AutoSuccess Dec03


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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 Dec03

  1. 1. Get your own personalized Louisville Slugger Baseball Bat free! pg.3 .bizDecember 2003 PERMIT NO 879 LOUISVILLE KY PAID Louisville, KY 40202 US POSTAGE Suite 202 PRSRT STD 756 South 1st Streeta division of Systems Marketing, Inc.
  2. 2. Contrarian Sales, Management and Marketing Concepts Mark Tewart’s - Guaranteed Program for Success Are you having trouble getting your sales to the next level? Mark Tewart’s - G.P.S. will get you the results you want or you don’t pay!This is not just sales training! We offer total individualand organizational development with an emphasis on guaranteedimplementation. After our organization has conducted an extensive surveyof your current results, environment, and your desires for the success ofyour dealership, our certiÞed staff will work with your sales people andmanagers through various methods to ensure that you get to the next levelor you don’t pay. We won’t accept every dealership into the GuaranteedProgram for Success. A lot of dealers say they want greater success butaren’t committed enough to get the results they say they want. If you arecommitted and have a burning desire to reach another level of sales, grossproÞt, customer satisfaction and have a truly professional team...Please call 866.429.6844 or 513.932.9526 and ask a Tewartrepresentative about the G.P.S. program. “We are having record months since using Tewart Enterprises for training, and I believe that Tewart Enterprises can take any dealership to the next level.” FREE Newsletter!Go to Ron Whittaker, Springfield Ford, Springfield, OH & click on newsletter. Call today for a FREE Consultation 866.429.6844 5 1 3 . 9 3 2 . 9 5 2 6
  3. 3. AutoSuccess, the only sales-improvement magazine, has teamed upwith cross town Louisville Slugger to bring you the best double playin the business. Order your 1 year subscription to AutoSuccess at oureveryday price of $75 and get your own official, personalized LouisvilleSlugger Baseball Bat FREE! Additional subscriptions are only $37.50and additional personalized bats only $39.95. CALL TODAY! 866.269.8604
  4. 4. manager I N S I D E driventeam operation uccessrevenue automobil6 solutions How to Increase Customer Satisfaction and Generate F&I Income George Jackson profitprofessional7 Media Strategy and Planning: Frequency vs. Recency Jeff Fishel8 Avoid Losing Customers When You sales Lose or Promote a Sales Person, Part 2 Joe Verde10 Presentation Demonstration: Building Value and Profits Terry L. Isaac11 Individual Sales Coaching Steve Hiatt12 2004 eDealers of the Year Patrick Luck16 Nine Steps to Building Productive Sales People Patricia Gardner17 Reduce Your Customers’ Anxiety Frank Martin18 Increase Sales By 25 Percent Mark Tewart19 Ask Not What Your Sales People Can Do For You Ask What You Can Do For Your Sales People Sean Wolfington20 CRM Solutions: Full Integration Is the Key Mark Przybylski21 The WOW Factor David Thomas22 The Right Words Make for Strong Presentation Bob Schultz A cure won’t just save children. Mary Tyler Moore It will save childhoods. International Chairman These kids live with 4-6 insulin injections daily. Plus, they face the threat of blindness, heart attack, kidney failure and amputation. Their only hope is research. The Juvenile Diabetes Research Foundation is closer than ever to finding a cure. Help us help them. Call 1.800.533.CURE or visit dedicated to finding a cure Psalms 37:3-5 Patrick Luck, Editor & Publisher inventory Success Driven Solutions • Trust in the Lord, and do good; so Susan Goodman, VP of Operations you will dwell in the land, and enjoy • security. Lindsay Porter, Copy Editor Take delight in the Lord, and he will 756 South 1st Street, Suite 202 • give you the desires of your heart. Louisville, Kentucky 40202 Courtney Hill, Advertising Services • courtney@autosuccess.bizCommit your way to the Lord; trust in Toll Free: 877.818.6620 Kelley Humkey, Advertising Services him, and he will act. • Facsimile: 502.588.3170 In God We Trust Web: Thomas Williams, Creative Director dealer • thomas@autosuccess.bizAutoSuccess Magazine is published monthly at 756 South First Street, Suite 202, Louisville, Kentucky, 40202; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorialsand graphics are subject to editing for grammar, content, and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; viewsexpressed 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. AutoSuccessmay occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA.Postmaster: Send address changes to AutoSuccess Magazine, 756 South First Street, Suite 202, Louisville, Kentucky 40202.
