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Visit us online at www.AutoSuccessOnline.com                                               September 2008
September 2008                          HIGHLIGHTS OF ATTITUDE                                                       8    ...
SIZE MATTERS!                                     When it comes to                                                    Busi...
STS                            TomHopkins                            HIGHLIGHTS                            OF ATTITUDE    ...
MS                                             MarcSmithmarketingsolution                                             IF I...
LS                                            StephenR.Coveyleadershipsolution                                            ...
The Choice is Yours...     DOOM                                OR      Bloom“My market’s dead. Nobody is buying.”         ...
FS                                                                   Willis Honda                                         ...
MS                                                   ChuckPatton & TriciaPattonmarketingsolution                          ...
STS                                                 JasonBlairsales&trainingsolution                                      ...
STS                                                 D.J.Harringtonsales&trainingsolution                                  ...
STS                                                 MarkProctorsales&trainingsolution                                     ...
More Traffic. More Leads. More Sales.                                                          with                        ...
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AutoSuccess Sep08

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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

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

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Transcript of "AutoSuccess Sep08"

  1. 1. Visit us online at www.AutoSuccessOnline.com September 2008
  2. 2. September 2008 HIGHLIGHTS OF ATTITUDE 8 TomHopkins Isaiah 9:2 The people walking in darkness have seen a great IF IT’S ROUND IT’S NOT SOUND 9 MarcSmith light; on those living in the land of the shadow of death a light has dawned. 8TH HABIT LEADERSHIP Part 2 10 StephenR.Covey address: 3834 Taylorsville Rd. Building A, Ste. 1B WILLIS HONDA ACCELERATED FROM 60 TO 130 INTERNET UNITS IN LESS THAN 60 DAYS 12 An Interview With JanelleKershbaumer Louisville Kentucky 40220 phone / fax: SERVICE: CHANGING THE SIMPLE MAILER MINDSET 14 ChuckPatton & TriciaPatton 877.818.6620 / 502.588.3170 web: AutoSuccessOnline.com RED FLAG RULE AND YOUR DEALERSHIP 16 JasonBlair AutoSuccessPodcast.com team: CONVERSATION WITH ERIN 17 D.J.Harrington Susan Givens Publisher sgivens1@autosuccessonline.com POLICY AND PROCEDURE FOR PROFIT 18 MarkProctor Thomas Williams VP & Creative Director 22 SMALL COST...BIG REWARDS design@autosuccessonline.com DougBurkert AND A LOT OF LOST GOLF BALLS Dave Davis Editor and Creative Strategist THE CULTURE OF TEAM Part 1 24 JimAdams ddavis@autosuccessonline.com Brian Ankney A CRYSTAL BALL IS NOT ENOUGH 25 SteveBrazill Sales-Improvement Strategist super6@autosuccessonline.com general information: SPECIAL FINANCE REALITY CHECK: THE SKY IS FALLING! NOT 26 HelmiFelfel info@autosuccessonline.com eNewsletter: CAN YOUR STAFFED EVENT COMPANY DELIVER WHAT IT PROMISES? 30 MattBaker enews@autosuccessonline.com BILL WALSH AUTOMOTIVE TAKES ADVANTAGE OF THEIR WEB SITE TO INCREASE TRAFFIC AND 32 LarryCochran INBOUND SALES CALLS AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or PROFOUND ADVISE - 45 TO THRIVE 33 info@autosuccessonline.com. Subscription rate is $69 per year. DalePollak 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 34 contributing writers latitude in expressing advice and solutions; views COUNT TO 10 AND WIN PaulD.Cummings 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 this magazine may be linked INTERNET SALES 20 GROUP XI 36 SeanV.Bradley 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 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 to12 AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220. 26 36 helping to support...
  3. 3. SIZE MATTERS! When it comes to Business Development size does matter. Companies that use SELMOR BDC always sell more! Eight U.S. BDC Communication Centers with over 1,060 Seats. Servicing: Direct Mail Marketing Companies, Ad Agencies, Third Party Lead Providers, Internet Lead Companies, and Automotive Manufacturers. SELMOR BDC Call Today! 877-338-5050 www.selmor.biz 22601 North 19th Avenue, Phoenix, Arizona 85027©2008 Selmor Group LLC. All Rights Reserved.
