AutoSuccess Jul05


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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

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AutoSuccess Jul05

  1. 1. Read this month’s and previous issues online at .biz Getting and Managing Leads - Success on the Interneta division of Systems Marketing, Inc. July 2005
  2. 2. The next REVOLUTION is here. Sales Catalyst™ is an integrated approach that combines consulting and support with a custom solution of services and training. Measurement and Monitoring Services Maximize the return on your marketing dollars Sales Enhancement Services Capture every lead you generate Marketing Enhancement Services Drive your customers back into your dealership Professional Development Services Boost your staff’s sales performance Call 1.866.579.9999 to schedule a consultation with your local Who’s Calling rep or visit us at For a limited time, sign up with Who’s Calling and receive a FREE iPod Shuffle. Contact your local Who’s Calling rep for more details.
  3. 3. 8 The 80/20 Rule In Selling BrianTracyINSID Sales From 40 to 500 per Month 9 What It Takes to Increase Your Performance Criteria Takes Internet Sales to the Next Level Your Only Real Competition Leadership Amid Change 10 12 13 RadWeaver DavidKain AnthonyHall SeanWolfington Prove It 14 ChrisHanson Optimize Sales ... Just A Click Away 15 RandyBarone The Art of the Business Manager 16 TonyDupaquier Getting and Managing Leads - Success on the Internet 18 BrianAnkney Maximize Your Internet Sales 20 PaulAccinno Loosen Up, It Keeps Grumbling Down 22 TomGegax Who’s Under Fire 24 CarolMartin The Powerful Sales Person 26 MarkTewart Value Selling 27 JimAdams Full Price is a Fair Price, Part 2 28 KirkManzo Assessing Your Abilityto Read Body Language 30 PattiWood Hi, I’m Pushy and Obnoxious ... Wanna Buy Something 32 MichaelYork How to Attract Quality TrafÞc 34 ScottJoseph Isaiah 40:31 “They will soar on wings like eagles.” 3411 Pinnacle Gardens Drive Louisville, Kentucky 40245 Burdens are God-given, leading us to ! Toll Free: 877.818.6620 " Facsimile: 502.588.3170 wait upon Him. Once we have done so, Patrick Luck, Editor & Publisher • the burden is tracsformed into a pair of Susan Givens, Vice President wings through the miracle of trust. The • one who was weighted down “will soar Courtney Hill-Paris, Sales-improvement Strategist on wings like eagles.” • Brian Ankney, Sales-improvement Strategist • Psalms 82:6 Thomas Williams, Creative Director “I have said, Ye are gods; and all of • God Bless America Matt Marshall, Sales-improvement Specialist you are children of the most High.” 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 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. BrianTracy The 80/20 Rule In Selling You have heard of the Set that income as a goal and work toward This strategy could save you years of hard Pareto Principle, the achieving that level every day. work. 80/20 rule, which says that 80 percent of the Second, go to one of the top sales people Brian Tracy is the chairman and CEO sales are made by 20 in your field and ask for advice. Whatever of Brian Tracy International. He can be percent of the sales advice you get, act on it immediately and contacted at 866.300.9881, or by e-mail atpeople. Depending upon the sophistication report back, asking for more advice. the industry and the level of training,the ratio can be 90/10 or 70/30, but in largenational sales forces, the 80/20 rule seemsto hold true. Twenty percent of the sales DEALERS MUST BEpeople make 80 percent of the sales andearn 80 percent of the commissions, while80 percent of the sales people make only20 percent of the sales and share only 20percent of the commissions.What this means in dollar terms is shocking!If 10 sales people are making a total of $1million in sales in a given period, this meansthat two of the sales people are making ON TELEVISION!$800,000 dollars of sales and eight of thesales people are making $200,000 dollars See why over 100 dealers nationwide haveof sales. This is a ratio of 16 to one. Thetop sales people are out-selling the bottom INCREASED SALES MORE THAN 30% INsales people by 16 times! This difference insales results cannot be explained simply by LESS THAN 90 DAYS WITH TELEVISION!sales technique and methodology. There issomething else going on, and that something We produce nearly 4,000 commercialselse is the mind-set or psychology of thesales person. a year from our studios. We give you unlimited, high quality television campaignsIn every large company, there are sales and promotions FREE. With computerizedpeople earning $25,000 per year and thereare sales people earning $250,000 per year. media buying technology, we buy television asThey are selling the same product, to the much as 30%-40% more effectively than anysame people, at the same price, under the media buyer in the nation and give yousame competitive conditions, into the samemarket and out of the same office. Yet, one UNLIMITED TV CAMPAIGNSof them is selling and earning 10 times theamount of the other. AND PROMOTIONS! Call for a FREE demo tape and information.Is the person earning 10 times the amount ofthe other working 10 times as hard? Is he orshe putting in 10 times the number of hours?Does he or she have 10 times the level ofeducation? Does he or she see 10 times the Larry John Wright, Inc.number of prospects? Is it possible for thehigh-earning sales person to be 10 timesbetter, in any area, than the person earning Automotive Advertisingone-tenth as much? Of course not. “America’s Premier Automotive Advertising Agency” 1-800-821-5068Here are two things you can doimmediately.First, determine the income of a sales personin your field who is in the top 20 percent. 8
  5. 5. RadWeaver What It Takes to Increase Your Sales From 40 to 500 per Month In one month, Red many of the other industry Web site providers. • Number of visitors to your Web site McCombs increased Still, we were failing to generate results. When • Conversion ratio (this is the percentage sales from 40 to 500 by we made the switch, our conversion ratio shot of visitors that convert into leads) utilizing a new digital up to 10 percent and even reached as high as • Closing ratio (percentage of leads marketing strategy. 15 percent—which translates to a 500 percent that turn into sales. This is driven by Gross profit increased increase in leads. The lesson here? Abandon other metrics including quick responsefrom $60,000 to $750,000 per month, and what has proven to be unsuccessful and sign times, high appointment and high showclosing ratio rose from 3 percent to 19 percent. with a Web site provider who’s capable of ratios.)When dealers ask how we increased sales so converting visitors into leads. • Average gross profit drives the monthlydramatically, we answer that we increased our and annual profits.volume by changing the way we advertise, 5. Define your Internet Marketing • Cost per sale by lead source includingmarket and sell over the Internet. Strategy: To increase traffic to our virtual your Web site and third-party lead dealership we built an Internet marketing providers.The top 8 tips for extra Internet sales: strategy that includes high-end, animated,1. Leadership commitment: The Dealer, bulk e-mail campaigns. We’re able to launch ConclusionGM and entire management team must and execute a targeted marketing campaign We went from 40 online sales to 500 andbecome involved and committed from the that is quick, easy, cheap and measurable. lowered our cost per sale after switchingbeginning. We found it helpful to bring in an from a templated Web