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Autosuccess Feb06

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

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

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

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    Autosuccess Feb06 Autosuccess Feb06 Document Transcript

    • AutoSuccess Must-see Companies NADA 2006, page 4a division of Systems Marketing, Inc. February 2006
    • > Ahh, that empty lot smell. Refreshing isnt it, to watch your inventory disappear. With BlueSkys new SM Auto Delivery Agent , it will. We’ll work each lead for you until they buy or die. SM So if you want to convert more leads to sales, reserve your Auto Delivery Agent now –– and enjoy the sweet smell of success. Call 1-800-BLUESKY to get yours, or go to BLUESKYMARKETING.com now. N E W A U T O D E L I V E R Y A G E N T SM - O N L I N E L E A D M A N A G E M E N T S Y S T E M QUALITY INTERNET LEADS - RESPONSIVE DIRECT MAIL
    • UST-SEE COMPANI O R ADA 200 L A N D O F L O R I D A American Auto Exchange: Delivering innovative solutions that streamline and maximize dealers’ sales operations to include: inventory optimization, Þnance menu, reporting, and dealer desking tools. Auto Dealer TrafÞc, Inc. is the automotive search engine marketing experts. ADT’s focus on SEO, Paid Search, and analytics has made it the premier company in the automotive arena. ADT’s proprietary technology analyzes your search marketing efforts easily. Count on us to give your marketing dollars a ROI! Established in 1999 Auto Internet Marketing has been generating both New Vehicle and Finance Leads of superior quality and content since the beginning of the Internet Revolution. Our unique marketing platform promotes FREE exposure for our Dealers, resulting in FREE leads every month! We look forward to speaking with you soon!BZ Results is a digital marketing & consulting company currently working with 8 of the top 10 eCRM Dealers of the year. BZ offers CRM,Web marketing, Search Engine & Email marketing, Websites, New & Pre-Owned, F&I, Service, Parts and specializes in BDC’s. BZset up the largest BDC in the world which sold 384 vehicles in one month. They also work with the #1 Pre-Owned eDealer, #1 HondaeDealer, #1 Chevy eDealer and the #1 eDealer Group in the world. The Cobalt Group and Dealix Corporation specialize in helping dealers and auto manufacturers maximize every proÞt center by helping them: meet, sell to, and retain customers for repeat business in the most efÞcient manner possible by providing a comprehensive suite of services, including the highest quality Internet sales leads and marketing services, cutting edge technology, and the expertise of automotive industry veterans. HomeNet, Inc. is a technology provider offering online vehicle inventory solutions to help automotive dealers manage their vehicle inventory and increase online sales. HomeNet’s Inventory Online (IOL) system allows control of the acquisition, editing and distribution of vehicle data. IOL interfaces with all major DMS and broadcasts accurate vehicle inventory information and photos across the Web. Impact Direct develops innovative sited sales and direct marketing campaigns that light up your phones, Þll up your showroom and deliver vehicles. All with out taking a percentage of your gross proÞt. InterActive Financial Marketing Group offers new and used car dealers lead generation, direct mail marketing, CRM, advertising and Þnancing by leveraging it’s brands; Carloan.com, Autoloan.com, 1.800.CarLoan and IFMG Direct. J&L Marketing’s solid reputation as the industry leader for direct marketing campaigns is based on the strong relationships we form, focused marketing, and the increased proÞts we provide for our dealers. We take great pride in our expertise to build the best campaigns for your individual needs. This remarkable success that J&L provides for over a thousand dealers a year can be yours, too. We provide a fully integrated web-based software solution for F&I, leasing, special Þnance, BDC, inventory management and sales management reports. We also provide direct mail, Internet leads, credit hotlines and website hosting. TimeHighway.com is the premier, real-time, online service appointment scheduling solution. It will increase customer satisfaction and retention, service department efÞciency and revenue, load balance service bays and drive trafÞc to the dealer’s website. Are your customers returning to your dealership for scheduled maintenance? If not, let us help!!! Ultimate Warranty provides leading-edge service contracts and ancillary F&I products. More than 8,000 dealers have recognized the advantages and have beneÞted from selling Ultimate Warranty products. Stop by the booth, and Ultimate Warranty can show you how they are making a great thing even better in 2006.
    • 462391421172120Visit Cobalt and Dealix at TheHacienda Presidential Suite in theRosen Centre Hotel, adjacent tothe Convention Center. Saturday toMonday (2/11-13) from 8am - 7pm &Tuesday (2/14) from 8am - 12pm2774380412013448272815484074
    • 8 eCRM Dealers of the Year: How They Did It PatrickLuck 12 The Major Obstacle to Buying BrianTracyINSID Chevy/Toyota Dealer Finds Direct Mail Formula That Works Percent, and Net ProÞt Doubles in Just One Year 14 Case Study: Market Share Increases From 8 to 20 Value or What’s In It For Me If You Build It, They Will Come 13 18 19 GlennShepard ScottJoseph AnthonyHall ChrisHanson Phone Dynamics 20 MarkTewart Cutting Edge Strategies Used by Leading Internet Dealers 22 DavidKain How to Keep Opt-out Rates Low 24 BrianEpro The Core Sources of Personal Trust 26 DougHall Dealing With Dysfunctional Behavior in the Workplace 30 TomGegax Manage Learning to Improve Dealer Technician Performance 32 JohnZonneveld How to Decode What the Customer Really Means 36 DavidJacobson Just Professional 38 High-performance Selling is More Than MichaelYork How to Build Value in Your Presentation 40 SteveLevin Avoiding a Warranty Audit 42 You Can Avoid a Warranty Audit by Making Necessary Changes GreggTompkinsNADA 2006 Where Should I Sit 44 PattiWood the Right Answer, Ask the Right Question 45 Setting Appointments: If You Want JeffMorrill 46 Stop by and see Lessons Learned in a Year of Innovation SeanWolfington us at the NADA 2006 Convention at booth On-site Sales Events 48 The Power of Third-Party Credibility JoshWeaver#3816 Picture This 50 The Power of Photos for Simple Internet Marketing EricHinkle Zechariah 2:8 “For whoever touches you 3411 Pinnacle Gardens Drive Louisville, Kentucky 40245 touches the apple of my eye.” Toll Free: 877.818.6620 Facsimile: 502.588.3170 Patrick Luck, Editor & Publisher • pluck01@autosuccess.biz Courtney Paris, Sales-improvement Strategist Matthew 5:16 Susan Givens, Vice President • chill-paris04@autosuccess.biz “Let your light so shine before • sgivens02@autosuccess.biz Brian Ankney, Sales-improvement Strategist men, that they may see your Jacki Monce, Executive Assistant • brian01@autosuccess.biz • jmonce05@autosuccess.biz Brian Balash, good works, and glorify your Thomas Williams, Creative Director Sales-improvement Strategist • twilliams03@autosuccess.biz • bbalash06@autosuccess.biz Father which is in heaven.” God Bless America AutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccess.biz. Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content, and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. Always confer with legal counsel before implementing changes in procedures. © All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3411 Pinnacle Gardens Drive, Louisville, Kentucky 40245.
    • MUST-SEECOMPANIESNADA 2006
    • fs feature solution PatrickLuck eCRM Dealers of the Year: How They Did ItWe dedicated last month’s issue to honoring Top 10 Mistakes in eCRM dominate the search engine with “free”the Top 10 eCRM Dealers of the year. Our 1. Leadership fails to get involved, measure results, not just sponsored placement.annual eCRM Dealers of the Year award is results and hold the team accountable.unlike any other industry award in that we 8. Most dealer Web sites are no more thanlook at dealers’ results. We look at volume 2. Dealers assume they only need a good an online brochure that is often notof leads, sales and how well the dealers use Web site and CRM tool to get good updated and not very interactive.eCommerce and CRM to promote all of their results, and you need a lot more.profit centers: new, used, F and I, service, 9. Dealers have the right technology butparts, etc. 3. Dealers fail to invest in the right strategy, lack the people, processes and pricing to marketing, people, place, process and turn leads into profitable sales.In this issue, we will show you how the technology.top dealers accomplished their results. The 10. Dealers fail to track and measure 4. Dealers sign up with an eCRM vendoreCRM Dealers of the Year sold 80 to 700 results. that’s incapable of providing everythingadditional units each month, while using their they need to succeed.eCRM strategy and vision to drive additional Avoid and correct these mistakes, and you’llrevenue to all their profit centers. Success 5. Dealers fail to market and generate find yourself saving time and money whilelike this is possible for all dealers who have enough traffic to their Web sites. improving results and sales. Our industrythe know-how and ability to implement has been scrambling to leverage technology,it. In an effort to share best practices with 6. Dealers don’t leverage the power of e- and as a result, many dealers waste time andour readers, we’re publishing the Top 10 mail marketing to drive traffic. money on a Web site and CRM tool that areMistakes as well as our conversations with tall on expense and distractions and shortthis year’s award winners below. 7. Most dealers don’t know how to on results. To avoid the top 10 mistakes, fix them at your dealership or build them out of your strategy. We interviewed this year’s award-winning dealers about each topic and CONGRATULATIONS eCRM Dealers of the Year compiled their answers below. Leadership Involvement HerbChambers.com Top eCRM dealers tell us that having the dealer and general manager heavily involved RedMcCombs.com in initial planning, strategy sessions and decision making is crucial. Continued support and involvement determines the DaveSmithMotors.com success or failure of any eCRM initiative. The right vendor can provide automated HouseofCourtesy.com reports that provide all the information needed to hold the team accountable — provided the leadership team acts on the ParagonCars.com information. CDodge.com Creating Success The top eCRM dealers share the belief Sheehy.com that a good Web site is important, but won’t generate extra sales without a solid marketing strategy, the right process to turn DickHannah.com leads into appointments, the right people to turn appointments into sales, a pricing Schomp.com strategy to project a fair profit and a strategy to hold it all together. Tasca.com The Right eCRM Vendor The top eCRM dealers have been exposed 8 AutoSuccess
    • to companies that promise the right strategyand vision and even claim to offer marketingtools and CRM technology that will generateleads and sales.However, what’s tough to discern is thatmany of these companies actually outsourcea number of products and services. This canleave the dealer to manage working withtwo, three or five different companies whenoriginally they thought they were signing upwith just one. The products don’t integrateas promised, processes are not seamless andthere’s a lack of accountability at the vendorlevel. What can a dealer do when choosinga vendor? Ask for references and lists ofclients and ask them about their satisfaction “Customers love the virtual test drives and we use them to build value andand results. bring customers into the showroom.” Ray VelasquezGenerating TrafÞcThe top eCRM dealers have mastered the gathering e-mails from our parts, service and can target my campaigns, and our customersart of search engine optimization and e-mail sales customers to fuel the e-mail database actually tell us how much they love ourmarketing. As Roy Reutter of Sheehy.com for future digital marketing.” Many of the buzzmails because it’s like watching a mini-tells us, “Search engine optimization top eCRM dealers told us that they are movie about the product. It’s unlike anythingcombined with multi-media buzzmail using digital marketing to increase return on else out there, so it gets their attention.” Ray Velasquez, of Schomp.com, offers another best practice. “We’ve established a database of e-mail addresses so that we can send a mini-movie of a walk-around presentation straight to the customer’s inbox without requiring the customer to open an attachment. We simply select from a suite of multi-media e-mails that use the latest in compressed animation to send a ‘virtual test drive’ of the vehicle they’re interested in.” People and Process The top eCRM dealers agree that with the “Our competition has to pay to appear near the top; we get there for free and right technology, you can handle more customers find us first.” Brian Benstock leads with fewer people. Rad Weaver from RedMcCombs.com explains, “Our CRMcampaigns has enabled us to increase traffic investment, drop cost per sale, boost traffic tool automates so many of our phoneand sales at a lower cost than ever.” and gain incremental sales. and e-mail processes that we can manage thousands of additional leads without addingWhen customers go online to look for E-mail Marketing staff. Without the automation, we’d bea vehicle or a dealership, search engine Brian Benstock tells us, “We know that forced to build a BDC, hire a BDC staff andoptimization allows a dealer to ensure e-mail marketing is cost-effective because incur additional expense to follow up withthat their Web site appears ahead of the everything is measurable, including the each and every lead.”competition. view rate and lead source. In just a couple minutes we can reach hundreds or thousands Brian Benstock echoes the sentiment thatAs Brian Benstock, of ParagonCars.com of customers with just a few clicks for less automation allows you to do more withobserves, “Some vendors will tell you that than the cost of a stamp.” less. “Automation makes it easier to followflash technology is incompatible with SEO, our process, allows us to handle more leadsand that’s just not true. Type ‘Manhattan Bob Tasca III, of Tasca.com, gives a with fewer people and allows our staff toHonda’ into Google and you’ll see us on top. powerful example, “If Ford comes out with focus on what they do best: sell cars. It’s aOur competition has to pay to appear near an Explorer incentive, I can send a buzzmail big part of why we’re selling an additionalthe top; we get there for free.” to everyone who has been in an Explorer. I 200 cars a month. Today, we have more than can select just our lease renewal customers 80,000 e-mail addresses, and if we wereDick Hannah, of DickHannah.com, tells who are currently in an Explorer or even attempting to manage that database withoutus, “We’ve had a lot of success with our e- customers who were in to service their automation, it would be overwhelming.”mail marketing campaigns, so we focus on current Explorer. There’s no limit to how I continued on next page.Feature Solution 9
