Check out the
        latest podcast
        featuring
 JULY




        Chuck Patton of
        Traffic Builders at
2010




        autosuccesspodcast.com
So you’re NOT a direct mail Dealership.
ARE YOU SURE?


          That’s like saying
          we’re just another
          Automotive Direct
          Marketing Firm.

         Or, like saying
    The Golden Gate Bridge
     is just another bridge.




We use mail merge with variable data matching via
Laser Imaging and personalized embossed credit cards on
our mailers, at less cost than the same old “key-mailers”
you’ve seen in mailboxes for the last half-dozen years... Does
your current printer offer this? Packaging so unique that it
impresses you, imagine what your customers will think!
INCREASE YOUR E-COMMERCE SALES RESULTS

                GUARANTEED!




      AUTOMOTIVE INTERNET MANAGEMENT –
  THE ONLY E-COMMERCE ACCOUNTABILITY COMPANY
        TO OFFER A MONEY BACK GUARANTEE
    Automotive Internet Management can provide you top quality training, tools and
accountability processes to increase your internet sales closing ratios. Working with you
and your staff daily to build, train and manage your operation, AIM’s hands-on, grassroots
 approach creates results, accountability and control. Our proven successes include an
  increase of e-commerce lead contacts from 14.5% to 89% – in just four short weeks!
          Let us show you how to turn the internet into your strongest sales tool!
                                                        you




                                       www.aimdealer.com
                      350 Goddard, Irvine, CA 92618 | Ph: 949.716.7716 | Fx: 949.458.8018
                                     Our Accountability Training Counts!
   Endorsed by Web Control AVV and Lexus | Recipient of the Platinum Award 2009 Dealer’s Choice Awards
AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccessonline.com. Subscription rate is $69
                                                                                    per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice
                                                                                    and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other
                                                                                    magazine to which this magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction 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, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220.
2300 Hurstbourne Village Dr, Suite 1200 Louisville Kentucky 40299 | 877.818.6620 / 502.588.3170 | AutoSuccessOnline.com / AutoSuccessPodcast.com | info@autosuccessonline.com
                                                   Ken
 Susan Givens, Publisher                           Thomas Williams, VP & Creative Director                                                             Dave Davis, Editor & Creative Strategist                                                                                                                          Brian Ankney, Account Manager                                                                                                                                                           Susie Horne, Account Manager
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           John Warner, Sales-Improvement Strategist
 sgivens1@autosuccessonline.com                    design@autosuccessonline.com                                                                        ddavis@autosuccessonline.com                                                                                                                                      super6@autosuccessonline.com                                                                                                                                                            shorne@autosuccessonline.com
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           jwarner@autosuccessonline.com
feature solution




                                                                  leadership solution




                                                                                                                                                                                                                                                                                                                                                                                                                   marketing solution
                                                                                                                                                                 sales & training solution




                                                                                                                                                                                                                                                                                                                                                                                                                                        MANAGE YOUR ONLINE MERCHANDISING, PART 1




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      CAN MODERN SOLUTIONS PROTECT AGAINST
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            LOOKING FOR NEW ADVERTISING IDEAS? IT’S
                                                                                                                                                                                                                                                                                                                                                     Three Communication Tactics to Increase Closing Percentages




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 An Interview With Rosner Toyota Scion’s Shawn Kloppman
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             DIRECT MAIL FROM THE DEALERSHIP’S


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          MAKING THE PHONE WORK FOR YOU
                                                                                                                       AUTOMOTIVE MARKETING STRATEGY




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          DON’T FORGET ONLINE REPUTATION
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            TIME TO RE-EXAMINE DIRECT MAIL
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   INVENTORY PROCESS: IN-HOUSE
                                                                                                                                                                                                                           ALGEBRA BOOKS AND CRAYONS
                                                                                                                       MID-YEAR EVALUATION OF YOUR
                                                                                        THE DEATH OF THE TRADITIONAL




                                                                                                                                                                                                                                                       The Trouble With Your Lead Management Tool
                                                                                                                                                                                             A SALES STRATEGY TO ACHIEVE




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          MANAGEMENT FOR FIXED OPS
                                                                                                                                                                                                                                                                                                    DO MEN AND WOMEN SPEAK


                                                                                                                                                                                                                                                                                                                             LEARNING THE LANGUAGE




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      OLD SCHOOL PRACTICES?
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  FISH WHERE THE FISH ARE
                                                                                                                                                                                                                                                                                                    DIFFERENT LANGUAGES?
                                                                                        DEALERSHIP PART 1




                                                                                                                                                                                             SELF SUFFICIENCY




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   OR OUTSOURCE?




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             POINT OF VIEW:
                                                                                                  ,
                   An Interview With NancyTonkin




                                                                                                                                                                                                                                                                                                                              34
                                                                                                                       16




                                                                                                                                                                                                                           28




                                                                                                                                                                                                                                                                                                                                                                                                                                         10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   14


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            22


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             26

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          30
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          32
                                                                                        08




                                                                                                                                                                                                                                                                                                    31




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  18


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      24
                                                                                                                                                                                             20




                                                                                                                                                                                                                                                                                                                                MattBaker
                                                                                                                                                                                                                              BillPhillips




                                                                                                                                                                                                                                                                                                                                                                                                                                              SeanStapleton




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               An Interview With
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              ShawnKloppman


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            StephenCravens

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           RichardWinch
                                                                                          MarkTewart


                                                                                                                        ChuckPatton




                                                                                                                                                                                                                                                                                                     PatriciaJ.Roberts




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     DougBurkert
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     TimJames
                                                                                                                                                                                              KirkManzo




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               DavidMoline


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       JimRadogna
                                                                                                                                                                                                                                                                                                                  pg 1




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             pg 6
                                                                                                                                                         pg 8




                                                                                                                                                                                                                                                                                                                  pg 3




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             pg2
                                                                                                                                                         pg1
     July 2010
                                                                                              chuck patton                                                                                   patricia roberts                                                                                                                                                                                                                                                                                                    shawn kloppman
MarkTewart          leadership solution




                                                                                                                                              PART 1
                   THE DEATH OF THE
                   TRADITIONAL DEALERSHIP
The traditional dealership is dead, but some    Solution: Manager/Coach/Team Leader is            never done this before, you will probably
have not had their funeral yet. It seems as     actively involved in the sales process from       not do this in the future. Don’t kid yourself.
though as much as some things change in the     the greeting of the customer. The new focus       Running a help-wanted ad in the newspaper,
auto industry, as many things stay the same.    is to open the relationship so the sale can be    interviewing candidates without a pre-
Every week our trainers observe things in       closed. The days of sitting behind a desk and     thought out plan for recruiting, interviewing,
dealerships that look and feel like holdovers   screaming at salespeople to bring a deal are      testing, screening, training and ongoing
from the 1960s.                                 dead. Managers will be hybrid sales coaches,      development is not trying to develop a staff
                                                assistants and information providers that         of professional salespeople.
Let’s take a look at some things still          involve the sales process, deal process and
commonly observed in dealerships that are       F&I assistance. No longer will the manager        Solution: The solution for many is
outdated and should be changed.                 be expected to save a lost deal, but will be      something most do not want to hear. For most
                                                involved throughout the process with the          dealerships, you will never put the amount of
1. Manager Towers                               emphasis on creating, not on saving. You          time, money and energy to set up a high-level
High towers built for managers where            manage things; you lead people.                   approach to getting and keeping great people.
salespeople go to get their proposal figures.                                                      It’s just a fact. The solution is to create a
The common reason for these towers is           4. Seat of the Pants Used Car                     process that involves heavy involvement
to create a good observation point of the       Inventory Management                              with team leaders, assistants and technology
inventory for managers. What these towers       The days of the guru used car manager —           that narrows the scope of your sales staff.
signify is demeaning to salespeople and         who knows all the hot cars, market figures         Most dealerships are hiring average to
adversarial to customers. These towers create   for every car on the market, what the correct     below-average people and expecting them to
a manager haven for never moving, as well       appraisal is on every trade, what every other     do a myriad of things they are not only not
as an air of supremacy.                         dealership is doing and managing the used         doing, but not capable of doing. Worse yet,
                                                inventory strictly by feel — is dead. The truth   the managers are not showing these people
Solution: Tear down the towers. Look            is that person never really existed. It was a     or inspecting the process to make sure it
around your dealership and ask yourself the     myth and a fairy tale. Nobody — and I mean        happens. If you are honest with yourself and
following question: “What do I see that looks   nobody — is that good at what they do.            this description fits your dealership, then you
like it’s from the 60s?” Please tear it down.                                                     must try something different. The long-term
                                                Solution: If you do not have a used               health of your customer base and dealership
2. The Big Green Sharpie                        inventory philosophy, system and technology       depends on this.
Deal Proposals                                  to assist you, you will forever be making
These proposals scream of adversarial “you      mistakes that are, in today’s market,             I invite you to take a moment today and
vs. me” negotiations. The figures seem less      unforgiving. You must use your knowledge          before you get busy with the everyday tasks
real and more of just a thought.                combined with inventory technology and            to take a strong look at your dealership
                                                up-to-date market data to be relevant in the      and what is being accomplished or not. Be
Solution: Use printed or screen proposals       market. The shocking truth is that the 90-,       honest. Are you fighting a battle you have
with full disclosure.                           60-, 45- or whatever-day turn systems used        never won? Do your salespeople, managers,
                                                strictly by themselves are also outdated          processes and dealership reek of the 60s and
3. Manager TOs at the End of a                  models that not only do not work, they create     70s? It may just be time for a funeral.
Sales Attempt                                   problems. Your goals are high sales, profit,
For those of you who may be new to the          ROI and yield — not just turns (more on that
auto business, a “TO” means a “turnover.”       subject in future articles).
Old-school selling means the salesperson
turns over the customer to a manager when       5. A Staff Full of Professional,                  Mark Tewart is the president of Tewart
he/she cannot close a deal. Often, the new      “Do it All” Salespeople                           Enterprises, and the author of the best
                                                                                                  seller, How To Be A Sales Superstar. He can
salesperson is berated for not turning the      This one can actually still be accomplished,
                                                                                                  be contacted at 866.429.6844, or by e-mail
customer to the manager. The reason is the      but very, very few dealers actually do the        at mtewart@autosuccessonline.com.
new salesperson feels as uncomfortable as       things to recruit, hire and train the right
the customer with this process.                 people to make this happen. If you have




08         autosuccessonline.com
SeanStapleton             marketing solution




                                                                                                                                                  PART 1
                     MANAGE YOUR ONLINE
                     MERCHANDISING
Online merchandising means merchandising            • 57 percent of users on a Web site are           2. Ease of Use: One of the Easiest
the right items, at the right time, to the right      highly likely to use the search tool            Things to do is Make Sure Your Online
people and determining the best products and        • Shoppers abandon retail sites within            Experience is Easy for the Consumer
services in your inventory to promote to your         seconds of not finding a product                 to Use
prospects and current customers.                    • More than 85 percent of automotive              Many times it’s just simple merchandising
                                                      shoppers use the Internet to help influence      tactics that can help you make the sale.
Simply put, your goal is to increase click, hits,     their decision.                                 Remember the fewer clicks, the better.
views and sales by prominently displaying,
in an appealing manner, the items customers         Today, we know that effective online              3. Display With Appeal
are most likely to want in as few of clicks as      merchandising leads to more people finding         Take control of your inventory
possible.                                           what they’re looking for and, therefore, higher   merchandizing. Do you have the best possible
                                                    conversion rates. Increasingly, however,          photos? Are they fresh, or are they a week
Now all you have to do is get them to your          online merchants are realizing it takes expert    old? Do they still show the car in four inches
sites.                                              merchandising strategies and regular updates      of snow in May? Do you have 20+ photos
                                                    of those strategies to keep shoppers engaged,     of each unit? Are you taking and using high-
With millions of cars and trucks online and         and not only achieve higher conversion rates      resolutions photos? Can you zoom in on your
thousands of dealerships selling products           as a result, but to keep them coming back for     high-definition photos to see more detail?
online it takes more than nice Web site design      more.                                             Are you posting videos? Do you have the
to be competitive and profitable. One of the                                                           best possible comments that are more than
greatest ways to create a relevant, engaging        Here are some best practices for online           just the basics? Let me ask you this way:
shopping experience is through an effective         merchandizing that have helped dealers            Do your comments make the unit stand out?
online merchandising strategy.                      increase customer traffic and conversions.         Does it include your branding “Home of the
                                                                                                      Free Car Wash” or “Home of the Free Loaner
This is even more apparent when you                 1. Be Found Early and Often: You                  Car,” etc.? Are you regularly changing your
consider a few key facts:                           Must Make the Golden Triangle                     comments, or do they stay the same until
                                                                              The key location on     the unit sells? How does your pricing look
                                                                              Google for visibility   online? Are you priced to get any action or
                                                                              as determined by        just priced? Have you incorporated the latest
                                                                              the eye activity        incentives on all of your units, including
                                                                              in the study is a       leases? Do you update your descriptions,

                                              Tweet?                          triangle that extends   pictures, features and links daily?
                                                                              from the top of         4. What Does Your

                                              Sweet!
                                                                              the results over to     Web Site Say About You?
                                                                              the top of the first     An online presence for your dealership
                                                                              result, then down to    is a must. It is a powerful marketing and
                                                                              a point on the left     communication tool, an incredible source
                                          L
                                          Loyalty Driver                      side at the bottom of   of cost-efficiency leads and a sign of
                                                                              the “above the fold”    professionalism. Your clients or customers are
                                     eNew letter Articles
                                        wsl                                   visible results. This   building brand impressions from your Web
                                        Now
                                        No Appearing                          key area was looked     sites and merchandising. When they get there,
                                                                              at by 100 percent of    will it support your brand image or sell you
                                              on Twitter.                     the participants. In    short? Just think about the number of prospects
                                                                              the study, this was     that are not converting because of your online
                                                                              referred to as the      merchandising, or lack of it. Are you taking
                                                                              “Golden Triangle.”      advantage of the latest technologies for online
                                                                              Generally, this area    merchandising? Can you view the picture in
                                                                              appears to include
      Just another way to spread                                              top-sponsored, top-
                                                                                                      a full-screen mode? Are you changing your
                                                                                                      follow-up based on what they looked at or how
            the good news.                                                    organic results and
                                                                              Google’s alternative
                                                                                                      often they have been back? Are you tracking
                                                                                                      views, clicks and conversions? What does your
                                                                              results, including      Web site say about you?
                                                                              shopping, news or
                                                                              local suggestions.      Next month, we’ll take a look at some more
            Innovative Enewsletter Solutions                                  When customers          best practices that dealers have found helpful
           loyaltydriver.com | 866-964-6397                                   can find what            in increasing their bottom line that you can
                                                                              they’re looking for     put into effect in your dealership.
                                                                              — especially with
                                                                              heavily advertised      Sean Stapleton is the executive vice
                                                                              and time-sensitive      president of VinSolutions. He can be
                                                                              products — they         contacted at 866.587.7629, or by e-mail at
                                                                              buy.                    sstapleton@autosuccessonline.com.


10          autosuccessonline.com
The Ron Tonkin Auto Group is one of the most storied businesses in the
automotive industry. The dealer group’s namesake, Ron Tonkin was president
 of NADA in 1989 and is a legend for his tireless and outspoken defense of
 dealership rights. Following in the family tradition of leadership, Ed Tonkin,
  currently serves as this year’s NADA president. Now, Nancy Tonkin, Ed’s
  daughter, has joined the business to help drive the dealership’s e-commerce
   operations. We sat down with Nancy Tonkin to ask her how they are
   approaching today’s consumer.

   AutoSuccess: The Tonkin name is quite well known in the industry.
   You’ve just recently joined the organization. What do you think so far?
   Nancy Tonkin: Of course the automotive business runs deep in our family,
    so I grew up absorbing much from my dad and grandfather. Of course, now
    that I’m working directly in the business, I realize that there is a lot involved
     in making it work. I’ve been involved for about three years now and have
     learned so much. It’s exciting learning all the aspects of our company and
     I’m learning more and more every day.

      AS: What types of things have you been doing over the last year?
      NT: I’ve been learning each area of the dealership, and have attended the
      NADA Dealer School. Dealer School really helped me learn all about the
      car business, starting with the financial statement. My favorite aspect of the
      business is working with customers, and making sure they have the best
       car buying experience possible. I suppose I wouldn’t be a Tonkin if I didn’t
       like that. My grandfather taught me that your month is built one car deal at
        a time; that each opportunity to do business with a potential customer is
         important. I think this type of ethic is one of the things that’s made our
          company so successful.

