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AutoSuccess Must-see Companies NADA 2006, page 4




a division of Systems Marketing, Inc.   January 2006
MUST-SEE
COMPANIES
NADA 2006
UST-SEE COMPANI
                          O     R
                                    ADA 200
                                     L   A    N    D    O        F    L    O    R    I   D    A




                 American Auto Exchange: Delivering innovative solutions that streamline and maximize dealers’ sales operations to
                 include: inventory optimization, Þnance menu, reporting, and dealer desking tools.


                     Auto Dealer TrafÞc, Inc. is the automotive search engine marketing experts. ADT’s focus on SEO, Paid Search, and
                     analytics has made it the premier company in the automotive arena. ADT’s proprietary technology analyzes your
                     search marketing efforts easily. Count on us to give your marketing dollars a ROI!


                    Established in 1999 Auto Internet Marketing has been generating both New Vehicle and Finance Leads of superior
                    quality and content since the beginning of the Internet Revolution. Our unique marketing platform promotes FREE
                    exposure for our Dealers, resulting in FREE leads every month! We look forward to speaking with you soon!


BZ Results is a digital marketing & consulting company currently working with 8 of the top 10 eCRM Dealers of the year. BZ offers CRM,
Web marketing, Search Engine & Email marketing, Websites, New & Pre-Owned, F&I, Service, Parts and specializes in BDC’s. BZ
set up the largest BDC in the world which sold 384 vehicles in one month. They also work with the #1 Pre-Owned eDealer, #1 Honda
eDealer, #1 Chevy eDealer and the #1 eDealer Group in the world.

                              The Cobalt Group and Dealix Corporation specialize in helping dealers and auto manufacturers maximize
                              every proÞt center by helping them: meet, sell to, and retain customers for repeat business in the most efÞcient
                              manner possible by providing a comprehensive suite of services, including the highest quality Internet sales
                              leads and marketing services, cutting edge technology, and the expertise of automotive industry veterans.

                       HomeNet, Inc. is a technology provider offering online vehicle inventory solutions to help automotive dealers
                       manage their vehicle inventory and increase online sales. HomeNet’s Inventory Online (IOL) system allows
                       control of the acquisition, editing and distribution of vehicle data. IOL interfaces with all major DMS and
                       broadcasts accurate vehicle inventory information and photos across the Web.


     Impact Direct develops innovative sited sales and direct marketing campaigns that light up your phones, Þll up your showroom and
     deliver vehicles. All with out taking a percentage of your gross proÞt.


                       InterActive Financial Marketing Group offers new and used car dealers lead generation, direct mail marketing,
                       CRM, advertising and Þnancing by leveraging it’s brands; Carloan.com, Autoloan.com, 1.800.CarLoan and
                       IFMG Direct.


 J&L Marketing’s solid reputation as the industry leader for direct marketing campaigns is based on the strong relationships we form,
 focused marketing, and the increased proÞts we provide for our dealers. We take great pride in our expertise to build the best campaigns
 for your individual needs. This remarkable success that J&L provides for over a thousand dealers a year can be yours, too.


                              We provide a fully integrated web-based software solution for F&I, leasing, special Þnance, BDC, inventory
                              management and sales mangement reports. We also provide direct mail, Internet leads, credit hotlines
                              and website hosting.

                       TimeHighway.com is the premier, real-time, online service appointment scheduling solution. It will increase
                       customer satisfaction and retention, service department efÞciency and revenue, load balance service bays and
                       drive trafÞc to the dealer’s website. Are your customers returning to your dealership for scheduled maintenance?
                       If not, let us help!!!

                       Ultimate Warranty provides leading-edge service contracts and ancillary F&I products. More than 8,000 dealers
                       have recognized the advantages and have beneÞted from selling Ultimate Warranty products. Stop by the booth,
                       and Ultimate Warranty can show you how they are making a great thing even better in 2006.
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                                                       Congratulations eCRM Dealers of the Year                                                                                            PatrickLuck



INSID                                  Planning Your Questions

                 Seven Keys to Warranty Administration Success

                      Take Your Internet Sales to the Next Level

                                  Do You Have a Daily Schedule
                                                                 20
                                                                 21
                                                                 22
                                                                 24
                                                                                                                                                                                           BrianTracy

                                                                                                                                                                                           GreggTompkins

                                                                                                                                                                                           DavidKain

                                                                                                                                                                                           ChrisHanson

 The Rick Case Automotive Group: More Than Just Car Dealerships
                                                                 26
                  Dealers Recognized for Invaluable Community Contributions and Industry Innovations
                                                                                                                                                                                           PatrickLuck

        How Much Does a ‘Token’ Discount Affect Your Paycheck
                                                                 30                                                                                                                        JimAdams

                            Create an Enlightened Environment
                                                                 32                                                                                                                        TomGegax

                                     The Three Sources of Trust
                                                                 34                                                                                                                        DougHall

                   Achieving an Optimal Internet Marketing Mix
                                                                 36                                                                                                                        MichaelRosenberg

                                               Words Are Cheap
                                                                 38                                                                                                                        MarkTewart

                             The Greatest Business in the World
                                                                 39                                                                                                                        JoshWeaver

                                                  Back to Basics
                                                                 40                                                                                                                        AnthonyHall


                                    to Your Service Department 42
                                  How to Bring More Customers                                                                                                                              KarenDillon

                                    Effective Credit Application
                                                                 44                                                                                                                        TonyDupaquier
NADA 2006 Turning a Phone Up Into an Appointment
                                                                 45                                                                                                                        JeffMorrill


 Stop by and see
                             Improve Your Body Language Skills
                                                                 46                                                                                                                        PattiWood
  us at the NADA
 2006 Convention
                              A New Commitment I Give to ... Me
                                                                 48                                                                                                                        MichaelYork
      at booth

#3816
                                   Some Best Practices for 2006
                                                                 50                                                                                                                        ScottJoseph



                                                                                                                                                                                         2 Chronicles 14:11
                                                                                                                                                                                         “Lord, there is no one like you to
                                                                                                                                                                                         help.”
                                                                                            3411 Pinnacle Gardens Drive Louisville, Kentucky 40245
                                                                                             Toll Free: 877.818.6620   Facsimile: 502.588.3170
                                                                                                                                                                                         Isaiah 55:12
                                                                                            Patrick Luck, Editor & Publisher
                                                                                            • pluck01@autosuccess.biz                                                                    “For ye shall go out with joy,
                                                                                            Susan Givens, Vice President
                                                                                            • sgivens02@autosuccess.biz
                                                                                                                                                                                         and be led forth with peace: the
                                                                                            Courtney Paris, Sales-improvement Strategist                                                 mountains and the hills shall break
                                                                                            • chill-paris04@autosuccess.biz
                                                                                            Brian Ankney, Sales-improvement Strategist
                                                                                                                                                                                         forth before you into singing, and
                                                                                            • brian01@autosuccess.biz                                                                    all the trees of the field shall clap
   God Bless America
                                                                                            Thomas Williams, Creative Director
                                                                                            • twilliams03@autosuccess.biz                                                                their hands.”

     AutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or
     info@autosuccess.biz. Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content, and page length. AutoSuccess
     provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. Always confer with legal counsel before implementing changes in procedures.
     © All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess
     may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA.
     Postmaster: Send address changes to AutoSuccess Magazine, 3411 Pinnacle Gardens Drive, Louisville, Kentucky 40245.
CONGRATULATIONS
  eCRM Dealers of the Year                                                                                        written by:   Patrick Luck
                       The benchmark for con-      sites as those that generate measurable results.    Process: Converting leads into sales. Keys
                       sideration for winning      Dealers tell us that a Web site will get results    to successful process include e-mail and phone
                       this year’s award is re-    if it is simple, easy to use, quick to load and     response, setting appointments and following
                       sults as measured by        has highly engaging content that can work fast      up before and after the sale.
                       volume of Internet sales    even on a low-speed connection. Great Web
                       and by how well the         sites offer cool features like inventory, online    People: Our top eCRM Dealers share how to
                       dealers use the Internet    auctions, virtual test drives, online credit ap-    find and keep the right people who are passion-
                       and CRM to promote all
of their profit centers: new, used, F&I, service,
parts, etc.                                          CONGRATULATIONS eCRM Dealers of the Year

Our goal was to seek out the dealers who are                                                              HerbChambers.com
the best at using this marketing medium to
generate huge increases in profit for their deal-                                                          RedMcCombs.com
erships while also improving CSI and loyalty.
We considered the number of rooftops, the size                                                            DaveSmithMotors.com
of the dealerships or dealer groups, their mar-
kets, the brands they carry and their Internet                                                            HouseofCourtesy.com
profits as a percentage of their total profits. In
researching the contenders, we learned a lot                                                              ParagonCars.com
about what determines a dealer’s success with
using the Web to generate increased sales and                                                             CDodge.com
service profits. In this article we outline some
of the commonalities and some effective best                                                              Sheehy.com
practices that have propelled the winners to
the forefront of Web marketing and CRM, en-                                                               DickHannah.com
abling them to sell 100 to 800 extra units every
month.                                                                                                    Schomp.com
CRM Vision and Strategy: For the award                                                                    Tasca.com
winners, the vision began with a desire to at-
tract more customers for less cost compared        plications, online trade appraisals, online parts   ate about what they do and ways to combat the
with mass advertising. These dealers are lead-     and accessories and more. Great Web sites do        auto industry’s biggest challenge – turnover.
ing the way in a marketing revolution initiated    much more than post information online, they
by customers who are using the Web to shop         compel the customers to pick up the phone,          Pricing: To increase profits pricing is critical
for vehicles rather than the paper, TV or radio.   submit a lead or drive straight to your show-       to a dealership's success and profitability. Some
Smart dealers are shifting some of their adver-    room.                                               dealers sell a lot of cars online but they don’t
tising to market where customers are shopping,                                                         make money because their pricing strategy is
and the returns are much higher and easier to      Marketing: How can you drive traffic to              focused on selling price rather than building
measure. Some common denominators of the           your Web site and dealership? In today’s super      value and asking for a fair profit.
winning dealers’ strategy and vision are: tech-    competitive market, it’s not as simple as build-
nology, marketing, process, people, pricing        ing a great Web site and selling a ton of cars;     Measurement: Tracking your performance
and measurement.                                   you need to let your customers know how to          results. Top dealers agree: The best part about
                                                   find you. The dealers profiled have some great        Internet marketing and CRM is that everything
Great Web sites: Appearance is subjective,         methods for increasing traffic without having        is measurable.
and when it comes to design, what appeals to       to spend more money on advertising. These
one person can repel another, which is why we      ideas include e-mail marketing, search engine       Case Studies: In this issue we profile the
selected our Top eCRM Dealers based on re-         marketing, banners and more.                        winners to show how they use the Web and
sults. This is why we define the Greatest Web                                                           CRM to improve profits.

                                                                                                                                                     8
Starting a Revolution
    www.HerbChambers.com Changes the Way New England Buys Cars
              erb Chambers is New England’s
              largest automotive dealer. It is
              the eCRM Dealer of the Year
              and it has been named Dealer
              of the Year by Ward’s. With all
              this success under its belt, it's
well on its way to accomplishing its mission
of changing the way the world buys cars.
Like many dealers, Herb Chambers noticed          www.HerbChambers.com is a new buying             Customers can take a free virtual test drive on
                                                  service that won a the Golden Web Award.         www.HerbChambers.com
that more and more customers were using
the Internet to start the shopping process
when it was time to get their next vehicle.        Herb Chambers set up a regional buying service to make it easier
However, unlike many other dealers, Herb          for its customers to buy a car online. The new state-of-the-art Web
Chambers not only noticed the trend, it set up                       site won a Golden Web Award.
the most successful regional buying service
in the world. This new buying service,
www.herbchambers.com, is revolutionizing
the way people buy cars.
                                                    THE BOTTOM LINE

With 80 percent of today's customers shopping       • Most customers use the Internet at some point in the buying process.
online, Herb Chambers found that customers
were using the Internet because they were           • Customers turn to the Web in search of a way to make the process easier.
looking for a faster, easier and friendlier way
to inquire about and even purchase a vehicle
                                                    • Herb Chambers created a new regional buying service for its customers.
online. So, that’s what Herb Chambers works
to deliver; a fast, easy, friendly way to give
the customers what they need to pick out and        • Herb Chambers sold thousands of vehicles online last year.
buy a car.
                                                    • Herb Chambers was named a 2005 eCRM Dealer of the Year.
Once they found the right technology and
training provider, www.HerbChambers.com
began to leverage its 25 dealerships and
                                                    • HerbChambers.com sells 600-700 extra cars a month.
virtually unlimited pre-owned inventory to
give customers everything they’re looking         result, the system drives more foot, phone and
for with just a couple clicks. Once they’ve       Internet traffic and automates e-mail activity
selected the make and model they’re interested    so the team has more time to use the phone
in, they can take a virtual test drive, run       and sell cars. Herb Chambers has a dedicated
product comparisons, get a price and payment,     team of specialists who are trained to make
check for specials, download coupons, learn       their customers’ online shopping experience a
about the retailers’ three-day money back         pure pleasure. The customer-friendly process
guarantee and 30-day exchange policy, sign        gives the customers all the information they
up for eVIP membership and even book a            need to make an informed decision. As a
service appointment or schedule parts. Herb       result, www.HerbChambers.com has sold
Chambers' new system includes more than just      thousands of vehicles a year to make it one
a custom Web site, it's a complete marketing      of the top eCRM Dealers of the Year and the
system with prospect management capabilities      largest retailer in New England.
                                                                                                   Herb Chambers is the largest
and a suite of multi-media Buzzmails. As a
                                                                                                   automotive retailer in New England.
9
RED McCOMBS SELLS 500 ADDITIONAL CARS A MONTH!
  Dealership Increases sales by using the Web and CRM to improve its business
                ot long ago Red McCombs
                was selling about 40 vehicles
                a month on the Internet, and
                today it is selling an additional
                500 vehicles a month. In this
                article, it identifies the top mis-
takes dealers make with the Web and CRM
that cost time and money.