    • continued continued from page 9. Hiring for Results is a daily and on-going process for our Most of the top eCRM dealers tell us that dealerships. We’ve developed a friendly they look for people who are passionate business development team, and when we about customer service. Scott Gruwell need to bring on someone new, we look for of HouseofCourtesy.com tells us, “They that friendly characteristic and an aptitude don’t need to be superstar sales people or to successfully use the phone and e-mail for www.ParagonCars.com incredibly Internet savvy, but they have to follow-up.” love the phone and love serving the customer. Once we find the right people, I make it my Tracking and Measuring mission to create an environment that they’ll The best part about the Web and CRM is never want to leave, because we all know the that everything is measurable. Roy Reutter cost of employee turnover.” says, “Our technology provider automates the reports we need so it only takes a few Bob Tasca III is also passionate about people. minutes a week to get a great snapshot of “We have a recruiting, hiring and training how things are going, who is excelling and process that we use whenever we’re hiring where the process needs fine-tuning. The for any position in the dealership, and we most important numbers to track are: number www.DickHannah.com like to say that we hire out of inspiration, not of visitors to the Web site, conversion ratio, desperation. That means that we’re always closing ratio, average gross profit and cost on the lookout for energetic, talented people per sale by lead source.” with a good work ethic and an eagerness to learn. We find that the best new employees Again, congratulations! are referrals from someone who already Congratulations to the Top 10 eCRM Dealers works for the Tasca family of dealerships. and thank you for sharing your insight on A new candidate doesn’t necessarily need what it takes to use the Web and CRM to to have automotive experience because our sell more cars. If you have any questions new-hire training program and on-going regarding any of the best practices discussed www.Schomp.com training are so extensive. We have a training in this article, please feel free to visit the company that we bring in for two days every dealers’ Web sites or send an e-mail at the month to help with our training needs.” address below. Dick Hannah sums it up, “Even though the Web and CRM have made an incredible impact on the automotive industry, this still Patrick Luck is the editor and publisher is and always will be a people business, of AutoSuccess Magazine. He can be so nothing is more important than quality contacted at 866.239.3698, or by e-mail at people who are well trained. Training pluck01@autosuccess.biz. www.Tasca.com www.HerbChambers.com www.CDodge.com www.DaveSmithMotors.com www.RedMcCombs.com www.HouseofCourtesy.com www.Sheehy.com 10 AutoSuccess
    • MUST-SEECOMPANIESNADA 2006
    • sts fos ls ms sf fis BrianTracy sales and training solution The Major Obstacle to Buying Two of the greatest rejection, then the biggest obstacle to buying him or her saying something like, “Let me enemies of mankind is the fear of failure. The fear of failure is think it over.” are — and always probably the greatest obstacle to success of have been — fear all kinds in our society. The fear of failure Your job is to do everything possible to and ignorance. Fear does more to hold people back and paralyze reduce or eliminate this fear of failure. feeds on itself. It their decision-making abilities than anyholds us back and causes us to doubt our other factor. Now, here are two things you can doown potential and possibilities. It leads us immediately to put these ideas into action.to interpret events and circumstances in a The reason customers do not buy is becausenegative way. It eats away at us silently, they are afraid of making a mistake, and they First, recognize and acknowledge that everydeep down inside, and keeps our feet on the are afraid of being stuck with the wrong customer starts with a fear of failure or ofbrakes of our own hopes and aspirations. item. They are afraid of paying too much or making a mistake. Look for ways to reassure finding it for sale at a lower price elsewhere. the customer that your product is a safe buy.Ignorance is often the breeding ground They are afraid of being criticized for makingof fear. When you don’t know how to do a poor purchase decision, and they are afraid Second, overcome your own fear of rejectionsomething, you tend to be afraid of it. Much that if the product or service doesn’t work, by acting boldly in every sales situation.failure and frustration is based in ignorance you or your company will not service it and Ask for what you want confidently andand uncertainty. The better you become at they will be left hanging. They are afraid expectantly.something, the less you fear it, until you that your product or service will not do thereach the point at which you eventually have things you claim it will do and will not yieldsuch complete confidence in yourself that the benefits you tell them they will enjoy. Brian Tracy is the chairman and CEOyou have no fear at all. In short, when a customer considers your of Brian Tracy International. He can be offering, he or she is often overwhelmed contacted at 866.300.9881, or by e-mail atIf the biggest obstacle to selling is the fear of with a wave of fears that ultimately leave btracy@autosuccess.biz. V Bo at isit ot NA us h DA #4 00 0 Autobytel generates over $25,000,000 in car sales every week from search engines. You want some? Get your share of the billions of dollars in car sales Autobytel generates for local dealerships nationwide. Search Marketing: Just one more reason why Autobytel has the highest closing ratio.* For more information please call: 1-800 -267-2015 or email: dealerinquiry@autobytel.com. *Among all primary new independent online buying services according to one of the most respected third-party 2005 dealer studies. © 2006 Copyright Autobytel Inc. All rights reserved. Car sales figure based on recent Autobytel search data, NADA data and third-party dealer study. 12
    • sts fos ls ms sf fis GlennShepard marketing solution Chevy/Toyota Dealer Finds Direct Mail Formula That Works Targeted direct mail, mail campaign and sell a lot of cars in a short sales people and managers. Our management e-mail and Internet period of time. and sales staff learn more on the showroom marketing have than they do in the conference room, and they Direct mail has replaced a lot of our emerged as the most are able to pick up a lot of best practices by newspaper advertising because we have been effective way for our working alongside the experts that staff these able to increase our traffic while spending a dealership to advertise events. lot less money, and the cost per sale is almostfor less cost and to measure everything we Glenn Shepard is the president of half of what we used to spend.spend. Shepard Motors in Rockland, ME. He canOne effective new marketing strategy we use One unique element of staffed marketing be contacted at 866.239.3846, or by events is the opportunity for training for our e-mail at gshepard@autosuccess.biz.is an advanced direct-marketing campaign, anevent that is staffed by an automotive trainingcompany. It generates 30 to 50 extra sales and$120,000 to $175,000 in gross profit over athree- to four-day period. O N D 30 0We are committed to master direct marketing.It has increased our sales and profits by A L #1spending less to target more customers. OROOTHBelow is a list of the marketing campaigns IN Band events we conduct: S 06 U 20 E• We use emerging technology and online SE ADAdatabases to generate targeted lists of Nprospects that have in-market status and areready to buy.• We send high-end mailers that are designedto have the customer go to a Web site or callto register for the event.• The customer calls are handled by themarketing company’s call center withemployees that are well trained to scheduleappointments that show. This gives us a fullappointment list before the event begins,which helps us manage the traffic flow moreeffectively. track more > bring back more > close more• The marketing company staffs the eventwith valet parking, greeters, extra sales staff tohandle the extra traffic, extra sales managers Our CRM System provides TOTAL Sales & Service marketingand even back-up F&I managers. Multiple-quote & real-time desking tool• We execute an event-specific sales processon which we are trained, and we typically sell Outgoing & incoming phone tracking and verification10 to 30 extra cars a day at an average gross Ongoing training in your dealership includedprofit of $2,500 to $3,500 per vehicle.• The company stays after the event to help getall of the deals ready for funding by the lenderand to clean up loose ends after the sale. Platinum Sponsor ™These new events are staffed by professionalmarketing companies that bring everything adealership needs to get the results it wants.We knew direct mail worked but we were not Contact us today for a FREE consultationhaving the success that a dealer from our 20 and demonstration—you have to see itgroup was having. So we started doing what to believe it!he was doing. By the third day of the event,we had sold more than 41 units for more 888-695-4278than $147,680 in gross profit. In addition, thecampaign drove a lot of traffic to our Web site, www.highergear.comand we continued to deliver vehicles weeksafter the event. The best part is that after the SHOWROOM • CUSTOMER RELATIONSHIP • LEAD MANAGEMENT SYSTEMevent we did not have the customer concernsthat we normally have when we do a direct-february 2006 13
    • sts fos ls ms sf fis ScottJoseph marketing solution Case Study: Market Share Increases From 8 to 20 Percent, and Net ProÞt Doubles in Just One Year The following is plan to buy a vehicle within six months and gross average and increasing how often a case study of a Johnson City Honda previous customers. people buy. If this could be accomplished, successful growth then according to the store’s current strategy application Date: numbers, they would accomplish what they that illustrates the best July 2004, ongoing really wanted, which was their goal of a 30 practice principles percent increase to their gross profit.mentioned in January’s article. Johnson City Honda, like most auto dealers, faced many difficulties: finding good Johnson City Honda allocated 50 percentProgram Objectives: people, flat or limited growth and customer of its ad budget toward this direct-response • Increase active customer base by 10 defections. Almost in spite of itself, Johnson growth strategy. Their marketing partner percent City Honda had built a profitable business quickly set up a variable data print • Increase gross per transaction by 10 solely off of the Honda brand. It had built campaign management system. Database percent a customer base of more than 12,000 merging combined information from • Increase the purchase frequency by people. Its satisfaction scores were good several databases. All data was cleaned for 10 percent and, according to its management team, it duplications and misspellings. Data mining appeared to have a steady stream of repeat processes were put into place to discoverSigniÞcant Results Reported by buyers. hidden opportunities and to be able toDealership: properly segment customers. Specialized • From July 2004 through December There was nothing that closely resembled design services created document layouts 2004, profitability increased five a strategy or game plan to grow business. for all variable data. Resource management was essential for storing, tracking, updating times over the previous six months. Once a customer was sold, the dealership and managing a customer’s database assets. • 2005 year-end profitability has never solicited that person again, with the Response monitoring tracks and analyzes doubled over 2004’s year end. exception of Christmas and birthday cards feedback to all campaigns. • Market share increased from 8 to 20 or an occasional service reminder. Almost percent. all their advertising was institutional rather The result was a mix of highly creative, • CSI scores are consistently above than direct-response. customized direct-mail pieces and e-mail zone and national numbers. campaigns. Sales and service mail pieces • Achieved 250 percent above the 2005 Thoroughly analyzing their previous include weekly prospecting letters, high- certified used-car projection. customer database revealed several impact sales promotions, personalized Web • 2005 customer pay labor is up 32 troubling areas. Yes, the dealership had sites that are customized to each potential percent. accumulated more than 12,000 customers buyer, e-mail confirmations and follow-up but 68 percent had not bought another car mail letters. All of these can be completelyDealership: from the dealership in three years. Even customized with text and variable images.Johnson City Honda more troubling was that 92 percent of those Depending on the data on each individual,www.johnsoncityhonda.com inactive customers did not visit the service all letter content is customized according department within the last 12 months. This to each individual’s buying habits andJohnson City Honda is located in Johnson store, regardless of its satisfaction scores, interests. For instance, if a customerCity, Tenn. The store has an experienced had a defection problem. leases, then the letters emphasize leaseHonda general manager who has an offers. If the customer has a history ofexceptional track record for satisfying Johnson City Honda did keep good records buying used cars, then the letter highlightscustomers, developing strong sales teams of its customers by distinguishing if the used-vehicle offers.and in fixed operations. The location is well- customer purchased, leased, bought newknown and easily accessible. or bought used. Term-end dates, monthly Johnson City Honda is pleased with the payments, customer birthdays, last repair results of its efforts. “To grow the dealershipHardware: order dates and mileage were recorded. at the rate we wanted, our advertising dollarsDepending on the advertisement, high- needed to produce more opportunities forspeed Heidelberg digimaster 9110 or Johnson City Honda’s management our sales staff and improve the qualityKodak NexPress 2100 digital production explained that traffic was its number one of our traffic,” said Joe Trujillo, generalcolor press. challenge to growing sales and profit. They manager and ownership partner of Johnson wanted an advertising strategy that was cost- City Honda. “Our first 18 months have beenFinishing: effective and would grow their gross profit outstanding. Our profit doubled from 2004 toVaries depending on the advertisement, more than 30 percent. 2005, and our market share has grown fromfolding, sealing and inserting equipment that 8 to 20 percent.”is used for various products. Thier marketing partner created a growth Scott Joseph is the president of J&L strategy focused on growing the following Marketing Inc. He can be contacted atTarget Audience: objectives by 10 percent: increasing their 866.429.6846, or by e-mail atProspects interested in Honda vehicles that active customer database, increasing their sjoseph@autosuccess.biz. 14
    • MUST-SEECOMPANIESNADA 2006
    • WESTERN USThe Dealix Dealer NewsletterThe Leading Resource for Online Automotive Sales Larry Moreci, Internet Sales Manager Honda of Stevens Creek SAN JOSE, CA STEVE GAINES Steve Gaines, Owner; Vince Vahsholtz, Internet Manager Bell Road Automall PHOENIX, AZ We Salute VINCE VAHSHOLTZ Steve Pangelina, Internet /Fleet Manager the Top Santa Cruz Nissan Dodge VW SANTA CRUZ, CA Internet Sales Vic Simonian, Internet Sales Manager Professionals STEVE PANGELINA Scott Robinson Honda TORRANCE, CA of 2005 Mike Lavezzi, Internet Director Pacific Honda SAN DIEGO, CA MIKE LAVEZZI Mark Ray, Internet Sales Manager Future Nissan To learn more about these ROSEVILLE, CA dealers’ winning strategies, visit www.dealix.com or Tom MacMillin, Internet Consultant Shack Findlay Honda call 800. 717. 8079. MARK RAY HENDERSON, NV Aimee O’brien, Internet Sales Weston Kia GRESHAM, OR Drive Success. AIMEE O’BRIEN Jason Volkert, Internet Sales Manager Hyundai of Everett EVERETT, WA DJ Dougherty, Internet Sales Manager Peninsula Subaru MUST-SEE DJ DOUGHERTY BREMERTON, WA COMPANIES NADA 2006 C O R P O R AT I O N A Division of The Cobalt Group, Inc.