           AS: So what is your current role?
           NT: I’m now in charge of driving our e-commerce and CRM
            initiatives. This is a very exciting role for me because it’s always
             evolving. I think being relatively new to the business gives me a fresh
              perspective to using technology and digital marketing techniques
                that maybe some of the old school guys are apprehensive about.
                Fortunately, our organization has always been very forward
                thinking when it comes to using the Internet and CRM to grow
               and manage our business. We have a great technology partner,
              DealerPeak, that we’ve been with for years. They help keep us on
            the cutting edge of technology and help us sort through all the fluff
          that’s out there.
AS: What type of solutions does your technology                              closing ratios and gross profits are both generally higher than our
partner provide you with?                                                    traditional deals.
NT: DealerPeak is our vendor for just about everything except our
DMS system. Their solution is unique in the industry because they            AS: That’s surprising. Why do you think your closing
can provide so many things on one single platform. They provide              ratios increase with online negotiation?
our Web sites, CRM, online negotiation, inventory, mobile sites,             NT: To me, it makes perfect sense. The customers who engage in the
lead management and e-mail marketing; plus I can manage all of               online negotiation process are usually farther down the buying funnel.
these applications for all of our 16 locations with just one login. I am     They have usually landed on a specific vehicle and are now ready to
approached all the time with vendors who claim they can provide all          discuss the specifics on payments, financing and what they can receive
of these things, but I’ve yet to see any solution that can provide one       for their trade. They are amazed that they can get all this online. When
holistic system like they can.                                               you are very transparent with the customer, they become engaged and
                                                                             are much more likely to end up purchasing with us.
For instance, they’ve just created a feature that allows me to view
exactly what someone on our Web site is looking at and which pages           AS: But how can you hold gross? Doesn’t this make it
they are on from within the CRM. By logging the Web-surfing activity          easier for the customer to shop your competitors?
and making it available in the CRM, I can get tremendous insight             NT: This is what many people in our organization were afraid of, but
into the customer’s thinking. As an example, let’s say that a salesman       what we found was just the opposite. Again, by giving the customer
has been working with a lead and for some reason closed that lead.           all the information they need to make a decision, we found they are
Well, we know that many times a salesperson might close a lead that          less likely and less able to shop. I think this is probably because, in
shouldn’t be closed. Now let’s say that same customer comes back to          order for the customer to shop it around with a competitor, they would
our Web site a day later and starts looking at more vehicles or maybe        have to physically go down to the dealership. There aren’t many
they visit our finance application but don’t fill it out. I can see all this   people, especially in my generation, that think this is a good time.
with our CRM. So as a manager, I know that this person might be              Plus, by being up front and transparent, the customer has a positive
concerned about their ability to get financing, but they are still very       experience from the start. That way when they do come to the store to
much an opportunity. At this point I would send the customer an e-mail       take delivery of their vehicle, they aren’t exhausted and are much more
describing our many financing options and phone call. It’s like a “Save       receptive to considering the F&I products that we offer.
a Deal” meeting using the customer’s Web site activity. I can even see
their past surfing activity prior to the customer submitting a lead. This     AS: Does the online negotiation system
kind of stuff is very exciting.                                              work with your CRM?
                                                                             NT: Absolutely. Like I said, DealerPeak’s online negotiation system
AS: That’s sounds amazing. What other marketing                              provides one unified platform for the entire Tonkin organization, so
strategies do you guys use in this tough market?                             customers who call in or visit the showroom without purchasing can
NT: Something that has had a big impact on our sales is online               easily be channeled into the online negotiation system. This is one
negotiation. We piloted this system with our technology partner last         of the initiatives I’m working on now. We believe that using online
year. Essentially, it allows us to desk deals with our customers over        negotiation tools will allow us to re-engage customers who have
the Internet and through our Web site. We have two Honda points              not yet purchased. I’m also working with our advertising agency to
about six miles apart. We initially just put it into one of those stores.    develop a marketing campaign that lets our market know that they can
Within 30 days, the number of leads we were getting from the site with       have a hassle-free experience with our dealerships. After all, that is
online negotiation doubled with the same amount of traffic. We didn’t         exactly what today’s modern consumer is looking for. As a dealership,
do anything as far as traditional marketing to promote it, either. Just      if we do a good job at offering that, everyone wins.
by allowing our customers to negotiate the specific terms of the deal
online, we were able to double our conversion ratio.

AS: How has online negotiation been
working for you since then?
                                                                             For more information about Nancy Tonkin, or the
NT: It was a real lifesaver last year. While most of our competitors’
                                                                             Ron Tonkin Auto Group, visit www.tonkin.com.
Web traffic and leads were significantly down last year, we were able
to maintain — and even eek out a slight increase — in our Web leads          For more information about online negotiations, contact
last year. I attribute this to online negotiation. Today we consistently     Jock Schowalter at 866.885.9751, or by e-mail at
see hundreds of leads each month from online negotiation. Our                jschowalter@autosuccessonline.com.
TimJames           marketing solution


                   INVENTORY PROCESS:
                   IN-HOUSE OR OUTSOURCE?
I’m often asked about the benefits of               Web site they visit. Your goal should be          Create the ad as soon as possible!
bringing the inventory process “in-house” vs.      to exceed the consumer’s expectation and          1. Your vehicle’s online ads can be seen by
“outsourcing,” which is really a “cart before      make yourself stand out from the crowd.              more people in one day than most of your
the horse” discussion. Before determining                                                               other advertisements are seen in a week (or
who should perform your inventory process,       3. Vehicle Description — The vehicle                   month). Every day a vehicle sits on your
you should determine what your inventory         description is your opportunity to “sell the           lot without an effective online ad costs you
process should accomplish.                       vehicle.”                                              thousands of potential online shoppers and
                                                 • The content of your vehicle description can          hot leads.
Because of the Internet, your inventory            increase your SEO.                                2. As previously established, the content of
process is more important to the success         • Canned vehicle descriptions are dull, and            your online ads can dramatically increase
of your dealership than it has ever been.          shoppers will ultimately just stop reading           SEO, further increasing the need for your
You spend more money now than ever to              them. Your goal should be to create the              inventory process to accommodate your
increase your points-of-presence (POP) on          best vehicle description that you can; not           online ads being created the same day a
the Internet. You’ve probably purchased a          putting the least amount of effort into it           vehicle hits your lot, or the day it comes
search engine optimized (SEO) Web site and         that you can.                                        out of detail at a minimum!
utilize sites such as Craigslist, AutoTrader.    • What you say isn’t always as important as         3. Dealers from hundreds to thousands of
com, Oodle.com, etc. You are probably trying       how you say it. Be creative and have fun.            miles away are now prospecting your
to figure out how to maximize Facebook and          Build value and inspire mental ownership.            customers. Your inventory process must
other social media, too. Make no mistake,          If you would highlight it on the lot, say it in      facilitate a timely creation of the most
the people responsible for your inventory          your online ad.                                      robust, personalized and compelling ad
process are no longer just shooting photos and                                                          to win.
printing window stickers; they are creating      4. Price — You use “price” to drive traffic
what are potentially the most important ads      from all of your other media ads, why not on        Display the ad across the Internet as
that your dealership has today.                  the Internet?                                       soon as possible!
                                                 • You use “was-is pricing,” “specials,”             1. Obviously, the number of people who
Establishing an inventory process that              “demo pricing,” “manufacturer incentives”           can potentially see your vehicle’s ad
maximizes your online advertising’s potential       and multiple other price promotion                  depends how soon the ad is distributed
and provides the greatest ROI can be easily         techniques to create urgency on the lot             and displayed. The goal of your inventory
accomplished by following some simple rules:        and throughout your other media; utilizing          process should be to distribute and display
                                                    these same pricing techniques online can            your ads the same day they are created.
Create the most informative and                     generate the same response.                      2. You pay a lot of money to establish online
emotional ad that you can.                       • Be transparent. Inconsistent pricing can             points of presence (POP) to display your
1. Video — Every vehicle needs a video.             cause you to lose consumer confidence,               vehicle ads across the Internet and create
• If named and referenced properly, a video         and you may read about it (along with               visibility 24 hours a day, seven days a
  can dramatically increase SEO.                    thousands of potential consumers) on a              week. Every day (every hour) that you
• A video is only as good as its content.           social network or blog.                             have a vehicle ad created but not displayed
  A video that “sells” a vehicle’s unique                                                               with your marketing partners is costing
  features will create trust, reliability and    5. Engagement Tools — Provide tools                    you money!
  urgency, dramatically increasing the           that allow shoppers to contact you the way
  emotional response to your ad and inspiring    they want to contact you.                           Imagine if your dealership was around when
  mental ownership.                              • The means by which people communicate             one of the previous mass media channels
• Live video is king. Live walk-arounds are         with each other has changed. When                first emerged. Would you have adjusted your
  incredibly engaging and humanize your             wanting an immediate response, people            business strategy to maximize its potential?
  dealership in a sea of regional competition.      now often prefer to send text and chat           Your Internet ads could potentially be the
  Again, the content of the video must “sell”       messages.                                        most important ads in the history of your
  the vehicle the same way you would sell it     • If your dealership offers consumers the           dealership, so before we start pondering who
  “on the lot.”                                     ability to communicate with you the same         should be responsible for creating the ads
                                                    way they prefer to communicate with one          (in-house or outsourced) let’s first spend some
2. Photos — The number of photos that you           another, they are more likely to do so while     time discussing the impact of your ads and the
have is less important than having the right        online and looking at your vehicle ads.          importance of defining a process that creates
photos.                                                                                              highly emotional (and informative) ads for
• If named and referenced properly, photos       6. Window Stickers — In the old days, an
                                                                                                     your inventory and then distributes (and
  also increase SEO.                             inventory process evolved around creating           displays) those ads as quickly as possible with
• To the consumer, every vehicle is different.   content for a window sticker and then sending       the day the vehicle is ready to sell on the lot
  Photograph everything unique or different      it (along with a few standard photos) to a          as the goal.
  about each vehicle. The easy rule to           Web site provider as an online ad. Today,
  follow is that if you would discuss it with    your inventory process must evolve around           Tim James is the director of sales with
                                                                                                     HomeNet, Inc. He can be contacted at
  a consumer “on the lot,” show photos of it     creating the content for your online ads and        866.924.6573, or by e-mail at
  online.                                        then once you have the rich content necessary,      tjames@autosuccessonline.com.
• Consumers get tired of seeing the same set     push a button and extract some of that content
  of vehicle photos for every vehicle on every   to create your window stickers.


14          autosuccessonline.com
ChuckPatton          leadership solution


                   MID-YEAR EVALUATION
                   OF YOUR AUTOMOTIVE
                   MARKETING STRATEGY
It’s time for a mid-year review. Remember       convert each recall customer into a long-        things because “this is where the market
the automotive service marketing objectives     term fan. Have your service manager meet         is going” or “your competitor is doing it.”
you put into place at the beginning of the      every one of them — such as you might            Be careful about experimentation. Conduct
year? How are they working for you? Are         with the sale of a new car. Target them with     some research and make sure that any
you on track to meeting your goals? Are you     a segmented letter or make a phone call to       technological expenditure fits within your
ahead or behind where you wanted to be?         address the opportunity. Every dealership has    budget and is a long-term solution, not a
                                                warranty opportunities.                          short-term jump on the latest bandwagon.
Depending on the answers to these
questions, you may want to consider making      Older Model Programs                             E-mail Marketing
adjustments to your marketing plan for the      The units in operation most associated with      Dealerships set high expectations for e-mail
second half of the year. As you take stock      dealership loyalty (newer cars or cars under     because they are sold on the concept that it
and plan your next six months, consider the     warranty) have diminished significantly,          can replace direct mail. E-mail marketing
following areas of opportunity upon which       and it will be quite some time before service    is cost efficient and a great way to directly
you can capitalize.                             opportunities are where they were several        reach the small segment of your customers
                                                years ago. Create a strategy to become the       who actually respond to e-mail. However,
Retention                                       new home for all older model vehicles. You       our average client has e-mail addresses for
The retention measurement that makes the        have master technicians who have been            only about 21 percent of his or her customer
most sense is the one that measures the share   with you longer than the age of some of          base. If you use e-mail marketing, make
of your customers’ business within a year.      those older vehicles! Who better to fix those     sure you incorporate it with direct mail and
Start by separating your customers into the     vehicles? Loyalty or older model programs        other solutions. To maximize your e-mail
following categories:                           that can be quite profitable do exist. Make       marketing efforts, create an e-mail collection
• Number of times your customers have           sure your writers know how to sell the           process. Ask your customers how they prefer
   come in during the past 12 months            program and be willing to give a standard        to be contacted. That will give you a good
• Number of customers doing all their           discount/benefit package.                         indication how to really reach your customers.
   service with you
• Number of customers added in the last 12      Marketing                                        Spend Your Time
   months                                       Separate your marketing investments into         Being a Great Manager
                                                what has produced a direct result versus what    This is an old-school concept. Because most
What are you doing to retain your customers?    has kept your name in the marketplace — and      service managers are being pulled in so many
Are you providing the best service in the       track the results for each category. This will   different directions, they can’t do any one
market and going the extra mile to keep your    allow you to look at what each investment        thing well. This is an environment where
customers happy? Consider loyalty programs      yields in order to determine whether or          managers can stray from their core purpose
and perks to show your commitment to a          not you’ve invested your marketing dollar        of taking care of customers and managing
long-term relationship.                         wisely. If you haven’t already, plan through     the shop. Be sure not to lose that perspective
                                                the end of this year — and even include all      when faced with additional expectations
Unique Opportunities                            of January 2011. Most people give up on the      and responsibilities. Every purchase you
Warranty work affects us all, and Toyota        last and first months of the year just because    make and every partner you work with
corporate is learning all too well how much     they didn’t have anything planned. These are     should strengthen your position within the
cost is associated with it. For the dealer,     wasted opportunities if you have not prepared    dealership, not give you more work.
however, warranty work can be a gold mine.      for them.
Some dealers are saying that close to 40
percent of recall customers were new to their   Technology Assessment                            Chuck Patton is the founder and CEO of
dealerships. Recalls are a great opportunity    Embrace the technology that comes your           Traffic Builders, Inc. He can be contacted
to make an impression on customers who are      way as long as it helps you manage your          at 866.859.8520, or by e-mail at
not typically working with the dealership.      customers and your employees better. Too         patton@autosuccessonline.com.
Train your team to spend some time to           many companies are telling clients to do




