AutoSuccess Jan07


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

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AutoSuccess Jan07

  1. 1. Happy New Year January 2007
  2. 2. • F&I Training • Sales Training • Menu Training • Service Drive Training • Sales Management Training • Legal Seminars • Used Car Management Training “It is sure to make myself and my dealership more gross and retain high CSI and customer loyalty.” – Knapp ChevroletVisit us at the NADA Convention in February – Booth 5630 • (800) 967-3633 •
  3. 3. eCRM Dealers of the Year 10 PatrickLuck Arouse Emotion, Don’t Sell Logic 22 TomHopkins Continuous Learning 24 BrianTracy Kings Toyota The Biggest Showroom in the Universe 26 PatrickLuck Increase Your Online Profits by Rewriting Your Used Car Manager’s Job Description 28 DavidKain 10 Stop Negotiating in the Business Office Sell Whatcha’ Got 30 31 JeffMorrill TonyDupaquier Targeted Web Video and Your Ad Strategy, Part 1 32 PhilSura Key Performance Indicators, Part 5 36 HeatherConary Training Essential to Telephone Success 38 AlanRam Personal Development is Personal, and Commitment is Key 39 MichaelYork Getting a Head Start: Planning Your Direct Mail Marketing for the New Year 40 JimYoung Brand Yourself 44 DavidThomas Customer Segmentation: Increasing Retention and Profitability 45 MelissaRimoldi What Have We Done to Our Sales People 46 EricMélon How to Start Off Winning 48 DeliaPassi Never Ask a Question If You Don’t Already Know the Answer 50 RichardLibin By Design or Default Customer Pay Labor and Parts Profit Training 52 SteveLaPenta The Art of Recruiting 56 DixonJudd A New Year’s Resolution: Break Up Your Unplowed Ground 58 JesseBiter Car Sales 101: A Case Study 59 MarkTewart Six Steps to a Great Presentation at Your Next Meeting, Part 1 60 PattiWood Four Pillars of Prospecting 62 DirkZeller Patrick Luck, Editor & Publisher Courtney Paris, Sales-improvement Strategist Susan Givens, Vice President Brian Ankney, Sales-improvement Strategist 3411 Pinnacle Gardens Drive Thomas Williams, Creative Director Brian Balash, Sales-improvement Strategist Louisville, Kentucky 40245 Dave Davis, Creative Strategist & Editor Toni Stephens, Sales-improvement Strategist toll free: 877.818.6620 facsimile: 502.588.3170 Cori Frye, Sales-improvement Strategist web: helping to promote... James 4:10 Humble yourselves in the sight of the Lord, and He shall lift you up. God is the source of all supplyAutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or Subscription rate is $75 per year.AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions;views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other magazine to which thismagazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction inwhole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request thatnames be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3411 Pinnacle Gardens Drive, Louisville, Kentucky 40245.
  4. 4. • • • • • • • • • • ers know and expect more from their dealers than ever before. Therein lays the challenge and the opportuni- ty. Smart dealers are meeting and exceeding these customers’ expectations. Top perform- ing dealers have used the Internet to increase their retail sales by 20 to 25 percent and to improve the profitability of their F&I, Service and Parts Departments as well. Although dif- ferent dealers’ strategies vary, there are some essential elements that most successful dealers possess. AutoSuccess looks for the following five key elements to determine the winners of the eCRM Dealers of the Year Awards: • WELL-DEFINED STRATEGY: A detailed marketing plan with clear objectives to attract traffic to their site, phones and showroom. • HIGH-IMPACT WEB SITE: A customer- friendly site that is innovative, engaging and informative, and that promotes all profit cen- Our staff at AutoSuccess nomenon. This revolutionary medium has en- ters of the dealership. is dedicated to address- abled dealerships to generate substantial returns • POWERFUL CRM TOOL: A fully au- ing the specific needs on their investment by utilizing the innovation tomated prospect management tool that will of new car and light of the Internet and CRM to promote all profit manage and measure all of their leads and drive truck dealerships by centers within their dealership – from new and quality traffic to the phones and showroom. providing cutting-edge, used sales, to F&I, to parts and service. • INNOVATIVE MARKETING: Effective solution-based resolu- media-enriched e-mails and phone scripts to tions to aid dealers in Dealers are spending more and more money on contact prospects. becoming more suc- mass advertising that has increased in cost and • PEOPLE & PROCESS: Well trained and by Patrick Luck cessful, and ultimately decreased in effectiveness. The most frustrat- dedicated Internet specialists to sell appoint- to establish the results ing part of this equation is that dealers cannot ments and well-equipped sales consultants tothey desire: increased profits. In the process of measure the return on their advertising invest- build value in the dealership and the vehicle.providing research-based innovative solutions, ment. That is why many successful dealers are • PRECISION MEASUREMENT &the AutoSuccess team incorporates the input of shifting their ad spending from mass advertis- TRACKING: Measurable results and auto-hundreds of dealers nationwide. ing to targeted digital marketing that has a bet- mated reports to track metrics in order to con- ter return and is more measurable. tinually refine processes and improve results.In an effort to recognize the outstanding digitalmarketing initiatives and campaigns among the Another trend that has influenced dealer ad- Winning entries tell a great story of marketingnation’s most successful dealers, AutoSuccess vertising is the influence the Internet is having challenges, demonstrate excellence in market-honors those dealers who have effectively lev- on how customers are beginning their buying ing strategy and objectives, show measurableeraged the power of the Internet and CRM to process. Statistics consistently show a grow- results and describe the unique lessons learnedharness substantial results. What our research ing increase in the number of customers who from their marketing campaign or program.has shown is that the nation’s top performing have used the Web to research information at The end result is a smarter marketing strategydealers are harnessing their knowledge, experi- some point during the process of purchasing a that uses intelligent digital marketing tools andence and resources toward this marketing phe- vehicle. CSI surveys reveal that these custom- training to sell more cars for less cost. 10
