AutoSuccess Must-see Companies NADA 2006, page 4a division of Systems Marketing, Inc.   February 2006
> Ahh, that empty lot smell.             Refreshing isnt it, to watch your inventory disappear. With BlueSkys new         ...
UST-SEE COMPANI                          O     R                                    ADA 200                               ...
462391421172120Visit Cobalt and Dealix at TheHacienda Presidential Suite in theRosen Centre Hotel, adjacent tothe Conventi...
8                      eCRM Dealers of the Year:                                                                          ...
MUST-SEECOMPANIESNADA 2006
fs       feature solution                                                                                                 ...
to companies that promise the right strategyand vision and even claim to offer marketingtools and CRM technology that will...
continued                                   continued from page 9.                                   Hiring for Results   ...
MUST-SEECOMPANIESNADA 2006
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sts    fos     ls    ms      sf    fis                                                                                     ...
sts    fos    ls   ms     sf    fis                                                                                        ...
MUST-SEECOMPANIESNADA 2006
WESTERN USThe Dealix Dealer NewsletterThe Leading Resource for Online Automotive Sales                                    ...
CENTRAL US                                                EASTERN US                 Gary Clark, Internet Sales;          ...
sts    fos     ls     ms       sf      fis                                                                                 ...
sts    fos    ls    ms     sf    fis                                                                          ChrisHanson  ...
sts     fos    ls    ms     sf   fis                                                                                       ...
Take our customers...Please!Why chase false leads when you can have real,qualified customers?She completed an extensive ap...
sts    fos    ls     ms    sf    fis                                                                                       ...
Why limit your                                    profit improvement                                       to just F&I?  Th...
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AutoSuccess addresses the specific, researched needs of new car and light truck dealerships by providing entrepreneurial, cutting-edge, solution-based editorials to increase dealership profits and reduce expenses

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

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Autosuccess Feb06

  1. 1. AutoSuccess Must-see Companies NADA 2006, page 4a division of Systems Marketing, Inc. February 2006
  2. 2. > Ahh, that empty lot smell. Refreshing isnt it, to watch your inventory disappear. With BlueSkys new SM Auto Delivery Agent , it will. We’ll work each lead for you until they buy or die. SM So if you want to convert more leads to sales, reserve your Auto Delivery Agent now –– and enjoy the sweet smell of success. Call 1-800-BLUESKY to get yours, or go to BLUESKYMARKETING.com now. N E W A U T O D E L I V E R Y A G E N T SM - O N L I N E L E A D M A N A G E M E N T S Y S T E M QUALITY INTERNET LEADS - RESPONSIVE DIRECT MAIL
  3. 3. UST-SEE COMPANI O R ADA 200 L A N D O F L O R I D A American Auto Exchange: Delivering innovative solutions that streamline and maximize dealers’ sales operations to include: inventory optimization, Þnance menu, reporting, and dealer desking tools. Auto Dealer TrafÞc, Inc. is the automotive search engine marketing experts. ADT’s focus on SEO, Paid Search, and analytics has made it the premier company in the automotive arena. ADT’s proprietary technology analyzes your search marketing efforts easily. Count on us to give your marketing dollars a ROI! Established in 1999 Auto Internet Marketing has been generating both New Vehicle and Finance Leads of superior quality and content since the beginning of the Internet Revolution. Our unique marketing platform promotes FREE exposure for our Dealers, resulting in FREE leads every month! We look forward to speaking with you soon!BZ Results is a digital marketing & consulting company currently working with 8 of the top 10 eCRM Dealers of the year. BZ offers CRM,Web marketing, Search Engine & Email marketing, Websites, New & Pre-Owned, F&I, Service, Parts and specializes in BDC’s. BZset up the largest BDC in the world which sold 384 vehicles in one month. They also work with the #1 Pre-Owned eDealer, #1 HondaeDealer, #1 Chevy eDealer and the #1 eDealer Group in the world. The Cobalt Group and Dealix Corporation specialize in helping dealers and auto manufacturers maximize every proÞt center by helping them: meet, sell to, and retain customers for repeat business in the most efÞcient manner possible by providing a comprehensive suite of services, including the highest quality Internet sales leads and marketing services, cutting edge technology, and the expertise of automotive industry veterans. HomeNet, Inc. is a technology provider offering online vehicle inventory solutions to help automotive dealers manage their vehicle inventory and increase online sales. HomeNet’s Inventory Online (IOL) system allows control of the acquisition, editing and distribution of vehicle data. IOL interfaces with all major DMS and broadcasts accurate vehicle inventory information and photos across the Web. Impact Direct develops innovative sited sales and direct marketing campaigns that light up your phones, Þll up your showroom and deliver vehicles. All with out taking a percentage of your gross proÞt. InterActive Financial Marketing Group offers new and used car dealers lead generation, direct mail marketing, CRM, advertising and Þnancing by leveraging it’s brands; Carloan.com, Autoloan.com, 1.800.CarLoan and IFMG Direct. J&L Marketing’s solid reputation as the industry leader for direct marketing campaigns is based on the strong relationships we form, focused marketing, and the increased proÞts we provide for our dealers. We take great pride in our expertise to build the best campaigns for your individual needs. This remarkable success that J&L provides for over a thousand dealers a year can be yours, too. We provide a fully integrated web-based software solution for F&I, leasing, special Þnance, BDC, inventory management and sales management reports. We also provide direct mail, Internet leads, credit hotlines and website hosting. TimeHighway.com is the premier, real-time, online service appointment scheduling solution. It will increase customer satisfaction and retention, service department efÞciency and revenue, load balance service bays and drive trafÞc to the dealer’s website. Are your customers returning to your dealership for scheduled maintenance? If not, let us help!!! Ultimate Warranty provides leading-edge service contracts and ancillary F&I products. More than 8,000 dealers have recognized the advantages and have beneÞted from selling Ultimate Warranty products. Stop by the booth, and Ultimate Warranty can show you how they are making a great thing even better in 2006.
