cost. (Expect a dazzled customer to phone calls according to a protocol I “Good for you, you remembered our valuesrecommend you to two to three others.) On established in the early ’80s: “It’s a great and did the right thing.” Great customerthe other hand, one rude encounter with an day at Tires Plus. This is Jim. How can I service will wither on the vine without theemployee can torpedo every future purchase help you?” support of upper management.from that customer, his family and friends- and their family and friends. (Expect a Warranty service. 6. Measure and reward performance. Wepeeved customer to complain to three to Sales people were trained to welcome had a customer satisfaction metric calledeight others.) Precious word-of-mouth buzz returning, non-revenue-producing guests GEI (guest enthusiasm index). Applied- free advertising - is squandered whenever like they were new customers. The reason to individual stores and the company asa customer has a less-than-excellent should be obvious - customers prefer to go a whole, it quantified the percentage ofexperience. steady rather than have a one-night stand. customers who would recommend us to That means coddling. friends. Below-average stores were targetedSix ways to win legendary customer for extra coaching. It took a lot of sweat toloyalty: Customer complaints. push up our GEI one percentage point. Darrel We welcomed them. No, seriously. They Blomberg, our full-time guest enthusiasm1. Hire the right people and train them well. were opportunities to demonstrate we cared coach (that’s not a joke title), labored two-We showed everyone involved in hiring about our customers. We even deep-sixed and-a-half years to move it from 92.0 tohow to spot applicants who loved helping the word “complaint” and replaced it with 98.2. Personnel knew every smile countedpeople and making their day. But that was “guest opportunity.” It’s said that the value of - their compensation was partially based ononly the beginning. Good employees also a person’s character is measured by how one a mix of store, district, region and company-need training and inspiration. We enrolled deals with adversity. That’s also true of the wide GEI.new hires in a weeklong orientation where, value of a company’s character. Employees atamong other things, I spelled out our mission every level need the authority to do whatever Tom Gegax served as chairman and- “Deliver caring, world-class service to our it takes to satisfy unhappy customers. Just CEO of Tires Plus and is the founder ofguests, our community and to each other.” as a broken bone comes back even stronger, Gegax Management Systems. He can beThe focus of countless meetings, talks and we often scored more points by appeasing contacted at 866.210.2832 or by e-mail attraining sessions, as well as big chunks of an upset customer than if the issue had been tgegax@autosuccess.biz. 10
  8. 8. JimAdams The Road to 20 Cars a Month, Every Month Have you ever want to be. Get out a pen and paper. Write of something that we need to accomplish. heard the phrase down: today, three months, six months, one A crystal clear vision of where we are and “experience is the year, five years and 10 years. Our goals must where we want to be is one of the many keys greatest teacher”? be divided into professional goals, family to success that we will explore in our goal- This statement could goals and life goals. My personal goals setting process. Writing and reviewing these not be further from include unit volume, grossing averages as goals will instill in us the drive that we mustthe truth. Other people’s experiences are well as how many books I plan to read and have to accomplish great things.the greatest teacher. Learning from other how much time I set aside to spend with mypeople’s successes and failures is the key to family. Money goals are the vehicle we use to 2. Professional goals: The first thingprofessional selling. plan for the goals that really matter: Life and professional sales people need to have is family goals. If you are just earning money a clear understanding that sales followAndy Andrews said that General Norman for the sake of earning money, your life and opportunities everywhere they go. To sellSchwarzkopf, commander of the Allied family goals will always go unfulfilled. Zig more cars we must talk to more people. Weforces in the Gulf War, had a system of Ziglar once said that when he died he would know that the average sales person closesadvancing across a mine field that worked leave as much money as Howard Hughes about 20 percent or one out of five of theirout pretty well for him. Walk toward the left: all of it. Just start writing. What do you total opportunity count. So let’s do the math.explosions, because that is where the boys want? Start with stuff. That is the easiest. To sell 20 units a month we need to talk tohave already found the mines. Observing I want a new car, a bigger house, some (20 units X five opportunities) 100 customersbehavior is one of the many keys to success money in my savings account. I want a boat, per month. If we work five days a week wein this business. I have been the seven-car a place at the lake and to take a vacation will have 22 selling days which means wesales man and the 30-car sales man and I to the beach or to the mountains. Once need to talk to (100 customers divided byhave made my share of mistakes. However, you get started, it comes pretty easy. That 22 days) 4.5 customers per day. The averageover the past 15 years I have learned and is just stuff. Now dig a little deeper. How commission including bonuses and