  4. 4. STS TomHopkins HIGHLIGHTS OF ATTITUDE You must work on Then, every morning make a commitment Procrastination can also negatively affect keeping your own to live in the present moment. The present your attitude. Never do tomorrow what you positive attitude every day. Too many people moment will determine your feelings, can do today. Procrastination is a disease in automotive sales wait for a good client, an your attitude toward the day — which will that many of us have. Procrastination easy sale, a motivational meeting, a seminar determine your productivity. So by the is defined as living yesterday, avoiding or their manager to provide motivation. negativity of yesterday you are ruining the today, and thus ruining tomorrow. If you future. Let it go and live in the present. have this disease, remember it takes 21 The day you turn pro is the day you realize days to effect a change. If you will give 21 that attitude in selling is everything. A good Want — but don’t need — everyone’s consecutive days to working on overcoming attitude is something you must cultivate and approval. You’ll never get everyone’s procrastination, you will overcome it. grow within yourself. The most important approval. There’s always someone who things you carry with you every day are will say they don’t agree with you, they How do you do this? Do it now. Successful your enthusiasm and your excitement for the don’t believe in what you believe or that people do the things average salespeople are job you do in serving people. something you propose just can’t be done. afraid to do or stop just short of doing. They Don’t take advice from anyone more messed do what they fear most. By doing those A key element in a successful automotive up than you are. If you do, you are letting things you fear most, they will become your sales career is to realize that people say them determine your attitude that day. strengths and carry you forward to success. “yes” to you based more on your conviction and your enthusiasm than anything else. Another thing to work on is anger. Anger can And finally, realize that one of the keys And if you don’t have it inside you, you cost you not only income, but relationships. to a good attitude is to really be proud of won’t be able to transmit it to others. Control your anger. Don’t get mad — turn what you do. In our country and our times, other people around. What does that mean? people need vehicles to get to their jobs, to So how do you get this attitude? First of all, When talking with an angry client, be kind, spend time with their loved ones and to do you must get rid of some of the things in the be gentle. Let them know you are glad their chosen work. You help those people past that might be holding you back. Stop they called. Not only will they appreciate to have the right vehicles for their needs at dwelling on your failures. You can’t change this, but also after two or three minutes of investments they can afford. And you’re the past — it’s gone forever. Throw it out venting their anxiety and emotions, they will good at it because you know your inventory. and don’t dwell on it. Every time you let probably apologize for losing their temper. You are a great listener when potential it take over your thoughts, you’re reliving Now you have won a client by not matching clients explain their needs and you’re a great negative emotions. Why would you want to their anger with yours. communicator. All those traits help you to allow that to happen? help them make wise decisions and you Don’t demand fairness. Many of us get benefit for providing that valued service. If need be, take a few minutes now to down when we have lost a sale to our envision any past failure that’s sticking with competition or because our potential client Walk with your head held high because you you. Picture it on a chalk board or white changed his or her mind. Don’t sit back and chose the profession of selling. Go out and board. Then mentally erase it. Get rid of say, “That’s not fair.” You’re a grown up, do the best job ever. it. If you’ve been dwelling on it for a long not a little kid. Let it go. If something is not World-renowned master sales trainer Tom time, you may need to do this exercise more fair, do what you can to change it, but don’t Hopkins is the chairman of Tom Hopkins than once (like whenever it raises its ugly dwell on it if something doesn’t go in your International. He can be contacted at head), but do it. Erase that bad experience. favor. You’ll find things in your life that may 866.347.6148, or by e-mail at It’s holding you back. not seem fair, but that’s just the way life is. thopkins@autosuccessonline.com.8www.autosuccessonline.com
  5. 5. MS MarcSmithmarketingsolution IF IT’S ROUND IT’S NOT SOUND We all know that he would see what he could do. He would selling price, consider doing it in even $1.99 sounds better excuse himself, returning shortly with a final amounts. You see, any time it is difficult for than $2.00, and judging by its success in proposal. With a slight nod he would tell the the customer to compute the adjustment or the retail world, we know that this type of customer that we were close. “I need your discount, they tend to see little difference marketing works. But why? I recently read help. I need another $379.16,” he would say, between the original selling price and the an article about how to price real estate to and then wait for the customer to respond. I discounted price. Suppose you wanted to make it more attractive to the buyer. The can’t tell you how many times the customer drop the selling price of a car from $32,854 author remarked on how most people don’t would close on the uneven figure. to $31,950. Showing a number like $31,854 understand what appeals to the buyer when would make it easier for the customer to pricing their property because they are This is also an effective technique when calculate the savings. When the digits on the pricing it from the seller’s point of view. trying to bump the customer’s payment. The left are the same, customers tend to group customer may be at $465 but you need to these together and focus more on the digits When you think about it, what does the be around $550. In this example, you would on the right. In other words, if the price is consumer look for in the price? Research want to present the customer with a number $32,854 you may want to reduce the price to shows that