AutoSuccess Sep06


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

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AutoSuccess Sep06

  1. 1. Let’s Step It Up September 2006
  2. 2. SUMMIT V BEST PRACTICES 866.386.7050 Experience real Case Studies that can help your dealership LEADERSHIP • INTERNET • CRM • MARKETING • BDC • SALES immediately. Tuesday and Wednesday, November 7th and 8th 2006, at the Venetian Resort and Hotel, Las Vegas, NV. Dean Evans David Kain David Chip Perry Dealers & Managers Only! Ralph Paglia Vice President, Field Marketing, President, Kain Automotive Thomas CEO and President, CRM/eBusiness Director, The Cobalt Group Inc. Internet & BDC Training Specialist Owner, Subaru of Dallas Courtesy Chevrolet Two days of intense You will learn: - Internet Marketing that You will learn: Case Study: How I lowered my advertising expense and Internet Advertising Best Practices Case Study: How Courtesy Chevrolet’s business and CRM learning. Dramatically generates high-quality leads - Mapping out the best Internet teams grew to over 400 vehicle - Maximizing lead generation from your Web site sales process - E-mail templates for the increased my market share You will learn: - How’s top sales per month improve your results. You will learn: - Maximizing third-party best short and long-term - About ‘Mooch Marketing’ performing dealers get their You will learn: automotive sites - Metrics that matter: Focus on communication - Phone script elements that turn - Ways to advertise for free -Low-cost marketing ideas that outstanding results - Take home examples of - How to grow your CRM and Internet teams Limited Seats, return on investment leads into appointments effective merchandising you - What to measure, and how to - Recruiting, hiring and compensating for results get noticed - How to run events that get you can put to immediate use collect the data...Performance metrics that matter Register Today! noticed - How to generate car reviews in - Create a true CRM Profit Center your local paper - Manage your own SEM and online ad campaigns Case studies from - Use your BDC as a safety net for the Internet sales team successful dealerships across the country. Classroom styles seating only $595. Special Venetian room rates for $209 per night. Sean Roy Reutter Scott Joseph Mark Tewart Tony Rimas Speakers and times subject to change Wolfington Sheehy Auto Stores President & CEO, J&L Marketing, Inc. President, Tewart Enterprises Red McCombs Owner, Case Study: You will learn: Case Study: Grow your Internet Case Study: New marketing increases leads from 400 - 2400 - How to engage customers department through a defined Case Study: How to use BDC/ strategy focuses on steady long per month intelligently while learning how process, efficient staffing, and Internet departments to sell 100 term growth. Dealership’s market traditional “meet and greet” strategic advertising - 500 extra cars a month. share increases from 8% to You will learn: strategies can reduce sales 32% and grows net profits from - How to increase leads and sales - How to increase professionalism, You will learn: You will learn: $170,000 to over 2.2 million in volume without increasing lead write-ups and sales by eliminating - How to structure and staff low - How to set up a successful just two years expense “Deal Killer” questions volume of high volume dealership BDC/Internet department - Improve sales and reduced cost You will learn: - How to define and implement 5 locations - Use the Web to promote all your per sale at the same time - A growth strategy to grow your universal laws that increase sales profit centers - Create a process to support your - Improve profitability by improving profit a minimum of 33% per year - How to improve gross profits by - Use the Web to drive showroom customers and staff efficiently the quality of leads through your - New promotions strategy using implementing better proposals & phone traffic - Increase ROI through inventory own site personalized Web pages and - How to reduce customer conflict - Sell old stock, vehicles & parts selection and lead allocation - Increase closing ratios and direct mail and increase sales and gross inventory - Streamline online advertising to average gross profit with profit - How to increase your floor traffic profit through better handling - Use e-mail marketing to drive maximize Web site conversion improvement during your slowest days of price, payment and negative more traffic for zero cost - Sell old stock units via the Web of the week equity objectionsCall today to register. Seating is limited. toll free: 866.396.7050 web:
  3. 3. Addressing Client Concerns 8 TomHopkins Generating Energy 10 BrianTracy Telling is Not Selling 11 ZigZiglar Monopolizing on Search Engine Marketing Domestic Dealers Sell 300 - 500 Units With Search Engine Marketing 12 SeanWolfington Resolving Disputes Without Going to Court How Binding Arbitration Can Help Reduce Risk 14 CharlesArrambide Give Your Worries Up 16 JesseBiter Where’s Your URL 17 PaulAccinno 10 Keys to a Winning Product Presentation 18 JeffMorrill The Importance of Payments, Part 2: The Internet 20 RaquelSmith Web Audit Leverage Customer Insight to Maximize Lead Generation and Accelerate Sales 21 AllenCheek Key Performance Indicators, Part 2 22 HeatherConary The Internet Sales Process 26 DavidJohnson Leadership Coming to Serve, Not to be Served 27 SeanWolfington Five Keys to Successful Automotive Marketing 28 JimmyVee & TravisMiller It’s Still About Selling 30 MikeParsons 100 Percent Turn Over to the Business Office 31 TonyDupaquier How to Average $3,000 to $4,000 Gross Profit per Vehicle Sold 32 MarkTewart Investing the Fundamentals, Part 3 36 TimShea Reward for Improved Performance 37 12 RichardLibin An Internet Department or an Internet Dealership 38 DavidKain Are They Lying Why It’s Hard to Tell and How You Can Become More Accurate 40 PattiWood Marathons and Races: Which One Are You Running 42 MichaelYork Patrick Luck, Editor & Publisher Courtney Paris, Sales-improvement Strategist Susan Givens, Vice President Brian Ankney, Sales-improvement Strategist 3411 Pinnacle Gardens Drive Thomas Williams, Creative Director Brian Balash, Sales-improvement Strategist Louisville, Kentucky 40245 toll free: 877.818.6620 Dave Davis, Creative Strategist & Editor Charlie Tierney, Sales-improvement Strategist facsimile: 502.588.3170 Toni Stephens, Sales-improvement Strategist web: helping to promote... Job 27:6 I will maintain my righteousness and never let go of it; my conscience will not reproach me as long as I live. God is the source of all supplyAutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or Subscription rate is $75 per year.AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions;views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other magazine to which thismagazine may be linked from time to time. 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 inwhole 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 thatnames be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3411 Pinnacle Gardens Drive, Louisville, Kentucky 40245.