  5. 5. It’s WAR Out There! BATTLE PLAN TMJames A. Ziegler Presents: Brought to you by: Dixon Odom PLLC “ Are your troops prepared to fight for higher ” profits? DATE: MINAeRport Beach, CA SE 004, N w TION: 2 J an. 8, AR LOCeAnis Club SEMIN Hotel & T n Dr. t Marriot0 Newport Center A C 90 t Beach , Newpor .640.4000 49 Hotel: 9 MOBILIZE • Ziegler’s Methods, Programs and Advertising Secrets to YOUR TROOPS Drive Floor and Phone Traffic in the fight for higher profits where they will learn: • Projects to Control and Measure the Sales Effort in an• How to Maximize Existing Profit Centers and Create erratic market New Ones • Growing Sales Volume…Integrating Prospecting and• How to Ensure that your Dealership doesnt Waste a Lead Generation programs into day-to-day activities Single Opportunity to do Business • Tips, Tools and Techniques that produce immediate• CSI Engineering Projects…Building Value at ALL levels results• Dealing with Credit Realities in the 21st Century • Internet strategies that pay
  6. 6. f&i solution GeorgeGeorge Jackson By Jackson How to Increase Customer Satisfaction and Generate F&I Income If you truly want to you should do is accept the decision “Mr. Customer, the plan you chose is a maximize your F&I and acknowledge the choice. You know good choice. Based on what you told me income, you must you are going to attempt to sell more earlier, (in the interview) I thought you improve your step- products, so at this point, just accept the might have picked this plan. Is it because sell skills. In order customer’s choice. If you attempt to step- of the payment or did you simply have ato be successful at step-selling you must sell too quickly, you may be perceived as question about the coverage?”do these four things well. combative, and the customer may not be open to your approach, no matter how If the customer says ‘payment’ address theInvest in yourself. good it is. payment concern by soliciting additionalConduct a thorough interview before the cash, adjusting your service contract plan,menu presentation. Skipping this step puts “Good choice Mr. Customer. Let me get term, or deductible, or by offering singleyou in a poor position to step-sell. It may your paperwork ready.” life insurance rather than joint life. Theretake a few minutes longer to do a thorough are many ways to offer payment relief,and complete interview, but the time you Establish the objection. just be sure to work with the customer’sinvested will come back to you in the form You have to establish the objection before interest in mind and not your own. If theof higher product penetrations and more you can overcome it. Usually it is payment, customer simply has a question, answerincome. but don’t make any assumptions. Let the it as honestly and succinctly as possible customer tell you. You may think you and then ask, “Do you have any otherAccept the customer’s decision. know, and you could easily be wrong, or questions about the coverage?”Once the customer chooses one of the the customer could come up with anotheroptions on your menu, the very first thing objection just to avoid buying. Ask for the sale. Many good presentations don’t result in a sale only because the business manager never did ask for the sale. Closing questions such as “So what do you think,” or “Should I get the paperwork ready,’ are poor attempts to bring the customer to a decision. These direct closes can lead to a ‘no’ as easily as a ‘yes’. If you just Log 200-500% more opportunities! addressed the customer’s objection or question in an intelligent, articulate and honest manner you have every right to Leader in Showroom Traffic, ask them to buy your product in a more Lead Management, positive manner. and CRM Software “Mr. Customer, with your additional Track all outgoing real-time showroom & desking control downpayment of $500, your new payment phone activity including the coverage would be $450 for internet lead tracking system 60 months. This is based on 30 days to first 2-way active DMS integration payment or would you prefer 45 days?” complete in-store training For higher penetration levels you have to Minimize data entry step-sell, and in order to be successful at with license scanner drivers license scan, worksheets it, you have to have a game plan. Although & credit bureaus it is great when a customer picks the plan with every product you offer, you have to expect them not to and be prepared to address objections. Invite the objections, track more because without them you probably won’t The Higher Gear Group, Inc. get the sale. bring back Hoffman Estates, IL 60195 more tel 866.873.0029 fax 847.310.3196 close George Jackson is the Director of F&I Training for American Financial & more call for a FREE consultation and demonstration Automotive Services, Inc. He can be contacted at 866.280.0301, or by email at 6 subscribe today at
  7. 7. marketing solution Jeff Fishel By Jeff Fishel Media Strategy and Planning: Frequency vs. Recency In last month’s Consult with your dealership’s advertising article, we agents regarding your own market, considered the need advertising goals and budget. for urgency within your dealership’s You need solid media planning to deliverculture and advertising. The ‘now’ market your ad messages to the now marketwas defined as the consumers within your effectively and efficiently. First begin byreach at any given time who could be deciding who will place your media.persuaded to purchase a vehicle right now.Also, a direct marketing approach was Radio, TV and print sources sell theirexplained to better target the now market products in the form of time-slots or ad-with your specific advertising messages. space that are available each day. Media firms conversely, do the science first,If the success of your ad promotions then negotiate with all outlets so as todepend upon pulling larger percentages present you with total audience for your adof now buyers to your dealership, then messages.your ad messages must be delivered tothe now market on a daily basis. This Secondly, determine your ad budget.involves media strategy and planning. Depending on your market and overhead,Currently there are two opposing theories somewhere between 10 - 15 percent ofin advertising regarding media placement your combined new and used gross profitstrategy: frequency versus recency. is a good average. Consider providing your media agents with an annual budget andThe frequency theory focuses more on negotiate with them using the whole year’stargeting specific demographics, like total. Planning up to one year ahead allowsages 18 to 54, or male versus female, and you to select your best promotional days,then hammering these consumers with a weeks and months of the year and can,minimum of three impressions of your ad’s potentially, save you up to 40 percent inmessage. The premise behind the frequency your annual media expenditures.theory is that the first time a consumer hearsor sees your ad there is very little, if any, Lastly, select your most effective media andretention. The second time your message is dominate. Don’t spread your advertisingheard or seen the consumer will take more messages too thin. Instead, dominate thenotice. And finally, after three or more mediums that will best reach the nowimpressions, the targeted demographics in buyers in your market. If its direct mailyour market are motivated to act. or newspaper inserts, go with maximum quantities. If it’s traditional newspaper, goThe recency theory, on the other hand, with a minimum one-half page above thedisregards the concept of mandatory fold, in full color. And if