  5. 5. Tasca Auto Group Accelerating from eCRM to eSatisfaction with 63% Customer Loyalty What better way for one of the nation’s fast- est growing dealers to spend his spare time than behind the wheel of a modi- fied ’07 Shelby Mus- tang making 3,500 hp and accelerating to 210 mph in just 3.7 seconds! That’s no ordinary car; it’s a National Hot Rod As- sociation Top Alcohol Funny Car piloted by Bob Tasca III. Likewise, Tasca Automotive Group is no ordi- nary dealership. The Tasca Group has grown “Our Digital Marketing System turns traffic into leads while pro- from a small one-rooftop store to a multi-fran- viding the kind of online experience that fits with the Tasca Way.” chise auto group in the New England area. - Bob Tasca III Tasca Automotive Group is now operated by third generation Tasca family members led by 1. Customized marketing lists for targeted More and more successful dealerships are us- prospects ing the Internet to communicate with their cus- auto enthusiast/pilot Bob Tasca III. Their con- 2. Media enriched customized bulk e-mail tomers because it is effective, convenient and tinued growth and success can be attributed to campaigns inexpensive. “Our customers love our buzz- the “Tasca Way” of doing business which fo- 3. Automated delivery of graphic and multime- mails,” adds Bob, “These customized, multi- cuses on customer satisfaction. dia digital presentations via e-mail 4. Integration of optional promotional and cus- media mini-commercials are loaded with inter- tom features active features that keep the customer engaged The scope of Customer Relation Management 5. Management of calls, appointments and pro- while obtaining the information they are seek- has evolved into more than just the face to face cesses ing. When it comes down to it, whatever we’re encounter on the showroom floor. Through the 6. Automated and measurable results doing is working!” power of the Internet and digital marketing, fully automated CRM tools are providing the THE BOTTOM LINE opportunity for today’s successful dealerships to take customer satisfaction to a new level. • awarded E-Dealer Of The Year three consecutive years. Not only are the Tasca Customer Satisfaction Indexes among the highest in the nation, the • Tasca is the largest Ford Motor Company dealer in New England. technology of their automated CRM tools have been instrumental in increasing online sales • Tasca has partnered with BZ Results to make the shift to digital by more than 84 units per month. “Our online marketing and to sell an additional 80 + units per month. presence is a whole new way to communicate with our client base. Our philosophy at this • Tasca’s customer loyalty rating is above 63 percent and their CSI is dealership for more than 20 years has been to among the highest in the nation. rely on repeat and referral business, and our CRM provides a better way to serve our cus- • Tasca uses automated CRM technology to improve customer service. tomers,” explains Bob. “Here’s what an effec- tive CRM tool should provide:” • Tasca Auto Group thrives on repeat and referral business.11
  6. 6. The Walser Group Executing Success: Increasing Closing Ratio to 20 Percent Walser Automotive has joined the revolu- tion, implement- ing a centralized eStrategy in 12 franchises. Estab- lished in 1956, Walser Automotive has grown into a network of top qual- ity dealerships across Minnesota who are committed to offering the best service in the industry. Whatmakes the Walser Group unique is their “ne-gotiation-free” philosophy, which they callthe “Walser Way.” “We understand the importance of process and execution, and as a result have built a great foundation in terms of percentages and closing ratios.”Walser Automotive has a fundamentally dif- - Andrew Walserferent approach to the car buying experience.The core principle of the Walser Way is to couple of stores in the mid 20s! That’s quite year creating goals and perfecting processes.give the absolute lowest price up front – no a bit higher than the national average of 5 Andrew Walser is passionate about his com-negotiating, no waiting. The same policy ap- percent.” mitment to centralizing processes and ex-plies to every new and pre-owned vehicle. ecuting on them. Even with the spectacularThe Walser Way empowers the customer and Without the right people and the right pro- results they have seen thus far, 2007 is sureassociate by giving them both the sovereign cesses in place, the greatest technology in to hold great promise for this extraordinarycontrol to make the deal. It is up-front. It is the world is a wasted investment. Newcom- results-driven dealership group. With thehonest. And it is simple. Everyone pays the er to the arena of Top eCRM Dealers of the right tools, people and processes in place, thesame low price…fast, fair and easy. Year, Walser Automotive has spent this past only thing left to do is make it happen.Walser Automotive knows the importance THE BOTTOM LINEof having the right people and the right pro-cess in place. Since implementing a new • Walser Automotive has implemented a new Digital Marketing Strategy.Digital Marketing Strategy within the lastyear, owner Andrew Walser explains, “The • Walser Automotive knows the importance of having the right process.greatest accomplishment since hiring ournew Digital Marketing Consultant is that we • The BDC staff successfully sets appts on 32 percent of leads at centralized a consistent process in allof our 12 franchises. We understand the im-portance of process and execution, and as a • Walser Automotive has increased closing ratios up to 20+ percent in two franchises.result have built a great foundation in termsof percentages and closing ratios. Currently • The Walser Way is a “negotiation-free” philosophy. Everyone pays thewe are setting appointments on 32 percent of same low price.our leads with an 80 percent show up rate. • Walser Automotive conversion ratio is 10 to 15 percent higher than theThat’s generating a 15-17 percent conver- national average.sion ratio on our total leads. We even have a 12
