Autosuccess Feb04


Published on

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

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

For similar content visit

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Autosuccess Feb04

  1. 1. Win a FREE trip for two to the Kentucky Derby! pg.13 .biz Bryan Anderson Closing Won’t Hurt YouFebruary 2004 Asking for the Sale Promotional Event Advertising PERMIT NO 879 Ensuring Greater LOUISVILLE KY PAID US POSTAGE PRSRT STD Louisville, KY 40202 Suite 202 Loan Approval 756 South 1st Street a division of Systems Marketing, Inc.
  2. 2. 298.6657
  3. 3. Shift your dealer sales force into high gear. Drive traffic to your showroom. See Clarity. Turnkey Prepaid Visa® and MasterCard® card solutions. Claritys prepaid card solutions give you more than just a reloadable debit card. Participants get a world of spending possibilities. You get a custom designed card and access to powerful administration and reporting tools that allow you to effortlessly track and manage your program in real time. Clarity Prepaid Card Solutions are ideal for: Sales Incentives & Awards Test Drive Incentives Commission Pay Outs Consumer RebatesOur prepaid card solutions are effective promotion and incentive tools powered by the most robust and flexibleprocessing engine in the industry. Together with our industry leading partners, we can provide you with the bestsolution to meet your needs.To learn more, please call 212.563.4433 (x301), email us at, or visit us at
  4. 4. manager I N S I D E driventeam operation uccessrevenue automobil 6 solutions Closing Won’t Hurt You Mark Tewart 7 Northwood University’s Programs Fill profitprofessional Unique Niche for Car Buffs Timothy Gilbert 8 Asking for the Sale Darin George 9 Forced Logging sales Brian Ankney10 Promotional Event Advertising Jeff Fishel11 Competition Drives Production Terry L. Isaac12 Loyalty Programs Can Work Jim Gutzwiller15 Great Coaches and Leaders Set Goals First, Part 2 Joe Verde16 Building Processes Building Relationships Building Sales Bryan Anderson18 Ensuring Greater Loan Approval George Jackson20 Get in Position to Play Your Best Brian Manzella22 Courtesy Chevrolet Uses Internet Marketing to Sell an Additional 85 Units a Month Sean Wolfington23 Get That Bump Steve Hiatt24 Sales From the Internet: Photo Sell Dennis McDonough28 Practical Project Management Brian Tracy A cure won’t just save children. Mary Tyler Moore It will save childhoods. International Chairman These kids live with 4-6 insulin injections daily. Plus, they face the threat of blindness, heart attack, kidney failure and amputation. Their only hope is research. The Juvenile Diabetes Research Foundation is closer than ever to finding a cure. Help us help them. Call 1.800.533.CURE or visit dedicated to finding a cure Psalms 37:3-5 Patrick Luck, Editor & Publisher inventory Success Driven Solutions • Trust in the Lord, and do good; so Susan Goodman, VP of Operations you will dwell in the land, and enjoy • security. Lindsay Porter, Copy Editor Take delight in the Lord, and he will 756 South 1st Street, Suite 202 • give you the desires of your heart. Louisville, Kentucky 40202 Courtney Hill, Advertising Services • Commit your way to the Lord; trust in Toll Free: 877.818.6620 Kelley Humkey, Advertising Services him, and he will act. • Facsimile: 502.588.3170 In God We Trust Web: Thomas Williams, Creative Director dealer • AutoSuccess Magazine is published monthly at 756 South First Street, Suite 202, Louisville, Kentucky, 40202; 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, 756 South First Street, Suite 202, Louisville, Kentucky 40202.
  5. 5. It’s WAR Out There! THIS MAN MEANS BUSINESS TMJames A. Ziegler SALES MANAGER FORUM: Motivating your Sales Team to Higher Profitability “ Taught By James A. Ziegler Atlanta, GA Feb. 10 - 11, 2004 Are your Las Vegas, NV Mar. 17 - 18, 2004 Atlantic City, NJ April 13 - 14, 2004 troops Denver, CO April 20 - 21, 2004 prepared Atlanta, GA May 11 - 12, 2004 Chicago, IL May 19 - 20, 2004 to fight for higher THE COMPLETE F&I MENU SELLING SYSTEM Present 100% of your products 100% of the time! Taught By Becky Chernek Sponsored By Jim Ziegler & Ziegler Supersystems, Inc. profits? ” Charlotte, NC Feb. 17 - 19, 2004 Atlanta, GA Mar. 16 - 18, 2004 Chicago, IL April 13 - 15, 2004 Las Vegas, NV May 11 - 13, 2004 Dates and locations subject to change t Jim’s C heck ou te at Web si glerSupe n on www.Ziean find informatio side You c s plus in future seminar ore! dm news an DON’T MISS Jim and the Ziegler Supersystems team at the NADA 2004 Convention in Las Vegas, NV. Stop by the DEALER magazine booth #1837. Mr. Ziegler’s “Are You Ready To Run With the Big Dogs?” NADA Workshop schedule: Sunday, February 1, 2004 . . . . . . . .11:00 am – 12:15 pm Monday, February 2, 2004 . . . . . . . . 8:30 am – 9:45 pm Tuesday, February 3, 2004 . . . . . . . .11:00 am – 12:15 pm PLUS…Mr. Ziegler will be the keynote speaker at the AutoTeamAmerica 10th Annual CFO Forum January 30, 2004, 2:00 pm, Paris Hotel, Las Vegas, NV. To register contact Sue Van Tornhout at 866.233.9053 or online at
  6. 6. sts ms ls fis lr sales and training solution Mark Tewart By Mark Tewart Closing Won’t Hurt You Why won’t the Giving too many payments confuses and you couldn’t find your keys, and when customers just say, customers rather than providing clarity. you went into the house to search, you yes? Why do they found them. Now that you found the keys, stall, complain, 4. If a customer says no to your how long would you keep looking?” object and shop? offer, deÞne which of the three M’s it is. “Based upon the vehicle you are buying, Why does it have to The objection will either be money, me or the deal you are getting, and what yoube so hard? The answer to all this is to stop the machine. You can rarely fix a vehicle told me you wanted, you are not makingcomplaining and take control. If sales were problem with money. a mistake!”an easy game, everyone could do it, and “Sometimes, the hardest part of gettingyour value as a sales person would be much 5. Move toward HFG – Hope for Gain. what you want, is simply deciding to dolower. From the beginning of time until the Remember, the customer wants to buy the so.”end of time, people will need to persuade vehicle even more than you want to sell it. “Tight budgets are like tight shoes,people and close deals. Let’s examine how You always have the power. Remind the sometimes you have to stretch them out ayou can do it better. customer why this vehicle is making their little.” situation even better. Remind them why “We always feel the payments are scary.1. Ask more assumptive they wanted the vehicle in the first place. The funny thing is, in a few years, you willquestions that assume the sale. People will jump over mountains for what wish you could get this payment, that youExamples: What do you like best about they want, when they often won’t cross the are scared of now, on your next car.”your new vehicle? What’s the best thing street for what they need.about this vehicle you will enjoy vs. your 8. Practice give/get.present vehicle? 