THE TOP MISTAKES DEALERS MAKE
WITH THE WEB AND CRM:

1. Dealers don’t generate enough leads from
their own Web sites so they have to buy most
of their leads.
2. Dealers fail to attract prospects to their
Web sites. Web sites without traffic don’t sell
cars.
3. Most dealers don’t appear on top of all
search engines and they don’t conduct ongo-          "We were selling approximately 40 vehicles a month on the
ing e-mail campaigns.                                 Internet, and today we are selling an additional 500 vehi-
4. Many dealers’ Web sites don’t generate
                                                             cles a month." Rad Weaver - Red McCombs
leads because they convert a small percent of
visitors into leads.
5. Most dealers don’t have the automated               THE BOTTOM LINE
tools to update their sites so they waste a lot
of time playing with their tools rather than           • Since implementing its new Web site and CRM tool, Red McCombs is
selling cars.                                          selling an additional 500 cars a month.
6. Dealers assume they only need a Web site
                                                       • With 80 percent of today's buyers shopping online, they adjusted their
and CRM tool so they don’t have all the tools          advertising to reach them.
and training they need to succeed.
7. Some dealers hire the wrong people, and             • Red McCombs has increased gross profit from $60k a month to more
they usually get the wrong results. They don’t         than $750k per month while increasing CSI and customer loyalty.
have the right number of people for the vol-
                                                       • Red McCombs increased its closing ratio from 3 percent to 19 percent
ume of leads.
                                                       by automating much of its follow-up.
8. Many dealers don’t have a clearly defined
process that is proven to work.                        • Red McCombs uses e-mail marketing campaigns and search engine
9. Most dealers don’t get the training they            placement to increase sales and lower costs.
need to succeed and avoid costly mistakes.
10. Some dealers fail to automate follow up,           • The cost per sale at RedMcCombs.com is below $200 per vehicle sold.
which hurts closing ratio and sales.
11. Some dealers don’t have a pricing phi-           Most dealers think they will get results with    campaigns, a CRM tool that automates fol-
losophy so their Internet department sells           only a great Web site, and that’s not true.      low-up and the training to tie everything to-
price rather than value, and their gross profit       However, a great Web site is a critical compo-   gether. The system helps us market the site,
suffers.                                             nent. Rad Weaver explains: “Initially we had     update the site, generate leads and even au-
12. Many dealers and managers don’t mea-             Web sites built by our DMS provider and the      tomatically respond and follow up with the
sure the department’s results and metrics so         manufacturer but they hardly produced any        leads before and after the prospect buys a car.
they don’t know how to improve the busi-             sales. So we hired another company, BZRe-        We've learned that it takes more than a Web
ness.                                                sults, who provided us with Web sites, search    site and a CRM tool to sell 500 extra cars a
                                                     engine marketing, custom multi-media e-mail      month online."

                                                                                                                                                  10
Dave Smith Motors
     Dave Smith Motors Increases Sales and Profit
               ave Smith Motors sells 400 In-
               ternet-lead vehicles a month with
                                                                                                                     “We designed our own
               technology created in-house
               – and sells about $600,000 a                                                                              fully customized
               month in accessories – from a                                                                            Internet and CRM
               single-point, multi-line dealer-                                                                       interface system that
ship in a county of just 14,000 people. But for                                                                         helps manage the
Ken Smith, president of this Kellogg ID deal-                                                                       whole Internet market-
ership, size doesn’t matter. His aggressiveness
                                                                                                                    ing and sales process.”
and creative mind has helped the dealership he
                                                                                                                               Ken Smith
took over from his father grow to a $250 mil-
lion business.

Dave Smith Motors' system also has a CRM                THE BOTTOM LINE
tool to help track leads. It requires site visitors
to provide extensive information before they            • Dave Smith Motors developed its own technology to help sell more than 100
can submit the request, which helps get bet-            extra cars a month.
ter-quality leads. Lead Rocket time and date
stamps the leads, and then turns them over              • Their Web site helps them sell more than $600,000 a month in accessories
to the Internet team manager who distributes
them among the 25 dedicated Internet sales as-          • Their system includes a CRM tool to capture information and stay in contact
sociates. Overflow leads go to the other sales           with the customer
associates in the main showroom.
                                                        • Their Web site and marketing strategy help draw customers from as far away
                                                        as Alaska, California and Colorado
In the showroom, there is a computer on every
sales person’s desk and more than 200 comput-           • Dave Smith Motors has used the Internet and CRM to help grow its operation
ers in the store.                                       to a $250 million business

                                                        • The dealership has a team of dedicated internet sales associates to handle all
The system is very simple: Customers e-mail             inbound leads
leads, and the dedicated Internet sales associ-
ates e-mail them back. In real-time, sales asso-      sociates must maintain a minimum of 95 per-       came about around 1992 we decided we want-
ciates can check results right on their comput-       cent customer satisfaction score. Should they     ed to be the dealer in the Internet field. Shortly
ers – no more running to the sales manager’s          fall behind, they’re put on a 90-day proba-       after we got started, we got into a dispute with
office to look at the big board. Monthly sales         tion. Expecting high scores means taking care     the dealers in Montana and Washington that
contests are also available for viewing through       of the customer. As an intranet system, Lead      tried to boycott our dealership. We won that
Lead Rocket, so associates and management             Rocket lets anyone within the dealership send     dispute. These dealers were afraid of the In-
can track on a per-hour basis where everyone          electronic messages throughout the store. The     ternet and they thought we would dominate
is at any given time. Ken Smith gives an ex-          system features in-house classified ads, lists     the market. At the time we started, we weren’t
ample, “This way we all know where we’re              all accessory prices and phone numbers for all    doing much Internet business, though, and we
headed and what we have to do to meet contest         employees.                                        weren’t sure where it would take us. But we did
objectives. The system also reminds associates                                                          know that if we could be first into it and could
of call-back times, and it can be set up so re-       When the company first got started with the        keep updating our Internet sites and keep on
minders pop up on the computer screen or call         Internet and CRM, its approach was to sell at     progressing with it, we might succeed. That’s
the associate’s cell phone or pager. So if John       price lower than MSRP-plus, so it started its     why we developed our own system, because at
Doe calls and says, ‘Call me tomorrow at 2:30         own pricing system. The companies had about       that time there weren’t any lead-generating/fol-
and I’ll buy that truck,’ Lead Rocket pages the       10 computer programmers at one time punching      low-up systems available on the market. I then
associate and reminds him, ‘It’s 2:15 and you         numbers to automate pricing to give customers     put in a full-out press on developing a Web site
said you’d call John Doe back at 2:30, so make        an immediate, automated price. They decided       and then started developing our Lead Rocket.
the call and get the sale.’”                          that they wanted to be ahead of the competition   Today it’s a completely different system than
                                                      – ahead of the market technologically as long     what we’d originally developed.”
The system also helps track CSI. All sales as-        as they could. Ken says, “When the Internet
11
Paragon Honda/Acura Sells 214 Extra Cars Online
  ParagonCars.com Helps Dealership Reach No. 1 in New Car Volume
               aragon Honda has generated
               more than 214 additional sales
               a month by changing its mar-
               keting and sales strategy.

                “We adjusted our marketing
strategy to target customers on the Internet
since nearly 90 period of our buyers begin their
shopping online. More of our customers look
to the Web than TV, radio or print when re-
searching their next car purchase, and we want
to be where the majority of our customers are,”
Brian Benstock from Paragon Honda said.

The Results
Within four months of launching its new mar-
keting system, Paragon not only established a
dominant presence on the Web, it also set up
a complete customer relationship center in           "Every prospect who calls or visits our dealership is offered a ‘free virtual
the dealership to handle all of the Internet and    test drive’ on the vehicle they’re interested in. As a result, we get the ma-
                                                    jority of our customers' e-mail addresses whether they call, click, or come
phone leads the system was generating. As a
                                                               into our dealership.”- Brian Benstock, Paragon Honda and Acura
result, it sold an extra 106 vehicles the first
month the system was up and running and it
increased the closing ratio from 7 percent up to      THE BOTTOM LINE
25 percent. Today, the system generates more
than 200 additional sales a month.                    • Paragon Honda used its new digital marketing strategy to increase sales
                                                      by 214 units in one month.
How did Paragon do it?                                • Since launching the new system, Paragon’s closing ratio went from 7
Brian Benstock explains: "We were only sell-          percent to 25 percent and it became the most profitable dealer.
ing 20 cars a month online so we upgraded our
                                                      • Paragon sends all its prospects and customers multimedia virtual test
Web site but our sales didn't increase. Then we       drives via e-mail.
realized we needed more than just a Web site,
so we hired a digital marketing company, which        • Paragon uses bulk multi-media e-mail campaigns to drive more traffic
gave us a new site and the tools and training to
                                                      without additional advertising costs.
market it, manage the leads and implement a           • Creative marketing online and offline has created more showroom,
successful strategy. As a result, we increased        phone and Internet traffic while lowering the overall marketing budget.
our traffic to our showroom, phone and Internet
                                                      • Paragon’s BDC handles all Internet and phone leads. The BDC is staffed
department while reducing our cost per sale,
                                                      with phone specialists whose only job is to get appointments.
and today we're selling almost 200 extra cars
a month.”
                                                    customers' e-mail addresses whether they call,    our marketing strategy. Today, we have more
                                                    click or come into our dealership.” Paragon has   than 80,000 e-mail addresses which we can use
"Now, we collect e-mail addresses from our
                                                    thousands of e-mail addresses that it uses to     to send campaigns for every month of the year,
customers by offering them free things that
                                                    conduct marketing campaigns. “We have hun-        every season and any theme. We send inven-
they want. For example, every prospect who
                                                    dreds of pre-packaged multi-media Buzzmail        tory reduction, clearance, holiday events, spe-
calls or visits our dealership is offered a ‘free
                                                    campaigns that we can send to customers with      cial financing, key for key exchange and more.
virtual test drive’ on the vehicle they’re inter-
                                                    a few clicks” Benstock said. “E-mail marketing    It’s a great way to generate more sales without
ested in. As a result, we get the majority of our
                                                    is the future, and we’ve made it a big part of    extra cost.”
                                                                                                                                                  12
Sheehy Sells 414 Cars a Month Online
     Sheehy.com Increases Leads over 300 percent in 60 Days
                heehy sold an additional 414
                cars in one month online.
                “We shifted some of our market-
                ing budget to focus on targeting
                the Internet." said Roy Reutter
                from Sheehy. "Customers are
                changing where and how they
shop, so we are changing where we market.
Initially we relied heavily on third party pro-
viders for our leads, and after a short time, we
realized that the leads with the highest closing
ratio and lowest cost came from our own Web
site. We’ve since set up our own regional buy-
ing service, and we’re generating more traffic
and leads for our people to turn into appoint-
ments and sales. We’ve increased our numbers
by more than 600 percent and the Web has be-
come our primary source of phone traffic.”

The Idea
Once the Sheehy team realized it needed more
than a Web site and a few third party lead pro-             “We appear in the first two Google results for free when
viders, it worked to build a complete strategy to       customers type in “Washington DC Ford." Our competitors have
market its Web site, update the Web site, staff
its team, implement a process, establish pricing
                                                             to buy sponsored links where they pay to get a worse
and more. That was two years ago, and since                    position than our two free positions.” – Roy Reuetter
then it has increased its numbers by more than
600 percent and dropped its cost per sale to
about $130 per car.                                       THE BOTTOM LINE
The Technology
                                                          • Sheehy sold 414 cars online by shifting some of its advertising.
Roy Reutter says: "We were using our DMS
provider for our Internet and CRM strategy but
                                                          • After launching the new Web site, Sheehy went from 400 to 1,350 leads in
they were not getting results because that is not
                                                          only 60 days, and today it generates more than 2,400 leads per month.
their specialty. After hiring a specialist in digital
marketing and CRM, our numbers skyrocketed                • The closing ratio for the leads from Sheehy.com is three to four times
because they not only built our Web site but              higher, and the cost per sale is about $130 per car.
they also did all the online marketing including
our search engine placement and multimedia e-             • Sheehy.com is designed to drive phone and showroom traffic, and the
mail campaigns." Sheehy increased leads from              Web site is now it's No. 1 source of phone leads.
400 to 1,350 in the first two months and have
continued to improve results. Today they are              • Sheehy increased leads by 350 percent after switching from its DMS pro-
generating more than 2,400 leads a month from             vider to a digital marketing company to build and market its site.
their Web site alone they’re selling more than
400 cars a month online.                                  • Sheehy's Web site vendor positions it on search engines and helps market
                                                          the Web site online and through multimedia e-mail campaigns.
The Web site
Roy Reutter has found there are five keys to a           5. Designed to create more Internet, phone and   cost per sale by using search engine optimiza-
great automotive Web site. They are:                    showroom traffic                                  tion in conjunction with multi-media Buzzmail
1. Simple and easy to use                                                                                campaigns. As a result, customers are landing
2. Content that the customer wants                      The Marketing                                    on www.Sheehy.com rather than at the com-
3. High-impact, engaging multi-media that is            Roy Reutter has said, “If you can’t generate     petitors’ sites. "When customers go online to
fast to load even on a low-speed connection             traffic there’s no point in having a Web site.”   search for dealers in our area they find us, and
4. Automatic updating                                   According to him, the Sheey Auto Stores have     as a result we have increased our traffic and
                                                        been able to generate more traffic at a lower     sales dramatically."
13
Dick Hannnah
  Becomes No. 1 Pre-Owned eCRM Dealer by Selling 384 Extra Cars in one Month
               ick Hannah, in Portland, Or.,
               became the biggest pre-owned
               Internet dealer in the U.S. by
               rethinking its marketing strat-
               egy and recognizing that there
               is a lot of money to be made in
               special finance online.

They’ve since learned to use the Internet to tap
into the special finance and pre-owned profit
opportunities, and today, they’re selling hun-
dreds of extra vehicles per month. Joe Orr from
the Dick Hannah organization shares how they
implemented a new marketing strategy and re-
gional buying service to become the No. 1 pre-
owned Internet dealer in the world.