site. We have increasedoutside consulting company to facilitate our 6. Recruit, hire and train the right people: gross profit from $60K a month to more thaninitial strategy meetings. By studying the industry’s most successful $750K with our new digital marketing system. Internet sales staff, we learned that it’s The best way to increase market share in2. Define your Internet Sales Model easier to teach technology to a great sales today’s highly competitive retail environment(Internet Department vs. centralized person or to someone who’s a superstar on is to implement an Internet marketing strategyCRC) and support it: Depending on the size the phone than it is to teach sales skills and alongside a CRM program.of your dealership or dealer group, you may phone skills to someone who’s a technologyfind that a dedicated Internet department is the whiz. We then created a profile and a clearly Tips for eCommerce Successbest way to handle lead volume. Or you might defined job description for each position • Create a detailed plan for usingchoose to set up a Customer Relationship within the department, so that when lead eCommerce and CRM to improveCenter (CRC) that handles all inbound phone volume increases, we’re prepared to bring business.and Internet traffic. We debated the pros on additional staff. Fortunately, our digital • Invest in technology that attracts moreand cons of each model, made some tough marketing system automates much of the opportunities and encourages long-termdecisions, clearly defined our strategy, and process, which means that we can handle accountability.moved forward. We support our decisions more leads with fewer people. • Increase marketing through advancedevery day with the right budget, the right search engine placement and bulkpeople and the right tools. 7. Clearly define each step of your Internet e-mail marketing. Sales Process: The process is very important • Use referral services that track cost per3. Track your cost per sale: Like most because if you have a lot of leads but you sale for all sources. Create a Web sitedealers, we rely on third-party providers for don’t have the process to turn those leads with leads that have a higher closingsome of our Internet lead volume. Because into sales the department will not succeed. ratio than other lead sources.we use our CRM tool to track and measure To implement the right process, you first need • Recruit people with previous automotiveall of our performance results, we know that to define a process that incorporates proven sales experience who have great phoneour closing ratio for leads that come from our best practices. The second step is to train the and follow-up skills and proven CSI.own Web site is 20 to 25 percent, compared process. The third step is to use reports to • Create an Internet process that turnsto 10 to 15 percent for leads that come from monitor and measure the process. The last leads into appointments and sales. Givethird-party providers. Therefore, our goal is step is to use the reports to identify problems your team more time to set appointmentsto ensure that the majority of our leads are and opportunities to continuously improve and sell cars.coming from, and the process and the results. This approach will • Create a pricing philosophy that isthat we only use lead providers who give us help you make smarter decisions and target competitive that also preserves grossa clear return and can keep our cost per sale your training to ensure positive growth. profit.around $200 per vehicle. • Implement, measure and manage 8. Manage and measure your performance information needed: leads by source,4. If you’re not getting results from your results: The best part about Internet marketing response rate and time, appointmentWeb site, partner with a provider that is that everything is measurable if we use the percent, show percent, closing percent,can deliver: The quality of a Web site can reports to which we have access. This has been cost per lead and cost per measured by its conversion ratio, which key to our ability to grow our sales from 100 toindicates how well a Web site converts 500. Fortunately, our reports are automaticallyvisitors into leads. Averages range from 1 to 3 e-mailed to us daily, weekly and monthly Rad Weaver is the director of eCommercepercent, and before making the switch to our which makes it easier to identify issues before for He can benew site, we struggled to improve our average it is too late at the end of the month. The most contacted at 866.210.2838, or by e-mail atby improving our templated Web sites from important numbers are the following: 2005 9
  6. 6. DavidKain Performance Criteria Takes Internet Sales to the Next Level The Automotive everything, except where it matters most Set a standard that each person in the Internet as a marketing – the Internet sales specialist. department has to achieve certification tool for dealerships from the manufacturers you represent, started in the mid ’90s Performance criteria elevates the entire as well as ongoing knowledge of your and has developed into Internet operation pre-owned inventory. the preferred choice Assuming you have selected the rightfor consumers to start the vehicle-buying people to work in your Internet department 2. Process knowledge proÞciencyprocess. you will find yourself having much better During a conversation with an Internet results if you start out with clearly outlined customer your Internet sales specialistIt is no wonder customers prefer this method performance criteria. By having a bar set will be asked a number of questionsfor car shopping. It gives them control and high for performance you will find people about the processes in your dealership.allows them to decide when they interact with trying to reach the level you set and then How do you value my trade? How doa dealership. Technology gains have come as some. Most of your sales staff needs you arrange financing? Having a scripta result of one-up-man-ship with everyone constant motivation to stay focused and goes a long way in preparing for thesetrying to outdo the other in the quest for the setting standards of performance allows contingencies. But a better method iscustomer’s attention with the ultimate goal of them to know on a continuum what it takes for your specialist to really know howa request for price or information from the to succeed. Just like we have standards on things work. If the customer detectscustomer. With multiple photos, 360 views, the sales floor for salespeople to meet, we your staff is not aware of how thingsvirtual test drives, trade evaluators, payment need to have them in the Internet department. work and, more importantly if, you haveestimators and so on, we have convinced When I work with dealerships I ask the floor not prepared your staff with scripts onthe customer that everything can be done salespeople what is expected of them and how to address process questions youonline. In fact, it has become so easy for they typically respond with “I need to sell at are likely not going to see the customercustomers to shop online, one could make least 10 vehicles a month with a close rate on your showroom floor. Set criteria fora case that all goes pretty smooth until the of 20 percent from floor traffic to keep my your staff on how to address processactual involvement at the dealership level by job.” If you only used this simple formula for questions and practice their responsesan Internet sales specialist. your Internet sales team you would be ahead each month to keep them qualified to of many dealerships. However, if you really work with your Internet