its radio and TV,multiple impressions in advertising and strive for the most media points in multiplefocuses instead upon your total market day parts as your budget allows.exposure. Advocates for recency argueonly one impression of your ad’s message Structure your media strategy and planningis required, provided it is seen or heard by a so as to make the delivery of your adcustomer who is ready to buy now. messages BIG and BOLD. Whatever media strategy you choose, be it frequency,Based upon this principle, recency theorists recency or another method, your mediaassert it is better to throw a large grid planning should always focus exclusivelyto reach maximum now buyers in your upon reaching the now buyers within yourmarket, than it is to repeat your ad messages market at all times.into specific, smaller demographics viathe frequency method. From a statisticalpoint of view, recency advocates claim Jeff Fishel is the National Salesthe frequency model will reach smaller Director for,percentages of the now market. Therefore, andthey maintain it’s better to use mass media reaching the majority of now buyers just He can be contacted atbefore they buy. jeff@Þ 2003 7
  8. 8. leadership solution Joe Verde By Joe Verde Avoid Losing Customers When You Lose or Promote a Sales Person, Part 2 We all lose a sales follow up John’s customers when he leaves. records are correct, are you still at 312 Oak person at some time Question: Did they follow up on their own Street, etc. ... and how many drivers are in or another. The most customers when they got promoted? your family these days? How many vehicles important thing you Fact: When you promoted your best sales do you have now ... and of the drivers in your want to do when that people to management, you probably lost family, who’s next in line for a new or usedhappens is to maintain your customer for the all of their customers, too, at the same cost vehicle?dealership. This month, let’s talk about some as losing John’s customers now, becauseways to maintain you customers when a sales you didn’t have a plan in place. Or, your • Send a postcard or letter to everyone Billperson leaves and include some tips on how managers’ previous customer base trickled hasn’t personally met at this point and thento build your business even more. down, month after month, once they were follow up each one by phone. 45 / 90. Now promoted. Now they’re down to almost Bill needs to maintain contact by mail / e-mail1. Set a goal. nothing. You handed all of their customers every 45 days (his newsletter / birthday cardsCommon sense says the first thing you want out as house deals to sales people who didn’t / notes) and by telephone every 90 do is save those customers. follow up. In real life, you just gave away free money to lose customers. 2. Hire a sales assistant for John2. Make a plan. (and for all of your high achievers).Initially you should consider the things that What will work when you know you’re Why? Because good sales people run intoprobably won’t work. losing a sales person. a time management problem at some point when they start selling more. That meansThe hope plan. 1. Turn all of John’s accounts. they get so bogged down in the ‘stuff’ thatFirst of all, you can’t just hope that John’s Who do you turn them over to? Only to goes with selling lots of units, they can’t sellcustomers will still come back in to the another sales person who has the same any more than they’re selling now.dealership for their next vehicle. If you selling style as John who does follow up.haven’t noticed, that doesn’t actually • I personally hit the wall at about 18 tohappen. • How do you turn them over? Not with just 20 units. Then my wife helped me getFact: With little or no follow up, 63 percent of that postcard or letter that says, “John isn’t organized, set up my computer follow-upyour customers have no intention of buying here anymore and Bill has this account.” and made some calls to help set and verifyfrom the same sales person or dealership Instead, introduce their new sales person, appointments. This will help you break intothe next time they’re ready. And since your Bill, to every one of John’s customers, at least the 30s.dealership itself probably doesn’t have an on- two or three months before John is leaving or Tip: If you have high achievers and if yougoing follow-up program for each customer, getting promoted. Have John introduce every want them to increase their production by atthey won’t be coming back if John isn’t there single person he talks to on the lot (up front least 50 percent, get them some help so theyto maintain his contact with them. or in service) to Bill. “Bob and Betty, I want can become more productive. you guys to meet Bill. You know I’m retiringGiving them to the new guy. soon (getting promoted / leaving soon) and • What would a sales assistant do? A salesWhy in the world would you give your Bill is taking over all of my accounts, and assistant would do tons for any goodbest prospects (and/or orphan owners) to you’ll both love working with him.” sales person (current, 90 day average of atthe newest sales person you have who, least 15+ units). Use the things listed, juststatistically, won’t be there even six months • Have Bill send a thank you note. Bill needs remember the primary goal in this article isfrom now? to visit with them, build rapport and as soon for them to either take over or maintain aFact: 82 percent of the new people you hire as they leave, Bill needs to send a preprinted sales person like John’s existing accounts.will be back out of the car business within note that says, “I enjoyed meeting you today,their first six months. (92 percent in one year.) and I look forward to working with you.” • The steps to success. Have John introduceWhy? No training and poor management. Add a short, personal ps like,. “hope the kids his assistant. Have John introduce everyone won the ball game yesterday.” to his administrative (sales) assistant, Ann,Giving them to the other sales people. “Bob and Betty, I want you to meet Ann. YouYou can’t give John’s customers to the • Immediately put them in the computer for guys know I’m retiring soon (moving / beingother sales people. Why would you? If future follow-up. Depending on what they promoted) and Ann will be taking over all ofthey don’t do any follow up now with their did (bought a car, had their car serviced, my accounts. You’re going to love workingown customers, they won’t follow up with etc.) set an appropriate follow-up call for no with her. In fact, you guys spend a fewsomeone else’s. later than 30 days out and put them on Bill’s minutes getting to know each other while IFact: 90 percent of your sold customers are regular 45-day mail out for his newsletter. pull that car around for you to look at.”never contacted again by their sales personabout buying another vehicle. • Call them. They enjoyed meeting Bill Have the new assistant help John do initially, and now it’s time for Bill to everything. Some examples to help John:Management following-up. reestablish and extend the rapport he startedYou could have management start following building in their first conversation by phone. During the sale.up on customers, but it won’t work. “Ann, do me a favor, I have another customerManagement doesn’t have the time to even • Ask for referrals. This first follow up call is that I need to finish up with real quick. Wouldtrain, track and manage their sales force, also the perfect time for Bill to update their you take Bob and Betty on a demonstrationmuch less take on the responsibility to records, “Bob, let me just make sure our drive, they want to drive the blue GS.” (Of 8 check out