6. Utilize emotions to inßuence logic. When customers want you to give them When people negotiate too long they enter something, ask for something in return. If2. Use more stories. into a logic only mode. Use emotional the customer wants lower payments, askFacts tell; stories sell. Use vivid, visual triggers. Ask them how they feel. Take them for more cash investment, longerimages of them using and enjoying the them back to the vehicle. Nothing creates term, lesser model or a different way tovehicle. People need the social proof that emotions like the vehicle. Share what they finance (lease or smart buy). Never givestories give them. Stories let people know are getting for the money. unless you ask to get back. Associatethat you, your customers and others have pain to them asking, don’t reward themmade the choice successfully before them. 7. Eliminate risk discounting immediately. Flinch when the and take them to the future. customer asks for a concession. Concede in3. Give each customer three options Use the following closes: small amounts and descending order. Don’ton every proposal (the power of threes). “If you had a guarantee that would allow give up the farm. Let them know that theThree choices give the customer the feeling you to do business, what would it be?” concessions are getting smaller or ending.of being in control, by having choices “If you could wave a magic wand, what Validate and verify what you asked for andwithout being overwhelmed. Don’t be risk would that magic wand remove?” why before you ever concede.confused by people telling you to give “If you don’t buy, where do you go fromcustomers twenty choices on payments here? What happens next?” 9. Use the admit technique.or never to work payments until the “If it were 30, 60 or 90 days from now, and Don’t feel you have to handle all objectionscustomer gets to F&I. They are wrong. you are buying a car, and you’re perfectly right away. Agree with the customer.Not giving payments makes most people happy, what one condition is being met that Example: Objection, “Too high.” Answer,angry because they are negotiating things allows you to do business?” “I agree Mr. Customer, a nice car in today’sthey don’t understand, which causes fear. “What if you went to get into your vehicle market with the nice equipment, like you are getting, costs a lot of money. Did you want to look at more cash investment or a longer term to ease the monthly budget?” AT T E N T I O N : Closing is not a dirty word and does not •Automotive Dealers have to mean manipulation. Most customers need help to influence their decisions. •Ad Agencies Otherwise, customers would buy the first place they shopped. All things being equal, •Automotive Marketers!! price will be the final determinant. A sales person’s mission is to master their skills Automotive Ad Planner Kit On Interactive CD-ROM to elevate value above price. Close, close, 24 Campaigns Included!! close or be broke, broke, broke. (Limited Supply Offer) Mark Tewart is the President of Tewart Enterprises. He can be contacted at 866.429.6844, or by email at 6 successful solutions at
  7. 7. sts ms ls fis lr leadership solution TimothyTimothy Gilbert By Gilbert Northwood University’s Programs Fill Unique Niche for Car Buffs Not unlike many program is attracting students as well. The a higher level of professionalism in the teenagers, Michael program focuses on the manufacturing and automotive industry. They train the next Crabbe and Kyle distribution of automotive, heavy truck and generation to improve the overall reputation and Jake Odum agricultural industry parts and accessories and performance of professionalism of all had a passion, that are sold through aftermarket the industry,” said Gilbert, Automotive cars. For different distribution channels. Marketing Chair. “What appeals to mereasons, these students all chose to attend personally is to see the individual growthNorthwood University, the only accredited As these examples note, the reasons and maturity that takes place as a studentcollege in the nation offering associate’s students choose to pursue AA and BBA joins Northwood as a freshman and(AA) and bachelor’s (BBA) degrees in degrees in Northwood’s Automotive matures into a graduating senior, poisedAutomotive Marketing/Management. Marketing/Management and Aftermarket and ready to assume their productive role in Management programs are as varied the industry. We are a small campus with aA sense of family responsibility and a desire as makes and models of cars. While world-wide reputation,” he assist their older brother drove Jake and at Northwood, Automotive MarketingKyle Odum to attend the program. Jake, a students design, orchestrate, manage and To learn about this year’s Auto Show visit:Northwood junior and transfer student from host the largest outdoor auto show in the University, and Kyle, a freshman Southeastern United States. They arefrom TL Hannah High School in Anderson, assisted by classmates from all over the Timothy Gilbert, Associate ProfessorSC had heard about Northwood University world, thanks to articulation agreements and Suzi McCreery, PR Director atthrough their dad who owned a Dodge with colleges including Germany’s BFC– Northwood University Florida Campusdealership in Greenville. Calw and the Georgian College of Canada. can be contacted at 866.274.3792, or by email at their dad unexpectedly passed away, “What attracted me to Northwood was the Northwood University is a non-proÞtthey knew what they had to do in order fact that they believe so strongly in creating assist their older brother, Tanner, whostepped in to manage the dealership. “Hisdeath was a shock to us all. All of a suddenwe had such a responsibility to continuethe growth and expansion of the businesshe and my grandfather built twenty yearsago,” said Jake, who had originally plannedto finish college at Clemson. “We knew thatby attending Northwood, we’d be learninginformation that would be of value to thedealership,” he added.For Michael Crabbe, the motivation wasthat he wanted to be part of Northwood’sAnnual Auto Show. As president ofWoodlands, TX high school “Car Club atThe John Cooper School” during his senioryear, he followed his older brother’s leadand raised $2,200 for his hometown’s localHabitat for Humanity. While organizingthe show, he secured more than 70 cars,including a dozen Ferrari’s, AmericanClassics and off-road vehicles.“Many have written off my passion forcars as a boyish obsession that will beforgotten as I grow older. However, I havebeen able to take my love for cars and useit to accomplish great things for others. Itwas good to see how my hard work, effortand passion for cars all combined to createa car show that was able to bring peoples’interests for cars together for a good cause,”noted Crabbe on his admission essay.Northwood’s Aftermarket Managementfebruary 2004 7