The Right Marketing, People and Strategy
We re-evaluated our advertising budget and
realized we were spending more money than
ever before on mass marketing without a suf-
ficient return on investment. An increase in
                                                          “Special finance is huge on the Internet. With
television and radio stations today makes it          DickSaysYes.com, we sold an additional 180 sub prime
harder to reach a large audience. The cost of
print advertising has gone up, and print ads are
                                                          units in one month alone.” Joe Orr, Dick Hannah
positioned alongside competitors’ ads which
focus on price - driving down the average gross
profit. We were spending more to get less, and        THE BOTTOM LINE
it was tough to measure our return. It became
clear there had to be a better way, and Internet     • DickHannah.com became the No. 1 Pre-Owned eCRM Dealer in the
was the obvious choice for targeted marketing.       world and the USA's Approval Site of the Year.
The first thing we did was get the right people
in place to run our BDC and establish a strat-       • DickHannah.com generates Internet leads, phone traffic and showroom
egy for building business. Next, we focused on       traffic resulting in 384 incremental sales.
finding the right Web site and CRM provider.
                                                     • The leads from DickHannah.com have a higher closing ratio and lower
                                                     cost per sale.
The Right Technology
Orr is quick to point out that you need more         • Dick Hannah dominates the market with its own regional buying service
than a great Web site and CRM tool; you need         and sub-prime approval center at DickSaysYes.com.
to build a complete strategy for marketing, get
the right people in place, implement a process       • Dick Hannah hired one vendor to set up its emarketing system, Web
and establish a pricing philosophy. He also          sites, CRM tools and training.
adds: “While the right Web site won’t solve
all your problems, you won’t get far without         • Dick Hannah uses e-mail marketing because it's cheap advertising with
it. We had a pretty good templated site that         a high rate of return.
was recommended by our manufacturer site           for the customer to get further into the process   Reestablish Credit, Fast Bankruptcy Approvals
but we were not getting incremental business.      and continually prompts them to fill out an ap-     and other areas that speak to what’s important
After we switched to our current provider we       plication online.                                  to the sub prime audience.”
increased sales by 180 cars because they not
only built us a better site, they also provided    Joe explains, “The key to building a Web site      Joe’s team has learned that to set yourself apart,
all the marketing tools and training.”             capable of generating sub prime leads is to        you need to make it interactive, clean and user-
                                                   provide information the customer is looking        friendly. Visit www.DickSaysYes.com and you
One great feature of the new site is a virtual     for and a way to contact the dealership. For       can even click on a link to view TV commer-
special finance department called www.Dick-         example, DickSaysYes.com includes a ‘How it        cials that promote the Web site and target the
SaysYes.com which provides three easy ways         Works’ button that provides FAQs, Six Steps to     sub prime market.
                                                                                                                                                     14
Schomp Automotive
     Sells 100 Extra Cars in one Month
               espect. That’s the key word
               at Schomp Automotive. Re-
               specting the customer starts
               with selling according to the
               needs of the customer and say-
               ing goodbye to outdated one-
               size-fits-all high-pressure sales
techniques.

“Our approach to sales is two-pronged,” Lisa
Schomp says. “We pay equal attention to pro-
viding a superb Web site where customers can
research and find exactly what they need and
to our state-of-the-art BDC that ensures our
telephone customers’ needs are met promptly
and efficiently.”

Benefits of the BDC
Implementing the BDC has increased sales,
for the most part, because it greatly enhances
follow-up by Schomp’s sales staff. Custom-          “Our Web site is integral to our success; we sold over 1,000
ers are no longer slipping through the cracks.
                                                    vehicles online in 2004, and over 100 a month this year.” Lisa
Lisa Schomp explains, “We provide prompt
responses with real answers and a genuine in-       Schomp
terest in the customer’s needs. The focus is
to set an appointment, and this is a true team
effort.”                                              THE BOTTOM LINE
The Web site, the Marketing Strategy                  • Schomp Automotive consists of a Chevrolet, Honda, BMW and Mini fran-
and the Technology                                    chises
“Our Web site is integral to our success; we
sold over 1,000 vehicles online in 2004, and          • www.Schomp.com helped sell more than 1,000 vehicles online last year
we are selling a lot more this year. Our Web          and sells more than 100 cars a month today
site provider built us a fantastic site, and they
                                                      • Schomp’s Web site generates 700 new Internet leads per month
provide search engine placement, e-mail
campaigns, our CRM tool and the training we           • Schomp’s digital marketing has accelerated sales from 730 vehicles sold
need to implement everything. We use a suite          to 1,001 and gaining
of powerful multimedia Buzzmails to selec-
tively target our clientele with highly interac-      • Schomp has implemented e-mail promotions that sell more cars without
tive campaigns. We have had a 10 percent re-          any extra expense
turn on e-mail promotions. The way we look
at it is if we broadcast 400 e-mails for free and     • Schomp’s sales have increased because they have the right people using
make two sales from five minutes of typing,            its digital marketing system
that medium cannot be beat. Our customers
                                                    per and radio with their Web site and e-mail    fairly when they walk in the door, we’ve in-
seldom opt out since we do not overwhelm
                                                    providing the bulk of the coverage they have.   creased our site leads ten-fold.”
them, and we provide them with the informa-
                                                    Lisa Schomp says, “We believe in indepen-
tion."
                                                    dence from third party lead generators and      About the future of the industry, Lisa Schomp
                                                    auto brokers. We post our inventories on a      says, “Know that change is inevitable, and
Schomp has implemented other new and in-
                                                    couple of services like Cars.com and Auto-      don’t be afraid of it! Five years ago we had
novative marketing techniques to bring in
                                                    Trader, but we rely mainly on our own Web       no idea that digital marketing would account
new customers. They have done very little
                                                    site and treating our customers the way we      for so many new customers and sales. Also,
advertising over the last dozen years, and to-
                                                    would like to be treated. By using our own      don’t be afraid to ask for help when you need
day, they rely on a small presence in newspa-
                                                    site to pull in leads and treating customers    it.”
15
Christopher’s Dodge World: 138 Extra Sales in one Month
  CDodge.com Increases sales and profit by using the Web and CRM to change the way America buys cars

               hristopher’s Dodge World
               has become one of the largest
               dealerships in the country by
               working to constantly improve
               how it sells and serves its cus-
               tomers. It is quickly becoming
               known for how it is revolu-
tionizing the way cars are bought and sold in
America.

Like many dealers, Christopher’s Dodge
World noticed that more and more customers
were using the Internet to start their shopping
experience. Not only did it notice the trend,
Christopher's Dodge World rose to the chal-
lenge the Internet represents and are now
leading the way to success with their own on-
line buying service.

“Our goal is to make it quicker, easier and
less expensive for customers to get their next
vehicle. We feel that by putting the custom-
ers’ needs first, saving them time and giving
them what they want we will sell more cars,          “After we switched to BZResults.com we increased
increase gross and boost customer satisfac-
tion. And you know what, it’s working” said
                                                           our sales from 20 to 138 cars a month.”
Cliff Hall, general manager.                                              Chad Sterling, Internet director
In the year since building its online buying
service, www.CDodge.com has enabled it to
increase sales volume from 20-30 vehicles
                                                    THE BOTTOM LINE
per month to 138 sales last month. Custom-
ers who in the past may have used brokers           • Christopher’s Dodge World created a new online buying service and be-
(who would then sell the leads to the dealer-
                                                    came the No. 1 Dodge eCRM Dealer in the nation.
ship) now know that they can go directly to
the CDodge.com buying service. Chad Ster-
                                                    • Christopher’s Dodge World sold 138 extra cars in one month from its
                                                    online buying service.
ling, Internet director at Christopher’s Dodge
World says, “Customers love it because they
can build any car they want or view virtu-          • CDodge.com promotes all profit centers at the dealership.
ally unlimited new and pre-owned inventory
with just a couple clicks. They can also take       • At CDodge.com you can build and compare vehicles, take virtual test drives,
a virtual test drive with 360 degree tours,
                                                    get financed, evaluate a trade in, schedule appointments, buy parts , etc.
view product comparisons, get financing,
view performance vehicles, check for spe-
                                                    • Christopher’s Dodge is delivering on its mission to better serve the cus-
cials, download coupons, learn about the pre-
owned certification process and the one-hour
                                                    tomer.
vehicle purchase and even book a service ap-
pointment or schedule parts.”
                                                    • Their technology vendor provides search engine marketing, online ads, Web
                                                    and CRM tools, automated follow-up, reports and in-store training.
As a result www.CDodge.com has become
the most successful online Dodge dealer in                                                         experienced massive growth instantly. After
the world. Chad attributes the success to the     some pretty nice templated Web sites but our
                                                  customers wanted more and after hitting a pla-   one year we increased our online sales from
following: Dealer and management support,                                                          an average of 20 vehicles a month to 138 ve-
a great marketing strategy, the right Web site    teau, we realized we needed more. Although
                                                  we had a great Web site we did not get great     hicles last month. The reason for the increase
and CRM tools, tight processes and a great                                                         was partly due to a better Web site that gener-
team. “We’ve signed with outside training to      results, and we quickly learned we needed
                                                  more than a Web site. We hired a company         ated more leads but most of the increase was
make sure that our team is skilled and able to                                                     due to the digital marketing tools we now
execute the process 100 percent.”                 called BZresults.com to custom build our on-
                                                  line buying service, and they gave us all the    use. These include search engine marketing,
                                                  tools and training we needed to promote, man-    e-mail marketing, online ads, CRM tools, au-
The Right Technology: We began with                                                                tomated follow-up and reports.
                                                  age and measure all our customer activity. We
                                                                                                                                               16
Courtesy Chevrolet
     Becomes No. 1 BDC in U.S. by Selling 384 Extra Cars in One Month
                ourtesy Chevrolet’s Business
                Development Center has learned
                to leverage the marketing power
                of the Internet and as a result, it
                sold an additional 384 vehicles
                out of its BDC in one month
alone. The cornerstone of Courtesy’s BDC is
its digital marketing system that allows it to
generate incremental sales out of its BDC and
drives more than half of the phone traffic to the
dealership. The BDC staff has learned to use
the Web as an incredible marketing medium,
and as a result its using the system to increase
sales, F&I and service and parts business for a
lot less money than traditional advertising. As
a result, “Our cost per sale ranges from $125 to
$200, which is a lot less than traditional adver-
tising” said Scott Gruwell of Courtesy.

The system includes a high-end custom Web
site and a prospecting/CRM tool that auto-              “We increased our BDC sales from 40 to 384 cars a month.
mates most of the BDC’s contact activity. Gru-        The key to our strategy was our Web site, CRM system and our
well explains, “Our new Web site increased our             Internet marketing.”- Scott Gruwell, Courtesy Chevrolet
leads by more than 400 percent but it was only
one part of our new system. The system also in-
cludes the marketing tools to create traffic and       THE BOTTOM LINE
the CRM tool to manage our Internet, phone
and show room opportunities so we can turn            • Courtesy Chevrolet’s BDC helped sell 384 extra cars and generate $582k
                                                      in one month
leads into sales. After the first month we sold
40 units, then 75, then 150, 200 and last month
                                                      • Courtesy Chevrolet finished the year as the No. 2 Chevy dealer in the country
we sold 380.”

When asked to name the single most important          • Courtesy Chevrolet was named one of the Top 10 eCRM Dealers of the
factor in launching a successful BDC, Scott           Year
Gruwell, tells us, “You need to find and train
                                                      • Courtesy’s Web site and BDC took them from 40 sales to 384 sales after
the right people and give them the tools they         a two-year period.
need to do their job.” Scott has found that the
right people for the BDC are those with excel-        • Courtesy Chevrolet's Web site provider setup their BDC and provides
lent phone skills and a passion for customer          their training
satisfaction. He tells us that the right tools will
automate much of the follow-up process and            • Their cost per sale ranges from $125-$200 since installing their new system
provide the reports to manage and measure
results. He says, for example, “automation
enables our team to focus their energy on the                                                       "We conduct monthly
phone and they’re setting more appointments
                                                                                                     multi-media e-mail
as a result.” Scott will be the first to admit that
installing a successful BDC is not a simple task,                                                 campaigns that result in
but when the BDC helps take the gross profit
                                                                                                    25-50 sales a month."
from $84k per month to $582k per month, it’s
an effort that’s worth the investment.                                                                   Scott Gruwell

17
Tasca Auto Group
  Tasca Increases Profits and Reduces Turnover
                n today’s market, dealers are ei-
                                                       100
                ther thriving in a growth mode,
                or struggling to stay afloat.            80

                Whether you’re successfully             60
                adding franchises to your dealer
                                                        40
                group or tightening your belt in
                                                        20
                an effort to remain competitive,
nothing will make or break a dealership’s suc-          0
cess quite like people.                                           1st Qtr    2nd Qtr        3rd Qtr          4th Qtr

                                                                             Employee         Customer
                                                             Profitability                                        Turnover
                                                                             Satisfaction     Satisfaction
Tasca Automotive has grown from a small,
family owned single-point store to a multi-
franchise auto group operating out of four lo-      “We signed up with BZResults.com to implement our new digital
cations. It has grown substantially while main-
                                                    marketing and training strategy. As a result our turnover has de-
taining CSI scores that are among the highest in
                                                    creased and sales and profit have increased.” Bob Tasca III
the nation and customer loyalty above 83 per-
cent. Throughout the growth process, Tasca has
naturally needed to add people. What’s unique
is that the Tasca leadership team believes that       THE BOTTOM LINE
their most important asset is their people, and
as Bob Tasca III likes to say, “We owe it to our      • Tasca increased sales, profits and CSI by using the Web, CRM and train-
customers and ourselves to invest in the devel-       ing to improve the customer experience at its dealership.
opment of our team.”
                                                      • Tasca hired a company to create and implement a complete strategy to
                                                      recruit, hire and train its people in all areas of their business.
But how do you move beyond the typical new-
hire training? Tasca hired an outside training        • Tasca’s world class Customer Relationship Center generates an addi-
company to improve its strategy for recruit-          tional 80 sales a month.
ing, hiring and training its people. Bob Tasca
III says, “We’ve been able to manage growth,          • Tasca won Automotive News “Best Web site” award and has been named
increase profits and reduce turnover. We use a         among the top eCRM Dealers of the year two years in a row.
recruiting, hiring and training system to ensure
                                                      • Tasca’s customer loyalty rating is above 63 percent and their CSI is
we hire the right people for the job, baptize
                                                      among the nation’s highest.
them in the Tasca way of doing business and
give them the tools and skills they need to get       • Tasca Automotive invests in training its people because it's found that
off to a strong start. We build on that founda-       employee satisfaction drives customer satisfaction.
tion with weekly in-house sessions and monthly
training meetings with our consultant.” Here’s
                                                    munication.                                               ery one of our graduates is excited about their
an outline their 120 day New Hire Orientation:
                                                                                                              career, confident with the skills and process
                                                    Part 5 - Job Training: Detailed training regard-          needed to get results and eager to continue with
Part 1 - Welcome to the Tasca Family: Over-
                                                    ing job-specific activities, processes and pro-            their personal and professional development.
view of the dealership’s history, vision, mission
                                                    cedures.                                                  Now that everyone is on the same page and our
and principles.
                                                                                                              processes are generating great results, I could
                                                    Part 6 - Mentorship: Every new team member                not imagine not spending the time and money
Part 2 - Welcome to the Dealership: Introduce
                                                    is assigned to a mentor who is responsible for            to train our people properly.”
new hire to each department and clarify his or
                                                    guiding him or her through the first 120 days.             Below is a summary of some of Tasca Univer-
her role within the entire ownership experi-
                                                                                                              sity’s training modules:
ence.
                                                    Part 7 - Certification: The new team member                   Sales process
                                                    meets with manager to verify proficiency with                 Management and coaching
Part 3 - Dealership Tour: Working tour of ev-
                                                    each job skill as defined in the certification                 Phones strategy and process
ery department.
                                                    book.                                                        Internet strategy and process
                                                                                                                 Customer relationship center
Part 4 - Department Internship: Work briefly
                                                    According to Tasca, “Employee satisfaction                   Sold and unsold follow up
in each department to better understand cus-
                                                    drives customer satisfaction and loyalty. There-             Service contact and follow up
tomer experience and interdepartmental com-
                                                    fore, the goal of orientation is to see that ev-             Lease and retail renewals
                                                                                                                                                           18
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                                                                                                                                   BrianTracy
   sales and training solution