  4. 4. 462391421172120Visit Cobalt and Dealix at TheHacienda Presidential Suite in theRosen Centre Hotel, adjacent tothe Convention Center. Saturday toMonday (2/11-13) from 8am - 7pm &Tuesday (2/14) from 8am - 12pm2774380412013448272815484074
  5. 5. 8 eCRM Dealers of the Year: How They Did It PatrickLuck 12 The Major Obstacle to Buying BrianTracyINSID Chevy/Toyota Dealer Finds Direct Mail Formula That Works Percent, and Net ProÞt Doubles in Just One Year 14 Case Study: Market Share Increases From 8 to 20 Value or What’s In It For Me If You Build It, They Will Come 13 18 19 GlennShepard ScottJoseph AnthonyHall ChrisHanson Phone Dynamics 20 MarkTewart Cutting Edge Strategies Used by Leading Internet Dealers 22 DavidKain How to Keep Opt-out Rates Low 24 BrianEpro The Core Sources of Personal Trust 26 DougHall Dealing With Dysfunctional Behavior in the Workplace 30 TomGegax Manage Learning to Improve Dealer Technician Performance 32 JohnZonneveld How to Decode What the Customer Really Means 36 DavidJacobson Just Professional 38 High-performance Selling is More Than MichaelYork How to Build Value in Your Presentation 40 SteveLevin Avoiding a Warranty Audit 42 You Can Avoid a Warranty Audit by Making Necessary Changes GreggTompkinsNADA 2006 Where Should I Sit 44 PattiWood the Right Answer, Ask the Right Question 45 Setting Appointments: If You Want JeffMorrill 46 Stop by and see Lessons Learned in a Year of Innovation SeanWolfington us at the NADA 2006 Convention at booth On-site Sales Events 48 The Power of Third-Party Credibility JoshWeaver#3816 Picture This 50 The Power of Photos for Simple Internet Marketing EricHinkle Zechariah 2:8 “For whoever touches you 3411 Pinnacle Gardens Drive Louisville, Kentucky 40245 touches the apple of my eye.” Toll Free: 877.818.6620 Facsimile: 502.588.3170 Patrick Luck, Editor & Publisher • pluck01@autosuccess.biz Courtney Paris, Sales-improvement Strategist Matthew 5:16 Susan Givens, Vice President • chill-paris04@autosuccess.biz “Let your light so shine before • sgivens02@autosuccess.biz Brian Ankney, Sales-improvement Strategist men, that they may see your Jacki Monce, Executive Assistant • brian01@autosuccess.biz • jmonce05@autosuccess.biz Brian Balash, good works, and glorify your Thomas Williams, Creative Director Sales-improvement Strategist • twilliams03@autosuccess.biz • bbalash06@autosuccess.biz Father which is in heaven.” God Bless America AutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccess.biz. Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content, and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. Always confer with legal counsel before implementing changes in procedures. © All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3411 Pinnacle Gardens Drive, Louisville, Kentucky 40245.
  6. 6. MUST-SEECOMPANIESNADA 2006
  7. 7. fs feature solution PatrickLuck eCRM Dealers of the Year: How They Did ItWe dedicated last month’s issue to honoring Top 10 Mistakes in eCRM dominate the search engine with “free”the Top 10 eCRM Dealers of the year. Our 1. Leadership fails to get involved, measure results, not just sponsored placement.annual eCRM Dealers of the Year award is results and hold the team accountable.unlike any other industry award in that we 8. Most dealer Web sites are no more thanlook at dealers’ results. We look at volume 2. Dealers assume they only need a good an online brochure that is often notof leads, sales and how well the dealers use Web site and CRM tool to get good updated and not very interactive.eCommerce and CRM to promote all of their results, and you need a lot more.profit centers: new, used, F and I, service, 9. Dealers have the right technology butparts, etc. 3. Dealers fail to invest in the right strategy, lack the people, processes and pricing to marketing, people, place, process and turn leads into profitable sales.In this issue, we will show you how the technology.top dealers accomplished their results. The 10. Dealers fail to track and measure 4. Dealers sign up with an eCRM vendoreCRM Dealers of the Year sold 80 to 700 results. that’s incapable of providing everythingadditional units each month, while using their they need to succeed.eCRM strategy and vision to drive additional Avoid and correct these mistakes, and you’llrevenue to all their profit centers. Success 5. Dealers fail to market and generate find yourself saving time and money whilelike this is possible for all dealers who have enough traffic to their Web sites. improving results and sales. Our industrythe know-how and ability to implement has been scrambling to leverage technology,it. In an effort to share best practices with 6. Dealers don’t leverage the power of e- and as a result, many dealers waste time andour readers, we’re publishing the Top 10 mail marketing to drive traffic. money on a Web site and CRM tool that areMistakes as well as our conversations with tall on expense and distractions and shortthis year’s award winners below. 7. Most dealers don’t know how to on results. To avoid the top 10 mistakes, fix them at your dealership or build them out of your strategy. We interviewed this year’s award-winning dealers about each topic and CONGRATULATIONS eCRM Dealers of the Year compiled their answers below. Leadership Involvement HerbChambers.com Top eCRM dealers tell us that having the dealer and general manager heavily involved RedMcCombs.com in initial planning, strategy sessions and decision making is crucial. Continued support and involvement determines the DaveSmithMotors.com success or failure of any eCRM initiative. The right vendor can provide automated HouseofCourtesy.com reports that provide all the information needed to hold the team accountable — provided the leadership team acts on the ParagonCars.com information. CDodge.com Creating Success The top eCRM dealers share the belief Sheehy.com that a good Web site is important, but won’t generate extra sales without a solid marketing strategy, the right process to turn DickHannah.com leads into appointments, the right people to turn appointments into sales, a pricing Schomp.com strategy to project a fair profit and a strategy to hold it all together. Tasca.com The Right eCRM Vendor The top eCRM dealers have been exposed 8 AutoSuccess
