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Courtesy Chevrolet 4 Keys to Success


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Courtesy Chevrolet 4 Keys to Success

Courtesy Chevrolet 4 Keys to Success

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  • 1. A SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIAL ISSUE NADA SPECIA .biz January 2005 756 South 1st Street PRSRT STD Suite 202 US POSTAGE Louisville, KY 40202 PAID LOUISVILLE KY PERMIT NO 879 a division of Systems Marketing, Inc.
  • 2. • BZ Results 3124 BZ Results is a digital marketing & training company that has a great new system that helps dealers sell & service more vehicles proÞtably. TOP 10 BZ’s clients include United Auto Group, Group 1, Herb Chambers, Red McCombs, Sheehy, Paul Miller, Larry Miller, Courtesy Chevrolet, BEST OF THE BEST Tasca and others. BZ dealers are selling 100-700 incremental units a month from this revolutionary new system. To get a free 180 second NADA tour of this new system visit: 2005 • J&L Marketing 4731 Established in 1991, J&L Marketing is without equal when comparing automotive direct marketing companies. Their philosophy is simple - there are only three ways to grow your dealership: 1) Increase your number of customers, 2) Increase your average gross per deal and 3) Increase the frequency of repurchase – get more residual value out of each customer. With a customer base of over 6,000 dealers and managers nationwide their ground-breaking J&L Marketing Growth Strategy™ is producing staggering results and has eliminated the number one challenge for most dealerships - trafÞc. • Dealix 5415 In 2005, Dealix is expanding their quality and service initiatives, continuing to help dealers sell more cars, more efÞciently. Their combined efforts with The Cobalt Group will bring an even more dynamic product to their customers to increase sales and help improve dealership efÞciencies. Dealix has been rated the number one lead provider in studies by J.D. Power and the Dotcominsider. Their goal is to continue to win over customers with high quality leads and superior service. The Dealix Quality Team enhanced their lead scrubbing and call veriÞcation technologies to ensure customers receive leads only from the most serious car buyers. Dealix is committed to provide even better one-on-one service and has expanded it’s Lead Acquisition Network, adding hundreds more of the best auto sites on the web. • Autobase 4819 Autobase, Inc. has provided the automotive retail market with premier customer relationship management (CRM) solutions since 1988. Autobase Sales Center™, the ßagship of the Autobase suite, is now in its sixth generation of development, boasting 17 years of successful implementation in dealerships of every demographic. Over 15,000 auto professionals go to work every day and use Sales Center™ to sell more cars. Newly-released and already manufacturer-endorsed for it’s innovative approach to business development, the Autobase Loyalty Center™ is the most recent addition to their suite of solutions. Their rich history, strong reputation, comprehensive industry knowledge, and pioneering work in feature-rich CRM and BDC technology have long impacted the bottom line for proactive dealers nationwide. • 4430 is the premier, on-line solution for service department appointment scheduling, allowing dealership customers to make a conÞrmed service appointment 24 hours a day, seven days a week. BeneÞts to the dealership include: replacing telephone-based scheduling with Internet technology that enhances the effectiveness and customer satisfaction of the dealership, reduces in-bound telephone calls and drives trafÞc to the dealer’s website. Customers prefer the ease and convenience of the Internet to do their banking, shopping, make travel arrangements, etc. and now with, they can schedule their service appointments online, no more waiting on hold to make an appointment. • The Joe Verde Group 931 JOE VERDE • Your Training Partner Since 1985, the Joe Verde Group has been helping dealerships improve their sales and gross by providing the best sales and sales management training in the automobile business. Joe Verde’s up-to-date sales training helps dealerships implement effective sales training that works to build a solid sales team and long term, satisÞed customer base. Joe’s management training addresses today’s challenges and tomorrow’s needs by helping dealers build top performing management teams. The bottom line… the Joe Verde Group provides a dealership with clear-cut solutions that boost their sales, proÞts and customer satisfaction. • ProResponse 3058 ProResponse, Inc. CRM with proven results, represents nearly 300 dealers nationwide. Their services are geared toward total showroom control with ProScan® Touch Screen driver’s license reader, prospect tracking (phone, ßoor and Internet), and sold customer follow-up for Þve years. ProResponse is a service company assisting dealers each day with database management, data cleansing, data mining, and effective target marketing. They are e-mail enabled and FTC compliant, running prospects and customers against the “Do Not Call” list daily. They provide on-site training and monthly service visits “In Your Dealership”. Their programs are also written in Spanish and French. They seamlessly integrate with Who’s Calling, Call Source, Call Bright, Call Command, EPencil and many others. • American Auto Exchange 5755 Founded in 2001, American Auto Exchange is revolutionizing the way dealers conduct business by Þnally assembling all the pieces necessary to running a streamlined, high tech used car operation. Through the use of the aaXchange tools, dealers are dramatically improving the way they operate their used car departments. American Auto Exchange works with thousands of dealerships across the United States who have chosen to utilize the American Auto Exchange Real Time Vehicle Trading Network, the aaXchange proprietary Vehicle Management System (VMS) and a new integrated intelligent vehicle launch product with Ebay. • Ultimate Warranty Corp. 1411 Ultimate Warranty Corp. provides leading-edge service contracts and ancillary F&I products. More than 7,000 dealers have recognized the advantages and have beneÞted from selling Ultimate Warranty Corp. products. Ultimate’s package has proven that it can propel its client base to the front of the pack in terms of quality, proÞtability, compliance, customer retention, and CSI. Stop by the booth, and Ultimate Warranty Corp.can show you how they are making a great thing even better in 2005. Ultimate Warranty Corp. has some great new things to offer to its clients at no additional cost. Ultimate Warranty can truly show you how to do more with less. • The WolÞngton Group 527 The WolÞngton Group produces high performance sales events on behalf of new car dealerships across the country, with no outsourcing or subcontractors. The Þrm maintains long term relationships with dealerships, providing marketing territories and strategies that help The WolÞngton Group dealers outperform their markets. A WolÞngton Group produced event brings an atmosphere of fun and excitement to the dealership, creating a great buying experience for the consumer and a positive selling experience for the dealer’s sales team. Harry WolÞngton, President, provides his insight and experience to auto dealerships through his six sales teams. “Being a small company, we are more focused on each individual event. Our dealers get an attention to detail from our staff paralleled by none.” It’s this philosophy that has earned The WolÞngton Group a spot in this year’s “Best of the Best”
  • 3. NADA 2005 TOP 10 BEST OF THE BEST S N A E L R O W E N E ✴ Ernest N. Morial Convention Center S BC D E F G H N W
  • 4. 58 Cars Sold Last Month with Dealix Leads Magnussen’s Dodge Chrysler Jeep Magnussen’s Dodge Chrysler Jeep Quality Leads | Superior Service | Dealer Control Features “That’s why I get my leads from Dealix. When it comes to selling to Internet customers, my team goes beyond our immediate market area. In fact, we pull customers in from as far as San Francisco. With Dealix, we can get leads from a wide mile radius, or we can target specific Zip codes. The choice is ours. No other level of control and this many sales.” Steve Jackson, Internet Fleet Manager, Magnussen’s Dodge Chrysler, Jeep of Auburn, CA TOP 10 BEST OF THE BEST NADA 2005 Dealer Control Features Dealix AutoUSA Autobytel Territory ControlSM Standard N/S N/S Choose multiple Zip Codes for each franchise. Territory ControlSM Target your ideal sales territory – choose any Standard N/S N/S mile radius. Inventory-Driven Lead ControlSM Standard N/S N/S Choose leads for the models you want to sell. N/S = Not Standard July 2004 Sales Start selling more cars today! Call Dealix now. (866) 253-5125 or visit us online at
  • 5. TOP 10 Secrets of BEST OF THE BEST NADA 2005 Dealership Overachievers – No One Else Will Tell You: • What the best “response generating” ads all have in common. • The three most important goals you will ever set for your dealership. • How to condition your current customers to buy from you more often. • How to create advertising that attracts quality customers who negotiate less. • How to out-market your competition and dominate your market. • What the ultimate goal of marketing should be today. • How to create advertising that actually increases your closing percentage. Special Free Offer: Call 866.856.6782 now and ask for Sarah to receive your free copy of the J&L Marketing Ultimate Growth Strategy, featuring an actual case study of Johnson City Honda. You’ll discover the exact growth strategy and marketing plan created by J&L Marketing and used by Johnson City Honda and read how, in just their first four months, they increased sales by 65 units per month and their gross averages by over $1,300 per vehicle! Visit us at NADA in New Orleans at Booth 4731. 866.856.6782 move the crowd. crush the competition. count the money.
  • 6. TOP 10 BEST OF THE BEST NADA 2005
  • 7. MEET YOUR NEW E-PLOYEE... WORKS 24/7 WITHOUT A SICK DAY OR VACATION! TIMEHIGHWAY.COM replaces telephone-based scheduling with internet technology that enhances the effectiveness and customer satisfaction of your dealership. By scheduling appointments directly through your web site, your customers make conÞrmed appointments instantly without call-backs. puts your service department’s schedule on your web site, making it possible to schedule appointments 24 hours a day, 7 days a week, from anywhere. INCREASED CUSTOMER SATISFACTION WITH WEB-BASED APPOINTMENT SCHEDULING IS THE FUTURE! For More Information Contact Karen Dillon at (800) 901-3054 or 5633 Strand Blvd TOP 10 Suite 302 BEST OF THE BEST Naples, Florida NADA (800) 901-3054 2005
  • 8. Increase Sales by ✓ FREE Follow-up every phone call, ßoor up, be-back. Stay in contact with ALL ups! TOP 10 BEST OF THE BEST ✓ FREE Drive website trafÞc to your store and NADA track Internet prospects with Total E-mail Follow-up! 2005 ✓ FREE Direct Marketing. ✓ FREE DAILY Management Reports with REAL data you can use to manage your people, not your systems. ✓ FREE FTC “Do Not Call” daily Synchronization and Alerts to help you avoid receiving an $11,000 Fine! ✓ Follow-up every sold/leased customer for 5 years. Increase repeat sales, CSI, gain referrals and increase service trafÞc. Easy to own - On-Site Training - No huge up-front charges! Limited Exclusivity. Call us before your competition does! After seven years with ProResponse I can still say it is Going to the the best investment we’ve ever made. -Larry Jones, Jones Junction The Koons Automotive Group sold over 44,000 vehicles last year with the help of ProResponse. NADA Convention? -Alex Hafer General Manager Visit us at Booth 3058 ProResponse is the only system I have ever used where the sales people are actually motivated to use it. Our new car sales are up 21% in one year. -Jeffrey Abel President, Miller Toyota Our closing ratio has improved 38% and our “be-backs” have nearly doubled. When we first implemented ProResponse we averaged 160 cars a RORESPONSE 866.596.6889 month, an average month is now 350! -Kevin Cohan General Manager, Jim Coleman Cadillac Infiniti Toyota Available in Spanish
  • 9. I N S I D E 10 Chess Champion Has the Drive to Succeed Chula Schlesinger 12 Are You an IMPACT Player Zig Ziglar 13 10 Steps to CRM Success Bryan Anderson 14 On Becoming a Servant Leader Adam DeGraide 16 Almost $600,000 to the Bottom Line Bruce Thompson 18 Silence is Golden Anthony Hall 19 How to Identify and Sell to the Entrepreneur Personality Carol Martin 20 Discover How to Eliminate Your Dealership’s ‘TrafÞc in The Door’ Challenges Scott Joseph 22 2005 eDealers of the Year Patrick Luck 26 Management Driven Dealerships Joe Verde 28 Courtesy Chevrolet’s Four Keys to Selling 380 Additional Units Robert Revere 30 The Importance and BeneÞts of a Credit Application Tony Dupaquier 31 Across the Board Increase in Service and Parts Revenue Joseph Schmoke 32 Huge Dividends in Happy, Loyal Customers Karen Dillon 34 Sophisticated e-Newsletters Create Interest, Detect and Qualify Buy Signals David A. Fish 35 The Value of a Professional T.O. Jim Adams 36 Building Your Business Mark Tewart 37 Human Nature: Taking the Path of Least Resistance Kirk Manzo 38 I Think I’ll Have an Idea Michael York Psalms 23: 1 - 6 The Lord is my shepherd, I shall not want; he makes me Choose Freedom • Support Our Troops lie down in green pastures. He leads me beside still waters; he restores my soul. He leads me in paths of righteousness for his name’s sake. Even though I walk through the valley of the shadow of death, I fear no evil; for thou art with me; 756 South 1st Street, Suite 202 Louisville, Kentucky 40202 thy rod and thy staff, they comfort me. ! Toll Free: 877.818.6620 " Facsimile: 502.588.3170 Thou preparest a table before me in the presence of my Patrick Luck, Editor & Publisher Courtney Hill enemies; • Sales-improvement Strategist thou anointest my head with oil, my cup overflows. • Surely goodness and mercy shall follow me all the days of my Susan Goodman, Vice President life; • Thomas Williams, Creative Director and I shall dwell in the house of the Lord for ever. • Success Driven Solutions AutoSuccess Magazine is published monthly at 756 South First Street, Suite 202, Louisville, Kentucky, 40202; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or$75peryear.AutoSuccesswelcomesunsolicitededitorialsandgraphics(notresponsiblefortheirreturn).Allsubmittededitorialsandgraphicsaresubjecttoeditingforgrammar,content,andpagelength.AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those ofAutoSuccess and by no means reflect any guarantees.Always confer with legal counsel before implementing changes in procedures. © All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 756 South First Street, Suite 202, Louisville, Kentucky 40202.