16          autosuccessonline.com
DougBurkert             marketing solution



                     FISH WHERE
                     THE FISH ARE
In today’s economy, it is easy to try to cast        partner should be able to help with this.          represents an opportunity for continued
a wide net, hoping and praying to catch a                                                               exposure and each sponsorship represents a
buyer. While it is true that buyers come from        Of course, displaying a prize is another way       chance to adorn dealership walls with photos
all directions, each summer — and in warmer          to gain positive exposure. Drive the prize         and press clippings that build good will.
climates, every day of the year — prospects          vehicle and position it by the contest hole.
gather in one place: the local golf course.          Be sure to bring along literature describing       Whether or not someone wins big,
                                                     the contest, the prize and, of course, the         sponsoring charity and corporate events
Not only are these individuals prospects,            dealership. Don’t forget business cards.           delivers ongoing positive effect. Golfers who
they’re great ones. Whether they are taking                                                             take part are often community and corporate
part in a charity event or corporate outing,         Often, dealership staff will play in               leaders. As such, they have a broad sphere
golfers represent a highly coveted market            tournaments to meet golfers. One dealer we         of influence on other buyers — buyers with
segment. With average income north of                work with sends a retired salesperson to help      a similar demographic. Be certain they will
$100,000 and total net worth averaging more          with registration and then staff the tee area      spread the word about the event and your
than $500,000, golfers have money to spend.          for the prize hole, where he points out to         dealership’s involvement.
                                                     participants that their second best drive of the
Considering the average golfer is around 50          day might be when they drive the car home!         Many dealers leverage their involvement in
years of age, they often have a new driver or        Such personal engagement is an incredibly          the showroom. Before and after an event,
two in the house. In addition, when they visit       valuable way to generate greater interest in       they display event signs and banners, leading
dealerships, they are less likely to haggle as       the dealership, its products and its services.     to year-round reinforcement of the positive
much on price, which makes for a better sale.                                                           community involvement and support.
                                                     Ongoing Opportunities
Sponsoring golf events delivers tremendous           A key benefit of tournament prize                   Focus on Returns
opportunities to reach these potential buyers        sponsorship is that the ability to drive sales     Perhaps the best part of integrating such
and strengthen relationships with them.              does not end when the event does. By               sponsorships into a dealership marketing plan
Working with an insurer to offer prizes for          arranging with event sponsors to get names         is the relatively low cost involved — and the
hole-in-one contests, shootouts, putting             or by engaging participants and gathering          potential large return on investment. It is easy
contests and closest-to-the-pin competitions         leads throughout the tournament, dealers           to incorporate announcements about the event
can bolster dealership marketing efforts and         have a collection of prospective buyers for        and sponsorship into an ongoing ad budget.
lead to even greater success.                        potential follow-up. Some events provide           On-site promotion is, at most, an incremental
                                                     participants goodie bags, which can include        cost — production of some print material and
Engaged and Accessible                               dealership coupons or other materials.             deployment of one or two staff members.
By sponsoring charity golf tournaments
and corporate golf outings, car dealers gain         Of course, if someone does win big, the            Because insurance is available to cover the
repeated exposure to potential buyers —              resulting publicity and its value skyrocket.       cost of prizes, the bang can be much larger
from pre-event publicity to opportunities            Last year, for instance, a participant in an       than the buck spent to generate it. It is
during the tournament itself to post-event           insured event scored a hole-in-one after           possible to reduce costs for this, as well, by
follow-up. It is important to maximize this;         a string of rather disappointing — okay,           insuring the value of a vehicle lease or down
work closely with event organizers to do so.         embarrassing — performances on earlier             payment, rather than an outright car or truck
                                                     holes. His success not only earned him             giveaway. Again, working with an insurer
At the event itself, opportunities to engage         a brand new $30,000 German import,                 with prize and promotion experience allows
these prospects intensify. Because they are          it generated publicity throughout his              such customization.
golfing, participants are relaxed. Moreover,          community and beyond, leading to a wealth
because they are supporting a charity they           of positive mentions for the sponsor.              Regardless of the extent of involvement or
believe in or because they are being treated to                                                         sponsorship, taking part in such events can
golf at a corporate event, their frame of mind       With more than 1,000 vehicles awarded to           help dealers catch more buyers by fishing
is likely positive; this is an ideal situation for   hole-in-one winners, we have seen similar          where the fish are — on the golf course.
dealership interaction.                              situations play out around the world. Years
                                                     ago, we awarded a prize to someone who             Doug Burkert is the president of the
It’s important to make good use of signage —         made a hole in one on the first shot he ever        National Hole-In-One Association. He can
at the registration area, throughout the course      took at a golf course. We have had winners         be contacted at 866.859.6407, or by e-mail
and at the post-event venue. A prize insurer         as young as seven years old. Each winner           at dburkert@autosuccessonline.com.




18           autosuccessonline.com
KirkManzo          sales & training solution


                     A SALES STRATEGY TO
                     ACHIEVE SELF SUFFICIENCY
It has often been said that to be successful we     who sell 300 to 400 units annually and even        To be conservative, we will use five years for
must learn to master those things that we can       one that sells 800 to 900, this is not the norm.   our conversation.
control. As a sales professional, what can you      So what common trait do these top producers
control?                                            have that makes this possible? There are           If the average customer replaces their vehicle
                                                    many elements that contribute to these             every five years and an average sales person
The dealership’s inventory? The                     superior results. Certainly one common thread      sells 100 units, then how many customers
manufacturer’s incentives? The dealership’s         is they don’t just catch ups on the lot; they      would you need to become self sufficient?
advertising? Your manager’s mood? Your              work their customer base.                          That’s right, 500! It would take about five
competition’s offers? Product pricing? Your                                                            years to become self sufficient. Now ask
attitude? Your sales skills? Your product           So the question might be, how many                 yourself how many cars are in your household?
knowledge? The number of sales                      customers would you need to become self            One, two, three, or more? The typical customer
opportunities (Ups)?                                sufficient? The idea is to put yourself in a        will have two. Taking this into consideration,
                                                    position where you control the things you can      do you have 500 sales opportunities or 1,000?
Let’s focus on the last item, sales opportunities   control, like your relationships with your past
(or Ups). Whether you are new to the industry       customers.                                         Would it be unreasonable to think that you
or have worked at your dealership for years,                                                           could receive one referral from each customer
                                                    There are two fundamental audiences to target      once every five years? Sure you could, if you
there are certain numbers that you should be
                                                    when searching for new sales opportunities:        ask. Now you would have 1,000 customers
aware of when planning your sales effort.
                                                    Internal vs. External. Internal would be           who on average have two cars per household.
The average sales person in America will
                                                    customers you sold to previously or perhaps        This would give you 2,000 sales opportunities.
sell how many vehicles per month? When
                                                    the dealership (orphans). External would be        Divide that by five years and now you have
presented with this question, most students in
                                                    new customers.                                     400 units sold each year. Feel free to go ahead
my sessions respond with 10 to 12. The results
are unfortunately much lower. The monthly           What advantages does the Internal customer         and cut those numbers in half. You would still
average is around eight. Annualized, we are         provide? They already know the brand. They         end the year with 200 units sold.
talking about approximately 96 units. To            were willing to conduct business with your
keep the math simple we will use 100 as our         organization previously. This individual may       Oh, and by the way, if you had sold 200 units
reference point.                                    even have purchased from you personally.           in 2009, would you have been upset? I would
                                                                                                       imagine if at the end of 2010 you sell 200,
The first question you might ask yourself            So how many of these great people would you        units, it will have been a good year.
is, how did you do last year? Were you              need to become self sufficient? Referring back
above average? Below? If you were above             to our conversation above, most automotive         Good luck and good selling.
then good, 2009 was a tough year for our            sales people will sell approximately 100 units
business. If you were above average then            per year. Now estimate: How often does the         Kirk Manzo is the president of The
                                                                                                       Manzo Group. He can be contacted at
how much better were your numbers? 120?             average consumer replace their vehicle? Sure       800.858.6903, or by e-mail at
150? 180? 200?                                      it would be fantastic if they replaced them        kmanzo@autosuccessonline.com.
                                                    every three to four years (think leasing), but
While I have worked with sales professionals        the dominant cycle remains four to five years.




20          autosuccessonline.com
DavidMoline           marketing solution


                     LOOKING FOR NEW
                     ADVERTISING IDEAS? IT’S TIME
                     TO RE-EXAMINE DIRECT MAIL
There is no question that the Internet is               dealership “brand” and driving traffic to your             key. Therefore, a synergy must be created
embraced by dealerships. Properly executed,             store and your Web site.                                  between the different media. One medium will
dealership Web sites — along with texting                                                                         influence the effect of the other and generate
and social media like Facebook, Twitter, etc.           Another advantage of direct mail is                       an overall higher impact. For example, a TV
— can provide a meaningful and long-term                accountability. Because a mail campaign is a              spot with a specific offer supported by a direct
contribution to sales.                                  unique one-on-one communication tool, you can             mail campaign will most certainly increase
                                                        easily determine your cost-per-person reached             response. By integrating media, creative
But in the frenzy to increase one’s digital             and, by tracking the results, calculate the cost-         and planning, you will deliver a stronger
presence, let’s not forget about one of the most        per-response and cost-per-sale.                           dealership “brand” in a more cost-effective
effective and targeted mediums around —                                                                           way. It has been suggested e-mail advertising
direct mail.                                            Today, developments in information technology
                                                        provide you with a wealth of personalization              will replace direct mail, yet it is direct mail
Direct mail can be key in helping build and             possibilities to help identify and select the right       that drives Web traffic.
maintain a one-to-one relationship between              set of demographics for a targeted mailing
your dealership, your customers and your                                                                          So if you’re looking for something “new” for
                                                        and the ability to digitally print variable and           your next campaign, consider direct mail as
prospects. Let’s face it: With all the Web sites,       personalized data, giving direct mail a leg up
e-mails, tweets and “friends,” not to mention                                                                     an integral part of your mix. Remember, direct
                                                        over the increasingly fragmented coverage of              mail is an intimate communication. It enters
TV messages, radio messages, outdoor and                mass media. It’s this ability to address every
guerrilla advertising bombarding us every                                                                         the consumer’s sphere through their mailbox.
                                                        prospect and every customer as one person                 It offers a physical contact; they touch the
single day, mail is still the cornerstone of            with a “made-to-measure” message that
human personal communication. Today,                                                                              paper and you can influence their behavior
                                                        showcases your dealership with a relevancy                through your message.
technology allows us to personalize each                that encourages action.
mail piece to the customer or prospect.                                                                           David Moline is the owner/manager of
A well-designed and well-written direct                 With numerous media options and limited                   Advertising Marketing Partners. He can be
mail campaign will command the attention                consumer attention, efficiency and                         contacted at 866.406.6493, or by e-mail at
and time of its recipient, establishing your            productivity of advertising investment become             dmoline@autosuccessonline.com.




                                                                 TEXT                                         WITH
                                                                                                              WITH


                                                                                  SUCCESS
                                                                Digitize your traditional media with text IDs.

                                                                • Inventory on the go!                        • Text for info
                                                                • Text to win contests                        • Text customers responses
                                                                                                                to inquiries
                                                                • Text to join


     Websites             |   Hyper SEO             |       ILM     |   Mobile           |   Texting          |    SEM
     DealerHD.com
     Call to setup your demo                            |   866.222.7712

22          autosuccessonline.com
JimRadogna             marketing solution


                      CAN MODERN SOLUTIONS
                      PROTECT AGAINST OLD
                      SCHOOL PRACTICES?
Much has been written about automotive                of deceptive advertising. Now, I long-ago         man enough to discuss his concerns and
online reputation management and,                     realized that some customers have tendency        not hide behind a fraudulent posting.”
fortunately, there are a number of companies          to misread advertisements, so, in order to        Is it just me, or is this the worst possible
and consultants now available to assist dealers       give the dealership the benefit of the doubt,      way to try to handle a negative review??
in getting a handle on this crucial subject.          I looked up the ad on their Web site. Well,       Eventually, the GM got involved and
Reputation and customer satisfaction is of the        sure enough it was questionable at best and       the problem was finally rectified to the
utmost importance to dealers, and there is little     went astray of state advertising regulations.     customer’s satisfaction (so I guess it was
doubt that many negative online postings are          The people who wrote that ad may be               a real customer with a real complaint and
either questionable or do not reliably portray        patting themselves on the back for bringing       not a fraudulent posting). The customer
the true culture of the dealership.                   customers across the curb, but at what cost?      very graciously posted an update about
                                                      The customer not only did not buy from            the resolution, but also responded about
However, I believe that a dealership’s                the dealer, but also gave a glowing review        the employee that attacked him and called
reputation is difficult, if not impossible, to         and recommendation of the competitor who          him a liar. The question that comes to mind
manage when certain staff members do not              ended up earning their business.                  is this: What has more significance in the
operate ethically and resort to “old school”                                                            mind of someone reading this review —
deceptive practices. Looking through some           • The next dealer was accused of payment            that the dealership ultimately handled the
of the sites that rate dealers, I found some          packing by the finance department.                 complaint or that someone in the dealership
interesting examples:                                 According to the post, the customer               raked the customer over the coals for
• A dealer reviewed on one of the sites                                                                 complaining in the first place?
                                                      attempted to rectify the situation by
   has dozens of negative posts about bait            returning to the dealership to discuss          There are a number of excellent firms that
   and switch, refusal to sell at advertised          the issue but apparently received no            specialize in online reputation management
   prices and other questionable acts. I was          satisfaction. After the customer posted         and I highly recommend that dealers consider
   a bit surprised at the volume of negative          the negative review, a customer relations       utilizing their services. But it important to
   feedback and I have to wonder who’s                rep from the dealership responded with a        realize that while these companies do an
   watching the store. But fear not, the              nice apology and offers to help — so far,       outstanding job, it may not be possible to
   brilliant perpetrators of all of this negative     so good, (although it was 21 days after         mitigate the damage caused by ethically-
   feedback had a plan. They simply added             the original post). Here’s where it goes        challenged personnel. The first and most
   some positive posts to the site, which of          downhill: The next post comes from an           important step in managing one’s reputation
   course were exposed as coming from the             “anonymous” employee of the dealership          is having zero tolerance for bad behavior by
   dealership’s IP address. So much for that          who proceeds to berate the customer by          employees.
   idea. How does this dealer defend against          accusing him of posting fraudulently. The
   various staff members allegedly lying to           employee stated that the customer’s issue       Jim Radogna is president of Dealer
   customers and then trying to cover it up?          couldn’t have happened; the company is          Compliance Consultants, Inc. He can be
   It’s sure not going to be easy.                    wonderful, etc. “Anonymous” actually            contacted at 866.704.8657, or by e-mail at
                                                                                                      jradogna@autosuccessonline.com.
                                                      remarked that the customer should be
• A post on another site accused the dealer           “ashamed of himself” and “should be




24           autosuccessonline.com
An Interview with ShawnKloppman             marketing solution


                    DIRECT MAIL FROM THE
                    DEALERSHIP’S POINT OF VIEW
                    An Interview With Rosner Toyota Scion’s Shawn Kloppman

“I think direct mail is huge,” said Shawn        with some of our direct mail. We’ll take it a     AS: Based on your experiences, what
Kloppman, general manager of Rosner              step further from our mainstream advertising      techniques with direct mail would
Toyota Scion in Stafford, Virginia. A 21-year    and really try to bring it into the homes of      you recommend to drive traffic into a
veteran of the car-selling game, Kloppman        our current owners and make sure they’re          dealership?
has seen the industry go through a number        aware that “Hey, this is a really big deal, and   SK: You really need to take a look at your
of expansions and contractions. While            it doesn’t come around that often.” On the        entire owner database and determine how
he’s embracing new technology to keep a          flip side, if we don’t have a strong message       many viable people you have there, and then
marketing edge on his competition, he also       from the manufacturer, we’ll go for certain       come up with a marketing plan on how often
believes there’s no substitute for the basics,   needs that our dealership might be facing. If     you want to send mail to the people. I believe
done correctly. We sat down with Shawn           we need pre-owned vehicles, we will target        that anything more than once a quarter is
and talked about the way his dealership uses     certain year/model owners. We’ll look to          just too much, so you really want to divide it
direct mail in their marketing, and how things   service department R.O.s for cars that have       out where you have a decent sampling every
have advanced.                                   60,000 miles or are three years old and higher    month. You need to have a consistent message
                                                 and will drop to those customers. Basically,      and make sure that entire sales staff knows
AutoSuccess: Shawn, where does                   we’re going to get what we’re looking for.        what’s going on any particular week or month
direct mail fit into your overall                                                                   when people do come in or contact us; it lends
marketing strategy?                              AS: Can you describe for us a direct              credibility to the entire process.
Shawn Kloppman: It’s currently about             mail campaign that you’ve used that
one-third of our budget. If we look at what      was particularly successful?                      AS: Any final thoughts?
we spend on advertising on a monthly basis       SK: For us right now, Toyota has a 0 percent      SK: The days of the direct mail “drop and
in any form — print, cable, radio or direct      financing plan, which has been going on            go” company are gone. There are a lot of
mail — we spent a lot of money trying to get     for couple months. Typically, they don’t          companies out there that tell you they’re
new customers every month. We’ve found,          have a very big incentive — especially at         the next greatest thing, but I think you need
though, that there’s always more that can be     0 percent — so we believe that’s huge and         to find one that not only will assist you in
done to continue to harvest the database we      we been able to reconnect with a lot of our       determining what’s best for your specific
currently have, and that’s where direct mail     customers who are two or three years into a       dealership needs, but has a CRM that can
plays a big role for us.                         purchase. We’ve been able to get them out of      help the whole process and monitor as it goes
                                                 their vehicle and into a new one, and trade       along and is in constant communication with
AS: How has the way your dealership              for some really nice pre-owned vehicles           you. I believe that’s key.
uses direct mail changed over the years?         that have been maintained here. We’ve been
SK: In the past we’ve tried to mail outside      able to keep them at or close to their same       I’d like to share with your audience more
of our existing customer database to gain        payments and in a newer car.                      information about direct mail strategies. There
new customers, but it was costly and for the                                                       are some effective processes that our provider
most part “hit or miss.” In the past, we’ve      AS: Is there a time of the month                  would like share with the first 10 dealers
experimented with different mail pieces —        where you’ve found direct mail to be              who respond to the e-mail address below:
like those using “credit cards” and giveaways    particularly useful?                              Specifically, their offering a free download
— and testing new markets. Lately, we’ve         SK: If I had to pick, I’d say the beginning and   and clean-up of your database, along with
really put more time into looking at our         end of the month. I think most dealerships        special reporting on purchase trends.
database, dividing it up and coming up with      give away the first week of month, ourselves
a marketing plan where we can every month        included, but we are constantly trying to
drop a direct-mail piece to a portion of our     improve.
database and generate some income off of
them coming back in.                             AS: Do you use different direct mail              For more information about Shawn
                                                 pieces to target different segments of            Kloppman or Rosner Toyota Scion in
                                                                                                   Stafford, Virginia, visit
AS: What methods have you used to                the marketplace, such as subprime?                www.toyotaofstafford.com.
integrate direct mail into your overall          SK: We will occasionally do some beacon
marketing strategy?                              driven direct-mail pieces. We’ll do more          For more information about Strategic
SK: It kind of varies on a month-to-month        predictors where we would go after import         Marketing, contact Todd Strause at
basis. If we have a very strong message from     owners than particular credit scores and          866.426.5182, or by e-mail at
the manufacturer, we will try to carry that on   demographics.                                     tstrause@autosuccessonline.com.




