1. Start closing from the moment you greet the customer by building rapport and likability. Customers want to buy from someone they like.
2. Turn what customers fear most about the buying process (typically the price negotiation) into the most enjoyable part by addressing concerns efficiently and in a friendly manner.
3. Ask qualifying questions during the test drive and product presentation to determine customer needs and pain points, then emphasize how your product alleviates those needs and issues to get them wanting the product.
8. sts fos ls ms sf fis
TomHopkins
sales and training solution
The Buyer Interview
The phrase “buyer you’ll want to be certain to cover safety ask them this one, but it’s one you need to
interview” may features, or suggest the optional DVD answer on your own. I’ve always taught
not be one you’ve players. that you gain a closing instinct by closing
heard, but it’s one I • Who will make the final buying too soon, too often. Always work towards
strongly recommend decision? There’s nothing more the close and always be willing to close any
you understand. disappointing than going through your time, any place. This could be in a conference
Conducting an effective buyer interview is whole presentation and getting to the room, in your office, on the lot or during the
similar to what a good journalist does when point where you ask for their final test drive. Don’t miss out on the opportunity
interviewing someone for an article. You ask decision, and they say, “Everything by not being ready and willing to close
questions that get them talking about their is great. Let me go talk to my wife/ when you see that they’re ready to make the
situations, their needs, their desires and their husband/dad/mom, etc.” Are you decision.
concerns. In other words, you get them to tell willing to have someone else present
you what they want to own. your vehicle to the decision-makers? Where?
Certainly not. They aren’t as familiar • Where will they use it? Help them see
It will also help you realize those situations with it as you are and couldn’t handle themselves driving to work, taking the
where what the buyer is telling you they any objections and questions that kids to practice or taking a road trip
want, but it may not be what they truly need. would lead to the close. Always make in the vehicle. Developing this sense
For example, I know of a situation where sure you give your presentation to the of ownership in your prospect moves
a man went to a dealership to get a new actual decision-makers. them closer to choosing the right
minivan. He told the sales person he just vehicle for their needs.
wanted to replace his old one. After asking a What?
few of the questions you’ll learn about here, • What are their motivations for getting a Why?
the sales person realized that this man’s needs new vehicle? Is the current one broken • Why should they own this vehicle
had changed since purchasing the minivan. down? Has their lifestyle situation now? It’s your job to create a sense of
His children were older now, and they had changed? urgency if they don’t already have one.
taken up some outdoor activities that would • What will it do for them? Are they They deserve to be driving the right
be better suited to owning an SUV. When the seeking a status vehicle with all the vehicle for their needs today, don’t
sales person repeated back to the client what bells and whistles? Or, something they?
he was hearing him say about his needs the simple and durable for their work or • Why are they thinking about it? If they
client realized that he was right. He didn’t recreation needs? These questions want to think over the decision, ask
really need another minivan. He needed are essential because you don’t want them what aspects are holding them
something different. He purchased the SUV. to emphasize a point that they are back from making a decision today.
uninterested in or have had a bad past
So, what are the typical interview questions? experience with. The vehicle they’re How?
The same ones our teachers taught us to use interested in might be available in four- • How can they finance it?
in elementary school: Who, What, When, wheel drive. You may think that’s great • How does it fit into their lifestyle? The
Where, Why and How. It’s truly that simple. because you spend your free time out value of getting them talking about
In fact, most strategies for effectively in the wilderness, but these folks may their lives is incredible. They will often
communicating with clients are. It’s just a never leave the city. talk themselves into ownership with
matter of using them. you simply acting as their guide.
When?
By now, you should be getting the picture of
Using the standard interview style, here are • When will they need it? Is there
how the interview will go. Be careful to come
some keys for developing effective questions. urgency for owning a new vehicle? If
across as an adviser or automobile counselor.
These questions will get the answers you their existing vehicle is in disrepair,
Don’t grill them with all of these questions.
need in order to help clients make vehicle they are likely to be in a hurry. That’s
Simply weave them into your conversations.
ownership questions that are truly good for good for you. If there’s no urgency, the
them. sale may not happen today and you’ll Special free offer for AutoSuccess readers:
have to serve their needs differently. get a free “Checklist for Building Trust on
Who? • When is the timing right? Perhaps an Initial Contact”. Call or e-mail me at the
• Who will be the primary driver? That they’re waiting for their tax return. address below.
person is typically the true decision- Maybe the vehicle is a gift for a child
maker when it comes to ownership. graduating this spring or going off to
World-renowned master sales trainer Tom
Also, their input as to style, color and college in the fall.
Hopkins is the chairman of Tom Hopkins
options is critical. International. He can be contacted at
• Who else will be in the vehicle often? Another important when question is: When 866.347.6148, or by e-mail at
If there are young children involved, do you go for the close? You don’t, of course, thopkins@autosuccessonline.com.
8 www.sellingsuccessonline.com
9.