  • 10. sf special feature ChulaSchlesinger Chess Champion Has the Drive to Succeed Thousands of young difference to ensure this type of violence men and women who stops in America in his lifetime. will be graduating high school or Orrin left behind his successful car college this spring dealership, which he had owned for 10 are looking forward years. He focused every personal asset, and to the ultimate graduation present. Mom all of his savings to launch his grassroots and Dad have promised a trip to the local crime prevention program, Be Someone dealership to pick out their first automobile Inc. He targets crime where it begins, in upon graduation. the inner cities of our country disguised as poverty, sickness and hopelessness. There are, however, thousands more young adults who will never realize that American Orrin has developed several mentoring dream. Their lives are starkly different from programs that teach children life mastery mainstream America. Many at-risk children skills, using chess as a metaphor. Using living in the inner cities of our country his personal resources, dedication and CNN, Orrin and his life changing programs have no hope of ever finishing school, passion for his dream, he has touched the have been featured on Fox News, CNN, or attending college based on the current lives of more than 15,000 children and their TBS Superstation, as well as having been deplorable circumstances in which they families. His programs have been taught in highlighted with a full-page article in USA find themselves. more than 30 schools in five states. Today. He has been interviewed and his programs featured in countless media and One man has vowed to change this grim Dramatic changes occur in the lives of news outlets. prediction by dedicating his life to the these children when someone who is as fulfillment of his personal dream. Orrin powerful a mentor as Orrin Hudson appears Although the recipient of numerous Hudson, a leading nationally recognized in their lives. They immediately respond to community service and leadership awards, chess champion has turned his dream of his charismatic personality and energetic Orrin remains humble and thankful for mentoring children through the game of teaching style. Upon completion of Orrin’s the opportunity to serve his community. chess into a life-long pursuit. classes, reported improvements include His personal reward is in the achievement extended concentration time, improved of the children throughout the country In 2001, Orrin was shocked, as was the rest grades, more positive social skills and currently enrolled in his programs. He has of the country, to hear of the incident in concern for others. Students exhibit the recently received the 2004 Martin Luther Queens, New York in which a young black ability to think more clearly and apply King Jr. Community Service Award, 2004 youth terrorized the patrons of Wendy’s problem solving skills. They develop a TBS Superstation Pathfinders Award Restaurant. He ultimately herded several clearer understanding of consequences and for Education, and 2004 Atlanta Braves of them into the cooler and shot them in the ability to recognize patterns to increase Leadership Award, among others. As a the head for a paltry sum of $2,000. As a forward thinking. testament to his selfless achievements, he former U.S. Air Force and Alabama State is currently the subject of an upcoming Trooper veteran, Orrin vowed to make a Dubbed the “Piped Piper of Positivity” by screenplay expected to be released next year. 10
  • 11. continued What does Orrin Hudson have? Heart. His that results. If they can’t find a way to win and share with your employees and their passion for learning, and burning concern at life, we all lose,” Orrin Hudson said. families the powerful success mastery for the students he mentors, keeps him skills that he has taught to thousands. He is working long and hard even when his If Orrin and Be Someone, Inc can reach a dynamic personal coach. personal resources are depleted. He needs them before its too late ... we are all our support. winners. To learn more about Be Someone Inc. please visit the Web site at As an author, trainer, coach, educator and “It is not just about the game of chess. It is To donate, sponsor children or sponsor a motivational speaker, Orrin has amassed about the game of life, and learning how to school in your hometown, please contact some hefty accolades. win at every level.” Orrin Hudson Orrin. Be Someone Inc. is a non-profit organization. “I salute you on your quest to develop To thank you for your consideration and Orrin Hudson can be contacted yourself in order to make a difference in help with his programs, Orrin has agreed at 800.901.3057, or by e-mail at others’ lives. We are kindred souls in that I, to appear at your dealership for no charge too, have always had an insatiable hunger for knowledge and excellence. Live with Passion!” Anthony Robbins, No. 1 best DEALERS MUST BE selling author, motivational speaker “I am extremely impressed with your organization, especially since our youth are desperately in need of leadership and guidance. I admire your zeal, and your enthusiasm is contagious.” Brian Tracy No. 1 best selling author, motivational speaker ON TELEVISION! “Orrin C. Hudson is destined to inspire See why over 100 dealers nationwide have our youth in a positive and extraordinary INCREASED SALES MORE THAN 30% IN way. I like his tough-minded optimism and charisma.” Mark Victor Hansen No. 1 LESS THAN 90 DAYS WITH TELEVISION! best selling author, motivational speaker We produce nearly 4,000 commercials “I enthusiastically endorse the work of a year from our studios. We give you Orrin C. Hudson, founder and president of Be Someone Inc. and all that he does unlimited, high quality television campaigns for our children.” Jane Fonda, actress, and promotions FREE. With computerized director media buying technology, we buy television as much as 30%-40% more effectively than any “Orrin, you amazed me with your ability to get results!” Jack Canfield, author, media buyer in the nation and give you motivational speaker UNLIMITED TV CAMPAIGNS You can partner with Orrin and Be AND PROMOTIONS! Someone Inc. Through your tax-deductible Call for a FREE demo tape and information. donation you can sponsor a child or several children today by offering scholarships to the program. You will positively change the life of a child forever. By partnering Larry John Wright, Inc. Automotive Advertising with Be Someone Inc., you will be fighting crime, illiteracy and hopelessness for thousands of American children. “America’s Premier Automotive Advertising Agency” “The future of our country and our youth 1-800-821-5068 depends on what we do today. If we ignore this generation and allow them to continue to travel their current path through inner city poverty and despair, we are also responsible for the crime and desperation january 2005 11
  • 12. sts ms ls fis lr ZigZiglar sales and training solution Are You an IMPACT Player How can we become P = Passion modeling and our passion and our actions. IMPACT players Passion is doing what makes us feel the We must enjoy our journey, not just the in our companies, most alive!!! We must develop a passion arrival. Along the way we must remind organizations, for what we do. This passion will get us out ourselves to have fun, loosen up and laugh c h u r c h e s , of bed in the morning when we don’t feel out loud. We shouldn’t take ourselves too communities, and like it. Passion sets fire to discouragement. seriously. Remember: Angels fly because families? Here are a few ideas: Passion creates excitement in those around they take themselves lightly. us. If you light yourself with passion, I = Intensity people will come from miles around to T = Trust We must be focused on our goals and watch you burn. We must learn to trust ourselves. Too often dedicated to put forth the effort necessary we are waiting for all the lights to turn to achieve those goals. Intensity doesn’t A = Action green before we leave home. There is an mean being so serious you aren’t enjoying By turning passion into action, we will adage that states: trust your gut. We should the process. It does mean being serious surely make an impact! Oftentimes, this learn to trust our feelings. enough to overcome obstacles that stand in is the biggest challenge we face - putting the way. Remember: you are either intense our passion into action. There are times By becoming an IMPACT player, all those … or you are past tense! when we don’t feel like being impact around you will benefit. Go out there today players. Our passion is at a low level, and and knock’ em alive! M = Model the correct behavior the feelings have gone. The key is this: We Yogi Berra once said you could observe must “act” our way into feeling and not a lot by watching. We should observe wait to “feel” our way into acting. Zig Ziglar is the chairman of the board of positive role models and “steal” the Ziglar Training Systems in Dallas, TX. He effective aspects of them. We should then C = Comedy relief can be contacted at 866.873.0026, or by model that behavior on a consistent basis. We must enjoy our intensity and our e-mail at 12
  • 13. sts ms ls fis lr BryanAnderson sales and training solution 10 Steps to CRM Success A successful CRM 4. Build value into every customer record through the cracks any longer. implementation will with processes produce a tremendous You want your CRM feature-rich, and 7. Execute a strategic plan of business return on investment. make sure those features work within every day. Let’s examine 10 the framework of the sales process. Your Aim at nothing and you’ll be sure to hit it fundamental steps to sales people will be able to take an up every time. CRM provides each sales person achieving CRM success. and move through the sales process with with a daily business plan based on clear, ease. Real-time Web-based services concise rules for every type of customer 1. Present to your staff the beneÞts of (such as reverse lookup technology and (appointments, leads, prospects, owners, using CRM compliance with the Do Not Call Registry) renewals, etc.). It’s an automated list of Sales people will save time because will enhance customer records. In addition calls to be made plus letters and e-mails to worksheets, appraisals, credit apps and add to basic contact info, the customer record be sent. CRM ties into your phone system ons are automatically and professionally will show all prospect history, all sales to measure outbound call compliance and laser-printed. They will be able to move history (including gross profit), all service to report on the calls your sales associates through the sales process effectively and history, all after-sale history, a complete log. All of this data is analyzed in a report with greater ease. It provides a simple, customer profile, all credit information, format, allowing you to interactively view but powerful, first-pencil tool, credit complaint management (keep track of their each customer record. bureau processing, inventory look-up, and concerns), all e-mail history and the DMS appraisal management with Blackbook customer number (to create real-time data 8. Clearly identify customer types and sub- lookup. Sales people will enjoy automatic synchronization). Finally, the process will types within your CRM follow up, as if each had his or her own conclude with a complete analysis of all Unsold customers cannot be grouped personal assistant who printed daily letters, data through interactive reporting. together. A customer who was unable to sent daily e-mails, and strategically built secure financing is different than the unsold a plan of business 365 days a year. It will 5. Seek the immediate beneÞts of a real- customer who told his or her sales person offer real-time integration with your DMS, time environment that he or she bought elsewhere. A be-back Internet leads and phone leads. You’ll Reap the benefits of a real-time environment that is ready to buy in days is different than get total buy-in of your sales staff. When in which people, process and data are a prospect that is ready to buy in months. sales people properly use CRM as a tool to managed. At any given time, your managers With a more detailed approach, you will sell success, they all sell more cars, which will are able to see which customers (and sales more cars. increase their income. associates) are in the dealership. At a glance they are able to see today’s appointments, 9. Appreciate and acknowledge personal 2. Attack your database on a daily basis ups, prospecting/owner calls, tomorrow’s lead production (PLP) Managers can easily create targeted appointments and sold units, both for today Your CRM can clearly categorize prospects advertising campaigns. They now engage and the month. Managers are able to tell found through a sales person’s personal in a daily review of the floor traffic as who is responsible for the numbers (who is networking. It tracks referrals received well as those deals that can be saved. doing their job and who isn’t). First-pencil during calls to sold customers. Teaching Sales people log in every day to find a figures are seen at the tower the moment your sales force to produce these prospects planner full of opportunities from today’s they are created. On any deal not closed, will increase revenue in all departments. appointments to prospecting for referrals a manager is prompted to follow up with Reward your sales staff for their own and closing renewal business. Produce a call to save the deal. Now put this kind personal lead production. results every day. of power into the hands of your BDC, and you’ll see your call center, sales team, 10. Create a data collection process to 3. Prepare and service team work together in ways capture 100 percent of customer information Your CRM provider is able to efficiently you never could outside of a real-time Successful CRM has less to do with cutting- pull every DMS record possible, for both environment. edge features and more to do with how sales and service. If a customer’s name and those features are designed to fit your sales number has been recorded somewhere at 6. Implement a speciÞc process for pipeline process. Attention to process is the main some point, that customer will end up in management component a successful CRM incorporates your CRM. These records are scrubbed Every customer record has value. When and the main reason why many solutions against the National Change of Address sales people reach a barrier with a succeed in dealerships. (NCOA) database to ensure that your data customer a trigger prompts a manager to Bryan Anderson is the founder and is accurate. Then each record is matched step in. When managed in a dynamic and president of Autobase Inc. He can be with a current sales person and a plan for interactive process, dealerships save money contacted at 800.350.9683, or by e-mail at follow-up. in a short amount of time. No one slips january 2005 13
  • 14. sts ms ls fis lr AdamDeGraide leadership solution On Becoming a Servant Leader How do you define servant leader is aiming to go beyond success in servant leadership depends on leadership? Ken success and social significance and how clearly values are defined, ordered and Blanchard, co-author approaches leadership as an act of service lived by the leader. Living out these values of “The One-Minute from the perspective of what we can give and core beliefs is where most leaders and Manager”, “Raving rather than what we can get. Sounds easy, dealerships can get into trouble. You cannot Fans” and now the but leadership for the purpose of serving just talk the talk, you must walk the walk. “The Servant Leader”, defines leadership others will fail if we fall prey to false pride Effective implementation requires turning as “an influence process – any time you are and fear. the traditional hierarchy of a dealership trying to influence the thoughts and actions upside down so that the customers and of others toward goal accomplishment in Close examination of failed leadership the folks on the front line are at the top of either their personal or professional life, efforts usually reveals a self-serving leader the organization with all of the tools and you are engaging in leadership.” It makes who has been drawn by pride into taking too resources needed to do their job, while the sense to measure our success as a leader by much credit, showing off and demanding leaders serve the needs of the employees; our ability to shape what others think, do attention or by fear that compels a person helping them to accomplish the vision and and say as they try and find meaning and to protect him or herself, hide behind a direction of the dealership. their purpose in the world. It can also help title, intimidate others, discourage honest to ask if we are being selfless or selfish. feedback and ultimately become known as Putting it into action The answer to this question compels us to a control freak. In preparing your heart it Once you feel and understand the concepts, search our inner motivations and measure is important to treat others as if they are as are you really willing to change your heart, our actions and habits in light of the goal of important as we are. Why? We treat people your mind and your behavior to become a being a better servant leader. In this article the way that we see them, and if we see better servant leader? Once you step out it are some ideas for preparing our hearts, them as inferior we will treat them that is important to step up and stay the course. bringing clarity to our minds and applying way. When we treat everyone as if he or Change is a given, it will happen. Your and putting into action servant leader she were valuable and worthy of our time, organization will adapt or die, and you as a principles within our dealerships, families respect and attention, what do you think person will either grow or go. By becoming “ and communities. would happen in our relationships? Do unto “other focused,” we can truly begin to lead others as you would have done unto you is the right way and others will want to follow the Golden Rule, and it works. out of faith and hope instead of fear and Prepare your Cleaning out the mind manipulation. It’s been said that if life is all about you, than you is all you’ll ever have. heart, clear Garbage in - garbage out. It’s time for us In order to work at taming an addiction to out your mind to take out the trash, wash out the cans. personal pride it helps to ask some hard When we allow our minds to be filled with questions: and put it into so much junk, we truly need to flush out the garbage and bring in the fresh air of • Do I think of myself more often action. As a balanced thinking. All great leaders have a than I think of others? servant leader, specific leadership point of view and belief • Have I developed a habit of giving? system that defines how they see their role • Can I participate in a group without you can and their relationships with those they seek taking charge? ” to influence. Our belief system is shaped • Can I enjoy the successes of others accomplish by our past experiences, our attitudes and or does everything have to be about anything. feelings, our perceptions, our capacity for me? critical thinking and our education. What • Do I use plain, honest speech, we think is impacted by what we feed our letting “yes” be yes and “no” be no? mind. To make a positive impact on what • Do I do what I ask others to do? Preparing the heart we think, it helps to surround ourselves with Regardless of your title and position in the positive people and positive experiences. Prepare your heart, clear out your mind and dealership, any one can be a leader. It has put it into action. As a servant leader, you nothing to do with your job and everything You are who you hang with, never can accomplish anything. to do with your character and your forget that. As a result, it helps to find a intent. Whether you’re the title clerk, the role model who has the vision to do the receptionist, a sales person, a desk manager right thing and, from an implementation Adam DeGraide is an owner of or the dealer, people in the dealership can standpoint, has the ability to do things He can be contacted at feel it when we have a mission and we’re right. Values are also important because 800.526.9804, or by e-mail at seeking to lead for a higher purpose. The they define what you stand for, and true 14