26          autosuccessonline.com
BillPhillips        sales & training solution



                    ALGEBRA BOOKS
                    AND CRAYONS
                    The Trouble With Your Lead Management Tool
I have worked for more than 15 years              dealer who intends to be where this industry       who can blame them? They will naturally
in the automotive sales industry — my             is going and not captivated by past habits.        operate at the level they need to for their
formal education includes a bachelor’s in         Here’s what I’ve learned in 15 years and           own well being, and they will capitalize on
engineering and a master’s in marketing.          by personally experiencing every lead tool         the complexity and confusion to justify non-
That stated, I in no way intend to demean         available in the market:                           compliance to your Internet sales process.
the intelligence or ability of any of the hard-
working people in this business by the title      The usability of any lead management tool          Evaluating the Salespeople Defines
or contents of this article. I consider this      can only be best understood by those who           How You Evaluate the Tool
business to be challenging, exciting and          have spent time successfully managing              Being able to quickly understand and
extremely dynamic given all of the market         Internet sales within a dealership.                evaluate what your Internet salespeople
forces driving change in the traditional                                                             actually do during the day is singularly
business model. Personally, I am privileged       Most of the lead management tools available        critical when selecting a lead management
to have been able to build a career doing         on the market today have been developed by         tool. How quickly was the incoming lead
something I love for so long.                     software programmers unfamiliar with the           responded to? How many calls in what time
                                                  dealer or the sales environment. They then         frame, and what was said? At what point did
The lead management tool, used by most            consult well-meaning but unknowledgeable           the Internet salesperson turn the contacted
Internet sales organizations, is a necessary      people about what their database should do.        but non-responsive lead to a manager?
and extremely important element to selling        So those who barely know have consulted to         And so on. DMS compatibility, Web site
cars. The tool manages the prospect data,         those who don’t, and quite frankly, shouldn’t      integration, automated programming and
schedules salesperson actions and reports         know how to manage and run successful              reporting breakdowns are all secondary
on key information like response time and         Internet sales within a dealership.                reasons to select a lead management tool.
closing ratios. It aggregates multiple lead                                                          Simplicity of the user interface, process
sources into a single database. This tool and     This leads us to the result that most lead         creation, reporting and oversight are your
the invaluable data about potential customers     management tools are far too complicated           primary concerns. Get references and check
are critical to the success or failure of any     visually and operationally for the people who      customer service availability, service uptime,
                                                                              use them. Multiple     response time and time to resolution as well.
                                                                              paths to arrive at
                                                                              customer data or       Regardless of the Lead Tool,
                                                                              to generate e-mails    It’s the Process
                                                                              or complete            Process management is the key to the ills of
                                                                              scheduled events       poor Internet sales in your dealership. This
                                                                              creates confusion,     marketing medium will require more work
                                                                              dilutes the training   from your sales staff and managers, but the
                                                                              experience and         net is dramatically higher. If you don’t have
                                                                              kills the intended     the same level of measurable control, results
                                                                              goal of engaging       and accountability in your Internet sales as
                                                                              and managing           you do on the floor, find someone who can
                                                                              the customer.          help you now. You’ll see dramatic results and
                                                                              It’s even worse        run circles around your competition, who
                                                                              for the manager        has no clue on how to get results with it. The
                                                                              overseeing the         smart dealers of this market will get in the
                                                                              sales team who         trenches and figure out what really works.
                                                                              must maximize
                                                                              his time across        As a wise man in this industry once said to
                                                                              multiple sales         me, “Not everything we do in this industry
                                                                              functions to try to    is wrong.” We still have to sell cars and
                                                                              manage a system        make profit. How we get customers and
                                                                              with numerous          manage salespeople is changing. Select your
                                                                              complicated            tools wisely and beware of sales pitches
                                                                              reports and            and promises from those who haven’t done
                                                                              multiple click         what you do, or who don’t use the tools they
                                                                              paths to get to        sell. Look through the eyes of a salesman/
                                                                              basic, real-time       manager. In the end, they are the ones who
                                                                              meaningful             deliver the sales or are hindered from them.
                                                                              information.
                                                                             Hence, the title:       Bill Phillips is the president and CEO
                                                                             If you give             of Automotive Internet Management,
                                                                             algebra books to        Inc. He can be contacted at
                                                                                                     866.593.7212, or by e-mail at
                                                                             kindergartners and      bphillps@autosuccessonline.com.
                                                                             they color on the
                                                                             pages with crayons,

28          autosuccessonline.com
WHAT ARE YOUR
ONLINE ADS MISSING?




  Inventory Online (IOL) Marketing Suite is a
  complete internet merchandising solution.
 Call today to see what your ads are missing.
                                      homenetauto.com
                            salesteam@homenetauto.com

                         610-738-3313
StephenCravens                 marketing solution



                     MAKING THE PHONE
                     WORK FOR YOU
Make the most informed decisions on which              will allow them to monitor the effectiveness    on the preferences/habits that have been
forms of advertising are generating the                of their team’s response. Are incoming          demonstrated in the responses to prior
leads you want, and which ones are costing             calls being handled properly? Are customer      campaigns? Is the call data being effectively
you money. Call tracking helps dealerships             service representatives hitting their talking   integrated with the company’s day-to-day
capture prospective customers at the point of          points? When the sales team makes a follow-     business software and processes?
interest, when they showed intent, rather than         up call, are the agents sharing consistent
receiving a form to generate a call later. To          information with the new leads? These           The progression from the first level to the
illustrate, here is a short tour of how a typical      questions can be answered by monitoring the     third happens quickly and naturally. Many of
dealership uses call tracking:                         recordings of inbound and outbound calls.       the advertisers we work with initially think
                                                                                                       they only need to validate their marketing
Level 1: Validate Media Spending                       Level 3: Capitalize on the Knowledge            expenditures, but we go ahead and throw in
Advertisers are initially drawn to the idea of         That has Been Collected                         the call recording capabilities. It usually takes
call measurement and call tracking because             At this point, the marketing manager            about one day before the sales manager wants
of the prospect of eliminating wasteful                has focused spending on top-performing          to listen and track every business call. Moving
spending on ads that are not working.                  placements (Level 1) and then ensured that      from the second level to the third level
Dealerships can measure the number of                  all calls are being handled properly (Level     requires a bigger push, but managers quickly
responses an ad generates to gauge which               2). The next step is to utilize the data that   realize the value of efficient lead management.
types of media (or which providers) are                has been collected through the call tracking
producing the highest rates of return.                 program. Are these leads being converted        Stephen Cravens is a business
                                                       into long-term customers? If the initial        development specialist for Century
Level 2: Evaluate How Calls are Handled                call is simply an information query, are the    Interactive. He can be contacted at
                                                                                                       866.652.3704, or by e-mail at
When a dealership’s managers are ready to              proper follow-up procedures in place to stay    scravens@autosuccessonline.com.
move beyond simple quantitative analysis,              in contact with this prospective customer?
a comprehensive call measurement program               Will new marketing campaigns be focused




                            Time to rethink
                          auto transportation




                                                           Call 1-866-207-3360                                            Nationwide
                                                              or register online                                          Door-to-Door
                                                           for our lowest rates                                           Online
                                                                                                                          Easy
                                                    ShipCarsNow.com
    BUILDING AMERICA®



30          autosuccessonline.com
PatriciaJ.Roberts            sales  training solution


                    DO MEN AND WOMEN
                    SPEAK DIFFERENT
                    LANGUAGES?
Men and women think, speak, and process             Before you can sell your product or service       loyalty with women consumers, and thus
information very differently. Gender                to a woman, you have to speak her language.       your ROW.
communication differences are very real and,        Whether you are selling in a professional
yes, they do matter a great deal. If one is to      or a retail environment, gender differences       Patricia J. Roberts is the director of business
succeed in the retail world, everyone needs to      really do matter. Make sure that you and your     development for AskPatty.Com. She can be
understand what those are and also why.             employees are properly trained so that you        contacted at 866.652.3970, or by e-mail at
                                                    too can attract, sell, retain and increase your   proberts@autosuccessonline.com.
Tell the Time or Build a Watch
Women are storytellers and men like to
speak in sound bites. Women like and
want to build up to the bottom line or to
the end with paragraphs of information,
with examples and with stories to build the
rapport and to build the picture. Men like
to get to the “bottom line,” then provide
the details in bullet points to support that
end game. Storytelling is frustrating for the
male and the bullet point format is equally
frustrating for the female. To effectively
communicate with the opposite gender, it
will be necessary to change the approach
by women in stating the bottom line first
and by men to give many more details when
communicating with women.

Look at the Floor or Look Her in the Eye
Women use about 25,500 words in a day,
where men use about 12,500. On average,
women maintain eye contact while speaking
for 12 seconds vs. a man maintaining
eye contact for three seconds. As a male
interacting with the female consumer,
changing the approach by balancing the
needed eye contact and number of words
spoken will make the woman feel like they
are being taken seriously.

Trees or the Forest
Women can perceive “the fine points”
better than men. They see and recall more
elements and nuances in products, services
or communications. They do more research
before the decision and the purchase.

In evaluating elements of a product or service
decision, women want the same things as
men, they just want more: more facts, details,
information, feedback from others and time
to make their decision. If woman says “I need
more time to think about it” she means it, and
she will get back with you.

The Bottom Line-Row
(Return on Women)
Women do a lot of research before reaching
a decision. Once they make that purchase,
women tend to be more loyal to their choice of
product and service provider, generating more
referrals through more active word-of-mouth.

                                                               the #1 sales-improvement magazine for the automotive professional               31
RichardWinch           marketing solution


                    DON’T FORGET ONLINE
                    REPUTATION MANAGEMENT
                    FOR FIXED OPS
Online reputation management has generated        and more than one in five change their mind         just competing online against your dealer
a lot of buzz in 2010, and for good reason:       based on what they read. And roughly one-          competitors, but also, typically, hundreds
Great SEO, combined with managing what            fifth of a dealership’s reviews will be for the     of other local businesses, from independent
customers say about your dealership at the        service department.                                shops to the PepBoys and AutoZones
review and social media sites, are the two                                                           (total auto service businesses outnumber
most logical, sustainable and cost-effective      There are other unique factors making              dealerships by about 20:1). So, when even
ways to drive online business today. But          reputation management for service key.             a precise search like “Honda transmission
almost all the talk about online reputation has   For one, car service/repair is a consumer          repair Cleveland” returns a noisy 300,000-
centered around the sales department; having      “pain point,” and it seems I’m always              plus results on any given day — and seven
a powerful, positive online review presence       reading a new study revealing “vehicle             in 10 searchers only click on the first-page
for your service and parts departments has        repairs cost 34 percent more at dealerships        results — and a high volume of reviews
never been more critical.                         than independent shops.” There’s a wider           would catapult your dealership to the top of
                                                  dealership-for-service “reputation” battle         that first page, you can see how the review
Why Service Reputation                            (over pricing, “honesty,” etc.) that’s out there   equation works.
Management Is So Crucial:                         in the press and the world, so it’s out there
Dealers have heard a lot lately about how         in consumer minds. Establishing real-world         The savvy dealership with those 100-plus
fixed ops is the key to survival in tough          consumer trust for your service department,        service reviews, and that shining 4.7 star
times — how every year it represents a            when you’re in brutal competition with             rating, has staked out one of the most
greater lion’s share of profits — along            independents, is increasingly paramount.           powerful “billboards” possible today:
with how much business they continue to                                                              broadcasting their brand and claim, right up
bleed to independent repair shops and parts       Reviews Catapult You To the Top of                 against the independents, to local service-
superstores every year. You’ve heard it many      the Service-Search Results                         searchers 24 hours a day, seven days a week.
times, but can’t hear it enough, because the      A review campaign will have an outsized            And it’s exposure no paid search or banner ad
opportunities – and lost dealer opportunities     impact on your service business because            could ever buy, because it’s the endorsement
– are only intensifying.                          today’s service shopper is first and foremost       of your real-world, satisfied customers.
                                                  a searcher — when’s the last time you picked
• According to AAIA data, the U.S. auto           up a Yellow Pages? — and the review sites          I’ve argued why dealerships must tackle a
  aftermarket will grow to roughly $290           have incredible traction in first-page search       review game plan for fixed ops; next issue
  billion in 2010 – up roughly four percent       results. Google loves review sites because         I’ll outline a proven, practical, service-
  from last year.                                 they love consumer relevance.                      specific dealership process.
• Service/parts have accounted for a
  whopping 80 to 100 percent of dealer            Try a search like “Toyota transmission             The First Step:
  profits over the last couple years,              repair San Francisco,” or “Honda brakes            Because all online reputation management
  according to NADA data.                         Los Angeles.” Typically, the Google Local          involves radical culture change at a
• At the same time, NDP data found that           listings will be dominated by independents,        dealership, the very first step is getting
  dealers increasingly represent a smaller        while the first-page organic results will           management buy-in. Share the facts with
  piece of the growing service pie, capturing     heavily return the big review sites like           the dealer principal and service manager.
  only 44 percent of total service dollars.       Yelp or Citysearch. But a dealership with          Help them grasp these online realities and
• A J.D. Power  Associates study predicts        a properly optimized Google Local listing          lost opportunities: the disconnect between
  that dealership service traffic volumes are      and lots of service reviews (across numerous       how much attention the sales department
  expected to decline 20 percent between          sites) will break right into that coveted          gets vs. service, given the glaring profit
  2009 and 2013, resulting in a 25 percent        search real estate. In fact, a dealership set up   discrepancies, and how your service
  decrease in those ‘lifeline’ service dollars.   properly at review sites/directories, who also     reputation could be your most powerful
                                                  has a high volume of reviews, can even come        future marketing weapon — and a true
Today’s Service Shopper – A                       up on top for generic service searches like        competitive advantage — but is given the
Searcher and Online Review Reader                 “Car Repair, Bremerton, WA.”                       back seat it takes at most dealerships.
Add to this mix that online reviews have an
dramatic impact on how consumers select           Service: A Crowded Online Market                   Richard Winch is CEO  Founder of
their service providers. The latest study from    Here’s another unique factor about reputation      eXtéresAUTO. He can be contacted at
2008, reveals that three out of four auto         management for service and parts, as               866.476.4389, or by e-mail at
consumers turn to online dealership reviews,      opposed to new-vehicle sales: You’re not           rwinch@autosuccessonline.com.




32          autosuccessonline.com
The Pre-Owned Price Check




                                                                 Customers trust the
                                                                RealDeal Ref to show
                                                                    them a fair price.