  7. 7. Sheehy Automotive Continued Success – Increased Results up to 700 Percent Since implementing their new digital market- ing strategy a few years ago, Sheehy Automotive has steadily increased their leads, and are now up to the 700 percent mark! This proves that a clear strategy, complete with the right people, process and tools de- signed to utilize the Internet to improve business is not just a passing fad with tem- porary results, but the way of the future for automobile retailers. Let’s take a look at how a large volume dealership group in the highly competitive DC area transformed their average Internet department into a whole new profit “We worked with a results-oriented automotive Internet consulting firm to build a generating center. complete strategy including the redesign of our Web site, staffing and training the Sheehy Automotive, with 18 franchises within team, implementing a process, establishing pricing and fine-tuning lead manage- 13 dealerships across Maryland and Virginia, ment.” - Roy Reutter, Internet Director at Sheehy had immediate results following the imple- mentation of their strategy. In the initial two media has enabled us to increase traffic and marketing strategy, they have seen the average months, their BDC had increased leads by 230 sales at a lower cost than ever.” cost per sale drop from more than $500 per sale percent which translated into an additional 279 to about $130. units in one month. They are now generating With Internet marketing, everything is mea- 3,449 leads per month and have exceeded their surable. Performance metrics help track your The most important metrics to track: goal of 300 sales per month with an all-time dealership’s performance and the return on • Number of visitors to Web site high of 414 sales from the Internet Department. your investment. It’s important to have the • Conversion Ratio Not only has Sheehy maintained their steady right CRM tool that will integrate and automate • Closing Ratio growth, they’re decreasing their cost per sale data so that your strategies can be updated and revised when needed. Reutter added that the • Average gross profit in the process. measurability of ROI on the Internet is unparal- • Cost per sale by lead source Sheehy Automotive began with a business plan leled in the car business. In tracking their new that outlined what they needed to do to use the Web to grow their business. Roy Reutter, In- THE BOTTOM LINE ternet director at Sheehy, indicated that in the beginning they were relying on third party • Sheehy sold 414 units online in just one month. lead providers for their leads and sales. “We quickly realized that we needed more than just a Web site and a few third-party lead provid- • After launching the new Web site, Sheehy went from 400 to 1,350 leads in ers,” explains Reutter. “We worked with a re- only 60 days, and today it generates more than 3,400 leads per month. sults-oriented automotive Internet consulting firm to build a complete strategy including the • The closing ratio for the leads from is three to four times redesign of our Web site, staffing and training higher, and the cost per sale is about $130 per car. the team, implementing a process, establishing pricing, and fine-tuning lead management," • is designed to drive phone and showroom traffic, and the Reutter added. Web site is now its No. 1 source of phone leads. On the topic of marketing, Reutter reflects, “If • Sheehys Web site vendor positions it on search engines and helps mar- you can’t generate traffic you might as well ket the Web site online and through multimedia e-mail campaigns. not have a Web site. Search Engine Optimiza- tion in conjunction with multi-media buzzmail • has been recognized as one of the top eCRM Dealers campaigns blended with traditional marketing of the Year for three years in a row.13
  8. 8. Rick Case eCommerce Dept. Sells Additional 250 Units per Month Rick Case sold his first car at the ripe age of 14 years old. It was an old “fixer- upper” which he purchased, tweaked, and then resold for a profit. Rick claims he made more on that one car than he had made all year as a paper delivery boy. And so the leg- end began. By 1965 Rick had opened his first Honda vehicle franchise, and estab- lished his stature ashaving a keen eye for how innovation canlead to opportunities.Today the Rick Case Automotive Group,comprised of 14 dealerships throughout Fort " has unique features such as Virtual Test Drives which provide theLauderdale, Atlanta and Cleveland, is enjoy- customer with a multimedia vehicle tour that highlights the unique features of theing tremendous growth in its eCommerce vehicle they’re interested in.” - Rick Case, Ownerinitiatives, doubling their Internet sales from250 to more than 500 units per month whilecutting their cost per sale from $340 per car SEO/SEM and our technology partner who 30 percent. All leads go to our lead manage-to only $210. employs two “Google Certified” experts to ment tool, which makes it quick and easy to help generate more high quality leads. We execute campaigns at any time.How has the Rick Case Automotive Group use mix of organic SEO, which costs less but 4. Create effective, low-cost e-mail cam-achieved incremental sales and a boost in takes time to establish, and SEM which pro- paigns: With our new CRM tool we canprofitability during this growth period? One vides more immediate and predictable results. reach hundreds and even thousands of pros-key to recent success at the Rick Case Auto- SEM ads are purchased through competitive pects and existing customers. We’re able tomotive Group was their switch in technology bids and are easier to budget. create unique mini-commercials that graband training vendors. The group put together 3. Establish a strategy to populate e-mail the customers’ attention and prompt them toa new eCommerce strategy that combines the database: Holding our team accountable come in or contact the dealership. If theypower of search engine marketing, search in both sales and service, we have seen our don’t contact us, our highly trained CRCengine optimization, and e-mail campaigns e-mail address capture rate increase nearly team follows up until they increase traffic. Their new e-marketingstrategy, complete with new Web site tech- THE BOTTOM LINEnology and design, helped generate an aver-age of 5000 leads per month. They’re even • Rick Case used eCommerce strategy to increase sales from 250 to 500+selling an additional 250 units per month out in just 9 months.of their eCommerce Department. • Rick Case Automotive Group is comprised of 14 dealerships throughoutRick and Rita share their Marketing Best Fort Lauderdale, Atlanta & Cleveland.Practices: • and new eMarketing strategy generate an average of1. Build the right Web site: www.RickCase. 5,000 leads per is more than just a Web site; it’s a Vir-tual Dealership which serves as our own re- • The Rick Case Automotive Group used their new e-marketing strategygional buying service. Our site along with to cut cost per sale from $340 per car to only $210.innovative SEM strategies drives more qual-ity traffic to the dealership which increases • The Rick Case Automotive Group uses SEO and SEM to dominate searchleads, reduces reliance on third-party lead engine results.providers, and lowers costs.2. Implement the right balance of SEO/ • Rick Case uses their CRM system to communicate special offers to en-SEM: To attract today’s shoppers, we rely on tire customer database. 14