  8. 8. to companies that promise the right strategyand vision and even claim to offer marketingtools and CRM technology that will generateleads and sales.However, what’s tough to discern is thatmany of these companies actually outsourcea number of products and services. This canleave the dealer to manage working withtwo, three or five different companies whenoriginally they thought they were signing upwith just one. The products don’t integrateas promised, processes are not seamless andthere’s a lack of accountability at the vendorlevel. What can a dealer do when choosinga vendor? Ask for references and lists ofclients and ask them about their satisfaction “Customers love the virtual test drives and we use them to build value andand results. bring customers into the showroom.” Ray VelasquezGenerating TrafÞcThe top eCRM dealers have mastered the gathering e-mails from our parts, service and can target my campaigns, and our customersart of search engine optimization and e-mail sales customers to fuel the e-mail database actually tell us how much they love ourmarketing. As Roy Reutter of Sheehy.com for future digital marketing.” Many of the buzzmails because it’s like watching a mini-tells us, “Search engine optimization top eCRM dealers told us that they are movie about the product. It’s unlike anythingcombined with multi-media buzzmail using digital marketing to increase return on else out there, so it gets their attention.” Ray Velasquez, of Schomp.com, offers another best practice. “We’ve established a database of e-mail addresses so that we can send a mini-movie of a walk-around presentation straight to the customer’s inbox without requiring the customer to open an attachment. We simply select from a suite of multi-media e-mails that use the latest in compressed animation to send a ‘virtual test drive’ of the vehicle they’re interested in.” People and Process The top eCRM dealers agree that with the “Our competition has to pay to appear near the top; we get there for free and right technology, you can handle more customers find us first.” Brian Benstock leads with fewer people. Rad Weaver from RedMcCombs.com explains, “Our CRMcampaigns has enabled us to increase traffic investment, drop cost per sale, boost traffic tool automates so many of our phoneand sales at a lower cost than ever.” and gain incremental sales. and e-mail processes that we can manage thousands of additional leads without addingWhen customers go online to look for E-mail Marketing staff. Without the automation, we’d bea vehicle or a dealership, search engine Brian Benstock tells us, “We know that forced to build a BDC, hire a BDC staff andoptimization allows a dealer to ensure e-mail marketing is cost-effective because incur additional expense to follow up withthat their Web site appears ahead of the everything is measurable, including the each and every lead.”competition. view rate and lead source. In just a couple minutes we can reach hundreds or thousands Brian Benstock echoes the sentiment thatAs Brian Benstock, of ParagonCars.com of customers with just a few clicks for less automation allows you to do more withobserves, “Some vendors will tell you that than the cost of a stamp.” less. “Automation makes it easier to followflash technology is incompatible with SEO, our process, allows us to handle more leadsand that’s just not true. Type ‘Manhattan Bob Tasca III, of Tasca.com, gives a with fewer people and allows our staff toHonda’ into Google and you’ll see us on top. powerful example, “If Ford comes out with focus on what they do best: sell cars. It’s aOur competition has to pay to appear near an Explorer incentive, I can send a buzzmail big part of why we’re selling an additionalthe top; we get there for free.” to everyone who has been in an Explorer. I 200 cars a month. Today, we have more than can select just our lease renewal customers 80,000 e-mail addresses, and if we wereDick Hannah, of DickHannah.com, tells who are currently in an Explorer or even attempting to manage that database withoutus, “We’ve had a lot of success with our e- customers who were in to service their automation, it would be overwhelming.”mail marketing campaigns, so we focus on current Explorer. There’s no limit to how I continued on next page.Feature Solution 9
  9. 9. continued continued from page 9. Hiring for Results is a daily and on-going process for our Most of the top eCRM dealers tell us that dealerships. We’ve developed a friendly they look for people who are passionate business development team, and when we about customer service. Scott Gruwell need to bring on someone new, we look for of HouseofCourtesy.com tells us, “They that friendly characteristic and an aptitude don’t need to be superstar sales people or to successfully use the phone and e-mail for www.ParagonCars.com incredibly Internet savvy, but they have to follow-up.” love the phone and love serving the customer. Once we find the right people, I make it my Tracking and Measuring mission to create an environment that they’ll The best part about the Web and CRM is never want to leave, because we all know the that everything is measurable. Roy Reutter cost of employee turnover.” says, “Our technology provider automates the reports we need so it only takes a few Bob Tasca III is also passionate about people. minutes a week to get a great snapshot of “We have a recruiting, hiring and training how things are going, who is excelling and process that we use whenever we’re hiring where the process needs fine-tuning. The for any position in the dealership, and we most important numbers to track are: number www.DickHannah.com like to say that we hire out of inspiration, not of visitors to the Web site, conversion ratio, desperation. That means that we’re always closing ratio, average gross profit and cost on the lookout for energetic, talented people per sale by lead source.” with a good work ethic and an eagerness to learn. We find that the best new employees Again, congratulations! are referrals from someone who already Congratulations to the Top 10 eCRM Dealers works for the Tasca family of dealerships. and thank you for sharing your insight on A new candidate doesn’t necessarily need what it takes to use the Web and CRM to to have automotive experience because our sell more cars. If you have any questions new-hire training program and on-going regarding any of the best practices discussed www.Schomp.com training are so extensive. We have a training in this article, please feel free to visit the company that we bring in for two days every dealers’ Web sites or send an e-mail at the month to help with our training needs.” address below. Dick Hannah sums it up, “Even though the Web and CRM have made an incredible impact on the automotive industry, this still Patrick Luck is the editor and publisher is and always will be a people business, of AutoSuccess Magazine. He can be so nothing is more important than quality contacted at 866.239.3698, or by e-mail at people who are well trained. Training pluck01@autosuccess.biz. www.Tasca.com www.HerbChambers.com www.CDodge.com www.DaveSmithMotors.com www.RedMcCombs.com www.HouseofCourtesy.com www.Sheehy.com 10 AutoSuccess
  10. 10. MUST-SEECOMPANIESNADA 2006