  9. 9. continuedcourse John has to teach his assistant what to the value of building a solid customer base Extra benefit: By helping management withsay and what to do on the demonstration.) of her own. their previous customer challenge, these management assistants would also developDuring the write up. 3. Save the dealership $480,000+. a 100 percent repeat business, again with“Bob, I’ll be right back. Ann, while I finish There is one catch, though, that kinks the lower expenses and higher profits. In fact,up with that other customer, go ahead and plan for most dealerships. as soon as they’ve worked with enoughstart the paperwork for me.” (Teach her how, The dealership has to pay for the assistant customers to build their own customer base,first.) and you can’t charge John. you’ve just developed another sales person with 100 percent repeat business. And youAfter delivery. Reasons. could eliminate the “I want a promotion,”“Hi Betty, it’s Ann, John wanted me to give • The dealership benefits most. You’ll pick from your best sales people if you took betteryou guys a call to make sure you figured up a 50 –100 percent increase in units, and care of them. You could stop your promotionout how to use that CD player and to see if the dealership will receive about 80 percent losses and build that great selling team had any other questions about your new of the benefit of those additional units. Plus, But to do that, you have to help your topcar.” (Of course, you have to teach her about you’d want all of your good 15-20 car guys people do better and reward them for it. Andfollow up, too.) to get to 30+ units per month. that means you can’t help them get good and cut their pay because they did.Regular follow up down the road. • The sales assistant works for you. If Bob“Hi Bob, it’s Ann. John asked me to give you paid for his own assistant, he or she would It is some trouble to make these changes.guys a call to remind you that it’s about time work for him, not the dealership. I’d also But, when you stop turnover, train and helpfor that first oil change. Did you want me to think it would be in your best interest to your managers become more effective, andschedule it?” control this situation. Administrative people build your customer base, your dealership for your sales people work for the company. becomes ‘management driven’ instead ofMail outs. You loan them to your sales people to help ‘market driven’ (weather, economy, 0 percent“Bob and Betty, John and I just wanted to them. That way, management controls who financing, etc.).wish you both a happy holiday, Ann” does what. Dealers and managers are shocked to findIncoming calls for John. Here’s another thought. Why wouldn’t you that there are so many ways to increase sales,“John’s office, this is Ann. (response) Oh, also hire a sales assistant to do management’s and especially the types of sales that sendhi, Bob. (response) John is with a customer, stuff and to take over all of their customers, almost all of the extra gross profit straight towhat can I help you with?” orphan owners and all of those management the bottom line to double or triple your net house deals you’re giving away every day profit almost overnight.Are you starting to see how you now? Right now you give sales peoplethe customer and develop a new sales person. free deals for doing nothing, and they don’t Save 1/2 million dollars this month. TrainBecause she knows all of John’s customers, follow-up the customer. (Save the ‘they your managers to lead and your sales peopleyour new sales person, (Ann) starts off at 15 deserve it’. Subtract house deals from their to sell, and build your business so you canor 20 units per month with 100 percent repeat sales totals and you’ve got a bunch of six to switch from 70 percent ‘market driven’ tobusiness if and when John ever leaves your eight car guys.) 100 percent ‘management driven’ today.dealership. This administrative person would help your Joe Verde is the President of The JoeThink about it, she has never talked to a managers do the things they do that keep Verde Group. He can be contactedwalk-in customer, she knows how build them from training and managing your sales at 866.429.6689, or by email atrapport, present, demonstrate, sell, follow people, which costs you even more sales, or visitup, and she definitely knows how to and sees every day from them, too. 2003 9
  10. 10. sales and training solution TerryByL. Isaac Terry L. Isaac Presentation Demonstration: Building Value and Profits Your presentation 4. Product knowledge. 7. Demonstrations. demonstration, Studying the vehicles features and benefits Vehicles are made to be driven. To complete whether short or long, should be weekly training using the an effective presentation demonstration you is the step in which information provided by the manufacturer. must end with a driving demo. This means all your preparation Many factories are now providing online the sales person drives the vehicle first, notis put on stage. Here you show the features training. the customer. The reason for this is thatand benefits of the vehicle to build value the sales person has only demonstrated theand justify cost. You turn the prospect from One of the most effective ways to keep your outside features and benefits and still needslooking, to wanting the vehicle. Most sales sales team sharp is a weekly walk around to complete the selling of the product.people want to talk price instead of selling competition. The walk around competitionthe vehicle and themselves; this process starts with seven categories. In each of the 8. Justifying value.cost you profits. Continuing training in categories, write down the features and Justifying value by showing the features andthis area is the key to developing a sales benefits to be shown by the sales person. the benefits of the vehicle will justify theprofessional that will produce results from Write down a minimum of eight questions price of the vehicle. Building value buildsevery prospect. for each category. Have the vehicle you are profits. The customer will be more inclined going to use put in the showroom the day to pay a profit.The major ingredients of a successful before, in case of bad weather. Make it fun,presentation demonstration are as follows: get some poker chips to give to the sales The job description of the sales person person who shows a feature with the benefit, is to demonstrate your product to every1. Be conÞdent. the sales person with the most chips wins. prospect that enters your dealership, withoutA sales person must believe in them self Have a prize or some type of a reward. exception. The goal of every dealership isand the vehicles they sell. They must feel to demo 100 percent of the opportunitiesthat they have the best product in the market Category examples are safety, performance, provided by you and your advertisingto a point of exuberating excitement that utility, comfort, styling, competition, what’s dollars.will spill over to the customer. To be ‘just new for 2004.confident’ is not enough, you must sound The ROI will never be produced without theand move with confidence. 5. Selling the sizzle. demo percentage. A sale is a reward of the Zoom, zoom of Mazda is a good example of job that the sales person implements with2. Motivate the customer. the sizzle. The sales person needs to speak every customer.The presentation must be a motivating with a high pitch voice of excitement to fireexperience for the customer to decide to buy up the The speed of the sales person equals thespeed of the customer. 6. Controlling the presentation. Controlling the customer is a challenge3. New or used. for every sales person. The presentationBuilding value in a new vehicle is easier than demonstration must have a process to followused because of the factory product material in order to gain control of the customer. The Terry L. Isaac is the Corporate Salesand programs. The used car manager must time a sales person spends with the prospect Trainer for the Neil Huffman Auto Group.take on the responsibility of teaching the gives the prospect and the sales person time He can be contacted at 866.265.4680, orfeatures and benefits of the used inventory. to establish common ground between them. by email at 10 visit us at