  • 15. Our consultants will help your dealership achieve: • Industry Leading Gross Profits • Sustainable Sales Process • Maximum, Compliant F&I PVR • Professional Management Systems • Power Negotiation Techniques • Professional Sales Skills • Accountability and Objective Tracking Give Ziegler and his team a call! 800-726-0510 You want warm and fuzzy? We got your warm and fuzzy right here. Ziegler Supersystems • • 800-726-0510 Call today to speak to a Ziegler Representative In-Store Consulting - Management Seminars - Video Sales Training - Support Products
  • 16. sts ms ls fis lr BruceThompson marketing solution Almost $600,000 to the Bottom Line An effective inventory management and inventory wholesale time data from NADA, Kelley Blue Book, management system acquisition and liquidation. Black Book, MMR, CarFax, AutoCheck, coupled with real-time DealerBasics and other services, many times productivity tools, Most of the companies (vendors), who have within the same screen. based on accurate entered the industry of pre-owned vehicle market conditions management, aspire to meet the demand of A trade desk tool is utilized to assist those and real-time pricing, will benefit your those three areas with the ongoing feedback with multiple dealerships. This tool matches organization because it gives the dealership from dealerships. The goal in mind is to surpluses and needs between dealers in management team and the sales management benefit multiple aspects of used vehicle a group that can be managed and traded team the knowledge needed to properly operations and encourage the repetitive by a single group manager. You need evaluate deals scientifically with little or no management processes for every used accountable key people operating the guesswork. vehicle. management system, working with dealer groups to customize backend fulfillment Software systems have been coupled with A significant aspect of used vehicle processes, including title processing and the correct level of training and support so operations involves customer appraisals and transport notifications, to make the trade that these new productivity tools are simple trades. Trade-ins account for approximately process efficient. to use, easy to implement and based on real- 60 percent of the pre-owned automobiles time data in an ever-changing market. retailed by a dealership. There is also a mechanism for dealers to send alerts out to other dealers for a vehicle they Management systems for auto parts are a When the dealership knows at the time of are appraising or have in inventory with a standard business practice at dealerships. the vehicle appraisal that this model tends requested buy-now price. Dealers receiving It make sense to manage millions of dollars to retail for a strong profit, or that another these alerts can counter with a different price in pre-owned vehicle inventory as well. dealership within his group could use that for the vehicle or request to purchase the Wouldn’t you agree there is a need? vehicle, the dealer can offer the potential vehicle at the buy-now price. This is ideal customer a premium for their trade-in and for dealers to shop potential or recent trades There are sophisticated systems for managing subsequently make another car sale – at a to a network of dealers. pre-owned inventory. All systems have good profit. similar goals: eliminate wholesale loss and Some systems help to compile the unproductive inventory, achieve consistent Use of these systems and processes can dealership ideal inventory model and gives under-30-day turns, real-time inventory improve a dealership’s ratio from trading ideal and actual inventory calculations, management control at the dealership level, for two out of 10 vehicles to almost five recommendations, aging reports, retail vs. maintain proper inventory mix, provide out of 10. For an average sized dealership, wholesale reports and a quick-glance at a instantaneous buy/sell recommendations, this could mean almost 30 additional new or dealership’s sales history with all makes and provide more scientific appraisal tools with used car sales in a month, or approximately models. This makes the selection process real market values and increased trade $45,000 in additional front and back-end for trades and the appraisal process more of opportunities. gross profit. a predictable, accountable process. The biggest challenge for the used car Vehicle inventory management systems will There are tools that provide a trading network manger can be adopting and embracing help the dealer and the used car manager that matches inventory needs between change. Robert Kennedy said, “Progress is determine individual marketing strategies. dealers, thus creating a real-time channel good but change is its motivator and change Some systems provide consistent inventory for dealers to shop vehicles over the network has enemies.” The improvements of a used recommendations for each vehicle being while a trade is being evaluated. This can vehicle management system will increase evaluated, as well as data that will help replace the system whereby the used car profits in all departments. make better decisions for each car deal. manager calls other used car managers, one The consistent use of these tools will guide at a time, to see if they would purchase the A dealership that instituted one of these managers to stock what will sell best at that vehicle, call wholesalers or purchase the systems experienced the following. particular dealership. Consistent compliance trade unit at a conservative amount and Before implementation, retail pre-owned with the inventory recommendations will later take the vehicle to an auction. Used car vehicle volume was 97, after 116. Before result in increases of gross profit and an managers are able to identify and purchase implementation, the average retail pre- improvement in turn time of about 15 vehicles they know will retail well before a owned front end was $953, after $1,220. percent. vehicle ages, therefore reducing wholesale Before implementation, the retail pre-owned losses. turn time was 25 days, after 21.5. This These systems provide daily inventory translated into an average increase in front- management tools, such as book-out sheets, end profit of more than $49,000 – almost inventory recommendations, past history, $600,000 to the bottom line that was laying vehicle condition history, book values and Bruce Thompson is the chief executive dormant at the dealership. appraisal sheets. The appraisal portion ofÞcer and founder of American Auto provides tools for dealers to track appraisal Exchange. He can be contacted at Three main areas of pre-owned operations performance and trade rates and to work 800.901.3017, or by e-mail at are appraisals and trade-ins, inventory deals with customers. It incorporates real- 16
  • 17. sts ms ls fis lr AnthonyHall sales and training solution Silence is Golden Sales people need test all accessories, i.e., windshield wipers, • How many miles on the current to bring out the true radio, heater, air conditioning, power seats, tires? condition of the all power windows, etc. Record all defects. • Is this car equipped with a spare tire customer’s trade- and a jack? in professionally Next, drive the car with the customer and • Does the car have an environmental because by not doing check for any mechanical problems. Helpful protection package? so, we are leaving gross profit on the table hint: Always ask the customer, “What is • Do you have both sets of keys and due to over-allowing on trade-ins. that noise?” The customer will always the key fobs? respond with an explanation. Make one This can be corrected with a silent trade quick trip around the block. Once back at “And if you had to rate you car, Mr. or evaluation (condition, not value). The the dealership, park the trade-in as close as Ms. customer, on a scale of one to 10, with process starts after a quality demonstration possible to the vehicle they are buying. This 10 being absolutely perfect, showroom drive and commitment to buy if all terms is a great opportunity to show the difference condition, how would you rate your car?” “ are agreeable. between old and new. Most people respond between six and eight. Where would it rate on the scale? Once the commitment to buy has been established, proceed to your trade This whole In consideration of this rating, the buyer has process takes evaluation. Ask the customer if there is three prices in mind for their trade-in: a vehicle they would like to sell to the dealership. “Help me, help you, sell your vehicle to ABC Motors. Show me.” less than 15 to 1. Asking price. 2. Liking price. With clipboard in hand and a trade 20 minutes and 3. Taking price. evaluation form attached, start by having produces huge Through this process, the sales person the customer read the mileage on his or her vehicle. Record it on the form. No words returns. It also has can bring the customer from an asking price, which always equates to a huge from you, but you may want to do the wince and flinch (a very effective tool). Also, ask a positive effect over-allowance based on actual cash value of the trade, all the way to a taking price. on yours and the ” him or her to activate the hood release while The difference can be as much as $1,000 dealership’s CSI they’re in position. Proceed to the front to $2,000. This is the difference between of the vehicle and lift the hood. Record a little or no gross to a much more fair and any oil leaks, over spray, or worn belts (Silence, touch and feel). Proceed to the scores. reasonable gross. It has the ability to take a lot of the confrontation out of negotiation front bumper, touch any scratches, dents, when it is time to present trade figures. cracked headlights, etc., and record them. Then, bring the customer inside and sit him Move to the passenger side, recording tire or her down in the negotiation area. This A customer’s perception can be summed up wear (at this point, you may want to use the is the point where we ask them some key this way: I’m going to pay this much for the “penny-tire wear gauge”). Hold a penny so questions: car I’m buying. I am going to get this much you can slip it between the tread. If you can for my trade-in; all I have got to do is pay see the top of Abe Lincoln’s head, the tire • Do you have the title? the difference. wear is beyond the point where it will pass • Is this a salvaged title? state inspection. Touch every dent, scratch, • Is the title free and clear? It is the sales person’s job to increase the or defect and record them. At this point, wait • Lien holder – pay off? perceived value of the car they are buying. for stories on how each dent happened. • Has the vehicle ever had any (Walk-around, November article) and collision damage? If yes, what type respectfully decrease the perceived value of Move to the back of the car and at this of damage and what was the cost of their trade-in. This is where the gross and point, ask for the keys. Open the trunk, the repairs? your commission are. hatchback, etc. Check for the spare tire jack, • Has the vehicle had any mechanical look for any fluid bottles, i.e., brake fluid, repairs? If yes, what type of repairs? This whole process takes less than 15 to transmission fluid, oil, etc. Pick up each • Was the vehicle purchased new? 20 minutes and produces huge returns. It bottle, hold it close to your ear and shake it, • Has the vehicle ever been smoked also has a positive effect on yours and the looking for half full containers. Move to the in? dealership’s CSI scores. driver’s side, also recording any defects, and • Has it been used for towing? get in and ask your customer to do the same. • What is the date of the last tune-up? Good Selling! Go over the interior thoroughly, checking • What was the date of the last oil for wear and tear, cleanliness, etc. Record change? side glass and windshield condition. • Has the oil been changed every Anthony Hall is a training consultant 4,000 miles? at Ziegler Supersystems. He can be While in the driver’s seat, start the vehicle • Do you have all the required contacted at 800.610.9047, or by e-mail at and turn on every piece of equipment and maintenance history? 18 successful solutions at
  • 18. sts ms ls fis lr CarolMartin sales and training solution How to Identify and Sell to the Entrepreneur Personality If you could connect take the upper hand in situations and have with your prospective an innate ability to convince others to see buyer, would it help things their way. Outwitting, outdoing, or get the sale? Would overpowering them can prove to be a tall you want to know task, as they usually have good answers for how to specifically everything and are not the least bit afraid to sell a customer who is outspoken and speak up. They are win-driven, competitive demanding? What if you could create and and determined to stay in control of pique genuine interest in a shopper who situations. They will probably relate well seems unmotivated? Have you ever made to you if you seem equally enterprising and a sale when a prospect said he or she was self-assured; they respect and appreciate just looking? your competitive drive. This article is the first in a three-part While all entrepreneur personalities share series dealing with how different buyer the same general characteristics and personalities respond to various sales display overall behavioral patterns that are presentations. You’ll learn how to read your similar, it’s important to know that there prospect, detect subtle buying cues, and are different levels of each defining trait. tailor your presentation to trigger a positive Some entrepreneurs have exceedingly response from even your most challenging strong and determined personalities. These customers. entrepreneurs can be charming, but they can also be outwardly bold and impatient. Part 1: How to identify and sell to the If your customer seems highly aggressive Entrepreneur personality and antsy, be prepared to be a little less Part 2: How to identify and sell to the forceful when talking business, so as to Technician personality avoid bumping heads and thus triggering Part 3: Will the Accommodator an unwelcome and, perhaps, deal-breaking, personality ever, in your lifetime, confrontation. Consider these strategies actually buy a car? when working with an entrepreneur: Entrepreneur personalities will usually be • End your sales pitch with a sentence talkative and fast-paced. They’ll also be like: “Of course, it’s up to you whether friendly. True entrepreneurs like to make you want to take advantage of this their own decisions, and they may seem special, because you have to make that to have a very clear idea of which vehicles decision” they do, and do not, want to buy. In terms of dollars and cents, do not hesitate to • Make his or her ideas seem like negotiate with them. your own. For example, point out an obviously positive feature about the Some entrepreneurs might seem a little vehicle, something with which the demanding, but they can also soften those prospect is sure to agree. Once he or demands when they want to, by putting she does, get him or her to elaborate on their excellent social skills to good use. it and then say something like: “You’re They might make some small talk, establish exactly right! I never thought of it that easy rapport, so their own business way.” objectives can be more readily attained. They are typically confident, assertive and Virtually all entrepreneurs can identify with fast-paced individuals. You will probably people who are driven to win. Talk about not find an entrepreneur personality asking your own successes; if you met or exceeded for a lot of help, putting himself/herself your goal last month, work that into the down or waiting long for an answer to a conversation. question. If you notice that your customer seems self-sufficient, confident, talkative, quick and very proactive, you are probably Carol Martin is a senior consultant dealing with an entrepreneur personality. with The Omnia Group. She can be contacted at 800.601.3216, or by e-mail at Entrepreneurs are leaders. They instinctively january 2005 19