  11. 11. sts fos ls ms sf fis BrianTracy sales and training solution The Major Obstacle to Buying Two of the greatest rejection, then the biggest obstacle to buying him or her saying something like, “Let me enemies of mankind is the fear of failure. The fear of failure is think it over.” are — and always probably the greatest obstacle to success of have been — fear all kinds in our society. The fear of failure Your job is to do everything possible to and ignorance. Fear does more to hold people back and paralyze reduce or eliminate this fear of failure. feeds on itself. It their decision-making abilities than anyholds us back and causes us to doubt our other factor. Now, here are two things you can doown potential and possibilities. It leads us immediately to put these ideas into action.to interpret events and circumstances in a The reason customers do not buy is becausenegative way. It eats away at us silently, they are afraid of making a mistake, and they First, recognize and acknowledge that everydeep down inside, and keeps our feet on the are afraid of being stuck with the wrong customer starts with a fear of failure or ofbrakes of our own hopes and aspirations. item. They are afraid of paying too much or making a mistake. Look for ways to reassure finding it for sale at a lower price elsewhere. the customer that your product is a safe buy.Ignorance is often the breeding ground They are afraid of being criticized for makingof fear. When you don’t know how to do a poor purchase decision, and they are afraid Second, overcome your own fear of rejectionsomething, you tend to be afraid of it. Much that if the product or service doesn’t work, by acting boldly in every sales situation.failure and frustration is based in ignorance you or your company will not service it and Ask for what you want confidently andand uncertainty. The better you become at they will be left hanging. They are afraid expectantly.something, the less you fear it, until you that your product or service will not do thereach the point at which you eventually have things you claim it will do and will not yieldsuch complete confidence in yourself that the benefits you tell them they will enjoy. Brian Tracy is the chairman and CEOyou have no fear at all. In short, when a customer considers your of Brian Tracy International. He can be offering, he or she is often overwhelmed contacted at 866.300.9881, or by e-mail atIf the biggest obstacle to selling is the fear of with a wave of fears that ultimately leave btracy@autosuccess.biz. V Bo at isit ot NA us h DA #4 00 0 Autobytel generates over $25,000,000 in car sales every week from search engines. You want some? Get your share of the billions of dollars in car sales Autobytel generates for local dealerships nationwide. Search Marketing: Just one more reason why Autobytel has the highest closing ratio.* For more information please call: 1-800 -267-2015 or email: dealerinquiry@autobytel.com. *Among all primary new independent online buying services according to one of the most respected third-party 2005 dealer studies. © 2006 Copyright Autobytel Inc. All rights reserved. Car sales figure based on recent Autobytel search data, NADA data and third-party dealer study. 12
  12. 12. sts fos ls ms sf fis GlennShepard marketing solution Chevy/Toyota Dealer Finds Direct Mail Formula That Works Targeted direct mail, mail campaign and sell a lot of cars in a short sales people and managers. Our management e-mail and Internet period of time. and sales staff learn more on the showroom marketing have than they do in the conference room, and they Direct mail has replaced a lot of our emerged as the most are able to pick up a lot of best practices by newspaper advertising because we have been effective way for our working alongside the experts that staff these able to increase our traffic while spending a dealership to advertise events. lot less money, and the cost per sale is almostfor less cost and to measure everything we Glenn Shepard is the president of half of what we used to spend.spend. Shepard Motors in Rockland, ME. He canOne effective new marketing strategy we use One unique element of staffed marketing be contacted at 866.239.3846, or by events is the opportunity for training for our e-mail at gshepard@autosuccess.biz.is an advanced direct-marketing campaign, anevent that is staffed by an automotive trainingcompany. It generates 30 to 50 extra sales and$120,000 to $175,000 in gross profit over athree- to four-day period. O N D 30 0We are committed to master direct marketing.It has increased our sales and profits by A L #1spending less to target more customers. OROOTHBelow is a list of the marketing campaigns IN Band events we conduct: S 06 U 20 E• We use emerging technology and online SE ADAdatabases to generate targeted lists of Nprospects that have in-market status and areready to buy.• We send high-end mailers that are designedto have the customer go to a Web site or callto register for the event.• The customer calls are handled by themarketing company’s call center withemployees that are well trained to scheduleappointments that show. This gives us a fullappointment list before the event begins,which helps us manage the traffic flow moreeffectively. track more > bring back more > close more• The marketing company staffs the eventwith valet parking, greeters, extra sales staff tohandle the extra traffic, extra sales managers Our CRM System provides TOTAL Sales & Service marketingand even back-up F&I managers. Multiple-quote & real-time desking tool• We execute an event-specific sales processon which we are trained, and we typically sell Outgoing & incoming phone tracking and verification10 to 30 extra cars a day at an average gross Ongoing training in your dealership includedprofit of $2,500 to $3,500 per vehicle.• The company stays after the event to help getall of the deals ready for funding by the lenderand to clean up loose ends after the sale. Platinum Sponsor ™These new events are staffed by professionalmarketing companies that bring everything adealership needs to get the results it wants.We knew direct mail worked but we were not Contact us today for a FREE consultationhaving the success that a dealer from our 20 and demonstration—you have to see itgroup was having. So we started doing what to believe it!he was doing. By the third day of the event,we had sold more than 41 units for more 888-695-4278than $147,680 in gross profit. In addition, thecampaign drove a lot of traffic to our Web site, www.highergear.comand we continued to deliver vehicles weeksafter the event. The best part is that after the SHOWROOM • CUSTOMER RELATIONSHIP • LEAD MANAGEMENT SYSTEMevent we did not have the customer concernsthat we normally have when we do a direct-february 2006 13