                     RealDeal from vAuto
                    helps us make deals,
                              not concessions.
                                                               — Randy Wise, President
                                                                 Randy Wise Auto Team
                                                                 Flint, Michigan




RealDeal is the industry’s first pre-owned price check for dealers. Show your customers how
your price compares in your live market. Prove you have a fair price and protect your margins.
With RealDeal, the latest innovation from vAuto, negotiate less and close more sales.
Call 877-988-7648 today or visit www.vAuto.com/realdeal to schedule a live demo.
MattBaker          sales  training solution


                     LEARNING THE LANGUAGE
                     Three Communication Tactics to Increase Closing Percentages



Think about the last time you purchased             homework. Can I ask you something? If I am         price. In an effort to prove his intelligence,
something. Why did you decide to buy it?            not as up to speed on XYZ car as you are, will     the sales rep is quick to answer each of the
What problems did the item help to solve?           you get upset?”                                    customer’s pressing questions. Yet, what this
What did that item do to make your life                                                                sales rep fails to realize is that his attempts to
easier, more comfortable or more enjoyable?         Customer: “No. Just want the price.”               seal the deal with educated answers will only
                                                                                                       hurt his odds of selling in the long run.
One of the rules my company follows states,         Salesperson: “Here’s what I know; I’ve
“People buy for their reasons, not yours.”          never lost anyone over price and you won’t         The knowledge of a salesperson is valuable.
Unfortunately, most people won’t come right         be the first. What else besides price is            Customers understand this value and push to
out and tell you why they are talking to you.       important to you? I may not be able to do          get as much information as they can for free.
They want to give you little info, and expect       everything you want…”                              Don’t let your salespeople become unpaid
unpaid advice.                                      Like this scenario shows, cushions give you        consultants. Help them gain information as
                                                    the power to control the conversation. They        opposed to giving it by utilizing the rescue
Many times in a selling situation the customer      provide ample opportunity to test the waters       technique.
will put pressure on a sales person to answer       and find other factors that are important to the
questions they don’t want to answer yet, or         customer, but were not revealed to you upfront.    The rescue technique serves three purposes:
don’t know the answer to. This article offers                                                          to help sales reps test the waters, to guard
you three techniques to help your salespeople       Deflect Pressure to Gain Insight                    against information overload and to
combat these situations, and keep the               Deflections help to keep the conversation           decrease buyer resistance. While acting like
conversation moving toward a sale.                  moving. Many times in a selling situation,         a “dummy” may seem unnatural for most
                                                    the customer puts tremendous pressure on the       salespeople, it could determine the life or
We all know that the key to successful              salesperson. The salesperson often feels as        death of their next sale.
selling is asking questions. Utilize these three    though they must have a perfect answer to each
techniques to help your sales team feel more        of the customer’s comments, or they’ll lose        Examples of rescues include:
comfortable asking questions to discover a          that customer. The act of deflecting utilizes       1. “I’m a little confused…”
customer’s buying signs.                            challenging questions and statements to place      2. “You tell me if I’m wrong…”
                                                    pressure back onto buyers. This entices the        3. “My bad. I didn’t do a good job
Cushion Your Approach                               customer to reveal more information and helps         explaining…”
Since consumers often regard salespeople as         the salesperson gain clarity regarding what the
being “pushy,” it’s incredibly important to         customer really wants.                             These examples provoke the customer
set the stage for your conversation with the                                                           to rescue you with an informational yet
appropriate cushions. Cushions are initial          In many cases, sales reps assume they know         empathetic response. This technique keeps the
questions or phrases that soften the approach.      what the customer is asking for. To ward           customer talking, and allows the salesperson
They allow customers to respond to your             against this mistake at your dealership, use       to discover more useful information. This
requests without getting defensive. Tone of         the rule, “Assumptions are the mother of all       technique brings customer defenses down
voice plays a key role here. Don’t frighten the     screw ups.” Making your sales team aware           quickly because the customer feels that they
prospect. Speak in a soft and friendly voice.       of this will help to ensure they ask more and      are smarter.
                                                    assume less.
Need a way for your sales team to remember                                                             Remember this: The best form of humor is
the importance of cushions? Use another rule        Examples of deflections are:                        always to make fun of yourself; and the best
we follow: “If you feel it, say it gently,” which   1. “What were you hoping for?”                     way to build rapport is to make someone
serves as a guideline for communication             2. “How do we get around that?”                    laugh. By utilizing rescues, you have the
throughout the sales process.                       3. “Let me make sure I understand…”                power to diffuse the customer and build
                                                                                                       rapport in seconds.
Examples of cushions are:                           Examples one and two push the conversation
1. “Sounds like you’ve done your                    along by answering the customer’s initial          Since this is a one-page article, I only shared
   homework….”                                      question with another question. This tactic is     a small sampling of cushions, deflections
2. “Tell me if I’m wrong, but….”                    very effective, but only to a certain extent. If   and rescues; and how utilizing these
3. “Can we talk off the record?”                    the buyer grows impatient and you still need       techniques can help your sales team convert
                                                    answers, try starting a sentence and pausing       more buyers. If you are interested in more
Each example stated above respectfully              as though you’re searching for a word. This        examples, please e-mail me at the address
redirects a potentially uncomfortable               method, as illustrated in example three,           below with the subject line “EXAMPLE.”
situation. Example No. 1 could be used to           gives the buyer the opportunity to finish the       I will send you a PDF copy of GA’s
address customers who are pressuring you            statement for you.                                 “Guide to Improving Sales Talent: Cushions,
on price after shopping online. Here’s how                                                             Deflections and Rescues.”
this scenario would go using the appropriate        Rescue Me
cushion:                                            Let’s pretend one of your most veteran sales       Matt Baker is the vice president of sales
Customer: “I’ve been looking at XYZ car             reps just greeted a new customer on your           for GA Marketing. He can be contacted
                                                                                                       at 866.618.8248, or by e-mail at
online. What’s your price?”                         lot. The customer is in the market to buy, but     mbaker@autosuccessonline.com.
                                                    spends much of the time badgering the sales
Salesperson: “Sounds like you’ve done your          rep with detailed questions and pressure on


34          autosuccessonline.com
JL Marketing is looking for Business Growth
                                                                   Strategists to sell our multi-channel direct marketing
                                                                   products and services. They will prospect for
                                                                   new customers as well as manage leads from
                                                                   JL Marketing’s growing national accounts.
                                                                   This is a full-time B2B outside sales position.


                                                                                     www.jandlmarketing.com
                                                                                   kkasun@jandlmarketing.com




Do you want to be a part of one of the fastest
growing software companies in the retail
automotive market? vAuto’s pricing, appraisal,
stocking and merchandising tools are an
evolutionary step forward for used car departments.
If you have strong retail automotive and/or
technology solution provider experience in the
dealership industry, then we want you to be part
of our tremendous growth. Send resumes to:
vautocareers@autosuccessonline.com.
                    Learn more at www.vAuto.com.
                         vAuto is an Equal Opportunity Employer.
AutoSuccess july10
AutoSuccess july10
AutoSuccess july10