  • 19. sts ms ls fis lr marketing solution ScottJoseph Discover How to Eliminate Your Dealership’s ‘TrafÞc in the Door’ Challenges I ask dealers and businesses, is one of the least understood training, which leads to better general managers and most underutilized facets of business customer education. all the time, “What today. • Track all advertisements and is your biggest measure the ROI. Know exactly challenge in selling In these competitive times, the importance what is working and, more cars today?” Almost of marketing is even greater than before. importantly, what is not. always their answer is “traffic.” The more Why? In this wildly unpredictable and I study the challenge of generating more changing marketplace, dealerships must 2. Increase customer retention by: traffic and staying ahead in competitive have an edge or they will not survive • Communicating frequently with times, the more I am convinced it boils – they’ll lose their share of market to their customers. down to one principle – marketing. As competitors. • Provide compelling reasons as to we start 2005, now’s the time for you to why they should come back in tune up your marketing – to make sure The simple fundamentals of marketing – the and buy another vehicle with you’re getting new customers coming in, obvious marketing techniques that make a special offers before they are old customers coming back and customers lot of money – are the most powerful. After announced to the general public. purchasing more often. all, you can do all sorts of advertising, but if you ignore the basics, the money just will 3. Increase closing rate by: Marketing is the main spring of every not come easily. • Increase the sales skills with business. After all, marketing is the science training. of getting people to come in and test drive Does your dealership(s) have an actual • Develop an advertising strategy your cars and have them try your parts and marketing plan? There are only three ways that allows your sales staff the service departments. It persuades them to to grow your business; 1) sell to more opportunity to qualify the wants come back again and again and induces customers, 2) increase your gross average and needs of customers up front. them to purchase at higher grosses when and 3) increase how often customers spend • Offer great deals for the customer. “ they do come back. money with you. What is your growth • Educate customers by giving strategy to accomplish these goals? “reasons why” they should buy from you. Maximize A real marketing growth strategy incorporates advertising, sales and your To increase your gross averages, focus on: the potential corporate identity. Maximize the potential of the marketing plan by working backward • Use direct response ads that attract buyers who negotiate less (it of the – start from sales. For any marketing plan to work the advertising element must align can be done). • Increase the sales skills. marketing with the way your dealership sells cars. The class war between marketing and sales is a • Managers start every deal. • Use direct response ads that plan by primary reason for program failure. There are direct response advertising strategies increase the percentage of people who talk numbers (once again, it can working that can help support your sales team – even be done). make them better. backwards To increase how often customers spend To increase sales, focus on the following: money with you, focus on: ” – start from 1. Increasing your phone traffic, new • Use direct response techniques and used floor traffic, parts and service to create compelling reasons sales. business by: why customers should come in • Aggressively marketing products and buy another vehicle from you and services by using direct right now. response advertising rather than the • Run special events such Marketing is not just advertising. normal institutional advertising. as “clearance and new model It incorporates sales, advertising, your • Run special sales events. introduction” events, and so on. business identity and a host of other • Develop a unique selling • Special offers for sales. ingredients that are less obvious. Without proposition and a corporate • Monthly parts and service marketing, you lose customers. And identity. This identity must be offers to induce frequency. without customers, you lose business. recognizable in all communications and convey your unique selling Scott Joseph is the president of J&L Marketing can make the difference between proposition. Marketing Inc. He can be contacted the life and death of your dealership. Yet, • Increase the perceived value of at 866.429.6846, or by e-mail at marketing, which is the prime mover of the product through better sales 20
  • 20. Service Manager Uncovers $10,500 of Hidden Net Profit per Month... (details on Þle) With the help of KEEPS, we increased our net proÞt after attending the Finding & Keeping Hidden by $104,287 in one year. We did this with the same number of techs and less customer pay RO’s than the previous year. Sam Lilly, Fixed Operations Director Royal Chevrolet, Lynchburg, VA Net ProÞts in Your Service Prior to KEEPS, we barely made $100,000 net Department WORKSHOP proÞt combined with 6 Service Departments. Using the structured processes and highly motivational pay plans of the KEEPS system our combined Discover powerful new tools for getting net proÞt should be over $1,000,000 for 2004. Our customer retention and repeat business has never been better. your Service Department to the next level. Rusty Holcomb, Service Director A small sample of what you will learn: Page Auto Group, Richmond, VA ! Eight speciÞc techniques to increase your I have spent 10+ years working with Þxed operations customer pay effective labor rate by $4.50 trainers out of Birmingham, AL. I learned more in to $6.50 per hour while improving CSI this workshop than in those 10 years combined. Dan Folk, Service Director ! Six techniques to design and build highly Friendly Ford, Monroe, MI proÞtable service menus ! “R.O.A.M.S.” the ultimate technology for achieving the next level of PROFITABILITY Go to our website Call Today for a FREE Service for complete workshop Department Finiancial Analysis Tool content details, dates and locations. 800.901.2863 This one day workshop comes with a 100% money back guarantee
  • 21. fs feature solution PatrickLuck 2005 eDealers of the Year Our January issue is dedicated to honoring the forefront of digital marketing, enabling to establish an Internet marketing strategy. the Top 10 eDealers of 2005. The them to sell 50 to 800 units every single This person typically winds up spending benchmark for consideration for winning month. Successful dealers recognize and a lot of time updating and maintaining a this year’s award is results as measured appreciate the fact that 70 percent to 80 nice-looking, information rich site that is by volume of Internet sales and by how percent of all customers who purchase a largely ineffective and when taken to the well the dealers use the Internet and digital new or used vehicle use the Web at some extreme, these are the dealers who abandon marketing to promote all of their profit point in the buying process. Some dealers the Internet entirely. In contrast, our Top 10 centers: new, used, F&I, service, parts, etc. have even scrapped their conventional dealers tell us about personal involvement Our goal was to seek out the dealers who advertising budget and dropped their cost in selecting the right vendors and defining are the best at using this marketing medium per sale from $300+ to less than $150 an Internet sales strategy and vision with to generate huge increases in profit for their per sale. In recognition of these and other their entire leadership teams. Some of the dealerships. We considered the number of outstanding achievements, we devote this areas dealers consider when establishing rooftops, the size of the dealership or dealer article to recognizing the Top 10 eDealers their strategy and vision are: technology, group, their markets, the brands they carry of 2005 and we will share some of the best marketing, process, people, pricing and and their Internet profits as a percentage practices that have positioned them at the measurement. of their total profits. Here’s the detailed top in their field. criteria used to select the winners: Establishing Your Strategy & Vision by Internet Strategy & Vision: Seeking to Answer 10 Questions: • Profit generated as a result of We found that commitment starts with Technology: How do we separate the hype Internet marketing the dealer principle himself and cascades from what works? What vendors deliver • New and used vehicle sales volume throughout the rest of the organization a clear return on investment and what as a result of Internet marketing in direct proportion to dealer’s level of technology can successfully automate parts • F&I and subprime profits as a result commitment. For the award winners, of the process? of Internet marketing the vision doesn’t start with the General • Online service and parts business Manager or the Internet Director or Marketing: What are some best practices for using the Web and digital marketing to 2005 eDealers of the Winners! Congratulations, eDealer of the Year Award Year attract more customers to the dealership? What is the best use of my advertising budget and how much should be devoted to Dealership Location Website digital marketing? Paragon Honda & Acura New York, NY Dick Hannah New York, NY Process: How can a dealer fine-tune Ralph Schomp Automotive New York, NY his process to ensure that more of his Tasca Automotive Group Providence, RI opportunities are being transformed into Herb Chambers Boston, MA Red McCombs San Antonio, CA profitable sales? Earnhardt Auto Centers Tempe, AZ Courtesy Chevrolet Phoenix, AZ People: What are the secrets to lowering Dave Smith Motors Kellogg, ID employee turnover? What are some best Sheehy Virginia/DC practices for recruiting, hiring and training the right team? We learned a lot about what determines another member of the leadership team; a dealer’s success with using the Web to for the winners, commitment to an Internet Pricing: When, where and how do the generate increased sales and service profits. strategy and vision begins with the most successful dealers address pricing We found some commonalities among dealer himself. A common mistake some on the Internet? What will work for my the winners and some truly effective best dealerships make is to dedicate or hire a store and what are some best practices for practices that have propelled the winners to technology person and leave it to him or her maintaining a fair profit? 22
  • 22. Measurement: What are the key metrics for what customers look for 90 percent of the measuring performance success? time Great Web sites: Marketing: What makes them great? Appearance is How can you get the greatest return on subjective, and when it comes to design your advertising dollar? what appeals to one person can repel Traffic is the secret to success in the car another, which is why we selected our Top business, whether you’re talking parts 10 eDealers based on results. This is why sales, service absorption, F&I profit, new we define the 10 Greatest Web sites as those car sales, used car sales or the Internet. In that generate measurable results. You can today’s super competitive market, it’s not refer to the screen shots of these Web sites to as simple as building a great Web site and go online and experience them for yourself selling a ton of cars; you need to let your where you’ll find one commonality; they customers know how to find you. Many are simple and easy to use. The dealers dealers start by making sure that all their told us that common feedback from their employees are familiar with their site and customers (and this can be true for any by tagging all conventional advertising online transaction) is that navigation has with their Web address. The award-winning to be simple and obvious. There’s not a lot dealers make it their business to capitalize of extraneous information on these sites on the opportunities afforded by digital where 90 percent of the space is devoted marketing. They buy the right URLs and to what the customer is looking for, which they use organic search engine optimization is to research product information, to find a and even pay-per-click optimization to particular vehicle in inventory or to access ensure the customer arrives at their site service information. instead of at the competition. Successful eDealers create alliances with regional Dealers also tell us that a Web site will get and local sites that direct customers to results if it is simple, easy to use, quick to their website via banners and links because load and highly engaging with multi-media they know that compared to the cost of technology that can work fast even on a conventional advertising, online marketing low-speed connection. Great Web sites delivers more customers for less money. offer cool features like online coupons, Visit the local newspapers for many of our specials, virtual test drives, online credit Top 10 eDealers, go to the car section and applications, online trade appraisals and you’re likely to find a banner ad whenever a full range of pricing information. Since you research a make that dealer sells. This the majority of new and used car buyers can generate lots of incremental traffic for purchase a model other than what they the dealership. originally select, a great site will offer an alternative if you don’t have the exact Another frequently used and highly vehicle a customer has inquired about, effective online marketing strategy never telling the customer you don’t have employed by our Top 10 eDealers is direct what they want. Great Web sites do much e-mail marketing, because dealers can more than post information online, they reach hundreds or thousands of customers compel the customers to pick up the phone, with just a few clicks and a couple of submit a lead or drive straight to your minutes for less than the cost of a stamp. showroom. Dealers tell us this works best if you have established a database of e-mails and if you 5 Keys to a Great Automotive Web site: have access to multi-media e-mails that use Key #1: Simple and easy to use, fast to the latest in compressed animation. Bob load Tasca III from Tasca Automotive tells us Key #2: Provide what the customer wants that, “Our customers are always telling us Key #3: Incorporate high-tech, engaging, about how much they love our buzzmails multi-media technology that works fast on because it’s like watching a mini-movie a low-speed connection about the product. It’s unlike anything else Key #4: Automatic updating (inventory, out there so it gets their attention. What specials, pricing, etc.) I love is that everything is measurable, Key #5: Devote 90 percent of the space to continued on next page january 2005 23
  • 23. continued including the view rate, so we can measure visible to create excitement and top-of- When it comes to price it would appear that how effective we are at reaching our target mind awareness. there is no magic bullet or proven formula market. If FMCC comes out with an 9. Use automation wisely to stay in touch for success as each dealer’s pricing strategy Explorer incentive, I can send a buzzmail to with prospects who don’t set appointments, was different. However one common everyone who has been in on an Explorer, I don’t show or don’t close. practice for every one of our dealers is can select just our lease renewal customers 10. Management needs to stay involved that the leadership team at the successful who are currently in an Explorer or even and create a sense of passion for the dealerships got together to consider each folks who were in for service. There’s no process. pricing model, evaluate the potential pros limit to how I can target my campaigns.” and cons and created a pricing strategy Tasca is one among many of our Top 10 People: that was uniquely their own. By analyzing eDealers who spoke highly about “virtual “Find the right team and create an each model to establish their own pricing test drive” technology that sends customers environment that they’ll never want to strategy, the Top eDealers told us that every a mini-movie of a walk around presentation leave.” member of the team believed in and felt straight to the customer’s inbox without Robert Revere of Courtesy Chevrolet confident about the strategy as a result. requiring the customer to open an made this comment at the Best Practices Once again, we discovered that nothing attachment. Regardless of their chosen Summit in Las Vegas, demonstrating how sells cars like belief in the value of what vendor, the size of their organization passionate he is about hiring, training and you have to offer. and the franchises they carry, the Top 10 retaining the right people. Our top eDealers eDealers all spoke about the importance tell us that if you have the right people who Measurement: of a clearly defined marketing strategy for are passionate about what they do you can Tracking your performance results. driving more customers to their Web sites. make up for a multitude of shortcomings The best part about Internet marketing in other areas. That’s great, but what is that everything is measurable. Some Process: can a dealer do to find the right people technology providers will even automate The key is implementation and automation. and combat the auto industry’s biggest the reports you need to take a few minutes As with success in marketing, success with challenge - turnover? Whether you’ve built a week to get a great snapshot of how your process begins by clearly defining your Internet sales model around an Internet things are going, who is excelling and what needs to happen, how it needs to Department or a centralized Customer where your process needs fine-tuning. The happen, who will be responsible and how Relationship Center/Business Development most important numbers to track are the they will be held accountable. We learned Center, the top dealers tell us that you need following: from the Top 10 eDealers that it’s important to seek out people who are passionate about • Number of visitors to your Web site for the dealer and the leadership team to customer service and can shine on the • Conversion ratio create a detailed action plan for Internet lead phone. They also tell us you don’t need a • Closing Ratio management and sales. Thinking through team of technology experts, because with • Average gross profit the tactical details can remove some of the the right Web site and CRM tool you will • Cost per sale by lead source barriers to process implementation while not spend much time resolving technology including your Web site and third automation can reduce the margin of error issues or maintaining your Web site. Nor party lead providers and free up your people to spend more time do you need people who have proven to be doing what they do best; set appointments super successful on the sales floor as those Again, Congratulations! and sell cars. Here are the best practices we team members will often attempt to sell the Congratulations to the Top 10 eDealers gleaned from our interviews: car (rather than the appointment) over the and thank you for sharing your insight on phone and usually suffer from “Attention to what it takes to use the Internet to sell more Top 10 Process Best Practices: Detail Deficiency.” Since the main goal for cars. If you have any questions regarding 1. Fast, professional response increases team members within the most successful any of the best practices described in appointment ratio and ultimately sales. Internet departments and CRCs is to sell the this article, please feel free to visit the 2. Customizable e-mail templates for appointment and make sure the customer dealers’ Web sites or send an e-mail to every scenario (price, trade, payments, shows up, it helps to seek out people who and be sure availability, etc.) increase the speed and love working on the phone in the field of to read next month’s cover story where professionalism of your response. customer service. we’ll publish our interviews with the Top 3. First e-mail should set the stage for a eDealers of 2005. phone call. Pricing: 4. PHONE SKILLS, PHONE SKILLS, How to stay competitive while protecting PHONE SKILLS! your fair proÞt. 5. First goal is to sell the appointment, not Pricing was the one area in which we the car. noticed incredible tactical variance among 6. Use a script for all inbound and outbound the top eDealers. We found best practices calls. that ranged from 1. invoice, MSRP and Patrick Luck is the editor and publisher 7. Confirmation calls made by the manager dealer price offered online 2. contact the of AutoSuccess Magazine. He can be will double the show ratio. dealer for a quote and 3. no price quoted contacted at 866.432.8276, or by e-mail at 8. Use an appointment board that is highly online, in an e-mail or even on the phone. 24