  13. 13. sts fos ls ms sf fis ScottJoseph marketing solution Case Study: Market Share Increases From 8 to 20 Percent, and Net ProÞt Doubles in Just One Year The following is plan to buy a vehicle within six months and gross average and increasing how often a case study of a Johnson City Honda previous customers. people buy. If this could be accomplished, successful growth then according to the store’s current strategy application Date: numbers, they would accomplish what they that illustrates the best July 2004, ongoing really wanted, which was their goal of a 30 practice principles percent increase to their gross profit.mentioned in January’s article. Johnson City Honda, like most auto dealers, faced many difficulties: finding good Johnson City Honda allocated 50 percentProgram Objectives: people, flat or limited growth and customer of its ad budget toward this direct-response • Increase active customer base by 10 defections. Almost in spite of itself, Johnson growth strategy. Their marketing partner percent City Honda had built a profitable business quickly set up a variable data print • Increase gross per transaction by 10 solely off of the Honda brand. It had built campaign management system. Database percent a customer base of more than 12,000 merging combined information from • Increase the purchase frequency by people. Its satisfaction scores were good several databases. All data was cleaned for 10 percent and, according to its management team, it duplications and misspellings. Data mining appeared to have a steady stream of repeat processes were put into place to discoverSigniÞcant Results Reported by buyers. hidden opportunities and to be able toDealership: properly segment customers. Specialized • From July 2004 through December There was nothing that closely resembled design services created document layouts 2004, profitability increased five a strategy or game plan to grow business. for all variable data. Resource management was essential for storing, tracking, updating times over the previous six months. Once a customer was sold, the dealership and managing a customer’s database assets. • 2005 year-end profitability has never solicited that person again, with the Response monitoring tracks and analyzes doubled over 2004’s year end. exception of Christmas and birthday cards feedback to all campaigns. • Market share increased from 8 to 20 or an occasional service reminder. Almost percent. all their advertising was institutional rather The result was a mix of highly creative, • CSI scores are consistently above than direct-response. customized direct-mail pieces and e-mail zone and national numbers. campaigns. Sales and service mail pieces • Achieved 250 percent above the 2005 Thoroughly analyzing their previous include weekly prospecting letters, high- certified used-car projection. customer database revealed several impact sales promotions, personalized Web • 2005 customer pay labor is up 32 troubling areas. Yes, the dealership had sites that are customized to each potential percent. accumulated more than 12,000 customers buyer, e-mail confirmations and follow-up but 68 percent had not bought another car mail letters. All of these can be completelyDealership: from the dealership in three years. Even customized with text and variable images.Johnson City Honda more troubling was that 92 percent of those Depending on the data on each individual,www.johnsoncityhonda.com inactive customers did not visit the service all letter content is customized according department within the last 12 months. This to each individual’s buying habits andJohnson City Honda is located in Johnson store, regardless of its satisfaction scores, interests. For instance, if a customerCity, Tenn. The store has an experienced had a defection problem. leases, then the letters emphasize leaseHonda general manager who has an offers. If the customer has a history ofexceptional track record for satisfying Johnson City Honda did keep good records buying used cars, then the letter highlightscustomers, developing strong sales teams of its customers by distinguishing if the used-vehicle offers.and in fixed operations. The location is well- customer purchased, leased, bought newknown and easily accessible. or bought used. Term-end dates, monthly Johnson City Honda is pleased with the payments, customer birthdays, last repair results of its efforts. “To grow the dealershipHardware: order dates and mileage were recorded. at the rate we wanted, our advertising dollarsDepending on the advertisement, high- needed to produce more opportunities forspeed Heidelberg digimaster 9110 or Johnson City Honda’s management our sales staff and improve the qualityKodak NexPress 2100 digital production explained that traffic was its number one of our traffic,” said Joe Trujillo, generalcolor press. challenge to growing sales and profit. They manager and ownership partner of Johnson wanted an advertising strategy that was cost- City Honda. “Our first 18 months have beenFinishing: effective and would grow their gross profit outstanding. Our profit doubled from 2004 toVaries depending on the advertisement, more than 30 percent. 2005, and our market share has grown fromfolding, sealing and inserting equipment that 8 to 20 percent.”is used for various products. Thier marketing partner created a growth Scott Joseph is the president of J&L strategy focused on growing the following Marketing Inc. He can be contacted atTarget Audience: objectives by 10 percent: increasing their 866.429.6846, or by e-mail atProspects interested in Honda vehicles that active customer database, increasing their sjoseph@autosuccess.biz. 14
  14. 14. MUST-SEECOMPANIESNADA 2006
  15. 15. WESTERN USThe Dealix Dealer NewsletterThe Leading Resource for Online Automotive Sales Larry Moreci, Internet Sales Manager Honda of Stevens Creek SAN JOSE, CA STEVE GAINES Steve Gaines, Owner; Vince Vahsholtz, Internet Manager Bell Road Automall PHOENIX, AZ We Salute VINCE VAHSHOLTZ Steve Pangelina, Internet /Fleet Manager the Top Santa Cruz Nissan Dodge VW SANTA CRUZ, CA Internet Sales Vic Simonian, Internet Sales Manager Professionals STEVE PANGELINA Scott Robinson Honda TORRANCE, CA of 2005 Mike Lavezzi, Internet Director Pacific Honda SAN DIEGO, CA MIKE LAVEZZI Mark Ray, Internet Sales Manager Future Nissan To learn more about these ROSEVILLE, CA dealers’ winning strategies, visit www.dealix.com or Tom MacMillin, Internet Consultant Shack Findlay Honda call 800. 717. 8079. MARK RAY HENDERSON, NV Aimee O’brien, Internet Sales Weston Kia GRESHAM, OR Drive Success. AIMEE O’BRIEN Jason Volkert, Internet Sales Manager Hyundai of Everett EVERETT, WA DJ Dougherty, Internet Sales Manager Peninsula Subaru MUST-SEE DJ DOUGHERTY BREMERTON, WA COMPANIES NADA 2006 C O R P O R AT I O N A Division of The Cobalt Group, Inc.