  8. 8. sts ms ls fis lr sales and training solution Darin Darin George By George Asking for the Sale Many sales people Step 4. How about the vehicle?” If they do have are not sure when to Ask the customer, “Did you enjoy the concerns or questions, answer them. ask and how to ask ride and features of the vehicle?” If yes, the customer for proceed. Step 6. the sale. Some are Ask the customer, “Okay then, if there was hesitant to be that Step 5. anything preventing you from getting theaggressive, high-pressured sales person. Ask the customer, “Do you have anyDon’t forget why people come to your other questions about the dealership? continued on page 29dealership. You have to earn the right toask for the sale.Here is a good checklist:Did I introduce myself properly? Did Iask all the contact questions? Was a fullpresentation and demonstration drivedone? Do they want my vehicle? Did Isell the customer on our dealership? HaveI been professional?If you have done everything possible forthe customer, ask for the sale.The following is a non-pressured,consistent and very powerful way toask. The emotional intensity level of thecustomer is at its highest, and how youproceed from here will determine if yousell the vehicle.Seven steps to asking for the sale.Step 1.Offer the customer a beverage. This isdone to build more rapport and induce thelaw of reciprocation with your customer.“What do you take in your coffee?”Step 2.If you have any questions that you havenot answered for the customer, answerthem now, before you proceed. This isdone to establish trust and credibility inyou.Step 3.Tell the customer, “Now before we goany further, I want to make sure that wehave selected the correct vehicle?” (Lookfor a verbal or a physical gesture, i.e.nodding of head.) If everything is okay,tell them, “I have a few questions to ask . Freight extrayou, and, if you could, answer them asstraight forward as possible?” This is See us at NADA Conventiondone for clarification. Booth # 5463 8 subscribe today at
  9. 9. sts ms ls fis lr sales and training solution Brian Brian Ankney By Ankney Forced Logging Invest $0 and get customers should be reviewed by a manager purchase a vehicle or the manager approves 1.5 additional within two hours of the contact. This allows the reason for which they are no longer in sales per sales the manager to advise the sales person’s the market. When a customer takes delivery, person, per month. next step or take a TO before the customer put the stock number and date next to their The expense cools off or visits your competition. name. If they will not buy, add a manager’s associated with note for the reason. This system effectivelydriving traffic into dealerships is too large Manager approval required to not sell. takes the power to blow out customers awayto ignore any potential business from walk- Desk managers generally do a good job from the sales person and gives the managerin traffic. Showroom traffic control can be monitoring the customers on the floor and control of the floor.summed up as forced 100 percent logging, offering assistance to sales people. Thisimmediate manager review of client assistance becomes less effective once Next step.contacts and manager involvement before the customer leaves the store. It is too Inform your team of the importance andany customer is deemed dead. hard to use logs alone to guarantee that no benefits of this system. Train them to follow customers are forgotten. A good showroom this process. You will see additional sales inForced logging. traffic control system will ensure that every the first 30 days. Within 90 days you shouldIt is important to have every floor, phone customer buys a car or that a manager realize 1.5 more sales per sales person, perand Internet customer logged. One hundred approves the reason why they do not. This month. Showroom traffic control is a simplepercent logging allows managers to ensure can be accomplished by placing every way to improve your sales department inevery sales opportunity is maximized. up into the sales person’s pool of active less than 30 days. It is easy and your salesManagers can only help sales people customers. Keep a list of every customer people will appreciate the larger paychecks.deliver cars to customers they know about. each sales person ups on the floor, assists onBy setting firm, defined rules that prevent the phone or answers through the Internet.missed opportunities, sales people will Maintain separate lists for each sales person Brian Ankney from AutoClick can besee a personal value to logging. Allow in a binder that is kept at the manager’s contacted at 866.247.9587, or by emailsales people to maintain rights to every desk. Customers stay on this list until they at for which they have completedthe mandatory dealership follow-up. For acustomer to qualify, they must be loggedwithin an hour of first contact, includingphone and Internet customers. Once 100percent logging is achieved, managerscan get involved with every customer,monitoring sales and follow-up processes.This true logging will also produceaccountability in the step sale. Whensales people log every up, managers havegood statistical information that will makeweaknesses in the step sale apparent.Managers can use this information tocontinuously improve sales people withtraining and coaching. Place a floor, phoneand Internet log for fresh customers on themanager’s desk, and get started today.Review every logged customer contact.Emotion drives customers to purchase newvehicles. The best opportunity to sell a caris when the customer is in the showroomand emotions created by an effective walkaround and demo drive are running high.Once the customer leaves the dealershipthese emotions diminish quickly. The sameis true for Internet and phone customers, awebsite, ad or something related, excited thecustomer enough to contact the dealership.Strike while the iron is hot, and make surethat every attempt is made to bring thesecustomers into your dealership, before theirexcitement dies. Floor, phone and Internetfebruary 2004 9
  10. 10. sts ms ls fis lr marketing solution Jeff Fishel By Jeff Fishel Promotional Event Advertising When it comes to First, plan your events far in advance. offers to your customers. building urgency Planning ahead in this manner allows • Staffing additional F&I managers in the minds of you to select your best promotional days, and sales managers to process the potential car buyers, weeks and months of the year and can, extra business during the event. nothing is more potentially, save you up to 40 percent in • Having the telephone operator effective than a one your media expenditures. answer all calls with enthusiasm:to five day automotive event promotion. “Thank you for calling ABC Motors…, Second, do your research in order to are you calling about the Big Sale?”Most people want the best car deal right determine what vehicles are selling well, • Structuring the lot for increasednow, and whoever will give them the best currently in your market. To do this, you traffic as well as getting the bannersdeal right now will get their business. may need to access current DMV reports hung and balloons placed, etc. in order to discover what customers are • Pricing each vehicle in order toRegarding car buyers and the ‘best-deal- buying in your market, at any given time. maximize its marketability andright-now’ factor, nothing lends more showcasing your old-age units forcredibility to this concept than a one to five Third, purchase your inventory ahead immediate automotive sales promotion. Consider of time in order to best complement thethe ‘single day slasher’ or ‘price slice’ event. For example, if you wish to have Sixth, launch the These are so effective in drawing a ‘Spectacular Truck Extravaganza’ twocustomers because the event is only here months from now, then start buying and Seventh, evaluate your results.for one day and then it is gone. This creates trading as many trucks as possible, today.urgency. Stock up the hottest selling inventory The beauty of event