                                            Planning Your Questions
                       Selling         consists       Here are some great questions for gap           Good questions that grab the prospect’s
                       of finding the gap              analysis.                                       attention will start him or her visualizing and
                       between where the                                                              imagining an ideal future state, exactly the
                       customer is and where          The first question is an application of the      state that your product or service is meant
                       he or she could be with        “magic-wand technique.” Imagine that            to achieve.
                       what you sell. Gap             you have a magic wand that you can wave
analysis is based on asking good questions —          over the prospect’s situation and you ask       A final key to effective selling through gap
questions focused on discovering problems             this question: “Mr. or Ms. Prospect, if this    analysis, is to share some of the experiences
that might be troubling the prospect. There is        situation were absolutely perfect in every      of people who have previously purchased
a direct correlation between the use of good          respect, what would it look like?” Then         your product or service. Use third-party
questioning techniques and sales success.             remain silent. When the prospect begins         references, testimonials and anecdotes.
The more and better questions you ask                 to describe that perfect situation, you’ll      Say something like, “I have a very good
aimed at finding a problem or uncovering a             uncover the gaps you can fill to create his or   customer who had a similar situation to
dissatisfaction, the more interest the prospect       her ideal future. When you explain how your     yours not long ago.” Then go on to explain
will have and the more sales you will make.           product or service can bridge those gaps, you   how your customer was able to rectify that
The person who asks questions has control.            will greatly enhance your chances of making     situation in a cost-effective way by accepting
                                                      a sale.                                         your recommendation.
Good sales people always plan the wording
of their questions, rewriting them and                A great set of questions begins with the        To be truly persuasive in the selling process,
practicing them before they get face-to-face          words what if? For example, “What if            use gap analysis. Instead of trying to
with a prospect. Poor sales people, on the            we could achieve this particular result for     overwhelm your prospects with reasons and
other hand, make up their questions as they           you? What effect would that have on your        rationales for doing what you want them
go along.                                             situation?”                                     to do, ask questions aimed at uncovering
                                                                                                      their problems, needs and dissatisfactions.
                                                                                                      Listen carefully to the answers they give
                                                                                                      you, and ask additional questions to help
                                                                                                      them expand on their situation. Take a few
                                                                                                      moments to feed their answers back to them,
                                                                                                      to show that you were really listening and
                   Keep your customers                                                                that you really appreciate their needs. Then
                                                                                                      position yourself to influence and persuade
                   for just pennies a day.                                                            your prospects by showing them how your
                                                                                                      product or service just happens to be the
                                                                                                      ideal way to solve their problem, satisfy their
                                                                                                      need, or achieve their goal.

                                                                                                      Here are two things you can do immediately
                                                                                                      to put these ideas into action.
                   Loyalty DriverTM by            .
                   is email marketing made                                                            First, take time to write out your questions
                                                                                                      word for word and practice them in advance
                   easy. Your own customized
                                                                                                      before meeting with the customer. They are
                   e-newsletter with profes-                                                          too important to be left to chance.
                   sionally written content
                   and sophisticated report-                                                          Second, continually ask “What if” questions
                                                                                                      to help open up your customer’s mind to the
                   ing including our unique
                                                                                                      possibilities and benefits of what you sell.
                   buy signal allowing you to                                                         Listen carefully to every answer.
                   know when your customer
                   is ready to buy.



                             CONTACT US TODAY                                                         Brian Tracy is the chairman and CEO
                          at 866-964-NEWS (6397) ext.214                                              of Brian Tracy International. He can be
                       or email us at loyaltydriver@imninc.com                                        contacted at 866.300.9881, or by e-mail at
                                                                                                      btracy@autosuccess.biz.


  20
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           fixed operations solution
                                                                                                                      GreggTompkins

                                                         Seven Keys to Warranty
                                                          Administration Success
                       The automaker is your      need to be looked at weekly and reviewed         often look like a mini-junkyard in your parts
                       biggest customer in the    in-depth on a monthly basis.                     department. The more disorganized it is, the
                       service department.                                                         less likely you’ll be able to find the parts
                       They come in as            Open RO reports                                  you need when the manufacturer requests
                       different    customers     Just like warranty schedules, open RO            them back. The most common and simplest
                       throughout the day         reports can tell you what’s going on with        system is to use the tried and true 10-bin
under the guise of warranty repairs, but when     your warranty claims. You wouldn’t leave         system.
it comes to dollars, the automaker pays out       cash lying around on a desk without
more than any other customer to your service      depositing it, so why do it with warranty        Good warranty administration practices
department every month.                           claim dollars? This report will isolate unpaid   are an essential component of a well-run
                                                  warranty claims that have not yet made it to     service department and profitability. Take a
To collect that money, it takes more effort       the warranty schedule.                           look at how you measure up and make the
than just swiping a credit card or taking cash.                                                    appropriate changes if you need them. It can
That’s where having your warranty processes       Manufacturer’s warranty expense reports          mean money in your pocket.
on a good foundation will pay off.                This is an important document for you to
                                                  review every month. The reports can give you
A good warranty administrator                     valuable insight into how well you’re minding
Dealerships need a strong, knowledgeable          the manufacturer’s money, and that’s what
warranty administrator that can be the            matters if you want to avoid an audit.
go-to person. This is the person that
will have very detailed knowledge of              Parts retention and scrapping system.            Gregg Tompkins is the president and a
warranty administration policies and can          The most overlooked component of many            consultant at Dealer Insight. He can be
usually handle answering most warranty            dealerships’ warranty administration systems     contacted at 866.403.7973, or by e-mail at
administration questions, as well as be           is the warranty parts retention system. It can   gtompkins@autosuccess.biz.
the hands-on person to deal with warranty
claims once the repair is completed.

A good service manager
A good, strong, effective and honest service
manager plays a key role in your warranty
administration success. He or she can keep
everyone focused on following the policies
                                                                    1-888-Get-A-Car
outlined by the manufacturer and keep
warranty expense in line so the threat of an
                                                                           &
audit is minimized and you can keep your
hard-earned money.

Proper documentation
                                                                    www.getacar.com
Proper documentation will help avoid many
problems. Those problems can include: not                           Only One Dealer Per Market
claiming all the warranty dollars you’re due,
claims being improperly coded, claims being
                                                               Call Now for Exclusive Rights Details
held up longer for payment and claims being
debited in an audit.                                           View TV Spots at www.getacar.com/dealers.htm
Properly documenting warranty claims must                                      Programs Include
be part of the job description for service
advisors, technicians, management and parts                        Leads, TV Spots, Lenders, Advertising Assistance,
personnel.                                                           Training for your Special Finance Department,
                                                                          Bankruptcy Mailer Software
Use and maintenance of schedules
Warranty receivable schedules can be a
good barometer of how effective your                            STOP Paying per Lead! One Flat Rate For
claims payment processes are. It takes
constant overview and maintenance to
                                                                              UNLIMITED LEADS!
make warranty receivable schedules useful                                                                    Get A Car, Inc.
in evaluating how things are flowing.
                                                                                                          Joe Perot - President
Payments need to be applied immediately,
and any adjustments need to be identified                                                                email: perot@getacar.com
and corrected as soon as possible. Schedules                       800.790.1212                            www.getacar.com


january 2006
                                                                                                                                        21
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                                                                                                                                DavidKain
                       marketing solution


                                                                  Take Your Internet
                                                              Sales to the Next Level
                      Answer the following       Lead source percentage achievable goals:          to think you can go beyond and become an
                      question and outline       • Dealer Web site generated leads = 40            industry leader. Whatever level you aim
                      your next level:           percent of total leads                            for, be sure to keep it in a state of flux so
                                                 • Third party generated leads = 50 percent        you can achieve and then aim even higher.
                      1. What level are you      of total leads (for Ford and GM dealers           Your dealership Internet team must feel
                      on today?                  these include FordDirect and GMBuyPower           the next level is attainable or they could
                                                 leads)                                            give up before they even start the journey.
In order to know where you want to go. you       • Manufacturer generated leads = 10 percent       By including your Internet team in the
need to know where you are today. The            of total leads                                    discussion to determine your next level goals
Internet is very metrics based, which makes                                                        you will have their buy-in and commitment
it the perfect dealership tool. Dealers are      Number of leads         you    connect     with   to do what it takes to achieve them.
accustomed to measuring every aspect of          achievable goal:
their business from their hours per R.O.         • Connect rate = 55 percent of total leads.       3. Do you have the foundation in place to
to their obsolete parts inventory to their       Meaning the number from whom you actually         take it to the next level?
reconditioning charges on used vehicles and      obtained a legitimate e-mail response or with
their aged receivables. All of these variables   whom had a telephone conversation.                There are several common elements in place
mix into their goal of achieving a profit, and                                                      when I see dealerships who truly have taken
they monitor these and many other metrics        Number of prospects who              set    an    it to the next level. I’ve outlined them below
each and every month.                            appointment achievable goal:                      for you to gauge your own foundation.
                                                 • Appointment rate = 40 percent of total
The following metrics need to be defined          leads                                             • Dealership commitment – Is the dealer
each month to determine your performance                                                           principal willing to commit the time, energy
level.                                           Number of prospects who keep their                and resources to grow to the next level?
a. What is the number of Internet leads          appointment achievable goal:
received by e-mail and by phone?                 • Kept appointment rate = 30 percent of total     Basic resources:
b. What are your lead sources? Dealer Web        leads                                             • Budget for leads, technology and
site, third parties, online classified?                                                             compensation
c. How many leads you are able to connect        Percentage of Kept Appointment Prospect           • Training for dealership management and
with and have a real dialogue?                   who Purchase Achievable Goal:                     Internet/BDC personnel
d. How many customers set appointments?          • Kept appointments who purchase rate = 50        • People – behind every leading Internet
e. How many customers kept appointments?         percent                                           operation there are key people who manage
f. How many vehicles did you sell? This                                                            through adversity to stay focused and on
determines your close rate                       Close rate percentage of total leads              target. Hire and train the right people and
g. What is your average gross per sale?          achievable goal:                                  you are almost there.
h. What is your total gross?                     • Close Rate = 15 percent of total leads          • Leads – right sizing your leads to your
i. What did your leads cost you? Web site                                                          personnel and technology is essential to
costs, third party costs, Online classified       Gross average on Internet generated sales         meeting your goals
costs, technology costs, etc.?                   achievable goal:                                  • Technology – an effective Web site is
j. What is your return on investment?            • Average Internet gross = average showroom       crucial in meeting your dealer Web site lead
                                                 gross                                             source goal. Managing growth requires
Once you have these metrics defined you                                                             a technologically advanced CRM or lead
can pretty well determine your operating         Average cost per vehicle sold via the             management tool
level as long as you have some benchmarks        Internet achievable goal:
to compare yourself to. Over the last several    • Average cost per Internet vehicle sold =        By answering these questions you can easily
years, I have learned the difference between     $200                                              predict whether your dealership is in line
poor, average, good and great performance                                                          to take it to the next level. With so many
and want to offer the following achievable       2. What do you consider the next level            people using the Internet to start the buying
goals for your use in comparing your own         compared with your current performance?           process you don’t really have any choice, so
Internet performance.                                                                              outline the steps and start aiming for the next
                                                 The answer you provide for this question          level today.
General Internet achievable goals                is perhaps the most important one for your
These goals are based on the actual results      dealership in attaining the next level. If
of dealerships KainAutomotive.com has            your performance is below the achievable
                                                                                                   David Kain is the automotive Internet
trained and consulted with over the past         goals outlined above the next level for your      training specialist at Kain Automotive Inc.
three years. The goals can and should vary       dealership could be achieved by meeting           He can be contacted at 800.385.0095, or
by brand, so make sure you focus on what is      those outlined above. If you are already at       by e-mail at dkain@autosuccess.biz, or
attainable given your individual brand.          the levels described above then it is realistic   visit www.kainautomotive.com.


  22
sts    fos    ls   ms      sf   fis
                                                                               ChrisHanson
        sales and training solution



                                                Do You Have
                                             a Daily Schedule
                           It doesn’t matter if you   to do things to fully maximize your daily
                           sell 10 cars a month or    schedule. By this, I mean each store has
                           25 cars, we all have       different traffic trends, so ask your manager
                           lots of time. If fact,     or start paying attention. When does it seem
                           when we are really         most ups come into the dealership? When
     busy, our daily schedule really comes in         do most phone ups call in? When is the best
     handy. Just like we talked about in the last     time to get hold of your customers?
     article, we need to set goals and then have
     a plan for how we are going to accomplish        Start by creating and following a daily
     those goals. A daily schedule will help you      schedule. Here’s an example:
     accomplish them.
                                                       1. Listen to a Training CD on the way to
     One of the first things to consider is your            work.
     continuing education. Become a student of
     the business. Start the day out by listening      2. Get to work a little early and watch a
     to a training CD on the way to work. Don’t           training tape.
     have a long enough drive to work? No
     problem. Do it when you get to work. Go           3. Plan your day.
     to the meeting room and listen or better yet
     watch a training tape. If you want to take        4. 9 to 9:30 a.m. – Walk the inventory
     things up a notch, how about listening to a
     CD on the way to work and then sit down           5. 9:30 to noon, beat the phones to
     and watch a training tape when you get to             death! Watch for ups.
     work? Then if you want to really take your
     career to the next level, find a partner at        6. Five Appointments! Go for five
     work that will commit to role-play with you           every day. You need to make enough
     every day and watch your sales go through             contacts by phone each day to
     the roof! How many months do sports teams             generate five appointments.
     practice before they play their first game? “I
     want to think about it.” What are you going       7. 1 to 3 p.m. – Come back to your
     to say? “Payments are too high.” What are             office and hit the phones again.
     you going to say?                                     Watch for ups.