  • 24. • Direct Mail Consulting • Promotional Insurance • Promotional Giveaways • List Resources • Staffed Events • Database Management • Live Call Center • Voicemail Broadcasting 710 Waugh Dr. • Houston, TX 77019 rs Maileas as low 29¢ minimum order required Bill Heard Chevrolet Sugar Land, TX Contact: Mike Baches Phone: (281) 491-9000 Gurley Leep Automotive Group Cavender Toyota South Bend, IN San Antonio, TX Contact: Dennis Carey Contact: Lonnie Perez Phone: (574) 876-3455 Phone: (210) 681-6601 o Pick from a Wide array of proven mail n pieces Laser personalization n 8.5x14 Four - Color Mailer p Brown or White # 10 Envelope Featuring Annie Duke, World Famous Poker Champion Check her out at PL AY AND WIN 100,000pcs OF FREE MAIL!!! *Amounts awarded vary between each place Two Ways to Register: 1. By Phone at 888-441-6245 Before NADA 2. In Person on Sat. Jan. 29th at Booth #1961 WE ACCEPT: SHOWDOWN WILL TAKE PLACE AT BOOTH #1961 • Sun. Jan. 30th @ 9:00am
  • 25. sts ms ls fis lr JoeVerde sales and training solution Management Driven Dealerships Question: Joe, what • Satisfied Customers are more price Management: With even a 50¢ compass, a do you mean by focused, and if you don’t convert them torn map, one sputtering engine and loose Market Vs. to value buyers, they’ll turn on a dime steering, you’ll know where you are and Management Driven? for a cheaper price down the street next can start heading where you want to go. time around. If your goal is just good Nothing about “hope” – you have a plan, a CSI instead of Loyalty, you’ll lose most direction, some control and momentum. The average dealership is finding it much satisfied customers. tougher to compete in today’s market. As an We’re at a crossroads in today’s market, and industry, we’ve always been challenged to • Unsatisfied Customers = no more sales. your dealership’s future depends on whether stay on the “value building” path in “Sales”. Note: More are dissatisfied with the buying you choose to be Market or Management After 9/11 when the rebates hit hard and experience than the price. Driven. Becoming Management Driven fast and never let up, a lot more dealerships is tougher because you have to think, made the transition to price–focused selling plan and take action every single day as a instead of value–focused selling and by Can you give me an example of Market vs. Management Team to consistently move doing so, gave up their opportunity of Management Driven? forward. With Management you have consistent growth in sales and profits. control - with Market you have to hope for Market: If you’ve ever had a boat, been good luck. in the middle of the ocean and lost your Does it matter? Dr. Edwards Deming electronics, your steering and your engines, Don’t just “hope” – plan – and have your talks about what happens when quality you’ve experienced what it’s like to be best year ever – every year! declines and we’re seeing it happen now. Market Driven. You don’t know where you Even as every manufacturer is focused are, have virtually no control, don’t know Joe Verde is the president of the Joe Verde Group. He can be contacted on reducing the number of problems per what to expect next and you drift with the at 866.802.5455, or by email at vehicle and CSI is high, the quality of the winds and current. You are definitely on the, or visit buying experience is dropping. Rebates “hope plan”. have always come and gone ... this time they didn’t. Extended rebates equal higher costs, so manufacturers and dealers take Market Driven vs. Management Driven their eye off the goal: a quality product and experience. They focus on expenses and Market Driven Dealership Management Driven Dealership try to save their way to a profit, instead of focusing on building more value and selling • 30 percent of sales to repeat, ref., • 70 percent of sales to repeat, their way to a profit. When your focus turns internal & outside prospects ref., internal & outside prospects to saving instead of quality, you begin • 70 percent of sales to walk-in and • 30 percent of sales to walk in and a process that erodes your sales, profits, from advertising from advertising customer base and long-term growth. • Huge ad budgets / high cost per • Low ad $ / focus: internal bus. sale (CPS) dev. / low CPS Why? Because you have three types of • Constant turnover of sales • Virtually no turnover of sales customers: Loyal – Satisfied – Unsatisfied. people people • Untrained management / no or • Well trained, effective poor teamwork management team • Loyal Customers keep you in business. • Price Advertising, Presenting & • Value advertising, presenting and They may ask about price, but in the end, Closing closing they buy YOU and the value experience. That’s why sales people who tell us they • Below average sales people: 10- • Professionals in sales: 12 units or doubled their sales said they did it by 11 units or less more slowing down, staying off price, building • Mgmt. blames market, sales and • Mgmt. tracks, trains and more rapport and focusing more on building customers for low sales manages for sales increases the value of their product and dealership. • Stagnant annual unit and profit • Consistent unit and profit growth Loyal Customers are the least expensive to growth every year get and keep, they buy more, refer friends, and produce higher revenues. 26
  • 26. BEST PRACTICES SUMMIT E V E N T S U R V E Y R E S U LT S The Venetian Hotel & Resort Las Vegas, NV on a scale of 1 to 10 Topics Covered: 8.4 Quality & Credibility of Presenters: 8.25 Would You Come Back: 8.8 Location: 9.4 Overall Experience: 8.5 We asked attendees what will make the next Summit better: Small group breakouts, more time to ask questions. Great job putting this Summit together! General Manager, Toyota, Milwaukee, WI Very worthwhile, overall outstanding. If we make money with the ideas, we will be back! President, Honda/Toyota, Seattle, WA Coming May 2005 Las Vegas, NV On whatever the topic, use real life dealer speakers as BEST you did in this Summit to add real world practices and successes. PRACTICES General Manager, Ford/Acura/Nissan, Ellicott City, MD I think this was great. There were several different ideas represented in the sales and marketing SUMMIT II Stop by booth #6055 departments which gave us a lot of ideas on how to for registration and grow our dealership. Thanks for all your work preparing more details. the Summit. It was great meeting all of you. Internet Manager, Chrysler Jeep Dodge, Dayton, OH 800.901.3062 Stop by, sign up and get a free subscription
  • 27. sts ms ls fis lr RobertRevere marketing solution Courtesy Chevrolet’s Four Keys to Selling 380 Additional Units Master the four keys way to generate traffic was to focus our and convert a higher percentage of our to more Internet marketing efforts on boosting the traffic to unique visitors into leads. What excites us sales and the sky’s our site in order to drive sales growth. Our most is that everything is measurable and the limit. I say this first step was an obvious one; we bought we know that if we continue to increase our because at Courtesy all the Web site names and elected to tag quality leads we will continue to sell more Chevrolet we went all of our conventional advertising with vehicles. That’s our most important metric. from selling 45 units through our e- but the bulk Commerce Department to 75, then 150, 275 of that 800 percent increase in traffic can be People and now 380. Our success can be credited attributed to search engine optimization and I don’t care how great your Web site is, if to getting it right in four areas: Traffic to e-mail marketing. you throw a lot of traffic at people who lack our Web site (we’ve experienced a 800 the skills, training and aptitude to handle percent increase in the past two years), the People don’t use yellow pages anymore, Internet and phone leads, you will only right Web site that is capable of converting they use search engines, and search engine succeed in irritating your customers. We a high percentage of those visitors into optimization is the best way to ensure send all our phone and Internet leads to a “ leads, people and process. that your Web site appears at the top of a dedicated team of people who operate our list. We are able to track that we get top Customer Relationship Center or CRC. positioning and loads of traffic to our site. We have found that it is imperative to find ... if you throw But our best results come from multi-media people who love the phone and shine on the e-mail marketing campaigns. I can target phone because in reality, an Internet lead a lot of trafÞc my audience, send thousands of messages and measure the results. Our campaigns is just a phone up on steroids. We work hard to find people who match our CRC at people who are specifically designed to include a call Specialist profile, love working in customer lack the skills, to action that links customers back into our site, which in turn pulls them into the relations and we work daily to ensure that every member of our team is a blackbelt training and buying process and sets them on the path to on the phone and a master at bringing in aptitude to scheduling an appointment. We have found customers. that e-mail marketing has all of the benefits handle Internet of direct mail but it’s free, easier to measure and faster to send. Process Assuming you have the traffic, the Web site and phone for converting the traffic into leads and a leads, you will A Web site that can convert trafÞc into leads team of superstars, your process will make or break you. When we went live with our only succeed in ” Our site converts as high as 21 percent system, we took the time to clearly define irritating your of our visitors into leads by devoting 90 every step of the lead management process percent of the space to what customers to deliver a consistently professional customers. are looking for 90 percent of the time. We learned that our old site hurt our business experience to 100 percent of our customers 100 percent of the time. In creating our because it was difficult to navigate and process we had to think through issues such TrafÞc frequently qualified prospective customers as how to handle pricing and what to do Whether we’re talking showroom visitors, out of stock by failing to offer a similar or when a customer inquires about his or her phone leads or Internet leads, the fastest alternative vehicle if the exact one was not trade value. If there’s one thing I’ve learned way to increase sales is to increase traffic, currently in inventory. When a site shows in going from selling 45 vehicles to 380, and that doesn’t happen by waiting for the customers that we don’t have what you’re it’s that every member of the team needs “Up Bus.” Anyone in our dealership will looking for they will immediately eliminate to understand and support the process 100 tell you that I am not a “computer guy” you from their shopping process. percent. Get your team involved, get its and I’d even be a whole lot happier if e- input, hold it accountable and find a way to mail would just go away. So I was very Our Web site not only resolves the challenge generate passion and belief in your process, surprised when we launched our virtual of “No Car in Stock,” it automatically and the sky’s the limit. dealership and found that our new Web sends a virtual test drive to the customer site was actually generating increased on the vehicle they inquire about and links phone traffic and showroom opportunities. them back into the Web site to take them This is technology I can use. After further down the road to the sale. All of measuring the results for a few months, this includes multi-media animation that Robert Revere is the eCommerce we took a look at how much money we can be viewed quickly even on a low-speed director at Courtesy Chevrolet. He can be were spending on newspaper and radio connection and has proven to successfully contacted at 866.873.0034, or by e-mail at and decided that the most cost-effective drive traffic, build value in our dealership 28
  • 28. EXPOSED Auto Dealer Speaks Out and Reveals the Raw Truth about That “Consultant –Trainer,” Mark Tewart, Who advertises in this Magazine All the Time. This guy, Mark Tewart promises all sort of things to us car dealers – sales and management strategies for our dealerships that he “promises” really pay off. Such as strategies that will increase sales without increasing your advertising. Ways to increase gross proÞt by $200 a car minimum. How to reduce and eliminate water in used cars and so on. Every time I read one of his ads, I thought, “Who could be dumb enough to fall for this guy’s rap?” Now, I’m going to tell you the raw truth about this guy and his ‘success secrets.’ My name is Chad Hawkes; I live in Oklahoma with my wife and child. I went to college here and became a salesperson at a car dealership. I was a struggling salesperson with little direction and not much of a future if my results stayed the same. I didn’t know what I was doing and was frustrated everyday with the business. I needed a change and I needed it quick. One day our dealer hired a consultant and trainer named Mark Tewart who ran all these ads with these big claims. However, our dealer told us he had known this Mark Tewart guy for several years going back to when he was a new manager at another dealership. Our dealer told us to hang on to our hats because this guy Tewart was a Þreball with more real valid information on success in the car business than anyone he had ever seen and that he wouldn’t have become a dealer before he was 30 years old without Mark Tewart. Most of what he taught us was so different from what we had ever seen, heard or been taught by other so-called experts. As we listened to Mark’s information, we saw a whole different way to develop a high income career rather than just make a sale here and there. We heard sales skills, people skills and life skills and found freedom from the cheapest price, roll around in the mud, bait-n-switch ugliness. Best of all we learned actual skills to reengineer our business (managers and dealer as well as salespeople). I even looked in the mirror and saw Chad Hawkes differently. So, skeptical and grateful at the same time, we left the workshop with a workbook and CD’s full of ideas. The next day I began to implement 10 different Mark Tewart strategies. Over the next couple of weeks, as I got them up and running, they all surpassed my greatest expectations. Let me give you an idea of what I am talking about. My Þrst year of implementing Mark’s strategies, I became the number one salesperson and my production tripled. I began to get my life in order as well. Every time Mark came to the dealership he taught me lessons that made my whole life change for the better. After a period of big increases, I was promoted to manager and attended Mark’s Management workshops. Once again, I was amazed at how much incredible information I got and how much it improved our dealerships sales and proÞts. Our little country dealership, located in an economically challenged area had improved from 40 units a month to over 325 units and we had become on many months the largest dealer of our brand in the state! Personally, I went from struggling to winning. I became the General Sales Manager and then bought my own dealership and now own two dealerships before turning 30 years old. How, you ask, could such a thing happen? The answer, simply, is learning how real proven and effective sales and management systems work, from the “master”, Mark Tewart. In spite of everything you hear about business being slower and tougher, my business is booming. Just a couple of Mark’s strategies alone has allowed me to go from 40 used cars a month to over 120 a month operating out of a trailer! Thanks to Mark’s ideas, systems, inspiration and encouragement I have two dealerships and have bought the ranch of my dreams for my family. What is important is that Chad Hawkes can sell a ton of vehicles, get plenty of referrals, is unaffected by competition and has ‘real’ systems in place to realize a huge proÞt every month. I knew Mark had it Þgured out when after one consulting session he showed me over 40 ways to grow my business and make more proÞt. He is brilliant. So here’s the raw truth about this Mark Tewart guy: Unlike most of the ‘pretend’ experts, he is a bona Þde trainer-consultant and money making genius, who can do anything from tweaking to transforming your business, so you not only make a lot of money, but you can make it a lot easier and more enjoyable than you can imagine. Maybe you are already doing well already – but you could do better (some of Mark’s most ardent students make many millions per year). Maybe you just don’t want to be sold something that’ll be a waste of your hard-earned money. About that you can relax. Mark guarantees his stuff. I’ve got over $1,000,000 reasons why you ought to investigate what Mark has to offer. What reasons do you have NOT to look at this? And here’s how easy it is: Mark has prepared a straight-talk, detailed report – “HOW TO RECRUIT, HIRE AND TRAIN A DREAM TEAM OF SALESPEOPLE,” which you can have absolutely FREE of cost or obligation. Get it, read it and decide for yourself whether or not you want to get in on Mark’s information. It’s that simple. To get your FREE Special Report go to or call our 24 hr. hotline at 1.866.432.2468. You will hear a brief, free recorded message and be able to leave your name and address, so your report can be mailed to you. Or write “report” on your business card or letter head and pop it in the fax machine or email it. Mark’s fax number is 513.934.4588 and his email address is - Either way, you will get his eye opening report rushed to you, free. By the way, I wasn’t paid a penny to write this about Mark. I am a car dealer just like you. I did this just as a way of saying thanks to Mark for everything he’s done for me. And I am not the only person who feels this way. With your report, you’ll get a book of actual comments from some of the over 10,000+ other salespeople, managers and dealers he has helped. Most like me are now making more money, with less hassle than ever before. More business that we handle ßows in everyday… proÞtably. All we can say is this, “don’t envy us. Join us”. Chad Hawkes, Hawkes Motors, Pryor, OK. P.S. Please don’t get my number and call me. The last thing I need is a zillion phone calls asking me about Mark. I’ve said what I have to say right here. What else could you possibly need to know? Instead, call 1.866.432.2468 and ask for your FREE SPECIAL REPORT today. You owe it to your business. visit for a Free Special Report or call 888 2 TEWART 283.9278