customers.Could the Internet sales specialist actually want to make your Internet department rockbecome an impediment to your customer’s you have to expect a great deal more. 3. “Kept” appointment objectivesonline purchase? (percent of total leads) To sell vehicles you have to get theImagine the customer cruising along Once the customer into the showroom. By settingonline, researching the vehicle he or shewants, checking out available inventory, performance criteria a performance standard for this criterion when you bring people in to staff thedetermining the value of the trade in, are established, Internet department you clearly establishchecking out financing options and deciding set up your what is necessary for them to succeed inthe timing is right to submit a lead. When thecustomer decides to click the submit button measurements, this position. Set a goal of 30 percent in this area and measure their results. Ifone can assume the customer would expect reward good they meet their goals then reward them,the offline part of the process to match the performance and and if they don’t then evaluate theirease and efficiency of the online process. Atleast that is what is advertised on the site with adjust and train efforts, provide the necessary training, tools and encouragement to stimulatethe “no hassle” and “easiest way to buy a to stimulate better better results. Most importantly, ifcar” statements prominently displayed on the results. they don’t measure up after you haveWeb sites of dealers, manufacturers and lead invested the effort in them, move themproviders. Unfortunately, once the customer along and bring in the next candidateclicks the submit button, things tend to get a The following is an example of what high until you find one that fits.bit off track. achieving Internet departments establish for their Internet sales specialist performance Measure, reward and adjustIn the last decade we have seen a great deal of criteria: Once the performance criteria are established,technological advances that have propelled set up your measurements, reward goodthe automotive Internet business forward. 1. Product knowledge proÞciency performance and adjust and train to stimulateDealerships are more prepared than ever to Online consumers consistently express better results.greet the customer electronically and service disappointment when they interactthem in a manner that meets their every need with a sales professional who does notwith one exception: A well-prepared Internet know their products inside and out. To David Kain is the automotive Internetsales specialist! For whatever reason we spent address this issue an important criterion training specialist at Kain Automotive Inc.time, effort, energy and money developing for working with Internet customers is He can be contacted at 800.385.0095, orbetter Web sites, better lead handling tools, to be a product knowledge “expert.” by e-mail at, orbetter lead providers – just about better This means both new and used models. visit 10
  7. 7. Are you tired of struggling to train salespeople? Burned out from chasing untrained salespeople around? Revolutionary Distance Learning Program: “Puts Sales Training on Auto-Pilot So You Can Sell More Vehicles!”“We use Mark Tewart’s Would you like to be able to train your salespeople to properly sell more vehiclesDistance Learning Program without all the hassle usually involved? Do you have the time or patience to spend endlessly training new salespeople how to sell or retrain old dog’s new tricks?every day and our sales andgross proÞt keep going up If you’d like to have complete control over your training process, regardless of your schedule, how much business you do or don’t have or any other condition and putbecause of it.” an end to the endless grunt work of training, keep reading.Chad Hawkes, Dealer Do you get tired of sending salespeople to the latest and greatest feel-good, rah-Hawkes Motor Co. rah seminars that give your salespeople the Sunburn-Effect? You know what I’mPryor , OK talking about, the salespeople get hyped-up but it wears off after two weeks stuff that leaves their heads and their wallets empty. If you would rather be able to have your salespeople trained everyday automatically“We love the training, it’s and have a built-in accountability tool to gauge the training and evaluate thesimple, effective and this salespersons results from the training, Well, It’s finally here!has cut our training costswhile increasing our skills Distance Learning Program from Tewart Enterprises This new technology allows your salespeople to train from any computer withand sales. The bottom line is speakers and an internet connection 24 hours a day - 7 days a week. Plus it allowssimple, THIS WORKS!” you to hold the salespeople accountable for when and if they did the training!Ernie Parisi, Manager Increase Sales, Profits and Customer Satisfaction,Bradenton Hyundai While You Also, Decrease Costs, Hassles and Wasted Time.Bradenton , FL That’s not all - No Contracts, No Commitments, and No Problems! For More Information and a Simple Demonstration:“Frankly, this is a no- 1. Call our office at 888 2 tewart (888-283-9278)brainer. The information 2. Email us at info@tewart.comis Þrst class. It’s simple to 3. Fax a copy of your business card with the worduse, convenient and we training written on it to 513 934-4588have increased sales by P.S. Contact us by July 20th and receive a Free Special Report: “How to Recruit,20 vehicles a month and Hire, Train and Dream Team of Salespeople”increased gross proÞt by$200 per car. It’s not by P.P.S. BONUS - The first 10 people to sign up for this revolutionary training from this notice will receive Mark Tewart’s NEW DVDaccident”Seth Silger, General “HIGH PERFORMANCE SELLING”Manager With Over 6 Hours of AWESOME information. - A $597 Value for FreeWard Chrysler P.P.P.S. For a Free newsletter go to: and click on subscribeCarbondale, ILTewart Enterprises Inc.1999 Kirby Rd.Lebanon, OH. 45036888 2 Tewart / 513 932-9526email: info@tewart.comweb:
  8. 8. AnthonyHall Your Only Real Competition The only competition with feeling uncomfortable and doing what mental barriers that were preventing him you truly have is hasn’t been proven yet. from engaging in the activities that yield the yourself; in other greatest return. Steve put together a routine words, your beliefs To illustrate this point, let’s look at the story of that outlined the measurable activities he or outlook, your Steve. Steve is a sales person at a dealership needed to engage in on a daily basis. Such mindset and way of in a competitive northeastern market. He as 20 minutes a day committed to salesdoing things are your competition. Some of had a hard time with consistent sales and training, attitude development and productyou may already embrace this notion. Let’s profit on a monthly basis. Like many sales knowledge. He also set up daily goals andexplore it on a deeper level. people he would have inconsistent grosses things to do to track his productivity. and unit volume. He didn’t really have aThere are several words synonymous with specific sales process laid out. He wasn’t The result? Steve increased his unit volumecompetition. They are struggle, resistance, organized and didn’t adhere to any type by 30 percent and his grosses by 50 percentdisagreement and conflict. “Competition” of daily routine. Sound familiar? “Sales in just a few months.implies one side working against the other. are tough,” he said. Steve felt his vehicles were just like any other vehicles. As such, So the question is, did his outsideThe two competing sides that I’m referring his