10. sts fos ls ms sf fis
BrianTracy
sales and training solution
The Golden Prospect
How to Identify the Prospects That Can and Will Buy Sooner Than Later
Some prospects are your product or service enables him to take though their prices were slightly higher, the
better than others. In advantage of immediately. The more urgent young sales man gained a first-rate customer
fact, some prospects the need or more pressing the demand, the who not only bought large quantities from
are wonderful to deal lower will be the customers price sensitivity him but who opened doors for him to other
with while others are or concern about the smaller details of the people who also became customers.
a complete waste of purchase. The more prospects you can find
your time. Your starting point in spending that have an obvious need for what you are Now, here are two things you can do
more time with better prospects is for you to selling, the more and faster sales you will immediately to put these ideas into action:
define clearly for yourself the attributes of an make.
excellent prospect. Then your job is to find as First, ask lots of questions with a new
many of them as possible. For example, imagine a company is in the prospect to find out how important your
middle of its busiest season when a critical product or service can be to his or her life
There is one special quality possessed by an machine breaks down and cannot be repaired. or business.
excellent prospect. One of the most valuable This company is a prime prospect for the
things you can do in your initial conversations person and company who can sell and deliver Second, keep in touch with prospects that can
with the prospect is to ask the kind of this type of machine rapidly. most benefit from what you sell and continue
questions that enable you to determine your reminding them that you want to do business
prospect’s quality ranking on a scale from 1 Not long ago, a young sales man selling with them.
to 10, with one being low and 10 being high. construction materials lost a major order to a Never give up.
more aggressive supplier. But exactly when
A good prospect has a pressing need for the supplies were required, in the middle of the
exactly the product or service that you are construction job, the supplier’s workers went Brian Tracy is the chairman and CEO
selling. He or she has a problem for which on strike. The customer was desperate and of Brian Tracy International. He can be
your product or service is an excellent called the young man to see if his company contacted at 866.300.9881, or by e-mail at
solution. Or he or she has an opportunity that could deliver quickly. They could, and even btracy@autosuccessonline.com.
10 www.sellingsuccessonline.com
11. sts fos ls ms sf fis
DavidThomas
sales and training solution
Improving Your
Closing Ratio
When do you start to in your home. How do you greet your friends
close your customer? when they arrive at your home?
A. During the Customers shouldn’t have to and don’t want
test drive. to walk through a crowd of sales people
B. During the walk- in a “smoke fest” on the front porch of the
around. dealership. If you must smoke, do it away from
C. Standing on the showroom floor. customer areas. I remind you of this because
D. When your customer starts to leave. you would be amazed at the impact that your
E. When your boss tells you. initial greeting has on the closing process.
F. None of the above. Customers decide in a matter of seconds if
they like you and if they are inclined to buy you are their cure
The correct answer is F. You start closing a from you. What does all this have to do with
deal in the first three seconds after you greet the closing? It’s simple. If they don’t like
a new customer at the dealership. No, you’re you, they probably won’t buy from you, or
not asking for the sale in the first few seconds, they will be much more difficult to close. Put
but you are starting to build a relationship more energy into the first few minutes when
and initiate rapport. People want to (and will) you meet, and it will make your test drive and
buy from someone they like. I didn’t sell over product presentation much more effective.
3,000 cars in 3000 days because I was the
Now that you have fine-tuned your greeting,
best sales person. I sold a lot of cars because
work on your closing. Turn what they fear most
I made extreme efforts to be likable and to be
into the most enjoyable part of the experience.
easy to do business with. I always promised
How do you do this in an efficient, profitable,
my customer an enjoyable buying experience,
timely and friendly manner?
and I lived up to the task. I started doing every
deal with personality, not with discounting or Your goals are to maintain gross, minimize
sales tricks. If you do this, you will close more any negotiating and motivate an immediate
deals and make more money. buying decision.
Here Are Some Suggested Tips:
• Be aware of the first impression that you Focus on a relaxing, friendly closing
make. You either relax your customer or environment where the customer truly
scare them immediately. perceives a win-win outcome. This can be
• Smile – even when you’re on the phone. the easiest part of selling a vehicle. A typical
closing could sound like this: These kids and
A smile disarms and puts everyone at
Sales Associate: (Manufacturer’s name) has millions more
ease.
• Be enthusiastic. It’s contagious. If built an enjoyable car to drive. How was your Mary Tyler Moore
International Chairman have Juvenile
you’re excited, they’re excited. test drive?
Customer: Very nice.
Diabetes, a disease that
• Be knowledgeable. Know the answers
to the questions your customer asks. Sales Associate: Our service department has threatens their lives every day.
• Be user friendly. It should be easy and made it easy to service your new car. You met None of them can outgrow it.
pleasurable to do business with you. your personal advisor, correct?
• Dress professionally. Your appearance But we’re closer than ever to
will effect their overall impression of Customer: Yes, he is great.
a cure. Please, help us make
you and your product. Sales Associate: This (vehicle make and
• Make eye contact. Show your customer model) is enjoyable to drive. We’ve made it life-saving research possible.
the respect that they deserve. enjoyable to service as well. My mission is to Call 1.800.533.CURE or visit
• Be fun and exciting. People like to laugh make it enjoyable to buy. I pledge to keep it www.jdrf.org.
and be entertained. simple and straightforward.
• Be sure to connect. People know if you
Customer: Fantastic.
really care about their needs.
• Ask questions with positive answers If you truly strive to produce an enjoyable
- How are you? Isn’t it a beautiful buying experience for your customers, be a
morning? good communicator, be straightforward and
• Nod your head while you listen. Instill keep it simple, you will be surprised how
positive feelings. many customers just say “yes.”