  11. 11. sales and training solution SteveSteve Hiatt By Hiatt Individual Sales Coaching Coaching a sales in. Write a script out or buy some from a no one fresh walks in, who will they sell person is the fastest sales trainer and role play the call. Sales today? Give tips that can increase their way to get a return people are often afraid to call because they productivity, so the day isn’t spent waiting on your investment. don’t know what to say or how to say it. for something to happen. The best way todo that is through one-on-one meetings The goal of the call is to get the customer Remember to keep all sales peoplebetween your managers and sales people. back in, and it needs to be practiced. Then accountable for whom they talked to, whatThese meetings flush out extra car deals, listen in on the call the sales person makes happened, and having adequate contactmotivate and encourage your staff, and be prepared to give them positive information so they can follow up withspotlight opportunities to improve skills, feedback. Tell them specifically what they anyone they haven’t sold.create better work habits, and lessen did right, and then give them a tip on howemployee turnover. to improve a part of the call. Make time to hold individual coaching sessions, have a plan for each one, makeManagers need to be coached on how to Be prepared to make the call to the adjustments for different personalities,hold a positive and productive one-on- customer yourself, in front of the sales focus on improving their skills and habits,one. For some managers the only one- person. As a manager, you automatically and, above all, find a deal. Those extraon-ones they received may have been less add clout to the situation, and the deals build credibility with your team andthan motivational. customers will speak much more freely. make the next one-on-one a meeting that (If you don’t have a call script for this, call your sales people will look forward to.Realize that coaching people to success me and I will get you one.)means you may have to do things that Steve Hiatt is the General Salesare foreign to you. Managing against As you continue your coaching Manager of Hiatt Pontiac GMC, Hiattthe mega-dealerships and low price opportunity, zero in on your sales persons Outlet and Hiatt of Auburn. He can beadvertising requires creative thinking. attitude. No one has one single attitude; contacted at 866.265.5616, or by email people have thousands of attitudes toward at’s examine a few ways to coach your thousands of things. Someone may have ateam to success, sales and income. great attitude about the game of football but a lousy attitude about cottage cheese.The number one goal of Find out about their attitudes that effecta one-on-one is to Þnd a car deal. work. How do they feel about sales? HowFind a happy sales person and you find are they coping with rejection or evenone that is selling cars, find an unhappy success? Where is their confidence level atsales person and you will find one that for taking walk-ins, prospecting or callingisn’t. Most sales people think that they are sold customers? You may find you needonly having a one-on-one for two reasons: to suggest scripts to practice to improve athey are going to get admonished, or the skill. It might help to suggest tapes or cdsmanager is holding it to keep their boss to listen to in the car on the way to workfrom chastising them. The way to get that are motivational to combat rejection.around this is to help the sales person find It may be that you are just there to listen, Heard the buzz? Find out for yourself what it’s all about. CarChip is “a useful tool for the professional,” says one service They will start to look forward to offer encouragement or provide that one “Technicians dealing with intermittent issues can program CarChip tothis type of coaching. little suggestion that makes the difference monitor suspect circuits, and then return the vehicle to the customer.” with that next customer. It’s affordable, so there’s no need for large deposits. And once your customers find out about it, they may very well want one forWhen starting a one-on-one, let the sales themselves! Attractive packaging and full-color point-of-sale displayperson know your goal is to help them One time during a one-on-one, I found help make the sale—adding to YOUR profits!make money and that to do that you need that my sales person had a great closing Monitor any 4 out of 23 possible engine parameters including:to see what prospects they have. The leads ratio on people demoed, but he hardly had • RPM & engine load • Fuel trim • Intake air temp • Throttle position • Battery voltage • Intake manifold pressureneed to be organized in a prospect list, a any demos. We immediately role played • Fuel pressure • Timing advance • Air flow ratemonthly planning guide or floor log. Look the situation and found the ‘fatal flaw’ • Fuel system status • Coolant temp • Oxygen sensor voltageinto each prospect and ask questions: What that was preventing demos. Once we role Plus trouble codes, freeze-frame sensor readings, speed, distance,happened? What were their hot buttons? played a new way, he sold seven cars in and accels & decels. Up to 300 hours of trip data—all for just $179! Plugs instantly into OBDII port. Download to PC forDid they drive? When was the last time the next 10 days. That is what individual detailed analysis and called them? What did you say? coaching is about. ner Ask how YOU can become Win d eere an authorized reseller! Engin duct Bestew ProNext, work on their skills. The information The next step is to spotlight their work Nyou just gained opens so many areas to habits. How can you help them make TM ™ AUS0310work with your team. In order to get the their day more productive? For starters,customer back in, the first skill is usually do they have a daily planner? Is it set Davis Instrumentsthe phone, especially outgoing calls. Focus at the beginning of their shift with a ‘to 3465 Diablo Ave, Hayward, CA 94545 866.297.3152 • www.carchip.comwith them on how to get the customer back do’ list for the day? Most importantly, ifdecember 2003 11