typical approach was to try to sell on competition change during this period ofto as it relates to each of us are as follows: price, rather than value, making it even more time or disappear from the market? DidThat which you are comfortable doing challenging to produce the results he and his the economy dramatically turn around? Didand that which you haven’t done or tried dealer wanted, especially since they weren’t his vehicle demand suddenly skyrocket orconsistently yet. the least expensive option. become more unique?In truth, you are really competing against Steve spent a few weeks in training and put Steve accelerated to a higher level ofwhat you did yesterday. You’re competing together a process he was comfortable with productivity because of the work he didagainst the status quo; you’re competing based on new knowledge and a solid process. and the focus on things that he can control,against feeling and doing what’s predictable He upgraded his mind set and removed some which is the path he chose to take as it relates to his development and daily activities. Steve embraced his biggest competitor which was himself. He turned this adversary into his greatest ally. For example, he Keep your customers started bringing in new business through prospecting, and instead of thinking that every prospect you meet with is a potential for just pennies a day. sale for you to win, consider that every sale is already yours for the taking. Therefore, each sale is yours for you to lose; not to your competition but to yourself based on how well you develop and manage your selling process. Loyalty DriverTM by . The next time you run up against some is email marketing made resistance when selling, remember Steve. Remember who your competition really easy. Your own customized is and embrace this as an opportunity to e-newsletter with profes- refine how you approach selling and your sionally written content prospects. Compare your progress today and sophisticated report- against what you did yesterday, not against what others are doing. This is the only ing including our unique accurate measurement of your growth and buy signal allowing you to evolution. After all, once you get yourself out know when your customer of your own way, that’s when extraordinary things start to happen! is ready to buy. CONTACT US TODAY Anthony Hall is a training consultant at 866-964-NEWS (6397) ext.214 at Ziegler Supersystems. He can be or email us at contacted at 800.610.9047, or by e-mail at 12
  9. 9. SeanWolfington Leadership Amid Change 1-888-Get-A-Car Leadership is about When a clear vision has been communicated dealing with change. throughout the dealership, employees on the As the automotive front line can take initiative in situations, industry becomes without the fear of reprimand. Furthermore, more competitive and when everyone’s vision is aligned, one & complex, leaders that person’s initiative is less likely to come intocan thrive in an environment of change, conflict with another’s initiative.stand out from the pack. In our rapidlyevolving world, the true leader thrives in an Motivating and Inspiring Peopleenvironment of change. Leaders motivate and inspire people. They keep people moving toward theThe leader proves his or her worth by: organization’s vision by appealing to basic • Creating a vision human needs, values and emotions. • Aligning people • Motivating and inspiring people If leadership is dealing with change, then • Creating a culture of leadership being able to motivate people is crucial. It is important to cope with inevitable barriersCreating a VisionLeaders develop a vision of the future andcreate strategies to fulfill that vision. to change. Successful motivation ensures that people will have the energy to overcome Only One Dealer Per Market obstacles.Vision and strategy are not the same as Leaders motivate people in a variety ofplanning. Planning is a management process ways. They articulate the organization’s Call Now for Exclusive Rights Detailsdesigned to bring about order, not change. vision in a manner that builds on the valuesPlanning should be a compliment to creating of the audience they are addressing. Leadersa vision, not a substitution for it. regularly involve people in decision-Vision does not have to be original. However, making processes on how to achieve the organization’s vision. Leaders recognize and View TV Spots atwhat is crucial is how well it serves the needs reward success. Through these methods, the customers and the dealership team. The work can become motivating. Programs Includesuccess of the vision depends on how well itcan be translated into a realistic competitive Creating a Culture of Leadershipstrategy. If a leader lacks the skill, time or Some organizations develop their employeesknow-how to plan a realistic and competitive into leaders by providing training, challengingstrategy for implementing his or her vision, goals and objectives along with a wide range Leads, TV Spots, Lenders,that’s OK as long as they have a partner, a of opportunities for new employees as well Advertising Assistance, Trainingteam of managers or a consulting team that as seasoned “veterans.”specializes in planning for results to bring the for your Special Financeleader’s vision to life. A solid recruiting, hiring and training process Department, Bankruptcy can provide a great start to your dealership’sAligning People leadership development program and Mailer SoftwareLeaders align people. They communicate encourage growth. In order to develop peoplevision so that people understand and are for higher-level leadership positions, currentcommitted to it. leaders might make the successes of othersA central feature of the modern dealership more visible to senior management and theis interdependence of each department, and dealer. Companies that create a culture ofan individual’s success is increasingly tied leadership also recognize and reward peopleto the work of other individuals. Aligning who successfully develop other leaders. STOP Paying per Lead!people to move in the same direction is achallenge of communication and credibility. If we need more leaders in the increasingly One Flat Rate ForThe message must be communicated to complex and competitive automotive industry, we need our current leaders to UNLIMITED LEADS!all involved: general managers, salesmanagers, BDC managers, used car develop cultures that foster leadership.managers, service and parts managers, Creating a culture of leadership is intrinsically Get A Car, managers, service writers, sales an act of leadership. 800.790.1212people, BDC specialists, receptionists, Joe Perot - Presidentgreeters, etc. After the team understands Sean WolÞngton is the owner ofthe message, they must believe in it. He can be contacted at email: 866.802.5753, or by e-mail at www.getacar.comSuccessful alignment empowers people. swolÞ 2005 13