factorydeveloped professional business practices about spending 30 minutes a day reading to spiffs is around $300 per car, which will givethat if followed will help you become a your children or playing catch in the back us a monthly income at 20 units of $6,000professional in automotive sales. It is said yard? Write it down. How about spending monthly or $72,000 annually. (See chart 1)that 80 percent of the income in our business two Saturdays a month on a date with youris made by the top 20 percent of the sales spouse or dedicating one hour a night sitting Once we discover how many monthly andpeople. This leaves the bottom 80 percent of on the porch talking about anything but your daily opportunities we need we are one stepthe sales people fighting for the 20 percent finances or the children’s activities? Write closer to achieving our unit goal. If our goalof the income left over by the true sales it down. Tithing, community service or is 12 units a month, our focus is not on theprofessionals. If you commit every day to visiting home-bound elderly adults can all 12 units it is on the 2.7 opportunities thatfollowing the steps of professional selling be a part of your life and family goals. Many we need today and everyday to achieve theyou will be amazed at how fast you can of our goals take money. Most do not. I hope goal. Sales follow opportunities everywhereachieve great success in automotive sales. you can see where I am going. If you write it they go. down it becomes an objective that we must1. Have a goal, a clear vision of where you look at on a daily basis and it is a reminder Now let’s focus on where our opportunities come from. In our industry we have severalchart 1 sources of business. Fresh ups or walk-ins, Unit Monthly Opportunity Daily Opportunity repeat owners or orphaned owners, new Goal Count Count business or outside prospects, referrals, be-backs and phone-ups or phone-ins. Units x 5 opportunities Monthly opportunities divided by 22 working days Here is the good news. The factories and 20 100 opportunities per month 4.5 opportunities per day your dealerships spend billions of dollars units a year driving fresh up or walk-in traffic 19 95 4.3 to your dealership. The bad news is that at 18 90 4.1 best the average closing ratio on a fresh up 17 85 3.9 is about 10-12 percent. Which means your 16 80 3.6 chance to sell a fresh walk-in is about one 15 75 3.4 out of 10. Fresh up traffic is instrumental to 14 70 3.2 your success in this business as long as you 13 65 3.0 understand that it is not where the majority of your opportunity should come from. Take 12 60 2.7 a look at the math. (See chart 2) 11 55 2.5 10 50 2.3 Now, where do you want your business to 12
  9. 9. continued These are the questions you must answer Source of Average Closing Results in order to put the goal-setting process into Business Ratio motion. In part two we will explore how Fresh Up 10 Percent 1 out of 10 to build daily activities to cultivate each source of business to ensure that we meet Repeat Owner 50 Percent 1 out of 2 our monthly opportunity goal. Remember unit sales follow opportunity everywhere Referral 50 Percent 1 out of 2 they go. New Business 30 Percent 3 out of 10 Be Back 67 Percent 7 out of 10 Jim Adams is the general manager at Roper Kia in Joplin, MO. He can be Phone Ups 20 Percent 2 out of 10 contacted at 800.905.0627, or by e-mail at jadams@autosuccess.biz.chart 2come from? It is clear to see that repeat andreferral business are much more productive DEALERS MUST BEthan fresh walk-in traffic. Here is thebonus: Repeat owners are easier to close,and commissions are generally higher. Thecustomer trusts you more and will allow you ON TELEVISION!to sell the value of the product. The morevalue the customer receives, the higher pricehe or she will pay.As we set opportunity goals we mustpredetermine on a monthly basis where ouropportunities will come from. Ask yourselfthe following questions: See why over 100 dealers nationwide have • How many fresh ups per day do I INCREASED SALES MORE THAN 30% IN average? LESS THAN 90 DAYS WITH TELEVISION! • How often do I contact my current owner base? We produce nearly 4,000 commercials • Does my dealership have a list of a year from our studios. We give you orphaned owners, and how can I get my hands on it? unlimited, high quality television campaigns and promotions FREE. With computerized • Do I ask everyone I come in contact with for a referral? Do I know how to media buying technology, we buy television as ask for a referral? much as 30%-40% more effectively than any • What daily activities do I have in media buyer in the nation and give you place to generate new business contacts? Do I belong to any clubs or UNLIMITED TV CAMPAIGNS civic organizations that will help me AND PROMOTIONS! cultivate new business contacts? Call for a FREE demo tape and information. • How often do I follow up unsold prospects? Do I do a great job of getting names and numbers from every fresh up that I serve on the lot? Cell phones and e-mail addresses are Larry John Wright, Inc. the two most important pieces of information you can get from your Automotive Advertising customer. “America’s Premier Automotive Advertising Agency” • Do I feel that I do a great job with 1-800-821-5068 incoming phone contacts? Am I relaxed, helpful and informative? Do I get the customer’s information and invite every phone up to the store or get the vehicle to the customer?august 2005 13