     Right after you get done with your training,      8. 4 to 5:30 p.m. – Watch for ups.
     it’s time to head out on the lot. I don’t care
     if you have 100 cars or 1,000 cars on your        9. 5:30 to 6 p.m. – Set up the day for
     lot, you need to know what your inventory             tomorrow
     is. Walk the lot and take note where cars
     are located, colors and equipment and keep        10. Do this everyday.
     a look out for new trades and new program
     cars. You must know your inventory, trust        Sit down today, create your daily schedule
     me. Your career depends on it. Start walking     and put your career on the fast track. Make
     the lot and see what happens. You will be        use of your time while you’re there by
     more professional and you will know what         having direction and a purpose for being
     alternatives to offer your customer and, in      there beyond your next sale. If you would
     turn, you will sell more cars. Start today.      like more details on developing your
                                                      schedule please feel free to e-mail me.
     From here you need to go over yesterday and
     see what you need to follow through with
                                                      Chris Hanson with Hibbing Chrysler can be
     and also plan your day. Now you need to          contacted at 800.901.2862, or by
     really figure out the best times at your store    e-mail at chanson@autosuccess.biz.



24
I don’t believe in Santa Claus, but I’m not going to sue somebody for singing a Ho-Ho-Ho song in
December. I don’t agree with Darwin, but I didn’t go out and hire a lawyer when my high school teacher
taught his theory of evolution.

Life, liberty or your pursuit of happiness will not be endangered because someone says a 30-second
prayer before a football game.

So what’s the big deal? It’s not like somebody is up there reading the entire book of Acts. They’re just
talking to a God they believe in and asking him to grant safety to the players on the Þeld and the fans
going home from the game.

But it’s a Christian prayer, some will argue.

Yes, and this is the United States of America, a country founded on Christian principles. According to our
very own phone book, Christian churches outnumber all others better than 200-to-1. So what would you
expect-somebody chanting Hare Krishna?

If I went to a football game in Jerusalem, I would expect to hear a Jewish prayer.

If I went to a soccer game in Baghdad, I would expect to hear a Muslim prayer.

If I went to a ping pong match in China, I would expect to hear someone pray to Buddha.

And I wouldn’t be offended. It wouldn’t bother me one bit. When in Rome.

But what about the atheists? is another argument.

What about them? Nobody is asking them to be baptized. We’re not going to pass the collection plate.
Just humor us for 30 seconds. If that’s asking too much, bring a Walkman or a pair of ear plugs. Go to the
bathroom. Visit the concession stand. Call your lawyer!

Unfortunately, one or two will make that call. One or two will tell thousands what they can and cannot do.
I don’t think a short prayer at a football game is going to shake the world’s foundations.

Christians are just sick and tired of turning the other cheek while our courts strip us of all our rights. Our
parents and grandparents taught us to pray before eating; to pray before we go to sleep.

Our Bible tells us to pray without ceasing. Now a handful of people and their lawyers are telling us to
cease praying.

The silent majority has been silent too long. It’s time we let that one or two who scream loud enough to be
heard that the vast majority don’t care what they want. It is time the majority rules! It’s time we tell them,
you don’t have to pray; you don’t have to say the pledge of allegiance; you don’t have to believe in God
or attend services that honor Him. That is your right, and we will honor your right. But by golly, you are no
longer going to take our rights away. We are Þghting back ... and we WILL WIN!

God bless us one and all ... especially those who denounce Him. God bless America, despite all her
faults. She is still the greatest nation of all.

God bless our service men who are Þghting to protect our right to pray and worship God.

May 2006 be the year the silent majority is heard and we put God back as the foundation of our families
and institutions. Keep looking up.

Anonymous Author
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4
AutoSuccess Must-see Companies NADA 2006, page 4

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AutoSuccess Must-see Companies NADA 2006, page 4