    • CENTRAL US EASTERN US Gary Clark, Internet Sales; Tony Bell, Internet Director Gary Deetz, Internet Sales OBrien Team Hyundai Heuberger Motors FORT MYERS, FL GARY CLARK COLORADO SPRINGS, CO TONY BELL Jennifer Picheco, Director of E-Commerce Gilbert Chavez, Internet Director Germain Motor Group Phil Long Motor Group NAPLES, FL COLORADO SPRINGS, CO GARY DEETZ Harry Kim, Internet Director JENNIFER PICHECO Michael Waldrop, Director of Marketing Muller Honda Coggin Honda of St. Augustine ST. AUGUSTINE, FL HIGHLAND PARK, IL Craig Criswell, Internet Director Don Graff, Director of E-Commerce Burt’s Automotive Network Flemington Ford Lincoln Mercury Nissan ENGLEWOOD, CO FLEMINGTON, NJGILBERT CHAVEZ GUIDO DAVILA Internet Sales Team Guido Davila, Internet Manager Gartner Buick Hyundai Saab King Hyundai AURORA, IL DEERFIELD BEACH, FL Brad Hull, Internet Sales Manager HARRY KIM Rosen Honda MIKE ZAVELL Michael Britt, Internet Sales GURNEE, IL Honda of Nanuet NANUET, NY Gregg Elmore, Internet Sales–Toyota Toyota of Naperville Mike Zavell, Internet Sales Manager NAPERVILLE, IL Gunther Volkswagen of Coconut Creek POMPANO BEACH, FL DIANNE LAZAR NIKKI BURNS Dianne Lazar, Internet Sales Manager Family Hyundai Nikki Burns, Internet Sales Manager TINLEY PARK, IL Toyota of Wilmington WILMINGTON, NC Howard Bass, Internet Manager; Jeff Bogle, Internet Manager; HOWARD BASS Thomas Scott, Internet Manager RON DAVENPORT Ron Davenport, Internet Sales Manager; North Freeway Hyundai Mark Lenny, Internet Sales Manager HOUSTON, TX Keenan Honda DOYLESTOWN, PA Don Boyle, General Sales Manager; Ron Wilkin, New Car Sales Rusty Strange, Internet Manager Honda Cars of McKinney Beaman Pontiac GMC JEFF BOGLE McKINNEY, TX RUSTY STRANGE NASHVILLE, TN
    • sts fos ls ms sf fis AnthonyHall sales and training solution Value or What’s In It for Me The more a customer must understand and know your product as Most important, get all parties involved. understands what’s in well as your competitors. The customer must physically participate it for him or her the with you during the presentation of the more he or she will be Your dealership has many resources that will vehicle. Use his or her senses to build more willing to spend on a provide you with the needed information, emotions and desire. The customer must vehicle. such as source books, factory videos, DVDs, touch, listen, feel and smell the new car. etc. Other good sources are automotive The sale of an automobile is a magical andValue is established during the presentation magazines such as “Road & Track,” “Car and emotional experience, not analytical. Sell tophase of the sale. It is the longest, most Driver” and “AutoWeek.” These are excellent the customer’s emotions. Remember to useimportant step in the entire sales process. resources from which to gather information your customers’ names and the names of theirYou should slow down, sell the value, sell the about you and your competitor’s products. children while presenting the vehicle. Painttechnology, sell the safety, sell the styling and You can also look for and listen to automotive mental pictures and put the customer in it.sell the excitement. T.V. and radio commercials. The words and pictures used to describe features and benefits Steps of the walk-aroundValue is a measurement of benefits. People can also be used in your presentations. 1. Front of the caraccept price, and they buy value based on 2. Under the hood of the carthe amount of benefits the vehicle provides Next, find out the hot buttons and motives 3. Driver’s sidethem. The perception of value is based on of the customer, because you can start to 4. Back of the vehiclethe knowledge of the benefits provided by the formulate the best way to present your vehicle 5. Passenger’s sidesales person. As value increases, the budget based on the customer’s needs and desires. 6. Inside the vehicleof the customer increases. When value is Customize every presentation directed at Use the same technology vocabulary thelower than price, the customer feels he or what is important to each customer. manufacturer uses in brochures, videos andshe is not getting a good deal. When value other literature. They are not plastic headlampmeets price, they feel the deal is OK, but The six-point walk-around should tell covers, they are high-impact Lexan. Thewhen value exceeds price, they feel like it’s an organized, complete story that covers vehicle has air-cooled, ventilated disk brakea bargain. But before you can sell value, you all needs and benefits of your customer. rotors, aluminum alloys, thermal composite intake manifold, sheet molded composite, high-strength forged steel, sequential RAISE YOUR CUSTOMER’S electronic fuel injection, etc. CREDIT SCORES!!! Get excited about the vehicle with the customer. Enthusiasm creates positive *50 to 150 Points emotions during the presentation. Show Increase your profit potential by directly affecting your customers excitement in your voice, and be animated. If credit score before submitting your deal!!! you don’t believe in what you’re doing, why ! Specialized Bankruptcy Letter should someone else? (10 to 20% Response Ratio) SERIOUSLY! Bureau Update Training Know all about your vehicle and your (All Three Bureaus Thru One Source) competitor’s vehicles. Only use four or five Phone Support (How to Get The Appointment! Scripts Provided) features that directly relate to your customer’s hot buttons at each of the six points of the walk- ! Special Finance Training around. We must have complete knowledge (From The Ground Up) Lender Recommendations and information of the customer, our vehicle (Get The Aggressive Lenders) and our competitors. Professionals learn and Sales Training practice this and achieve profitable results. (How To Ask For The Gross And Get It) Inventory management (What Cars To Buy For Max Profit) People will pay more for technology if they understand how it benefits them. Customers ! Special Finance Leads 800 Vanity Numbers (1-888-Get-A-Car and Others) buy safety, performance, economy, durability Internet Vanity Websites (www.getacar.com) and utility. Vehicles offer more today for less Low Cost TV Production (Production And Time Buy Assistance) money than ever, but we tell less about the Low Cost Infomercials that work! (Customized) benefits of the vehicles. What is wrong with Turn more of your advertising dollars into gross producing customers. this picture? 30 years combined experience in special finance, a vertising and credit bureau updating. Present the vehicle like a professional, and get s is the REAL DEAL!!! paid like a professional. Call now and see dramatic results within 30 days!!! X FACTORS, Inc. 1.800.790.1212 Anthony Hall is a training consultant Call for scheduling at Ziegler Supersystems. He can be (Scheduling limited to one dealer per market). *credit scores may vary contacted at 800.610.9047, or by e-mail at ahall@autosuccess.biz. 18
    • sts fos ls ms sf fis ChrisHanson sales and training solution If You Build It, They Will Come If you’re tired of your customers?” I think she said that when your J.O.B. (just over a customer who had bought 15 vehicles in broke) or you’re new the last 5 years from me gave me a deer rifle. in the business and Or maybe she said it because every year you want to build a when one of my customers comes back fromcareer, I am here to tell you, if you build it, Lake Michigan, he brings me a bunch ofthey will come. vacuumed-packed salmon filets. I know she said it one winter when it was 30 below andIn order to really succeed in this business my customer took delivery of his new caras a sales person your goal is not to just sell and then drove to my place to help me un-cars. Your goal isn’t even to just follow-up thaw my pipes after he had heard that theywith your customers. To really succeed in froze. I can give you story after story aboutthis business, you must create raving fans. my raving fans.Have you read the book, “Raving Fans: I created a customer base that not onlySatisfied Customers Are Not Enough,” by showed their loyalty by purchasing all theirSheldon Bowles and Ken Blanchard? In vehicles from me but sent their friends andCanada in the 1970s when gas stations went relatives in to purchase from me as well;to self-service, he went with full-service, and, more important, they respected me asright over the top. When you pulled into his a sales person, considered me a friend andgas station, someone started pumping gas, truly cared about me, my family and oursomeone looked under your hood, another well-being.person served you coffee and handed youa newspaper to read while they vacuumed When you make a new contact, make sureout your car. He blew away the competition that everything you do is over the top. Whenbecause he created raving fans, customers you gain a customer, you need to do thethat told everyone else about his gas station. same. They are yours to lose.You see, once they experienced his service,everything else was second-rate. Don’t sell yourself short. Your customers do not want to shop around for vehicles. ThrowYou can create raving fans and blow away yourself out there and lay it on the line. I’myour competition. If you build a follow- not talking about giving lots of free stuffup process like no other, really wow your away. I’m talking about a process, specificcustomers, everyone else will be second-rate. things you do all through your sold and unsold process.In eight years of selling cars, I createdraving fans. Do you know how I broke all If you have been selling cars for a while andthe sales records at the dealership I worked you want to create a customer base so strongat and became noticed by DaimlerChrysler? that no one can take it away from you, ifI created raving fans. I had specific things I you want to create raving fans but you don’tdid throughout my whole follow-up process. know where to start, please e-mail me andCustomers that would never think of going let’s get you started. I have a system thatanywhere else. If they did, the competition you can put into place to get you on the rightwould make me look even better. Once they track. Don’t just sell cars and follow-up,had dealt with me, whether they purchased create raving fans.a vehicle or not, everyone else was second-rate. Most sales people do not do a good job,so when you take things to the next level— over the top — you create raving fans. Chris Hanson is the president of Follow Up for Success, Inc. He can be contactedMy wife always gave me a hard time about at 800.901.2862, or by e-mail atit. She would say, “What is it that you do for chanson@autosuccess.biz.february 2006 19