  10. 10. DavidKain E-mail Best Practices: Create an Effective Auto Response Each week I mystery team as professional and talented. This a business card then you realize it should shop dealership Web conveys to the customer that the Internet have your logo at the top. This identifies sites to see how they is a key connection to the dealership and immediately who it is from and starts the “greet” me online the most visible person in the organization brand-building process. with their auto wants to personally say hello. A well-crafted response e-mail. The message from the Internet manager/director Step 4 – Keep it briefauto response provides the first impression or specialist works well too and helps to Tell the customer as quickly as possible whatand is an effective way for me to determine quickly establish them as the point person. you want to tell them and don’t waste theirif they operate a productive Internet time. Graphics and bullet points work welldepartment. As sales people we are all taught and hold the customer’s attention better.the steps to the sale during our first days oftraining and the greatest emphasis is placed Tell the customer Step 5 – Describe your processon the initial greeting because it sets the as quickly as Some of the most effective auto responsesstage for the relationship. possible what use a 1, 2, 3-type process description to let the customer know it will be quick and easy.Unfortunately, most auto response e- you want to tell For example:mails are not an effective greeting for thedealership, and fail to arouse or motivate their them and don’t 1. We are reviewing your request andaudience. Too often the e-mails are sent with waste their time. will contact you within one hour byeither too few or too many words and theyoffer no guidance to the customer. A poor Graphics and phone or e-mail 2. We will confirm your specificationsauto response is better than a slow personal bullet points work and schedule a time that isresponse, even if the personal response isenticing. Spend the time necessary to make well and hold convenient for your test drive 3. During your test drive visit weyour first impression a great one. the customer’s will provide your price, trade andWhat is an auto response supposed to attention better. financing information right up front so you can decide if you want toaccomplish? purchase the vehicleAn auto response lets the customer know Step 2 – Use a subject line that is relevantwhat they can expect when they work with to the customer Step 6 – Provide a link to your Web siteyour Internet department. In most cases, People can receive a lot of mail from people A link to your Web site is a great way to buildcustomers have submitted leads through and companies they are not familiar. Normally brand and to establish your dealership as athird parties and have already received a we screen the e-mail address and the subject great resource for your customer. A simplestandard reply of some sort from that source. line to see if they are safe and worthwhile to mention such as: “You can visit our Web siteAs a result, your auto response greeting open. Since the lead you received typically at www.kainautomotive.com 24/7 to reviewshould acknowledge that your dealership comes from an aggregator of some sort that our updated inventory and specials.”will be handling the transaction. If your auto may be providing you the customer fromresponse is just a brief note with no benefit one of the lead sources they work with. Step 7 – Sign it with complete contactto the consumer then they may also regard As a result, the customer may be surprised informationfollow-up responses much the same and not to know a dealer will be sending them an You have the customer’s attention at thiseven open them. Don’t miss the opportunity e-mail with their dealership name in the point so make sure they know who theyto hit the ground running with an effective subject line. If the customer is not expecting are working with by signing it with yourauto response welcome that causes the to see an e-mail from your dealership they complete contact information. If the dealercustomer to want to open your follow-up may not even open the e-mail so it is best or GM is the sender make sure you includee-mails. to make it relevant to the consumer with a who the customer will be working with and generic subject line that says something like endorse their expertise. Consider providingStep 1 – Decide who you want to sign the “Response to your online vehicle inquiry” or a link with a map to the dealership for theauto response “Information regarding your Internet vehicle customer’s convenience.The auto response is designed to get the request.” The customer will realize theycustomer’s attention and welcome them to asked for information on a vehicle online soyour dealership Internet process. If the dealer the subject line is relevant and they are moreor the general manager is a well-known likely to open the e-mail. David Kain is the automotive Internet training specialist at Kain Automotive Inc.spokesperson for the dealership, it is a good He can be contacted at 800.385.0095, oridea for the initial welcome to be from him Step 3 – Use your logo by e-mail at dkain@autosuccess.biz, oror her with a line endorsing your Internet If you think of your e-mail like a letter or visit www.kainautomotive.com. 14
  11. 11. “Let’s make financing magic together.”We’d love to meet with you to discuss how we canhelp provide the best financing to your customers.With our deferred-payment option, we’re quite surewe can make you very happy.Drop your local commercial DRM a line or call1-877-TEAMBVF and make a date soon. A product of DaimlerChrysler ServicesJeep® is a registered trademark of DaimlerChrysler Corporation.