  16. 16. CENTRAL US EASTERN US Gary Clark, Internet Sales; Tony Bell, Internet Director Gary Deetz, Internet Sales OBrien Team Hyundai Heuberger Motors FORT MYERS, FL GARY CLARK COLORADO SPRINGS, CO TONY BELL Jennifer Picheco, Director of E-Commerce Gilbert Chavez, Internet Director Germain Motor Group Phil Long Motor Group NAPLES, FL COLORADO SPRINGS, CO GARY DEETZ Harry Kim, Internet Director JENNIFER PICHECO Michael Waldrop, Director of Marketing Muller Honda Coggin Honda of St. Augustine ST. AUGUSTINE, FL HIGHLAND PARK, IL Craig Criswell, Internet Director Don Graff, Director of E-Commerce Burt’s Automotive Network Flemington Ford Lincoln Mercury Nissan ENGLEWOOD, CO FLEMINGTON, NJGILBERT CHAVEZ GUIDO DAVILA Internet Sales Team Guido Davila, Internet Manager Gartner Buick Hyundai Saab King Hyundai AURORA, IL DEERFIELD BEACH, FL Brad Hull, Internet Sales Manager HARRY KIM Rosen Honda MIKE ZAVELL Michael Britt, Internet Sales GURNEE, IL Honda of Nanuet NANUET, NY Gregg Elmore, Internet Sales–Toyota Toyota of Naperville Mike Zavell, Internet Sales Manager NAPERVILLE, IL Gunther Volkswagen of Coconut Creek POMPANO BEACH, FL DIANNE LAZAR NIKKI BURNS Dianne Lazar, Internet Sales Manager Family Hyundai Nikki Burns, Internet Sales Manager TINLEY PARK, IL Toyota of Wilmington WILMINGTON, NC Howard Bass, Internet Manager; Jeff Bogle, Internet Manager; HOWARD BASS Thomas Scott, Internet Manager RON DAVENPORT Ron Davenport, Internet Sales Manager; North Freeway Hyundai Mark Lenny, Internet Sales Manager HOUSTON, TX Keenan Honda DOYLESTOWN, PA Don Boyle, General Sales Manager; Ron Wilkin, New Car Sales Rusty Strange, Internet Manager Honda Cars of McKinney Beaman Pontiac GMC JEFF BOGLE McKINNEY, TX RUSTY STRANGE NASHVILLE, TN
  17. 17. sts fos ls ms sf fis AnthonyHall sales and training solution Value or What’s In It for Me The more a customer must understand and know your product as Most important, get all parties involved. understands what’s in well as your competitors. The customer must physically participate it for him or her the with you during the presentation of the more he or she will be Your dealership has many resources that will vehicle. Use his or her senses to build more willing to spend on a provide you with the needed information, emotions and desire. The customer must vehicle. such as source books, factory videos, DVDs, touch, listen, feel and smell the new car. etc. Other good sources are automotive The sale of an automobile is a magical andValue is established during the presentation magazines such as “Road & Track,” “Car and emotional experience, not analytical. Sell tophase of the sale. It is the longest, most Driver” and “AutoWeek.” These are excellent the customer’s emotions. Remember to useimportant step in the entire sales process. resources from which to gather information your customers’ names and the names of theirYou should slow down, sell the value, sell the about you and your competitor’s products. children while presenting the vehicle. Painttechnology, sell the safety, sell the styling and You can also look for and listen to automotive mental pictures and put the customer in it.sell the excitement. T.V. and radio commercials. The words and pictures used to describe features and benefits Steps of the walk-aroundValue is a measurement of benefits. People can also be used in your presentations. 1. Front of the caraccept price, and they buy value based on 2. Under the hood of the carthe amount of benefits the vehicle provides Next, find out the hot buttons and motives 3. Driver’s sidethem. The perception of value is based on of the customer, because you can start to 4. Back of the vehiclethe knowledge of the benefits provided by the formulate the best way to present your vehicle 5. Passenger’s sidesales person. As value increases, the budget based on the customer’s needs and desires. 6. Inside the vehicleof the customer increases. When value is Customize every presentation directed at Use the same technology vocabulary thelower than price, the customer feels he or what is important to each customer. manufacturer uses in brochures, videos andshe is not getting a good deal. When value other literature. They are not plastic headlampmeets price, they feel the deal is OK, but The six-point walk-around should tell covers, they are high-impact Lexan. Thewhen value exceeds price, they feel like it’s an organized, complete story that covers vehicle has air-cooled, ventilated disk brakea bargain. But before you can sell value, you all needs and benefits of your customer. rotors, aluminum alloys, thermal composite intake manifold, sheet molded composite, high-strength forged steel, sequential RAISE YOUR CUSTOMER’S electronic fuel injection, etc. CREDIT SCORES!!! Get excited about the vehicle with the customer. Enthusiasm creates positive *50 to 150 Points emotions during the presentation. Show Increase your profit potential by directly affecting your customers excitement in your voice, and be animated. If credit score before submitting your deal!!! you don’t believe in what you’re doing, why ! Specialized Bankruptcy Letter should someone else? (10 to 20% Response Ratio) SERIOUSLY! Bureau Update Training Know all about your vehicle and your (All Three Bureaus Thru One Source) competitor’s vehicles. Only use four or five Phone Support (How to Get The Appointment! Scripts Provided) features that directly relate to your customer’s hot buttons at each of the six points of the walk- ! Special Finance Training around. We must have complete knowledge (From The Ground Up) Lender Recommendations and information of the customer, our vehicle (Get The Aggressive Lenders) and our competitors. Professionals learn and Sales Training practice this and achieve profitable results. (How To Ask For The Gross And Get It) Inventory management (What Cars To Buy For Max Profit) People will pay more for technology if they understand how it benefits them. Customers ! Special Finance Leads 800 Vanity Numbers (1-888-Get-A-Car and Others) buy safety, performance, economy, durability Internet Vanity Websites (www.getacar.com) and utility. Vehicles offer more today for less Low Cost TV Production (Production And Time Buy Assistance) money than ever, but we tell less about the Low Cost Infomercials that work! (Customized) benefits of the vehicles. What is wrong with Turn more of your advertising dollars into gross producing customers. this picture? 30 years combined experience in special finance, a vertising and credit bureau updating. Present the vehicle like a professional, and get s is the REAL DEAL!!! paid like a professional. Call now and see dramatic results within 30 days!!! X FACTORS, Inc. 1.800.790.1212 Anthony Hall is a training consultant Call for scheduling at Ziegler Supersystems. He can be (Scheduling limited to one dealer per market). *credit scores may vary contacted at 800.610.9047, or by e-mail at ahall@autosuccess.biz. 18