  9. 9. Red McCombs A Texas-Sized Legend: Selling 500 Online Units per Month Everything is bigger in Texas, including the results from Red McCombs’ digital marketing initia- tives. Successful implementation of digital market- ing strategies is the key to success for the nation’s top per- forming dealerships. Capitalizing on the power of digital marketing, Red Mc- is leading the way to success by establishing Red Mc- Combs as one of the largest dealerships in the country. After successfully estab- lishing their presence on the Web, enabled their eCommerce Department to increase sales volume from 40 vehicles to over 500 vehicles per month! Tony Rimas, director of eCom- merce, provides a summary of what it takes to “Our Digital Marketing System continues to provide us with consistent re- achieve phenomenal success with digital mar- sults, increased sales and customer satisfaction at a lower cost per sale.” keting. - Tony Rimas - eCommerce Director Red McCombs FIVE KEYS TO SUCCESSFUL IMPLE- MENTATION OF DIGITAL MARKETING media enriched Web site and a fully automated only a great Web site, and that’s not the case. CRM tool to create a 24 hour profit center. Tony Rimas explains: “Initially we had a pretty 1. The Right Vision: With the help of a quali- 4. The Right People: In order to get the right nice Web site, but we weren’t getting the results fied automotive Internet specialist, define a results, you need to staff your team with edu- we wanted. We hired BZ Results who provided clear vision of your dealership goals and spe- cated, well trained specialists who are passion- us with a complete digital marketing solution cifically how you plan to get there. ate about what they do. including a high-end, custom Web site, search 2. The Right Strategy: Devise a plan that in- 5. The Right Process: Devise a step-by-step engine marketing, custom multi-media e-mail volves commitment from the top. In order to action plan to maintain a successful CRM strat- campaigns, a CRM tool that automates follow- effect change throughout the dealership, you egy. Monitor and measure all of the dealership up and the training to tie everything together. need management commitment and direct in- lead and prospect activity. Our DMS system continues to provide Red volvement from the dealer to the management McCombs with everything we need to attract, team. Having the right combination of people, tools sell, and create loyal customers. The proof is 3. The Right Technology: Your digital mar- and processes in place will make it happen. keting strategy should include a cutting-edge, in our results.” Some dealers think they will get results with THE BOTTOM LINE • Since implementing its new Digital Marketing System, Red McCombs continues to sell an additional 500 cars a month. • With the right people, tools, and processes, Red McCombs has increased gross profits from $60k per month to over $750k per mo. • Red McCombs uses e-mail marketing campaigns and search engine placement to increase sales and lower costs. • Red McCombs increased its closing ratio from 3 percent to 19 percent by automating much of its follow-up. • Red McCombs uses Search Engine Optimization to dominate search engine placement. • Award winning is generating more quality leads while building customer loyalty.15
  10. 10. Paragon Honda Keys to Success Generate 200% Sales Increase While Lowering Costs The last three years have been quite an ex- perience for Para- gon Honda/Acura and partners Brian Benstock and Paul Singer. Not only did the dealership increase their own Web site sales by a spectacular 1,000 percent, they also in- creased their overall sales by over 200 per- cent according to their factory reports. Results like these have earned www.ParagonCars. com the Golden Web Award and three-peat eCRM Dealer of the Year. What’s the keyto their success? In the latter part of 2003, Ben-stock and Singer decided to completely changetheir marketing strategy to leverage the power “After the first four months we left the newspaper and saved over $100,000 in ad-of the Web and CRM and take the dealership to vertising. The best part is that while our advertising expense decreased our salesthe next level. “After the first four months we increased by almost 200 percent.” - Brian Benstockleft the newspaper and saved over $100,000 inadvertising. The best part is that while our ad-vertising expense decreased our sales increased couple others. 8. Training: Training holds the key to sustainedby almost 200 percent,” said Benstock. 5. People: We staff our CRC with people whose results. To launch our new system, we con- only job is to sell the appointment and allow the ducted a manager’s strategy bootcamp and thenBelow Benstock and Singer share their own top sales person to sell the car. systematically trained everyone in the CRC on10 tips for building an unbeatable e-commerce 6. Process: We’ve been able to increase sales the best phone, follow-up and sales skills the in-and CRM strategy and the secrets to Paragon’s without a drastic increase in staff and overhead dustry has to offer.phenomenal success. because 75 percent of our follow-up process is 9. Measure/Manage: Set up automatic reports automated with a prospect management tool. on everything you need to improve your busi-Paragon 9 Keys to Success: 7. Pricing: Selling cars on the Internet is not ness: the number of leads by source, response1. Start with a Plan: Launching a new Web site, about giving cars away. If we do not ask for rate and time, appointment percent, show per-a CRC and an eCommerce marketing strategy a fair profit we won’t get one so we aim to be cent, closing percent, cost per lead, cost percan be overwhelming. With the help of technol- competitive while maintaining a fair profit. sale, etc.ogy partner, we created a detailed action plan forevery step.2. Technology: Find a total system that includes THE BOTTOM LINEa high-end custom Web site, a suite of multi-me- • Paragon’s overall sales have increased by almost 200 percent incremen-dia e-mails to drive traffic and a prospecting and tally year to date over last year according to their factory reports.CRM tool that automates much of the e-mailactivity. Our Web site generates measurable re- • Paragon’s digital marketing strategy made them No. 1 in Certified Pre-sults: Owned in their region and No. 3 in the US.3. Marketing: Traffic exploded immediatelyupon implementing our new system thanks to • Honda Motors Corp reports that Paragon’s closing ratio increased fromthe use of advanced search engine placement and 9 to 25 percent which translates into a 300 percent higher closing ratiobulk e-mail marketing. We select from hundreds than the national average.of multimedia campaigns to send thousands ofbuzzmails every month to generate measurable • Paragon has decreased their cost per sale from $500 to $100 per unit.traffic at no additional cost.4. Referral Services: Track your closing ratioand cost per sale by lead source and you can • Paragon’s eMarketing has increased the traffic on their site from 4,000eliminate the poor performing lead providers. to 20,000+ new visitors per month.We found that the leads from our Web site have • Paragon has seen a 300 percent increase in the effectiveness of theirthe best closing ratio compared with other lead e-marketing tools which has been the key driver to their overall growth insources, although we did keep AutoTrader and a new & pre-owned sales. 16