  10. 10. ChrisHanson Prove It Why is it that some What should you have in your evidence Letters, Thank You Cards and Customer of the easiest things manual? Surveys to do are the most Anytime you receive a letter or card from overlooked? I think Articles a customer put it in your evidence manual. it’s because they are Gather up articles from Motor Trend, Car & When you have customers that give you a so simple that we Driver, Road & Track, newspaper articles, 100 percent on your CSI and write a few linesdon’t think they would make a very big etc., that talk about your product. MSN has about you, put it in your evidence manual. Idifference. a great Web site, click on Auto and read the have a bunch of letters and cards I put on my ratings and reviews and print them to put in bulletin above my desk and customers areTake, for instance, an “evidence manual.” your manual. Then create separate sections always reading them. They’ll say “That’sHave you ever noticed how someone can for each make and model you sell and put my neighbor “or” that’s my relative. I didn’tforward an e-mail and it can travel around all the articles you can find in each section. know they bought a car from you.”the world and hundreds of people will take Take the time to read every article and as youit as fact? Why is that? Because they read read, highlight the parts that you want the Information about youit. When it’s in print, it always seems to be customer to read. “The most powerful truck Here you can put in pictures of you and yourfact. Let’s talk about how we can use that on the market...”. Also, make sure and talk family, pets, etc. awards you have receivedto our benefit. Let’s gather information that about some of the things that the magazine and any community activities you are involved in. A brief bio on yourself is a goodwe can use to prove what we have said. is talking about so when they read one of the idea, too. What do you like to do, and whatInformation that will put the customer at articles later, they say, “Look, just like Chris are you involved in for fun?ease. An evidence manual is a powerful was telling us, this is the most powerfulsales tool that must be used every time you truck on the market.” Always look for new When should we use our evidencetalk to a customer. articles to add. manual? Anytime the customer says he or she is going to look at a competitive model, flip through your manual and show them the facts. Whenever you go out to find a vehicle to pull up for the customer to look at, open the manual to the section for the car at which they are looking and say, “I’m going to find that truck and pull it up for you. Here’s an CONSIDER THE IMPACT article that I know you would be interested WLS Lighting Systems in.” What about when you are driving the Manufacturing poles and fixtures since 1969. trade-in? Wouldn’t it be nice if they were WLS is the only COMPLETE SERVICE MANUFACTURER serving auto reading an article that told them they were dealers nationwide with the finest technology and services available in making a smart decision? Or how about the lighting industry. The WLS Installation Program provides the auto dealer with all the when they are waiting for finance and might construction services required for a complete site lighting system. Our be a little nervous about their decision and comprehensive program from design to completion is the most cost- effective approach to your site lighting. read an article about how this is the best Services Include: Construction Services: truck on the market. • Site & Interior Lighting Design, • Project Management Photometrics & Engineering • City Approvals and Permits People are always reading and researching • Direct Sales to Dealerships • Concrete Bases, Wire Conduit, to find the facts. They are swayed by many • Free Site Surveys For Upgrading Controls and Asphalt Patching Your Existing Site Lighting • 3 Year Lamp Replacement Warranty medias, so take advantage of that. You can • Turn Key Installation Program on All WLS Installed Systems either provide it for them or let someone • Service, Maintenance, and else - its up to you. These articles are the Extended Lamp Warranties experts so let them tell their story. Make up WLS can make a difference an evidence manual today and let the experts in your overall construction budget and we guarantee help you close the sale. complete satisfaction. If you want to see what mine looks like, just e-mail me and I’ll send you a video e-mail that shows you how I have it set up. 4150 International Plaza Fort Worth, TX 76109 Chris Hanson with Hibbing Chrysler can 1.800.897.9517 be contacted at 800.901.2862, or by e-mail at 14
  11. 11. RandyBarone Optimize Sales ... Just A Click Away It’s a Saturday well. Overall, these tools boost reduction afternoon and a couple of wholesale loss, thereby increasing gross comes in looking for a profit and producing faster inventory turns, 4WD Ford Expedition enabling the dealer to gain more customers. with leather, 2001 ornewer, with less than 40,000 miles. You A dealer also can research how much thedon’t have one, but you’ve got a Durango dealership would have received from sellingand you know a Tahoe is coming in. Nope, a vehicle versus how much the vehicle wouldthey’re not interested. You lose the sale have sold for at a local auction. Dealers arebecause they’re ready to buy and you don’t now armed with data that helps them knowhave what they want. which vehicles make the most money so they can keep them in stock. The same dataWouldn’t it be nice to say, “Let me see what alerts the used car manager of vehicles thatwe’ve got in the pipeline.” You then type in historically have not performed well in histheir specifications and ask, “Would you like inventory.that in black, beige or silver?” The system especially works for dealersThat’s where the Internet is taking used who want to sell their used vehicle inventorycar wholesaling. The primary reason is online. Cars often can sit for weeks beforegreater availability of Internet access at the next auction, losing money. On the Web,the dealership level, as well as advances in cars generally can be sold in seven to 10digital photography that allow dealers to days -- more quickly than the traditionalreceive detailed images of the vehicles that auction process.are up for sale. The way to maximize the channel is for aAt any of the cyberlots, you’ll get three to five dealer to put a couple of computers in theperspectives. It’s the next best thing to being used car department and give associates thethere. In particular, the auction-supported access and training required to supply thesites require that sellers have close-ups to dealership with optimal inventory every day.disclose damage. Those are technological Tools now are available that assist dealersadvances that cause the audience to be more in driving intelligent inventory decisions,comfortable. Buying on the Internet is a resulting in optimum profits across thecost-saving, efficient way to buy cars that dealership sales operations.have guarantees, arbitration, pictures, andwell-described condition reports. Search auction Internet sites when traffic is slow. The knowledge that a managerIn many ways, the business-to-business gains by researching his or her market isused-vehicle market is a tremendous demonstrated through increased turns andopportunity for dealers who want to leverage better inventory mix at the prices his or hertechnology. Today, dealers are faced with the customers demand. Some dealers will bidchallenge of listing the inventory in the most on cars while doing a walk-around with aoptimal sales channel. These channels range customer. With proxy bidding, a buyer canfrom line ads in newspapers to Internet sites indicate what he is willing to pay, and theand straight lot inventory. There are now system will automatically make his or hersoftware applications that allow subscribers bids. This enables a buyer to get the bestto determine which inventory will produce possible price without exceeding his or herthe greatest profit if offered for bids online. price ceiling on a vehicle. You can’t do thatSuch packages allow dealers to determine on a lane.the amount of profit that they can expect,based on real-time sales data. These systemsalso can suggest a listing price to post on the Randy Barone is the executive vice president of sales at American Autoauction site, and dealers can easily manage Exchange, Inc. He can be contactedtheir listings throughout the auction process. at 800.901.3017, or by e-mail atTracking sales and profits is simplified, as 2005 15