    • sts fos ls ms sf fis MarkTewart sales and training solution Phone Dynamics To increase sales When you’re not scheduled on the floor, most effective forms of communicating, they and profits, spend make some calls, and mystery-shop other need to be able to see you in their mind’s time preparing and dealerships in the surrounding area and eyes. When you stand up, you will gesture monitoring the phone listen to your competitors. What you’ll hear more, use more voice inflection and voice opportunities as you in those phone calls is so poor, that you will tone and be a much better communicator would walk-in traffic. be shocked. Shocked not only by what you than if you sit.A typical dealership has as many phone sales hear, but also by the fact that you may be justopportunities as it has walk-in traffic. as poor in your phone skills. 3. Smile before you dial or pick up the phone. Allow the customer to hear andAn effective system has the following: There are basically eight different types of see you through the phone. Give them the • Training for the receptionist incoming calls: excitement that will allow you to stand apart • Training for the sales people and • Information from other sales people. Who do you think management • Finance they will choose to see? • A uniform and cohesive way to handle • Lease incoming phone opportunities • Trade 4. Think like a customer. Share an attitude of • A log that treats phone opportunities as • Bad credit servitude with your customer. The origin of serious as walk-ins • Advertisement the word sell is to serve. • A phone prompt card or other device • Price that gives direction to the sales person • Best price 5. Ninety percent of sales opportunities during an incoming phone call are lost in the first 10 seconds because the • A management review system of all Find a partner and role play each one of sales person has not created a direction for incoming phone opportunities the eight types of incoming calls. Do a the call by immediately asking questions. • A formal call-back system typical sales call involving any of the eight Ask questions about the vehicle he or she types of phone calls as you would normally is buying and about the vehicle he or she handle. Personally mystery-shop your own is driving now. Use the answers you get dealership and listen to what the receptionist, to create dialogue and rapport with the Sell More Cars other sales people and managers are saying customer. and doing. 6. Get the customer’s number, name and set With CarTube The Internet has increased phone an appointment. Do these next three things opportunities. Effective Internet sales people and you will accomplish what the majority know that to increase sales from the Internet of sales people never do. Ask the customer if Includes free software to create ßyers you must move the customer from the he or she is calling from home or work and Internet and e-mail to the phone and then an get that number. Ask the customer to spell his Attaches easily to your entire inventory appointment. or her first and last name. Ask the customer Great for after-hours shoppers if he or she will be available to come in and Here are some simple phone tips that look at the vehicle and get some figures this Quality weather resistant construction can increase your phone effectiveness afternoon or evening. Give the customer an immediately. assumptive, alternative choice. This silent salesperson works 24/7 1. Respect the phone customer. The first The opportunity exists for you to increase step to increasing your phone effectiveness your sales immediately through better phone is to decide to treat your phone opportunities techniques. E-mail me at the address below with the same respect as your walk-in with the word phone in the subject line and opportunities. Phone customers tend to be I will send you five ways to handle the even better prospects. When someone has question of best price over the phone. had dialogue with you and begins a sales process that creates trust, your chances of closing the sale and making a higher commission go up. for 2. Stand up while taking or making a phone Call ree a F ple! call, because you increase your ability to Sam 1.866.973.9490 breathe and to use your legs and upper body Mark Tewart is the president of Tewart to create body language. Why does body Enterprises. He can be contacted www.cartube.com language matter if they can’t see you? When people can’t see you and they lose one of the at 866.429.6844, or by e-mail at mtewart@autosuccess.biz. 20
    • Take our customers...Please!Why chase false leads when you can have real,qualified customers?She completed an extensive application, pre-qualifiedwith flying colors, received her purchase check, andnow she just needs a car. Want her contact info?Become a myAutoloan Preferred Dealer now.Our approved customers arrive with financing in place.Our qualified customers have passed an extensiveverification process through our Preferred Placement®technology. Now, all you have to do is put them in thedriver’s seat.Each month, we approve hundreds of qualified, ready-to-buy customers in your area. They prefer all brands,all models, and great service. But they don’t requireselling – they’re ready to buy!To choose your spot on our Preferred Dealer Networkand start getting these customers, give us a call toll freeat 866.625.2668, send an email to contact@myautoloan.com,or visit our Web Site at www.myautoloan.com/dealers.In partnership with Complete Customer Contact Details Exclusive Territories Entire Credit Spectrum Applicants Exclusive Real-Time Leads by Zip Code 24/7 Online Dealer Access Customers are Buying Now REAL LENDERS - REAL LOANS - REAL TIME
    • sts fos ls ms sf fis DavidKain marketing solution Cutting Edge Strategies Used by Leading Internet Dealers There are lots of new use algorithms to predict the average time it an electronic newsletter is an effective tool processes, tools and takes to get a live answer and the average to communicate long-term. I have seen this technologies that can length of typical phone conversations. This tool used by a number of leading Internet help enhance your technology allows call specialists to go right dealers to build their brands in a casual and sales and profit results. from good-bye to hello. Predictive dialers entertaining format. The e-newsletter that Here are a few that increase the number of calls that your staff works best is the kind that allows you tocould help at your dealership. can make and the number of times you create links to sales and service specials and connect with a live prospect. It is common then allows customers to submit requestsCall until you connect for productivity to double or triple when you for more information just like they submitWithout question, the most effective strategy switch to a predictive dialer. leads on your Web site. In addition, somein your quest to set appointments with your e-newsletters provide reporting tools thatprospects is to “call until you connect.” As Voicemail and answering machine search capture the e-mail addresses of the readerssimple as it sounds, this strategy is the best technologies and track their clicks on the newsletter,method of all the strategies in connecting This unique technology allows you to which makes it easy to follow up if theywith your prospects. pre-record prospect-specific messages and showed interest in a specific vehicle or then enables you to deliver this phone call special.Predictive dialers to tens of thousands of your customersSome dealerships employ a tool called a instantly. The companies that offer this Postcards and handwritten notespredictive dialer to increase productivity service employ Internet and advanced Some leading Internet dealers are usingin their business development centers or telephone technologies to save the costs some old-fashioned communicationInternet call centers. Predictive dialers use and frustrations that can occur in making approaches to connect with their customersmore telephone lines per call center staff the same number of calls in person. I like — pen and paper. When you open yourand are used to initiate phone calls while this idea because the message can be more mailbox you typically read items with actualcall specialists are talking to prospects. They consistent and be really convincing to the handwriting while tossing items that are prospects that are touched by the dealership. computer-generated or computer labeled. When I was a floor sales person I got the Video e-mails best response from handwritten cards that A great new method to ‘wow’ your took just a couple of minutes to compose showroom and Internet prospects is to and mail. With desktop printing capabilities communicate using video e-mails. This some dealerships are sending out notes and technology allows your dealership to create postcards with pictures of the vehicle the a video using an inexpensive Web camera customer requested along with a picture of attached to a computer. The best way to use it themselves. It’s not really cutting edge but it is to make the message personal just like you has a big effect for little effort. would a personally typed e-mail. A dealer friend of mine sends about 2,000 video Two-way pagers e-mails each month with an opening rate Some leading dealers use a wireless by their recipients of 38 percent. The best device that notifies them when a lead is part is that the dealership is sent an e-mail submitted, and they respond immediately. when the message is viewed so it can follow An eCommerce director for a leading auto up by e-mail or phone nearly immediately group told me that the dealership’s close rate with an additional message. This real-time increased by 20 percent if they were able to communication method really differentiates respond within 15 minutes. a dealership from its competition. There are many more strategies at work Two-week press that can assist you in reaching your goals The two-week press process uses a and I will review them from time to time combination of communication techniques, so you can stay on the cutting edge. Keep e-mail and telephone messages to motivate experimenting and trying new things. You‚ll an Internet customer to respond. This get a few cuts, but being on the edge tends to intensive technique works, and if you decide deliver the best results. you would like to implement it, e-mail me and I will send it to you. David Kain is the automotive Internet training specialist at Kain Automotive Inc. E-newsletters He can be contacted at 800.385.0095, or A sales pitch is not always appreciated by by e-mail at dkain@autosuccess.biz, or your prospects and customers, which is why visit www.kainautomotive.com. 22
    • Why limit your profit improvement to just F&I? There are many pieces to the profit puzzle. Some companies focus on just one, and that’s not good for your bottom line— or your customers.At Resource Automotive, our 40 yearheritage has taught us that long-term profitability comes froma balanced strategy of driving revenues through processimprovement in all departments, not just one.Each of our products and services embeds innovative technology See us at NADA booth #2600as well as adherence to regulatory and compliance requirementswithin the automotive industry. Additionally, all of our tools aretailored to fit your specific sales, service and customer satisfactionobjectives.For immediate impact—throughout your organization—call www.resourceautomotive.com (866) 662-7356us today.