Some dealerships do an outstanding job of David Thomas is the owner of Subaru
making customers (your guests) feel at home of Dallas. He can be contacted at
and comfortable in the first few seconds of 866.429.6803, or by e-mail at
their arrival. Make everyone feel like a guest dthomas@autosuccessonline.com.
march 2007
11
12. fs feature solution
Mathews: At one end, there’s the underlying Mathews: I’d say it’s been very positive. sites, we were able to position ourselves
An Interview by - BrianAnkney technology, which we have to scale as more Dealers LOVE using an advertising service when the need for services – especially
Behind Every Great Product
and more dealers sign up. One of the key that helps them actually measure and track Internet search marketing services – arose.
technological features of PowerSearch is their ROI. For the first time ever, with That need is going to continue to grow. So
the way it automatically optimizes keyword Internet search marketing, they’re able to Cobalt will be doing more and more as a
- A Great Partnership
bidding based on known results. As our identify the true value of their spending service provider to help our dealer customers
customer base grows, so does our store of AND understand how it’s actually helping get maximum value out of their online
data, and we have to feed what we learn them to sell vehicles. The great thing about marketing initiatives – whether it’s attracting
back into the system so that its efficiency Internet search is that you can track the new customers or doing a better job at keeping
How Cobalt’s Scott Mathews and John Holt Harnessed the improves over time. consumer – from the moment they type in the customers they’ve already won. For
the keyword, then click on the dealer’s ad, example, acquiring Dealix gave us the ability
Power of Internet Search Marketing for Dealers At the opposite end, there’s the customer- then as they peruse the dealer Web site, and to provide dealers with new-vehicle leads
facing sales team. How do we convey the true / or pick up the phone to call the dealer. It’s from leading third-party Web sites. This past
value of this service to customers, without very exciting. summer, Dealix re-launched UsedCars.com,
Every month brings another dozen or so would be a substantial need for Internet Holt: Let me offer some more background. overwhelming them with the complexity the premiere portal on the Internet for pre-
articles focused on the growth of online marketing expertise in all the major In the fall of 2004, we held a retreat and of our technology? How do we prepare our AutoSuccess: What’s next for PowerSearch owned vehicles. We also acquired an owner
advertising and the struggles of newspapers. consumer verticals, including automotive. spent the last day talking about Internet sales people to sell it successfully? In a way, Complete? marketing solution, OnStation, which helps
John Holt co-founded The Cobalt Group search. The “big idea” was “measurability” PowerSearch Complete had to be sold to dealers retain customers through innovative
in anticipation of these headlines – well Obviously, it was impossible to build – the fact that Internet search advertising our own sales people before we could start Mathews: We’re paying close attention direct-mail and e-mail marketing services.
over a decade ago. Today, Cobalt is widely PowerSearch in 1999, or 2001, or even 2003, was going to offer, for the first time ever, a selling it to our customers. to dealer feedback. Because our Account
acknowledged as the leading provider of but all along we were positioning ourselves way for dealers to calculate the real value Advocates are in frequent contact with our As “online marketing” continues to morph
online marketing products and services - as the leading provider of automotive Web of their advertising investment. In the fall Finally, in between, there’s the pure customers, we’re able to incorporate their and change, Cobalt will be at the forefront of
to the automotive industry. Credit this to sites - so we would have the expertise and of 2005, after a lot of research and technical operational side. PowerSearch Complete changes and improve the service as we go that innovation. But, at the end of the day, it’s
Holt’s vision, yes, but there are other factors knowledge to assist dealers in transforming work, and after initiating relationships with doesn’t come in a box like a piece of along. And the service itself provides for lots all about helping dealers create and convert
at work, as we learned when we spoke to their advertising spending from newspapers all the major search engines, we began a software; it’s a service. For it to work, it of flexibility. For example, dealers can choose more opportunities, so that they can sell more
Holt and Scott Mathews, head of Cobalt’s and other traditional media to the online pilot program involving approximately a has to be backed by a team of very smart, to allocate their ad spend across the month: vehicles and services more efficiently.
Applications Division. arena. During the past two years, vision and dozen dealerships. This led to a number of very customer-focused people. This poses all while we collaborate, they’re the ones who
tactical opportunity came together. refinements, and we launched the product at sorts of staffing and management challenges can decide the monthly spend, and they can AutoSuccess: Gentlemen, thanks for sitting
AutoSuccess: When a company’s idea NADA in February of 2006. – and it’s another area where scalability is put a cap based time of the month, or based down and talking about your partnership
about the future turns out to be right, there’s AutoSuccess: Who do you rely on to make key. At the pilot stage, you have a handful on success with certain results (e.g., click- and how it’s benefited Cobalt and your
a tendency in the business media to focus it all happen when the time is right? And that’s when Scott stepped in. It was his of true experts who can service every aspect through rates, or leads generated). Dealers customers.