  11. 11. Herb Chambers Selling Additional 600-700 Vehicles Online As a young boy, Herb Chambers used to ride his bike to a local dealership just to look at new Buicks. Little did he know that he was destined to become the largest automo- bile dealer in New England grossing over $1.4 billion in sales just last year. An article was recently written for The Boston Globe about how Herb Chambers’ passion for high performance autos fuels his love for the automobile business. The article featured Chambers’ col- lection of 15-20 fabulous new and vintage cars which he loves to drive, and was appropriately entitled, “What Herb Chambers Drives.” With the tremendous success that Herb Chambers “We measure everything and hold regular meetings to discuss our progress and to has accomplished, owning 23 dealerships at find ways to fine-tune our processes. The customized reports give us the informa- last count, a more fitting topic would be, “What tion we need, the number of leads by source, response rate, appointment percent- drives Herb Chambers?” age, show percentage, closing percentage and cost per sale.” - Jay Gubala Herb Chambers purchased his first car deal- ership in 1985 in New London, Connecticut, vehicles. Once he found the right technology visible on the Internet with listings ahead of and within a span of a few years has grown his partner, began to lever- their competitors. enterprise into one of the largest in the coun- age the cutting-edge technology of innovative try. What drives Herb Chambers is his undy- high-impact Web sites and digital marketing To tie it all together, relies ing commitment to provide the highest quality tools like animated multi-media e-mails into on their fully integrated, fully automated CRM service to his customers, and to operate profes- all its dealerships in order to make good on his Tool for measurement and reporting. “You sionally managed dealerships committed to be- commitment to provide the highest quality ser- cannot manage what you cannot measure,” ing leaders in the market areas they serve. vice to their customers. explains Jay Gubala, group eBusiness direc- tor. “We measure everything and hold regular How does Herb Chambers sell an additional Herb Chambers utilizes the ever-evolving tech- meetings to discuss our progress and to find 600-700 vehicles over the Internet alone and nology of Search Engine Marketing and Search ways to fine-tune our processes. The custom- continue to provide the highest-quality service Engine Optimization to ensure top ranking ized reports give us the information we need, to his customers? The answer is revealed in among the world’s most popular search en- the number of leads by source, response rate, the question through the power of the Internet. gines like Google, Yahoo and MSN. An ef- appointment percentage, show percentage, Herb Chambers knew early on that the Internet fective SEM/SEO combination customized to closing percentage and cost per sale,” adds would revolutionize the way consumers buy their needs makes highly Gubala. THE BOTTOM LINE • Herb Chambers is the largest Dealer in New England. • sells an additional 600-700 units per month online. • is a nationally acclaimed award-winning site. • utilizes SEM/SEO to dominate the market. • Herb Chambers was named 2005 and 2006 eCRM Dealer of the Year.17
  12. 12. Courtesy Chevrolet Excusing the Competition: Selling Additional 384 Units in One Month In 1955, on the outskirts of town off of East Camelback Road, the dreams of two individuals become a reality. Edward Fitzgerald together with his partner, R. Mitchel McLure, estab- lished a dealership that was destined to become one of the largest automobile franchises in the Unit- ed States. It all began in an old farm house which served as theshowroom and office, with a tiny shed outback that doubled as a makeshift garage andmake-ready area. In spite of such a mod-est beginning, Courtesy Chevrolet, located “Our new digital marketing strategy and high-end media-enriched Web site havein Phoenix, Arizona is now leveraging the increased our leads by more than 400 percent.”power of the Internet to dominate the market - Scott Gruwellin the Valley of the Sun.Courtesy Chevrolet Vice President and them before they fall trap to third party lead tant factor in launching a successful BDC,Dealer Operator William Gruwell has been providers who sell our leads to competitors,” Scott Gruwell tells us, “If you can’t generatea partner in the business since 1981. Upon Paglia adds. “Our ROI has gone up, our cost traffic, the BDC will be an expensive fail-the passing of Fitzgerald in 2000, Gruwell per sale has dropped, and our traffic and in- ure.” Courtesy relies on CRM tool buzztrakbecame a partner with Mrs. Fitzgerald, and cremental sales have skyrocketed.” In one for e-mail marketing and search engine mar-today they employ over 400 staff members, month alone, gener- keting to generate more traffic. “Our newall of which have helped to build Courtesy ated an additional 384 units with a cost per digital marketing strategy and high-end me-Chevrolet into the icon of success that it is sale ranging from only $125 to $200. dia-enriched Web site designed by BZ Re-today. In recent years, William Gruwell’s sults have increased our leads by more thansons, Mark and Scott, have worked in sales, When asked to name the single most impor- 400 percent,” adds Gruwell.and are now used and new car sales manag-ers, respectively. THE BOTTOM LINEThe Business Development Center at Cour-tesy Chevrolet, under the direction of Ralph • Courtesy Chevrolet uses to promote all of thePaglia, sets the pace in the automobile indus- profit centers within the dealership.try today because of their awesome successin digital marketing. The foundation of the • Courtesy Chevrolet’s BDC helped sell 384 extra cars and generate $582kBDC at Courtesy Chevrolet is a success- in one month.fully implemented Search Engine Marketingstrategy along with a cutting-edge technol- • Courtesy Chevrolet consistently recognized as one of the top Chevyogy rich Web site. Together the combina- dealers in the United States.tion promotes and drives all of their profitcenters within the dealership. Paglia uses • Courtesy Chevrolet was named one of the Top 10 eCRM Dealers of thetargeted banner campaigns as an effective Year 2004, 2005 and marketing medium that allows Cour- • Courtesy’s Web site and BDC took them from 40 sales to 384 sales aftertesy Chevrolet to market directly to people a two-year within the geographic areas aroundtheir dealership. “Our main goal is to be • Courtesy’s cost per sale ranges from $125-$200 since installing theirwhere our customers are and try to capture new marketing and BDC system. 18