promoting lay in available and perhaps a few ‘price leaders’ the post-evaluation. Because one to fiveAutomotive sales events like this will as well. day campaigns are modulated into suchgenerally pull the largest share of the tight time frames, they allow you to‘now’ buyers in your market, at any given Fourth, select your most effective immediately evaluate your success in thetime. Again, now buyers are those in media and dominate. Don’t spread your following ways:your market who could be persuaded to advertising messages too thin with shallowpurchase a vehicle right now. And, because placement. Dominate the mediums that • Traffic countsone to five day event promotions create will best reach the now buyers in your • Closing ratiossuch urgency in the minds of these now market. If it’s direct mail or newspaper • Breakdowns by make & model orbuyers, they tend to be drawn in greater inserts, go with maximum quantities. new versus used salesnumbers to these events. Future shoppers If it’s traditional newspaper, go with a • Gross profitor those who intend to buy next week or minimum one-half page above the fold, One to five day automotive sales eventsnext month are also pulled in at greater in full color. If it’s radio and TV, strive are an ideal way to credibly promotepercentages to be closed at these sales. for the most media points in multiple day your dealership and inventory to the now parts as your budget allows. buyers in your market, at any given time.This is a classic example of the advertising Furthermore, event promoting providessizzle (events / offer / time limit / urgency) Fifth, stage a meeting to ensure all you with the means required to instantlyoverpowering the advertising steak managers and sales people understand evaluate the success of your advertising(branding and merchandising). The sizzle the details of the event. At this meeting during these one to five day intervals.of the event promotion is, in effect, the discuss the following:promise of the best deal right now for the Jeff Fishel is the National Salescar buyer. • The proper logging of ups and TOs Director for, to management. andHere are seven steps designed to increase • The exact details of the campaign ROI for your automotive event and how to overcome potential snags He can be contacted atpromotions. in the explanation of the event and/or jeff@Þ Would you like to win a FREE trip for two to the Kentucky Derby? 10 visit us at
  11. 11. sts ms ls fis lr sales and training solution TerryByL. Isaac Terry L. Isaac Competition Drives Production Competition drives rules for doing business, outside the Our business is noted for the bonuses we production. This rest of the team, they will break the pay out. You name it, TVs, cash, trips, is an important other sales people’s drive. You cannot etc., sales people like to see what they’re element within your show favoritism, you must be fair and competing for. Make it visual; it’s more sales team. Selling consistent to all. effective. Take $500 in cash, and write is a war between down different amounts on pieces ofyou and the rest of your field. You should 4. Spread out opportunities. Give paper: tens, twenties, fifties, put them inexpect this mentality from your sales bones to the team on performance, balloons, sell a vehicle, pop a balloon.people. Do not let them be complacent reward in a rotation. This willwith performing below standard, they promote the sales people to raise their Sales without competition will onlyhave to have fire in them and take pride in performance. promote complacency, and your job totheir performance. At the first of the month motivate your sales team just becomesthey should be waiting to see if they are 5. Set performance standards. Setting harder. You must strive to instill energynumber one. Being number one is the goal performance standards will keep the and motivate your sales team to use theirof a top sales person, and being number team on an equal playing field. resourcefulness.two isn’t good enough. 6. Keep the sales team motivated.When you are adding personnel to your When motivating your sales team,sales team, look for the type of person who you must realize that what workswill compete with the top sales person as for one, may not work for the next. Terry L. Isaac is the Corporate Saleswell as the rest of the team. The only way A pat on the back will work for all Trainer for the Neil Huffman Auto challenge the team with new personnel employees, find something they’ve He can be contacted at 866.265.4680, oris to train them on the know-how and instill done right and tell them. by email at them that they can dominate the force.Training people who dominate the salesteam in their first month of performanceeffects the top performers when they seethey have lost to a new sales person, whomay have never even sold in this business.This gives them a wake up call to performat their highest potential, and it tests theirpride. It will also get your team back ontrack and dropping the bad habits or shortcuts they have been taking.Competition is the natural law. There aretwo kinds of competition you want toachieve, one is the individual, having thesales team compete against each other,and the next is the dealership, as a team,against your competitors. The insidecompetition will raise the level of thedealership’s competitiveness as a whole.Keys to achieve a competitive floor. 1. Train and motivate all new hires. Train them and coach them to compete effectively, with a highly competitive attitude. This will also eliminate the fear factor and make them feel more equal. Learn how a J.D. Byrider franchise can add to 2. Create a fair playing field. This is your portfolio and increase your profitability at key to having individuals feel they booth 5107 of this year’s NADA Convention. have a fair chance to be number one. 3. Eliminate the buddy system. This WWW.JDBYRIDER.COM 1-800-947-4532 means if there are sales people and managers who have their own set offebruary 2004 11
  12. 12. sts ms ls fis lr marketing solution Jim Gutzwiller By Jim Gutzwiller Loyalty Programs Can Work Customer loyalty while establishing a relationship with the time after time. Give discounts on high can be one of customer. dollar services, over the counter parts the most costly and accessories. Some programs ‘bank’ entities of your A loyalty program should not be geared a percentage of parts, service and body dealership. Other toward one particular department. There shop revenue toward the purchase of a business segments must be value for all profit centers, new vehicle. Other programs accumulatehave developed loyalty programs that everyone needs to participate in the cost ‘points’ based on services or dollars spentwork. Progressive dealerships can do and reap the benefits. which may be used in the boutique orthe same increasing vehicle, parts and for additional services. It is importantservice revenue. In this article, we will A successful loyalty program. to be creative when developing awardsdiscuss important loyalty program issues Loyalty programs provide value for the programs. Don’t be afraid to discount 50 oildealerships can address to drastically dealer and customer alike. The successful changes or expensive transmission services.improve customer relationships. program can increase vehicle sales by 6 Include free trip and