on the prediction and overlook the work it job to professionalize and operationalize the of a search campaign. When you quickly can choose to focus on certain keywords
actually took to bring the vision to reality. Holt: I couldn’t have done it without Scott effort. Scott is the most talented operating go from a dozen customers to hundreds and and / or makes and models – and they can
Just how much of Cobalt’s success results Mathews. Back in 2001, we knew for certain executive I’ve encountered in the 30 years then thousands, you must have a plan for continue to tweak their requirements, as they Scott Mathews is the executive vice
from accurate vision? that, in order to succeed, we had to develop I’ve been working. He has a special gift distributing the responsibilities and required analyze their success. president and chief operating officer of
the operational efficiency and scalability that for keeping “big idea” people from falling skills that match the reality of who’s available The Cobalt Group. He can be contacted
Holt: We founded the company in 1995, often eludes young companies. We set out to on their faces. But he does more than take at 866.469.9613, or by e-mail at
for hire. AutoSuccess: Sounds good. What else is smathews@autosuccessonline.com.
based on the belief that newspaper find a guy like Scott, who has done far more what he’s given and keep it alive; he’s able Cobalt cooking up?
advertising budgets would move to the than simply run a tight ship. He has been to get at the heart of a strategy and motivate AutoSuccess: John, is it hard for you to give John Holt is the president and CEO of
Internet. We were wrong about the timing, instrumental in transforming Cobalt into the troops to enhance that vision, so that the your babies to Scott when they’re ready to Holt: Cobalt is always evaluating ways The Cobalt Group. He can be contacted at
but 100 percent correct about the predicted a company that backs up its big ideas with product improves over time. go out in the world? to improve our products and services for 866.467.4116, or by e-mail at
transformation – one that has now gained successful products and services – products dealers. As a provider of automotive Web jholt@autosuccessonline.com.
momentum. Of course we didn’t know how and services that provide enormous value to Mathews: One of things I realized while Holt: The more I can give to Scott, the better
companies like Yahoo! and Google would thousands of dealers across the country. interviewing for this job, and one of the Cobalt will perform. One of the ways I’ve
drive this revolution - Google didn’t even things that made me decide to accept it, was grown as a CEO is to realize the importance
exist at that time, and Yahoo! was still an AutoSuccess: Scott, how did you come to that Cobalt is a company that’s 100 percent of surrounding myself with people who are Dealers LOVE using an
infant. Anticipating the future is one thing, play the special role that John is describing? committed to its customers’ success. What smarter and more capable than I am. Having
but it’s impossible to predict the exact I’m good at, and what I really love doing, really talented folks who complement my advertising service that
road you’ll drive down to achieve your
goal. We’re here and on our feet because
Mathews: The first big project we worked
on was upgrading to a more modern, more
is managing the complex set of interactions
that, when perfectly balanced, become
own strengths is a key part of Cobalt’s helps them actually
success, and it’s what makes my partnership
our vision was right and because we were robust enterprise resource planning (ERP) something greater than the sum of their parts. with Scott so strong. Here at Cobalt, we measure and track
flexible about exploiting opportunities as system. Typically, this is an expensive, That’s what makes PowerSearch a great talk a lot about “servant leadership.” If
they materialized. lengthy project that ends in disaster. Getting product. It leverages dealers’ investments you view your job primarily as serving the
their ROI. For the first
it done on time and under budget was in their Web site, OEM advertising, and people around you and helping them to be time ever, with Internet
AutoSuccess: It was a year ago that you probably what made us see that John and dealership advertising. Internally, we refer successful, you will create extraordinary
launched PowerSearch Complete, a service I had complementary skills and a common to PowerSearch Complete as leveraging value and inspire significant commitment search marketing,
that creates and manages organic and paid interest in teamwork. the “Power of Three” – optimizing organic
Internet search marketing for dealers. How search, paid search, and the Web site. And
and loyalty. If you’re lucky enough to they’re able to identify
have a partner like Scott, who’s got broad
was the development of PowerSearch AutoSuccess: What role did you play in the it’s true – one plus one plus one equates to shoulders and lots of stamina, you can even the true value of
Complete an example of merging vision development of PowerSearch Complete? orders of magnitude of ROI for the dealer. have breakfast with your kids every once in
with execution? It’s pretty cool to launch a product like a while – something that was unimaginable their spending AND
Mathews: I was on the team that provided PowerSearch Complete when you know it’s for me during Cobalt’s early years. understand how it’s
Holt: Well, first off, no one predicted that oversight on the development phase of the going to provide such large and measurable
the surge in Internet advertising would project, which means I was involved every benefits to our customers. AutoSuccess: So now that PowerSearch actually helping them
take this specific (and incredibly complex) couple of weeks or so. It didn’t become a has been launched and is out in the market,
form called “Internet search.” But what managerial responsibility for me until we AutoSuccess: Operationally, what’s required what are you discovering? What are dealers
to sell vehicles.
we did know back then was that there launched it as a commercial product. to make PowerSearch Complete a success? telling you?
12 www.sellingsuccessonline.com
13
13. sts fos ls ms sf fis
HeatherConary
marketing solution
Developing High-Quality Employee
Communications Tools: An Overview
In the Business involved with the company, leading to Once you’ve addressed your capabilities
Keynote speech at the increased satisfaction. and requirements, it is important to develop
2007 National Auto • Having tools and information available a plan. Determine what tools you will be
Dealers Convention at their fingertips allows employees to providing to employees, how often you will
last month, Jack find answers and help faster, ramping be providing them and how you will provide
Welch, former CEO of up productivity. them.