  12. 12. KirkManzo ... With Time to Spare Managers may feel as If you can only complete a limited number need to be put on the schedule first. All other though they need 27 of tasks, at the end of the day what is most tasks (small rocks) then work around the hours to accomplish important? Sell cars; everything else pales in daily events (large rocks). all the tasks placed comparison. on them by the The weekly strategy is similar. If you know dealership. The idea of This may seem obvious on the surface but the deadline for payroll is Tuesday at noon,multitasking is no longer a luxury, but rather look at how you spend your time each day. block out an hour on Tuesday morning toa necessity or is it? You order cars from the factory, follow up calculate commissions for your sales team, with sales people on factory certifications to and have another manager cover the deskToo often a manager spends his or her time qualify for their incentives, chase stips, deal and floor from 9-10 am every Tuesday. If thereacting to everyone else’s requests instead with heat cases on the service drive, etc. cut off for the newspaper ad is Thursday atof training people on when and how to 11a.m. and it takes 2-1/2 hours to set up yourschedule time with them. In order to help your dealer understand ads, schedule 90 minutes on Weds from 1- 2: exactly what it is that you do, and help you 30 p.m. and Thursday 9-10a.m. to meet theThere is one thing we all have in common. get clarity as well, do the following. Each weekly deadline. Stay consistent. ScheduleEach of us is provided with exactly the manager should make a list of ALL the tasks repetitive tasks so others can learn when yousame resources without regard for who you that you are responsible for handling (as you are and are not available to answer questionsare or where you work. We are all provided understand it). or help out.with the same size bucket to begin each day.As the day begins, your bucket is empty The results of the exercise will often reveal Follow the same routine for monthly tasks:and throughout the day it fills up until the obvious overlaps, two people addressing the Schedule monthly sales people reviewsbucket is completely full allowing nothing same tasks. This is counter-productive. For for the first week of the month. Allow 30else to fit. example, assign one person to handle dealer minutes per person, if you have more than 10 locates (hint: a sales person can be assigned sales people, split the group over two days.Now you could chose to allow other people this task to free up managers for higher People need to know you are serious aboutto fill your bucket with things that may seem value tasks). maintaining a schedule of reviews everyimportant to them but are really not on the month, so pre-appoint for next month and lettop of your priority list. Or you could first fill Areas that should be receiving attention, like the sales person know exactly what day nextyour bucket with those things that are most recruiting, are often not specifically assigned month and what time they will be meetingimportant to your success today. The bucket to any one person, yet it is the life blood for with you again.represents time. Its limit of capacity is the 24 continually upgrading your sales staff. Whohours we each have to work with daily. handles the daily one-on-one’s, the daily A scheduling template is the best way to training? Many of these large rocks (tasks) help you fill your bucket with the large rocksThe bucket can become so full of little get pushed aside because too many small first allowing you to complete the repetitivemeaningless tasks that get you no closer to rocks (tasks) get into your bucket and at the tasks required to run the dealership andyour goals. The first thing you must do is end of the day … well you just ran out of create ample time to accomplish the mostplace the large rocks (important tasks) into room and time. important task, sell cars every day!the bucket, then place in the smaller rocksas room allows. If some of the smaller rocks Break your tasks list into three categories, Believe.(tasks) won’t fit into today’s bucket, they daily, weekly, monthly.will then need to go into tomorrow’s. Daily events include save-a-deal meetings,The first step toward taking control of your one-on-one’s with sales people, assisting Kirk Manzo is the general managerschedule, your job and your life is to accept F&I with CIT issues, reconciling with the at Ziegler Supersystems. He can bethe reality that you will never finish ALL back office to make sure we are getting paid contacted at 800.858.6903, or by e-mail atthe tasks you want or need to do every day. for what we already sold, etc. These events kmanzo@autosuccess.biz. SUMMITIII November 3 & 4, 2005 MGM Grand BEST PRACTICES Las Vegas, Nevada Dealers & Managers Only See page 3 for more details 16