  4. 4. JMsolutions™ retail tools really connect, do yours? ! aaXchange® VMS NEWDesking Menu Intelligently appraise Quickly structure and Instantly pull final customer deal vehicles – yielding professionally present from Desking to create a JMsolutions is a division of higher used vehicle total deal options – incorporating comprehensive F&I presentation – gross profits! trade-in values from increasing PVR! aaXchange. A $9.4 billion diversified automotive company ranked onthe FORTUNE® 100 Best Companies to Work For® list for 2006, Get your sales in gear! its eighth consecutive year. Contact us for a live demo. ™ | 888.711.3377
  5. 5. sts fos ls ms sf fis TomHopkins sales and training solution Addressing Client Concerns The way you address Step #2: Feed it Back Step #5: Confirm the Answer client concerns will Simply re-state the concern in your own Once you see signs that they’re agreeable to have a powerful words. “So your concern, John, is…” your answer and that it makes sense to them, impact on your overall This accomplishes two things. First, you make a simple statement of that fact. You success level. In many demonstrate that you really listened to the could say, “That makes sense, doesn’t it?” Ifcases, once concerns are addressed, the client. Second, you have the opportunity they agree, the concern is now behind is made. You can go straight to asking to get confirmation from them that you If they show any hesitation at all, you mustfor their approval on your paperwork. The understand their concern. Having someone go back to Step #4 and come up with a betterfoundation of addressing client concerns is understand you makes you feel closer to him answer.a simple, six-step process that I’ve taught for or her. It creates a bond or common groundmany years: of sorts. It warms them up to accepting your If you feel there’s more they haven’t told advice on the subject at hand. you, warmly ask, “Obviously, there’s aStep #1: Hear Them Out reason for your continued hesitation. WouldLet the client talk and talk and talk until you Step #3: Question the Importance of you mind sharing it with me?” It could beknow as much as they do about their concern. the Concern they’ve just come up with another concernIf you try to address the concern before This step can be tricky if not handled and are uncomfortable telling you since theyhearing all of what they have to say, you may properly. You must gently ask if this concern already told you above that it was their realend up answering a concern they don’t feel would keep them from making the decision final concern. Always, always give youris all that important and/or bring up another to go ahead if it cannot be overcome. It could potential clients opportunities to save faceconcern they hadn’t even thought of. be this concern is not all that important and if you see that they’re feeling hesitant or the client will dismiss it when they consider uncomfortable in any way.I’m sure you’ve had clients who tend to if it would keep them from the benefits oframble when bringing up concerns. They your product. If it would stop the sale, you Step #6: Change Gearsmay start in one direction with a concern, then proceed. Once the concern has been satisfactorilybut end up somewhere else. You see, raising addressed, it’s time to move on. The simplestconcerns is a defense mechanism for them. Step #4: Answer the Concern method I’ve ever used is the phrase, “By theThey react to the urge to go ahead by slowing Depending on the concern, you may be able way…” Then, I move onto the next area ofthings down with a concern. So, let them get to do this quickly or you may have to do a discussion, changing gears so-to-speak toit all out before attempting to address any little research on behalf of the client. Either move on to the close or the next decision thatpoint they’ve raised. way, you need to demonstrate, above all else, must be made before closing. a sincere desire to help them. You’re workingI’ve had clients who talked themselves right for them at this point. You’re the industry P.D.R. (Practice, Drill and Rehearse) thesethrough and out of their initial concern. I expert and the research consultant at their steps until they become natural to you. Trydidn’t have to address it at all. disposal. This could also be a good time to them with your spouse or children the next ensure them that you wouldn’t want them to time a concern is raised. Then, you’ll beIf you feel they’re not telling you everything, make a decision without having all the facts, ready with enhanced skills when you meetencourage them to talk with phrases such as, or a decision that might not be exactly right your next future client.“I see. Is there anything else that concerns for about this decision?” or “What concernsdo you have about this…?” You want to In answering the concern, you must considerknow all the bad stuff, all the reasons for it as you would a close. You have to appeal to World-renowned master sales trainer Tom Hopkins is the chairman of Tom Hopkinshesitation they have before you move on. If their logic, yet close them emotionally. You’re International. He can be contacted atyou don’t, you may find yourself back at this helping them to rationalize the importance of 866.347.6148, or by e-mail atpoint again with this client. the concern and the value of your answer. 8
  6. 6. Dear Mr. Seime r, Congratulations on another grea event. I’m glad t sales to hear that you happy with the 6 ’re very 2 units delivere gross profit of $ d and a 201,748.00. Thethat you did it o best part is n your own, withcompany. This s o u t a s t a ffi n g aved you $50,4see you in a few 37.00. I’ll weeks. Thanks again.If you would like to enjoy the same resultsMr. Seimer did, call Turn-Key Events, the#1 Do-It-Yourself sales event provider. No Teams, No Commissions, Just Traffic!....and big $ in your pocket. CALL FOR A FREE MARKET REPORT.The Driving Force Behind EVENT SPECIALISTS ARE STANDING BY Automotive AdvertisingMarket Exclusive 866-665-5507Copyright © 2006 Turn-Key Events and it’s licensors.