General Electric, stated that the No. 1 asset • Human Resources and top management
of a business is its employees. can prevent having to answer many If you are planning to do this in-house, you
similar questions, leaving them time will want to involve your IT/Technology
How do you keep employees aware of to deal with the big issues. Manager, as well as Human Resources and
company news and programs, as well as any • Tools are available after hours, so the top management team. It may be helpful
benefits information and employee policies? employees can get questions answered, to involve department managers, as well as a
One of the easiest ways is to develop high- even when top management and handful of employees to serve as an advisory
quality employee communications tools. Human Resources aren’t available. panel.
What Are Employee Who Should Develop the Employee If you are planning to contract with a third-
Communications Tools? Communications Tools? party provider, it is helpful to have your
Employee communications tools are Ideally, someone in the top management team requirements and needs documented, so you
marketing materials developed to maintain should have supervision over the development can determine quickly and efficiently what
a consistent method of contact between of the employee communications tools. tools to begin developing.
a company and its employees. These
materials are not for public audiences, such All departments, managers and, in some What Are the Most Important Things to
as customers, but rather for employees and cases, employees, should have the ability to Remember About Getting Started With
their families. contribute information and ideas for stories Employee Communications Tools?
and news, as well. This ensures that the The most important keys to developing
What Are Some Examples of Employee entire company is represented well, and also successful employee communications tools
Communications Tools? increases cross-departmental familiarity. are simplicity and consistency.
• A dedicated employee Web site
• Print newsletters If there is nobody within the company who It is much easier to start with a simple plan
• E-mail newsletters can take on the duties of producing and and scale up later than it is to start large and
• Presentations maintaining employee communications have to scale back.
• Promotional items tools, contracting to a third-party provider is
• Interior signage an easy alternative. These types of companies Being consistent in your provision of these
• Pamphlets and brochures will work with your business to develop and tools is another key to success. If employees
• Employee handbooks and policy manage tools for your employees, according begin to use and expect these tools to be
manuals to your standards. available to them, it is highly important to be
consistent and provide them as expected.
What Are the Benefits of Having High- How Do I Get Started With Employee
Quality Employee Communications Communications Tools? Upcoming: Over the next several issues,
Tools? The easiest way to get started is to ask we will examine several different types of
• Employees and their families are kept yourself some questions about your business employee communications tools, their pros
informed of company news, policy and your employees, such as: and cons and some suggestions for their
changes, and benefit information. development.
• Information distribution is • How large is my business?
standardized for all employees across • How many employees (both part-
all departments, ensuring that nobody time and full-time) do I need to
misses an important announcement. communicate with? Heather Conary is a co-owner of ID
• Providing information is easier and • What resources (human, capital, Communications, a division of Illumination
quicker for top management, Human technological) do I have available Design. She can be contacted at
Resources and department managers. to begin providing employee 866.386.4914, or by e-mail at
• Employees feel as though they’re communications tools? hconary@autosuccessonline.com.
14 www.sellingsuccessonline.com
14.
15. SUMMIT VI
BEST PRACTICES
866.432.8718
Experience real Case Studies
that can help your dealership
LEADERSHIP • INTERNET • CRM • MARKETING • BDC • SALES immediately.
Tuesday and Wednesday,
Some of the Featured Speakers include: May 15th and 16th 2007,
at the Venetian Resort and
Hotel, Las Vegas, NV.
Howard Polirer David Thomas
Director of Industry Relations,
AutoTrader.com
Owner, Subaru of Dallas
Dealers & Managers Only!
You will learn:
You will learn: - Power prospecting; when, where and Two days of intense
- How to turn “leads” into “prospects” who how
buy from you - How to generate more referrals from learning. Dramatically
- How to identify Internet prospects your sale force improve your results.
- How to measure your online success
- How to maximize results from your
“Virtual Showroom” Limited Seats,
Register Today!
After taking what I learned at the Best Practices Summit back to my
Case studies from dealership, our back-end gross has more than doubled, we are cutting
down our third-party leads (and thus our spending) and are selling about
Dale Pollak Tony Rimas successful dealerships 20 more cars a month. It all has to do with the process that we use and
Co-founder and Chairman, vAuto Red McCombs Automotive Group across the country. with the way that we respond to customers, things I learned at the Best
Practices Summit.
Case Study: Expand your Internet
Increase pre-owned sales with pricing Department through creative
optimization presentation, superior staffing, and Classroom style seating - Jason Reed, Internet Director, Miller Toyota/Scion of Anaheim
You will learn:
tactical process only $569. Special
You will learn:
- How to connect the Internet and pre- - Inventory pricing and aggregation Venetian room rates for
owned department
- How to use three killer strategies to
techniques
- Select vendors and staff for low volume
$249 per night, while
achieve pre-owned Internet sales or high volume dealership locations they last.