  13. 13. MichaelYork If Your Business Closed Today, Would Anyone Really Notice or Care There’s just no place Not everyone has 2.7 billion to throw at that range from slow to terrible, the facts say like Las Vegas. Seems a giant hotel/casino/golf resort … or at a otherwise. no matter how many dealership in Chattanooga, but everyone has times you’ve been ways of making the customer feel special for If there’s nothing very special about your there; there is still an doing business here. work or the value or service you provideexcitement or anticipation when you make then you’re lumped in with all the otherthat next trip. Flying into that oasis that still Here’s the formula: roadside “motels” of the world in the eyeslooks like a mirage in the desert is great. Whatever you sell is boring. And whatever of the customer. And if another one of them I sell is boring. Unless you or I make it goes out of business today, would we reallyWhen you see the strip and all those giant remarkable in the eyes of the customer. notice?hotels and casinos, isn’t the first thing that Unless the emotional experience they’repops into your mind something like “What getting makes the money they spend less But what if Starbucks or Harley DavidsonLas Vegas really needs is another giant important than the experience or the story or Disney World or Las Vegas closedcasino?” they can’t wait to tell about you and how tomorrow? Would anyone notice? you did it.No? Well that’s exactly what Steve Wynn You bet. And that’s the very reason it won’twas thinking. And his vision is now a reality happen anytime soon. Because people noticeamong all those other big name, big dollarproperties. Here’s the and love spending their money there. What makes you special or cool or valuable or formula: remarkable in the eyes of the buyer? AndThe slick, black, wrap-around look of TheWynn hotel, casino, shopping mall and golf Whatever you sell if you can’t answer, that’s a great place to begin your radical improvement.resort is the new color in the Vegas rainbow. is boring. AndAnd even that doesn’t do justice describingit. It’s almost beyond description. whatever I sell If all you’re doing is selling cars it can be all about price. But the feeling I get driving is boring. Unless around Las Vegas in my convertible with theYou have to see it to believe it, and even thenit’s enough to stretch your belief system. you or I make it top down and the sun winking at me from all those big shiny buildings doesn’t leave muchEvery big name boutique you’d hope to find remarkable room in my imagination to remember how in the eyes of thefrom Rodeo Drive to Fifth Avenue has a much I paid to be here. Even if I can recallspot on the Wynn walk of famous shopping. the number, it’s a small price to pay for thisPeople stand and gawk at a giant wall of waterin the gardens, and what it costs to furnish all customer. “emotional experience” that I couldn’t wait to tell someone about. And now I have.the fresh flowers inside the hotel would beenough to build most three bedroom houses. Las Vegas knows the secret to this “NOW” The reason the rich keep getting richer, as economy. So does Steve Wynn. So do they say, is because the rich keep doing theIt’s HUGE with a capital HU! Starbucks and Harley Davidson. So do things that win in any economy, and the poor(Hint: There’s a Ferrari dealership inside it.) Oprah and Jimmy Buffet. So did Elvis. (read: ordinary or average) keep doing the Do you? not-so-special things that nobody’s reallySo why another casino in Las Vegas? It’s noticing. How excited are your customersobviously not just another casino or hotel. Are you creating an amazing experience about what you do and how you do it? WantIt’s an emotional experience that people for the prospective buyer who is almost some better questions on how to improvecome to see and feel and tell others about. always first a prospective looker? Are people your “show”?If you’re coming here you can save big walking around talking about coming backmoney by staying at an older giant hotel or here to be a buyer? No one at The Wynn If you want my short list on “Wynning”some chain we’ve all heard. The rooms are is trying to stop the “lookers” from leaving in this “NOW” economy, visitclean, OK, good price, practical, etc. Sound without checking in today! Are you still www.MichaelYork.com/autosuccess.familiar? Low mileage, solid transportation, worried about selling your “lookers” todaygood price. instead of creating such an attractive “show” that they can’t wait to be back … and buy!Where’s the emotional experience at your Michael York is an author and professional speaker. He can be contacted atplace for the consumer? Are they excited This is the most sophisticated marketplace 800.668.5015, or by e-mail atabout becoming a customer? What will they we’ve ever known. And while rumors and myork@autosuccess.biz, or visitsay about you when they tell their story? excuses lament today’s economy with labels www.MichaelYork.com. 18
  14. 14. august 2005 19