consumers tend to look in blocks like $546.63. Many managers today would $32,654. as to what they want to pay. For example, still send someone back or take a T.O. and people will look at properties between ask for another $100 to $200. Remember, The next time you are negotiating, $100,000 and $199,000 or $300,000 to you appealed to the customer’s emotions on remember, if it’s round it’s not sound. $399,000. If you were to take a property that the selection of their new vehicle; now you you have listed for $310,000 and reduce the need to focus on their logical side. Marc Smith is the senior vice president price to $299,900, the number of potential of The Cardone Group. He can be buyers would increase. The research After the initial presentation of payment contacted at 866.665.4479, or by e-mail suggests that round numbers, for example or down payment, always focus on the at msmith@autosuccessonline.com. $400,000, may convey quality, but a precise difference. When number like $395,385 indicates a bargain. the customer is In other words, an uneven number gives the taken from $465 impression that some thought has been given to $546.63, for to pricing. At this price, buyers believe they example, you are not only staying within their $300,000 want to present block, but are getting more value. the difference of $81.63. Not only YOU HAVE CUSTOMERS These strategies can be applied in the will it look better negotiation process when selling a car. In the to the customer, AND PROSPECTS. early 1990s, I was working for a dealership but will make in the used car department. To this day, the it easier to manager who I worked with was one of break down the the best closers I have ever met. One of the number into things I learned from him was the principle an everyday, of structuring a bump. The bump is when you may or may not have a deal, but you small difference throughout the WE HELP YOU GET want to improve on the offer the customer has made. For example, instead of sending negotiation process. A LOT MORE MILEAGE me back to the customer for another $500 down, the manager would send me back When it comes OUT OF THEM. asking for another $484 down. This seemed to discounting to work better than asking for $200, $300 or the price, it $500 down, which many previous managers works a little Let’s roll. had suggested I do. Again, an uneven differently. number appears to have taken some thought Research has and calculation in order to justify the request. shown that when It is more likely to be real and sound. A negotiating an round number appears to be fabricated out of odd amount thin air. of a discount, the customer 866-964-6397 imnLoyaltyDriver.com If I were to be unsuccessful in getting the may perceive customer to bump up to the $484, he would the number then come out to meet the customers face-to- as a small face and give it one more try. If the customer amount. When 9 would still not budge, he would tell them that dropping the the #1 sales-improvement magazine for the automotive professional
  6. 6. LS StephenR.Coveyleadershipsolution 8TH HABIT LEADERSHIP Part 2 In my last column, I truly unique, contribution of management organization, depersonalized in their work pondered the in the 20th century was the fifty-fold and more motivated to sue than to support millions of dollars organizations spend on increase in the productivity of the manual the firm when things get tough. leadership development without achieving worker in manufacturing. The most any significant breakthrough in leadership important contribution management needs What is the key difference between the two effectiveness. I think I know why there’s to make in the 21st century is similarly to mindsets? It is summed up in what I call no breakthrough. increase the productivity of knowledge the “8th Habit” of effectiveness: Find your work and the knowledge worker. The voice and help others find theirs. Those millions are wasted because most valuable assets of a 20th century our models for leadership training are company were its production equipment. The “8th-Habit” leaders see people hopelessly out of date. We are stuck in The most valuable assets of the 21st century differently. She does not view people a mindset of leading organizations from institution...will be its knowledge workers.” as “functions” or in terms of a “job a controlling Industrial Age model that description.” She views people as absolutely suppresses the release of human In the Industrial Age, you could treat endowed with unlimited potential. She potentail. As a result, we continue to train manual workers as interchangeable parts therefore sees her task as helping people leaders for an age that is receding rapidly — all you needed was someone who could see in themselves the tremendous value into the past. We need to shift our entire follow procedures. When all you want is and contribution they can bring to the mindset if we are to educate leaders for the a person’s hands, you don’t need to be enterprise. Information Age. concerned about the heart or the mind. All you need to know is how to manipulate Instead of limiting or controlling people, Consider what happened in the 19th century, people — and that sums up most of what is she seeks to understand them deeply — to when the Agricultural Age gave way to the called “leadership training.” understand the profound potentialities in Industrial Age. When the factory showed each individual, so they can be freely and it could outproduce the family farm by Many will say, “We know all about the voluntarily unleashed. fifty- or a hundredfold, a lot of people were Information Age. We’ve long since made threatened. Protesters of industry, called the adjustment. We no longer manage This is the essence of “8th-Habit” “Luddites,” attacked and burned factories workers as interchangeable parts. We value leadership, what I call “helping others find because they were fearful of this new way them as intelligent contributors,” and so on. their own voice” — To communicate to of thinking. Inevitably, though, 90 percent That claim is tough to reconcile with recent people their worth and potential so clearly of farmers had to find a new way to make findings from a joint FranklinCovey/Harris that they come to see it in themselves. a living. Interactive xQ poll. Fewer than half (45 Think about this definition. Isn’t this the percent) of U.S. workers feel that their essence of the kind of