    • sts fos ls ms sf fis BrianEpro marketing solution How to Keep Opt-out Rates Low A challenge facing them. For example, hammering your e- ample opportunity for the leads to escalate Internet sales mail list with sales promotion after sales their sales engagement with the dealership managers today is e- promotion will result in a high opt-out by requesting a test drive, filling out a mail list burnout. The rate. If your lead is not at the right point credit application or requesting a service Wall Street Journal in the sales cycle, a promotion like this is appointment. The Curry Auto Group’s e- recently cited a irrelevant. How many times can you send newsletters average a 25 percent open rate,Forrester Research survey that puts the the same individual a hard-sell message and their November e-newsletters receivedaverage opt-out rate for retail e-mail about limited time financing? Put yourself more than 32,000 hits. A large portion ofmarketing at 9 percent. in the shoes of the recipient of these e- those hits were customers and prospects mails. How many would it take before you linking back to their dealerships andOpt-outs mean that your pool of leads is opted out? inventory pages on their Web sites.diminishing. Marketing to a large pool ofleads is generally better than marketing to a Sending a monthly e-mail newsletter is a 2. Higginbotham Mercedes-Benz of Jackson,small one. And many people don’t buy right great way to keep opt-out rates low, because Miss., supports the arts in its community. Itaway, but they do buy eventually. According the format is perfect for providing a balance published an article in the November issueto Kain Automotive, 55 percent of sales of hard-sell and soft-sell content. By of its e-newsletter promoting its partnershipoccur two weeks or more after the lead’s balancing your messages, you can appeal with the Mississippi Museum of Fineinitial contact with your dealership, and to subscribers at all levels of the sales Arts. The dealership provides a free one-25 percent occur after eight weeks. So it cycle. Here are some examples of the way year family membership to the museumis well worth your while to keep prospects e-newsletters can be used to enhance your to each buyer of a new automobile. Theinterested and engaged until they are ready brand, build relationships, drive leads and museum Web site received dozens of hitsto buy. keep opt-out rates low. from the e-newsletter, and Higginbotham received several “thank you” e-mails fromWhy do people opt out? Typically it occurs 1. The Curry Auto Group sends a monthly subscribers. When was the last time a salesbecause your e-mails are not relevant to e-newsletter to more than 60,000 subscribers prospect thanked you for sending them that contains an optimal balance of hard-sell an e-mail? This is an excellent example and soft-sell articles. For subscribers who are of building the brand by showing that the ready to buy, there are links to the dealership dealership is taking an active part in the inventory page, a credit application and local community. Higginbotham’s average special promotions. For subscribers who opt-out rate is three tenths of 1 percent, and are still shopping around, the e-newsletter its e-newsletter is producing consistently includes vehicle reviews. Every vehicle high hits back to its Web site every month. review article contains a link for readers to request a test drive appointment, so if they 3. Central Florida Chrysler/Jeep/Dodge are intrigued by the article they can easily provided a link in its September e-newsletter take the next step and identify themselves as encouraging subscribers to visit the hot leads. American Red Cross Web site. Nearly 100 subscribers followed the link to support For leads who are not yet ready to get hurricane Katrina relief efforts. From a serious, there are lifestyle articles that will branding standpoint, the dealership showed keep them engaged and prevent opt-outs that it has a larger perspective on world until they are ready to buy. Examples of events. The dealership’s average opt-out lifestyle content include articles about local rate is 1 percent, and it experiences a huge travel destinations, seasonal features and increase in Web site traffic after each e- movie reviews. newsletter sent. For existing customers, the e-newsletter So the biggest weapon you have to combat contains articles about road safety tips e-mail list burnout may simply be balance. and service specials. This type of content By providing the right balance of hard-sell continues to build their relationship with the and soft-sell content, you can stay relevant dealership even after the sale. It encourages to your sales prospects and still effectively higher lifetime value through service drive sales to your dealership. revenue and future vehicle sales. Brian Epro is the marketing manager for So the e-newsletter is useful and relevant the Automotive Services Group of IMN. to leads no matter where they are in the He can be contacted at 866.393.3919, or buying process. And the newsletter provides by email at bepro@autosuccess.biz. 24
    • MUST-SEE COMPANIES NADA 2006SOME IDEAS ARE TOO GOOD TO KEEP TO YOURSELF.One great idea leads to another.While envisioning the new Ultimate Warranty, a number of ideas cameto mind. Bringing those ideas to life is what creates forward motion.While just the first of many solutions, you can now file a claim online.Try it once, and you may never pick up the phone again. Just anotherway that Ultimate Warranty is setting a new standard of excellence. 800.576.5113 WWW.UWC21.COMSETTING STANDARDS. ACCELERATING EXCELLENCE. Visit us at NADA booth #4074Service Contracts Gap Etch Roadside And So Much More Products Insured By Top Rated Insurance Carriers
    • sts fos ls ms sf fis DougHall sales and training solution The Core Sources of Personal Trust While likeability is likeability). Competence covers your the Web. Because some of what they find is the trait that sales knowledge about your company’s not true, you should become your customer’s people try to develop products and services. best resource. most often, research indicates it’s the 5. Likeability. This is how friendly and Do everything you can to be the expert about least important approachable you are as a sales person. what you’re selling. No one should knowwhen it comes to developing something Surprisingly, likeability was the least more about you and your competitors’ carsmore important: the ability to earn your important trait and also the most likely than you do. Knowing more means twocustomer’s trust. trait with nearly twice as many sales things: people being rated highly on likeabilityA research study found that customer trust than the average for all trust traits. • Understanding the technology behindof a sales person is based on five key factors: In other words, there were a ton of your cars.dependability, honesty, putting the customer likeable sales people who had troublefirst, competence and likeability. Likeability winning their customer’s trust. • Understanding why that technologycame last. can make a meaningful difference in Now that we know likeability is not the most your customer’s daily life. To breakIn the study, researchers asked 187 industrial important thing to your customers, here are a customers out of their hypnotic trance,buyers to rate the most recent sales person few tips for winning your customer’s trust. you must offer something that makeswho called on them. They provided eight you a better match for your customer’sdifferent ratings of their trust in the sales Be dependable needs than your competition.person. Here are the results and how Let everyone else go crazy with false orimportant they were when compared with partially true promises, but make sure that Test yourself each day to be sure you’relikeability: your word is good. Show your customers not forgetting things. If you promise that a that you’re dependable by making small car has a certain feature or certain level of 1. Dependability (rated 320 percent promises and over-delivering on the results. performance, it should be there. more important than likeability). Following through on promises and Honesty really is the best policy Be likeable and courteous being reliable makes you dependable. Instead of being a professional pitchman, Likeability is about connecting to customers If you tell someone you’ll match or think of yourself as an honest advisor. on a personal level through common interests beat your competition’s warranty, the Present both the strengths and weaknesses and goals. It also means common courtesy customer will be watching to be sure of your vehicles. I can’t emphasize this point — making efficient use of the buyer’s time, you do. enough: It’s best for customers to find out being courteous and being polite. about your weaknesses from you than to find 2. Honesty (130 percent greater than them while doing their own research later. You’ll find that when you’re meeting your likeability). Telling the truth, not customer’s core trust needs of dependability, exaggerating and being open about Put your customer Þrst honesty and information, they will inherently strengths and weaknesses of your You can’t serve two masters. Ben Franklin find you likable and know that you’re putting offerings makes you honest. Your once said, “A man with one watch knows them first. More important, they’ll trust that customer wants to hear the whole what time it is; a man with two watches is you are keeping their best interests in mind, story from you — not from another never sure.” In the long run, you want your which will make you and your dealership dealer, a friend or an article on the customer to tell others that you were honest stand out from the rest. Internet. and dependable. As a sales person, you know that kind of recommendation is worth its 3. Putting the customer Þrst (80 percent weight in gold. greater than likeability). This is the customer’s perception that the sales Be your customer’s best source of Doug Hall is the CEO and founder of person puts the buyer’s true needs information Eureka! Ranch. He can be contacted at ahead of making a sale. Why do people like the Internet so much 866.872.8109, or by e-mail at when it comes to car shopping? Because dhall@autosuccess.biz, or visit 4. Competence (30 percent greater than there is so much information available on www.EurekaRanch.com. SUCCESS IS JUST A SUBSCRIPTION AWAY! To get your subscription to the #1 sales-improvement magazine, call 866.269.8604. 12 issues for $75. 26
    • MUST-SEECOMPANIESNADA 2006
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    • sts fos ls ms sf fis TomGegax leadership solution Dealing With Dysfunctional Behavior in the Workplace After a few frustrating this was a safe place, and he could feel free to systems-disciplined leader who inspires encounters with Mike, talk about anything without fear of reprisal. people to actively embody the organization’s one of my mid-level The look of relief and gratitude on his face mission, vision and values. managers, I suspected was a joy to behold. he was playing By my lights, it’s impossible to be a master dumb about a key Dysfunctional behavior is a deadly serious motivator without a minimal understandingissue of which he should have been fully business issue, yet it’s rarely dealt with. of what makes people tick. All leaders wouldaware. During our next one-on-one weekly The consequences are staggering, both in do well to learn the basic tools psychologistsmeeting, when he feigned ignorance about the emotional toll leveled against brittle use to help clients work through problems.an important detail, I quizzed him, gently employees and in cold, hard cash. Mind-body What I gained through self-study has made allbut persistently, until he boxed himself into a research performed in the past decade has the difference. After all, I wasn’t blessed fromcorner. With tears running down his cheeks, proven conclusively that without intervention, birth with the skills to recognize warninghe confessed he had been lying. “I’m sorry emotional or psychological turmoil can signs in the next guy or to follow up withto break down,” he said. “Mike,” I said, weaken the body’s immune system and open-ended questions or to coach him toward“this isn’t a breakdown, it’s a breakthrough. lead to physical illness. That leads to more a healthier attitude and lifestyle.Congratulations.” absenteeism, a productivity plunge, rising health insurance costs and high turnover. Why is a column that’s basically aboutAfter composing himself, Mike explained psychological health in a businessthat he was raised by a cold-hearted father. Whether it’s marital crisis, illness in the publication? Because the most troublingWhenever Mike did something wrong, his family or demons dragged around since and potentially dangerous challenges in thefather relentlessly interrogated him until he childhood, everyone’s personal baggage workplace today aren’t caused by knowledgeextracted every last humiliating detail. Then spills out at the office. Does that mean you gaps, they’re caused by behavior gaps. ThereMike was punished mercilessly. His survival have to be an amateur psychologist? Maybe. isn’t an honest person alive who hasn’tinstinct quickly taught him that lying was a Consider my definition of an ‘enlightened unconsciously indulged in mind games atgood form of protection. I assured Mike that executive’: A tough-minded, warm-hearted, one time or another — control-freaking, 30
    • continueddefensiveness, intimidation, workaholism, Be humble. Employees respond better tosabotaging, perfectionism, procrastination, an empathetic leader than to an imperiousdisplaced anger or victimology. Take a second autocrat looking down his nose as if to say,to study this list. They’re games being playedright now by your employees, many of whom “Do what I say because I’m more successful than you.” MEET YOUR NEWfeel perfectly justified in playing hardball.Here are two steps you can take right now: Get permission. The introduction of personal issues into a workplace discussion requires E-PLOYEE... — unequivocally — the employee’s consent. 