  12. 12. TonyDupaquier The Art of the Business Manager Every customer of scoring customers, so all information themselves to be up sold by the sales people. who walks into a needs to be precise. For the customer’s Armed with the customer’s information, you dealership presents the employment history, provide the years and may have to suggest a different vehicle. opportunity to make a months, and if employed less than five deal. If the customer is years at the current job, get a minimum of What is the right car? The best vehicles are on the right car, then five years of employment history. The same current-year models, pre-owned vehiclesthe right amount of initial investment and the goes for the customer’s residential history. If that the lender will use like an invoicecorrect structuring will ensure a deal. That for some reason the person moves around a to determine the amount financed. Someis the art of the business manager: to make lot, you must find out why and if the person lenders will only allow 90 percent of thisdeals for customers who may not otherwise stayed in the same job field. Every lender invoice amount; however, anything isbe approved. is going to verify employment. With larger better than standard book values. Also, new businesses and corporations, this verification vehicles with larger incentives are alwaysThe two major challenges securing a deal process can be time consuming. Do some of good choices. You may have to switch awith a lender are credit and negative equity. the legwork for the lender. Call and speak to customer from a pre-owned vehicle to aIf it were not for these two elements, it would the HR director, and inform the director of new vehicle that the lender will possible to deliver 80 percent or more of what will transpire. Find out the best time for Some customers think they need to findthe people who walk into a dealership. the lender to call and maybe even coach the a very inexpensive vehicle to receive director on the questions that will be asked. financing. These inexpensive vehiclesMany customers will have some form of may have too many miles on them, or thecredit challenge. Identify the challenges and Income is another important factor. Even year model may only allow for short-termthen find good explanations for every one if the lender does not require a verification financing – raising the payment so high, itof them. Do not rely on the credit score to of the income, it is highly recommended blows the payment-to-income ratio, which,tell the story; you want the story from the that you provide one for every customer, in turn, blows the deal.customer. regardless of the person’s credit. Ask for a paycheck stub, especially from customers Based on your experience, the informationThis leads to the credit interview, which who receive an hourly wage. In most cases, you received during the credit interview andis essential for every business manager to customers make more then they realize due the loan value to ratio of the deal, you aremaster. There are three primary goals in the to overtime and their specific rate of pay. then able to talk initial investment. Lenderscredit interview: to find out what happened, In the event the customer does not have a look at the equity in a deal, regardless of thewhat has changed and why it will not happen paycheck or it does not accurately portray customer’s credit. With credit-challengedagain. Bad things happen to good people. the income, look for other avenues. Many of customers, the further back of book orThe story you receive from the customer today’s lenders will look at bank statements invoice you are, the better the chances are ofcan make a big difference when talking to for customers who are paid in cash or for receiving an approval. Even when the salesthe lender. You want this story up front so those who work for tips. However, the people tell you the customer has no moneyyou can inform the lender. Otherwise, the customer must have money in the bank for to put down, customers generally will put uplender will turn down the deal, and you this to be work. Debt to income and payment something when you explain the benefits ofwill have to call back to re-hash it. Get very to income are two major factors lenders look a cash investment.specific when it comes to past due accounts at when considering a deal, and they mayor accounts that have gone bad. If you see also determine if the customer is buying the Now that you have a story from the customer,collections on the credit bureau, find out right vehicle. you have the customer on the right vehicleif they have been paid and if they have and you have secured some form of initialbeen, that the customer can prove it. The Is the customer buying the right vehicle? investment, you should be able to structuresame goes with tax liens and child-support Some customers attempt to purchase a the deal so you can receive an approval orissues. Make sure to make copies of any vehicle that is too expensive, considering the at least some form of condition. The oldsupporting documentation the customer may initial investment they are willing to make fashion “throw it against the wall and seehave. In some cases, you may have to send and the status of their credit. At this point, the what sticks” works every once and a while;the customer to find this documentation. business manager has two options: submit however a good business manager will find aDoes the customer have credit references the deal and have it turned down or inform way to put deals together, not just send themthat do not show on the bureau? If so, do a the customer on what is realistic and put the in and see what check and send documentation to the deal together. You may need to start the car-prospective lender, allowing them to do a buying process all over again with a vehicle-direct check, as well. needs analysis to find out what the customer really needs from a vehicle. Lenders will Tony Dupaquier is the director of F&I training for American Financial &Verification of all the information on the look poorly at a deal if they think the Automotive Services Inc. He can becustomer statement is equally important. customer’s choice is unrealistic. Sometimes, contacted at 866.856.6754, or by e-mail atEvery lender has a slightly different way customers just want a new vehicle but allow 16
  13. 13. Secrets of Dealerships Who Overachieve – No One Else Will Tell You: • What the best “response generating” ads all have in common. • The three most important goals you will ever set for your dealership. • How to condition your current customers to buy from you more often. • How to create advertising that attracts quality customers who negotiate less. • How to out-market your competition and dominate your market. • What the ultimate goal of marketing should be today. • How to create advertising that actually increases your closing percentage.Special Free Offer: Call 866.856.6782 now and ask for Sarah to receive your free copy of the J&L MarketingUltimate Growth Strategy, featuring an actual case study of Johnson City Honda.You’ll discover the exact growth strategy and marketing plan created by J&L Marketing and used by Johnson CityHonda and read how, in just their first four months, they increased sales by 65 units per month and their gross averagesby over $1,300 per vehicle!866.856.6782www.jandlmarketing.commove the crowd. crush the competition. count the money.