  18. 18. sts fos ls ms sf fis ChrisHanson sales and training solution If You Build It, They Will Come If you’re tired of your customers?” I think she said that when your J.O.B. (just over a customer who had bought 15 vehicles in broke) or you’re new the last 5 years from me gave me a deer rifle. in the business and Or maybe she said it because every year you want to build a when one of my customers comes back fromcareer, I am here to tell you, if you build it, Lake Michigan, he brings me a bunch ofthey will come. vacuumed-packed salmon filets. I know she said it one winter when it was 30 below andIn order to really succeed in this business my customer took delivery of his new caras a sales person your goal is not to just sell and then drove to my place to help me un-cars. Your goal isn’t even to just follow-up thaw my pipes after he had heard that theywith your customers. To really succeed in froze. I can give you story after story aboutthis business, you must create raving fans. my raving fans.Have you read the book, “Raving Fans: I created a customer base that not onlySatisfied Customers Are Not Enough,” by showed their loyalty by purchasing all theirSheldon Bowles and Ken Blanchard? In vehicles from me but sent their friends andCanada in the 1970s when gas stations went relatives in to purchase from me as well;to self-service, he went with full-service, and, more important, they respected me asright over the top. When you pulled into his a sales person, considered me a friend andgas station, someone started pumping gas, truly cared about me, my family and oursomeone looked under your hood, another well-being.person served you coffee and handed youa newspaper to read while they vacuumed When you make a new contact, make sureout your car. He blew away the competition that everything you do is over the top. Whenbecause he created raving fans, customers you gain a customer, you need to do thethat told everyone else about his gas station. same. They are yours to lose.You see, once they experienced his service,everything else was second-rate. Don’t sell yourself short. Your customers do not want to shop around for vehicles. ThrowYou can create raving fans and blow away yourself out there and lay it on the line. I’myour competition. If you build a follow- not talking about giving lots of free stuffup process like no other, really wow your away. I’m talking about a process, specificcustomers, everyone else will be second-rate. things you do all through your sold and unsold process.In eight years of selling cars, I createdraving fans. Do you know how I broke all If you have been selling cars for a while andthe sales records at the dealership I worked you want to create a customer base so strongat and became noticed by DaimlerChrysler? that no one can take it away from you, ifI created raving fans. I had specific things I you want to create raving fans but you don’tdid throughout my whole follow-up process. know where to start, please e-mail me andCustomers that would never think of going let’s get you started. I have a system thatanywhere else. If they did, the competition you can put into place to get you on the rightwould make me look even better. Once they track. Don’t just sell cars and follow-up,had dealt with me, whether they purchased create raving fans.a vehicle or not, everyone else was second-rate. Most sales people do not do a good job,so when you take things to the next level— over the top — you create raving fans. Chris Hanson is the president of Follow Up for Success, Inc. He can be contactedMy wife always gave me a hard time about at 800.901.2862, or by e-mail atit. She would say, “What is it that you do for chanson@autosuccess.biz.february 2006 19
  19. 19. sts fos ls ms sf fis MarkTewart sales and training solution Phone Dynamics To increase sales When you’re not scheduled on the floor, most effective forms of communicating, they and profits, spend make some calls, and mystery-shop other need to be able to see you in their mind’s time preparing and dealerships in the surrounding area and eyes. When you stand up, you will gesture monitoring the phone listen to your competitors. What you’ll hear more, use more voice inflection and voice opportunities as you in those phone calls is so poor, that you will tone and be a much better communicator would walk-in traffic. be shocked. Shocked not only by what you than if you sit.A typical dealership has as many phone sales hear, but also by the fact that you may be justopportunities as it has walk-in traffic. as poor in your phone skills. 3. Smile before you dial or pick up the phone. Allow the customer to hear andAn effective system has the following: There are basically eight different types of see you through the phone. Give them the • Training for the receptionist incoming calls: excitement that will allow you to stand apart • Training for the sales people and • Information from other sales people. Who do you think management • Finance they will choose to see? • A uniform and cohesive way to handle • Lease incoming phone opportunities • Trade 4. Think like a customer. Share an attitude of • A log that treats phone opportunities as • Bad credit servitude with your customer. The origin of serious as walk-ins • Advertisement the word sell is to serve. • A phone prompt card or other device • Price that gives direction to the sales person • Best price 5. Ninety percent of sales opportunities during an incoming phone call are lost in the first 10 seconds because the • A management review system of all Find a partner and role play each one of sales person has not created a direction for incoming phone opportunities the eight types of incoming calls. Do a the call by immediately asking questions. • A formal call-back system typical sales call involving any of the eight Ask questions about the vehicle he or she types of phone calls as you would normally is buying and about the vehicle he or she handle. Personally mystery-shop your own is driving now. Use the answers you get dealership and listen to what the receptionist, to create dialogue and rapport with the Sell More Cars other sales people and managers are saying customer. and doing. 6. Get the customer’s number, name and set With CarTube The Internet has increased phone an appointment. Do these next three things opportunities. Effective Internet sales people and you will accomplish what the majority know that to increase sales from the Internet of sales people never do. Ask the customer if Includes free software to create ßyers you must move the customer from the he or she is calling from home or work and Internet and e-mail to the phone and then an get that number. Ask the customer to spell his Attaches easily to your entire inventory appointment. or her first and last name. Ask the customer Great for after-hours shoppers if he or she will be available to come in and Here are some simple phone tips that look at the vehicle and get some figures this Quality weather resistant construction can increase your phone effectiveness afternoon or evening. Give the customer an immediately. assumptive, alternative choice. This silent salesperson works 24/7 1. Respect the phone customer. The first The opportunity exists for you to increase step to increasing your phone effectiveness your sales immediately through better phone is to decide to treat your phone opportunities techniques. E-mail me at the address below with the same respect as your walk-in with the word phone in the subject line and opportunities. Phone customers tend to be I will send you five ways to handle the even better prospects. When someone has question of best price over the phone. had dialogue with you and begins a sales process that creates trust, your chances of closing the sale and making a higher commission go up. for 2. Stand up while taking or making a phone Call ree a F ple! call, because you increase your ability to Sam 1.866.973.9490 breathe and to use your legs and upper body Mark Tewart is the president of Tewart to create body language. Why does body Enterprises. He can be contacted www.cartube.com language matter if they can’t see you? When people can’t see you and they lose one of the at 866.429.6844, or by e-mail at mtewart@autosuccess.biz. 20