  7. 7. sts fos ls ms sf fis BrianTracy sales and training solution Generating Energy You may have a requires the development and expenditure so that you are “early to bed and early thousand different of energy. Energy is a critical fuel and the to rise.” Remember, nature demands goals over the course one ingredient without which no other balance in all things. If you are going of your lifetime, but accomplishment is possible. to work hard during the day, you must they all will fall into take time off to rest and recuperate in one of four basic Building and sustaining your energy level the evenings and on the weekends.categories. Everything you do is an attempt is imperative. Since your energy is centralto enhance the quality of your life in one or to everything you accomplish, you should 5. Proper Breathing.more of these areas: be very sensitive to things that either build By breathing, I mean deep diaphragmatic or deplete it. Here are six keys to building breathing, where you fill your lungs toThe First Category is Your Desire for and maintaining a high level of energy and the count of 10, hold to the count of 10,Happy Relationships. vitality: and then exhale to the count of 10. IfYou want to love and be loved by others. You you do this seven to 10 times, two orwant to have a happy, harmonious home life. 1. Proper Weight. three times per day, you will be amazedYou want to get along well with the people Carrying extra weight on your body is at how much fresher and more relaxedaround you, and you want to earn the respect like carrying a pack loaded with bricks you feel.of the people you respect. on your back — uphill. Excess weight tires you out. It taxes your heart, lungs 6. Proper Attitude.The Second Category is Your Desire for and muscles. Extra weight forces your Positive mental attitude seems to goInteresting and Challenging Work. body to burn up more energy than it hand-in-hand with great achievementYou want to make a good living, of course, normally would just to maintain life and success in every walk of life. Thebut more than that, you want to really enjoy and proper functioning. more positive you are, the more energyyour occupation or profession. you have. The more positive you are, 2. Proper Diet. the happier you are. The more positiveThe Third Category is Your Desire for The foods you eat have a tremendous you are, the more positive are the peopleFinancial Independence. impact on your energy level throughout and situations you attract into your life.You want to be free from worries about the day. Changes in your diet can make The more positive you are, the easiermoney. You want to have enough money you feel fresher, more alive, more alert it seems for you to get the cooperationin the bank so that you can make decisions and filled with greater vitality than you of other people. The more positive youwithout counting your pennies. You want to can imagine. are, the more effectively you perform.achieve a certain financial state so that youcan retire in comfort and never have to be 3. Proper Exercise. Everything that you do counts in some way.concerned about whether or not you have The more regularly you exercise, Nothing is neutral. Everything either helpsenough money to support your lifestyle. the more energy you have, the better you or hurts you. Everything either adds up you feel and the longer you will or takes away. Everything either propels youThe Fourth Category is Your Desire For live. Regular exercise enhances your toward your goal or moves you away from it.Good Health. digestion, reduces the number of hours Everything counts.Be free of pain and illness and to have a that you need to sleep, and increasescontinuous flow of energy and feelings of your vitality in the physical, mental andwell being. emotional realms.The common denominator of these four 4. Proper Rest and Recreation.goals, and the essential requirement for On average, you need seven to eight Brian Tracy is the chairman and CEOachieving each of them, is a high level of hours of good, solid sleep each night. of Brian Tracy International. He can beenergy. The achievement of even a small Some people can get by on less. But you contacted at 866.300.9881, or by e-mail atamount of success in any one of these areas should plan and organize your evenings 10
  8. 8. sts fos ls ms sf fis ZigZiglar sales and training solution Telling is Not Selling As a sales professional, customer. These should be used when you are Learn to ask the right question in the right do you spend more sure of the answer. They are usually answered way. time telling or more with one word … and that word is usually Zig Ziglar is the chairman of the board of time asking? If you “yes.” For example, “Mr. Customer, if we can Ziglar Training Systems in Dallas, TX. This were to record your meet your demand for fair trade in amount, article was reprinted with permission. All sales interview, you’d will we have a deal?” rights reserved. He can be contacted atprobably find you are spending more time 866.873.0026, or by e-mail attalking than asking questions and listening. Questions are a sales professional’s best asset. a sales interview, you must identify theneeds, issues and concerns of the customer.The best way to achieve this is to ask questions.Then connect the answers to the needs andwants of the customer to your product. Have you Text MessagedQuestions are the sales professional’s mostvaluable tool. We need to be reminded to ask Your Customers Today?the right question and ask the question right.There are several questioning types andtechniques. Let’s cover four types ofquestions that you can implement today. Theyare the C.O.R.D. questions. This stands forClosed questions, Open questions, Reflectivequestions, and Direct-agreement questions.Closed QuestionsThese are questions that have one-word or“closed” answers. At the beginning