  • 29. sts ms ls fis lr TonyDupaquier f&i solution The Importance and BeneÞts of a Credit Application One of the main the products sold in the business office, service for an additional fee. functions of a credit and attempting a conversion without an “ application is to guard application is near impossible. The credit application is also the customer’s the financial interests story to the lender. With the advent of of the dealership. services like CreditNet, many dealerships Unless the customer The credit application have gone to a five liner instead of using pays for vehicle using cash, actual cash is no longer an a full credit application. This short app and not checks, the dealership becomes a does not provide enough information when lender. As a lender, the dealership has the optional piece of speaking to a lender of a credit-challenged right to pull a customer’s credit. paperwork in the customer. Even though many lenders use How is the dealership a lender? If the dealership; it has credit scores to determine loan approvals or tiers, the information gathered with a customer writes a check, it will take a few become mandatory for credit application becomes invaluable in days for that check to clear and for the each and every deal, your next create-a-deal meeting. The credit money to be transferred into the dealership’s application can show stability and the account. Therefore the dealership is lending and its importance ability to repay a loan. the customer money until the check clears. and advantages must The same goes for drafting from a bank or be conveyed to the According to the Fair Credit Reporting ” credit union. The loan may be only for a day Act, which went into effect in September or two, but there is still a risk involved for appropriate dealership of 1997, a dealership is not required to the dealership. In your next meeting, have personnel. acquire a signature to run a credit bureau. the business manager show and explain this All the customer must do is make an overt to the entire sales staff and desk managers. act toward purchasing an automobile. It A credit bureau on every customer will soon is considered to be an overt act when a One of the biggest challenges business be a legal requirement. As a provision of the customer has settled on a specific vehicle offices face is the lack of credit applications Patriot Act, dealerships will be required to and is engaged in discussion regarding the on customers who go to their own bank run all customers though a national security sales price or payment options in a business or credit union or for those who pay via database called the Customer Identification environment. A business environment check. Without a credit application, it Program (CIP). Dealerships must do this would be a sales person’s office, becomes very difficult to conduct a proper for every customer. A dealership can do business office or any location within the customer interview. Without an interview this or enlist a secondary company to do dealership where deals are discussed and it is impossible to create the need for it. Many credit bureau companies offer this consummated. A casual discussion between the customer and the sales person while walking on the lot or a customer wanting to take a test drive of a vehicle does not constitute an overt act. It is a requirement of the credit bureau companies and many of the lenders, that dealerships have customer authorization to run a credit bureau. The credit application is no longer an optional piece of paperwork in the dealership; it has become mandatory for each and every deal, and its importance and advantages must be conveyed to the appropriate dealership personnel. Tony Dupaquier is the director of F&I training for American Financial & Automotive Services Inc. He can be contacted at 866.856.6754, or by e-mail at 30
  • 30. sts ms ls fis lr JosephSchmoke sales and training solution Across the Board Increase in Service and Parts Revenue Place emphasis on they can’t be loyal and not satisfied. Culture change in the service department retraining service has resulted in across-the-board increases managers and A professional walk-around will result in in service and parts revenue for dealerships service advisors in additional labor and parts sales on a monthly that have embraced and applied this proven a more customer- basis. This additional revenue comes from approach to serving customers. friendly approach. items that customers may normally do or Joseph Schmoke is the president and This retraining and continued education is buy elsewhere, such as wheel alignment, founder of University Consultants LLC. He resulting in dealerships numbers going from batteries, wipers, tires, mud flaps and light can be contacted at 800.901.3058, or by 35 percent to 56 percent increases in labor bulbs. e-mail at and part sales in only a few months. Six or eight days of training seldom imbeds new habits. Dealerships experiencing success with new methods find that training and education must be ongoing to be effective. To affect culture change in a dealership, the dealer-principal and the general manager appreciate that customer patterns have changed. Customers expect to be treated well, and have trouble-free automobiles. Customers in for service, cannot be simply written up and routinely sent to the waiting room. Customers must now be shown a higher level of service while building assurance that the dealership is the place to bring their vehicle for all things automotive. The components of culture change in a dealership’s service department are easy to master, which creates customers-for-life. The first step is the appointment process. When the customer calls and the appointment is set, a file is prepared and reviewed the day prior to the appointment. In it is detailed information on the customer and the vehicle’s history, along with recall information, if any, and recommended service intervals. A call is made to confirm the appointment and prep the customer for anything they need to bring with them. When the customer arrives for his or her appointment, the service advisor greets him or her with a smile and a cheery, “Good morning, Mrs. Smith, we’ve been expecting you.” Customers react positively to being greeted by name by someone who’s been expecting them. The next step is the walk-around, which entails walking around the car with the customer, pointing out the condition of the tires, opening the hood and checking the fluids right in front of them. The walk-around serves more than one purpose. The most important goal it accomplishes is to create a friendly relationship between the service advisor and the customer. A large amount of trust can be built to ensure customer loyalty. Customers can be satisfied and not loyal, but january 2005 31
  • 31. sts ms ls fis lr KarenDillon sales and training solution Huge Dividends in Happy, Loyal Customers Franchised dealership 3. Provide a tool that offers ease and recommended services with the customer, service departments convenience for those customers who prefer explain his or her vehicle is due for such have experienced to use the Internet to schedule real-time, on- service, what the service entails and how increased competition line, confirmed service appointments. The it benefits them. This open communication from independent use of such a tool: creates trust which results in increased repair facilities and • Increases customer loyalty. profits, CSI and customer loyalty and the quick-lube centers over the past several • Increases customer satisfaction. frequency with which they spend money at years. A startling statistic shows nearly 70 • Increases customer frequency. your store. percent of new car buyers choose service • Increases customer retention. facilities other than the selling dealership • Increases service department efficiency. An example of the right way and wrong way during their ownership cycle. Capturing • Increases service department revenue. to sell additional services: this business is critical to the dealership, • Saves time on in-bound telephone calls. (Wrong Way) You haven’t had your tires both in service department revenue and • Drives traffic to the dealer’s Web site. rotated for over 9,000 miles. Should be customer retention. done every 6,000 miles. Want us to do Along with the competition, another factor that? Dealers have attempted to address customer in reduction of service department business (Right Way) The last tire rotation performed perceptions that competitive facilities is the change in manufacturer-recommended on your vehicle was at 30,000 miles. The are more convenient and less expensive maintenance schedules. The three months, manufacturer recommends tires be rotated by offering express-lane service for 3,000-mile oil change is a thing of the every 6,000 miles. This is an inexpensive maintenance items and posting their pricing past. Manufacturers are recommending way to reduce tire wear and extend the life in the service department. Many have also maintenance services at 5,000 miles, 7,500 of your tires. We could do that today in extended their service department hours, miles or even more extended intervals. conjunction with your other services for offering more evening hours and, in some only $_______. Wouldn’t you like for us to cases, weekend hours. These factors reducing the number complete this service for you as well? of vehicles coming across the service Dealerships can be proactive and devise a drive make it imperative for the service The first impression is very important, and system to re-capture these customers. Some department to maximize the revenue from just as important, is the last impression. recommendations include: those customers they do see. As always, When the customer comes in to pick up his 1. Regularly reinforce to the entire staff only necessary services should be sold. You or her vehicle, again reinforce the fact the the importance of retaining customers in never want the service department to gain dealership values his or her business. This service. a reputation of recommending unnecessary is certainly communicated by the attitude 2. Establish a process and hold key people services. of each dealership employee, along with accountable to ensure the service department either a vacuumed, washed car, a coupon is presented fully to each customer at the The initial contact with the customer for a free car wash or a coupon for the next time of delivery of his or her vehicle. At when he or she enters the service drive scheduled maintenance. An effective and that point, the sales person should: is of utmost importance. This is where inexpensive idea is a note from the service • Communicate that all dealership the service department relationship can manager thanking them for their business. associates are aware the customer has many be established and nurtured. Be certain These can be printed in advance, attached to choices for purchasing and servicing their the customer is greeted promptly and each repair order and, in case the customer vehicles and emphasize the dealership’s pleasantly. Make sure someone is available has any questions or concerns, provide commitment to earn the customer’s business to greet every customer as he or she enters either the service manager or customer in both sales and service. the service drive. Complete attention needs relationship manager’s contact information. • Introduce the service manager and/or to be directed toward each customer in for service advisors. service. How good does it feel when you Spend the time and effort necessary to be • Discuss the dealership’s highly trained arrive at a place of business and you are certain everyone in your service department, technicians and explain they are specialists greeted by name? whether it be the service manager, service for the particular vehicles the dealer is advisors, cashier and anyone else who has selling. Continually train your service advisors contact with the customer, either in person • Discuss the dealership’s investment in in sales and customer service techniques or via telephone, appreciates the importance specialized tools and equipment to enable so they are prepared in advance for each of each and every customer being treated as it to properly maintain and repair today’s customer as he or she enters the service a “Very Important Person.” This will pay vehicles. drive. This includes reviewing all service huge dividends in happy, loyal customers; • Review the normal maintenance required history on the vehicle, confirming all repeat business and additional revenue in to keep the factory warranty in effect and necessary parts are available, researching your service, parts and sales departments. explain the dealership maintains all service vehicle recall status and planning to offer records. services for which the vehicle is due that the Karen Dillon is the president of • Schedule the customer’s first service customer had not requested when making She can be contacted appointment, thus beginning the customer’s the appointment. The most effective at 800.901.3170, or by e-mail at relationship with the service department. approach is to take time to discuss the 32
  • 32. Subscriptions for $1a Day! NIADA Member subscription rate only $368 year. Nonmember subscription rate only $468 year. Endless hours of education for franchise and independent dealers, sales people, auction executives and vendors. Sample Programming EDUCATIONAL PROGRAMMING M “Your Dealership Service Contract Program: Keeping it a Profit Center” M “How To Sell A Car And Keep It Sold Part 1 - Noncompliant Paperwork: M “Proper Use of Starter Interrupt Devices in a Motor Vehicle Transaction” The Greatest Area of Legal Exposure in a Dealership” M “Warranty Issues in a Motor Vehicle Transaction: Back to the Basics” M “How To Sell A Car And Keep It Sold Part 2 - Commencing the Customer Relationship” SPECIAL FEATURES M “IRS Bank Secrecy Act and Form 8300” M 2004 NIADA Leadership Awards M “Vehicle Remarketing: Auctions and the Dealer” M 2004 NIADA Quality Dealer Awards M Preview “How To Break A Car Deal” M Legal, Legislative, Regulatory Affairs Forum M “Standardized Dealer Accounting Part 1 - Standardized M Being Uncommon Accounting and the Financial Statement” M Discover From Within M “Information Technologies and the Auto Dealer” M Manheim Drive Center M “The Garage Liability Insurance Crisis” M National Remarketing Conference M “How To Attract Lenders To Your Dealership” M “Incoming Call Part 1 - Putting More Fun Back Into NEWS Your Business (What the Receptionist Should Be Saying)” M “Driving Business” (Monthly Industry News With Michael York) Featuring Brad Todd the President of AFC (Automotive Finance Group) M “How to Best Serve the Hispanic Customer” M “Legal, Legislative, Regulatory Review” (Monthly Review with Keith M “Complying With The FTC Used Car Rule” Whann) M “How to Establish and Operate a Related Finance Company” M “The Power of Association” (Monthly Association News Update with M “Steps to a Motor Vehicle Sale: A Review of the Forms Michael Linn) Involved in a Motor Vehicle Transaction” M “Fuel For Thought” (Monthly Dealer Operations Insight with D.J. Harrington) M Certified Master Dealer (CMD) Program Preview M How To Break A Car Deal (Q & A Session) INDUSTRY SPOTLIGHT M ADESA Vehicle Donation Ceremony M “How To Sell A Car And Keep It Sold Part 3 - The Customer’s Test Drive” M 2004 Expo Vendor Highlights M “How To Sell A Car And Keep It Sold Part 4 - Privacy, The Patriot Act and Your Dealership” M 2004 NIADA Convention Highlights: Behind the Scenes M “How To Sell A Car And Keep It Sold Part 5 - The FTC Used Car Rule M NIADA At The Columbus Fair Auto Auction (Buyers Guide) and Related Warranty Issues” M 2004 NABD Highlights M “Incoming Call Part 2 - Watch Which Ear and Words You Use” M Dealer Education Opportunities M “Standardized Dealer Accounting Part 2 - Internal Controls in M The Car Counselor (with Keith Whann) the Dealership” For advertising opportunities, contact NIADA at 800.682.3837.