leadership that Do you believe that the age we’re moving contributions at work are valued. About profoundly influences and truly endures? into will outproduce the Industrial Age by three out of five workers (59 percent) feel 50 times? Do you have any doubt about it? that the organization does not tap into the Originally ran in CLO Magazine I believe that this new age will eventually best of their talents and passions. bring about a downsizing of 90 percent of the Industrial Age workforce. Imagine what Consider this analogy. If your stockbroker it will take for leaders to succeed in the were allowing three-fifths of your capital midst of this dramatic shift. to go uninvested, you would fire him. Yet we continue to manage people wastefully Stephen R. Covey, Ph.D., is co-founder of FranklinCovey, and is the author of In Management Challenges for the 21st with our Industrial Age mindset instead the best-selling The 7 Habits of Highly Century, Peter Drucker compares the of leading them with an Information Age Effective People. He can be contacted at Industrial Age with today’s Information mindset. When treated as interchangeable 866.892.6363, or by e-mail at Age: “The most important, and indeed the parts, people are alienated from the scovey@autosuccessonline.com. 10 www.autosuccessonline.com
  7. 7. The Choice is Yours... DOOM OR Bloom“My market’s dead. Nobody is buying.” “It’s a challenging economy, but G&A’s Staffed Events are helping me grow my business and market share.” Saturn Dealer, West Virginia 56 Units Sold, $274,877 Gross Profit August 6 - 9, 2008“I’ve given up trying to move SUVs or “42% of the vehicles sold during mybig trucks.” G&A staffed event were SUVs and big trucks.” GM Dealer, Texas 32 Units Sold, $123,500 Gross Profit August 6 - 9, 2008“I’m cutting way back on my “I’m spending smarter now - G&A’sadvertising until the economy turns Guaranteed Gross Profit Eventaround.” protected my down side.” Independent Used, North Carolina 56 Units Sold, $264,400 Gross Profit July 29 - Aug. 2, 2008“If things don’t turn around soon, I’m “I can’t afford to lose my best sales-afraid I’ll lose some of my best people and managers. G&A’s eventpeople.” gave us big numbers and really boosted the energy and morale at my store.” Chevrolet Dealer, Pennsylvania 70 Units Sold, $278,500 Gross Profit July 29 - Aug. 2, 2008 gamarketing.com 800-688-1370 mbaker@gamarketing.com
  8. 8. FS Willis Honda out how many computers we needed, and Video Search Engine Optimization went owner has another store, Davis Acura infeaturesolution included the software and browsers that a long way to boosting our visibility in Pennsylvania, and we are consolidating our needed to be installed on the machines. The the search engines. One of our YouTube online marketing efforts for both stores to document even estimated what it would cost testimonials is now on the first page of create a centralized operations center. We Accelerated From us to outsource the IT to a local company. Google results and gets a lot of click-thrus. have 19 work stations available, and our We also use video testimonials on the home goal is to achieve more than 200 unit sales 60 to 130 AS: How did they help with people page of our Web site. in the next 60 days. and the process? AS: After the Internet restructuring We don’t do it all by ourselves. We use the JK: Dealerships often underestimate the did you feel like an expert? monthly support services provided by our value of their People. We agreed that Internet training team. This provides us Internet Units in less than this was a make-or-break proposition. It JK: I sure knew a lot more than I did before with call monitoring, mystery shopping and was critical to have the right staff to hit we started working with the team, but I analysis of our leads in our software to help 60 Days the numbers we wanted to achieve. The believe there is always more to learn. Earlier With Help From us save deals, and focus on specials which company mapped out our HR growth plan, this summer, Dealer Synergy held their first can increase our marketing opportunities. helped create profiles, job descriptions and Internet Sales 20 Group, Internet Director Their support program provides us with pay plans. When it came time to staff up, Immersion Program. This is a five-day An interview with access to their support team and regular they posted all of our recruitment ads on program designed for Internet Directors; I JanelleKershbaumer onsite phone training sessions for our team. Career Builder, Monster.com, WorkPhilly. wasn’t sure I needed it at this point but was Working with our new system, we went com and Craigslist. curious and I must say I am glad I attended. from $75,000 monthly gross profit to over AutoSuccess would like to congratulate on our volume. We didn’t just want to boost Process and Promotions. We started with $260,000. The results clearly show we Willis Honda for their incredible sales our sales a bit — we wanted to be a strong, our Products. We were not satisfied with our Additionally, they took all the initial calls, Unlike a lot of Internet training which found the right partner to build our success. effort and taking their Internet delivered powerful competitor and be one of the current Web provider, so after listening to reviewed the resumes, conducted the gives you and overview but little detail, the vehicles from 60 to 118 units in a 30-day dominant stores in the market. our concerns about our current site, Dealer preliminary screenings and set up second Immersion Program really got into the nuts Sean V. Bradley is the founder and CEO period. Then, 30 days later, they boosted the Synergy recommended another vendor to interviews for me. I have to say that this of Dealer Synergy, a nationally recognized and bolts and what it means to be an Internet number to 131 online units. Some of you AS: You brought on Dealer Synergy consider. TK Carsites had just introduced a was a tremendous resource because I didn’t training and consulting company in the director. We covered, in depth, all of the reading this article may be saying, “Well it’s to assist in your efforts. How did you new technology that helps dealers in getting know exactly what to look for, and this automotive industry. He can be contacted technology components including Web sites, a Honda store, so that’s not unusual.” But as select them? better search engine positioning. We found process