of thesale call, these should be seldom used. Whenusing these, the sales person is not giving thecustomer an opportunity to expand on theanswers. Let’s say you are trying to identifythe buying criteria of a customer. You can ask:“In purchasing a car, are monthly paymentsimportant to you?” The answer may be “yes.”You may have to ask another question toidentify other important criteria. It may bebetter if you had asked an open question.Open QuestionsThese questions solicit “open” information. MarketView360 is a fast growing, leading-edge, multi-channel marketing solutionYou not only gain facts, but also information. that is designed to more effectively and efficiently reach your customers throughThese questions usually begin with who, what,why, when, where and how. For example, various mediums, including Target Email, Target Voice, Target Text Messaging,when trying to identify buying criteria, you Target Mail, and much more. The result is the deployment of highly personalized,may want to use: “What are the top criteriayou need when making this type of purchase?” powerful and targeted communications at the right time with the right medium.The answer to this question gives you insightsinto why these criteria are important.Reflective Questions Call 1.866.591.4238 orThese are questions that reflect on previousanswers. In the above conversation, the visit www.marketview360.comcustomer mentioned a “good, quality servicedepartment” in one of the answers. You can to find out more about Marketview360now go back and gain additional informationwith a reflective question. For example, “whatdid you mean by good, quality service?”Direct Agreement Questions The Most Intelligent Multi-channel Marketing System On The PlanetThese questions gain agreement from theseptember 2006 11
  9. 9. fs feature solution SeanWolfington is that they can be potentially devastating Search Engine Marketing template sites,” Rimas said of Red McComb’s – even business ending. Impure leads have SEM allows you to reach the majority of the site. “Within a matter of a few clicks, we can Monopolizing on Search the potential to be on a federal or state “do buyers in your market for a fraction of the update specials and incentives.” In addition not call list” and you can find yourself facing cost of buying leads, and for much less than to creating sales leads, the goal of the Web fines of up to $11,000 per call if you process traditional advertising. In addition, the leads site is to market the whole dealership. Step Engine Marketing these leads. Whether you’re a small dealership that are generated are not sold to other dealers one is to help sell a car today, but step two or a large dealership group, if you’re buying so the closing ratio and average gross are is to promote all the other profit centers leads, the question boils down to whether you higher than leads you and other dealers buy (service, parts, subprime, etc.) and to become are in the legal “safe harbor.” These impure from third parties. The good news is that you a marketing center, rather than just an Domestic Dealers Sell 300 - 500 Units With Search Engine Marketing leads, as defined by recently passed federal laws, states if a person is on a “do-not-call” pay for positive results only, and it is the most measurable marketing medium in the history information source.” registry and you have neither an existing of advertising. Tools business relationship nor their express written Red offers many opportunitiesUnderstanding the Game The Rules of the Game are displayed when a searcher types in the permission for you to call them, you could E-mail Marketing to generate leads and cultivate new opportunity.Would increasing your online sales from 40 Search engine marketing should be part of key phrases which you have selected. The ads face huge penalties; it is best to steer clear of To establish an effective e-mail marketing “Our CRM tool identifies our most successfulvehicles per month to more than 500 vehicles any dealership-marketing program. Research work by bidding on keywords and phrases; these impure leads. strategy, the first step is to generate a list of campaigns and tracks conversions,” Rimasper month get you excited? Red McCombs confirms that over 80 percent of prospective the more you agree to pay per click for that pure leads. “We use multimedia informational said. “Additionally, it automatically followsAutomotive Group in San Antonio, Texas, Web customers begin by using search engines keyword, the higher your site will rank in the Pure Leads mailings to communicate to our customers up on our customers from six months all thedid just that by implementing an Internet to locate products, services or information. paid results. The higher the bid, the higher The solution is getting your own “pure” through targeted campaigns that communicate way to six years, while communicating to ourmarketing strategy alongside a Search Engine Ensuring that your Web site is found when a your ad is placed. Since you pay only when leads generated internally through SEM. The the right message at the right time during customers though out all phases of the buying,Marketing (SEM) program to increase their consumer uses a search engine is a complex someone clicks on your site, you are able to most successful dealers have realized they our customers’ life cycle,” said Tony Rimas, follow-up, and service experiences. In definingmonthly sales while reducing advertising and time-consuming effort. Because the vast set up thousands of key phrases to increase can generate their own leads with a higher director of eCommerce for Red McCombs. our marketing strategy, our management teamexpenses. majority of consumers now use a search engine the probability of attracting consumers. Your return if they go direct to the customer by “Our CRM tool equips us with a campaign needed to know where the most profitable to find what they are looking for, being on the strategy should utilize a combination of appearing on top of their local search results and customized template for every scenario, Web traffic and customers were coming from.