AutoSuccess july10

  • 1.
    Check out the latest podcast featuring JULY Chuck Patton of Traffic Builders at 2010 autosuccesspodcast.com
  • 4.
    So you’re NOTa direct mail Dealership. ARE YOU SURE? That’s like saying we’re just another Automotive Direct Marketing Firm. Or, like saying The Golden Gate Bridge is just another bridge. We use mail merge with variable data matching via Laser Imaging and personalized embossed credit cards on our mailers, at less cost than the same old “key-mailers” you’ve seen in mailboxes for the last half-dozen years... Does your current printer offer this? Packaging so unique that it impresses you, imagine what your customers will think!
  • 5.
    INCREASE YOUR E-COMMERCESALES RESULTS GUARANTEED! AUTOMOTIVE INTERNET MANAGEMENT – THE ONLY E-COMMERCE ACCOUNTABILITY COMPANY TO OFFER A MONEY BACK GUARANTEE Automotive Internet Management can provide you top quality training, tools and accountability processes to increase your internet sales closing ratios. Working with you and your staff daily to build, train and manage your operation, AIM’s hands-on, grassroots approach creates results, accountability and control. Our proven successes include an increase of e-commerce lead contacts from 14.5% to 89% – in just four short weeks! Let us show you how to turn the internet into your strongest sales tool! you www.aimdealer.com 350 Goddard, Irvine, CA 92618 | Ph: 949.716.7716 | Fx: 949.458.8018 Our Accountability Training Counts! Endorsed by Web Control AVV and Lexus | Recipient of the Platinum Award 2009 Dealer’s Choice Awards
  • 6.
    AutoSuccess Magazine ispublished monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccessonline.com. Subscription rate is $69 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other magazine to which this magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction 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, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220. 2300 Hurstbourne Village Dr, Suite 1200 Louisville Kentucky 40299 | 877.818.6620 / 502.588.3170 | AutoSuccessOnline.com / AutoSuccessPodcast.com | info@autosuccessonline.com Ken Susan Givens, Publisher Thomas Williams, VP & Creative Director Dave Davis, Editor & Creative Strategist Brian Ankney, Account Manager Susie Horne, Account Manager John Warner, Sales-Improvement Strategist sgivens1@autosuccessonline.com design@autosuccessonline.com ddavis@autosuccessonline.com super6@autosuccessonline.com shorne@autosuccessonline.com jwarner@autosuccessonline.com feature solution leadership solution marketing solution sales & training solution MANAGE YOUR ONLINE MERCHANDISING, PART 1 CAN MODERN SOLUTIONS PROTECT AGAINST LOOKING FOR NEW ADVERTISING IDEAS? IT’S Three Communication Tactics to Increase Closing Percentages An Interview With Rosner Toyota Scion’s Shawn Kloppman DIRECT MAIL FROM THE DEALERSHIP’S MAKING THE PHONE WORK FOR YOU AUTOMOTIVE MARKETING STRATEGY DON’T FORGET ONLINE REPUTATION TIME TO RE-EXAMINE DIRECT MAIL INVENTORY PROCESS: IN-HOUSE ALGEBRA BOOKS AND CRAYONS MID-YEAR EVALUATION OF YOUR THE DEATH OF THE TRADITIONAL The Trouble With Your Lead Management Tool A SALES STRATEGY TO ACHIEVE MANAGEMENT FOR FIXED OPS DO MEN AND WOMEN SPEAK LEARNING THE LANGUAGE OLD SCHOOL PRACTICES? FISH WHERE THE FISH ARE DIFFERENT LANGUAGES? DEALERSHIP PART 1 SELF SUFFICIENCY OR OUTSOURCE? POINT OF VIEW: , An Interview With NancyTonkin 34 16 28 10 14 22 26 30 32 08 31 18 24 20 MattBaker BillPhillips SeanStapleton An Interview With ShawnKloppman StephenCravens RichardWinch MarkTewart ChuckPatton PatriciaJ.Roberts DougBurkert TimJames KirkManzo DavidMoline JimRadogna pg 1 pg 6 pg 8 pg 3 pg2 pg1 July 2010 chuck patton patricia roberts shawn kloppman
  • 8.
    MarkTewart leadership solution PART 1 THE DEATH OF THE TRADITIONAL DEALERSHIP The traditional dealership is dead, but some Solution: Manager/Coach/Team Leader is never done this before, you will probably have not had their funeral yet. It seems as actively involved in the sales process from not do this in the future. Don’t kid yourself. though as much as some things change in the the greeting of the customer. The new focus Running a help-wanted ad in the newspaper, auto industry, as many things stay the same. is to open the relationship so the sale can be interviewing candidates without a pre- Every week our trainers observe things in closed. The days of sitting behind a desk and thought out plan for recruiting, interviewing, dealerships that look and feel like holdovers screaming at salespeople to bring a deal are testing, screening, training and ongoing from the 1960s. dead. Managers will be hybrid sales coaches, development is not trying to develop a staff assistants and information providers that of professional salespeople. Let’s take a look at some things still involve the sales process, deal process and commonly observed in dealerships that are F&I assistance. No longer will the manager Solution: The solution for many is outdated and should be changed. be expected to save a lost deal, but will be something most do not want to hear. For most involved throughout the process with the dealerships, you will never put the amount of 1. Manager Towers emphasis on creating, not on saving. You time, money and energy to set up a high-level High towers built for managers where manage things; you lead people. approach to getting and keeping great people. salespeople go to get their proposal figures. It’s just a fact. The solution is to create a The common reason for these towers is 4. Seat of the Pants Used Car process that involves heavy involvement to create a good observation point of the Inventory Management with team leaders, assistants and technology inventory for managers. What these towers The days of the guru used car manager — that narrows the scope of your sales staff. signify is demeaning to salespeople and who knows all the hot cars, market figures Most dealerships are hiring average to adversarial to customers. These towers create for every car on the market, what the correct below-average people and expecting them to a manager haven for never moving, as well appraisal is on every trade, what every other do a myriad of things they are not only not as an air of supremacy. dealership is doing and managing the used doing, but not capable of doing. Worse yet, inventory strictly by feel — is dead. The truth the managers are not showing these people Solution: Tear down the towers. Look is that person never really existed. It was a or inspecting the process to make sure it around your dealership and ask yourself the myth and a fairy tale. Nobody — and I mean happens. If you are honest with yourself and following question: “What do I see that looks nobody — is that good at what they do. this description fits your dealership, then you like it’s from the 60s?” Please tear it down. must try something different. The long-term Solution: If you do not have a used health of your customer base and dealership 2. The Big Green Sharpie inventory philosophy, system and technology depends on this. Deal Proposals to assist you, you will forever be making These proposals scream of adversarial “you mistakes that are, in today’s market, I invite you to take a moment today and vs. me” negotiations. The figures seem less unforgiving. You must use your knowledge before you get busy with the everyday tasks real and more of just a thought. combined with inventory technology and to take a strong look at your dealership up-to-date market data to be relevant in the and what is being accomplished or not. Be Solution: Use printed or screen proposals market. The shocking truth is that the 90-, honest. Are you fighting a battle you have with full disclosure. 60-, 45- or whatever-day turn systems used never won? Do your salespeople, managers, strictly by themselves are also outdated processes and dealership reek of the 60s and 3. Manager TOs at the End of a models that not only do not work, they create 70s? It may just be time for a funeral. Sales Attempt problems. Your goals are high sales, profit, For those of you who may be new to the ROI and yield — not just turns (more on that auto business, a “TO” means a “turnover.” subject in future articles). Old-school selling means the salesperson turns over the customer to a manager when 5. A Staff Full of Professional, Mark Tewart is the president of Tewart he/she cannot close a deal. Often, the new “Do it All” Salespeople Enterprises, and the author of the best seller, How To Be A Sales Superstar. He can salesperson is berated for not turning the This one can actually still be accomplished, be contacted at 866.429.6844, or by e-mail customer to the manager. The reason is the but very, very few dealers actually do the at mtewart@autosuccessonline.com. new salesperson feels as uncomfortable as things to recruit, hire and train the right the customer with this process. people to make this happen. If you have 08 autosuccessonline.com
  • 10.
    SeanStapleton marketing solution PART 1 MANAGE YOUR ONLINE MERCHANDISING Online merchandising means merchandising • 57 percent of users on a Web site are 2. Ease of Use: One of the Easiest the right items, at the right time, to the right highly likely to use the search tool Things to do is Make Sure Your Online people and determining the best products and • Shoppers abandon retail sites within Experience is Easy for the Consumer services in your inventory to promote to your seconds of not finding a product to Use prospects and current customers. • More than 85 percent of automotive Many times it’s just simple merchandising shoppers use the Internet to help influence tactics that can help you make the sale. Simply put, your goal is to increase click, hits, their decision. Remember the fewer clicks, the better. views and sales by prominently displaying, in an appealing manner, the items customers Today, we know that effective online 3. Display With Appeal are most likely to want in as few of clicks as merchandising leads to more people finding Take control of your inventory possible. what they’re looking for and, therefore, higher merchandizing. Do you have the best possible conversion rates. Increasingly, however, photos? Are they fresh, or are they a week Now all you have to do is get them to your online merchants are realizing it takes expert old? Do they still show the car in four inches sites. merchandising strategies and regular updates of snow in May? Do you have 20+ photos of those strategies to keep shoppers engaged, of each unit? Are you taking and using high- With millions of cars and trucks online and and not only achieve higher conversion rates resolutions photos? Can you zoom in on your thousands of dealerships selling products as a result, but to keep them coming back for high-definition photos to see more detail? online it takes more than nice Web site design more. Are you posting videos? Do you have the to be competitive and profitable. One of the best possible comments that are more than greatest ways to create a relevant, engaging Here are some best practices for online just the basics? Let me ask you this way: shopping experience is through an effective merchandizing that have helped dealers Do your comments make the unit stand out? online merchandising strategy. increase customer traffic and conversions. Does it include your branding “Home of the Free Car Wash” or “Home of the Free Loaner This is even more apparent when you 1. Be Found Early and Often: You Car,” etc.? Are you regularly changing your consider a few key facts: Must Make the Golden Triangle comments, or do they stay the same until The key location on the unit sells? How does your pricing look Google for visibility online? Are you priced to get any action or as determined by just priced? Have you incorporated the latest the eye activity incentives on all of your units, including in the study is a leases? Do you update your descriptions, Tweet? triangle that extends pictures, features and links daily? from the top of 4. What Does Your Sweet! the results over to Web Site Say About You? the top of the first An online presence for your dealership result, then down to is a must. It is a powerful marketing and a point on the left communication tool, an incredible source L Loyalty Driver side at the bottom of of cost-efficiency leads and a sign of the “above the fold” professionalism. Your clients or customers are eNew letter Articles wsl visible results. This building brand impressions from your Web Now No Appearing key area was looked sites and merchandising. When they get there, at by 100 percent of will it support your brand image or sell you on Twitter. the participants. In short? Just think about the number of prospects the study, this was that are not converting because of your online referred to as the merchandising, or lack of it. Are you taking “Golden Triangle.” advantage of the latest technologies for online Generally, this area merchandising? Can you view the picture in appears to include Just another way to spread top-sponsored, top- a full-screen mode? Are you changing your follow-up based on what they looked at or how the good news. organic results and Google’s alternative often they have been back? Are you tracking views, clicks and conversions? What does your results, including Web site say about you? shopping, news or local suggestions. Next month, we’ll take a look at some more Innovative Enewsletter Solutions When customers best practices that dealers have found helpful loyaltydriver.com | 866-964-6397 can find what in increasing their bottom line that you can they’re looking for put into effect in your dealership. — especially with heavily advertised Sean Stapleton is the executive vice and time-sensitive president of VinSolutions. He can be products — they contacted at 866.587.7629, or by e-mail at buy. sstapleton@autosuccessonline.com. 10 autosuccessonline.com
  • 12.
    The Ron TonkinAuto Group is one of the most storied businesses in the automotive industry. The dealer group’s namesake, Ron Tonkin was president of NADA in 1989 and is a legend for his tireless and outspoken defense of dealership rights. Following in the family tradition of leadership, Ed Tonkin, currently serves as this year’s NADA president. Now, Nancy Tonkin, Ed’s daughter, has joined the business to help drive the dealership’s e-commerce operations. We sat down with Nancy Tonkin to ask her how they are approaching today’s consumer. AutoSuccess: The Tonkin name is quite well known in the industry. You’ve just recently joined the organization. What do you think so far? Nancy Tonkin: Of course the automotive business runs deep in our family, so I grew up absorbing much from my dad and grandfather. Of course, now that I’m working directly in the business, I realize that there is a lot involved in making it work. I’ve been involved for about three years now and have learned so much. It’s exciting learning all the aspects of our company and I’m learning more and more every day. AS: What types of things have you been doing over the last year? NT: I’ve been learning each area of the dealership, and have attended the NADA Dealer School. Dealer School really helped me learn all about the car business, starting with the financial statement. My favorite aspect of the business is working with customers, and making sure they have the best car buying experience possible. I suppose I wouldn’t be a Tonkin if I didn’t like that. My grandfather taught me that your month is built one car deal at a time; that each opportunity to do business with a potential customer is important. I think this type of ethic is one of the things that’s made our company so successful. AS: So what is your current role? NT: I’m now in charge of driving our e-commerce and CRM initiatives. This is a very exciting role for me because it’s always evolving. I think being relatively new to the business gives me a fresh perspective to using technology and digital marketing techniques that maybe some of the old school guys are apprehensive about. Fortunately, our organization has always been very forward thinking when it comes to using the Internet and CRM to grow and manage our business. We have a great technology partner, DealerPeak, that we’ve been with for years. They help keep us on the cutting edge of technology and help us sort through all the fluff that’s out there.
  • 13.
    AS: What typeof solutions does your technology closing ratios and gross profits are both generally higher than our partner provide you with? traditional deals. NT: DealerPeak is our vendor for just about everything except our DMS system. Their solution is unique in the industry because they AS: That’s surprising. Why do you think your closing can provide so many things on one single platform. They provide ratios increase with online negotiation? our Web sites, CRM, online negotiation, inventory, mobile sites, NT: To me, it makes perfect sense. The customers who engage in the lead management and e-mail marketing; plus I can manage all of online negotiation process are usually farther down the buying funnel. these applications for all of our 16 locations with just one login. I am They have usually landed on a specific vehicle and are now ready to approached all the time with vendors who claim they can provide all discuss the specifics on payments, financing and what they can receive of these things, but I’ve yet to see any solution that can provide one for their trade. They are amazed that they can get all this online. When holistic system like they can. you are very transparent with the customer, they become engaged and are much more likely to end up purchasing with us. For instance, they’ve just created a feature that allows me to view exactly what someone on our Web site is looking at and which pages AS: But how can you hold gross? Doesn’t this make it they are on from within the CRM. By logging the Web-surfing activity easier for the customer to shop your competitors? and making it available in the CRM, I can get tremendous insight NT: This is what many people in our organization were afraid of, but into the customer’s thinking. As an example, let’s say that a salesman what we found was just the opposite. Again, by giving the customer has been working with a lead and for some reason closed that lead. all the information they need to make a decision, we found they are Well, we know that many times a salesperson might close a lead that less likely and less able to shop. I think this is probably because, in shouldn’t be closed. Now let’s say that same customer comes back to order for the customer to shop it around with a competitor, they would our Web site a day later and starts looking at more vehicles or maybe have to physically go down to the dealership. There aren’t many they visit our finance application but don’t fill it out. I can see all this people, especially in my generation, that think this is a good time. with our CRM. So as a manager, I know that this person might be Plus, by being up front and transparent, the customer has a positive concerned about their ability to get financing, but they are still very experience from the start. That way when they do come to the store to much an opportunity. At this point I would send the customer an e-mail take delivery of their vehicle, they aren’t exhausted and are much more describing our many financing options and phone call. It’s like a “Save receptive to considering the F&I products that we offer. a Deal” meeting using the customer’s Web site activity. I can even see their past surfing activity prior to the customer submitting a lead. This AS: Does the online negotiation system kind of stuff is very exciting. work with your CRM? NT: Absolutely. Like I said, DealerPeak’s online negotiation system AS: That’s sounds amazing. What other marketing provides one unified platform for the entire Tonkin organization, so strategies do you guys use in this tough market? customers who call in or visit the showroom without purchasing can NT: Something that has had a big impact on our sales is online easily be channeled into the online negotiation system. This is one negotiation. We piloted this system with our technology partner last of the initiatives I’m working on now. We believe that using online year. Essentially, it allows us to desk deals with our customers over negotiation tools will allow us to re-engage customers who have the Internet and through our Web site. We have two Honda points not yet purchased. I’m also working with our advertising agency to about six miles apart. We initially just put it into one of those stores. develop a marketing campaign that lets our market know that they can Within 30 days, the number of leads we were getting from the site with have a hassle-free experience with our dealerships. After all, that is online negotiation doubled with the same amount of traffic. We didn’t exactly what today’s modern consumer is looking for. As a dealership, do anything as far as traditional marketing to promote it, either. Just if we do a good job at offering that, everyone wins. by allowing our customers to negotiate the specific terms of the deal online, we were able to double our conversion ratio. AS: How has online negotiation been working for you since then? For more information about Nancy Tonkin, or the NT: It was a real lifesaver last year. While most of our competitors’ Ron Tonkin Auto Group, visit www.tonkin.com. Web traffic and leads were significantly down last year, we were able to maintain — and even eek out a slight increase — in our Web leads For more information about online negotiations, contact last year. I attribute this to online negotiation. Today we consistently Jock Schowalter at 866.885.9751, or by e-mail at see hundreds of leads each month from online negotiation. Our jschowalter@autosuccessonline.com.
  • 14.
    TimJames marketing solution INVENTORY PROCESS: IN-HOUSE OR OUTSOURCE? I’m often asked about the benefits of Web site they visit. Your goal should be Create the ad as soon as possible! bringing the inventory process “in-house” vs. to exceed the consumer’s expectation and 1. Your vehicle’s online ads can be seen by “outsourcing,” which is really a “cart before make yourself stand out from the crowd. more people in one day than most of your the horse” discussion. Before determining other advertisements are seen in a week (or who should perform your inventory process, 3. Vehicle Description — The vehicle month). Every day a vehicle sits on your you should determine what your inventory description is your opportunity to “sell the lot without an effective online ad costs you process should accomplish. vehicle.” thousands of potential online shoppers and • The content of your vehicle description can hot leads. Because of the Internet, your inventory increase your SEO. 2. As previously established, the content of process is more important to the success • Canned vehicle descriptions are dull, and your online ads can dramatically increase of your dealership than it has ever been. shoppers will ultimately just stop reading SEO, further increasing the need for your You spend more money now than ever to them. Your goal should be to create the inventory process to accommodate your increase your points-of-presence (POP) on best vehicle description that you can; not online ads being created the same day a the Internet. You’ve probably purchased a putting the least amount of effort into it vehicle hits your lot, or the day it comes search engine optimized (SEO) Web site and that you can. out of detail at a minimum! utilize sites such as Craigslist, AutoTrader. • What you say isn’t always as important as 3. Dealers from hundreds to thousands of com, Oodle.com, etc. You are probably trying how you say it. Be creative and have fun. miles away are now prospecting your to figure out how to maximize Facebook and Build value and inspire mental ownership. customers. Your inventory process must other social media, too. Make no mistake, If you would highlight it on the lot, say it in facilitate a timely creation of the most the people responsible for your inventory your online ad. robust, personalized and compelling ad process are no longer just shooting photos and to win. printing window stickers; they are creating 4. Price — You use “price” to drive traffic what are potentially the most important ads from all of your other media ads, why not on Display the ad across the Internet as that your dealership has today. the Internet? soon as possible! • You use “was-is pricing,” “specials,” 1. Obviously, the number of people who Establishing an inventory process that “demo pricing,” “manufacturer incentives” can potentially see your vehicle’s ad maximizes your online advertising’s potential and multiple other price promotion depends how soon the ad is distributed and provides the greatest ROI can be easily techniques to create urgency on the lot and displayed. The goal of your inventory accomplished by following some simple rules: and throughout your other media; utilizing process should be to distribute and display these same pricing techniques online can your ads the same day they are created. Create the most informative and generate the same response. 2. You pay a lot of money to establish online emotional ad that you can. • Be transparent. Inconsistent pricing can points of presence (POP) to display your 1. Video — Every vehicle needs a video. cause you to lose consumer confidence, vehicle ads across the Internet and create • If named and referenced properly, a video and you may read about it (along with visibility 24 hours a day, seven days a can dramatically increase SEO. thousands of potential consumers) on a week. Every day (every hour) that you • A video is only as good as its content. social network or blog. have a vehicle ad created but not displayed A video that “sells” a vehicle’s unique with your marketing partners is costing features will create trust, reliability and 5. Engagement Tools — Provide tools you money! urgency, dramatically increasing the that allow shoppers to contact you the way emotional response to your ad and inspiring they want to contact you. Imagine if your dealership was around when mental ownership. • The means by which people communicate one of the previous mass media channels • Live video is king. Live walk-arounds are with each other has changed. When first emerged. Would you have adjusted your incredibly engaging and humanize your wanting an immediate response, people business strategy to maximize its potential? dealership in a sea of regional competition. now often prefer to send text and chat Your Internet ads could potentially be the Again, the content of the video must “sell” messages. most important ads in the history of your the vehicle the same way you would sell it • If your dealership offers consumers the dealership, so before we start pondering who “on the lot.” ability to communicate with you the same should be responsible for creating the ads way they prefer to communicate with one (in-house or outsourced) let’s first spend some 2. Photos — The number of photos that you another, they are more likely to do so while time discussing the impact of your ads and the have is less important than having the right online and looking at your vehicle ads. importance of defining a process that creates photos. highly emotional (and informative) ads for • If named and referenced properly, photos 6. Window Stickers — In the old days, an your inventory and then distributes (and also increase SEO. inventory process evolved around creating displays) those ads as quickly as possible with • To the consumer, every vehicle is different. content for a window sticker and then sending the day the vehicle is ready to sell on the lot Photograph everything unique or different it (along with a few standard photos) to a as the goal. about each vehicle. The easy rule to Web site provider as an online ad. Today, follow is that if you would discuss it with your inventory process must evolve around Tim James is the director of sales with HomeNet, Inc. He can be contacted at a consumer “on the lot,” show photos of it creating the content for your online ads and 866.924.6573, or by e-mail at online. then once you have the rich content necessary, tjames@autosuccessonline.com. • Consumers get tired of seeing the same set push a button and extract some of that content of vehicle photos for every vehicle on every to create your window stickers. 14 autosuccessonline.com