  13. 13. Dave Smith Motors No. 1 Dodge Chrysler Jeep Dealer Dave Smith is breaking the mold. Dave Smith Motors is located in Kellogg, Idaho, a small rural mining town with a population of 2,400. With technology cre- ated in-house, Smith is using the power of the Internet to in- crease sales and prof- its - and increase they did. His efforts have yielded Dave Smith Motors the recognition of being the larg- est Dodge Chrysler Jeep Dealer in the world for the third year, and the largest GMC Dealer in the Northwest. Dave Smith Motors is selling over 400 Internet-lead ating/follow-up systems available on the mar- Lead Rocket also helps management track CSI. vehicles a month with CRM technology that ket. I then put in a full-out press on developing All sales associates must maintain a minimum he developed and implemented. But for Ken a Web site and then started developing our of 95 percent customer satisfaction score. At Smith, president of the dealership, size doesn’t Lead Rocket. Today it’s a completely different Dave Smith Motors, they expect high scores, matter. His aggressiveness and creative mind system than what we’d originally developed.” which means associates have to take care has helped the dealership he took over from of the customer. As an intranet system, Lead his father grow to a $250 million business in a Dave Smith Motors’ system also has a CRM Rocket lets anyone within the dealership send county of only 14,000 people. tool to help track leads. It requires site visitors electronic messages throughout the store. The to provide extensive information before they system features in-house classified ads, lists all In the early 1980s Dave Smith developed the can submit the request, which helps get bet- accessory prices and phone numbers for all em- one-price system and continues today with ter-quality leads. Lead Rocket time and date ployees. And, because the system is tied into this “hassle-free” buying philosophy. Smith stamps the leads, and then turns them over their phone system, they know who the caller draws customers from as far away as Alaska, to the Internet team manager who distributes is when they phone and which sales associate California and Colorado because they all get them among the 25 dedicated Internet sales as- they’re working with. the same bargain-basement deal - no haggling sociates. Overflow leads go to the other sales over discounts. When the company first got associates in the main showroom. started with the Internet and CRM, its approach was to sell at a price lower than MSRP-plus, so it started its own pricing system. The com- THE BOTTOM LINE panies had about 10 computer programmers at one time punching numbers to automate pric- • Dave Smith Motors is the world’s largest Dodge Chrysler Jeep Dealer for ing to give customers an immediate, automated three consecutive years. price. They decided that they wanted to be ahead of the competition and ahead of the mar- • Their Web site helps them sell more than $600,000 a month in acces- ket technologically as long as they could. Ken sories. says, “When the Internet came about around • Their system includes a CRM tool to capture information and stay in 1992 we decided we wanted to be the dealer contact with the customer. in the Internet field. At the time we started, we weren’t doing much Internet business, and we • Dave Smith Motors is the largest GMC Dealer in the Northwest. weren’t sure where it would take us. But we did know that if we could be first into it and could keep updating our Internet sites and keep on • Dave Smith Motors has used the Internet and CRM to help grow its op- progressing with it, we might succeed. eration into a $250 million business. That’s why we developed our own system, be- • The dealership has a team of dedicated Internet sales associates to cause at that time there weren’t any lead-gener- handle all inbound leads.19
  14. 14. Harvey Autos Becoming No. 1 Online Dealer in State by Selling 70+ Additional Units/Month Within the last year, Harvey Autos has increased its on- line sales by 70-80 additional units per month, a healthy increase from sell- ing only 5-8 units per month just a few short months ago. This significant in- crease is due to the implementation of a new digital marketing strategy. This small dealership in Bossier City, Louisiana is now on their way tostaking claim of being the largest on-line salesdealership in Louisiana.Harvey Autos hired an Internet marketing con- “Our technology partner provided us with a cutting-edge Web site fully equipped withsulting firm with automobile expertise to de- state of the art features. Our new Web site serves as a digital marketing center thatsign and create their site based on the needs and drives traffic straight to our showroom.” - Gloria Williams, eCommerce Directorinterests of consumers in their region. GloriaWilliams, eCommerce director, explains, “Our ness, it builds value in our dealership. Another keep the customer engaged in the buying cy-technology partner provided us with a cutting- nice feature is “Virtual Test Drive” which gives cle,” added Williams.edge Web site fully equipped with state of the the consumer a multi-media tour of the vehicleart features. Our new Web site serves as a digi- they are interested in. Whether the customer is Now that the BDC Team at Harvey Auto has atal marketing center that drives traffic straight a high-speed or dial-up user, the tours engage good handle on Internet and incoming phoneto our showroom. We used the tools and train- the consumers and intimately connect them to opportunities, the game plan is to grow addi-ing provided by our new partners to establish the vehicle. Other features that our customers tional opportunities with Search Engine as the primary Internet buy- comment on are the unique “Why Buy” buzz- keting. Their goal is for 100+ units alone froming service for our region. Our new Web site is mails or “Trade In Tutorial” micro Web sites the BDC Department and are expanding thekey to generating Internet leads, phone traffic that can be sent to our customers with links to department with another staffer to help withand showroom traffic while promoting all of our specials, coupons and contact forms that the