“We realized that in order to increase our first page of the search results is imperative if SEO and PPC advertising to gain maximum for the vehicles they sell. The best dealers in such as price, trade, payments and availability. By using our CRM, we were also able to tracksales, we needed to increase our traffic,” said your dealership wants to see a return on your impact. the country have created their own regional The templates we use increase the speed and this important statistic.”Tony Rimas, director of eCommerce for Red investment. The two most popular ways to buying service by marketing their site professionalism of our responses, and a bonusMcCombs. “To accomplish that, we changed advertise Web sites are through search engine Dealers are becoming more educated on through search engines and multi-media e- is that they set the stage for our employees to People, Process, & Pricingour marketing strategy and implemented optimization (SEO) and pay per click (PPC) advertising techniques that require less money mail campaigns so they can generate more make the initial phone call.” Every successful dealership includes a teaman SEM program to attract more quality advertising. The goal of each of these methods and generate a higher return from “more profitable sales at lower cost. of individuals who are passionate about whattraffic for less cost. Our new strategy drives is to attract consumers searching for vehicles targeted” leads that they own exclusively. The Online Marketing they do. Paglia of Courtesy Chevrolet said,more traffic, generates more sales, is easy onto your dealership’s Web site. smart dealers are generating their own “pure” Building Your Own Monopoly: Paglia said Courtesy Chevrolet uses targeted “We look for people who love to serve theto measure, and actually costs less than the leads and find that they are easier to close, banner campaigns as an effective online customer. Once we find the right people, Itraditional advertising methods we were Search Engine Optimization (SEO) generate more profit, and are less expensive. The Regional Buying Service marketing medium that allows Courtesy make it my mission to create an environmentpreviously using.” SEO involves the ongoing process of creating, Becoming your own automobile regional Chevrolet to market directly to people living that they’ll never want to leave, because we all developing and coding your dealership’s Pure vs. Impure Leads buying service involves having online digital within the geographic areas around their know the cost of employee turnover. We’veYour Move unique Website in order to to maximize the Every lead is not a good lead. marketing Web sites and SEO marketing dealership. “Our main goal is to be where our also learned that it’s not enough to find theWhat is all the excitement about Internet chance that its pages will appear at the top strategies that drive people to your dealership customers are and try to capture them before right people; you must have easy processes inmarketing? The Internet offers unique of the “organic” or “natural” search engine Dealers are becoming more educated on Web site. Here are the steps to use to transform they fall trap to third party lead providers place for them to follow.opportunities to create real-time, trackable results. SEO is a gradual process that can take advertising techniques that require less money your dealership into a consumer regional who sell our leads to competitors,” he said. “It is equally important to have a pricinginteraction with customers and prospects, weeks or months to achieve. and generate a higher return from “more buying service center using SEM strategy: Courtesy Chevrolet also allows prospects to philosophy that every employee understandsdeveloping an understanding of their targeted leads” that they own exclusively. The • Know your market and compile a list of register for a promotional offer that allows the and ensures there is fair profit into everyindividual needs and concerns from the Search engines determine your ranking in the smart dealers are generating their own “pure the most popular search phrases in your customer to be eligible to redeem the coupon vehicle. It’s imperative to involve everybeginning of their online search. organic search results primarily by analyzing leads’ and are finding that they are easier market. at the dealership. “It allows us to treat these member of the leadership team to ensure you • Special offers can be directed towards your Web site for the following: to close, generate more profit, and are less • Create and design alluring ad copy to prospects just like a phone up,” Paglia said. create a strategy that everyone can buy into, customers with specific interests. • Keyword relevance—how relevant the expensive. entice consumers to click on it. “Our business development center specialists because the power is in the belief.” • Pricing strategies can reflect best keyword phrase is used in your Web • Bid the right amount on the right are amazing at converting these telephone customer buying habits and loyalty site’s copy Impure Leads position for the each phrase. leads into appointments.” Cornering the Market patterns. • Link popularity—the quantity and An aspect of “impure” leads, leads that are • Adjust your bids daily to ensure you Desiring to achieve dominance in the • Detailed online product/service quality of third-party sites that link to hard to close or generate little gross profit, outperform your competition. Templated Web Site vs. Lead automobile industry, smart dealers have information can shorten buying cycles. your Web site Generating Machine discovered that building and branding a Web So, your Web site site, coupled with an effective SEM strategyRalph Paglia, eCommerce Director for Pay Per Click (PPC) looks