  • 1. AutoSuccess Must-see Companies NADA 2006, page 4 a division of Systems Marketing, Inc. January 2006
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  • 6. UST-SEE COMPANI O R ADA 200 L A N D O F L O R I D A American Auto Exchange: Delivering innovative solutions that streamline and maximize dealers’ sales operations to include: inventory optimization, Þnance menu, reporting, and dealer desking tools. Auto Dealer TrafÞc, Inc. is the automotive search engine marketing experts. ADT’s focus on SEO, Paid Search, and analytics has made it the premier company in the automotive arena. ADT’s proprietary technology analyzes your search marketing efforts easily. Count on us to give your marketing dollars a ROI! Established in 1999 Auto Internet Marketing has been generating both New Vehicle and Finance Leads of superior quality and content since the beginning of the Internet Revolution. Our unique marketing platform promotes FREE exposure for our Dealers, resulting in FREE leads every month! We look forward to speaking with you soon! BZ Results is a digital marketing & consulting company currently working with 8 of the top 10 eCRM Dealers of the year. BZ offers CRM, Web marketing, Search Engine & Email marketing, Websites, New & Pre-Owned, F&I, Service, Parts and specializes in BDC’s. BZ set up the largest BDC in the world which sold 384 vehicles in one month. They also work with the #1 Pre-Owned eDealer, #1 Honda eDealer, #1 Chevy eDealer and the #1 eDealer Group in the world. The Cobalt Group and Dealix Corporation specialize in helping dealers and auto manufacturers maximize every proÞt center by helping them: meet, sell to, and retain customers for repeat business in the most efÞcient manner possible by providing a comprehensive suite of services, including the highest quality Internet sales leads and marketing services, cutting edge technology, and the expertise of automotive industry veterans. HomeNet, Inc. is a technology provider offering online vehicle inventory solutions to help automotive dealers manage their vehicle inventory and increase online sales. HomeNet’s Inventory Online (IOL) system allows control of the acquisition, editing and distribution of vehicle data. IOL interfaces with all major DMS and broadcasts accurate vehicle inventory information and photos across the Web. Impact Direct develops innovative sited sales and direct marketing campaigns that light up your phones, Þll up your showroom and deliver vehicles. All with out taking a percentage of your gross proÞt. InterActive Financial Marketing Group offers new and used car dealers lead generation, direct mail marketing, CRM, advertising and Þnancing by leveraging it’s brands; Carloan.com, Autoloan.com, 1.800.CarLoan and IFMG Direct. J&L Marketing’s solid reputation as the industry leader for direct marketing campaigns is based on the strong relationships we form, focused marketing, and the increased proÞts we provide for our dealers. We take great pride in our expertise to build the best campaigns for your individual needs. This remarkable success that J&L provides for over a thousand dealers a year can be yours, too. We provide a fully integrated web-based software solution for F&I, leasing, special Þnance, BDC, inventory management and sales mangement reports. We also provide direct mail, Internet leads, credit hotlines and website hosting. TimeHighway.com is the premier, real-time, online service appointment scheduling solution. It will increase customer satisfaction and retention, service department efÞciency and revenue, load balance service bays and drive trafÞc to the dealer’s website. Are your customers returning to your dealership for scheduled maintenance? If not, let us help!!! Ultimate Warranty provides leading-edge service contracts and ancillary F&I products. More than 8,000 dealers have recognized the advantages and have beneÞted from selling Ultimate Warranty products. Stop by the booth, and Ultimate Warranty can show you how they are making a great thing even better in 2006.
  • 8. 8 Congratulations eCRM Dealers of the Year PatrickLuck INSID Planning Your Questions Seven Keys to Warranty Administration Success Take Your Internet Sales to the Next Level Do You Have a Daily Schedule 20 21 22 24 BrianTracy GreggTompkins DavidKain ChrisHanson The Rick Case Automotive Group: More Than Just Car Dealerships 26 Dealers Recognized for Invaluable Community Contributions and Industry Innovations PatrickLuck How Much Does a ‘Token’ Discount Affect Your Paycheck 30 JimAdams Create an Enlightened Environment 32 TomGegax The Three Sources of Trust 34 DougHall Achieving an Optimal Internet Marketing Mix 36 MichaelRosenberg Words Are Cheap 38 MarkTewart The Greatest Business in the World 39 JoshWeaver Back to Basics 40 AnthonyHall to Your Service Department 42 How to Bring More Customers KarenDillon Effective Credit Application 44 TonyDupaquier NADA 2006 Turning a Phone Up Into an Appointment 45 JeffMorrill Stop by and see Improve Your Body Language Skills 46 PattiWood us at the NADA 2006 Convention A New Commitment I Give to ... Me 48 MichaelYork at booth #3816 Some Best Practices for 2006 50 ScottJoseph 2 Chronicles 14:11 “Lord, there is no one like you to help.” 3411 Pinnacle Gardens Drive Louisville, Kentucky 40245 Toll Free: 877.818.6620 Facsimile: 502.588.3170 Isaiah 55:12 Patrick Luck, Editor & Publisher • pluck01@autosuccess.biz “For ye shall go out with joy, Susan Givens, Vice President • sgivens02@autosuccess.biz and be led forth with peace: the Courtney Paris, Sales-improvement Strategist mountains and the hills shall break • chill-paris04@autosuccess.biz Brian Ankney, Sales-improvement Strategist forth before you into singing, and • brian01@autosuccess.biz all the trees of the field shall clap God Bless America Thomas Williams, Creative Director • twilliams03@autosuccess.biz their hands.” AutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccess.biz. Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content, and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. Always confer with legal counsel before implementing changes in procedures. © All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3411 Pinnacle Gardens Drive, Louisville, Kentucky 40245.
  • 9.
  • 10. CONGRATULATIONS eCRM Dealers of the Year written by: Patrick Luck The benchmark for con- sites as those that generate measurable results. Process: Converting leads into sales. Keys sideration for winning Dealers tell us that a Web site will get results to successful process include e-mail and phone this year’s award is re- if it is simple, easy to use, quick to load and response, setting appointments and following sults as measured by has highly engaging content that can work fast up before and after the sale. volume of Internet sales even on a low-speed connection. Great Web and by how well the sites offer cool features like inventory, online People: Our top eCRM Dealers share how to dealers use the Internet auctions, virtual test drives, online credit ap- find and keep the right people who are passion- and CRM to promote all of their profit centers: new, used, F&I, service, parts, etc. CONGRATULATIONS eCRM Dealers of the Year Our goal was to seek out the dealers who are HerbChambers.com the best at using this marketing medium to generate huge increases in profit for their deal- RedMcCombs.com erships while also improving CSI and loyalty. We considered the number of rooftops, the size DaveSmithMotors.com of the dealerships or dealer groups, their mar- kets, the brands they carry and their Internet HouseofCourtesy.com profits as a percentage of their total profits. In researching the contenders, we learned a lot ParagonCars.com about what determines a dealer’s success with using the Web to generate increased sales and CDodge.com service profits. In this article we outline some of the commonalities and some effective best Sheehy.com practices that have propelled the winners to the forefront of Web marketing and CRM, en- DickHannah.com abling them to sell 100 to 800 extra units every month. Schomp.com CRM Vision and Strategy: For the award Tasca.com winners, the vision began with a desire to at- tract more customers for less cost compared plications, online trade appraisals, online parts ate about what they do and ways to combat the with mass advertising. These dealers are lead- and accessories and more. Great Web sites do auto industry’s biggest challenge – turnover. ing the way in a marketing revolution initiated much more than post information online, they by customers who are using the Web to shop compel the customers to pick up the phone, Pricing: To increase profits pricing is critical for vehicles rather than the paper, TV or radio. submit a lead or drive straight to your show- to a dealership's success and profitability. Some Smart dealers are shifting some of their adver- room. dealers sell a lot of cars online but they don’t tising to market where customers are shopping, make money because their pricing strategy is and the returns are much higher and easier to Marketing: How can you drive traffic to focused on selling price rather than building measure. Some common denominators of the your Web site and dealership? In today’s super value and asking for a fair profit. winning dealers’ strategy and vision are: tech- competitive market, it’s not as simple as build- nology, marketing, process, people, pricing ing a great Web site and selling a ton of cars; Measurement: Tracking your performance and measurement. you need to let your customers know how to results. Top dealers agree: The best part about find you. The dealers profiled have some great Internet marketing and CRM is that everything Great Web sites: Appearance is subjective, methods for increasing traffic without having is measurable. and when it comes to design, what appeals to to spend more money on advertising. These one person can repel another, which is why we ideas include e-mail marketing, search engine Case Studies: In this issue we profile the selected our Top eCRM Dealers based on re- marketing, banners and more. winners to show how they use the Web and sults. This is why we define the Greatest Web CRM to improve profits. 8
  • 11. Starting a Revolution www.HerbChambers.com Changes the Way New England Buys Cars erb Chambers is New England’s largest automotive dealer. It is the eCRM Dealer of the Year and it has been named Dealer of the Year by Ward’s. With all this success under its belt, it's well on its way to accomplishing its mission of changing the way the world buys cars. Like many dealers, Herb Chambers noticed www.HerbChambers.com is a new buying Customers can take a free virtual test drive on service that won a the Golden Web Award. www.HerbChambers.com that more and more customers were using the Internet to start the shopping process when it was time to get their next vehicle. Herb Chambers set up a regional buying service to make it easier However, unlike many other dealers, Herb for its customers to buy a car online. The new state-of-the-art Web Chambers not only noticed the trend, it set up site won a Golden Web Award. the most successful regional buying service in the world. This new buying service, www.herbchambers.com, is revolutionizing the way people buy cars. THE BOTTOM LINE With 80 percent of today's customers shopping • Most customers use the Internet at some point in the buying process. online, Herb Chambers found that customers were using the Internet because they were • Customers turn to the Web in search of a way to make the process easier. looking for a faster, easier and friendlier way to inquire about and even purchase a vehicle • Herb Chambers created a new regional buying service for its customers. online. So, that’s what Herb Chambers works to deliver; a fast, easy, friendly way to give the customers what they need to pick out and • Herb Chambers sold thousands of vehicles online last year. buy a car. • Herb Chambers was named a 2005 eCRM Dealer of the Year. Once they found the right technology and training provider, www.HerbChambers.com began to leverage its 25 dealerships and • HerbChambers.com sells 600-700 extra cars a month. virtually unlimited pre-owned inventory to give customers everything they’re looking result, the system drives more foot, phone and for with just a couple clicks. Once they’ve Internet traffic and automates e-mail activity selected the make and model they’re interested so the team has more time to use the phone in, they can take a virtual test drive, run and sell cars. Herb Chambers has a dedicated product comparisons, get a price and payment, team of specialists who are trained to make check for specials, download coupons, learn their customers’ online shopping experience a about the retailers’ three-day money back pure pleasure. The customer-friendly process guarantee and 30-day exchange policy, sign gives the customers all the information they up for eVIP membership and even book a need to make an informed decision. As a service appointment or schedule parts. Herb result, www.HerbChambers.com has sold Chambers' new system includes more than just thousands of vehicles a year to make it one a custom Web site, it's a complete marketing of the top eCRM Dealers of the Year and the system with prospect management capabilities largest retailer in New England. Herb Chambers is the largest and a suite of multi-media Buzzmails. As a automotive retailer in New England. 9
  • 12. RED McCOMBS SELLS 500 ADDITIONAL CARS A MONTH! Dealership Increases sales by using the Web and CRM to improve its business ot long ago Red McCombs was selling about 40 vehicles a month on the Internet, and today it is selling an additional 500 vehicles a month. In this article, it identifies the top mis- takes dealers make with the Web and CRM that cost time and money. THE TOP MISTAKES DEALERS MAKE WITH THE WEB AND CRM: 1. Dealers don’t generate enough leads from their own Web sites so they have to buy most of their leads. 2. Dealers fail to attract prospects to their Web sites. Web sites without traffic don’t sell cars. 3. Most dealers don’t appear on top of all search engines and they don’t conduct ongo- "We were selling approximately 40 vehicles a month on the ing e-mail campaigns. Internet, and today we are selling an additional 500 vehi- 4. Many dealers’ Web sites don’t generate cles a month." Rad Weaver - Red McCombs leads because they convert a small percent of visitors into leads. 5. Most dealers don’t have the automated THE BOTTOM LINE tools to update their sites so they waste a lot of time playing with their tools rather than • Since implementing its new Web site and CRM tool, Red McCombs is selling cars. selling an additional 500 cars a month. 6. Dealers assume they only need a Web site • With 80 percent of today's buyers shopping online, they adjusted their and CRM tool so they don’t have all the tools advertising to reach them. and training they need to succeed. 7. Some dealers hire the wrong people, and • Red McCombs has increased gross profit from $60k a month to more they usually get the wrong results. They don’t than $750k per month while increasing CSI and customer loyalty. have the right number of people for the vol- • Red McCombs increased its closing ratio from 3 percent to 19 percent ume of leads. by automating much of its follow-up. 8. Many dealers don’t have a clearly defined process that is proven to work. • Red McCombs uses e-mail marketing campaigns and search engine 9. Most dealers don’t get the training they placement to increase sales and lower costs. need to succeed and avoid costly mistakes. 10. Some dealers fail to automate follow up, • The cost per sale at RedMcCombs.com is below $200 per vehicle sold. which hurts closing ratio and sales. 11. Some dealers don’t have a pricing phi- Most dealers think they will get results with campaigns, a CRM tool that automates fol- losophy so their Internet department sells only a great Web site, and that’s not true. low-up and the training to tie everything to- price rather than value, and their gross profit However, a great Web site is a critical compo- gether. The system helps us market the site, suffers. nent. Rad Weaver explains: “Initially we had update the site, generate leads and even au- 12. Many dealers and managers don’t mea- Web sites built by our DMS provider and the tomatically respond and follow up with the sure the department’s results and metrics so manufacturer but they hardly produced any leads before and after the prospect buys a car. they don’t know how to improve the busi- sales. So we hired another company, BZRe- We've learned that it takes more than a Web ness. sults, who provided us with Web sites, search site and a CRM tool to sell 500 extra cars a engine marketing, custom multi-media e-mail month online." 10
  • 13. Dave Smith Motors Dave Smith Motors Increases Sales and Profit ave Smith Motors sells 400 In- ternet-lead vehicles a month with “We designed our own technology created in-house – and sells about $600,000 a fully customized month in accessories – from a Internet and CRM single-point, multi-line dealer- interface system that ship in a county of just 14,000 people. But for helps manage the Ken Smith, president of this Kellogg ID deal- whole Internet market- ership, size doesn’t matter. His aggressiveness ing and sales process.” and creative mind has helped the dealership he Ken Smith took over from his father grow to a $250 mil- lion business. Dave Smith Motors' system also has a CRM THE BOTTOM LINE tool to help track leads. It requires site visitors to provide extensive information before they • Dave Smith Motors developed its own technology to help sell more than 100 can submit the request, which helps get bet- extra cars a month. ter-quality leads. Lead Rocket time and date stamps the leads, and then turns them over • Their Web site helps them sell more than $600,000 a month in accessories to the Internet team manager who distributes them among the 25 dedicated Internet sales as- • Their system includes a CRM tool to capture information and stay in contact sociates. Overflow leads go to the other sales with the customer associates in the main showroom. • Their Web site and marketing strategy help draw customers from as far away as Alaska, California and Colorado In the showroom, there is a computer on every sales person’s desk and more than 200 comput- • Dave Smith Motors has used the Internet and CRM to help grow its operation ers in the store. to a $250 million business • The dealership has a team of dedicated internet sales associates to handle all The system is very simple: Customers e-mail inbound leads leads, and the dedicated Internet sales associ- ates e-mail them back. In real-time, sales asso- sociates must maintain a minimum of 95 per- came about around 1992 we decided we want- ciates can check results right on their comput- cent customer satisfaction score. Should they ed to be the dealer in the Internet field. Shortly ers – no more running to the sales manager’s fall behind, they’re put on a 90-day proba- after we got started, we got into a dispute with office to look at the big board. Monthly sales tion. Expecting high scores means taking care the dealers in Montana and Washington that contests are also available for viewing through of the customer. As an intranet system, Lead tried to boycott our dealership. We won that Lead Rocket, so associates and management Rocket lets anyone within the dealership send dispute. These dealers were afraid of the In- can track on a per-hour basis where everyone electronic messages throughout the store. The ternet and they thought we would dominate is at any given time. Ken Smith gives an ex- system features in-house classified ads, lists the market. At the time we started, we weren’t ample, “This way we all know where we’re all accessory prices and phone numbers for all doing much Internet business, though, and we headed and what we have to do to meet contest employees. weren’t sure where it would take us. But we did objectives. The system also reminds associates know that if we could be first into it and could of call-back times, and it can be set up so re- When the company first got started with the keep updating our Internet sites and keep on minders pop up on the computer screen or call Internet and CRM, its approach was to sell at progressing with it, we might succeed. That’s the associate’s cell phone or pager. So if John price lower than MSRP-plus, so it started its why we developed our own system, because at Doe calls and says, ‘Call me tomorrow at 2:30 own pricing system. The companies had about that time there weren’t any lead-generating/fol- and I’ll buy that truck,’ Lead Rocket pages the 10 computer programmers at one time punching low-up systems available on the market. I then associate and reminds him, ‘It’s 2:15 and you numbers to automate pricing to give customers put in a full-out press on developing a Web site said you’d call John Doe back at 2:30, so make an immediate, automated price. They decided and then started developing our Lead Rocket. the call and get the sale.’” that they wanted to be ahead of the competition Today it’s a completely different system than – ahead of the market technologically as long what we’d originally developed.” The system also helps track CSI. All sales as- as they could. Ken says, “When the Internet 11