is cumbersome. at 888.814.0409, or by e-mail at lead management and customer relationship Paul Harvey says, you need to hear … the their design team well grounded in the areas sbradley@autosuccessonline.com. JK: We researched them online, and were Once Dealer Synergy was onboard, they software; call monitoring, loyalty and rest of the story. impressed with their site design and content. where we needed assistance. went through a five-day onsite training rewards programs, and facility design and Next, we Googled them, and looked for program. It was very detailed and included structure. I would highly recommend to Willis Honda is not a huge facility in a brand Our Internet training company then all my peers to try and attend one of these new luxurious showroom in an upscale them on YouTube, and found that the how to become a “Phone Sales Ninja,” showed us how to leverage YouTube video sessions. suburb of Philadelphia. In fact, their modest, company and its CEO, Sean V. Bradley, along with how to handle the e-mail leads, testimonials to boost our dynamic content off-the-beaten-path dealership in Burlington, were all over the search results. Previous incoming and outgoing phone calls. We on the Web. Next, we reviewed our lead AS: Can you tell us about your N.J. barely has room for one vehicle in to this effort, we had looked at other learned how to be the best coordinators on management and CRM process. We had results after working with your their showroom. They compete against Internet Training company’s sites and were the planet. The training was intense but I can a basic system in place but it wasn’t too Internet training company? larger, better positioned Honda stores with disappointed at their search status, the lack honestly say our team enjoyed the process. effective; they assisted us in picking out a of depth on their Web sites and how they Naturally during the training we spent a lot newer facilities and better inventories, better tool. Then they supplied us with a JK: They were certainly a results-oriented and somehow this “underdog” dealership presented themselves online. If we were of time on establishing the Process. They library of more than 30 e-mail templates company. Our department began with has created excitement in the market and going to hire a company to build our online created custom checklists, procedure policies built to escalate the e-mail to the phone just me and two other people. Now a few achieved what many said was impossible. presence, we wanted to see that they were and books we could refer to for information call. They even provided a library of months later, my department has grown to We caught up with Janelle Kershbaumer, the able to build their own, as well. and tips on managing the day-to-day voice mail scripts, which turned out to be 14 coordinators and two assistant directors Internet Sales Director for Willis Honda and operations. We found that when you stick to incredibly valuable for us. We sometimes to handle the 131 units online in a month spoke with her to find out how they worked AS: How did they begin when they the plan, you will get the results you want. had issues handling phone objections, but we are selling. We moved our department their magic. came in? into an off-site facility across the street, they provided us with a list of common AS: How did they help you promote JK: First, they set up an in-store objections customers use and then scripted your dealership? which used to be a Suzuki dealership. Our AS: Janelle, how many units were rebuttals for our sales team to utilize. I was you delivering online about six consultation. They came into our dealership and analyzed our dealership for literally so impressed with these that I made up JK: Once you have the department months ago? posters for our call center, and on each one organized, having the proper Promotion is a hours. It wasn’t like an interrogation, but a JK: Our store was averaging about 50 to thorough review of our systems, our DMS, is an objection, and the beginning of the key factor in determining your success. Our 60 units online. We didn’t have any fancy our CRM and our lead management process. script for the rebuttal. Now anyone working Internet training company was particularly system, just worked our Web site, called our We naturally reviewed our Web site, lead the phones in our center can look up and see strong in this area and helped us initiate lead prospects, and it helped that we were generation and even our computer hardware. these posters, so we don’t stumble when we some very creative and cost-effective selling Hondas. We knew we were missing We were also pleasantly surprised when get hit with an objection now. This was so promotions. They designed campaigns, opportunities, but weren’t sure how to begin conversation turned to human resources popular we printed 90 T-shirts with these crafted micro-sites, showed how we could or revamp our process. and we discussed our staff, their job objections and responses on them, and our use press releases to gain more local descriptions, qualifications, hiring process… team wears them every day. visibility and made us aware of online AS: Okay, so what got you moving to you get the picture. It was very in-depth. reputation management. While the Internet initiate some changes? AS: Did your Internet training is a positive growth medium, there are some AS: What were the first steps they company provide any assistance in people who use it in a negative way, so JK: We were tired of missing the boat. We took when they were brought on- acquiring the right hardware? we found it very important to monitor our knew we had some good raw skills, and that board? reputation on the Web. CarFolks.com was the Internet part of the business was going JK: They had a senior IT officer from one of the tools we found that offers us a to continue to expand, but we were lacking JK: We learned that a dealership’s Internet their company make an onsite visit and he place to build our reputation and give our 13 in getting a grasp on the whole BDC aspect department is maximized or underutilized created a scope requirement document on customers a place to share their experience12 of a department and the impact it could have in four key quadrants: Products, People, our location and physical setup. It mapped with other consumers in our market. DTX is a registered trademark of Detroit Trading Company.