1. Ask key employees to take a How to get it? Recap the underlying standardized psychological test (consult performance issue, then empathize: “Any first with a corporate attorney). Tests roadblocks preventing you from doing the WORKS 24/7 WITHOUT A like the Myers-Briggs Type Indicator or great work we both know you’re capable of?” SICK DAY OR VACATION! Riso-Hudson Enneagram Type Indicator can help you interact more effectively Step back. It’s admirable to want to help with various personality types. As your employees work through difficult issues. But grasp of interpersonal dynamics grows, remember, you’re their coach, not their best these tests become less important. friend. Be caring, be authentic, but be sure to 2. Compassionately confront workers keep a professional distance. who are underperforming and over- annoying. You do it not just because Stay objective. If you’ve struggled with you’re concerned about their welfare a similar issue, don’t assume your fix is but also, frankly, because doing nothing universal or that your recovery timetable is incurs enormous costs. Every flare- relevant. Proceed with caution, be patient and up by a drama king or queen burns be open to his or her point of view. TIMEHIGHWAY.COM replaces productivity and peace of mind. telephone-based scheduling with Walk the talk. It’s one thing to assure people they can tell you anything. But you’ll cripple internet technology that enhancesYou’ll find that employees are often relieved your credibility if you respond in a way that the effectiveness and customerto tell you why they’ve been acting up. Moreoften than not, it doesn’t demand heavy puts the lie to your assurances. You can’t be satisfaction of your dealership.lifting from you — just a question or two judgmental, be condescending or trivialize By scheduling appointmentshere, a suggestion or insight there. When you their concerns. directly through your web site,finally penetrate a dysfunction barricade and your customers make conÞrmed Do right by your teammate. Your goal asmake caring contact with the human being coach is to maximize each employee’s value. appointments instantly without call-on the other side, you help an employee find backs. TimeHighway.com puts your To do that, never lose sight of the fact thatconfidence and courage. You also strengthen service department’s schedule on her well-being takes precedence over heryour professional relationship. work responsibilities. Heresy? Only to a boss your web site, making it possible toRules of engagement running the shop by the seat of his pants. schedule appointments 24 hours a Putting the health and happiness of employees day, 7 days a week, from anywhere.Don’t hesitate to speak up, whether an first unquestionably benefits an organizationemployee is fighting with a colleague, in ways both measurable and intangible.struggling with a personal issue or just in a • Your 24/7 Revenuefunk. “How ya’ feeling these days, Jenny?You sure? Feels like something’s not quite Be ready with outside resources. Sometimes Building Tool you have to call in a professional. The timeright.” When she acknowledges she’s not on will come when the issue is over your head. • EfÞcient and Simple to Usetop of her game, try a little commiseration:“Yeah, we all have days like that. Any way I Compile a list of programs, support groups • Automatic ConÞrmation and organizations whose mission is to help and Reminder Emailscan help?” Granted, some people won’t budge people who are severely stressed out orwhen it comes to revealing their inner lives. consumed by a full-blown crisis. Post the • Cost Effective: Only 54That’s OK. Don’t force it. You’ll find that a lotof people will tell you what’s on their minds, list in the office (on your intranet or bulletin cents an hour board) and remind people it’s there.as long as you follow these tips. As the proverb goes, “For want of a nail, the For More Information ContactEarn trust. People will open up if they sense kingdom was lost.” Likewise, one employee’s Karen Dillon at 239.438.5359 orthey can trust you. They need to know you personal problems can set in motion a chain kdillon@TimeHighway.comcare and that the personal information of events that could threaten the health of anthey’re sharing won’t come back to them entire organization. It’s your responsibilityfrom another source. Establishing that trust to smash the snowball of employee personal MUST-SEEbegins today through respectful interaction. problems before it begins rolling down the COMPANIESThat way, when an issue does bubble up, an NADA 2006 hill of neglect and picking up speed. Actemployee will trust that his secret will be safe wisely early or prepare to be bowled over.with you. Tom Gegax served as the chairman and 5633 Strand Blvd, Suite 302Stop, drop and listen. When an employee CEO of Tires Plus and is the founder ofneeds to talk, stop thinking about business, Gegax Management Systems. He can be Naples, FL 239.438.5359drop what you’re doing and give him your contacted at 800.723.2601, or by e-mail at www.TimeHighway.comfull attention. tgegax@autosuccess.biz.february 2006 31
    • sts fos ls ms sf fis JohnZonneveld fixed operations solution Manage Learning to Improve Dealer Technician Performance A customer’s positive training or online education courses. LMS when training courses are offered and act as experience with administrators can build course catalogs, a localized course demand forecasting tool a dealer’s service schedule course offerings, assign courses and for instructors and other course providers. department has a manage many aspects of training delivery, positive effect on the including instructors, documents, facilities, Auto-enrollment capabilities also reducecustomer’s brand loyalty, and a negative equipment and online courses. Users can the burden to the employee and managerexperience reduces brand loyalty. view the course catalog, enroll in and cancel by automatically alerting students by e- out of course offerings, view their schedules, mail when they are enrolled in classes. TheNot only is a brand-loyal customer more training transcripts, certification program employee no longer needs to determine hislikely to make repeat purchases, that progress, and launch e-learning courses. The or her learning needs, locate the appropriatecustomer can become a marketing asset advantages of an LMS include: courses and schedules and enroll in the classthrough positive word of mouth. manually. • Centralized and standardized trainingGive dealership employees access to the information and documentation, helping Another key function of an LMS is theknowledge they need to effectively service ensure that all dealers meet a consistent ability to launch e-learning courses. Anproducts and ensure customer satisfaction performance standard. Consistent individual can access a course through a Webto promote loyalty. Service personnel must performance reduces the chance that an browser at any time, from any location thatbe familiar with a vehicle composed of undesirable customer experience at one has Internet access. An e-learning course cancomplex assemblies, sub-assemblies and dealer adversely affects another dealer. range from a simple online slide presentationelectronic systems, as well as the equipment to a complex multimedia simulation,and systems used to diagnose and service • OEM Certification, ensuring that every incorporating video, audio, online testingthe vehicle. OEM certification programs, service is performed by a qualified and other online interactivity.individualized training paths, compliance technician in the necessary skill areas.programs and professional certification Automotive technology is constantly • A reduction in disruptions to dealershipaccomplishments (ASE, CAP, AYES, evolving as are the training and certification operations, by delivering training inNATEF, etc.) deliver the knowledge that programs used to provide technicians online, multimedia formats.maximizes success. with the skills and knowledge to maintain that technology. The LMS used to guide • Standard Web-based portal functionality,While the products in use today to manage technicians through the complex maze such as collaborative environments,these programs vary widely, the technology of certification requirements must be automated workflow and notifications,that supports multiple types of programs is sufficiently flexible, scalable and intuitive. data and information sharing.the same. From a technology perspective, An ability to adjust to this highly dynamicwhether implementing a certification • Real-time gap analysis capabilities landscape is what sets leading LMS systemstrack, compliance program, technical core for both managers and employees, apart from the competition.curriculum or job skill path, the basic tracking their progress toward variousstructure and algorithm to support these performance objectives at an individual, By centralizing information and makingprograms is identical. In a dealer network, organizational or departmental level. it accessible to all stakeholders and bya common learning and certification system automating administrative processes, animplemented by the OEM in a dealer portal Depending on the LMS, employees and LMS can help manufacturers and dealersallows the dealer to access a solution without managers can add course offerings to an more effectively manage service technicianincurring the software and hardware costs interest list. These courses can follow training. Organizations can maintain higherrequired to support the system. the requirements set forth in a predefined levels of customer service by using these performance program, or other courses can intuitive systems for scheduling, managingLearning management systems (LMS) and be added to form unique learning objectives and accessing the training they require.e-learning can play a key role in reducing for each employee according to their needs.the costs and improving the outcomes of This type of arrangement saves time for bothservice department performance. Basic the training program administrators and theLMS features cost-effectively track employees. If desired, managers can add John Zonneveld is a senior technical consultant for Latitude Consulting Groupemployee skills sets and provide a system their employees to interest lists once on a Inc. He can be contacted atthat centralizes training management, quarterly, annual or other routine basis. This 866.662.9959, or by e-mail atwhether it is attending a seminar, on-site will allow the LMS to auto-enroll employees jzonneveld@autosuccess.biz. 32
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    • sts fos ls ms sf fis DavidJacobson sales and training solution How to Decode What the Customer Really Means Customers probably some sales people to become defensive. her at the price. So you suggest she put the expect exactly what Others will immediately resort to a sales $3,000 down and finance the rest. She refuses they get when they pitch. Neither works effectively. by saying, “No, I really want to pay cash, but come to your store. thanks anyway.” You try to justify why she You meet, greet and Let’s decode other common phrases: “I just should finance, and she puts up her defenses qualify them in an want to look around for awhile.” What he or force field.attempt to find out their needs and wants probably means is: “If you stay with me, youfrom the very beginning. will try to sell me something and bother me You go to your manager after the customer the whole time, just like the last guy did.” leaves and say, “Man, what a waste. That wasThe problem with this approach is that just another person wanting a $3,000 car. Shewhile you are qualifying, the customer’s Let’s make one thing clear: A customer told me she was in a rush, but that she wouldfirst instinct is to be standoffish. These two is thinking one thing to him or herself be back.”elements don’t mix. The harder you try to throughout the entire process — “What’s inqualify a customer, the harder they resist. it for me?” If there isn’t anything in it for The first thing you need to do is disengage the customer, then you lose. If a customer the customer’s force field. This will help youOne thing you can count on with certainty: is listening, he or she is probably only find out the reasons for her actions. There areWhen you first meet the customer, what he patronizing you. If he or she is walking with many reasons a customer may not be honestor she says is probably not what he or she you, it is most likely only physically. with you until he or she trusts you. Perhapsmeans. If you can decode what the customer this particular customer was embarrassed tois saying and truly understand what he or What if you have an idea that could benefit tell you that another dealership rejected hershe is really feeling, you will be in a much the customer? You must let him or her know credit and she was told she would have tobetter position. before you tell them about it, otherwise their pay cash. force field is engaged.Imagine if a customer says, “I just want your Remember, you will not progress fightingbest price.” What he likely means is “I am For example, a customer comes into your the force field, you must disengage it. Theafraid of you and your sales tactics. I just store and explains she wants to buy a car first step is to answer the customer’s questionwant to be treated fairly.” This will cause for $3,000 cash, but you have nothing to sell of “What’s in it for me?” If the customer believes he or she has something to gain by listening to your ideas, then they will. And if they feel they have something to gain by Drive customers in... spending time with you, they will. For sales. For life. Try this approach the next time you encounter a stumbling block. IMN Loyalty Driver™ is the only fully-managed e-newsletter service that helps auto dealerships turn “Because I am also here as a consultant, I would like to share some ideas that you might leads into sales, and sales into lifelong customers. find quite interesting. Sometimes they make IMN develops your custom branded HTML layout, writes sense and sometimes they don’t.” the articles, and manages your monthly send -- all you do This opens the line of communication and is provide the email addresses! allows you to consult from the inside of the customer’s force field. More than likely, Hot leads, and more... you will encounter less resistance and You get hot leads emailed more willingness from the customer and to you. And Loyalty Driver therefore be able to confidently introduce funnels traffic to your web- other options. site inventory page, test- Your customer needs to believe in you and drive request form, and feel as if you truly appreciate him or her. service appointment form. This does not happen with sales pitches. It happens when you answer the question, IMN Loyalty Driver builds “What’s in it for me?” Focusing on this relationships with customers question will enable you to set the pace, stay and prospects. So you can in control and make the experience enjoyable sell them vehicles and service for both you and the customer. throughout their lifetime. Learn more at NADA booth #3510 David Jacobson is founder and president or visit www.imnloyaltydriver.com of GrooveCar, Inc. He can be contacted at or call toll-free 1-866-964-NEWS (6397), ext. 214 866.663.9038, or by e-mail at djacobson@autosuccess.biz. 36
    • MUST-SEECOMPANIESNADA 2006
    • sts fos ls ms sf fis MichaelYork sales and training solution High-performance Selling is More Than Just Professional Fundamentals. The Canfield relates a study on selling done by same with selling. You can appear to be basics. Champions do the University of Notre Dame. It’s a study professional, and even receive pay for what them well in sports, that’s been done before, and the results are you do, but that doesn’t get you into the business or selling. always consistent. The conclusion? That major leagues of selling. most sales people quit too soon or never There are tons of really get started at all. Think performance, not just professional.training opportunities in the marketplace It’s the performance of any individual (intoday on the how-tos of selling. There What do sales people love to talk about? their field) that makes them known by theare really no new fundamentals. The Their experience, how many years they’ve customer and their peers as one of the bestfundamentals are the basics, and the A-B-Cs been doing this or that, how they’ve seen it at what they do. Is that how you want to beand the building blocks that have been around all and how if you can sell cars you can sell known? Here’s a short list on how to get tofor 100 years. Names like John Patterson and insurance or hats or shoes or anything. the majors.Napoleon Hill come to mind; their sellingand success principles are old. What does it mean to be a selling 1. Work harder on you than you do professional? That’s the thing most managers on selling. What does that mean?The top performers in selling do these think they want: a professional. Webster Read, listen and write. Those are allfundamentals well. Everyone else seems to defines professional as, “One engaged in a fundamentals confirmed by history asbe looking for a trick play or shortcut or a specific activity as a means of livelihood. leading to success.way to win the sales lottery. … Behaving in such a way as to appear professional. … Performance by a person or 2. Get in the show. In today’s marketplaceThe problem with shortcuts is that they often persons receiving pay.” it’s all about the show. It’s about thelead to detours and short-changing your buyer’s emotional experience andsuccess by neglecting to become good at the I’ve had friends who played professional feeling good about spending theirbasics of high-performance selling. baseball. They were in what’s known as money. When I go to Disney World, A ball. They were professionals, but still a I always spend more than I’d plannedIn his book, “The Success Principles,” Jack long way from the major leagues. It’s the but it feels so good I come back and do it over and over. Disney’s “show” is worth it. Is yours? NEW 3. Set big goals. Big is available, if you really believe it, then why not just go for big? Big ideas lead to big success. Sometimes it’s after big failures, but failing is part of the success equation. Just don’t take too long to get back up and get on with it. Your audience is waiting. 4. Bring your commitment to your daily performance. Commitment is stronger than motivation. When you make a commitment to anything, you’ve decided to press on with your performance even on days when you might not feel very motivated. Get Vehicle Display System committed, and the marketplace will pay you well for your performance. • Fully Adjustable • Hand Operated Pay attention to the fundamentals of your selling performance. Somewhere a buyer is • Portable • Easy Assembly waiting to see your show. • Modern Styling • 100% Galvanized If you’d like my short list on all 10 keys to Becoming Uncommon as a Selling Performer, e-mail me at the address below. www.RAMPBOSS.com Michael York is an author and professional speaker. He can be contacted at 248.755.6814 800.668.5015, or by e-mail at myork@autosuccess.biz, or visit www.MichaelYork.com. 38