  12. 12. feature solution Patrick Luck By Patrick Luck 2004 eDealers of the YearWe are dedicating our December issue everything we spend. To give you an Their pricing: How do they handle pricingto honor the top six eDealers of the year. example, our average cost per sale is $300 to ensure they get a fair gross profit?Unlike other awards, the criterion for the with our traditional media, yet our cost per Their reporting: What do they measure to‘eDealers of the Year’ award was based sale on the Internet is only $135 per sale.” ensure they are always improving?solely on results. Results were measurednot only by Internet sales but also by how Before announcing the 2004 eDealer of the Where do you start?well the dealers utilized the Internet and Year Awards, here are the criteria that was One thing became very clear about mostdigital marketing to promote all of their used to determine the winners: of the best eDealers, they were committedprofit centers: new, used, F&I, service, from the very top, starting with the dealerparts, etc. The goal was to find the dealers • Profit generated as a result of their and the general manager and throughoutwho have utilized this marketing medium to Internet marketing to all profit centers. their organization. This is critical becausegenerate the most profit for their dealership. • New and used vehicle sales generated some dealers rely on one or two peoplePerformed research showed a lot about what as a result of their Internet marketing. that run their Internet Department to definemakes some dealers succeed in their attempt • F&I and sub prime profits generated. their entire strategy, and, in most cases,to use the Web to increase their sales and • Service and parts business online. these people have a lot less automotiveservice profits. In this article, the top six marketing experience than the dealer andeDealers of the Year will be recognized, There are six awards for the six different their managers. A mistake some dealerswhile identifying what they have done to categories of dealers based on how many make is that they think that their Internetget the positive results that have made them roof tops, size, market, brands and the marketing strategy is all about technology,the best in this field. percent of their sales that are generated by so they leave it up to their IT or Internet their Internet marketing effort. Here are the Department. This is a marketing strategyBefore announcing the awards, let’s start winners of the 2004 eDealer of the Year that happens to use technology, but it is allby looking at the landscape of the industry Award: about selling and servicing more vehiclesto reveal why the Internet has proven to 2004 eDealers of the Winners! Congratulations, eDealer of the Year Award Yearhave such a huge effect on how dealers dobusiness. Dealers are selling an additional50-800 units every single month fromtheir Internet marketing strategy. Why is Dealership Location Websitethe Internet such an influential marketingforce in the car business? Over 70 percent Herb Chambers Boston, MA www.HerbChambers.comof customers who purchase a vehicle use Sheehy Virginia/DC www.Sheehy.comthe Web to research information before Red McCombs San Antonio, CA www.RedMcCombs.comthey buy. More people are influenced by Courtesy Chevrolet Phoenix, AZ www.HouseofCourtesy.comthe Internet before they buy than they are Tasca Providence, RI www.Tasca.cominfluenced by other traditional marketing Dave Smith Motors Kellogg, ID www.DaveSmithMotors.commediums. Successful dealers are changingparts of their marketing strategy to apply We have outlined exactly what these dealers profitably, and most dealers know a lotmore of their budget to digital marketing and other finalists are doing to use the more about that than the technology peopleand the Internet where most prospects begin Internet and digital marketing to increase in their dealership. The best dealers begintheir buying experience. their sales and service profitability. Their by involving their management team in best practices have been broken down into developing a clear strategy to reach their“The math is compelling because 7 out of the following areas: goals, and they plan what they are going10 customers use the Web before they buy to do to market their website, get the rightyet less than 3 out of every 10 use the paper Their vision and strategy. technology, people and process to ensureor TV and radio, so we put our marketing Their technology: What technology they get the right where the majority of our customers generates revenue and what isshop,” said Robert Revere, Courtesy unnecessary? The best automotiveChevrolet, Phoenix AZ. “It has worked Their marketing: How do they use the Web dealer websites in the industry.great, because our digital marketing has to attract customers to their dealership? If you have a great marketing strategy thatdramatically increased our foot, phone and Their process: How do they transform their attracts a lot of prospects to a bad website,Internet traffic, and it is a lot less expensive opportunities into profitable sales? it could hurt a dealer’s business more thanthan our traditional marketing mediums Their people: What type of people do they it helps. So the question is, “What makes aand the best part is that we can measure recruit, hire, train and keep? great website?” 12
  13. 13. top six edealer websites Another online marketing strategy is 10 Keys to a direct email marketing. Dealers can send successful automotive website: thousands of emails in one click, without the Key #1 : Simple. cost of a stamp. The only challenge of email Key #2 : Easy to use. marketing is gathering emails, but Tasca has Key #3 : Provides customers with the done a great job with this by using a new information they want. service that automatically crawls the Web to Key #4 : Promotes all of the dealership gather your customers email addresses and profit centers: new, used, F&I, service then they email the customer to ask them if and parts. they want to ‘opt in’ to receive information Key #5 : Never tells the customer you about new product and pricing information. do not have what they want. Key #6 : Highly engaging and One strategy that has proven to be very interactive multi-media (that works successful for Tasca has been the use of a over low speed connection) new type of email marketing where they Key #7 : Fast loading (if site has send multi-media ‘buzzmails’ that include animation it needs to be compressed animation and sound that looks like a for slow connections). television commercial in an email. Key #8 : Site should build value in your dealership, people and your “These buzzmails blow customers products. away because they are like watching a Key #9 : Site generates a lot of high commercial on our dealership, people and quality leads for sales, F&I, sub prime, products, and the best part is that they are service and parts compressed, so they work over a low speed Key #10: Site is always updated, dial up connection,” Tasca said. especially the specials (automatically updating site is best). One of the buzzmails that Tasca uses is a ‘virtual test drive’. These test drives are multi-media walk around presentations onThe most important characteristic a the unique features of the vehicles they sell.successful website has is that it generates Tasca uses these virtual test drives to capturemeasurable results. The best way to learn email addresses by offering showroom and www.HouseofCourtesy.comabout what makes a website great is to learn phone prospects a free virtual test drive,from the dealers who are already getting and they automatically send all of theirgreat results from their website. To view the customers virtual test drives when theyaward winning websites, refer to the third inquire on a vehicle via their website. Incolumn examples. addition to the virtual test drives, Tasca uses hundreds of different buzzmails to promoteBuild it, and they will come. Not. their dealership every month. TheseThe saying ‘build it and they will come’ is buzzmails include campaigns for everynot true with a dealer website. A dealer can month, season and typical campaigns likehave the best website, products and prices ‘Year End Clearance’, ‘Fourth of July Sale’, www.Tasca.combut if people do not know about it, it will ‘New Years Sale’, ‘Fresh Start Program’not generate results. The best dealers market and others.their own website. This starts by marketingtheir website address in their traditional “I don’t really have to do anything moremarketing. The award-winning dealers are than pick who I want to email, pick thevery good at online marketing. They began campaign and then click ‘send’, so it is notby buying the right website addresses and only a less expensive way to market but it isoptimizing their website to appear at the very easy and takes very little of my time,”top of the search engines just like many of Tasca said.the third-party lead providers are currentlydoing in most markets. These dealers are The most important trend that was observed www.DaveSmithMotors.comcreating alliances with regional/local sites with the award winning eDealers is thatthat direct customers to their website via they had a clearly defined strategy to attractbanners and links. customers to their website.