load.our profit centers within the dealership.”Harvey Autos needed to find an effective way THE BOTTOM LINEto lead their new-age customers to their Web • Harvey Autos uses mass Search Engine Marketing to attract new buyerssite instead of to their competitors’ Web sites. because it is inexpensive and produces a high return.Gloria adds, “We also take advantage of ad-vanced Search Engine Marketing to promote • Harvey Autos has trained their people on a successful process to in-our Web site. SEM ensures that we get listed crease their appointments and show ratios.ahead of competitors on the popular search en-gines. I don’t know exactly how the formula • Harvey Autos uses a customer management system to manage andworks, but I know it’s effective. We have seen measure all of their customer activity.our leads more than double and our phones areringing off the hook!” • Harvey Autos uses their CRM tool to automate their e-mail and follow up activity.Results are what effective Web sites are all • Harvey Autos uses Internet marketing to improve their profits in sales &about. “Our Web site has consistently con- service departments while reducing overall advertising costs.verted five to six times more visitors into leadsover our previous site. Because our site was • Harvey Autos has dominated the search engines to create a regionalcreated by experts who understand the car busi- buying service at 20
  15. 15. sts fos ls ms sf fis TomHopkins sales and training solution Arouse Emotion, Don’t Sell Logic What is the emotional something that helps them satisfy their needs, the GPS systems and find no reason to have process that leads to reinforce their image about that purchase. it other than the fact that suddenly they want the purchase of a new Avoid worn-out phrases they’ve heard a it. It’s the latest and greatest. None of their vehicle? It begins with thousand times. Stay away from the words friends have it. They start to feel excited, a new development in clients stopped believing years ago. important and “rich” in thinking that they’ll the buyer’s self-image. be ahead of the crowd by being the first inThat is, the buyers see themselves in a new Concentrate on your customers. Say their group of friends to own it.way — as the owners of that new car, truck, sincere and positive things that reflect theirvan or SUV and all the status it affords uniqueness, and you’ll not only make sales, Or, they might be feeling the pull to get itthem. you’ll create clients who’ll send you referrals because their friends already have it and and buy from you again. can’t stop talking about how cool it is or howIf the projected vehicle purchase is small much time it has saved relation to the buyer’s income, the self- The key is to be disciplined to wait forimage change need only be small. But if the positive input. Unless you do that, you’ll find As you work at developing the skills to evokepurchase is a large one, the change in self- yourself going on and on about something emotions in your customers, always keepimage that makes the purchase possible will they don’t like, and before you know it, that concept in mind. You can destroy salesbe large. Such a change can come about very you’re caught in a web of obvious insincerity. as rapidly as you can create them through thequickly, though. It can take place within a Stick to the facts. clumsy use of, or the lack of control over,few minutes, or even within a few seconds. the emotional setting. Also remember that The mere fact that you’re a sales person will your actions, manners, words (how you sayChampion automotive sales people are adept arouse their negative emotions and they’ll them), your grooming and your clothes areat spotting these changes in self-image as want to emotionally fight you. You need all things that trigger emotions in your futurethey occur during sales presentations. They to get their emotions focused on their own clients — whether you want them to or not.are quick to reinforce the buyers’ realization needs and desires in relation to the vehiclethat they can have, enjoy, deserve, need and they’re interested in. Then, you’ll build their There’s no way around it. People willare worthy of the marvelous new vehicle emotions to where they will have convinced react emotionally to you. It is importantthey like. Do that, and they won’t just like it; themselves of the decision to own. not to have them react with fear, anger orthey’ll want it, need it and realize they can’t disgust. To see some sales people approachget along without it — then they’ll buy it. To get a thorough education in the emotions clients as though they had just fallen off the that sell, watch television commercials, garbage truck, you’d swear that they don’tFirst, be genuinely interested in doing your especially those aimed at children. Logic realize that future clients have feelings, for them. Once they see that you’re in sales is a gun without a trigger. You can Clients suffer the effects of fear when aon their side, they’ll begin to like you and twirl it all you care to, but you can’t fire it. sales person comes on too strong; clients gettrust you. Then, they will tell you what Emotion is the trigger. You can hit the target angry when a sales person patronizes them;they’re seeking to accomplish. Rise above with it. Every time you generate another clients feel disgust when a sales person isthe limitations of your own tastes and positive emotion, you’re pulling the trigger non-professional. Play the odds. Alwayspreferences. Recognize that what’s right for on another accurate shot at closing the sale. be professional and keep their emotions inyou isn’t right for everyone, and make an mind when meeting new people. Do that andintense effort to see the world through your No skill that you can acquire in sales will you’ll close more sales.customer’s eyes. enhance your earning power more than learning how to arouse emotions in yourSecond, use your expertise to guide your buyers in ways that are positive to the sale.customers to the best solution, which your The exact words that you use will depend on World-renowned master sales trainer Tominventory provides, for them. your offering, your personality, your buyers Hopkins is the chairman of Tom Hopkins and market conditions. International. He can be contacted atThird, wait for positive stimulus from your 866.347.6148, or by e-mail atcustomers. If you believe they’ve found Some clients will see a new feature such as 22