  • 16.
    ChuckPatton leadership solution MID-YEAR EVALUATION OF YOUR AUTOMOTIVE MARKETING STRATEGY It’s time for a mid-year review. Remember convert each recall customer into a long- things because “this is where the market the automotive service marketing objectives term fan. Have your service manager meet is going” or “your competitor is doing it.” you put into place at the beginning of the every one of them — such as you might Be careful about experimentation. Conduct year? How are they working for you? Are with the sale of a new car. Target them with some research and make sure that any you on track to meeting your goals? Are you a segmented letter or make a phone call to technological expenditure fits within your ahead or behind where you wanted to be? address the opportunity. Every dealership has budget and is a long-term solution, not a warranty opportunities. short-term jump on the latest bandwagon. Depending on the answers to these questions, you may want to consider making Older Model Programs E-mail Marketing adjustments to your marketing plan for the The units in operation most associated with Dealerships set high expectations for e-mail second half of the year. As you take stock dealership loyalty (newer cars or cars under because they are sold on the concept that it and plan your next six months, consider the warranty) have diminished significantly, can replace direct mail. E-mail marketing following areas of opportunity upon which and it will be quite some time before service is cost efficient and a great way to directly you can capitalize. opportunities are where they were several reach the small segment of your customers years ago. Create a strategy to become the who actually respond to e-mail. However, Retention new home for all older model vehicles. You our average client has e-mail addresses for The retention measurement that makes the have master technicians who have been only about 21 percent of his or her customer most sense is the one that measures the share with you longer than the age of some of base. If you use e-mail marketing, make of your customers’ business within a year. those older vehicles! Who better to fix those sure you incorporate it with direct mail and Start by separating your customers into the vehicles? Loyalty or older model programs other solutions. To maximize your e-mail following categories: that can be quite profitable do exist. Make marketing efforts, create an e-mail collection • Number of times your customers have sure your writers know how to sell the process. Ask your customers how they prefer come in during the past 12 months program and be willing to give a standard to be contacted. That will give you a good • Number of customers doing all their discount/benefit package. indication how to really reach your customers. service with you • Number of customers added in the last 12 Marketing Spend Your Time months Separate your marketing investments into Being a Great Manager what has produced a direct result versus what This is an old-school concept. Because most What are you doing to retain your customers? has kept your name in the marketplace — and service managers are being pulled in so many Are you providing the best service in the track the results for each category. This will different directions, they can’t do any one market and going the extra mile to keep your allow you to look at what each investment thing well. This is an environment where customers happy? Consider loyalty programs yields in order to determine whether or managers can stray from their core purpose and perks to show your commitment to a not you’ve invested your marketing dollar of taking care of customers and managing long-term relationship. wisely. If you haven’t already, plan through the shop. Be sure not to lose that perspective the end of this year — and even include all when faced with additional expectations Unique Opportunities of January 2011. Most people give up on the and responsibilities. Every purchase you Warranty work affects us all, and Toyota last and first months of the year just because make and every partner you work with corporate is learning all too well how much they didn’t have anything planned. These are should strengthen your position within the cost is associated with it. For the dealer, wasted opportunities if you have not prepared dealership, not give you more work. however, warranty work can be a gold mine. for them. Some dealers are saying that close to 40 percent of recall customers were new to their Technology Assessment Chuck Patton is the founder and CEO of dealerships. Recalls are a great opportunity Embrace the technology that comes your Traffic Builders, Inc. He can be contacted to make an impression on customers who are way as long as it helps you manage your at 866.859.8520, or by e-mail at not typically working with the dealership. customers and your employees better. Too patton@autosuccessonline.com. Train your team to spend some time to many companies are telling clients to do 16 autosuccessonline.com
  • 18.
    DougBurkert marketing solution FISH WHERE THE FISH ARE In today’s economy, it is easy to try to cast partner should be able to help with this. represents an opportunity for continued a wide net, hoping and praying to catch a exposure and each sponsorship represents a buyer. While it is true that buyers come from Of course, displaying a prize is another way chance to adorn dealership walls with photos all directions, each summer — and in warmer to gain positive exposure. Drive the prize and press clippings that build good will. climates, every day of the year — prospects vehicle and position it by the contest hole. gather in one place: the local golf course. Be sure to bring along literature describing Whether or not someone wins big, the contest, the prize and, of course, the sponsoring charity and corporate events Not only are these individuals prospects, dealership. Don’t forget business cards. delivers ongoing positive effect. Golfers who they’re great ones. Whether they are taking take part are often community and corporate part in a charity event or corporate outing, Often, dealership staff will play in leaders. As such, they have a broad sphere golfers represent a highly coveted market tournaments to meet golfers. One dealer we of influence on other buyers — buyers with segment. With average income north of work with sends a retired salesperson to help a similar demographic. Be certain they will $100,000 and total net worth averaging more with registration and then staff the tee area spread the word about the event and your than $500,000, golfers have money to spend. for the prize hole, where he points out to dealership’s involvement. participants that their second best drive of the Considering the average golfer is around 50 day might be when they drive the car home! Many dealers leverage their involvement in years of age, they often have a new driver or Such personal engagement is an incredibly the showroom. Before and after an event, two in the house. In addition, when they visit valuable way to generate greater interest in they display event signs and banners, leading dealerships, they are less likely to haggle as the dealership, its products and its services. to year-round reinforcement of the positive much on price, which makes for a better sale. community involvement and support. Ongoing Opportunities Sponsoring golf events delivers tremendous A key benefit of tournament prize Focus on Returns opportunities to reach these potential buyers sponsorship is that the ability to drive sales Perhaps the best part of integrating such and strengthen relationships with them. does not end when the event does. By sponsorships into a dealership marketing plan Working with an insurer to offer prizes for arranging with event sponsors to get names is the relatively low cost involved — and the hole-in-one contests, shootouts, putting or by engaging participants and gathering potential large return on investment. It is easy contests and closest-to-the-pin competitions leads throughout the tournament, dealers to incorporate announcements about the event can bolster dealership marketing efforts and have a collection of prospective buyers for and sponsorship into an ongoing ad budget. lead to even greater success. potential follow-up. Some events provide On-site promotion is, at most, an incremental participants goodie bags, which can include cost — production of some print material and Engaged and Accessible dealership coupons or other materials. deployment of one or two staff members. By sponsoring charity golf tournaments and corporate golf outings, car dealers gain Of course, if someone does win big, the Because insurance is available to cover the repeated exposure to potential buyers — resulting publicity and its value skyrocket. cost of prizes, the bang can be much larger from pre-event publicity to opportunities Last year, for instance, a participant in an than the buck spent to generate it. It is during the tournament itself to post-event insured event scored a hole-in-one after possible to reduce costs for this, as well, by follow-up. It is important to maximize this; a string of rather disappointing — okay, insuring the value of a vehicle lease or down work closely with event organizers to do so. embarrassing — performances on earlier payment, rather than an outright car or truck holes. His success not only earned him giveaway. Again, working with an insurer At the event itself, opportunities to engage a brand new $30,000 German import, with prize and promotion experience allows these prospects intensify. Because they are it generated publicity throughout his such customization. golfing, participants are relaxed. Moreover, community and beyond, leading to a wealth because they are supporting a charity they of positive mentions for the sponsor. Regardless of the extent of involvement or believe in or because they are being treated to sponsorship, taking part in such events can golf at a corporate event, their frame of mind With more than 1,000 vehicles awarded to help dealers catch more buyers by fishing is likely positive; this is an ideal situation for hole-in-one winners, we have seen similar where the fish are — on the golf course. dealership interaction. situations play out around the world. Years ago, we awarded a prize to someone who Doug Burkert is the president of the It’s important to make good use of signage — made a hole in one on the first shot he ever National Hole-In-One Association. He can at the registration area, throughout the course took at a golf course. We have had winners be contacted at 866.859.6407, or by e-mail and at the post-event venue. A prize insurer as young as seven years old. Each winner at dburkert@autosuccessonline.com. 18 autosuccessonline.com
  • 20.
    KirkManzo sales & training solution A SALES STRATEGY TO ACHIEVE SELF SUFFICIENCY It has often been said that to be successful we who sell 300 to 400 units annually and even To be conservative, we will use five years for must learn to master those things that we can one that sells 800 to 900, this is not the norm. our conversation. control. As a sales professional, what can you So what common trait do these top producers control? have that makes this possible? There are If the average customer replaces their vehicle many elements that contribute to these every five years and an average sales person The dealership’s inventory? The superior results. Certainly one common thread sells 100 units, then how many customers manufacturer’s incentives? The dealership’s is they don’t just catch ups on the lot; they would you need to become self sufficient? advertising? Your manager’s mood? Your work their customer base. That’s right, 500! It would take about five competition’s offers? Product pricing? Your years to become self sufficient. Now ask attitude? Your sales skills? Your product So the question might be, how many yourself how many cars are in your household? knowledge? The number of sales customers would you need to become self One, two, three, or more? The typical customer opportunities (Ups)? sufficient? The idea is to put yourself in a will have two. Taking this into consideration, position where you control the things you can do you have 500 sales opportunities or 1,000? Let’s focus on the last item, sales opportunities control, like your relationships with your past (or Ups). Whether you are new to the industry customers. Would it be unreasonable to think that you or have worked at your dealership for years, could receive one referral from each customer There are two fundamental audiences to target once every five years? Sure you could, if you there are certain numbers that you should be when searching for new sales opportunities: ask. Now you would have 1,000 customers aware of when planning your sales effort. Internal vs. External. Internal would be who on average have two cars per household. The average sales person in America will customers you sold to previously or perhaps This would give you 2,000 sales opportunities. sell how many vehicles per month? When the dealership (orphans). External would be Divide that by five years and now you have presented with this question, most students in new customers. 400 units sold each year. Feel free to go ahead my sessions respond with 10 to 12. The results are unfortunately much lower. The monthly What advantages does the Internal customer and cut those numbers in half. You would still average is around eight. Annualized, we are provide? They already know the brand. They end the year with 200 units sold. talking about approximately 96 units. To were willing to conduct business with your keep the math simple we will use 100 as our organization previously. This individual may Oh, and by the way, if you had sold 200 units reference point. even have purchased from you personally. in 2009, would you have been upset? I would imagine if at the end of 2010 you sell 200, The first question you might ask yourself So how many of these great people would you units, it will have been a good year. is, how did you do last year? Were you need to become self sufficient? Referring back above average? Below? If you were above to our conversation above, most automotive Good luck and good selling. then good, 2009 was a tough year for our sales people will sell approximately 100 units business. If you were above average then per year. Now estimate: How often does the Kirk Manzo is the president of The Manzo Group. He can be contacted at how much better were your numbers? 120? average consumer replace their vehicle? Sure 800.858.6903, or by e-mail at 150? 180? 200? it would be fantastic if they replaced them kmanzo@autosuccessonline.com. every three to four years (think leasing), but While I have worked with sales professionals the dominant cycle remains four to five years. 20 autosuccessonline.com
  • 22.
    DavidMoline marketing solution LOOKING FOR NEW ADVERTISING IDEAS? IT’S TIME TO RE-EXAMINE DIRECT MAIL There is no question that the Internet is dealership “brand” and driving traffic to your key. Therefore, a synergy must be created embraced by dealerships. Properly executed, store and your Web site. between the different media. One medium will dealership Web sites — along with texting influence the effect of the other and generate and social media like Facebook, Twitter, etc. Another advantage of direct mail is an overall higher impact. For example, a TV — can provide a meaningful and long-term accountability. Because a mail campaign is a spot with a specific offer supported by a direct contribution to sales. unique one-on-one communication tool, you can mail campaign will most certainly increase easily determine your cost-per-person reached response. By integrating media, creative But in the frenzy to increase one’s digital and, by tracking the results, calculate the cost- and planning, you will deliver a stronger presence, let’s not forget about one of the most per-response and cost-per-sale. dealership “brand” in a more cost-effective effective and targeted mediums around — way. It has been suggested e-mail advertising direct mail. Today, developments in information technology provide you with a wealth of personalization will replace direct mail, yet it is direct mail Direct mail can be key in helping build and possibilities to help identify and select the right that drives Web traffic. maintain a one-to-one relationship between set of demographics for a targeted mailing your dealership, your customers and your So if you’re looking for something “new” for and the ability to digitally print variable and your next campaign, consider direct mail as prospects. Let’s face it: With all the Web sites, personalized data, giving direct mail a leg up e-mails, tweets and “friends,” not to mention an integral part of your mix. Remember, direct over the increasingly fragmented coverage of mail is an intimate communication. It enters TV messages, radio messages, outdoor and mass media. It’s this ability to address every guerrilla advertising bombarding us every the consumer’s sphere through their mailbox. prospect and every customer as one person It offers a physical contact; they touch the single day, mail is still the cornerstone of with a “made-to-measure” message that human personal communication. Today, paper and you can influence their behavior showcases your dealership with a relevancy through your message. technology allows us to personalize each that encourages action. mail piece to the customer or prospect. David Moline is the owner/manager of A well-designed and well-written direct With numerous media options and limited Advertising Marketing Partners. He can be mail campaign will command the attention consumer attention, efficiency and contacted at 866.406.6493, or by e-mail at and time of its recipient, establishing your productivity of advertising investment become dmoline@autosuccessonline.com. TEXT WITH WITH SUCCESS Digitize your traditional media with text IDs. • Inventory on the go! • Text for info • Text to win contests • Text customers responses to inquiries • Text to join Websites | Hyper SEO | ILM | Mobile | Texting | SEM DealerHD.com Call to setup your demo | 866.222.7712 22 autosuccessonline.com
  • 24.
    JimRadogna marketing solution CAN MODERN SOLUTIONS PROTECT AGAINST OLD SCHOOL PRACTICES? Much has been written about automotive of deceptive advertising. Now, I long-ago man enough to discuss his concerns and online reputation management and, realized that some customers have tendency not hide behind a fraudulent posting.” fortunately, there are a number of companies to misread advertisements, so, in order to Is it just me, or is this the worst possible and consultants now available to assist dealers give the dealership the benefit of the doubt, way to try to handle a negative review?? in getting a handle on this crucial subject. I looked up the ad on their Web site. Well, Eventually, the GM got involved and Reputation and customer satisfaction is of the sure enough it was questionable at best and the problem was finally rectified to the utmost importance to dealers, and there is little went astray of state advertising regulations. customer’s satisfaction (so I guess it was doubt that many negative online postings are The people who wrote that ad may be a real customer with a real complaint and either questionable or do not reliably portray patting themselves on the back for bringing not a fraudulent posting). The customer the true culture of the dealership. customers across the curb, but at what cost? very graciously posted an update about The customer not only did not buy from the resolution, but also responded about However, I believe that a dealership’s the dealer, but also gave a glowing review the employee that attacked him and called reputation is difficult, if not impossible, to and recommendation of the competitor who him a liar. The question that comes to mind manage when certain staff members do not ended up earning their business. is this: What has more significance in the operate ethically and resort to “old school” mind of someone reading this review — deceptive practices. Looking through some • The next dealer was accused of payment that the dealership ultimately handled the of the sites that rate dealers, I found some packing by the finance department. complaint or that someone in the dealership interesting examples: According to the post, the customer raked the customer over the coals for • A dealer reviewed on one of the sites complaining in the first place? attempted to rectify the situation by has dozens of negative posts about bait returning to the dealership to discuss There are a number of excellent firms that and switch, refusal to sell at advertised the issue but apparently received no specialize in online reputation management prices and other questionable acts. I was satisfaction. After the customer posted and I highly recommend that dealers consider a bit surprised at the volume of negative the negative review, a customer relations utilizing their services. But it important to feedback and I have to wonder who’s rep from the dealership responded with a realize that while these companies do an watching the store. But fear not, the nice apology and offers to help — so far, outstanding job, it may not be possible to brilliant perpetrators of all of this negative so good, (although it was 21 days after mitigate the damage caused by ethically- feedback had a plan. They simply added the original post). Here’s where it goes challenged personnel. The first and most some positive posts to the site, which of downhill: The next post comes from an important step in managing one’s reputation course were exposed as coming from the “anonymous” employee of the dealership is having zero tolerance for bad behavior by dealership’s IP address. So much for that who proceeds to berate the customer by employees. idea. How does this dealer defend against accusing him of posting fraudulently. The various staff members allegedly lying to employee stated that the customer’s issue Jim Radogna is president of Dealer customers and then trying to cover it up? couldn’t have happened; the company is Compliance Consultants, Inc. He can be It’s sure not going to be easy. wonderful, etc. “Anonymous” actually contacted at 866.704.8657, or by e-mail at jradogna@autosuccessonline.com. remarked that the customer should be • A post on another site accused the dealer “ashamed of himself” and “should be 24 autosuccessonline.com
  • 26.