  • 14. Paragon Honda/Acura Sells 214 Extra Cars Online ParagonCars.com Helps Dealership Reach No. 1 in New Car Volume aragon Honda has generated more than 214 additional sales a month by changing its mar- keting and sales strategy. “We adjusted our marketing strategy to target customers on the Internet since nearly 90 period of our buyers begin their shopping online. More of our customers look to the Web than TV, radio or print when re- searching their next car purchase, and we want to be where the majority of our customers are,” Brian Benstock from Paragon Honda said. The Results Within four months of launching its new mar- keting system, Paragon not only established a dominant presence on the Web, it also set up a complete customer relationship center in "Every prospect who calls or visits our dealership is offered a ‘free virtual the dealership to handle all of the Internet and test drive’ on the vehicle they’re interested in. As a result, we get the ma- jority of our customers' e-mail addresses whether they call, click, or come phone leads the system was generating. As a into our dealership.”- Brian Benstock, Paragon Honda and Acura result, it sold an extra 106 vehicles the first month the system was up and running and it increased the closing ratio from 7 percent up to THE BOTTOM LINE 25 percent. Today, the system generates more than 200 additional sales a month. • Paragon Honda used its new digital marketing strategy to increase sales by 214 units in one month. How did Paragon do it? • Since launching the new system, Paragon’s closing ratio went from 7 Brian Benstock explains: "We were only sell- percent to 25 percent and it became the most profitable dealer. ing 20 cars a month online so we upgraded our • Paragon sends all its prospects and customers multimedia virtual test Web site but our sales didn't increase. Then we drives via e-mail. realized we needed more than just a Web site, so we hired a digital marketing company, which • Paragon uses bulk multi-media e-mail campaigns to drive more traffic gave us a new site and the tools and training to without additional advertising costs. market it, manage the leads and implement a • Creative marketing online and offline has created more showroom, successful strategy. As a result, we increased phone and Internet traffic while lowering the overall marketing budget. our traffic to our showroom, phone and Internet • Paragon’s BDC handles all Internet and phone leads. The BDC is staffed department while reducing our cost per sale, with phone specialists whose only job is to get appointments. and today we're selling almost 200 extra cars a month.” customers' e-mail addresses whether they call, our marketing strategy. Today, we have more click or come into our dealership.” Paragon has than 80,000 e-mail addresses which we can use "Now, we collect e-mail addresses from our thousands of e-mail addresses that it uses to to send campaigns for every month of the year, customers by offering them free things that conduct marketing campaigns. “We have hun- every season and any theme. We send inven- they want. For example, every prospect who dreds of pre-packaged multi-media Buzzmail tory reduction, clearance, holiday events, spe- calls or visits our dealership is offered a ‘free campaigns that we can send to customers with cial financing, key for key exchange and more. virtual test drive’ on the vehicle they’re inter- a few clicks” Benstock said. “E-mail marketing It’s a great way to generate more sales without ested in. As a result, we get the majority of our is the future, and we’ve made it a big part of extra cost.” 12
  • 15. Sheehy Sells 414 Cars a Month Online Sheehy.com Increases Leads over 300 percent in 60 Days heehy sold an additional 414 cars in one month online. “We shifted some of our market- ing budget to focus on targeting the Internet." said Roy Reutter from Sheehy. "Customers are changing where and how they shop, so we are changing where we market. Initially we relied heavily on third party pro- viders for our leads, and after a short time, we realized that the leads with the highest closing ratio and lowest cost came from our own Web site. We’ve since set up our own regional buy- ing service, and we’re generating more traffic and leads for our people to turn into appoint- ments and sales. We’ve increased our numbers by more than 600 percent and the Web has be- come our primary source of phone traffic.” The Idea Once the Sheehy team realized it needed more than a Web site and a few third party lead pro- “We appear in the first two Google results for free when viders, it worked to build a complete strategy to customers type in “Washington DC Ford." Our competitors have market its Web site, update the Web site, staff its team, implement a process, establish pricing to buy sponsored links where they pay to get a worse and more. That was two years ago, and since position than our two free positions.” – Roy Reuetter then it has increased its numbers by more than 600 percent and dropped its cost per sale to about $130 per car. THE BOTTOM LINE The Technology • Sheehy sold 414 cars online by shifting some of its advertising. Roy Reutter says: "We were using our DMS provider for our Internet and CRM strategy but • After launching the new Web site, Sheehy went from 400 to 1,350 leads in they were not getting results because that is not only 60 days, and today it generates more than 2,400 leads per month. their specialty. After hiring a specialist in digital marketing and CRM, our numbers skyrocketed • The closing ratio for the leads from Sheehy.com is three to four times because they not only built our Web site but higher, and the cost per sale is about $130 per car. they also did all the online marketing including our search engine placement and multimedia e- • Sheehy.com is designed to drive phone and showroom traffic, and the mail campaigns." Sheehy increased leads from Web site is now it's No. 1 source of phone leads. 400 to 1,350 in the first two months and have continued to improve results. Today they are • Sheehy increased leads by 350 percent after switching from its DMS pro- generating more than 2,400 leads a month from vider to a digital marketing company to build and market its site. their Web site alone they’re selling more than 400 cars a month online. • Sheehy's Web site vendor positions it on search engines and helps market the Web site online and through multimedia e-mail campaigns. The Web site Roy Reutter has found there are five keys to a 5. Designed to create more Internet, phone and cost per sale by using search engine optimiza- great automotive Web site. They are: showroom traffic tion in conjunction with multi-media Buzzmail 1. Simple and easy to use campaigns. As a result, customers are landing 2. Content that the customer wants The Marketing on www.Sheehy.com rather than at the com- 3. High-impact, engaging multi-media that is Roy Reutter has said, “If you can’t generate petitors’ sites. "When customers go online to fast to load even on a low-speed connection traffic there’s no point in having a Web site.” search for dealers in our area they find us, and 4. Automatic updating According to him, the Sheey Auto Stores have as a result we have increased our traffic and been able to generate more traffic at a lower sales dramatically." 13
  • 16. Dick Hannnah Becomes No. 1 Pre-Owned eCRM Dealer by Selling 384 Extra Cars in one Month ick Hannah, in Portland, Or., became the biggest pre-owned Internet dealer in the U.S. by rethinking its marketing strat- egy and recognizing that there is a lot of money to be made in special finance online. They’ve since learned to use the Internet to tap into the special finance and pre-owned profit opportunities, and today, they’re selling hun- dreds of extra vehicles per month. Joe Orr from the Dick Hannah organization shares how they implemented a new marketing strategy and re- gional buying service to become the No. 1 pre- owned Internet dealer in the world. The Right Marketing, People and Strategy We re-evaluated our advertising budget and realized we were spending more money than ever before on mass marketing without a suf- ficient return on investment. An increase in “Special finance is huge on the Internet. With television and radio stations today makes it DickSaysYes.com, we sold an additional 180 sub prime harder to reach a large audience. The cost of print advertising has gone up, and print ads are units in one month alone.” Joe Orr, Dick Hannah positioned alongside competitors’ ads which focus on price - driving down the average gross profit. We were spending more to get less, and THE BOTTOM LINE it was tough to measure our return. It became clear there had to be a better way, and Internet • DickHannah.com became the No. 1 Pre-Owned eCRM Dealer in the was the obvious choice for targeted marketing. world and the USA's Approval Site of the Year. The first thing we did was get the right people in place to run our BDC and establish a strat- • DickHannah.com generates Internet leads, phone traffic and showroom egy for building business. Next, we focused on traffic resulting in 384 incremental sales. finding the right Web site and CRM provider. • The leads from DickHannah.com have a higher closing ratio and lower cost per sale. The Right Technology Orr is quick to point out that you need more • Dick Hannah dominates the market with its own regional buying service than a great Web site and CRM tool; you need and sub-prime approval center at DickSaysYes.com. to build a complete strategy for marketing, get the right people in place, implement a process • Dick Hannah hired one vendor to set up its emarketing system, Web and establish a pricing philosophy. He also sites, CRM tools and training. adds: “While the right Web site won’t solve all your problems, you won’t get far without • Dick Hannah uses e-mail marketing because it's cheap advertising with it. We had a pretty good templated site that a high rate of return. was recommended by our manufacturer site for the customer to get further into the process Reestablish Credit, Fast Bankruptcy Approvals but we were not getting incremental business. and continually prompts them to fill out an ap- and other areas that speak to what’s important After we switched to our current provider we plication online. to the sub prime audience.” increased sales by 180 cars because they not only built us a better site, they also provided Joe explains, “The key to building a Web site Joe’s team has learned that to set yourself apart, all the marketing tools and training.” capable of generating sub prime leads is to you need to make it interactive, clean and user- provide information the customer is looking friendly. Visit www.DickSaysYes.com and you One great feature of the new site is a virtual for and a way to contact the dealership. For can even click on a link to view TV commer- special finance department called www.Dick- example, DickSaysYes.com includes a ‘How it cials that promote the Web site and target the SaysYes.com which provides three easy ways Works’ button that provides FAQs, Six Steps to sub prime market. 14
  • 17. Schomp Automotive Sells 100 Extra Cars in one Month espect. That’s the key word at Schomp Automotive. Re- specting the customer starts with selling according to the needs of the customer and say- ing goodbye to outdated one- size-fits-all high-pressure sales techniques. “Our approach to sales is two-pronged,” Lisa Schomp says. “We pay equal attention to pro- viding a superb Web site where customers can research and find exactly what they need and to our state-of-the-art BDC that ensures our telephone customers’ needs are met promptly and efficiently.” Benefits of the BDC Implementing the BDC has increased sales, for the most part, because it greatly enhances follow-up by Schomp’s sales staff. Custom- “Our Web site is integral to our success; we sold over 1,000 ers are no longer slipping through the cracks. vehicles online in 2004, and over 100 a month this year.” Lisa Lisa Schomp explains, “We provide prompt responses with real answers and a genuine in- Schomp terest in the customer’s needs. The focus is to set an appointment, and this is a true team effort.” THE BOTTOM LINE The Web site, the Marketing Strategy • Schomp Automotive consists of a Chevrolet, Honda, BMW and Mini fran- and the Technology chises “Our Web site is integral to our success; we sold over 1,000 vehicles online in 2004, and • www.Schomp.com helped sell more than 1,000 vehicles online last year we are selling a lot more this year. Our Web and sells more than 100 cars a month today site provider built us a fantastic site, and they • Schomp’s Web site generates 700 new Internet leads per month provide search engine placement, e-mail campaigns, our CRM tool and the training we • Schomp’s digital marketing has accelerated sales from 730 vehicles sold need to implement everything. We use a suite to 1,001 and gaining of powerful multimedia Buzzmails to selec- tively target our clientele with highly interac- • Schomp has implemented e-mail promotions that sell more cars without tive campaigns. We have had a 10 percent re- any extra expense turn on e-mail promotions. The way we look at it is if we broadcast 400 e-mails for free and • Schomp’s sales have increased because they have the right people using make two sales from five minutes of typing, its digital marketing system that medium cannot be beat. Our customers per and radio with their Web site and e-mail fairly when they walk in the door, we’ve in- seldom opt out since we do not overwhelm providing the bulk of the coverage they have. creased our site leads ten-fold.” them, and we provide them with the informa- Lisa Schomp says, “We believe in indepen- tion." dence from third party lead generators and About the future of the industry, Lisa Schomp auto brokers. We post our inventories on a says, “Know that change is inevitable, and Schomp has implemented other new and in- couple of services like Cars.com and Auto- don’t be afraid of it! Five years ago we had novative marketing techniques to bring in Trader, but we rely mainly on our own Web no idea that digital marketing would account new customers. They have done very little site and treating our customers the way we for so many new customers and sales. Also, advertising over the last dozen years, and to- would like to be treated. By using our own don’t be afraid to ask for help when you need day, they rely on a small presence in newspa- site to pull in leads and treating customers it.” 15
  • 18. Christopher’s Dodge World: 138 Extra Sales in one Month CDodge.com Increases sales and profit by using the Web and CRM to change the way America buys cars hristopher’s Dodge World has become one of the largest dealerships in the country by working to constantly improve how it sells and serves its cus- tomers. It is quickly becoming known for how it is revolu- tionizing the way cars are bought and sold in America. Like many dealers, Christopher’s Dodge World noticed that more and more customers were using the Internet to start their shopping experience. Not only did it notice the trend, Christopher's Dodge World rose to the chal- lenge the Internet represents and are now leading the way to success with their own on- line buying service. “Our goal is to make it quicker, easier and less expensive for customers to get their next vehicle. We feel that by putting the custom- ers’ needs first, saving them time and giving them what they want we will sell more cars, “After we switched to BZResults.com we increased increase gross and boost customer satisfac- tion. And you know what, it’s working” said our sales from 20 to 138 cars a month.” Cliff Hall, general manager. Chad Sterling, Internet director In the year since building its online buying service, www.CDodge.com has enabled it to increase sales volume from 20-30 vehicles THE BOTTOM LINE per month to 138 sales last month. Custom- ers who in the past may have used brokers • Christopher’s Dodge World created a new online buying service and be- (who would then sell the leads to the dealer- came the No. 1 Dodge eCRM Dealer in the nation. ship) now know that they can go directly to the CDodge.com buying service. Chad Ster- • Christopher’s Dodge World sold 138 extra cars in one month from its online buying service. ling, Internet director at Christopher’s Dodge World says, “Customers love it because they can build any car they want or view virtu- • CDodge.com promotes all profit centers at the dealership. ally unlimited new and pre-owned inventory with just a couple clicks. They can also take • At CDodge.com you can build and compare vehicles, take virtual test drives, a virtual test drive with 360 degree tours, get financed, evaluate a trade in, schedule appointments, buy parts , etc. view product comparisons, get financing, view performance vehicles, check for spe- • Christopher’s Dodge is delivering on its mission to better serve the cus- cials, download coupons, learn about the pre- owned certification process and the one-hour tomer. vehicle purchase and even book a service ap- pointment or schedule parts.” • Their technology vendor provides search engine marketing, online ads, Web and CRM tools, automated follow-up, reports and in-store training. As a result www.CDodge.com has become the most successful online Dodge dealer in experienced massive growth instantly. After the world. Chad attributes the success to the some pretty nice templated Web sites but our customers wanted more and after hitting a pla- one year we increased our online sales from following: Dealer and management support, an average of 20 vehicles a month to 138 ve- a great marketing strategy, the right Web site teau, we realized we needed more. Although we had a great Web site we did not get great hicles last month. The reason for the increase and CRM tools, tight processes and a great was partly due to a better Web site that gener- team. “We’ve signed with outside training to results, and we quickly learned we needed more than a Web site. We hired a company ated more leads but most of the increase was make sure that our team is skilled and able to due to the digital marketing tools we now execute the process 100 percent.” called BZresults.com to custom build our on- line buying service, and they gave us all the use. These include search engine marketing, tools and training we needed to promote, man- e-mail marketing, online ads, CRM tools, au- The Right Technology: We began with tomated follow-up and reports. age and measure all our customer activity. We 16
  • 19. Courtesy Chevrolet Becomes No. 1 BDC in U.S. by Selling 384 Extra Cars in One Month ourtesy Chevrolet’s Business Development Center has learned to leverage the marketing power of the Internet and as a result, it sold an additional 384 vehicles out of its BDC in one month alone. The cornerstone of Courtesy’s BDC is its digital marketing system that allows it to generate incremental sales out of its BDC and drives more than half of the phone traffic to the dealership. The BDC staff has learned to use the Web as an incredible marketing medium, and as a result its using the system to increase sales, F&I and service and parts business for a lot less money than traditional advertising. As a result, “Our cost per sale ranges from $125 to $200, which is a lot less than traditional adver- tising” said Scott Gruwell of Courtesy. The system includes a high-end custom Web site and a prospecting/CRM tool that auto- “We increased our BDC sales from 40 to 384 cars a month. mates most of the BDC’s contact activity. Gru- The key to our strategy was our Web site, CRM system and our well explains, “Our new Web site increased our Internet marketing.”- Scott Gruwell, Courtesy Chevrolet leads by more than 400 percent but it was only one part of our new system. The system also in- cludes the marketing tools to create traffic and THE BOTTOM LINE the CRM tool to manage our Internet, phone and show room opportunities so we can turn • Courtesy Chevrolet’s BDC helped sell 384 extra cars and generate $582k in one month leads into sales. After the first month we sold 40 units, then 75, then 150, 200 and last month • Courtesy Chevrolet finished the year as the No. 2 Chevy dealer in the country we sold 380.” When asked to name the single most important • Courtesy Chevrolet was named one of the Top 10 eCRM Dealers of the factor in launching a successful BDC, Scott Year Gruwell, tells us, “You need to find and train • Courtesy’s Web site and BDC took them from 40 sales to 384 sales after the right people and give them the tools they a two-year period. need to do their job.” Scott has found that the right people for the BDC are those with excel- • Courtesy Chevrolet's Web site provider setup their BDC and provides lent phone skills and a passion for customer their training satisfaction. He tells us that the right tools will automate much of the follow-up process and • Their cost per sale ranges from $125-$200 since installing their new system provide the reports to manage and measure results. He says, for example, “automation enables our team to focus their energy on the "We conduct monthly phone and they’re setting more appointments multi-media e-mail as a result.” Scott will be the first to admit that installing a successful BDC is not a simple task, campaigns that result in but when the BDC helps take the gross profit 25-50 sales a month." from $84k per month to $582k per month, it’s an effort that’s worth the investment. Scott Gruwell 17