great, but is will generate awesome results at reduced costsCourtesy Chevrolet in Phoenix, Ariz., shifted One of the most cost- your site a generating per unit. “We reduced our cost per sale downmarketing dollars from newspaper to online effective and most profit or is it just a to about $150 per vehicle while increasingmarketing. “I took a look at how much we immediate ways hyped-up brochure? sales by 80 to 180 units each month,” Pagliawere spending on conventional advertising to advertise on the “What makes our said. “Our results are a sign of our success andand tracked that for a few months before Internet today is to use Web site stand presence in the market. It’s only a matter ofmaking the decision to transition away from Pay Per Click (PPC) out in front of our time before other dealers do the same.”print, TV and radio and move toward digital marketing. PPC competitors is that itmarketing,” Paglia said. “Our return on advertisements are the is customized to our Sean Wolfington is the owner ofinvestment has gone up, our cost per sale has boxes usually shown specs, not just one He can be contacteddropped and our traffic and incremental sales on the right hand side of those out of the at 866.645.7730, or by e-mail athave skyrocketed.” of search results and box, cookie-cutter 12 13
  10. 10. sts fos ls ms sf fis CharlesArrambide leadership solution Resolving Disputes Without Going to Court How Binding Arbitration Can Help Reduce Risk When you think of arbitrate more claims than the dealer or Successful Implementation tools for reducing finance company. If binding arbitration is right for your risk in sales and F&I, • Obvious presentation of the dealership, use these tips for implementing binding arbitration agreement – The arbitration section it successfully: may not come to mind. should be obvious in the agreement and 1. Educate yourself. Be aware of your It can, however, be an not written in a smaller font than other state’s legal environment concerningexcellent risk-reduction tool. When properly important provisions in the same or arbitration.implemented, binding arbitration provides a accompanying document. 2. Educate your legal counsel. Be surefair and efficient forum for resolving legal they are up to date on the Federaldisputes. Work with your legal counsel to ensure that Arbitration Act as well as any state your binding arbitration agreement has the arbitration law.Arbitration is an alternative to going to court. best chance to withstand any courtroom 3. Educate employees. Make sure yourIt is binding when people agree in a contract challenges. sales and F&I employees know aboutto arbitrate disputes and waive their right to your binding arbitration program andtraditional litigation. Presenting Binding Arbitration that it is a consistent practice in sales to Customers and F&I. They should know howIf there is a dispute, one party begins the Binding arbitration agreements can be to present binding arbitration to aarbitration process by filing a claim with included in the buyer’s orders. customer and be able to answer basicthe arbitration administrator. During the questions.arbitration hearing, the parties present their If you use or plan to use binding arbitration, 4. Educate customers. Give customersarguments and evidence to an independent be certain your sales and F&I people know a brochure that defines bindingand neutral arbitrator. The arbitrator, how to present it properly. State that, “It arbitration, describes the process andusually a retired attorney or judge, weighs means that if you have a dispute with the lists its benefits.the evidence and makes a decision based dealership, you agree to go to a third party 5. Establish binding arbitrationon substantive law. The decision, called an to resolve it instead of going to court.” Then as a business practice. Make it aaward, is legally enforceable and as binding give the customer a brochure providing consistent business practice in youras a court ruling. detailed information. dealership. Tell your employees: At a minimum, your employees should be able “This is the program, this is how weThe Benefits to tell customers what binding arbitration is are implementing it and we will use itBinding arbitration can benefit all parties. on every deal. Monitor your programPrivacy is probably the most important and answer basic questions. Use a frequently asked questions and answers document to aid and follow up on non-compliance.”benefit, as the arbitration process is privatein all jurisdictions. In addition, because your employees. Keep a supply of brochures Protect Your Legacyprofessionals make decisions in arbitration on hand for customers who want detailed Consider whether binding arbitration is rightcases, the risk of an extreme award is lower. information. for your dealership. Weigh the pros and cons, Will I Lose a Sale? and talk to your legal counsel. If it is rightArbitration is typically less expensive and for you, use a properly drafted agreement. Itfaster than resolving a dispute through the Some dealers fear that binding arbitration agreements will cause them to lose sales. may be just the tool you need to help protectcourts. On average, arbitration cases are your legacy.resolved in less than nine months, while the I have talked with many dealers who useaverage civil case takes more than two years. binding arbitration and lost sales are not an What’s ahead? issue. Next month I will recap some of the riskEnforceable Agreements management measures you can implementYou must use a properly drafted and Occasionally, a dealer tells me about a to become compliant and reduce risk.implemented arbitration agreement. customer who refused to sign a bindingOtherwise, it may not withstand courtroom arbitration agreement. Many dealers have This information is presented for riskchallenges. Typically, a court will look at developed a standard business practice management purposes only. It is not to befive general areas