  14. 14. fs feature solution BrianAnkney Getting and Managing Leads - Success on the InternetIn the nineties it was said that the Internet on his providers. Ben Freeland, owner of “We have a dedicated Internet departmentwas going to change the way cars were Freeland Luxury Cars says, “To measure that handles all of our leads. They aresold in the United States. Everything was ROI very simply look at the total number of equipped to respond to customer requestsgoing to be different. That is what the appointments set, number of appointments instantly and provide them with enoughretail automotive industry braced for in the that show, and number of vehicles sold. Next information to set the appointment”, saysearly nineties. Many were afraid and many divide the bill by the number of vehicles sold Freeland who feels a separate Internetthought it would not happen. Many today for the average cost per sale.” department is important.may think that it did not happen, but industrystatistics tell a different story. 2. What do you look for in a lead provider? According to’s Chip Perry, “Total Internet immersion seems to beDealers have reported that the Internet “A lead provider should provide a customer attracting more and more interest aroundaccounts for 25-35 percent of car sales, also for me to contact, nothing more. I do not the country. This model has an Internetagreeing that the Internet is driving phone- want them to contact my customer,” says manager with a staff handling e-mail leads,ups to the tune of 30+ percent. This puts the Perkins. merchandising online listings and doingInternet ahead of newspapers, television, careful reporting about what leads comedirect mail, and radio. For this article the According to Freeland, ”My ideal lead in and what results in sales. Customersfollowing dealers and providers have agreed provider is the one that keeps it simple! coming to the dealer through the Internetto help us see what makes them so successful Provide me with the number of leads are introduced to the floor staff for saleswith leads and the Internet; requested fed directly into my CRM system. and follow-up. The dealership’s entire staffBen Freeland, Freeland Luxury Cars, Allow me to control my settings for mile is thoroughly trained in handling InternetRalph Perkins, Patomkin Auto Group radius and lead volume. Finally, have quality customers, in particular their tendencyDon Graff, Flemington Car and Truck support personnel that will assist me in to do research before visiting the store.Country Family of maximizing my ROI.” This approach helps dealers serve all theDealerships customers who contact them as well asAnonymous Southeastern Dealer Group Graff wants his customers to be kept understand what advertising works best by informed; ”I would like to see it made clear clearly identifying the customers brought to1. How do you determine the value of to customers that they will be solicited. the store through the Internet.”leads from third-party providers? Do you Some customers are unaware that they willcalculate an ROI? be contacted and think they are signing up to Three common themes were apparent in the win something.” processes of all those asked; consistency,The only thing that every store agreed measurement and training. Dealershipson was that calculating an ROI for each 3. How does your Internet sales process that are successful on the Internet developprovider is important. Ralph Perkins, VP work? process for selling customers and followof Sales and Marketing at the Potamkin these processes consistently. They measureAuto Group, relies on his lead management ”First, the customer receives an auto their results and continuously work tosystem to provide him with daily reports that response and a call within 3hrs. The improve their processes. All employeestrack what sold and what did not. Each level customer will receive 7 or 8 calls in the first are trained to be effective in maximizingof management and department uses reports week and e-mails with specifics about their measure their success daily. Don Graff of desired vehicle. We will attempt 20 contactsFlemington Car and Truck Country Family in the first 30 days”, says Graff. 4. Has the timeline shortened? Do youof Dealerships warned that while monthly think that Internet leads are buying fasterstatistics are valuable to reward employees Perkins feels it is important for all customers now than Þve years ago?and set goals for departments, measurement to receive the same service, “We give allover a greater period is required to evaluate customers the same great experience, not According to Freeland, “I think they werea lead provider or Internet advertising just Internet customers. Customers have no always buying faster, the best Internetplacement. Graff feels that the market hoops to jump through to get the Internet departments are just now catching up to thefluctuates too much month-to-month and price. We don’t shy away from our Internet customers and increasing their closing ratesuses a six-month measurement to decide pricing.” and sales volume because they are more in 18
  15. 15. 5. Have Þlters improved the quality of thing is finding the right person.” leads? 7. What has been the greatest obstacle to Perkins feels as though filters can make or success on the Internet? break a deal with a lead provider, “I like filters. We have cancelled providers in the ”Finding an Internet sales person that has the past due to junk leads. Filters have greatly ability to understand his daily plan and work improved the quality of leads today.” it. A different work ethic is required for an Internet sales person,” says Graff. Depending on the size of your store and location, filter use can vary greatly. “At The anonymous Southeastern Dealer group our larger stores we like to buy all the leads feels it’s more, “Budget decisions about we can get. At our smaller stores we like to where to spend money on the Internet, good filter the leads. There is no question that the ROI management, and finding the right CRM contact ratio goes up with better filters”, says system are the greatest initial obstacles.” the Anonymous Southeastern Dealer group. For Freeland the obstacle was more mental, The work and quality of the filter has also “Our largest hurdle to overcome was changed over the last few years. According believing that you could close sales via e- to Graff, ”Yes, 4 or 5 years ago leads were mail and over the phone. We provided way filled with bad information. Nearly 30 too much information. You still need to get percent had some bad information. Today if the customers into the store and provide we get 5 -10 percent with bad information, them with an exceptional experience.” that’s a lot.” 8. What gives your store an edge over Freeland feels as though the few bad leads others on the Internet? are worth it when it comes to the cost, “Ittune with what the Internet buyers want, a depends on the source of the lead, but in “Our People! It always comes down to goodfast response with service.” general, Internet leads are strictly a numbers people”, says Freeland. game that should only be measured at thePerkins feels differently, “The timeline has end of the month with the bill divided by Perkins feels it is all about consistency,gotten longer. Five years ago there were the number of sales. A few bad leads should “Dedication to the Internet, not an “Internetfewer customers using