  • 33. sts ms ls fis lr DavidA.Fish marketing solution Sophisticated e-Newsletters Create Interest, Detect and Qualify Buy Signals Smiles, discussions of form between the e-newsletter and your you to contact them. If they provide you terms, holding hands dealership’s Web site) at the end of an with a phone number, then you already with the spouse, etc., article, in a promotional offer or both. know what to do. If they don’t, respond are buy signals sales When the reader clicks on it, the form right away with an e-mail that compels people pick up on as pops up and provides an opportunity to them to make a showroom appointment customers progress request more information about the topic before a promotion expires. toward buying. A customer walking or offer. E-newsletter services can track into your showroom is the ultimate buy this behavior and provide a detailed lead Assessing e-newsletter solutions signal. What if you could determine if report showing you who in your subscriber There are in-house software products, your customers are sending you buy base is ready for a response from your sales turnkey e-newsletter services and ways to signals before they ever set foot on your team or business development center. integrate e-newsletter services with your showroom floor? Web site, CRM and DMS systems. The Qualifying the level of interest key is to make sure that the information Well-written e-newsletters are powerful Not only does content tracking monitor captured by the tracking is as actionable as customer retention tools, keeping who is interested, it helps dealers qualify possible. Reports should be automatically dealerships top of mind between showroom and prioritize prospects by the level of buy generated and easily interpreted. Ideally, visits. They deliver even greater value by signal. If a recipient reads the first few individual viewing behaviors should driving customer interest in new products paragraphs of an article but doesn’t click be mapped to corresponding e-mail and promotions and then helping dealers through to the more detailed information addresses. to detect and act upon buy signals arising on a jump page, then he or she may be only from the customer’s interaction with the mildly interested and not really sending a Gain advance knowledge e-newsletter. buy signal. of customer preferences Continuously fine-tune your e-newsletter, Content creates interest and action However, if a customer or prospect reads with buy signal capabilities, to deliver more E-newsletters are marketing tools an entire article, perhaps more than once, valuable feedback. Your customers walk that help you create and then elevate or clicks through to a related promotional into the showroom having done extensive customer interest levels. The first step is offer, then he or she is sending a real buy research on their vehicle purchase, to add content that pushes customers and signal. your dealership and perhaps even your prospects to take action. inventory. E-newsletter buy signal reports Recipients who read articles or promotions give you advance knowledge about your For example, you can run factory or then click through to your Web site or fill customers. dealership offers to help convert shoppers out a shadow form, are sending very strong into more of a buying mode. Certain time- buy signals and qualify as hot prospects. Example: You have several 30-year-old driven offers can boost interest even more customers who have previously purchased by creating a higher level of urgency. Content tracking functionality not only coupes or sedans. Content tracking shows Good examples are limited-time financing enables you to detect these different levels they recently spent a lot of time reading an promotions or early lease termination. of buy signals, it does so on a recipient- article on mini-vans for growing families. When a reader engages with this content, by-recipient basis. Some e-newsletter Now you have the advantage. You can he or she is in effect sending a buy signal. solutions provide e-mail addresses mapped anticipate their needs and send an e-mail The next step is to capture, measure, and to a specific individual’s interaction with promoting a mini-van offer just for new act upon it. content as part of a sales lead report. This parents — perhaps you offer a car seat to makes the tracking information easily and customers who respond within a certain Detecting buy signals instantly actionable. timeframe. You’re now in a position to The right content is necessary for creating have a trade-in, upsell and financing and elevating interest, and it becomes Respond immediately strategy mapped out by the time the more valuable when you can tell which It’s important to have a systematic approach customer comes in. readers are engaged and what is their level to following up on buy signals generated of interest. by content tracking reports. Identify who Information is power, in this case, selling on the sales force or marketing team owns power. And you get this selling power by There is e-newsletter tracking available the responsibility and require immediate extracting the most value out of your e- that shows how recipients interact with follow-up. A prospect who is clicking newsletter — driving interest, detecting articles and offers. It can tell whether around your e-newsletter and Web site for buy signals, and then following up with an or not a recipient reads an article and information can easily click to competitors’ offer your customer can’t refuse. how far he or she drills down into it. It sites, too. Keep them interested in what can also tell you if a customer reviews a your dealership has to offer. David A. Fish is chief executive ofÞcer promotional offer once or multiple times. of IMN (iMakeNews Inc.) He can be Taking it to the next level, you can embed Recipients who fill out a shadow form when contacted at 800.871.0012, or by e-mail a “shadow form” (an offer-specific inquiry they click through a promotion, intend for at dÞ 34 successful solutions at
  • 34. sts ms ls fis lr JimAdams sales and training solution The Value of a Professional T.O. By making sure wandering through the inventory he or she your managers are can approach the customer with a fly by controlling the sales early T.O. The sales manager should briefly process and taking introduce themself in a non confrontational one last chance to way and begin the process of asking close the sale, you investigating questions that will lead to a will increase gross profit and sell more product demonstration. units. Sales people must appreciate that a professional T.O. is a step of the sale Identify the customer’s wants and needs not a sign that they have made a mistake. and help the sales person move the Professional T.O.s increase closing ratios customer on to a demonstration. Remember and gross profit. the key to the sale is a professional product demonstration and presentation. It is the sales person’s responsibility to give Fifty percent of customers will buy on the customer an effective meet and greet, the spot, given a great demonstration and investigate the customer’s wants and needs, presentation. Get the customer and the sales build rapport and select a product. It is also person headed in the right direction and get the sales person’s responsibility to provide out of the way. It is important to remember the customer a professioanl demonstration that the T.O. does not replace the process. and presentation and ask test closing It is an effective way to move the process questions through out the sales process to along. move the customer closer to the sale. The T.O. can come in any part of the sale to help Depending on your sales process, the next move the process along or at the desk to aid T.O. can move at different times. To ensure in closing the sale. the total effort with every opportunity, “ every customer that is prepared to leave the dealership without buying must be turned Fifty percent of over to management. customers will A professional T.O. is easy and non confrontational. Sales person, “Before you buy on the spot, folks leave I would like to introduce you given a great to Jim Adams because he is our general sales manager and in case I am not here demonstration ” when you come back, I want you to know and someone else at the dealership.” presentation. At this point the sales person will shut up and let the manager clarify the objection, isolate it, overcome and close the sale. The manager may even send the sales There are two basic types of T.O.s. The person on a mission. This means getting the early T.O. and the desk T.O. sales person out of the picture so that the customer can speak freely without losing The early T.O. should come early and often. face. The customer wants to buy the vehicle A focused desk manager should pay close or he or she would not be at the dealership. attention to the opportunity that is at the Many times a second face will be all it takes dealership at all times. Many managers get to close the sale. It is a powerful part of the side tracked by daily activities and are not professional sales process. focused on the most important event that is happening in our dealerships right now. A professional T.O. of every opportunity That is the opportunity in the showroom. that enters our showroom will increase By monitoring the showroom traffic, the closing ratios and gross profit, which means sales manager can watch for and identify to you that your income will increase and problems on the lot that can lead to a lack ultimately your quality of life too. of product demonstration. Remember, 99 percent of the customers that leave your Jim Adams is the general sales manager showroom without a demonstration drive at Roper Kia in Joplin, MO. He can be will not buy. When the sales manager sees contacted at 800.905.0627, or by e-mail at that a customer and the sales person are january 2005 35
  • 35. sts ms ls fis lr MarkTewart sales and training solution Building Your Business Have you made the a marketing web. List every way you Automate your follow-up using technology. commitment that presently acquire leads such as walk-ins, E-mail, Autoresponder e-mail and Sequential automotive sales is phone prospects, be-backs, referrals, repeat Autoresponder e-mail are all ways to follow- your career choice? customers. Then begin to list new ways up and add value that can be done while Unless you commit, you could begin to acquire leads and how you sleep or on vacation. Video e-mail it’s impossible that you can strengthen or add to your existing and personalization are keys to making a “ you will take the necessary steps to create methods of generating leads. connection, removing the impersonal nature the business you desire. Long-term thinking of e-mail and adding the wow factor. in addition to short-term goals are keys to continued success. Business cards All sales people need their own personal Web also need the sales site. The site should include sign-up forms When you first enter into a sales position, that collect e-mail addresses. The site should 80 percent of your time is spent acquiring person’s Web site, be personalized with your picture, family e-mail address customers and 20 percent of your time picture, your own personal story, rewards for is spent maintaining those customers. visiting the site and helpful information for Eventually, with the right efforts, that model and slogan. Put a the customer. Your Web site should include call to action on should be reversed. Eighty percent of your an audio introduction link. time should be spent maintaining your customers and 20 percent to acquire new customers. your cards for the Do your business cards look like 99 percent of others sales people’s business cards? customer to come ” Don’t use a picture of a car, use your picture You face a paradox of time management in building your business. The paradox is see you, call you or or caricature. Business cards also need the sales person’s Web site, e-mail address and that you must work in the business and also visit your Web site. slogan. Put a call to action on your cards for work on the business. When you are face- the customer to come see you, call you or to-face with customers you are working in visit your Web site. the business but no matter how busy you are, Do you presently have a software program you must find time each day to work on the for following and managing your leads? Maximize traffic by creating a be-back CD. business, as well. Working on the business Not the dealerships program, your program? Create a CD that you give each customer includes marketing, prospecting, follow-up, Don’t trust anybody or anything to manage who does not buy and invite them to play networking, delegating, automating etc. your most important resource – your it on the way home. The CD should include customers. information about you, your dealership and Insurance sales people, real estate sales product that would benefit the customer. people and sales people from many Secondly, do you have a set follow up Include testimonials and a reward for the industries continually think and act on strategy? How often will you follow up? customer if they come see you. building their business. However, in the auto How will you follow up. What rewards industry the majority of sales people seem will you give, and what special offers will Create coupon swaps with businesses addicted walk-in traffic. Eliminating this you provide to bring them in for service? around you. Visit a local restaurant and offer addiction is the key to long-term success. That creates the Law of Familiarity and to build their business on their worst traffic Obligation leading to repeats and referrals. day of the week for free. You can build their Lead Generation = Dollar Creation. Begin to business by creating a coupon with an offer build multiple streams of leads by building E-mail follow-up and marketing is essential. they approve and then pass these coupons out at work from the cashier, receptionist, and all departments to every customer who Would You Be Interested in a Program That enters your dealership. In return ask that the restaurant pass out coupons from you Pays for Itself Hundreds of Times Over? approved by the dealership with a special offer to come see you. Would you like a cost effective way to increase your referrals? Want to dramatically increase service visits you lose to Once you start the marketing web it will Lube, Mufßer and Tire shops? grow and take on a life of its own. Building a business first requires long-term thinking Up Service Visits by 13x a person. and a commitment to the industry as a career. Up Unit Sales via Referral Cards. When you commit, you have already created AUTO a business, only its shape is unfinished. Call today for a FREE Sample! 800.723.2590 Mark Tewart is the president of Tewart Enterprises. He can be contacted C A S H C A R D S at 866.429.6844, or by e-mail at 36
  • 36. sts ms ls fis lr KirkManzo sales and training solution Human Nature: Taking the Path of Least Resistance Sales people are the comfort zone, the drive to continue is at best same wherever you reduced and at worst completely eliminated. go, whether those sales people are So as a concerned sales manager (meaning here in the states or you are concerned about keeping your job elsewhere. While since you are also paid and evaluated on the recently working with a dealer group in collective sales results of the group) how do Puerto Rico to implement a menu system you deal with this inherent limitation and for its F&I department, it quickly became problem? evident in speaking with the management staff in both sales and F& I (obviously in The best solution is that you must establish you are their cure Spanish) that the issues they are dealing minimum standards of performance. Ask with regarding their sales force, are the same yourself these questions. Can a bad sales issues you face every day, complacency and person (someone who sells very few cars) inconsistency. still make a living at your dealership? Is there someone working on your sales team that In this respect, sales people are really the has no business being at your dealership? Do same as all people: We become comfortable you keep a sales person around just because, with our situation. This is evident when you “well, he or she is a nice person, and besides begin to examine a sales person’s behavior who will get the breakfast biscuits for us in as it relates to his or her sales production the morning?” Remember you are running from month to month. If you were to chart a business, it’s not personal, but if he or she it on a line graph and provide the printout is going to continue to work for you, he or for a cardiologist to examine, as though it she must perform to the standards you have were an EKG read out of a patient, most established to remain on the team. doctors would pronounce the patient (your sales person) as either DEAD or at the least Well then, what should be the minimum critically ill! Why? amount? To begin implementing this process, the minimum amount is less important when Because the graph would reflect the constant compared to your willingness to do what is peaks and valleys we all see from a sales necessary to give credibility to the program. person’s production. One month they are Meaning, if the minimum number is 8 units These kids and knocking down the pins as quickly as they per month (24 units over 90 days) when millions more can be set up, selling 15, 18, 20 units or someone sells only 23 units in 90 days will Mary Tyler Moore more, only to find that the next month they you have the intestinal fortitude to eliminate International Chairman have Juvenile struggle to sell just 7 or 8 units or less. that person from the staff? Diabetes, a disease that threatens their lives every day. So why does this occur? There are certainly On the first week of each month, sit down many opinions, but the explanation David with every sales person in private and None of them can outgrow it. Sadler, founder of The Sadler Institute, establish targets for income, units sold, But we’re closer than ever to a sales training organization, provides is number of ups, demo drives and write ups. a cure. Please, help us make particularly insightful. He commented that Review their actual numbers as compared the reason a sales person will rocket his or to their forecast numbers from the previous life-saving research possible. her results one month only to subsequently month (this assumes you keep track of these Call 1.800.533.CURE or visit flounder the next, is due to that individual’s vital stats). At each meeting, appoint ahead self-image and defined personal worth. In for the next month’s review so you both other words, sales people will only allow place this event in your calendars. This will their production (and income) to equal the ensure the consistency you need to give the amount he or she feels worthy to receive. program the accountability and credibility you want. Evidence of this is found when a sales person sells enough vehicles to achieve a Good luck, and make something happen! monthly income well in excess of what he or she actually needs to meet all of his or Kirk Manzo is the general manager her financial obligations. Jim Ziegler calls at Ziegler Supersystems. He can be this having the “Nut Mentality,” the idea contacted at 800.858.6903, or by e-mail at that once a sales person reaches that income january 2005 37