when determining whether of obtaining a signed binding arbitration construed as legal advice or legal agreement is enforceable: agreement with every transaction. If the Consult your legal counsel for assistance. • Affordability – The agreement should customer refuses to sign the binding Universal Underwriters Insurance Company, not impose unreasonable fees that arbitration agreement, there is no deal. Tell its affiliates, agents and employees assume prohibit a customer from filing a claim. the customer you are sorry that you will no responsibility or liability for making this • Accessibility – The agreement should not be able to do business with them and information available. not impose undue burdens such as ask the customer to come back if he or she lengthy or unreasonable travel time on reconsiders. the customer. Charles F. Arrambide is assistant vice • Ease of use – The agreement should be Binding arbitration may not be right for president and associate risk officer written in plain language that customers every dealership. If you are thinking about for Universal Underwriters Insurance can understand. using a binding arbitration program, give Company. He can be contacted • Balance of fairness – The agreement it careful consideration and talk with your at 866.347.5019, or by e-mail at should not require the consumer to legal counsel. 14
  11. 11. sts fos ls ms sf fis JesseBiter leadership solution Give Your Worries Up Nothing can wreak up in due time. Cast all your anxiety in your work when you allow God to take havoc on an individual on Him because He cares for you.” control. or an organization 1Peter 5:6-7 like stress. In the fast- “Come to me, all you who are weary and paced business world An easy way to lower your stress level while burdened, and I will give you rest.” in which we live, at work is to make a small adjustment to (Matthew 11:28)there never seems to be enough hours in the your daily calendar. Just as meetings andday. The convenience of e-mail and mobile conference calls are part of your day-to- Remove the useless clutter from your life andphones oftentimes makes it even worse. Co- day schedule, set aside a few moments to schedule. Say “no” to certain tasks to avoidworkers, customers, and managers have all connect with God during the workday. You over-extending yourself. Forgive yourselfcome to expect an instant response, adding can schedule time to be in God’s presence and be positive about yourself. Each of useven more pressure to our already-hectic through prayer, meditation or simply reading is uniquely made by God for some specialworkday. What can a leader do to keep stress a few passages from the Bible. A brief purpose. Low self-esteem only makes itto a minimum and protect the overall well- spiritual connection can do wonders to help harder to deal with stressful situations.being of an organization? you relax and ward off the negative effects of Forgive others too. Stored resentment can stress. Jesus Himself would often withdraw only breed more stress.The most important thing to understand from the crowds to pray and He encouragesin combating stress is that no matter what us to do the same. Let go of stress by letting Life demands changes, whether you like themchallenges you may face, you are not alone. in God’s peace. or not. Pray for the courage of acceptanceGod is all around us, even in the workplace. and the ability to adapt. And if it is hard toIt is your choice to worry. God does not want Contrary to popular belief, it is actually see the positive, ask God for His peace andus to have to suffer from anxiety. God wants okay to not always be in control. It’s truly wisdom. Give your worries up to to come to Him and provide you with a humbling experience to know that therepeace. All you have to do is ask. is something out there that is larger than Jesse Biter is the president and CEO of us all. Regardless of your position in the HomeNet, Inc. He can be contacted at“Humble yourselves, therefore, under organization, you will find yourself more 866.239.4049 or by e-mail atGod’s mighty hand, that He may lift you relaxed and ultimately more productive We need them. They need us. We need you. It’s that simple. ® ® 16
  12. 12. sts fos ls ms sf fis PaulAccinno sales and training solution Where’s Your URL All traditional offer, and then invite you to the Web site for marketing efforts details. (TV, radio, print, outdoor, direct mail, Once you make marketing your URL a etc.) should include consistent strategy, you can incorporate it the dealership’s Web into any length or format. A simple formula address, or URL. is the “rule of thirds.” In the first third of the spot announce your event or offer, in theTo illustrate the importance of getting your second third of the spot briefly explain yourURL in all your advertising, think of it this offer and in the final third, drive them to yourway: No matter how big, how long or how Website for details.many times you run an ad, you cannot fityour entire inventory in an ad. The only “Don’t miss the Thomas Fordplace where you have all your new and used truckload of savings event thisvehicles available is on your Web site. Also, Thursday, Friday and Saturday. Thewhen you run in general media, you have area’s largest selection of Ford cars,competition. Your newspaper ad is right next trucks and SUVs. Shipments of ourto the ad of the dealer down the street. Dealers hottest selling models are arrivingare all over the radio and commercial breaks daily and prices are slashed to rockon TV. The only place where you have no bottom. We’ll even show you thecompetition is on your Web site. invoice. Plus, get up to $5,000 factory cash or zero percent financing. VisitSo how do you fit your URL in your for details. You’lladvertising? The simplest way is to add “dot find every new Ford in our truckloadcom” every time you say your dealership event, with detailed information andname in your advertising. See figure 1 and 