  9. 9. MS ChuckPatton & TriciaPattonmarketingsolution SERVICE: CHANGING THE SIMPLE MAILER MINDSET The days of customer with an offer is still the most • Frequency demonstrates Consistency simple and effective way to touch a customer, it is • Consistency breeds Familiarity minimal service marketing have come and important to understand the difference • Familiarity creates Confidence gone, and it’s time to adopt a newer, well between a simple service coupon mailer vs. • Confidence cultivates Trust thought-out plan of attack. What must a an intelligent service marketing program. • Trust is why people buy dealer do to think outside the box in this economy? As a first step on the path to Planning and Frequency Dealers are achieving record months in this securing your dealership as a market gainer The most obvious difference is that a down economy. Amazingly, we work with in a sea of dealerships posting continual program plans out further than the next 30 and talk with many dealers out there that losses, you should stop the simple coupon to 60 days. A service marketing program have achieved record months in service and mailer mindset. will provide a long-term written plan of parts gross sales over the recent months. not just what service offers will run next Yes, that’s right — service departments Success was a numbers game. Previously, month, but rather which offers will run with record sales months in May, June and a service department could depend on to which customer groupings for the rest July 2008. How is that possible? Isn’t the new vehicle sales to continually feed of the year, and the plan will provide a economy terrible? Aren’t sales way down? the customer pool. And if they weren’t method for measuring and adjusting the capturing enough of those new potential message as customer behaviors shift. This impressive success has occurred customers, they could look to steady flow because the message being conveyed in of warranty work and internal work to Reach vs. Frequency: the marketing programs was consistency, keep service bays full. If they experienced Understanding the Difference confidence and trust. Strategically targeted a slight dip in RO traffic, a quick fix “Reach” is the number of customers that mailers were sent out as a part of a planned was to send out a coupon mailer with an you market to, and “frequency” is the program that: inexpensive oil change. number of times you touch each customer • was consistent and planned six months with your message. In a world with an to a year in advance by examining Success is a service game. Dealers now unlimited ad budget and a huge co-op existing customers and their servicing need to fight their way to the top by account, you would maximize both reach behavior examining their processes and innovating and frequency. However, since most • was sent to markets that were new methods and a new mindset to position dealers live in a world stripped of co-op segmented so that mailers with relevant themselves in the black. These dealers and a shrinking ad budget, we must make messages went to targeted customers will recognize their service department as a choice between reach and frequency. • were directed by the dealer (not their the place where their future sales stability In real situational terms — do you mail manufacturer) and achieved through a lies. These dealers will think past the to your entire customer database three to professional marketing partner immediate, and ignore the inflated promises four times a year, or do you mail to a part • always kept a consistent branding of getting 50 new customers this weekend of your database more often? A successful image and sold the value of the dealer’s with a one-hit promotion. service marketing program will provide brand (their relationship) — not just the a strategy to maximize your reach and manufacture brand Service Coupon Mailer Mindset vs. a identify target markets based on the needs • were campaigns that communicated Service Marketing Program Mindset of your dealership. confidence and care of the customers The dealers who explode with success will and created a trusting relationship be the dealers who stop thinking “How will When faced with the choice between I increase business this month?” but rather reach and frequency, the golden rule of Success is a service game. Achieving start running a strategic well thought-out advertising is: Reach without Frequency = results will be attributed to the trust that service marketing program for the year. Wasted Money. you build with your customers and the A “service program” is built upon the consistent way that you communicate with understanding that, like any successful diet The service coupon mailer mindset was determined to mail to as many customers them. Examine your service marketing and fitness routine, these campaigns and and proactively take steps to turn it into efforts are long-term commitments. Long- as they could, not worried about details such as the validity of the address, if the a strategic program, giving it the same term commitments require conscious pre- amount of attention and effort as the planning, innovative thought, consistent recipient still owned the vehicle, how far away they live, if they were just at the amount of absorption you expect your behavior and examination of progress. service department to carry over these dealership recently, etc. Not all mailers are “just a coupon mailer.” down sales times. Changing the mindset The foundation of an intelligent service A service marketing program mindset in service marketing will go a long way to marketing program mindset is grounded knows that, undoubtedly, one of the biggest building long-term success. by practices built on frequency. Frequency wastes of marketing dollars is promotional involves several communications, designed activities that are implemented without Chuck and Tricia Patton are the founders to uniquely address different customers adequate frequency — there are no “one hit of Traffic Builders Inc. They can be 14 based on their service behavior. While wonder mailers.” A “program mindset” is contacted at 866.859.8520, or by e-mail the method of using a mailer to reach a grounded by the basic belief that: at patton@autosuccessonline.com. www.autosuccessonline.com