seasonal inspections; percent or more. It is not uncommon for chances are they will need some other typeHow effective programs are established. service to increase revenue in excess of of maintenance. The key is to get the totalMany factors must be considered when 16 percent via increased RO count and the package value up with real and perceivedestablishing a successful loyalty program. increase in multi-line ROs. value items. Every dealership is different;The program that works for one type of use a combination of real and perceiveddealership most likely will not work for Loyalty programs should contain sufficient value items and services.another. Clientele and location are major value to motivate customers to comefactors when considering a successful back to the dealership, just offering free Value for each department.program. The goal of any program is to or discounted oil changes will not do the The loyalty process actually begins in thebring customers back to your dealership, job. Programs containing awards that sales process; properly structured programssell additional services and products have real value will bring customers back continued on page 29 12 check us out at
  13. 13. THE #1 SALES-IMPROVEMENT MAGAZINE FOR THE AUTOMOTIVE PROFESSIONAL win a FREE trip for two to the Kentucky Derby! Saturday, May 1, 2004 Includes lodging, airfare and two tickets to the 130th Annual Run for the Roses! Guaranteed winner, all survey information must be Þlled out clearly and faxed/mailed back before Thursday, April 8, 2004, 5pm EST. Please fax complete entries to AutoSuccess at 800.869.5432, or mail entries to AutoSuccess Derby Giveaway, 756 South First Street, Suite 202, Louisville KY 40202. Must be a dealership employee to enter, one entry per person.KENTUCKY DERBY TRIP GIVEAWAY REGISTRATION FORM* *Survey must be Þlled out clearly and faxed/mailed back in its entirety to qualify. Þll out and send back• Name: • Email Address:• Dealership: • Franchise/Make:• Address: • City, State, Zip:• Phone Number: • Fax Number:1. What is the biggest challenge that your dealership faces today?2. Are you able to use any articles during training or meetings?3. What topic(s) would you like to see discussed more, in further detail or eliminated?4. Have you ever contacted a writer from AutoSuccess Magazine? Why?5. Have you ever contacted an advertiser from AutoSuccess Magazine? Did you utilize their service/product?6. Do you receive a subscription to AutoSuccess, or are you on the rotating comp. list?7. Where do you invest your advertising dollars? Newspaper, Radio, TV, Direct Mail, Internet? NOMINATE ONE OF YOUR SALES PEOPLE (optional)If you have a sales person that meets or exceeds your standards as an outstanding sales person, and you wouldlike to nominate them to be featured in AutoSuccess Magazine, please email
  14. 14. AutoSuccess, the #1 sales-improvement magazine for the automotiveprofessional, has teamed up with cross town Louisville Slugger to bringyou the best double play in the business. Order your 1 year subscriptionto AutoSuccess at our everyday price of $75 and get your own official,personalized Louisville Slugger Baseball Bat FREE!** shipping and handling not included. CALL TODAY! 866.269.8604
  15. 15. sts ms ls fis lr leadership solution Joe Verde By Joe Verde Great Coaches and Leaders Set Goals First, Part 2 Only 3 percent of related to reaching each of your • Review your goals daily, so that you all the people in activity and results goals. stay focused and on track. the US set goals the • Work your plan every day, not some • Don’t quit until you hit your goal. right way. It’s also days, not when you have time, not a fact that only 3 when it’s convenient…work your Joe Verde is the President of The Joe percent of all the plan every day, without exception. Verde Group. He can be contactedpeople in the US ever get to the top in their • Monitor your progress. That means at 866.429.6689, or by email atprofession or to the top in their personal track everything you do, so you know, or visitendeavors. when and where you’re off course. month, we discussed the qualitiesof a great coach or an exceptional leader.This month, let’s start at the top of the listof what differentiates great leaders andcoaches from average. One of the biggestdifferences is that great coaches set goalsfor themselves and their team. Here aresome tips this month on how you canbecome a better leader by setting goals foryour sales department.Goal setting is the most basic principleof success in sales, business and life.Dealers and managers realize that peoplewith clear goals succeed. They also seehow they can control units, gross, net andannual growth in their dealerships throughgoal setting.The challenge.Too many people confuse long, hard workand good intentions with setting realisticand achievable goals and having a goodplan to follow.They forget that good intentions are vaguestatements, and that long, hard work, toooften, doesn’t lead in the right direction.And they forget that projections, forecastsand good intentions all lack the mostimportant key to success, a plan of action.The steps to setting goals. • Find out exactly where you are now (that would be your 90-day rolling average, called a current average). • Figure out what you want and where you want to be, and turn it into a goal. Leave out words like ‘try’ and phrases like “We’ll give it our best shot.” Say you will reach your goal instead. • Write a step-by-step action plan of the activities you need to do to reach your goals. Caution: Be complete here, too. • Assign everyone in sales, management and every department specific responsibilities for achieving part of the goal. • Learn all you can about everythingfebruary 2004 15
  16. 16. fs feature solution BryanBy Bryan Anderson Anderson Building Processes Building Relationships Building SalesThe greatest tools in the world will be one persistent challenge remains: without Dealers that have managed torelatively ineffective in the absence solid processes, even the best technology- implement and maintain effective,of process. Customer Relationship based CRM can fail to generate additional profitable procedures in theirManagement (CRM) is a prime example, sales. dealership have won the hardestrequiring not only the proper hardware battle but remain handicapped byand software but also consistent hands- This challenge has become more evident antiquated manual methods that limiton processes that perpetuate success. with the wide variety of automotive their levels of success. Incorporating CRM software currently available in the technology-based CRM should beTechnology-based CRM is a great marketplace. Dealers must sort through relatively easy, provided the CRMadvantage in the automotive retail all of their CRM options to find the vendor fits its system into the dealer’sindustry. Managing customer information solution that will build strong procedures framework of successful processes.and building relationships was previously around powerful software.a manual task, with handwrittentools being used almost exclusively. Wrong Tools Right ToolsTechnology definitely has its place in theshowroom. Poor Processes Failing today, and not planning for tomorrow Struggling today, and wasting money onThe popularity and affordability of PC- technologybased networks – combined with