2. photos in an easy to use format. The Ford truckload of savings event, going “Now during the Year End Clearance on now at” at we have our lowest prices of the year. Save like And as long as you are doing that, you never before on every car, truck and might as well show your Web site, show the SUV in stock. For complete details vehicles, and show them how robust your and to view our entire inventory of site is. Bottom line: There is always room new and certified pre-owned vehicles or time to market your Web site. Just make visit” sure you sit down with your ad agency and explain to them that it’s not an afterthought;Another way to market your URL is to create it’s that are specially designed to drive trafficto your Web site. One technique is to use a Paul Accinno is the president and CEO of“Small Space Web Driver.” These ads are WorldDealer Inc. He can be contacted atinexpensive to run and are not much bigger 866.319.6284, or by e-mail atthan a business card. They simply make an Figure 1 Figure 2september 2006 17
  13. 13. sts fos ls ms sf fis JeffMorrill sales and training solution 10 Keys to a Winning Product Presentation The more value and 4. Engage the Prospect in a Conversation better, obviously. If you’re new, then learn excitement you build No one likes lectures. Ask questions that help a few characteristics about the brand that during the walk- you understand the amount of knowledge are consistent across the model line, so you around, the more they have about the product (“So, what do can talk about the same features/benefits momentum you’ll you know about Subaru?”) and also how they regardless of the vehicle you’re showing. For have during closing, intend to use it (“What kind of cargo will you Subaru, these might be all-wheel drive andwhen you need the prospect to want the car carry back here?”). Ask questions that allow the boxer engine. If you’re a veteran, use yourmore than he wants to keep the $15,000 or the prospect to take mental ownership (“Do down time to expand your knowledge about$25,000 that the car costs. you think your golf clubs would lay flat back competitors’ products by reading reviews. here or do you imagine we would need to Beware of being a know-it-all, though, and1. Know What Your Prospect Wants fold the seat down?”) match the complexity of your presentation toin a Vehicle the prospect. The goal is not to impress theUse the information learned during the 5. Let the Customer Feel and Touch prospect with your knowledge, but rather toinvestigating step to tailor your product the Vehicle excite and educate.presentation (walk-around). If you didn’t Point out the latch and let him open theask the following question during your tailgate himself, let him close the doors and 9. Present For a Minimum of 10 Minutesinvestigation, ask before you begin the walk- feel the solid “thunk.” Oreck retail salespeople present for 10around: “What’s the most important thing to minutes to sell a $500 vacuum cleaner. You’reyou in a vehicle?” Always follow up with 6. Tactfully Compare Your Product/ looking for tens of thousands of dollars.“What does ________ mean to you?” because Dealership/Experience to Others Your presentation should cover at least“safety” or “performance” or “image” mean Beware of criticizing other dealerships or seven features/benefits. I’ve seen our bestdifferent things to different people. products. For those you know are comparing salespeople give 30-minute presentations - your product to one elsewhere, politely point and if you are excited, know your product,2. Know the Difference Between a out the advantages of buying from you. “Mr. involve the prospect with questions, andFeature and a Benefit Prospect, you can’t go wrong with a Toyota ask him to operate parts of the car, then 30A feature is the thing and a benefit is what the RAV4; they build a great vehicle. However, minutes isn’t too long. Of course you needthing does for the prospect. “Mr. Prospect, my customers who drive the RAV4 after to adjust the length of the presentation to thethis six-disc audio unit keeps your hands driving a Forester almost always come back prospect’s attention span, level of interest,safely on the wheel instead of fiddling with to buy the Forester. Here are a few reasons etc.CDs….” You don’t need to tell someone why….”what a power window does, obviously, but 10. Trial Closethe benefits of a feature such as all-wheel- 7. Get Excited Ask trial closing questions throughout,drive are lost on most folks who think that A few steps down the road to the sale, you’re such as “Do you think this vehicle hasit’s beneficial only in snow. going to ask your prospect to part with tens what you’re looking for?” and “Would you of thousands of dollars - all at once or over feel more comfortable/cool/safe in this car3. Move Clockwise Around the Car 60 months. If you’re not excited about the compared to the one you’re driving now?”I like to start at the front of the car, offering car, how will he be? Our moods and state These questions help your prospect takea peek at the engine. For a Subaru, I talk of mind are contagious. Make sure you mental ownership and give you the feedbackabout the benefits of the boxer engine and know enough about your product to have a you need to make sure you find the right carsymmetrical all wheel drive. Moving to few things you think are really neat. If you that fits his budget.the passenger side, I talk about airbags and believe everybody should have all-wheel-interior creature comforts. In the rear, I talk drive, for example, then your enthusiasmabout utility and cargo capacity. I finish with will influence your prospect. Jeff Morrill is co-owner of Planet Subaru in Hanover, Mass., and Planet Chrysler Jeepthe customer in the driver seat for a seamless in Franklin, Mass. He can be contacted attransition to the test drive (just put on a plate 8. Know Your Stuff 866.872.8699, or by e-mail atand go). The more you know about your vehicles, the 18