  10. 10. STS JasonBlairsales&trainingsolution RED FLAG RULE AND YOUR DEALERSHIP On Oct. 31, coming year. The Red Flag Rule went into mean for my dealership?” Auto dealers who 2007, the federal effect on January 1 of this year, and has engage in financing activities are required government announced a rule that a mandatory compliance date of Nov. 1, to establish an Identity Theft Prevention specifically deals with the prevention of 2008. Time is of the essence to fully meet Program that is designed to detect, prevent identity theft. Identity theft is the fastest this regulation. and mitigate identity theft. growing crime in America and is projected to touch one out of eight people in the You are probably asking, “What does this Your program must consist of six components: 1. Identify relevant “red flags” (patterns, practices or activities that indicate the possibility of identity theft) relevant to the credit origination process 2. Detect and evaluate these “red flags” in connection with individual customer transactions 3. Respond to the “red flags” you detect in an appropriate way to prevent identity theft 4. Ensure your program is updated periodically to reflect changes in risk to customers from your experiences and new identity theft activity 5. Policy generation and reporting capabilities with annual audits 6. Employee training for those involved in the origination of new accounts Identity theft continues to be a major threat to and a significant concern for American consumers. Identity theft costs time and money for financial institutions and auto dealers, which can create significant risks to safety and soundness. Even worse, such fraud wreaks havoc on its victims by destroying credit histories, violating financial privacy and ruining good names. Any financial institution or auto dealer should be vigilant and proactive in helping to protect their customers from this serious financial crime. This new rule is involved and complicated but completely manageable with the right personnel and the right technology to assist in becoming compliant. “So, do yourself a favor – carefully vet new technologies with your compliance counsel. While certain parts of the Rule lend themselves to technological solutions, other parts may require some good old fashioned subjective thinking. Be sure you know which parts are which, and you’ll keep the regulatory wildfires to a minimum.” — Michael Benoit, Hudson Cook LLP Jason Blair is the president of Dealerspan LLC. He can be contacted at 16 866.618.8235, or by e-mail at jblair@autosuccessonline.com. www.autosuccessonline.com
  11. 11. STS D.J.Harringtonsales&trainingsolution CONVERSATION WITH ERIN Conversations same radio station, “WII-FM” —What’s In with children can It For Me! Let your team members know be fun, but challenging — especially if what needs to be addressed so that the you are trying to give guidance. Earlier whole company gets better together. this month, I had a special conversation with my daughter, Erin, a 26-year-old Last week I heard Erin say, “I wish things college graduate. Erin is working as an were better,” etc. What she was really outside sales representative for a damage saying was, “I wish things were easier restoration company in metro Atlanta and I wish you were better.” Make a area. Her compensation is affected commitment to get better. In other words, by the customer service that others in if you were going to change the world, her company give to their customers. would you start with everyone else, or with Something had happened recently with a yourself first? relatively new customer who she had been working on for several months. Most people who know me know that my daughter means so much to me. I “Erin,” I said, “The person that is let her know it everyday. I know that responsible for your success in your job the parents who are reading this column is yourself. The person who has created love your children, as well. Erin creates your income, your debt, your relationships, her own experiences and creates them your health, your fitness level, your whenever she wants. You also create new weight, your attitudes and your behavior is experiences whenever you want. None you. That’s right! Look at yourself in the of us need to blame outside factors for mirror.” By the raised brow and obvious our inside unhappiness. I want her to take irritation on her face, I could tell she didn’t responsibility for her happiness and for her agree. She was thinking that I should be unhappiness, her successes (and she has a more sympathetic and agree that each of lot of them) and for her failures, as well. the technicians involved in this incident When you stop blaming others for their should have been drawn and quartered for failures, you can use that misappropriated not doing a job with her new client. What energy and redirect its focus by creating a I was telling Erin was that the person she better situation. sees is the person to blame so far for what’s happening. Blaming others only ties up valuable energy. Successful people take 100 percent If you have a situation that’s made you of responsibility for the thoughts they upset, please, stop complaining about think, the pictures they think about and the it. Everyone has a situation, and yours actions they take. probably isn’t any different from the next person’s. Last week I heard a fellow I’m just an old fashioned dad who wants speaker say, “Don’t belly ache over what his daughter to be better — not bitter you tolerate.” — and have all the things in life for herself and some day for her own family. By then What is it that you’re complaining about? maybe she’ll be passing along similar Examine it — really examine it. More advice to her son or daughter and will than likely it is something that you can do remember that day when she learned that something about. Have an office meeting she is responsible for her success — not with everyone involved, for instance, anyone else. to hammer out the problem and find a solution. Change is hard for a lot of people, but if everyone is changing at the same D.J. Harrington is an author, journalist, seminar leader, international trainer time, then it’s not as hard. and marketing consultant. He can be contacted at 866.855.5781, or by e-mail 17 I reminded Erin that everyone listens to the at djharrington@autosuccesonline.com. the #1 sales-improvement magazine for the automotive professional