“When you go to our local newspapers A lot of leads + no process = no, to their car section,, The 2004 eDealers of the year generate mostyou will find a banner ad whenever you of their leads from their own dealer website,research a make of vehicle we sell, and and they spend a lot less to get higherthis attracts a lot of traffic for us,” said BobTasca III, Tasca Automotive. Continued on page 14december 2003 13
  14. 14. continuedquality leads that close at 16 – 24 percent that builds value in the dealership, job description. For example, if you wantclosing ratios. They have great processes people and product. to hire an Internet manager to manage afor turning these leads into profitable sales. 8. Answer “Why should I buy from large department, they will need to haveThese processes were discovered when you?” great leadership skills, people managementa company mystery shopped these sites 9. Positive and persistent follow up of skills, organizational skills, and they shouldduring the award evaluation process. In prospects who don’t respond. be able to execute the Internet sales process.these mystery shops, many best practices, 10. Effective follow up process for Also, if you are recruiting an Internet salesthat make a real difference in website prospects who don’t set appointments, person you want to find someone with greatresults, were found. don’t show and don’t buy. sales and phone skills.Here are the best practices we learned from All of the award winners utilize a prospect The total package.the award winning eDealers: management or CRM tool to help them If there is one thing you can learn from manage all of their prospects. evaluating the best dealers in the country, Top 10 process best practices. it is that one thing alone does not guarantee 1. Quick quality responses = Higher “The best part of our CRM tool is that it a dealer will get the best results. The appointment percentage = Higher automates 90 percent of the email contact best dealers do a combination of things closing ratios. process, so we can handle twice as many right which includes starting with the 2. Effective email templates for leads per person than we were able to right vision, strategy, people, process and every scenario (price, trade, payments, handle before. This also gives our Internet technology. And in the end, the bottom line availability, etc). team more time to sell cars rather than is execution, because all of the knowledge 3. Personal emails that compel the emailing customers back and forth.” Robert and technology in the world means nothing customer to want to call the dealership. Revere, Courtesy Chevrolet, said. if a dealer does not take action. Now you 4. Great phone skills are the most have some practices that you can put into important. The right people = the right results. action to improve your business. 5. Selling the appointment rather than At the center of the Internet sales process selling the car on the phone. are the Internet managers and sales people. 6. Confirming appointments If you have the right people, you are more Patrick Luck is the Editor and Publisher will double the show ratio of the likely going to get the right results. So what of AutoSuccess Magazine. He can be appointments set. makes a good Internet manager or Internet contacted at 866.802.5603, or by email 7. Customer friendly sales process sales person? The answer depends on their at 14 contact us at
  15. 15. profit solution ADVERTISEMENT Scott Scott Joseph By Joseph The Chartbuster Direct Mail Promotion That Sells New Customers in Droves, and Doubles and Redoubles Your Profits! Great the difference between solving your But, imagine the proÞt for your promotions are problems before they happen, in a dealership if you sold twenty to made, not born. proactive manner, or scrambling thirty of these buyers every month? to band-aid them each time they If you don’t take action this proÞtIt requires discipline, a precise break down in a reactive temporary could go to you or the dealershipmailing list, and a highly strategic manner. down the street. The choice is yours.plan to really develop a promotion You have to give buyers a reasonthat maximizes your proÞt potential You better hope your competitors to come to your store and not your(both short and long term). If you don’t use the “pre-emptive wizardry” competitors.want to grow your business like a we are offering here. They’d stealweed, gain a decisive competitive away all your clients in no time. But FREE Offer!advantage, attract new customers if YOU use these methods, instead,in droves, and double and redouble you will radically outperform your Call my ofÞce now at 866.856.6782your proÞts – then you need to open competitors, take their clients away and ask for Lisa Wilson, or e-mailyour mind to one overriding “big” at will and get whatever market her at lwilson@jandlmarketing.coidea: share IS available (and it’s probably m. And, as soon as we receive your a lot more than you might imagine). reply we will immediately give youIt’s a fact: This direct mail promotion And I’m going to give you a great a FREE market analysis of yourcan work true performance miracles deal of this insight, right here, right dealership, to see exactly how manyfor your business. But you will now, as soon as you reply to this thousands of customers are readynever reap its rich rewards, unless article. So please read on. and near your store - just waiting foryou develop a systematic process you to sell them strategically implement it into In short, we have developed andyour monthly advertising budget. Þne-tuned a highly targeted list Today, I urge you to discover howBut most people don’t know how of buyers (using a combination powerful and effective this new listto implement a highly focused of two powerful mailing lists) who combo is – we have the results topromotion and do it the right way. are motivated to buy your product prove it! And think about it, what a right now. great way to get the new model yearRight now, there’s more off to a fast start. Let us bring thiscompetition, but there’s also And, we have paired these lists with type of high quality, ready-to-buymore weakness in your market! an incredible, high-impact verbiage trafÞc to your dealership right now! that will be irresistible to anyone who is in the market. It is easyThere’s more complacency. There and painless for the customer, andare more “dispirited” dealers, GMs, delivers scores of quality trafÞc for To receive this FREE market analysissales managers and sales people, you the dealer. of your dealership, and see exactly howwhich means it’s a great “reactive” many thousands of customers are readyplaying Þeld out there for you to Dealers who do not actively pursue and near your store, just waiting for youdominate. The difference between utilizing this list combination will to sell them cars, please call my ofÞce atthe way most dealers work and the lose market share that they may 866.856.6782 from 8:00am to 6:00pmway a strategic dealer works is like never make up. EST and ask for Lisa