  • 37. sts ms ls fis lr MichaelYork sales and training solution I Think I’ll Have an Idea Today was a big or direction or idea that you’ll commit to a book? Grow a new business or provide a idea day for me. and begin to pursue. Get going and watch solution or bring value to the marketplace? Had one of those the law of inertia get on your side and How can you do your job better or lately? It started out propel you in the direction of completing, dramatically improve the way you sell your disguised as another competing or winning in whatever you’ve products and services? ordinary day … going over some numbers, chosen. accounting, balancing, you know. Around With what kind of “big idea” thinkers do lunch it shifted to reading some computer Commitment is stronger than motivation, you associate? Or are you just hanging software (not exactly my strong suite), but and new ideas require more than just an around the whiners and complainers? suddenly…BANG! A big idea shows up! I occasional nod of “yeah, that’s a good idea.” What’s the last book you read that inspired mean an “out of the box so big it’s scary” History confirms that all great ideas were you? (Or don’t you read for inspiration?) kind of an idea. We got excited. Ideas can pursued by individuals with an unshakeable have that kind of affect on you. Especially commitment. From Tom Edison to Orville Once a great idea appears, it’s time to take big ones. and Wilbur Wright to Henry Ford to Walt action. All great ideas that we now know Disney to Bill Gates and on and on. about have one thing in common: someone When was your last big idea? Did you act acted on them. In the beginning of new on it? Did you even recognize it as a big Most great ideas we see from the view of information and new ideas, capture now, idea, or just pass it off as a daydream? completed or failed, more of the finished decide later. The beginning is too soon to Most of the big successes you and I read product variety. That we can easily say, “Oh decide whether or not your new idea is just and hear about and contribute to in today’s sure, why didn’t I think of that one?” Or, a daydream or a whopper of a great idea. marketplace started out as someone’s big “Man, I can’t believe he thought that would Capture it on paper. Give it some thought. idea. And they acted on it! Not a passing work.” At the finish line it’s easy to make Nurture it. Water it. Give it a chance to thought that sat quietly by and raised its the call on winners and losers. But the real grow. Take some action in the direction of hand to be noticed as an idea … I’m talking courage is in the beginning. In the believing your idea and see where it can lead. about an idea that cleared the room and and questioning. In the commitment to flipped over tables and chairs! An idea so pursue an idea. One caveat though, don’t look for “ big that you could think of nothing but this confirmation from those around you on BIG IDEA! your new big idea. Sometimes it’s tough for even successful people to see your COOL. I’m writing this to you, to remind In the beginning vision as clearly as you, especially in the me to ACT! And to encourage you to do of new beginning when it’s fresh. In the beginning the same. To move on your next big thing. Today ended with an idea that could be like information of some radical new “thing” the crowd is seldom right. It takes visionary individuals that song that debuts at No.1 on the charts. and new ideas, committed to making their ideas work. Or a book that ships as a best-seller. B-I-G capture now, Never stop asking “What if?” Big! A big idea that doesn’t just make you smile, it makes you laugh out loud! decide later. The Want a list that will help you get started? It’s beginning is too my list, but it might just help you in making I’m sworn to secrecy in the here and now, soon to decide your list go to and whether or not but I’m trusting that you’ll hear about it click on the box that says: Michael York’s one day. And I’m challenging you to act BIG Idea List. on yours, so that I’ll hear about it one day. your new idea is just a daydream ” Think. And then act. Give it a shot. Go for it. Why not? The new year is here, why not meet it with some new ideas? They may or a whopper of a seem small at first, but get you excited great idea. about asking the “what if” question. Michael York is an author and professional speaker. He can be contacted at 800.668.5015, or by e-mail Not just resolutions (that are soon forgotten How can you make the world a better at, or visit and seldom acted upon), but a solid goal place? Have an impact on your kids? Write 38
  • 38. TOP 10 BEST OF THE BEST Belinda Wortherspoon, NADA Wolfington Group Call Center Operator 2005 THE BEST KEPT SECRET IN THE AUTOMOTIVE INDUSTRY! ASK YOUR 20 GROUP! toll free 800.331.9361 D’ELLA G R O U P PONTIAC BUICK GMC CADILLAC CHEVROLET ISUZU LINCOLN MERCURY HONDA Dear Harry: Just thought I would drop you a note to tell you that the promotion was a terrific success. I have done many promotions throughout the years, and the following impressed me: 1. Your people in charge were knowledgeable and were very structured. 2. The support staff were energetic, organized and had a lot of fun. 3. The majority of the customers were first time buyers at our store so the residual will benefit our organization for years to come. All in all, you delivered what you pitched. My staff is ready for round two! SALES • SERVICE • PA R T S • LEASING • COLLISION CENTER D’ELLA PONTIAC D’ELLA HONDA D’ELLA LINCOLN D’ELLA HONDA CHRISTOPHER CHEVROLET BUICK GMC CADILLAC 313 Quaker Road MERCURY ISUZU 319 Cornelia Street BUICK PONTIAC 293 Quaker Road Queensbury, NY 12804 1011 Route 9 Plattsburgh, NY 12901 P.O. BOX 472, Upper Wicker St. Queensbury, NY 12804 (518) 793-3811 Lake George Road (518) 563-7686 Ticonderoga, NY 12883 (518) 793-3871 (888) 47-HONDA Queensbury, NY 12804 (800) 564-6632 (518) 585-2842 (800) 462-1968 Fax: (518) 745-0248 (518) 743-1800 Fax: (518) 563-2263 (800) 336-0175
  • 39. TOP 10 BEST OF THE BEST NADA 2005
  • 40. TOP 10 BEST OF THE BEST NADA 2005
  • 41. TOP 10 BEST OF THE BEST NADA 2005
  • 42. TOP 10 BEST OF THE BEST NADA 2005
  • 43. SuccessStory #1 PRE-OWNED INTERNET DEALER SHARES ALL is the #1 pre-owned internet dealer ick Hannah in Portland, exactly what we did. First, we re-evaluated How did you set up your strategy and Oregon uses a new digi- our advertising budget and we realized that your people? tal marketing strategy to we were spending more money than ever The first thing we did was to get the right sell hundreds of vehicles before on mass marketing but our results people and that has been the key to our a month and has become the biggest pre- were not increasing as much as we wanted. success. We have an amazing team: Babak owned internet dealer in the US. They used There are more television and radio stations Mohammadi is the GSM for our Kia store this new strategy to sell hundreds of vehi- today, so it is harder to reach a large audi- and and he also oversees our Customer Relationship Center and Sub- cles and this article will show you how they ence with out being on all or most of the prime department. Angie Turja manages did it. Joe Orr and Matt Dorsett from Dick stations. In addition, the papers have con- the call center and 8 employees in the Cus- Hannah s organization will answer ques- solidated so their prices are very high. Also, tomer Relationship Center every day. Matt tions to give us some insight into how they the traffic they generate is not the most prof- Dorsett oversees all of our internet activ- became the #1 pre-owned internet dealer in itable traffic we have because our ads are ity for the group and there are many other the world. right next to many other dealerships and the people who are the reason we have been so primary focus is price which drives down successful. Without great people we would Why did you initially get involved with the average gross profit. The bottom line not have accomplished half of what we the internet? is that we were spending more to get less have accomplished so far. Most recently We realized that most of our customers and we could not effectively measure our the department just added two more wom- were using the web to research before they return. It became clear that there had to be a en onto the team who will handle Spanish customers only. Dick Hannah s Customer bought their vehicle so we wanted to make better way and the internet was the obvious Relationship Center handles all internet and sure we marketed where most of our cus- choice for targeted marketing. Shortly after sub-prime leads and their primary goal is to tomers were. We learned that 70%-80% initiating our new internet marketing strat- set appointments. “Our team does a won- of our customers were starting their shop- egy, we were spending a lot less money and derful job following the process of selling ping online and we wanted to take them attracting a lot more business that we could the appointment and our sales team then from the web to our dealership. So that s measure. sells the car” said Babak.
  • 44. Success Story After getting your people in place what so we wanted to make sure it was the best did you do next? site in the market. Today, our website is our We started by getting leads from a number primary source of leads and the closing ratio of 3rd party lead providers. This helped us for our website leads is 2 to 3 times higher get started because we had enough leads than any of our other leads we get. Also, to keep our people productive right away. our site is very easy to use and it gives the We also used the leads from our website as customer more information than our manu- well. Immediately we learned that the best facturer site does. Lastly, our entire website leads came directly from the website but we automatically updates itself so it does not did not have enough of them. As a result, require a lot of our time or attention. we promoted our own website to increase the number of high quality leads that had a What do you have on your site that 20-25% closing ratio. Today we are using is different from other dealers’ web- Do you use the web to help customers a blend of leads from our own website and sites? get financed also? from a select group of 3rd party lead provid- First of all, our site is getting great results. We direct every customer who is interested in ers that give us leads that have a high clos- For every thousand people who visit our a vehicle to complete a secured online credit ing ratio and a low cost per sale. website it converts 3 to 4 times more visitors application. In addition, we have a special into leads compared to our old site. Most finance department that sells over 150 cars a What lead providers do you use and technology companies who build websites month so we have a specific website for all why? don t understand the car business and they of our sub-prime customers. You can view We signed up with many lead providers but build sites that may look good but they don t this site by visiting there were some of them that gave us terrible get results. Our site builds value in our deal- or by visiting Most leads so their closing ratio was very low and ership over our competition and ultimately of our sub-prime leads come from the web their cost per sale was too high. Therefore, generates more opportunities through the and it has been a critical part of our busi- we only kept a few high quality lead provid- internet, phone and showroom. Our old ness. ers like AutoTrader, and Dealix. site did many things that would actually Today our primary source of leads and sales hurt our leads and opportunities because it How about Service Online? are now from our own website but the 3rd would qualify customers out of our inven- We have a virtual service and parts depart- party providers give us access to many buy- tory and tell them that we did not have the ment on our website where customers can ers who initially want to start with an objec- vehicle they were looking for. Our new site schedule an appointment, buy parts or simply tive 3rd party company. In addition, our lead never qualifies anyone out of stock because view our service menu. In addition, we have a providers have a national presence and they we have a virtual inventory that allows the personal website for each of our customers on have exposure in places we do not. Our goal customer to pick any car they want. In addi- our Virtual Dealership. The personal websites is to leverage their exposure while we make tion, customer s can take a virtual test drive are designed specifically for the customer and sure that our website is the dominant online on our site which gives them a multi-media it provides them with critical product infor- buying service in our region. tour of the vehicle they are interested in. mation including recalls, service reminders These tours have sliding pictures, animation and so on. How did you set up your website? and sound. The best part is that these multi- We had some pretty good template websites through Cobalt but they were not generat- ing a lot of sales so we decided to get a new “ has helped us sell hundreds of vehicles website through a company called BZRe- a month and it is completely different from any other site BZ created our site and we used their tools and training to establish ourselves in the market.” Joe Orr, as the primary internet buying service for our region. The key to our new website is media tours stream on a low speed 56k con- How do you manage all of the leads that it generates internet leads, phone traffic nection so 100% of our customers on a dial your website generates? and showroom traffic while promoting all of up internet connection can view them. We use a web-based customer management our profit centers: New, Used, F&I, Service system called “BuzzTrak” that helps us cap- & Parts. Are there any other unique things that ture and control all of our prospects in one customers can do on your website? data base. All of our leads from every source What has made your website so suc- Customers can research product informa- are sent into one tool and it will automati- cessful? tion, read positive reviews, view compari- cally source and distribute the right leads to Our old website looked good but it didn t sons, get Kelley blue book information and the right people based on their schedule. We generate results. It was just an information much more. Also, when a customer is look- use the tool for our daily planner and it re- center and it did not do a good job creating ing for a pre-owned vehicle they can view minds us to do the things we need to do to be leads and traffic for the dealership. Our new multiple pictures, print a brochure, view a productive. In addition, it automates many of website is more like a marketing center and lemon check, send the vehicle to a friend the activities we would otherwise need to do it drives traffic and sales. The bottom line is and they can even view a multi-media pre- manually. The best part of our tool is that it that it is a very important marketing tool and sentation that shows them what we do to automates the majority of our email processes thousands of prospects visit it every month certify their pre-owned vehicle. and prospect follow up which gives us more time to focus on selling cars.
  • 45. Success Story What is automated and why is it impor- ple are doing and I can drill down to view the tomers from other sites to our sites. Search tant? details if I want. For example, it will show engines are very important and our website The automation ensures that the process is the salespeople that gathered email address- is optimized for all the major search engines done right all of the time and it solves the es and the ones that don t. and key search phrases. Lastly, we have re- problem of people not executing consistent- lationships with many regional websites that ly. In addition, by automating most of the How did you market your site? link customers to our site. Fortunately, our follow up it allows us to handle more leads Initially we added our website address to all marketing strategy has done an incredible per person which saves us a lot of money in of our ads including print, direct mail and job in creating more traffic to our site and in staffing. others. Then we had a lot of success with turn this has dramatically increased our leads our email marketing campaigns. We send and sales. Do you automate all of your email cam- out thousands of multi-media emails called paigns? “buzzmails” to our database every month. What type of people do you staff your No. We automate our initial response to cus- These emails are like little commercials that department with? tomer inquiries, prospect follow up for 4 stream over a low speed internet connection. We look for people with great sales, phone months and ongoing follow up after the sale What is unique about these movie mails is and follow up skills. The key to our people s including CSI, Service reminders, Birthdays, that their file size is compressed so they can success is that they have been trained on the Anniversaries, Renewals ect… However, we stream on a low speed internet connection process to sell the appointment rather than have other types of campaigns as well. We and our customers do not need to download trying to sell the car over the phone. In par- use Buzz Trak to send out a lot of permis- anything to view them. Most importantly, ticular, our best people follow the phone sion based bulk email campaigns and direct they drive a lot of traffic to our site and to guide and they understand how to answer all mail campaigns to drive more traffic. Our our dealership. The best part is that we don t of the customer s questions and objections. system has hundreds of pre-packaged multi- have to pay anything to send them and I can The good part is that if they do a great job media buzzmails that we can send out to send a campaign in a few seconds from any selling the appointment the closing ratio of customers with a click of a button. This is computer that has internet access. We also do showed appointments is very high. an important part of our system because it a lot of online marketing so we can drive cus- helps market our website and our dealership without spending any additional money on advertising. One important thing to note is that you cannot do email campaigns without becomes the #1 Pre-Owned eDealer in the world. a large email data base so we have a strategy to gather and store our emails. -Dick Hannah put the right people in place and that was the key to their great results. How do you gather emails in the deal- ership? -Dick Hannah shifted their advertising strategy to focus on the internet because 70-80% of their customers There are many ways to gather emails. We start their shopping online. began by gathering all of the emails we al- ready had in our dealership management -Dick Hannah uses internet marketing to improve their sales and service profits and to reduce their advertising system and lead management tools. Our expense and cost per sale. sales and service team also ask every cus- tomer for their email address. The key to this process is that they always ask the customer -Dick Hannah has dominated their market on the internet by setting up their own regional buying service at for their email and attach a benefit to the question. For example, the sales team asks all of our prospects if they want us to send, their website has won many awards. them a “Free Virtual Test Drive.” The cus- tomer always say yes and then gives us their primary email. We also added the email field -Dick Hannah hired to set up their e-marketing system, websites, crm tools & training. to all of our forms and we put merchandis- ing around the dealership with posters that -Dick Hannah uses email marketing to attract new buyers because it is a very cheap advertising medium that say “Do you want a FREE VIRTUAL TEST gives them a high return. DRIVE?” In service we have posters that offer customers a “Free Personal Website” and the cashier has small cards the custom- -Dick Hannah has trained their people on a successful process to improve their closing ratio and sales. ers can fill out with their email. We measure our email gathering process every day and I -Dick Hannah uses a customer management system to manage and measure all of their customer activity. get an automated report every morning that gives me an overview of all of our oppor- tunities from the previous day including the -Dick Hannah uses their CRM tool to automate their email and follow up activity. This automation guarantees type of prospect (showroom, phone, internet, that things get done and it allows the sales team to handle more leads per person. etc.), the source, the status and more. I can use this to get a global view of what my peo- -Dick Hannah have increased their sales and profits by expanding their strategy to target Hispanic buyers.
  • 46. Success Story What is your Process for handling people and the majority of our follow up is us versus our competition. In addition, F&I leads? automated. I get a report every morning that and accessories are an important component We flow charted our sales process in our gives me an overview of all of the previous for internet sales because when it is handled initial training meeting. We have found that days opportunities on the showroom, phone properly the internet customers back end when we stick to the process we get great and internet along with the status of where profit can exceed the back end profit of tra- results. The most important part of the pro- they are in the process and the key metrics I ditional showroom deals. In the end, our cess is the phone and our ability to sell the need to focus on to improve our results. success de- appointment. All of our internet leads are pends on how automatically imported into one tool that or- How do you handle your pricing? well we build ganizes them by source and distributes them Our average gross profit is usually similar value in our to the right people in the department. In ad- to our showroom gross profit. The most im- dealership, dition, the tool automates the majority of portant part of our pricing strategy is that people and the email and follow up activity so our team we try to sell the appointment and not the products and can spend more time on the phone setting price. When we do address the price we ask not just price. appointments. We have been able to almost for a fair profit and we also emphasize the double our closing ratio by following up with unique benefits they receive by buying from “ has helped us sell hundreds of vehicles a month and it is completely different from any other site in the market.” OLD WAY Customers began their shopping at the dealership NEW WAY Now Over 80% Start Shopping on the Net