  20. 20. Take our customers...Please!Why chase false leads when you can have real,qualified customers?She completed an extensive application, pre-qualifiedwith flying colors, received her purchase check, andnow she just needs a car. Want her contact info?Become a myAutoloan Preferred Dealer now.Our approved customers arrive with financing in place.Our qualified customers have passed an extensiveverification process through our Preferred Placement®technology. Now, all you have to do is put them in thedriver’s seat.Each month, we approve hundreds of qualified, ready-to-buy customers in your area. They prefer all brands,all models, and great service. But they don’t requireselling – they’re ready to buy!To choose your spot on our Preferred Dealer Networkand start getting these customers, give us a call toll freeat 866.625.2668, send an email to contact@myautoloan.com,or visit our Web Site at www.myautoloan.com/dealers.In partnership with Complete Customer Contact Details Exclusive Territories Entire Credit Spectrum Applicants Exclusive Real-Time Leads by Zip Code 24/7 Online Dealer Access Customers are Buying Now REAL LENDERS - REAL LOANS - REAL TIME
  21. 21. sts fos ls ms sf fis DavidKain marketing solution Cutting Edge Strategies Used by Leading Internet Dealers There are lots of new use algorithms to predict the average time it an electronic newsletter is an effective tool processes, tools and takes to get a live answer and the average to communicate long-term. I have seen this technologies that can length of typical phone conversations. This tool used by a number of leading Internet help enhance your technology allows call specialists to go right dealers to build their brands in a casual and sales and profit results. from good-bye to hello. Predictive dialers entertaining format. The e-newsletter that Here are a few that increase the number of calls that your staff works best is the kind that allows you tocould help at your dealership. can make and the number of times you create links to sales and service specials and connect with a live prospect. It is common then allows customers to submit requestsCall until you connect for productivity to double or triple when you for more information just like they submitWithout question, the most effective strategy switch to a predictive dialer. leads on your Web site. In addition, somein your quest to set appointments with your e-newsletters provide reporting tools thatprospects is to “call until you connect.” As Voicemail and answering machine search capture the e-mail addresses of the readerssimple as it sounds, this strategy is the best technologies and track their clicks on the newsletter,method of all the strategies in connecting This unique technology allows you to which makes it easy to follow up if theywith your prospects. pre-record prospect-specific messages and showed interest in a specific vehicle or then enables you to deliver this phone call special.Predictive dialers to tens of thousands of your customersSome dealerships employ a tool called a instantly. The companies that offer this Postcards and handwritten notespredictive dialer to increase productivity service employ Internet and advanced Some leading Internet dealers are usingin their business development centers or telephone technologies to save the costs some old-fashioned communicationInternet call centers. Predictive dialers use and frustrations that can occur in making approaches to connect with their customersmore telephone lines per call center staff the same number of calls in person. I like — pen and paper. When you open yourand are used to initiate phone calls while this idea because the message can be more mailbox you typically read items with actualcall specialists are talking to prospects. They consistent and be really convincing to the handwriting while tossing items that are prospects that are touched by the dealership. computer-generated or computer labeled. When I was a floor sales person I got the Video e-mails best response from handwritten cards that A great new method to ‘wow’ your took just a couple of minutes to compose showroom and Internet prospects is to and mail. With desktop printing capabilities communicate using video e-mails. This some dealerships are sending out notes and technology allows your dealership to create postcards with pictures of the vehicle the a video using an inexpensive Web camera customer requested along with a picture of attached to a computer. The best way to use it themselves. It’s not really cutting edge but it is to make the message personal just like you has a big effect for little effort. would a personally typed e-mail. A dealer friend of mine sends about 2,000 video Two-way pagers e-mails each month with an opening rate Some leading dealers use a wireless by their recipients of 38 percent. The best device that notifies them when a lead is part is that the dealership is sent an e-mail submitted, and they respond immediately. when the message is viewed so it can follow An eCommerce director for a leading auto up by e-mail or phone nearly immediately group told me that the dealership’s close rate with an additional message. This real-time increased by 20 percent if they were able to communication method really differentiates respond within 15 minutes. a dealership from its competition. There are many more strategies at work Two-week press that can assist you in reaching your goals The two-week press process uses a and I will review them from time to time combination of communication techniques, so you can stay on the cutting edge. Keep e-mail and telephone messages to motivate experimenting and trying new things. You‚ll an Internet customer to respond. This get a few cuts, but being on the edge tends to intensive technique works, and if you decide deliver the best results. you would like to implement it, e-mail me and I will send it to you. David Kain is the automotive Internet training specialist at Kain Automotive Inc. E-newsletters He can be contacted at 800.385.0095, or A sales pitch is not always appreciated by by e-mail at dkain@autosuccess.biz, or your prospects and customers, which is why visit www.kainautomotive.com. 22
  22. 22. Why limit your profit improvement to just F&I? There are many pieces to the profit puzzle. Some companies focus on just one, and that’s not good for your bottom line— or your customers.At Resource Automotive, our 40 yearheritage has taught us that long-term profitability comes froma balanced strategy of driving revenues through processimprovement in all departments, not just one.Each of our products and services embeds innovative technology See us at NADA booth #2600as well as adherence to regulatory and compliance requirementswithin the automotive industry. Additionally, all of our tools aretailored to fit your specific sales, service and customer satisfactionobjectives.For immediate impact—throughout your organization—call www.resourceautomotive.com (866) 662-7356us today.

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