success - Increase ROI through inventory
selection and lead allocation
- Maximize Web site conversion
Speakers and times subject to change
Eric Stuttz Bryan Hopkins
Vice President of Sales, BZ Results BDC/Internet Director, Hare Auto Group
You will learn:
You will learn:
- How to find your best Internet process,
- The “5 Key Metrics” that the best and create a process-driven team
dealerships in America focus on - Daily, weekly, and monthly goals
- Use these “5 Key Metrics” to increase - How to increase lead conversion rates
their overall results within sales and from your Web site
service - How to maintain a customer data base
- How to decrease your advertising - How using customer data bases can
expenses and cost per sale create current and future leads
- How to customize your Web site to your
market conditions
Call today to register. Seating is limited. toll free: 866.432.8718 web: www.autosuccessonline.com
16. sts fos ls ms sf fis
AllenCheek
marketing solution
Does Your Brand Image Resemble a
1970’s Multi-Plaid Leisure Suit
Your company brand It is mission critical to evaluate and develop in companies that have multiple offices
reflects how each a brand that can withstand the test of time, that have de-centralized their marketing
customer and prospect since there are inherent costs associated campaigns. Have corporate protocols and
sees your company, with developing and maintaining a powerful quality control standards to ensure that
product and/or brand image. Think for a moment what it everything leaving the design board meets
services. It is critical would take, along with the level of effort certain standards.
to have a polished, organized and consistent necessary, to implement a total brand make-
look. For instance, if you assembled samples over. Close your eyes and imagine the
of your current advertising, sales literature, following headline: Home Depot Inc.’s new The foundation for brand awareness is an
product packaging, company newsletters, chairman and chief executive, Frank Blake, ongoing campaign. Keep a constant eye to
business cards, logos, stationery, signage, decides that the company should change its detail. Brand awareness is paramount and the
brochures, Web site, vehicle decoration and identity, and decides his first declaration is to benefits are lasting. A successful campaign
uniforms, what would it look like? Is there a change the color orange to match his favorite can increase brand awareness, recognition
harmonized appearance or does it resemble color, indigo blue. How many cans of Home and ultimately brand recall. Not everyone
an old multi-plaid leisure suit? Depot paint in their warehouse would it take needs your product or services today, but
to compensate for a directional brand change they may need it tomorrow. When they do,
It’s important in branding to have an of this magnitude? Just imagine the costs you need Top of Mind Awareness (TOMA)
organized and consistent brand look that is alone to replace those orange aprons for the so they make contact directly with you.
woven throughout the fabric of the entire 355,000 associates.
organization – from the materials (i.e.,
collaterals) to hardware (i.e., vehicles) to Although a branding or re-branding
the people (i.e., uniforms). Probably no one awareness campaign may be simple for start- Allen Cheek is the president of
does this better than UPS or Home Depot. I up or small businesses, it does become more CLARITY OMS. He can be contacted at
think every item they own is dipped in either complex over time and when many hands 866.611.0998, or by e-mail at
brown or orange, respectively. are at work. There could also be challenges acheek@autosuccessonline.com.
CREDIT REPORTS LEAD SOLUTIONS COMPLIANCE TOOLS ID VERIFICATION
Lead Prospector Solutions
Know ‘em. Reach ‘em. Close ‘em. First Advantage
CREDCO, the leading provider of specialized
credit reports, offers Lead Prospector Solutions –
a powerful suite of lead generation tools.
From highly-motivated bankruptcy and subprime
leads, to targeted demographic and Internet leads,
we have a leads solution for every prospect so you
can close more deals!
866.745.2485
CREDCOServices.com
Lead Prospector
TARGETED of our leads
Direct Mail bought cars within 90 days*
*Source: Survey conducted by R. L. Polk & Co. from June 2004 to June 2005. Individual results may vary.
18 www.sellingsuccessonline.com
17. sts fos ls ms sf fis
ChaseFraser
marketing solution
How to Retain
Customers
As you examine your in the shoes of the customer standing on
role as a leader within the showroom floor or service drive. What
your dealership, it’s would you want if you were standing there?
sometimes easy to How do you think your spouse would want
forget who pays the to be treated? Ask your sales people and
bills - your existing service writers that question this week, and
customers. A lot of dealerships focus see what type of answers you get. A few of
more on acquiring new customers than on them just might change their attitudes about
retaining their existing customer base. Both how to approach the next customer.
approaches are important, but if customer
acquisition and retention are given equal Touch the Customer
focus, a dealer can realistically expect to One of the most effective strategies for a
double the profitability over time. leader is to spend time with their customers
a few times each week. Sounds simple, but
We took data from 800 different dealerships, most leaders don’t do it. If it takes an hour,
and found some interesting statistics: it’s the most important hour you’ll spend
that day. Randomly pull a Service and Sales
If a Dealer Sells 100 Cars in a Month: customer from the DMS, and have lunch
• 28 of those people will be “loyal” with them. Ask what they liked about their
service customers, returning regularly experience. What did they dislike? How
• 32 of those people will never set foot could you improve? You’ll undoubtedly hear
in the dealership again some things that make you cringe, but that’s
• 40 of those people will visit the service part of the process. Just remember to be
department 1 or 2 times, and then never sincere, and you’ll get sincere feedback.