the Internet, but not frustrate dealers when the cost per sale is person” or a separate department in thethey were serious and ready to buy. Now still much lower than traditional advertising. corner of the showroom is what’s required.there are more and more people that are Plus with Internet leads it is easily measured The Internet is a part of each and everysubmitting their information that are in the compared to traditional media.” department. We have the same process forshopping stage. Accessibility to the Internet every customer, Internet or not.”is greater now and we see a larger number of 6. What types of training do you use tofinancially challenged people as leads. The improve your Internet sales? Graff partly attributes their success to theoverall demographic of the Internet lead has customer service foundation that has alreadychanged.” According to Freeland, “Again we keep it been laid down. “Our advantage comes from simple. It’s primarily phone skills. Treat the way we do business. Flemington Car andAccording to Perry, “We find that nine times every lead as a phone up and provide just Truck Country Family of Dealerships has aout of 10 people will still pick up the phone enough information to set an appointment. reputation for great customer service. Weand call a dealer rather than e-mail them Better appointments = more shows, more carry this reputation on to the Internet. Weabout a car – since what they want to know shows = more sales.” have a huge customer base that trusts us.”is if the dealer still has the car. Consumersare using the Internet more than ever to “We have a training manager on staff but Please let us know topics you would likesearch for a car before buying – 89 percent sometimes it is necessary to bring in outside for us to interview successful dealers aboutof people with an Internet connection use the help. Scripts and e-mail writing can be taught in the future. You can submit ideas to BrianWeb this way according to J.D. Power” to people that already have the character and Ankney at the contact information below. phone skills”, says Graff.An anonymous Southeastern Dealergroup feels as though, “ heavier use by Like Graff and Freeland, Perkins feels itimmediate shoppers has quickened the important to keep it simple and use the greatprocess. 30 percent of our deliveries from employees you currently have. “I look for in- Brian Ankney is a sales-improvementthe Internet take place within the first house people as a first option and give them strategist at AutoSuccess. He can beweek. Our average buyer requires only additional training myself. They already contacted at 866.318.1360, or by e-mail atseven contacts to get them in to buy a car.” know our processes. The most important 2005 19
  16. 16. PaulAccinno Maximize Your Internet Sales In order to maximize deliver vehicles and pay the ISM to sell Web site. This will improve your closing your Internet sales, appointments. If your ISM is taking photos ratios, since these are your best leads, and your ISM must be of the used cars, consider hiring a third party cut down on the number of leads you need allowed to focus on provider to complete this task. Your ISM to purchase from a third party lead provider. his or her primary should be responsible for the vehicle content So here’s your total estimated cost for the responsibility, which on your Web site, but you should delegate month:is to sell showroom appointments. Most the marketing content to your ad agency.Internet customers have submitted leads You always want your Web site content to • Third Party Leads $2,000 (100 x $20)to multiple car dealer Web sites and other leverage your other marketing efforts. The • Web site Cost $500lead generators. So the dealership that gets objective here is to give your ISM more time • Photos/Window Stickers $750to the customer first with the information to respond to leads (in less than an hour) and (50 units x $15)they requested usually wins. Your ISM sell more appointments. If an ISM has a 10 • LMS $250must be organized, know their way around percent closing ratio, that usually means he • SEO $150a computer, be Internet savvy, and above all, or she is scheduling about 20 percent of the • Total $3,650/monthhave great phone skills and be a closer. This valid leads for appointments and closingrequires focus. 50 percent of those. What if the ISM, only If your ISM can sell 40 percent of the valid focusing on selling appointments, could leads an appointment, then you sell 30 unitsLeads that are responded to quickly have the double the appointment ratio? at a cost of $122 (200 x 75 percent x 40highest closing ratios. A Harris Interactive percent x 50 percent) / $3,650, which is lessPoll showed that 70 percent of Automotive Here are some of the marketing costs than half your normal advertising cost perInternet Users (AIU) that purchased a associated with running this model: Let’s vehicle retailed.vehicle did so from a dealer that responded assume you receive 200 leads a month, halfto their Internet request in less than one of those come from your Web site and OEM Industry experts say that an ISM shouldn’thour. The study also showed that the longer and the other half come from third party lead handle more than 100 leads a month. Butit takes to respond to a lead, the less likely providers at a cost of $20 per lead. Let’s that model assumes that the ISM is alsothe customer is to buy from you. In fact, also assume that 75 percent of those leads doing other tasks and not focusing on justthe likelihood of them purchasing from you are valid leads. The used car photos and selling appointments. And if you’re thinking,drops to 18 percent after 36 hours. Which window stickers will cost about $15 per unit. “I don’t get enough leads to have an ISMmeans that 82 percent of them bought from You will definitely need a Lead Management that only sells appointments;” then buy moreyour competition. System (LMS) to run this model properly. leads; don’t give your ISM more jobs to do. If your ISM can <1 70% sell 40 percent of 1-5 60% the valid leads an 6-12 56% appointment, then 13-24 45% you sell 30 units at a cost of $122 ... which 25-36 36% is less than half your >36 16% normal advertising 0% 10% 20% 30% 40% 50% 60% 70% cost per vehicle Source: Harris Interactive retailed.Try this for 90 days. Let your ISM do You can’t rely on Outlook to manage this If you’ll allow your ISM to focus on thenothing but sell appointments. When the process because there are many tools in the process of selling more appointments, you’llappointment arrives at the dealership, have typical LMS that streamline and automate sell more cars, your cost per vehicle retailedthe ISM greet the customer and for the the follow-up process. Using a LMS also will go down, and you’ll improve yourpurpose of continuity, introduce them to a cuts down on the time devoted to sending overall Internet ROI.sales person. Then let the sales person take e-mails and allows your ISM to use theirit from there. Make sure the ISM clues primary tool for selling appointments, the Paul Accinno is the preseident and CEOthe sales person in on all the particulars of phone. Next, consider a Search Engine of WorldDealer, Inc. He can be contactedthe deal so they are knowledgeable. Pay Optimization (SEO) program to maximize at 866.429.6826, or by e-mail atthe sales people to close customers and the number of leads you receive from your 20