  15. 15. fs feature solution BenElliott The Real Deal Pre-approval SaleDirect mail has been around for some General’s office a few weeks later about the Under the new laws, with no firm offertime and remains one of the best ways to validity of the pre-approval offer turns a bad of credit, pre-approval sales have createdfill showrooms with people. At first, mail sale into a potential nightmare. problems for dealers around the country.piece recipients were chosen by zip code or Fortunately, there are now programsdistance from the dealership. Through the In reaction to these issues, pre-approval sales available though partnerships betweenyears the selection process has become more are changing. Compiling the list of people direct mail companies and lenders that canprecise. Dealerships now select recipients who are to receive a pre-approval mail piece truly grant legitimate pre-approvals. Everybased on income level, lease termination is now done differently. Customers are still customer that receives a pre-approval letterdate, college graduation, bankruptcy, home selected based upon their credit, but now is approved. By utilizing a pre-approval saleownership, and most important, credit. Credit more care is taken to make sure that all program that truly guarantees the approvals,allows a dealership to only send mail pieces required credit criteria for approval are met. dealers can not only eliminate headaches, butto customers that fit the financing programs In bold print the mail pieces now clearly sell far more vehicles to far more people.available to the dealership. Moreover, mail state income requirements that may affect Finally a real pre-pieces can be designed with offers that the pre-approval.appeal to the selected demographic. Theoffers made in mail pieces have become approval sale wheremore and more aggressive attempting to Over the past 30 they really buyconvince customers to visit dealerships. years of running the paper! UntilPre-approval sales have grown in popularity some of the largest now, nobody hasover the last several years. Dealers have GM and Ford guaranteed to fundblanketed their markets with mail pieces operations in the every contract thatbearing messages like, “Bad Credit, country and as a walks through theDivorce, No Credit, No Problem. You arePRE-APPROVED at Somewhere Motors.” dealer myself, I door with a pre-These messages are extremely appealing to have used every approval mail piece.the credit-challenged, and many respond. direct mail company - Robert Register, Tony MooreUnfortunately, a high percentage of these in the nation … if I Automotive in Huntsville, AL. haven’t used thempeople who were lead to believe that theywere pre-approved are no longer approvedwhen they reach the dealership. This is I have at least been A second benefit of a real pre-approvalcounterproductive for everyone involved. pitched by them, sale is the additional sales and gross profit.The customer is upset because he/she wasted and I have Þnally Consider a 5,000 piece pre-approval sale$10 in gas and his day off to visit your store. without a firm offer of credit. If 2 percentThe sales person is upset because him/her found a real pre- of the people who receive the mail piececustomer couldn’t get approved. And you, approval sale with visit the dealership, there will 100 ups.the dealer, just had 100 people in the store 300up Promotions. Unfortunately, only half will qualify, sofrom a 5,000-piece campaign and less than even with a 25 percent closing ratio on thehalf even qualified to buy a car. This is not - Earl Hudson, Earl Hudson Buick 50 qualified ups there will only be 12 sales.where it ends. A phone call from the Attorney Pontiac GMC in Shelbyville, TN. Now consider the same 5,000 piece pre- 20
  16. 16. approval sale with all 5,000 pieces going topeople who qualify. With the same 2 percentreturn and the same 100 ups, the results aredoubled. Now all 100 ups are guaranteed toqualify, so closing 25 percent will now resultin 25 sales. Using an average gross of $2500per copy, the guaranteed pre-approval salewill gross $62,500. That is an additional$32,500 over the pre-approval sale without 5000 Piece Mailerthe guarantee. Traditional Method When choosing a Ups company to partner 100 with for direct mail, Ups that the three most import Qualify 50 things to consider are. 1. The validity and Sales at 25% legality of the offer; it Close 12 is important to have a 0 10 20 30 40 50 60 70 80 90 100 real deal pre-approval sale. 2. Customer service is king. A partner in direct-mail marketing Improved Method must be able to respond quickly and Ups 100 effectively. 3. The price is also Ups that important. The better Qualify 100 the price, the greater return on investment. Sales at 25% Close 25 - Keith Sheldon, GM Courtesy 0 10 20 30 40 50 60 70 80 90 100 Chevrolet Sonic Automotive Group in Atlanta, GA.By partnering with a direct mail companythat can guarantee the approval of everycustomer that walks into your dealership Gross ProÞtholding a mail piece, your dealership canavoid the problems created by the new laws Traditionalgoverning pre-approval sales, sell more cars Method $30,000and improve ROI at the same time. ImprovedBen Elliott is the president and CEO of Method $62,500300 Up Promotions. He can be contactedat 866.319.7337, or by e-mail at 0 10 20 30 40 50 60 70 80 90 100belliott@autosuccess.biz. Thousands of Dollarsaugust 2005 21

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