return
Understand Your Customer Data
Where do you think your dealership falls? You can discover your strengths (and
Think about this - what if you retained an weaknesses) by reviewing trends in your
extra five percent of those customers? That DMS data. Here are a few of my personal
doesn’t seem too difficult based on the favorites: Over the first three months of
above statistics. That five percent represents ownership, what percentage of customers
an increase of 60 percent to your bottom made their first service appointment at
line. Here are four high-level suggestions to the dealership? How do you improve that
increase customer retention to record-levels: percentage? What percent of customers
haven’t been into service in more than 10
Get Out of Your Ivory Tower months, and how should you market to
Sorry to be so direct, but it’s true. I find them?
that most leaders of organizations make
decisions about their customers from “on That’s where we come back to retention, and
high,” without getting much input from who keeps the lights on in your dealership.
others. I have certainly been guilty of this. The customer. Your customer. You’ve got
I’ve found that when I make decisions based them; now you have to keep them.
on what I think a customer wants, but don’t
spend time with others who may improve So, get input from others on decisions that
upon my decision, the decision usually is not affect your customers, put yourself in the
a successful one. Get with your management shoes of the customer, spend in-depth time
team, your sales people or other dealers to with your customers and become a customer
compare notes and discuss your ideas. You’ll data expert. If you do these four things, you’ll
usually find the answers you are looking for. see happy customers and higher profits.
Peter Drucker said it best - “The customer
rarely buys what the business thinks it sells As Henry Ford said, “It is not the employer
them.” Simple concept, but powerful. What who pays the wages. Employers only handle
do your customers think you’re selling? the money. It is the customer who pays the
wages.”
Empathize With Your Customer
We are all consumers, but I find there is
a tremendous disconnect between what Chase Fraser is the CEO of
we want in our personal buying process, MarketView 360. He can be contacted at
and what we actually give our customers. 866.667.9659, or by e-mail at
Empathy is a profound tool. Put yourself cfraser@autosuccessonline.com.
march 2007
19
18. sts fos ls ms sf fis
SteveLaPenta
fixed operations solution
How to Generate $25,000 to $1,500,000
of Customer Labor and Parts Sales
In today’s industry, build trust and confidence with each customer. copy of the inspection report findings
many customers Most vehicle inspections reports have color and thank them for their business.
choose to have routine coded, green, yellow and red check-off boxes
maintenance and next to each vehicle inspection item. What Do Customers Want and Expect?
repairs performed Red Box – indicate that the customer requires When surveyed, customers indicated when
at quick-lube immediate attention on this item(s). visiting an automobile dealership service
outlets, independent franchises and mass Yellow Box – indicate that the customer will department, these are the most important items
merchandisers, resulting in only 20 percent require future attention on this item(s). that they expect in the order of priority:
of customers returning back to their selling Green Box – indicate that everything is okay 1. Relationship with the service advisor at
dealership service department for routine with this item(s). the dealership
maintenance or repairs. 2. Early warning of vehicle maintenance
The marketing strategy behind this approach and repair needs
Service departments have a tremendous is that everyone in the world understands 3. Choices on oil changes, brakes and
financial opportunity to generate more the simplicity of what green, yellow and red tires
maintenance and repair revenue if they stands for. The vehicle inspection report will 4. One-stop shopping that meets all the
commit themselves to maintaining a do some of the selling and closing work for customer needs in a timely manner
consistent “vehicle inspection” process. the service advisor, if applied correctly. 5. Repairs explained in simple language
Uncovering this financial opportunity will 6. Competitively priced and value added
require making adjustments to your current The Following Steps are Required for services
dealership business model plan and involves a Successful and Profitable Vehicle 7. Concern for their safety and of their
taking employees out of their comfort zone. Inspection Process: family
• Service advisors need to introduce,
Implementing a “free vehicle inspection” display and offer the “free” mutli-point How will vehicle inspections impact my
process has many benefits, one that will vehicle inspection report with every service and parts department bottom line?
immediately bring customer labor and customer towards the end of the customer
parts profits to a new level while increasing consultation process. Obtaining upfront Gross Profit Potential
customer retention. approvals from your customers will Vehicle inspections will create an average
make them feel more comfortable when of $125 to $375 in additional customer pay
Business Growth Strategy Plan for reviewing the findings with them. parts and labor sales.
Service-Parts and Sales Department • Service advisors need to apply the
• Increase customer visits to the service inspection process on the customer’s Here is an Example:
department. first visit to the service department, 1. Service department writes 60 repair
• Increase customer parts and labor sales which is typically at the 3,000- to 5,000- orders per day.
and gross profits. mile interval range. This will allow 2. 60 customer vehicles receive a free
• Obtain 100 percent Fixed Operations the customer to receive “good news,” inspection, but only 50 percent of
Absorption – covers overall dealership meaning a lot of green boxes checked your customers approve the needed
expenses. off on the inspection report for at least maintenance or repairs (average - $125)
• Sales department can apply aggressive the first three to four service visits. The uncovered by the technician during the
pricing strategies and be more objective is to have the service advisor free inspection process.
competitive in their marketplace. build trust and confidence on each visit, 3. 30 repair orders X $125 equals
• Increase showroom traffic and sell more so when it comes time for any additional additional $3,750 customer parts and
vehicles. work to be sold, selling and closing labor sales.
skills become much easier. 4. 240 work days X $3,750 equals an
Oil and Filter Service Pricing • Technicians need to perform a additional $900,000 in annual parts and
This is the most important maintenance item in bumper-to-bumper, under-hood and labor sales.
today’s industry and will keep your customers under-vehicle inspection process that 5. Gross Profit Margin Average of 40
coming back to visit the service department. It includes removal of all four wheels. percent equals $360,000 in annual
is vital to maintain a very aggressive pricing The technician must correctly detail service and parts gross profit.
strategy for this routine maintenance, while the inspection report and process the
remembering this serves only as a “service inspection report to the service advisor. For a free sample of a vehicle inspection
lane traffic builder.” Consider advertising a • The service advisor must display and report and how to present it, send me an e-
loss-leader oil change service for as low as present the inspection report findings mail with “inspection report” in the subject.