    • sts fos ls ms sf fis SteveLevin sales and training solution How to Build Value in Your Presentation Dealerships today are you convey to the customer the more value Women are more concerned about safety faced with a more you are building. You are now creating a features than men. If you have a couple, it is aware, better informed feeling of appreciation for the product, that essential that you build value in the vehicle and Internet-savvy it is rated highly, or even better that it is by stressing and knowing all the safety buying public. something to be treasured. features. The wife is generally the final decision-maker, if for no other reason thanConsumers want value for the dollars they Another question to ask is, “What is the the husband wants the vote of confidencespend, and they want to know what their mileage on the car you are driving now?” from his wife.money is buying. Yachts are sold based on The customer will answer you in threewhat you get for your money, including the ways. A low-mileage number, normal- Stressing the value of the safety featuresvalue of the features and amenities that are mileage number or high-mileage number. to the wife puts you in a great position tobuilt in. Diamond jewelry, as anyone who A range of 12,000 to 15,000 miles a year earn their business once you have her onhas made a purchase will tell you, is sold is average, depending on location. If the your side. Talk about the dual-stage airbased on the value of the cut, facets, color answer is low mileage and the customer is bags and how they work, how the crumpleand carats. a “want” buyer, he or she likes the toys and zones keep the occupants safer in the event creature comforts. This type of customer of a collision, the side air bags, crash-testThe dictionary defines selling as,“To rarely is concerned about gas mileage, but ratings, collapsible steering wheel, ABSpersuade (another) to recognize the worth more concerned about his or her image. brakes (that they should never be pumpedor desirability of something,” and value as, Point out heated seats, heated side view because…), child safety tethers and anchors,“the apparent worth of something that is mirrors, the six-disc CD changer and the AWD transmissions, when you should useappreciated, rated highly or treasured” number and quality of the speakers. Show second and third gears, child rear door all the cup holders and door pockets, locks and locking gas cap. Explaining theseZig Ziglar said it best when he defined what creates the smooth ride, the speed- safety features builds tremendous value in aselling as essentially the transference of sensitive windshield washer and radio. vehicle.feeling. Transferring the feeling that your Try to find two or three features the newcustomers are getting their money’s worth car has that the trade-in does not have and Whether you have a wants customer ormeans having to sell the value of the vehicles feature these options. a needs customer or a couple, the morethey are buying. That’s a strategy essential features you build value and show benefitsto today’s selling process, especially since This leads to a third question, “What features of that meet their specific needs the betterincreasing the value of the product lessens does your car not have that you wish the new position you’re in to create a sale. The moreits perceived cost. car had?” value you insert in the sales presentation, the less fear and apprehension there will be. TheAs you go through the qualifying process If you have determined that you have a “need better able you are to appreciate their wantsthere are several questions you should ask buyer,” then you need to mention things like, and express their needs, the greater theto start the value proposition. One question gas mileage, ease of maintenance, history of opportunity to generate more gross, moreis, “What kind of car do you own?” Say two reliability of the product, safety features and first-time closes and better CSI.customers are asked the same question, and interesting standard features particular tothe first answers, “I like to trade every two to your vehicle. But don’t stop there, talk about There are sales aids on the market andthree years,” and the second says, “I have a the all-season radial tires, the intermittent supplied by the manufacturer to help insert10-year-old car that I use primarily to go back wipers, locking gas cap, fold-down rear seat more value into your presentations. Youand forth to the train station.” The first answer and trunk capacity. can go online to find books, manuals andreflects a customer who wants, and the second even CDs. Knowledge breeds confidence,in most cases a customer who needs. This process takes very little time, and there confidence breeds enthusiasm and enthusiasm is no better way to get a customer to buy creates sales.If you’re selling to the “want customer,” than by inserting value every chance youthen relay the engine size (in horse get. Increasing value leads to several otherpower), creature comforts, things that the things like gaining the customer’s trust and Steve Levin is the president/creatorold car didn’t have, better technology or respect because of your product knowledge of Motormouth. He can be contactedimprovements, heated windshield washer and professionalism. This is the strongest at 866.662.9958, or by e-mail atfluid. The more “want” features and benefits selling position to be in. slevin@autosuccess.biz. SUCCESS IS JUST A SUBSCRIPTION AWAY! To get your subscription to the #1 sales-improvement magazine, call 866.269.8604. 12 issues for $75. 40
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    • sts fos ls ms sf fis fixed operations solution GreggTompkins Avoiding A Warranty Audit You Can Avoid A Warranty Audit by Making Necessary Changes If you are unaware of something you check on periodically so you you don’t understand the report, find someone your warranty audit always know where you stand. who does. exposure, talk to your manufacturer’s Your rep can provide you with your latest The key to avoiding a warranty audit is to service representative. warranty expense/analysis report. Review this perform warranty repairs in a way that’s He or she should be report thoroughly, and look for any categories the most economical to the manufacturer.able to tell you if you’re a potential audit in which your averages are higher than other Proper dispatching is important. One waycandidate in the short term. It should also be dealerships or out of line and find out why. If to effectively perform repairs in the most economical way is to assign repairs only to those who are qualified to do them. If repairs are randomly handed out, then shop comebacks and misdiagnoses will drive up your warranty numbers. A knowledgeable warranty administrator can pick up on claim problems quicker than anyone. Once a warranty repair has been performed, it’s a great idea to have a few people look at a warranty claim before submission. If something isn’t right, it’s more likely someone will pick up on it before the warranty claim is submitted. If you don’t review every warranty claim before submission, sit down with the appropriate managers and pull a sampling of warranty claims every month to verify that policies are being followed and all the necessary documentation is provided. A knowledgeable warranty administrator can pick up on claim problems quicker than anyone. They’re usually the only person in the dealership that sees every warranty claim before they’re submitted for payment and can be the watchdog you need to bring problems to your attention. Warranty audits cost money and time. Avoiding them is something you may not think about until you’ve been through your first one. Gregg Tompkins is the president and a consultant at Dealer Insight. He can be contacted at 866.403.7973, or by e-mail at gtompkins@autosuccess.biz. 42
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    • sts fos ls ms sf fis PattiWood sales and training solution Where Should I Sit Men prefer side a prospective applicant with a table in the corner of the table. One person takes one by side to create between them, tends to foster a competing- side of the corner, and the other person takes cooperation. Women type attitude. the other side. The benefits of this position like to face other are that it allows both parties to enter into women and men so each other’s personal space, creating athey can see their body language. When you The overall goal stronger bond than if they remained distanttake away gender differences, it’s generally is to sit as close from each other and that it breaks up the stuffy formality of the situation by moving as you can tobest to sit side by side because it is the bestposition to create cooperation. By sitting by you closer to others. The corner of the tablesomeone’s side, we enhance cooperative the other person adds a bit of psychological security for bothbehavior from them by conveying that we without making parties by having a bit of a barrier between them, but it is not as much of a barrier as if him or her feelare not competing against them. It alsoinsures that both of you are facing in the you sat opposite one another.direction of the problem or project, such as uncomfortable. The overall goal is to sit as close as you cana report on the table or research material that This will create to the other person without making him or the most intimateneeds organizing. Imagine soldiers lined up her feel uncomfortable. This will create theto go into battle. They are side to side and communication. most intimate communication.shoulder to shoulder. They are side by sidefacing a common foe. Patti Wood is the president of Communication Dynamics. She can beOpposite sides foster competition. Sitting Sit at a 90 degree angle for good conversation. contacted at 800.849.3651, or by e-maildirectly across from someone, such as The best seating position at a table for a at pwood@autosuccess.biz, or visitan employer sitting direct across from cooperative exchange of information is at www,pattiwood.net. Attend Jimmy Atkinson’s NADA 2006 Workshop: 7 Key Coaching Strategies to Turn Sales People into Sales Champions This workshop is designed to teach Visit booth #3875 and ... you how to maximize your most • Discover successful revenue powerful resource: your people! making opportunities. • Learn with our on-the-spot The “7 Keys” will show you how to: training seminars. • uncover your sales team’s • Enjoy complimentary true potential; refreshments. • build on your team members’ • Relax with our re-energizing strengths; massage chairs. • develop your management team into coaches and leaders. Unlock your dealerships potential! Call 1-877-651-1032 or log on to assurantsolutions.com/arvs VS21080-0106 jadf © Assurant, Inc. 2006 44
    • sts fos ls ms sf fis JeffMorrill sales and training solution Setting Appointments: If You Want the Right Answer, Would You Like Ask the Right Question to Maximize You: Are weekdays or weekends better for Your Revenue Opportunity with Years ago, I was taking a walk in a you to see the car? Every Customer? city and needed to use a bathroom rather Customer: I work long hours Monday urgently. I went into through Friday, so weekends are better. a research facility and Consistent Walk Aroundasked the receptionist, “Do you have a publicbathroom?” She said no. I turned to leave, You: Are mornings or afternoons better for Every timeand it dawned on me to ask, “Well, is there you?a bathroom that I can use?” I wasn’t looking Good, Better, Best Menufor a public restroom so much as I was Customer: I exercise with my wife every Sellinglooking for any restroom that I could use. She morning, so afternoons are better.pointed me down the hall to a staff bathroom. Increase Hours Per ROProblem solved. You: Is a Saturday afternoon or a Sunday afternoon better? Increase Parts Revenue By getting Customer: Definitely Saturday. Increase Service Revenue permission to You: What is the best time this Saturday for Increase CSI follow-up and you? then actually following-up when Customer: 3 p.m. you said, you You: Let me check my calendar. Perfect, 3 show the customer p.m. works great for me. I’ll write it down. that you’re a May I call you Friday to confirm? professional Customer: Sure. See you Saturday. capable of fulÞlling your You: I’ll have the car out front and ready for commitments ... you. “Wireless tablet PCs allow service employees to seamlessly enter customer information You’ve never given an option to choose from the lot, the service drive or the customer lounge. The process adapts to each individualAsk the right question, and you’ll get the right whether to make an appointment, only the customer’s situation and has increased theanswer. Ask the wrong question, and you’ll option to pick when. By telling the customer effectiveness of our service menu selling.”get the wrong answer. that you’re writing the appointment in your “Not only are we producing more parts and calendar and getting the car ready for him or service revenue per RO, but our CSI has increased too!”The same wisdom applies to asking for her, you communicate that you’re setting the Pat Cox, Hajek Chevroletan appointment. If you ask a customer the time aside, increasing the seriousness of ahorrible, “Would you like to schedule an skipped appointment. By getting permission to follow-up and then actually following-up Start Maximizing Your Revenueappointment to drive the car?” you will almostalways hear, “Uh, no. I’ll just come in some when you said, you show the customer that From Every Opportunity Todaytime this weekend.” They want to get off the you’re a professional capable of fulfilling Call Now or Go Online to your commitments, you increase thephone without being accountable to you any sense of responsibility the customer has to Schedule Your Free Onlinefurther. And by asking the wrong question,you gave the caller the perfect way out. In this actually show up, and you remind them so Demonstrationscenario, the customer definitely won’t show they don’t forget.up at a time that’s convenient to you, and heor she probably won’t show up at all. Jeff Morrill is co-owner of Planet Subaru in Hanover, Ma., and Planet Chrysler Jeep in Franklin, Ma. He can be contacted atHere’s a solution: Ask the right series of either/or questions so there’s no way to say no. 866.872.8699, or by e-mail at jmorrill@autosuccess.biz. 866.872.8150 ext. 72 www.dealerlogix.comfebruary 2006 45