  12. 12. STS MarkProctorsales&trainingsolution POLICY AND PROCEDURE FOR PROFIT There are many shopping,” “I need to sell a car,” “help me” a lack of follow-up. The vast majority of ways to bring a or “we have had the unit forever.” Fire him salespeople do not follow-up; therefore, it current or future prospect into a dealership. or train him, but do it now. He is costing you is up to the dealership to require it. Look at How we treat that opportunity is what a fortune. And it is less expensive to develop your cost to bring a single prospect in the matters most. Let’s take a look at common and train salespeople for life than it is to front door, then ask yourself why you would dealership problems, and recommend replace them. not do everything possible to maximize each practical solutions that will increase the and every opportunity to do business. bottom line without increasing expenses. You cannot have customers for life without employees for life. Salespeople must learn Follow the Steps ... No Shortcuts Dealerships sell X amount of units primarily how to slow a prospect down and create a Without a proper product presentation and a based on four things: inventory, advertising, “different buying experience” if they want demo drive, all you have to sell is price, and personnel and market conditions. The only to hold gross. They must earn the “right” to you cannot win. Statistics confirm that 97 question is how much profit you make and make the sale and a fair profit. percent of our customers will not buy a car how much you keep? without driving it. Pretty simple stuff, yet Policy and Procedure Basics we continue to negotiate and give shopping Most dealerships allow salespeople access If anyone is allowed to break policy and packages to prospects who have not received to one or more of the following: invoices, procedure without consequences, all other a proper demo or product presentation. used car costs, appraisals, F&I rate sheets, dealership policies will never be taken Eight out of 10 buying customers list the factory-to-dealer and consumer incentives, seriously and your ability to manage is product presentation as a determining factor credit bureaus, computers or factor charts to reduced. The fear of losing or alienating one in their decision. Any dealer in town will quote payments. And you wonder why your customer often results in the loss of many. take your customer, often for $100 less. The profit is where it is; you should be grateful steps establish a structure that will allow for what you do retain. Most of your profit is 100 Percent Management Turn a salesperson to slow a prospect down, given away before your customer enters the A change of face is a powerful tool. A Establish a relationship, qualify wants and showroom to negotiate a transaction. Nine sales manager must take a turn on every needs, present and demonstrate the product times out of 10 you end up “backing into a customer, sold or not (though it is equally and ask for the sale. Eliminate inventory car deal” to get to a certain payment, trade important in both cases). A courtesy price lists. If your inventory is so large or difference or allowance. Sound familiar? “T.O.” and simple question (“Thank you your sales department is unwilling or not A salesperson normally takes the course of for considering our dealership. Have you required to walk and learn the inventory least resistance. It is easier to work the desk received all the information you need daily and you feel it is necessary to provide than the customer. to make a decision?”) will produce an a list, do not include prices. You are enabling additional 10 to 15 percent in sales. weak salespeople. Why should a salesperson Remember what it is like to be under the 100 Percent Follow-Up … walk the lot or check with his manager to gun at 4 p.m., trying to put something on No Exceptions see if a new or used specific or similar unit the books? Many salespeople and managers Getting a name, address and phone number is available or can be acquired — much less work every day and deal under the same is required on all customers. It is frustrating touch the desk to get today’s selling price, pressure. our prospects don’t follow-up better on our market value or a turn if needed — when it’s Scared money can’t win. First, if a sales people, so we must do a better job easier for him to rely on his two-week-old salesperson has not done his job, he hasn’t following up on sold and unsold customers. incomplete inventory list? earned the right to ask for a fair, just and Nine out of 10 consumers who purchased Incoming Sales Calls equitable profit. Say you have a salesperson vehicles in the last 12 months cannot tell These must be handled by managers who who’s in the manager’s office 5 or 10 you the name of the salesperson who sold have been trained to obtain name and phone minutes after meeting a customer needing them their vehicle. Closing ratios as well numbers and set appointments or use a the “absolute best,” “one shot,” saying “he’s as customer retention can be devastated by virtual BDC/Phone Center. About 92 percent of potential customers who are given a price over the phone call another dealer who “Salespeople must probably assures the prospect “I can beat learn how to slow that deal.” There are only two things you a prospect down can accomplish by phone. Obtain a name and create a and phone number, and set an appointment. ‘different buying It is time to get back to basics and always experience’ if inspect what you expect. they want to hold gross.” Mark Proctor is the president of Preferred Dealer Services, Inc. He can be 18 contacted at 866.922.3541, or by e-mail at mproctor@autosuccessonline.com. www.autosuccessonline.com
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