  • 20. Tasca Auto Group Tasca Increases Profits and Reduces Turnover n today’s market, dealers are ei- 100 ther thriving in a growth mode, or struggling to stay afloat. 80 Whether you’re successfully 60 adding franchises to your dealer 40 group or tightening your belt in 20 an effort to remain competitive, nothing will make or break a dealership’s suc- 0 cess quite like people. 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Employee Customer Profitability Turnover Satisfaction Satisfaction Tasca Automotive has grown from a small, family owned single-point store to a multi- franchise auto group operating out of four lo- “We signed up with BZResults.com to implement our new digital cations. It has grown substantially while main- marketing and training strategy. As a result our turnover has de- taining CSI scores that are among the highest in creased and sales and profit have increased.” Bob Tasca III the nation and customer loyalty above 83 per- cent. Throughout the growth process, Tasca has naturally needed to add people. What’s unique is that the Tasca leadership team believes that THE BOTTOM LINE their most important asset is their people, and as Bob Tasca III likes to say, “We owe it to our • Tasca increased sales, profits and CSI by using the Web, CRM and train- customers and ourselves to invest in the devel- ing to improve the customer experience at its dealership. opment of our team.” • Tasca hired a company to create and implement a complete strategy to recruit, hire and train its people in all areas of their business. But how do you move beyond the typical new- hire training? Tasca hired an outside training • Tasca’s world class Customer Relationship Center generates an addi- company to improve its strategy for recruit- tional 80 sales a month. ing, hiring and training its people. Bob Tasca III says, “We’ve been able to manage growth, • Tasca won Automotive News “Best Web site” award and has been named increase profits and reduce turnover. We use a among the top eCRM Dealers of the year two years in a row. recruiting, hiring and training system to ensure • Tasca’s customer loyalty rating is above 63 percent and their CSI is we hire the right people for the job, baptize among the nation’s highest. them in the Tasca way of doing business and give them the tools and skills they need to get • Tasca Automotive invests in training its people because it's found that off to a strong start. We build on that founda- employee satisfaction drives customer satisfaction. tion with weekly in-house sessions and monthly training meetings with our consultant.” Here’s munication. ery one of our graduates is excited about their an outline their 120 day New Hire Orientation: career, confident with the skills and process Part 5 - Job Training: Detailed training regard- needed to get results and eager to continue with Part 1 - Welcome to the Tasca Family: Over- ing job-specific activities, processes and pro- their personal and professional development. view of the dealership’s history, vision, mission cedures. Now that everyone is on the same page and our and principles. processes are generating great results, I could Part 6 - Mentorship: Every new team member not imagine not spending the time and money Part 2 - Welcome to the Dealership: Introduce is assigned to a mentor who is responsible for to train our people properly.” new hire to each department and clarify his or guiding him or her through the first 120 days. Below is a summary of some of Tasca Univer- her role within the entire ownership experi- sity’s training modules: ence. Part 7 - Certification: The new team member Sales process meets with manager to verify proficiency with Management and coaching Part 3 - Dealership Tour: Working tour of ev- each job skill as defined in the certification Phones strategy and process ery department. book. Internet strategy and process Customer relationship center Part 4 - Department Internship: Work briefly According to Tasca, “Employee satisfaction Sold and unsold follow up in each department to better understand cus- drives customer satisfaction and loyalty. There- Service contact and follow up tomer experience and interdepartmental com- fore, the goal of orientation is to see that ev- Lease and retail renewals 18
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  • 22. sts fos ls ms sf fis BrianTracy sales and training solution Planning Your Questions Selling consists Here are some great questions for gap Good questions that grab the prospect’s of finding the gap analysis. attention will start him or her visualizing and between where the imagining an ideal future state, exactly the customer is and where The first question is an application of the state that your product or service is meant he or she could be with “magic-wand technique.” Imagine that to achieve. what you sell. Gap you have a magic wand that you can wave analysis is based on asking good questions — over the prospect’s situation and you ask A final key to effective selling through gap questions focused on discovering problems this question: “Mr. or Ms. Prospect, if this analysis, is to share some of the experiences that might be troubling the prospect. There is situation were absolutely perfect in every of people who have previously purchased a direct correlation between the use of good respect, what would it look like?” Then your product or service. Use third-party questioning techniques and sales success. remain silent. When the prospect begins references, testimonials and anecdotes. The more and better questions you ask to describe that perfect situation, you’ll Say something like, “I have a very good aimed at finding a problem or uncovering a uncover the gaps you can fill to create his or customer who had a similar situation to dissatisfaction, the more interest the prospect her ideal future. When you explain how your yours not long ago.” Then go on to explain will have and the more sales you will make. product or service can bridge those gaps, you how your customer was able to rectify that The person who asks questions has control. will greatly enhance your chances of making situation in a cost-effective way by accepting a sale. your recommendation. Good sales people always plan the wording of their questions, rewriting them and A great set of questions begins with the To be truly persuasive in the selling process, practicing them before they get face-to-face words what if? For example, “What if use gap analysis. Instead of trying to with a prospect. Poor sales people, on the we could achieve this particular result for overwhelm your prospects with reasons and other hand, make up their questions as they you? What effect would that have on your rationales for doing what you want them go along. situation?” to do, ask questions aimed at uncovering their problems, needs and dissatisfactions. Listen carefully to the answers they give you, and ask additional questions to help them expand on their situation. Take a few moments to feed their answers back to them, to show that you were really listening and Keep your customers that you really appreciate their needs. Then position yourself to influence and persuade for just pennies a day. your prospects by showing them how your product or service just happens to be the ideal way to solve their problem, satisfy their need, or achieve their goal. Here are two things you can do immediately to put these ideas into action. Loyalty DriverTM by . is email marketing made First, take time to write out your questions word for word and practice them in advance easy. Your own customized before meeting with the customer. They are e-newsletter with profes- too important to be left to chance. sionally written content and sophisticated report- Second, continually ask “What if” questions to help open up your customer’s mind to the ing including our unique possibilities and benefits of what you sell. buy signal allowing you to Listen carefully to every answer. know when your customer is ready to buy. CONTACT US TODAY Brian Tracy is the chairman and CEO at 866-964-NEWS (6397) ext.214 of Brian Tracy International. He can be or email us at loyaltydriver@imninc.com contacted at 866.300.9881, or by e-mail at btracy@autosuccess.biz. 20
  • 23. sts fos ls ms sf fis fixed operations solution GreggTompkins Seven Keys to Warranty Administration Success The automaker is your need to be looked at weekly and reviewed often look like a mini-junkyard in your parts biggest customer in the in-depth on a monthly basis. department. The more disorganized it is, the service department. less likely you’ll be able to find the parts They come in as Open RO reports you need when the manufacturer requests different customers Just like warranty schedules, open RO them back. The most common and simplest throughout the day reports can tell you what’s going on with system is to use the tried and true 10-bin under the guise of warranty repairs, but when your warranty claims. You wouldn’t leave system. it comes to dollars, the automaker pays out cash lying around on a desk without more than any other customer to your service depositing it, so why do it with warranty Good warranty administration practices department every month. claim dollars? This report will isolate unpaid are an essential component of a well-run warranty claims that have not yet made it to service department and profitability. Take a To collect that money, it takes more effort the warranty schedule. look at how you measure up and make the than just swiping a credit card or taking cash. appropriate changes if you need them. It can That’s where having your warranty processes Manufacturer’s warranty expense reports mean money in your pocket. on a good foundation will pay off. This is an important document for you to review every month. The reports can give you A good warranty administrator valuable insight into how well you’re minding Dealerships need a strong, knowledgeable the manufacturer’s money, and that’s what warranty administrator that can be the matters if you want to avoid an audit. go-to person. This is the person that will have very detailed knowledge of Parts retention and scrapping system. Gregg Tompkins is the president and a warranty administration policies and can The most overlooked component of many consultant at Dealer Insight. He can be usually handle answering most warranty dealerships’ warranty administration systems contacted at 866.403.7973, or by e-mail at administration questions, as well as be is the warranty parts retention system. It can gtompkins@autosuccess.biz. the hands-on person to deal with warranty claims once the repair is completed. A good service manager A good, strong, effective and honest service manager plays a key role in your warranty administration success. He or she can keep everyone focused on following the policies 1-888-Get-A-Car outlined by the manufacturer and keep warranty expense in line so the threat of an & audit is minimized and you can keep your hard-earned money. Proper documentation www.getacar.com Proper documentation will help avoid many problems. Those problems can include: not Only One Dealer Per Market claiming all the warranty dollars you’re due, claims being improperly coded, claims being Call Now for Exclusive Rights Details held up longer for payment and claims being debited in an audit. View TV Spots at www.getacar.com/dealers.htm Properly documenting warranty claims must Programs Include be part of the job description for service advisors, technicians, management and parts Leads, TV Spots, Lenders, Advertising Assistance, personnel. Training for your Special Finance Department, Bankruptcy Mailer Software Use and maintenance of schedules Warranty receivable schedules can be a good barometer of how effective your STOP Paying per Lead! One Flat Rate For claims payment processes are. It takes constant overview and maintenance to UNLIMITED LEADS! make warranty receivable schedules useful Get A Car, Inc. in evaluating how things are flowing. Joe Perot - President Payments need to be applied immediately, and any adjustments need to be identified email: perot@getacar.com and corrected as soon as possible. Schedules 800.790.1212 www.getacar.com january 2006 21
  • 24. sts fos ls ms sf fis DavidKain marketing solution Take Your Internet Sales to the Next Level Answer the following Lead source percentage achievable goals: to think you can go beyond and become an question and outline • Dealer Web site generated leads = 40 industry leader. Whatever level you aim your next level: percent of total leads for, be sure to keep it in a state of flux so • Third party generated leads = 50 percent you can achieve and then aim even higher. 1. What level are you of total leads (for Ford and GM dealers Your dealership Internet team must feel on today? these include FordDirect and GMBuyPower the next level is attainable or they could leads) give up before they even start the journey. In order to know where you want to go. you • Manufacturer generated leads = 10 percent By including your Internet team in the need to know where you are today. The of total leads discussion to determine your next level goals Internet is very metrics based, which makes you will have their buy-in and commitment it the perfect dealership tool. Dealers are Number of leads you connect with to do what it takes to achieve them. accustomed to measuring every aspect of achievable goal: their business from their hours per R.O. • Connect rate = 55 percent of total leads. 3. Do you have the foundation in place to to their obsolete parts inventory to their Meaning the number from whom you actually take it to the next level? reconditioning charges on used vehicles and obtained a legitimate e-mail response or with their aged receivables. All of these variables whom had a telephone conversation. There are several common elements in place mix into their goal of achieving a profit, and when I see dealerships who truly have taken they monitor these and many other metrics Number of prospects who set an it to the next level. I’ve outlined them below each and every month. appointment achievable goal: for you to gauge your own foundation. • Appointment rate = 40 percent of total The following metrics need to be defined leads • Dealership commitment – Is the dealer each month to determine your performance principal willing to commit the time, energy level. Number of prospects who keep their and resources to grow to the next level? a. What is the number of Internet leads appointment achievable goal: received by e-mail and by phone? • Kept appointment rate = 30 percent of total Basic resources: b. What are your lead sources? Dealer Web leads • Budget for leads, technology and site, third parties, online classified? compensation c. How many leads you are able to connect Percentage of Kept Appointment Prospect • Training for dealership management and with and have a real dialogue? who Purchase Achievable Goal: Internet/BDC personnel d. How many customers set appointments? • Kept appointments who purchase rate = 50 • People – behind every leading Internet e. How many customers kept appointments? percent operation there are key people who manage f. How many vehicles did you sell? This through adversity to stay focused and on determines your close rate Close rate percentage of total leads target. Hire and train the right people and g. What is your average gross per sale? achievable goal: you are almost there. h. What is your total gross? • Close Rate = 15 percent of total leads • Leads – right sizing your leads to your i. What did your leads cost you? Web site personnel and technology is essential to costs, third party costs, Online classified Gross average on Internet generated sales meeting your goals costs, technology costs, etc.? achievable goal: • Technology – an effective Web site is j. What is your return on investment? • Average Internet gross = average showroom crucial in meeting your dealer Web site lead gross source goal. Managing growth requires Once you have these metrics defined you a technologically advanced CRM or lead can pretty well determine your operating Average cost per vehicle sold via the management tool level as long as you have some benchmarks Internet achievable goal: to compare yourself to. Over the last several • Average cost per Internet vehicle sold = By answering these questions you can easily years, I have learned the difference between $200 predict whether your dealership is in line poor, average, good and great performance to take it to the next level. With so many and want to offer the following achievable 2. What do you consider the next level people using the Internet to start the buying goals for your use in comparing your own compared with your current performance? process you don’t really have any choice, so Internet performance. outline the steps and start aiming for the next The answer you provide for this question level today. General Internet achievable goals is perhaps the most important one for your These goals are based on the actual results dealership in attaining the next level. If of dealerships KainAutomotive.com has your performance is below the achievable David Kain is the automotive Internet trained and consulted with over the past goals outlined above the next level for your training specialist at Kain Automotive Inc. three years. The goals can and should vary dealership could be achieved by meeting He can be contacted at 800.385.0095, or by brand, so make sure you focus on what is those outlined above. If you are already at by e-mail at dkain@autosuccess.biz, or attainable given your individual brand. the levels described above then it is realistic visit www.kainautomotive.com. 22
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  • 26. sts fos ls ms sf fis ChrisHanson sales and training solution Do You Have a Daily Schedule It doesn’t matter if you to do things to fully maximize your daily sell 10 cars a month or schedule. By this, I mean each store has 25 cars, we all have different traffic trends, so ask your manager lots of time. If fact, or start paying attention. When does it seem when we are really most ups come into the dealership? When busy, our daily schedule really comes in do most phone ups call in? When is the best handy. Just like we talked about in the last time to get hold of your customers? article, we need to set goals and then have a plan for how we are going to accomplish Start by creating and following a daily those goals. A daily schedule will help you schedule. Here’s an example: accomplish them. 1. Listen to a Training CD on the way to One of the first things to consider is your work. continuing education. Become a student of the business. Start the day out by listening 2. Get to work a little early and watch a to a training CD on the way to work. Don’t training tape. have a long enough drive to work? No problem. Do it when you get to work. Go 3. Plan your day. to the meeting room and listen or better yet watch a training tape. If you want to take 4. 9 to 9:30 a.m. – Walk the inventory things up a notch, how about listening to a CD on the way to work and then sit down 5. 9:30 to noon, beat the phones to and watch a training tape when you get to death! Watch for ups. work? Then if you want to really take your career to the next level, find a partner at 6. Five Appointments! Go for five work that will commit to role-play with you every day. You need to make enough every day and watch your sales go through contacts by phone each day to the roof! How many months do sports teams generate five appointments. practice before they play their first game? “I want to think about it.” What are you going 7. 1 to 3 p.m. – Come back to your to say? “Payments are too high.” What are office and hit the phones again. you going to say? Watch for ups. Right after you get done with your training, 8. 4 to 5:30 p.m. – Watch for ups. it’s time to head out on the lot. I don’t care if you have 100 cars or 1,000 cars on your 9. 5:30 to 6 p.m. – Set up the day for lot, you need to know what your inventory tomorrow is. Walk the lot and take note where cars are located, colors and equipment and keep 10. Do this everyday. a look out for new trades and new program cars. You must know your inventory, trust Sit down today, create your daily schedule me. Your career depends on it. Start walking and put your career on the fast track. Make the lot and see what happens. You will be use of your time while you’re there by more professional and you will know what having direction and a purpose for being alternatives to offer your customer and, in there beyond your next sale. If you would turn, you will sell more cars. Start today. like more details on developing your schedule please feel free to e-mail me. From here you need to go over yesterday and see what you need to follow through with Chris Hanson with Hibbing Chrysler can be and also plan your day. Now you need to contacted at 800.901.2862, or by really figure out the best times at your store e-mail at chanson@autosuccess.biz. 24
  • 27. I don’t believe in Santa Claus, but I’m not going to sue somebody for singing a Ho-Ho-Ho song in December. I don’t agree with Darwin, but I didn’t go out and hire a lawyer when my high school teacher taught his theory of evolution. Life, liberty or your pursuit of happiness will not be endangered because someone says a 30-second prayer before a football game. So what’s the big deal? It’s not like somebody is up there reading the entire book of Acts. They’re just talking to a God they believe in and asking him to grant safety to the players on the Þeld and the fans going home from the game. But it’s a Christian prayer, some will argue. Yes, and this is the United States of America, a country founded on Christian principles. According to our very own phone book, Christian churches outnumber all others better than 200-to-1. So what would you expect-somebody chanting Hare Krishna? If I went to a football game in Jerusalem, I would expect to hear a Jewish prayer. If I went to a soccer game in Baghdad, I would expect to hear a Muslim prayer. If I went to a ping pong match in China, I would expect to hear someone pray to Buddha. And I wouldn’t be offended. It wouldn’t bother me one bit. When in Rome. But what about the atheists? is another argument. What about them? Nobody is asking them to be baptized. We’re not going to pass the collection plate. Just humor us for 30 seconds. If that’s asking too much, bring a Walkman or a pair of ear plugs. Go to the bathroom. Visit the concession stand. Call your lawyer! Unfortunately, one or two will make that call. One or two will tell thousands what they can and cannot do. I don’t think a short prayer at a football game is going to shake the world’s foundations. Christians are just sick and tired of turning the other cheek while our courts strip us of all our rights. Our parents and grandparents taught us to pray before eating; to pray before we go to sleep. Our Bible tells us to pray without ceasing. Now a handful of people and their lawyers are telling us to cease praying. The silent majority has been silent too long. It’s time we let that one or two who scream loud enough to be heard that the vast majority don’t care what they want. It is time the majority rules! It’s time we tell them, you don’t have to pray; you don’t have to say the pledge of allegiance; you don’t have to believe in God or attend services that honor Him. That is your right, and we will honor your right. But by golly, you are no longer going to take our rights away. We are Þghting back ... and we WILL WIN! God bless us one and all ... especially those who denounce Him. God bless America, despite all her faults. She is still the greatest nation of all. God bless our service men who are Þghting to protect our right to pray and worship God. May 2006 be the year the silent majority is heard and we put God back as the foundation of our families and institutions. Keep looking up. Anonymous Author