    • sts fos ls ms sf fis SeanWolfington leadership solution Lessons Learned in a Year of Innovation Innovation can be underlying causes of the problem. Get a environment should encourage success defined as creating visual representation of the challenge on flip but also celebrate the lessons learned from something new when charts on the wall, select the most important failure. nothing like it existed component and start brainstorming with before. It requires an your team. If you do this as a team, you’ll The right environment can help ideas open-minded person continue to grow and improve as you solve ßourishto think differently, take action and inspire new problems. The most innovative companies create anand direct others to follow. intense and safe environment for people Stretch yourselves and your team to create. The attitude of the people in theInnovation embraces problems by seeing Most innovation dies before anyone company is one of constant, never-endingthem as opportunities to create a new tries to do anything. It is easy to see improvement, and it is common to questionsolution that no one has thought of before. the challenges and difficulties of doing why things are done the way they areIn the end, the most important part of something new and different but don’t let done. This attitude welcomes new ideas,innovation is turning great ideas into action that stop you from taking action. The only and it challenges them with intelligentand results. I’ve summarized some lessons way to continue to grow and improve is to questioning that often leads to other betterwe’ve learned this year as we have continued constantly stretch yourself beyond what is ideas, and so on.to grow and innovate. easy and comfortable — no pain, no gain. As challenges come up, don’t use them as Thinking and laughing are not mutuallyPeople are the cornerstone of innovation excuses for not taking action. Instead, act exclusivePeople play the pivotal role in all aspects prudently so you overcome the challenge For anyone who has brainstormed in a groupof the innovation process. The people you and still make things happen. setting, the idea that laughing can lead towork with, choose to serve on your team some very interesting ideas should not beand brainstorm with dictate your capacity Ask what and why foreign. We enjoy the connection betweenfor innovation. Surround yourself with Everything and every solution are in the working hard and having a lot of fun. Instead“yes-men” and you set yourself up for answers to “what” and “why.” Innovators of distracting us, laughing and joking canattempting to implement vanilla ideas that find answers in questioning. What is your create a fertile environment for great newlack real-world application and solve the problem? Why does that happen? What ideas. Not only does the quantity of ideassame problems the same way. Innovators are alternative methods are better? Why? What increase, but their quality increases, too,strong-minded, and they don’t always agree are the pros and cons of each way? How do and it is a lot more fun. Through laughter,with one another. Constructive disagreement we have the best of all worlds? Dig as deep the barriers come down, and interesting ideaand debate are the ingredients for great new as you can with these questions, and I’ll bet combinations are formed that frequently leadideas. you will find what you have to do. to breakthroughs.Welcome problems Trust is a prerequisite to innovation Learning and innovation are two sides ofProblems are great opportunities for At an innovative company, the key players the same coininnovation. Rather than defending yourself truly connect to the vision and each other. A really acute definition of innovation iswhen a customer brings you a problem, If you create a trust in the integrity of your learning beyond what we know or understand.welcome the complaint as an opportunity to own creative process, you can freely share Without rapid and continuous learning, weinnovate. When approaching a complicated valuable insights with each other. Everyone won’t achieve any breakthroughs in newproblem it is generally better to invest some must know that they are safe to share ideas ideas. Thus innovation and learning aretime in problem analysis to prioritize the without being attacked or judged. The critical to one another. Make it happen It’s not just the brain-storming. The most important thing is to take action and continue to grow and improve. Your action is much more effective if the whole team is united in achieving the same goal. If your team helps create the idea they are more likely to implement it. In the end, great thinking and effective action creates innovation and positive results. Sean WolÞngton is the owner of BZResults.com. He can be contacted at 866.802.5753, or by e-mail at swolÞngton@autosuccess.biz. 46
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    • sts fos ls ms sf fis JoshWeaver sales and training solution On-site Sales Events The Power of Third-Party Credibility Staffed events can be a Sales people and management must buy great way to give your into it. retail sales a huge lift MUST-SEE in a three- or four-day If the event is going to be successful, COMPANIES period. One reason the dealership staff must get on board. NADA 2006 for their success is This is more difficult for management to through third-party credibility. Here’s why accomplish without staffing. For instance, it works: if you have a meeting and tell your sales force, “This weekend we are having a The power to say: “I don’t work for the direct marketing sale and we need you to dealership.” get pumped up and it’s really going to be special.” Good luck. A couple of your sales Why is this a powerful statement? Customers people will buy your story, but the majority have been conditioned to withhold and give will stand in the corner and say, “Here we false information to automotive sales people. go again, another mailer.” But when a third- When a third party can sit down with a party is at your store, the sales people are customer and use this statement, it interrupts more likely to buy into the event. The reason the normal process, and they open up and is that it’s truly not business as usual. There give the staff the information needed to put is someone new here, and he or she has a deal together quicker and at a higher gross only one goal in mind: to sell vehicles and profit. produce gross profit. This creates excitement in the showroom and throws off your sales Here’s a comparison. people’s daily routines. Plus, management A four-day promotion with no staffing: A steps up its efforts because a third party’s customer walks in with the offer in his or eyes are watching. Nobody wants his or her her hands and asks a sales person, “How ego to be bruised. does this work?” The sales person begins to “dance” and avoid questions and tries to In order to obtain third-party credibility, the gather info from the customer such as trade third party must be credible. information, credit, etc. The problem here There are great companies out there, and is the sales person has not been trained on there are not-so-great companies. Be sure how to properly handle this situation. The to choose wisely. Check references and ask legitimacy of the offer is lost, and the sales questions like: How many promotions per person is losing credibility. month does your company conduct? What is the owner’s background in the automotive A four-day promotion with staffing: A industry? Can I interview the staff by phone customer walks in with the offer in hand prior to the event? This is very important for and sits down with an on-site sales person the event to be a success. who says, “Thanks for coming in, my name is Josh, and I do not work for the dealership. If handled properly, third-party credibility I am here for the next four days to assist in works during a sales event. Although the obtaining favorable financing terms along expense may be more for a promotion with with preferred pricing. Do you mind if I ask staffing, what is the true cost of losing deals you a few questions and explain exactly how when the customer is not handled properly? everything works?” Is it $40,000, $50,000 or more? The gross profit generated will outweigh the additional With this scenario, the customer begins to cost every time. buy that the offer is legitimate and doesn’t feel threatened because the representative does not work for the store. Plus, offering up front to explain how everything works relaxes the customers and allows the staff to obtain valuable information quicker. The quicker the Josh Weaver is the owner of Impact Direct customer feels comfortable about the offer, LLC. He can be contacted at 866.401.5961, the more likely a sale will happen. or by e-mail at jweaver@autosuccess.biz.48
    • “Real Car Buying Customers” u g a company Est. 1996SPECIAL FINANCE CUSTOMERSNEW CAR QUOTESDIRECT MAIL PROGRAMS Lowest Cost Per Sale Clean Lead Technology lean Techno g Lead-MatchTMTechnology Free CRM Tool CRM ool M 866-442-6254 Come see us at NADA Orlando 2006 Located at booth #4474 CustomerFunding.com, Inc 8930 S. Beck Ave. Ste. #112 Tempe, AZ 85284
    • sts fos ls ms sf fis EricHinkle marketing solution Picture This The Power of Photos for Simple Internet Marketing A picture is worth and services. So, dealerships need to have on a schedule to take and upload their photos. a thousand words, pictures of their inventory. Service companies are popular because they especially for take the pain out of uploading photos, but dealerships advertising Knowing the value of photos, why do so they can be expensive and not always at the their inventory on the many dealerships struggle to maintain store when you need them. Internet. pictures of their inventory? One reason is the exorbitant amount of time it takes and the A dealership’s inventory is constantlySites that put clear and concise information degree of difficulty. Remaining competitive changing, which makes finding a solution thatabout their products and photos online have can be daunting when the dealer is expected is easy to use extremely important. Helpinga distinct advantage over other sites that are to upload multiple photos to several Web dealerships with this task are cameras thatboring and without photos. Buying decisions sites. There are tools that help dealerships scan a bar code and allow the user to takeare emotional, and pictures are a powerful do this. Quality digital cameras are the norm multiple photos of that vehicle until anotherinfluence. Photos can be the defining factor and the photo uploading processes from barcode is scanned. Moving from vehicleon whether we buy a particular product. those cameras can be slow. to vehicle quickly while gathering photos eliminates the service company and getsWhen shopping online, we choose retailers A dealer’s ultimate goal is to find an effective, inventory on the Web quicker. Another thingaccording to the quality of information easy-to-use inventory management system to consider when evaluating a total marketingand number of photos. Buyers may go that empowers online advertising initiatives solution is finding software that makes theto several similar sites to view other so the dealership can spend more time on its uploading process easy through seamlesscompetitive products that validate their core business. Advanced dealerships with photo synchronization. By scanning the barpurchasing decisions. The retailers who are Internet departments appreciate the value code, each photo taken is associated with adoing well all have one thing in common: of marketing inventory with photos. They particular VIN until a different barcode isThey show many photos and provide are either doing it in store or they’re using a scanned.reliable information about their products service company that visits their dealerships Posting photos in real time gives dealerships a distinct competitive advantage. This technology is available to those dealerships that want more control over their Internet 1-888-Get-A-Car marketing efforts. Dealers should have the ability to take vehicle photos and have them available for immediate viewing. & Some dealers still do it the old fashioned way. One photo at a time uploaded to one www.getacar.com site at a time. The task is tedious and time consuming; however these dealers have an understanding of the importance photos play in relation to selling more cars. Those who Only One Dealer Per Market are doing it this way could be making better use of their time. Call Now for Exclusive Rights Details Other important things to consider when selecting a software solution to post your View TV Spots at www.getacar.com/dealers.htm photos online is the ability to change Programs Include pricing, adjust options, stay compliant, and do so, easily, quickly and affordably. Leads, TV Spots, Lenders, Advertising Assistance, Web-based inventory management systems are all very similar. Choosing one that can Training for your Special Finance Department, streamline the photo process along with a Bankruptcy Mailer: Includes Training on marketing management component can be Raising Credit Scores the difference between sales versus simple inventory management. When an online car STOP Paying per Lead! One Flat Rate For shopper has the choice between a site with photos and a site without, which one do you UNLIMITED LEADS! think they’ll choose? Get A Car, Inc. Joe Perot - President Eric Hinkle is the chief operating ofÞcer email: perot@getacar.com of ESP Data Solutions. He can be 800.790.1212 www.getacar.com contacted at 866.663.9037, or by e-mail at ehinkle@autosuccess.biz. 50
    • You Are Guaranteed to IncreaseYour Bottom Line in One Year by$250,000 or I’ll Pay You $10,000!Hi my name is Mark Tewart. I am This isn’t some magic-button, pie-a renowned expert in automotive in-sky fad. These are real-world andsales, sales marketing and sales proven methods for massive profitmanagement. Many of you reading this improvements. It takes hard work andmay have heard me speak at seminars, lots of commitment.state association meetings, NADA orNIADA conventions. You may have The second reason for me beingread my articles in AutoSuccess or picky about who I work with onother magazines or seen my shows these projects is that frankly I don’ton Automotive Satellite Training have the time. To create the massiveNetwork. results that you and I are looking for requires a great deal of my time andWhether you know me or not, you effort. I am an in demand speaker,may be wondering what allows me to trainer and consultant and I own three MARK TEWARTbe able to make such an outrageous successful businesses. Because of my Tewart Enterprisesclaim. The answer is simple. I have time restraints, I refuse to spend timeaccomplished this for my clients and effort with wanna-be’s. I only (888 283-9278) orevery time I have tried without fail. align myself with passionate people 513 932-9526 orIf a client follows my full-proof and committed to winning. email me at info@tewart.com withproven methods, the results are as your information and we can talk.predictable as the sun coming up every The third and final reason for me beingday. That may sound arrogant to some selective is my reputation. I can’t write Sincerely,of you, but to me and my select clients ads like this and make such incredible Mark Tewartit’s just reality. guarantees unless I can bring the results. My reputation is beyond solid. P.S. If you are going to the 2006Every year I am bombarded with NADA Convention in Orlando,dealers that ask me to help improve By the way, the $250,000 bottom line come to my workshop – “How Anytheir sales and profits. I reject most of improvement is just an example. I Dealer Can Improve Sales Resultsthem. I only choose a few each year to have had some dealers increase their This Year”work with on such a large scale. There bottom lines by more than $1,000,000are a few reasons why I carefully hand in just one year. Look at it this way, I P.P.S. Don’t miss my Highpick who to work with. don’t take $10,000 guarantees lightly. Performance Management Seminar I put my money where my mouth is. March 15 &16The first reason is that it’s easy foryou to say you want to improve but If you want to talk to me in strict Call 888 2TEWART or go tomost people don’t want to do the confidentiality, call me at: www.tewart.com/seminar forthings necessary to make it happen. 888 2 TEWART details Visit www.tewart.com to receive your free newsletter
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