theincreased accessibility to the Internet Great Processes Struggling today, but Succeeding today, and showing strong potential building for tomorrow– resulted in a wide range of softwaresolutions for automotive dealers. Thetask of tying these tools together proved 2. Right tools / poor processes:to be complicated in many cases. Very few dealers actually fit into the Dealers that have stepped up to ‘wrong tools / poor processes’ quadrant. the plate and invested in the rightThe top CRM vendors have, for the most It’s nearly impossible to stay in business technology for their showroompart, managed to put these complications without embracing at least one of these have made a wise decision, butbehind them. First of all, taking advantage primary factors. However, not enough too often they fail to build goodof software during the sales process was dealers fit into the ‘right tools / great processes around the hardwareno longer a secret; in fact, it is difficult to processes’ quadrant either, even though and software and therefore neverfind a dealership that doesn’t use a PC at technology can be found in every achieve the success envisioned atsome point on the road-to-the-sale. showroom in America. Specifically, as it the outset. Even the best tools must relates to technology-based CRM tools, be used correctly and in the properSecond, by integrating with major DMS the proportions are roughly the same. environment in order to work at all.providers and utilizing existing or off- Most dealers fit into one of the other twothe-shelf hardware solutions, vendors are quadrants: It is important to note that merely beingable to deliver the software that dealers electronic does not make a tool the ‘rightdemand. But once the solution is in place, 1. Wrong tools / great processes: tool’ any more than having a process 16
  17. 17. Dealers must sort through all of their CRM options to find the solutionthat will build strong procedures around powerful software.means you’ve got a ‘great process’. about them. But technology-based CRM the showroom, the various sources ofHowever, the electronic nature of CRM products allow dealers to target their customer information and the skill leveltools allows dealers to capitalize on existing customer base in an effort to of their throughout the entire sales generate additional traffic.experience. Consider your own dealership. What Your CRM solution must have the tools and processes do you have in placeThe most valuable CRM tools impact one immediate ability to send email / that truly set your sales force up forof three process-related scenarios: Web ads, print letters / envelopes, and success? Why would the best automotive generate call lists for sales people / BDC sales representative in town want to work 1. Streamlining an existing representatives that target any imaginable for you? Why would the best manager successful process. cross-section of your customer base, want to work at your store? As a dealer, 2. Facilitating the creation of new including current prospects / leads and bring to the table both the tools and processes when none exist. previously sold customers. This new the processes that allow sales people 3. Affording a choice when more process, impossible to fully execute and managers to excel. If you already than one process is available. without technology, can easily become fit into the ‘right tools / great process’ a routine part of each new incentive group, congratulations. But if an honestExisting processes. announcement. assessment reveals your inclusion inA popular wall poster in conference one of the other groups, it’s time to takerooms is the dealership’s own Choice of processes. strides in a new direction.handwritten ‘road-to-the-sale’ chart, Entering or gathering customerbulleting the steps that should be taken information involves a variety of If you believe your dealership has greatwith each new opportunity to sell. In the processes, depending not only on sales processes but merely lacks the rightpresence of technology-based sales tools, the dealership but also on the type of tools, you may be a prime candidatedealers and managers now have a way to customer. Some dealerships prefer for technology-based CRM. If you’vemonitor the progress of this procedure on driver’s license scanners for floor already invested in technology only toan individual basis. traffic, while others utilize a ‘hawk’ in find that the same problems still exist, ask order to start new records. Phone and yourself why. You must make sure thatWith the correct CRM tool, the road-to- Internet leads require yet another method you have the proper training, technicalthe-sale can not only be customized for for gathering customer information, support and great processes built aroundeach dealership but also tracked on a and referrals/friends/family further the right technology. Your CRM vendorper customer basis by sales people and complicate matters. Your CRM tool should be eager to work with you tomanagers. should have the flexibility of well- develop and implement the processes that designed software that refuses to cookie- maximize the value of your investment inNew processes. cut the data entry process. hardware and software.Dealers are keenly aware of new Bryan Anderson is the Founder andincentives, and big signs and painted Management should determine the best President of AutoBase, Inc. He can bewindows ensure that customers who processes for their individual store, contacted at 800.320.0897, or by emailwould have visited anyway know all based on the networked hardware in at 2004 17
  18. 18. sts ms ls fis lr f&i solution GeorgeGeorge Jackson By Jackson Ensuring Greater Loan Approval Loan approval is manager get involved. It does not matter one of the primary who gets the loan approved, as long as responsibilities it is approved. Put your ego aside for the of the business benefit of the dealership. Also, never lie manager. When or misrepresent a credit application. Your they work hard to reputation and image is more importantget loans approved and exhaust every than any single car sale.option on the credit application, everyonein the sales department notices. The Complete an interview.nicest thing a sales person can say about When a customer has marginal credit, thea business manager is that they get deals dealership decides not to spot the customer.purchased. Until the lender approval is One of the biggest and most commonsecured, nobody receives payment. Listed mistakes that a business manager makesbelow are a few areas to consider when in this situation is not interviewing theattempting to maximize loan approvals. customer before they leave the dealership. Sometimes, the sales department takes itDevelop a Þrst tier. upon itself to send the customer home.One of the first things to do is to establish a This is a huge mistake. When the lenderprimary tier of lenders to send every credit conditions this application, it is up to theapplication to. Unless it is guaranteed to business manager to call the customerbe approved and only needs to go to one and gather information. When this callsource. This top tier should include your is made, it is a red flag to the customer.captive source (GMAC, FMCC, etc.), one What are your odds of getting informationor two lending institutions and a good that can help you, if the customer is