  16. 16. leadership solution Patricia Patricia Gardner By Gardner Nine Steps to Building Productive Sales People Sales training 3. Take the load off. eliminate this competitive attitude, put programs are the The sales manager should not have to the mentoring in the context of team backbones of the do all the day-to-day sales training, and competition. “My trainee will beat sales force. Without it shouldn’t all be done in a classroom. your trainee,” is a great way to transfer a thorough program, That will take the enthusiasm out of your knowledge from mentor to mentee. Thisyour sales team will be unprepared, new hire. Training should be a company both motivates and teaches because salesconfused and unsuccessful. In order to effort where every department shares in people tend to begin sharing secrets theymaintain enthusiasm and motivation, the load. Let your sales team teach about would not normally have divulged. Andcompanies should have a formal your product. Let the service department the company is the big winner becausearrangement for every new hire. Here are explain the strengths and weaknesses they are growing their sales peoplesome tips for setting up a sales training of the product. Clarify the roles that are quickly.program at your company: imperative to the success of a sales person and make them available during training 7. Build tactical teams.1. Expedite the paperwork. the first week they are onboard. Sales people shouldn’t be left alone toDon’t waste your new sales person’s entire prosper; they should have support teams.first day of work, send all of the paperwork 4. Sales person to sales person training. These teams are comprised of people whoto your new employee in advance before Let the other, more experienced sales help them get their job done, who workthey start, and let them complete it at people share in the training. They can help well together, are always helpful andhome. Many times, a spouse will need the new hire train on taking calls. It is also get things done quickly. Let your salesto help fill them out; they have to make important to have them sit in on sales calls people pick their teams to make sure thatimportant decisions about medical, dental, with several different sales people to get the team works well together. Now your401K and other benefits that they are better the sales pitch down during the first week. reps are ready to start making serious salesprepared for at home. This information is presentations.not confidential so sending it out early 5. Mentoring your way to success.only helps you both save time and energy. Personalities are unique and different, so it 8. Create a 90-day action plan.On their first day, they can turn in the is critical to let your new hires choose their Have your new hires put together a planpaperwork and then get right to work. mentor. To ensure success for your sales for the first 90 days after they are hired. people, pre-approve some experienced, Help them fine tune their ideas so that they2. Make sales people qualified sales people and make sure meet the company’s needs, are properlyprove value from their very Þrst day. they are up to the task. Make it clear that prioritized, and set realistic goals.Remember that every person brings all of mentors are chosen on the basis of theirtheir background to work. Start a contest skills and success. Or, give them monetary 9. Keeping track.for new hires that utilizes who they know rewards. Mentoring should be a positive All new sales hires should learn whatfor your company’s benefit. If they provide experience for both teacher and student. documents are needed to track theira name and successfully close a deal with activities sales calls, demonstrations,that contact, the new sales person should 6. Create a competitive proposals, commissions and rewarded. Encourage them to step atmosphere for new hires to grow in. The first week they should start to utilizeoutside of their job description and seize Many sales people worry about helping this practice. Someone should review theirevery opportunity possible to benefit new hires because they make them first proposal prior to presentation to theincreased revenues for the company. look bad if they are very successful. To customer. Weekly sales conferences or one-on-one meetings with their manager, are essential for the new hire to get off the ground very quickly. These nine steps should help every new hire get off to a great start. And, AT T E N T I O N : your company will immediately have productive members of the sales team. •Automotive Dealers Keep their excitement and enthusiasm high, and your sales team will really •Ad Agencies succeed. •Automotive Marketers!! Automotive Ad Planner Kit On Interactive CD-ROM 24 Campaigns Included!! (Limited Supply Offer) Patricia Gardner is the President of Maximum Sales. She can be contacted at 888.886.9402, or by email at, or visit 16 log on to
  17. 17. f&i solution Frank Martin By Frank Martin Reduce Your Customers’ Anxiety The sales person and can put more gross in the books. You work with someone they know, like and has a process to have limited time to establish rapport trust. follow and, when with a customer once they are in your followed correctly, office, so start the process before they are Frank Martin is the CEO of F&I will not only lead to seated in front of you. Bringing down the Solutions. He can be contacteddelivery but a satisfied customer, who will barriers first makes it easier to overcome at 866.247.9361, or by email atvisit the dealership for service, complete objections later. All people would rather favorable survey, send referral businessand return to purchase their next car.Most surveys include all aspects of thebuying process, the financial transactionis very important in retaining high CSIscores. Here are some ways you canassist your customers to overcome theirapprehensions before they are introducedto the finance office.One of the most effective ways ofheading off a customer’s apprehensionbefore finalizing their paperwork in thebusiness office is to take the time to meetyour prospective customers before theymeet you.When deals are being worked on theshowroom floor, make yourself availableto meet your prospective customers.Introduce yourself and offer to answerany questions they might have regardingfinancing. Make them feel welcome inyour store, and they will feel at home inyour environment.If you find yourself backed up withcustomers waiting to see you, take just afew minutes to go out to the showroomor the sales person’s office to introduceyourself. Explain that you are in theprocess of shopping the best financialpackage available so that when they leavein their new automobile, they will becompletely satisfied with their purchase,as well as the terms of their financepackage.Not only will these changes take the edgeoff waiting and reduce their anxiety, it willreflect a genuine concern for the interestsof your customers. This puts them at ease,reduces some of the tension, and preparesthem for who they can expect to see whenthey progress to the final paperwork in theF&I office.Following this advice makes a significantdifference in customer satisfaction scoresdecember 2003 17