$19.95 on most vehicles. to the customer and let the customer
Steve LaPenta is a fixed operations
decide what needed services they would consultant and owner of Dealer
Perform “Free” Vehicle Inspections like to have performed. Automated Systems, Inc. He can be
The vehicle inspection report is a great tool to • Even when a customer declines needed contacted at 866.652.3968, or by e-mail at
start applying with your customers, as it will repairs, provide the customer with a slapenta@autosuccessonline.com.
20 www.sellingsuccessonline.com
19.
20. sts fos ls ms sf fis
MarkTewart
Fire Your
sales and training solution
Advertising Agency
There is a startling way expect this to be a magic button to do this acquire new customers as it does to keep the
for most dealers to for you. ones you have. It is also the surest and best way
double their business to grow your business exponentially while
– fire their advertising You must first decide what results you want also insulating your company from so-called
agencies. Dealerships and work backwards to design the steps bad economies, mistakes from manufacturers
spend an enormous to accomplish it. Let’s say that you want to and new buyer behaviors and patterns.
amount of money on advertising for new reward your customers and create an ongoing
customers. Unfortunately, often that money personal relationship. Design a whole year’s When you have designed a system that touches
is wasted. The money is wasted because worth of contacts based upon a theme or your customer base a minimum of 48 times
the agencies are strictly placing ad dollars several themes, offers and added value. a year, you can now begin to work on your
in media and doing production. Often, the mass merchandising. Mass merchandising for
ad dollars are spent without any knowledge new customer acquisition is also vital to the
and use of direct response marketing, and the
game plan that will be used towards keeping Before you health of your company.
those customers. spend one dime I would invite you to think first in ways that
cost a lot less dollars. Try creating coupon
Before you spend one dime on getting new on getting new swaps with other businesses such as dry
customers, try putting a fence around the cleaners, coffee shops, restaurants, car
ones you’ve got. First define who your active customers, try washes, etc. Try creating alliances with other
and inactive customers are. Your active
customers bought from you and service with
putting a fence companies where you can do a mailing to
each other’s businesses that introduces each
you. Nationwide, these active customers only
account for an average of 19 percent of your
around the ones other as a trusted source and offers a large
inducement to take action.
total customer base. you’ve got.
Think lead generation in your mass media
Next, identify who your inactive customers advertising at first. Create a “Free Special
are and begin a campaign to make them Use multiple media to deliver the message, Report: Seven Things Everyone Should
active. You may send a cycle of three letters such as postcards, letters, dimensional mail, Know Before They Buy a Vehicle.” Create
with the same theme. Maybe the first letter is e-mail, e-mail newsletters, voice broadcasts, an e-mail, fax or toll-free telephone line auto-
something to the effect of “We Miss You,” the free recorded messages, special reports, responder system to deliver this report to
second might be “You Must Have Not Gotten coupons and others. All the media should people who request this from your ads. This
Our First Letter,” the third would be “We Are have what my colleague Nido Quebin calls will create a two-stage lead generation source
Sending Out a Search Party.” “Intentional Congruence.” Each choice of that asks potential customers to raise their
media should feed the other and connect the hand and show interest instead of asking them
Each letter would contain a significant reward dots between each other. Each department to make an instant buying decision.
and bonus if they become your customer should intentionally feed the other.
again. It’s not enough to sell them every four If you use an advertising agency and they are
or six years; we have to create a continual Many dealerships contain four or five different not talking to you about your overall marketing
relationship with contact that encourages and businesses within a business, such as new plan that contains elements for your existing
creates servicing and purchasing other goods vehicle sales, used vehicle sales, F&I, service, customers, lead generation and how to create
and services. parts, and body shop. Each department in your continuity programs, you should fire them and
dealership should have its own marketing get someone who has the correct knowledge
Don’t spend one more penny toward new messages, tailored to fit its unique services. of marketing. They should create a plan that
customer acquisition until you have designed Try breaking your database down into active, creates a healthy and wealthy business for
an ongoing continuity program to keep them inactive, different departments, different make you now and in the future.
active by rewarding them. You can keep those buyers, different model buyers, different year
customers by actively designing an ongoing purchases and more. Segment your database Mark Tewart is the president of Tewart
automated contact and reward system. Don’t and talk to them differently. Enterprises. He can be contacted at
buy a Business Development System or a 866.429.6844, or by e-mail at
Customer Relationship Manager System and It costs seven times the amount of money to mtewart@autosuccessonline.com.
22 www.sellingsuccessonline.com