atmarginal source. Those in the first tier work or with friends (assuming youshould work hard to stay there, and those reach the customer)? In doing this, youin the second tier should strive to become have added one of the biggest killers ofa first tier lender. The top tier of lenders a car deal into the mix, time. You have toshould be used before sending any deal to interview the customer before they leavethe next tier, and it should receive 70 to the dealership to get more accurate and80 percent of your lending business. It is timely information.better for the dealership to send most of itsbusiness to a few sources and hold them Monitor lender performance.accountable for performance as opposed Finally, you have to track the performanceto having seven or eight lenders getting 10 of each and every lender in the businessto 15 percent of your business. office. The best way to do this is to use a lender call-in/call-back log. These logsImprove the callback. are more effective than deal sheets, as theThe business manager’s job is to turn sheets stay with the deal, are filed withevery turndown into a condition and every it and are of no use after the deal jacketcondition into an approval. This is difficult leaves the business office. The logs allowbecause of lenders’ adherence to internal the business manager to share valuablescoring systems and Fair-Isaacs. Many information with the lender to improveof the personal relationships that have performance and contract share. The logexisted have developed into computer- tracks turn-around time on loan responses,generated responses and fax callbacks. percentage of approvals, percentage ofThe best way to improve your initial conditions, percentage of turndowns andlender call is to send customer information tiers for every deal. Without this log, theand supporting documentation in with lender will not only have more informationthe credit applications. Do not hold it but more leverage with the dealership.back. When you have a chance to rehash Track them and make them accountable toa loan response, be prepared. Have your you, not you to them. After all, you are theinformation ready. Gather information customer, not the opposite.and supporting documentation to supportthe customer’s explanation. Fight only forapplications that have merit, and never George Jackson is the Director ofgo over your lender to their supervisor, F&I Training for American Financial &unless you are ready to go as high as Automotive Services, Inc. He can beyou can. Also, do not ever be afraid to let contacted at 866.280.0301, or by emailthe management team over the business at 18 stop by
  19. 19. Topics Covered: • Maximum net profit from gross generated • Balance and maintain 60 day turn • Proper training of pre-owned salespeople • Purchase trade methods for proven success • Appraise for maximum trade potential • Never have over-aged problems again Tim Deese Dates: Locations: February 19-20 Jacksonville Beach, FL March 9-10 Las Vegas, NV March 25-26 Jacksonville Beach, FL April 22-23 Jacksonville Beach, FL Call for more information and details Jay Dyer 1-800-266-7408Visit our website: Progressive Basics, 1855 Wells Road, Suite 8email: PO Box 922 Orange Park, FL 32067 A ssoci up State 20 gro and Phone: 904.264.7408 king spea ments Fax 904.264.7409 ge enga ilable. ava
  20. 20. sts ms ls fis lr leisure & recreation Brian By Brian Manzella Manzella Get in Position to Play Your Best The sole reason for The proper positioning of the elbows is Many modern players carry the straight back setting up to the ball more downward than outward. From here to the extreme which includes the upper in a certain manner the golfer can turn his left arm and wrist 90º back and the ‘head up - look down’ that is to put yourself in a during the backswing for a classic top-of- Murray saw as a poor player’s fault (Pic 1). position to hit the ball the-backswing position. If the left elbow is The better players who start ‘head up’ almost properly. On standard turned outward, you can only turn the wrist always return the neck to near parallel withshots, hitting the ball properly is hitting the that amount to get to the same destination. the ground to look straight at the ball andinside, back of the ball, on the way down, The right arm should bend straight up and have the better clubface control that comeswith the face slightly open. That’s the reason down during the backswing, which is only with the proper neck position.for setting up a particular way. It’s not to possible from the elbow down condition‘line up at the target’. It’s not to get you in an at address. Otherwise, the golfer must To get into the proper posture and position‘athletic position’ or any of the other clichéd also rotate the right arm as it bends on the at address, use a mid-iron and stand erectaxioms. You can line up 30 yards left like backswing. It is also easier to put the right with the proper grip and golf arms holdingLee Trevino or 30 yards right like Bobby forearm at address more closely on the plane the club out in front of you. Separate yourLocke and still be a world-class player. You it will be on during the last moment before feet until the middle of your feet are as widecan look hunched over like Allen Doyle or impact (Pic 2). as the outsides of your shoulders. Your righthave your legs wide apart like Moe Norman. foot should point straight ahead, and yourBut, on a basic shot, you have to put yourself Posture is often overlooked by golfers as left should be turned very slightly a position to create a downward blow and unimportant and taught incorrectly by well- Your toes should both be touching thehit the correct part of the ball. meaning but misinformed teachers. Author same parallel line. Using your right hand, HA Murray talked about the common extended wide from little finger to thumb,You can accomplish these imperative outline to the neck and shoulder area of the put the thumb on your belt buckle (ladiesfunctions with a less than classic looking champion golfers. His research revealed that approximately two inches below your bellysetup. You could try to follow the incorrect these outlines showed a definite roundness button) and your pinkie on the butt of thenotions of modern pop instruction’s idea of to the upper back and neck area compared to club. Keeping these contact points together,correct form at the address position. But, if ‘average’ players. This upper body posture bend from the hip sockets, with your backyou follow the following guidelines, you allowed the golfers to look straight at the straight, until the club contacts the ground.will have a better setup than Tiger Woods. ball as opposed to the duffer’s propensity Then, relax your upper back and neck, and for looking down their nose. This posture look straight out of your eye sockets just inLet’s assume you have the classic neutral includes the neck being nearly parallel to front of the clubhead where the ball wouldgrip described in September’s article. the ground at address. This trait is shared, at be (Pic 1). least at impact, with nearly 100 percent ofThe first step is creating, what I call, ‘golf the great players from Vardon to Woods. There are two schools of thought on ballarms’. After most golfers grip the club, even position: constant and multiple. I have taughtif they have a good grip, their arms are in Because most poor players don’t bend over it both ways. The best way (in my opinion)less than ideal position for executing a golf at the hips nearly enough, teachers started to is a constant ball position just inside the leftswing. They often have elbows pointing notice how straight the lower backs of the shoulder socket for all shots off of the groundoutward, their right arm is ‘on top’ of their champions were. What they missed, was that and right under the socket for teed drivers.left, and their right arm is straighter than the ‘straightness’ ended in the upper backs oftheir left. All are less than ideal. players like Jack Nicklaus and Sam Snead. This inside the shoulder position generally 20 successful solutions at