  16. 16. sts fos ls ms sf fis BrianTracy sales and training solution Continuous Learning Throughout the period of retirement which would be paid for Senge, who wrote The Fifth Dimension, developed world, we by Social Security, savings and pensions. says that only learning organizations, those have moved from an organizations that are capable of taking in new era of manpower to an Today, with workforce requirements changing information, adapting it and using it faster era of mind power. We so rapidly, you must continually be asking than their competitors, will survive in the fast- have moved from the yourself, “What is my next job going to be?” changing, competitive world of tomorrow.use of physical muscles to the use of mental You must also be asking yourself, on a regularmuscles. Today, the chief sources of value basis, “What is my next career going to be?” The more you know, the better you will bein our society are knowledge and the ability at solving problems and getting results forto apply that knowledge in a timely fashion. Imagine for a moment that your entire which people will pay you. The more youIn the information age, knowledge is king, company or industry vanished overnight and know, the more freedom and opportunity youand those people who develop the ability to you had to start all over again in an entirely have. The more you learn and the faster youacquire new and better forms of knowledge new business doing an entirely different learn it, the more rapidly you move upwardthat they can apply to their work and to their job. What would it be? And don’t think this and onward in your career and in every otherlives will be the movers and shakers in our question is speculative or that it applies to area of your life.society for the indefinite future. someone else. It is a question that you will probably have to deal with, perhaps far sooner Between where you are and where you wantWhen you learn and practice the techniques than you expect. In thinking about your new to go, there is almost always a gap, and infor rapid learning, when you join the learning job and your new career, here is the most almost every case you will find that you canrevolution, you will learn how to unlock the important question of all: “What do I have to bridge this gap with knowledge and skills. Inincredible powers of your mind. You will be absolutely, positively excellent at doing, in order to get from where you are to your goals,learn how to become smarter and faster than order to earn an excellent living in my new you have to learn and practice something newever before. You will learn how to become a job and my new career?” and different. You have to learn new skills andmaster of your fate, rather than a victim of abilities. You have to learn new attitudes andcircumstances. You will learn how to take The solution to almost every problem in methods. You have to learn new techniquescomplete control of your present and future the world of work is to learn and practice and practices. If you want to be a better parent,destiny so that you can accomplish and something new and different. When you learn you must learn and practice better parentingachieve anything you want in life. how to use the incredible power of your brain skills. If you want to be a better spouse, you to absorb and apply new ideas and information, must study and practice relationship skills. IfKnowledge is doubling every two to three you will be able to lead the field and rise to the you want to earn more money, you have toyears in almost every occupation and top of any profession or occupation. determine what it is that people will pay moreprofession, including yours. This means that money for, and then get busy learning andyour knowledge must double every two to three Here’s another question for you: What is practicing those behaviors.years for you to just stay even. People who are your most valuable asset? In terms of cashnot aggressively and continuously upgrading flow, what is the most valuable thing you Specific knowledge and specific skills willtheir knowledge and skills are not staying have? Well, unless you are very rich, or have become obsolete with the passing of time,in the same place; they are falling behind. a family trust account, your most valuable but learning how to learn is a permanent skillYou see this demonstrated all over the place asset is your “earning ability.” It is your that you can use all the days of your life. Thewith massive lay-offs, declining wages and ability to apply your knowledge and skill in a people who join the learning revolution, andgrowing insecurity in the workforce. You see timely fashion to get results for which others who learn how to learn faster, like those peopleit in the increasing bewilderment and despair will pay. who first learned how to operate computers,on the part of people who are being displaced or learned how to become excellent in theirfrom low-skill jobs which have either moved All your education, knowledge, experience, fields, will be able to earn more in one or twooverseas or disappeared altogether. We are reading, training and work have contributed years of work than the average person earns inin the midst of a societal revolution where toward building up your earning ability. perhaps five or 10 years.unionized industrial workers are becoming According to the research, the so-called “rich” are almost invariably people who By joining the learning revolution, you willa smaller and smaller percentage of our started from common beginnings, often with enhance every area of your life. You will beworkforce each year. great disadvantages, and then overcame those able to help your spouse and your childrenAs recently as the 1950s and 60s, it was circumstances by investing an enormous unlock and realize more of their individualcommon to believe that you finished your amount of time and effort on developing their potentials. You will be a better friend inschooling, got a job with a large company and earning ability. And you can do the same helping your friends use more of theirstayed with that company for the rest of your thing, starting today, or at any time. abilities. And you will be a better manager,life. This was based on the old paradigm of developing the skills that will enable you tolearning. In this old paradigm, life was divided Management consultant Peter Drucker get far more out of yourself and other peopleinto three parts. First were your “learning” says that the truly educated person today than ever before.years, during which you got your education, is a person who has learned how to learnhowever extensive or limited. Then came your continuously throughout life. Tom Peters says Brian Tracy is the chairman and CEO“earning” years. This was the period of time that continuous learning may be the only real of Brian Tracy International. He can beduring which you worked for a living. After source of sustainable competitive advantage contacted at 866.300.9881, or by e-mail atthat came your “yearning” years. This was the for individuals and corporations. And Peter 24