  21. 21. continued 1 (Pic 3) Looking at yourself in a mirror or on video, look at these checkpoints. First, the For a standard straight shot, lines across the toes, knees, thighs, hips, shoulders and eyes face-on view: two-inches-inside-low-point should all be on lines parallel to the ball-to- ball position; stance width (this with a six- target line. The ball only knows what the iron), elbows facing forward, butt of club at club is doing, so you could line up at Mars the belt buckle, arms ‘unit’ appears centered and make a hole-in-one on Venus, but this is to body, head behind the ball, and head, no a great starting point. ‘cocked’ left or right leaning. (Pic 2) Rear view: Lower back straight, upper back rounded enough for parallel-to- Brian Manzella is a PGA Teaching the-ground neck position, butt of the club at Professional. He can be contacted 2 belt line, left arm barely visible above right arm, arms hanging from shoulder sockets, at 866.873.0036, or by email at, or visit eyes looking straight out at the ball. “My advice to anyone who wants to get into the car business is to get a degree from Northwood.” 3 Over the past several years, there is possibly no other industry that has undergone as much change as the automotive business. As the American automobile evolves, so must the auto- motive marketing and sales profes- sional evolve to keep up with these changing times. The automotive pro- fessional of the future will need to be better educated, better motivated, and more informed than ever before. Northwood University is the first and only business management college in 4 the country that offers a specialized curriculum in Automotive Marketing Management. We are also proud to know that the future automotive deal- ership manager of tomorrow is well on the way of perfecting his or her career today at Northwood. Unique Philosophy The Northwood Idea:falls about two inches inside the golfer’s left free enterprise, practical management,heel. Just move the club up the parallel to the global perspective, business/arts relationshipfoot line that it is on, and place the ball so itis on that line and slightly toward the toe-endof the clubhead (Pic 4). NORTHWOOD UNIVERSITY Campus Locations:Adjusting for shorter and longer clubs is Midland, Michigan 800.457.7878easy. For shorter irons, the stance becomes West Palm Beach, Florida 800.458.8325narrower, until with a wedge the outsides Cedar Hill, Texas 800.927.9663of the feet line up with the outsides ofthe shoulders. With longer clubs than the Programs:mid-iron, the stance gets wider, until with DeVos Graduate School 800.MBA.9000a driver the insides of the feet line up with University College 800.445.5873the outsides of the shoulders. For a driveroff of the tee, place the ball more toward thetoe of the club, and position the ball on the www.northwood.eduleft heel.february 2004 21
  22. 22. sts ms ls fis lr marketing solution Sean By Sean Wolfington Wolfington Courtesy Chevrolet Uses Internet Marketing to Sell an Additional 85 Units a Month Robert Reveere of 3. Email campaigns work. 6. The process is still most important. Courtesy Chevrolet “I can send out thousands of emails within The key is to turn your email and phone conducts email seconds, and, at the end of a long weekend, responses into appointments and sales. campaigns monthly I can sell another 10 to 15 cars. And that’s so his dealership the bottom line,” Reveere said. 7. You need to stand out in the crowd. maintains as a top Dealers use high impact, multi-mediaChevrolet dealer in the country. 4. Email marketing is very measurable. emails that show miniature commercials. You can measure everything, how many “We use buzzmails, and our customers tell“We conduct different buzzmail campaigns emails were sent, viewed, converted into us all the time that they are blown away bymonthly, to our data base of customers. The leads, test drives, finance applications, etc. what they see,” Reveere part is, it only takes a few seconds anddoesn’t cost a dime,” Reveere said. 5. Email marketing is more interactive 8. Emails must work with all clients. than any other medium. First, make sure your emails integrate withHere are some of Courtesy’s secrets for It allows customers to click to build their popular systems: AOL, Hotmail, Outlook,successful email marketing campaigns. vehicle, compare cars, view inventory, see etc. Second, your email marketing system specials, apply for financing, buy parts, should be able to detect different security1. Email marketing is inexpensive. schedule service appointments and more. settings, so it can deliver the right email for the particular setting. Third, if you2. It is easy to conduct a campaign. “The difference between mail and email use multi-media emails, make sure theyFirst, you pick a list of prospects, define is that after they read my email, they can are compressed and work on a low speedyour message and send it off. spend another 60 minutes interacting with connection, so people don’t have to wait. me, and, by the time they call or come“We have hundreds of pre-packaged in, they are further down the purchase 9. Gather a lot of emails.buzzmails ready to send,” Reveere said. process,” Reveere said. “We have a lot of creative ways of gathering email addresses on our website and also gather emails from other parts of the dealership. We use a service that crawls the Web for our customer’s email addresses and notifies the customer to ask if they want to opt in to receive product and promotional updates from our dealership. It is amazing, because you can get more than 25 percent of your customer base’s email addresses,” Revere said. “Then we follow up by asking them if they also want to get updates on new products and promotions. In the end, we have a lot of emails, and they are from customers who asked us to contact them.” 10. Respect the law and customers. Do not spam your customers. Follow all the rules for email marketing, allowing customers to opt out of your campaigns. The challenge with email marketing is that it is so easy and inexpensive many people overuse it after their first success. If you over do it by emailing your customers multiple times a month, eventually they will not open your emails, and many of them will opt out. It is important to have a pre-defined email marketing strategy that is spaced out, and it is helpful to regulate the emails sent to your customer base. The bottom line is that email marketing is a free way to market and attract quality traffic for less. Sean WolÞngton is an Owner of BZ He can be contacted at 866.802.5753, or by email at swolÞ 22 subscribe today at