    An Interview withShawnKloppman marketing solution DIRECT MAIL FROM THE DEALERSHIP’S POINT OF VIEW An Interview With Rosner Toyota Scion’s Shawn Kloppman “I think direct mail is huge,” said Shawn with some of our direct mail. We’ll take it a AS: Based on your experiences, what Kloppman, general manager of Rosner step further from our mainstream advertising techniques with direct mail would Toyota Scion in Stafford, Virginia. A 21-year and really try to bring it into the homes of you recommend to drive traffic into a veteran of the car-selling game, Kloppman our current owners and make sure they’re dealership? has seen the industry go through a number aware that “Hey, this is a really big deal, and SK: You really need to take a look at your of expansions and contractions. While it doesn’t come around that often.” On the entire owner database and determine how he’s embracing new technology to keep a flip side, if we don’t have a strong message many viable people you have there, and then marketing edge on his competition, he also from the manufacturer, we’ll go for certain come up with a marketing plan on how often believes there’s no substitute for the basics, needs that our dealership might be facing. If you want to send mail to the people. I believe done correctly. We sat down with Shawn we need pre-owned vehicles, we will target that anything more than once a quarter is and talked about the way his dealership uses certain year/model owners. We’ll look to just too much, so you really want to divide it direct mail in their marketing, and how things service department R.O.s for cars that have out where you have a decent sampling every have advanced. 60,000 miles or are three years old and higher month. You need to have a consistent message and will drop to those customers. Basically, and make sure that entire sales staff knows AutoSuccess: Shawn, where does we’re going to get what we’re looking for. what’s going on any particular week or month direct mail fit into your overall when people do come in or contact us; it lends marketing strategy? AS: Can you describe for us a direct credibility to the entire process. Shawn Kloppman: It’s currently about mail campaign that you’ve used that one-third of our budget. If we look at what was particularly successful? AS: Any final thoughts? we spend on advertising on a monthly basis SK: For us right now, Toyota has a 0 percent SK: The days of the direct mail “drop and in any form — print, cable, radio or direct financing plan, which has been going on go” company are gone. There are a lot of mail — we spent a lot of money trying to get for couple months. Typically, they don’t companies out there that tell you they’re new customers every month. We’ve found, have a very big incentive — especially at the next greatest thing, but I think you need though, that there’s always more that can be 0 percent — so we believe that’s huge and to find one that not only will assist you in done to continue to harvest the database we we been able to reconnect with a lot of our determining what’s best for your specific currently have, and that’s where direct mail customers who are two or three years into a dealership needs, but has a CRM that can plays a big role for us. purchase. We’ve been able to get them out of help the whole process and monitor as it goes their vehicle and into a new one, and trade along and is in constant communication with AS: How has the way your dealership for some really nice pre-owned vehicles you. I believe that’s key. uses direct mail changed over the years? that have been maintained here. We’ve been SK: In the past we’ve tried to mail outside able to keep them at or close to their same I’d like to share with your audience more of our existing customer database to gain payments and in a newer car. information about direct mail strategies. There new customers, but it was costly and for the are some effective processes that our provider most part “hit or miss.” In the past, we’ve AS: Is there a time of the month would like share with the first 10 dealers experimented with different mail pieces — where you’ve found direct mail to be who respond to the e-mail address below: like those using “credit cards” and giveaways particularly useful? Specifically, their offering a free download — and testing new markets. Lately, we’ve SK: If I had to pick, I’d say the beginning and and clean-up of your database, along with really put more time into looking at our end of the month. I think most dealerships special reporting on purchase trends. database, dividing it up and coming up with give away the first week of month, ourselves a marketing plan where we can every month included, but we are constantly trying to drop a direct-mail piece to a portion of our improve. database and generate some income off of them coming back in. AS: Do you use different direct mail For more information about Shawn pieces to target different segments of Kloppman or Rosner Toyota Scion in Stafford, Virginia, visit AS: What methods have you used to the marketplace, such as subprime? www.toyotaofstafford.com. integrate direct mail into your overall SK: We will occasionally do some beacon marketing strategy? driven direct-mail pieces. We’ll do more For more information about Strategic SK: It kind of varies on a month-to-month predictors where we would go after import Marketing, contact Todd Strause at basis. If we have a very strong message from owners than particular credit scores and 866.426.5182, or by e-mail at the manufacturer, we will try to carry that on demographics. tstrause@autosuccessonline.com. 26 autosuccessonline.com
  • 28.
    BillPhillips sales & training solution ALGEBRA BOOKS AND CRAYONS The Trouble With Your Lead Management Tool I have worked for more than 15 years dealer who intends to be where this industry who can blame them? They will naturally in the automotive sales industry — my is going and not captivated by past habits. operate at the level they need to for their formal education includes a bachelor’s in Here’s what I’ve learned in 15 years and own well being, and they will capitalize on engineering and a master’s in marketing. by personally experiencing every lead tool the complexity and confusion to justify non- That stated, I in no way intend to demean available in the market: compliance to your Internet sales process. the intelligence or ability of any of the hard- working people in this business by the title The usability of any lead management tool Evaluating the Salespeople Defines or contents of this article. I consider this can only be best understood by those who How You Evaluate the Tool business to be challenging, exciting and have spent time successfully managing Being able to quickly understand and extremely dynamic given all of the market Internet sales within a dealership. evaluate what your Internet salespeople forces driving change in the traditional actually do during the day is singularly business model. Personally, I am privileged Most of the lead management tools available critical when selecting a lead management to have been able to build a career doing on the market today have been developed by tool. How quickly was the incoming lead something I love for so long. software programmers unfamiliar with the responded to? How many calls in what time dealer or the sales environment. They then frame, and what was said? At what point did The lead management tool, used by most consult well-meaning but unknowledgeable the Internet salesperson turn the contacted Internet sales organizations, is a necessary people about what their database should do. but non-responsive lead to a manager? and extremely important element to selling So those who barely know have consulted to And so on. DMS compatibility, Web site cars. The tool manages the prospect data, those who don’t, and quite frankly, shouldn’t integration, automated programming and schedules salesperson actions and reports know how to manage and run successful reporting breakdowns are all secondary on key information like response time and Internet sales within a dealership. reasons to select a lead management tool. closing ratios. It aggregates multiple lead Simplicity of the user interface, process sources into a single database. This tool and This leads us to the result that most lead creation, reporting and oversight are your the invaluable data about potential customers management tools are far too complicated primary concerns. Get references and check are critical to the success or failure of any visually and operationally for the people who customer service availability, service uptime, use them. Multiple response time and time to resolution as well. paths to arrive at customer data or Regardless of the Lead Tool, to generate e-mails It’s the Process or complete Process management is the key to the ills of scheduled events poor Internet sales in your dealership. This creates confusion, marketing medium will require more work dilutes the training from your sales staff and managers, but the experience and net is dramatically higher. If you don’t have kills the intended the same level of measurable control, results goal of engaging and accountability in your Internet sales as and managing you do on the floor, find someone who can the customer. help you now. You’ll see dramatic results and It’s even worse run circles around your competition, who for the manager has no clue on how to get results with it. The overseeing the smart dealers of this market will get in the sales team who trenches and figure out what really works. must maximize his time across As a wise man in this industry once said to multiple sales me, “Not everything we do in this industry functions to try to is wrong.” We still have to sell cars and manage a system make profit. How we get customers and with numerous manage salespeople is changing. Select your complicated tools wisely and beware of sales pitches reports and and promises from those who haven’t done multiple click what you do, or who don’t use the tools they paths to get to sell. Look through the eyes of a salesman/ basic, real-time manager. In the end, they are the ones who meaningful deliver the sales or are hindered from them. information. Hence, the title: Bill Phillips is the president and CEO If you give of Automotive Internet Management, algebra books to Inc. He can be contacted at 866.593.7212, or by e-mail at kindergartners and bphillps@autosuccessonline.com. they color on the pages with crayons, 28 autosuccessonline.com
  • 29.
    WHAT ARE YOUR ONLINEADS MISSING? Inventory Online (IOL) Marketing Suite is a complete internet merchandising solution. Call today to see what your ads are missing. homenetauto.com salesteam@homenetauto.com 610-738-3313
  • 30.
    StephenCravens marketing solution MAKING THE PHONE WORK FOR YOU Make the most informed decisions on which will allow them to monitor the effectiveness on the preferences/habits that have been forms of advertising are generating the of their team’s response. Are incoming demonstrated in the responses to prior leads you want, and which ones are costing calls being handled properly? Are customer campaigns? Is the call data being effectively you money. Call tracking helps dealerships service representatives hitting their talking integrated with the company’s day-to-day capture prospective customers at the point of points? When the sales team makes a follow- business software and processes? interest, when they showed intent, rather than up call, are the agents sharing consistent receiving a form to generate a call later. To information with the new leads? These The progression from the first level to the illustrate, here is a short tour of how a typical questions can be answered by monitoring the third happens quickly and naturally. Many of dealership uses call tracking: recordings of inbound and outbound calls. the advertisers we work with initially think they only need to validate their marketing Level 1: Validate Media Spending Level 3: Capitalize on the Knowledge expenditures, but we go ahead and throw in Advertisers are initially drawn to the idea of That has Been Collected the call recording capabilities. It usually takes call measurement and call tracking because At this point, the marketing manager about one day before the sales manager wants of the prospect of eliminating wasteful has focused spending on top-performing to listen and track every business call. Moving spending on ads that are not working. placements (Level 1) and then ensured that from the second level to the third level Dealerships can measure the number of all calls are being handled properly (Level requires a bigger push, but managers quickly responses an ad generates to gauge which 2). The next step is to utilize the data that realize the value of efficient lead management. types of media (or which providers) are has been collected through the call tracking producing the highest rates of return. program. Are these leads being converted Stephen Cravens is a business into long-term customers? If the initial development specialist for Century Level 2: Evaluate How Calls are Handled call is simply an information query, are the Interactive. He can be contacted at 866.652.3704, or by e-mail at When a dealership’s managers are ready to proper follow-up procedures in place to stay scravens@autosuccessonline.com. move beyond simple quantitative analysis, in contact with this prospective customer? a comprehensive call measurement program Will new marketing campaigns be focused Time to rethink auto transportation Call 1-866-207-3360 Nationwide or register online Door-to-Door for our lowest rates Online Easy ShipCarsNow.com BUILDING AMERICA® 30 autosuccessonline.com
  • 31.
    PatriciaJ.Roberts sales training solution DO MEN AND WOMEN SPEAK DIFFERENT LANGUAGES? Men and women think, speak, and process Before you can sell your product or service loyalty with women consumers, and thus information very differently. Gender to a woman, you have to speak her language. your ROW. communication differences are very real and, Whether you are selling in a professional yes, they do matter a great deal. If one is to or a retail environment, gender differences Patricia J. Roberts is the director of business succeed in the retail world, everyone needs to really do matter. Make sure that you and your development for AskPatty.Com. She can be understand what those are and also why. employees are properly trained so that you contacted at 866.652.3970, or by e-mail at too can attract, sell, retain and increase your proberts@autosuccessonline.com. Tell the Time or Build a Watch Women are storytellers and men like to speak in sound bites. Women like and want to build up to the bottom line or to the end with paragraphs of information, with examples and with stories to build the rapport and to build the picture. Men like to get to the “bottom line,” then provide the details in bullet points to support that end game. Storytelling is frustrating for the male and the bullet point format is equally frustrating for the female. To effectively communicate with the opposite gender, it will be necessary to change the approach by women in stating the bottom line first and by men to give many more details when communicating with women. Look at the Floor or Look Her in the Eye Women use about 25,500 words in a day, where men use about 12,500. On average, women maintain eye contact while speaking for 12 seconds vs. a man maintaining eye contact for three seconds. As a male interacting with the female consumer, changing the approach by balancing the needed eye contact and number of words spoken will make the woman feel like they are being taken seriously. Trees or the Forest Women can perceive “the fine points” better than men. They see and recall more elements and nuances in products, services or communications. They do more research before the decision and the purchase. In evaluating elements of a product or service decision, women want the same things as men, they just want more: more facts, details, information, feedback from others and time to make their decision. If woman says “I need more time to think about it” she means it, and she will get back with you. The Bottom Line-Row (Return on Women) Women do a lot of research before reaching a decision. Once they make that purchase, women tend to be more loyal to their choice of product and service provider, generating more referrals through more active word-of-mouth. the #1 sales-improvement magazine for the automotive professional 31
  • 32.
    RichardWinch marketing solution DON’T FORGET ONLINE REPUTATION MANAGEMENT FOR FIXED OPS Online reputation management has generated and more than one in five change their mind just competing online against your dealer a lot of buzz in 2010, and for good reason: based on what they read. And roughly one- competitors, but also, typically, hundreds Great SEO, combined with managing what fifth of a dealership’s reviews will be for the of other local businesses, from independent customers say about your dealership at the service department. shops to the PepBoys and AutoZones review and social media sites, are the two (total auto service businesses outnumber most logical, sustainable and cost-effective There are other unique factors making dealerships by about 20:1). So, when even ways to drive online business today. But reputation management for service key. a precise search like “Honda transmission almost all the talk about online reputation has For one, car service/repair is a consumer repair Cleveland” returns a noisy 300,000- centered around the sales department; having “pain point,” and it seems I’m always plus results on any given day — and seven a powerful, positive online review presence reading a new study revealing “vehicle in 10 searchers only click on the first-page for your service and parts departments has repairs cost 34 percent more at dealerships results — and a high volume of reviews never been more critical. than independent shops.” There’s a wider would catapult your dealership to the top of dealership-for-service “reputation” battle that first page, you can see how the review Why Service Reputation (over pricing, “honesty,” etc.) that’s out there equation works. Management Is So Crucial: in the press and the world, so it’s out there Dealers have heard a lot lately about how in consumer minds. Establishing real-world The savvy dealership with those 100-plus fixed ops is the key to survival in tough consumer trust for your service department, service reviews, and that shining 4.7 star times — how every year it represents a when you’re in brutal competition with rating, has staked out one of the most greater lion’s share of profits — along independents, is increasingly paramount. powerful “billboards” possible today: with how much business they continue to broadcasting their brand and claim, right up bleed to independent repair shops and parts Reviews Catapult You To the Top of against the independents, to local service- superstores every year. You’ve heard it many the Service-Search Results searchers 24 hours a day, seven days a week. times, but can’t hear it enough, because the A review campaign will have an outsized And it’s exposure no paid search or banner ad opportunities – and lost dealer opportunities impact on your service business because could ever buy, because it’s the endorsement – are only intensifying. today’s service shopper is first and foremost of your real-world, satisfied customers. a searcher — when’s the last time you picked • According to AAIA data, the U.S. auto up a Yellow Pages? — and the review sites I’ve argued why dealerships must tackle a aftermarket will grow to roughly $290 have incredible traction in first-page search review game plan for fixed ops; next issue billion in 2010 – up roughly four percent results. Google loves review sites because I’ll outline a proven, practical, service- from last year. they love consumer relevance. specific dealership process. • Service/parts have accounted for a whopping 80 to 100 percent of dealer Try a search like “Toyota transmission The First Step: profits over the last couple years, repair San Francisco,” or “Honda brakes Because all online reputation management according to NADA data. Los Angeles.” Typically, the Google Local involves radical culture change at a • At the same time, NDP data found that listings will be dominated by independents, dealership, the very first step is getting dealers increasingly represent a smaller while the first-page organic results will management buy-in. Share the facts with piece of the growing service pie, capturing heavily return the big review sites like the dealer principal and service manager. only 44 percent of total service dollars. Yelp or Citysearch. But a dealership with Help them grasp these online realities and • A J.D. Power Associates study predicts a properly optimized Google Local listing lost opportunities: the disconnect between that dealership service traffic volumes are and lots of service reviews (across numerous how much attention the sales department expected to decline 20 percent between sites) will break right into that coveted gets vs. service, given the glaring profit 2009 and 2013, resulting in a 25 percent search real estate. In fact, a dealership set up discrepancies, and how your service decrease in those ‘lifeline’ service dollars. properly at review sites/directories, who also reputation could be your most powerful has a high volume of reviews, can even come future marketing weapon — and a true Today’s Service Shopper – A up on top for generic service searches like competitive advantage — but is given the Searcher and Online Review Reader “Car Repair, Bremerton, WA.” back seat it takes at most dealerships. Add to this mix that online reviews have an dramatic impact on how consumers select Service: A Crowded Online Market Richard Winch is CEO Founder of their service providers. The latest study from Here’s another unique factor about reputation eXtéresAUTO. He can be contacted at 2008, reveals that three out of four auto management for service and parts, as 866.476.4389, or by e-mail at consumers turn to online dealership reviews, opposed to new-vehicle sales: You’re not rwinch@autosuccessonline.com. 32 autosuccessonline.com
  • 33.
    The Pre-Owned PriceCheck Customers trust the RealDeal Ref to show them a fair price. RealDeal from vAuto helps us make deals, not concessions. — Randy Wise, President Randy Wise Auto Team Flint, Michigan RealDeal is the industry’s first pre-owned price check for dealers. Show your customers how your price compares in your live market. Prove you have a fair price and protect your margins. With RealDeal, the latest innovation from vAuto, negotiate less and close more sales. Call 877-988-7648 today or visit www.vAuto.com/realdeal to schedule a live demo.
  • 34.
    MattBaker sales training solution LEARNING THE LANGUAGE Three Communication Tactics to Increase Closing Percentages Think about the last time you purchased homework. Can I ask you something? If I am price. In an effort to prove his intelligence, something. Why did you decide to buy it? not as up to speed on XYZ car as you are, will the sales rep is quick to answer each of the What problems did the item help to solve? you get upset?” customer’s pressing questions. Yet, what this What did that item do to make your life sales rep fails to realize is that his attempts to easier, more comfortable or more enjoyable? Customer: “No. Just want the price.” seal the deal with educated answers will only hurt his odds of selling in the long run. One of the rules my company follows states, Salesperson: “Here’s what I know; I’ve “People buy for their reasons, not yours.” never lost anyone over price and you won’t The knowledge of a salesperson is valuable. Unfortunately, most people won’t come right be the first. What else besides price is Customers understand this value and push to out and tell you why they are talking to you. important to you? I may not be able to do get as much information as they can for free. They want to give you little info, and expect everything you want…” Don’t let your salespeople become unpaid unpaid advice. Like this scenario shows, cushions give you consultants. Help them gain information as the power to control the conversation. They opposed to giving it by utilizing the rescue Many times in a selling situation the customer provide ample opportunity to test the waters technique. will put pressure on a sales person to answer and find other factors that are important to the questions they don’t want to answer yet, or customer, but were not revealed to you upfront. The rescue technique serves three purposes: don’t know the answer to. This article offers to help sales reps test the waters, to guard you three techniques to help your salespeople Deflect Pressure to Gain Insight against information overload and to combat these situations, and keep the Deflections help to keep the conversation decrease buyer resistance. While acting like conversation moving toward a sale. moving. Many times in a selling situation, a “dummy” may seem unnatural for most the customer puts tremendous pressure on the salespeople, it could determine the life or We all know that the key to successful salesperson. The salesperson often feels as death of their next sale. selling is asking questions. Utilize these three though they must have a perfect answer to each techniques to help your sales team feel more of the customer’s comments, or they’ll lose Examples of rescues include: comfortable asking questions to discover a that customer. The act of deflecting utilizes 1. “I’m a little confused…” customer’s buying signs. challenging questions and statements to place 2. “You tell me if I’m wrong…” pressure back onto buyers. This entices the 3. “My bad. I didn’t do a good job Cushion Your Approach customer to reveal more information and helps explaining…” Since consumers often regard salespeople as the salesperson gain clarity regarding what the being “pushy,” it’s incredibly important to customer really wants. These examples provoke the customer set the stage for your conversation with the to rescue you with an informational yet appropriate cushions. Cushions are initial In many cases, sales reps assume they know empathetic response. This technique keeps the questions or phrases that soften the approach. what the customer is asking for. To ward customer talking, and allows the salesperson They allow customers to respond to your against this mistake at your dealership, use to discover more useful information. This requests without getting defensive. Tone of the rule, “Assumptions are the mother of all technique brings customer defenses down voice plays a key role here. Don’t frighten the screw ups.” Making your sales team aware quickly because the customer feels that they prospect. Speak in a soft and friendly voice. of this will help to ensure they ask more and are smarter. assume less. Need a way for your sales team to remember Remember this: The best form of humor is the importance of cushions? Use another rule Examples of deflections are: always to make fun of yourself; and the best we follow: “If you feel it, say it gently,” which 1. “What were you hoping for?” way to build rapport is to make someone serves as a guideline for communication 2. “How do we get around that?” laugh. By utilizing rescues, you have the throughout the sales process. 3. “Let me make sure I understand…” power to diffuse the customer and build rapport in seconds. Examples of cushions are: Examples one and two push the conversation 1. “Sounds like you’ve done your along by answering the customer’s initial Since this is a one-page article, I only shared homework….” question with another question. This tactic is a small sampling of cushions, deflections 2. “Tell me if I’m wrong, but….” very effective, but only to a certain extent. If and rescues; and how utilizing these 3. “Can we talk off the record?” the buyer grows impatient and you still need techniques can help your sales team convert answers, try starting a sentence and pausing more buyers. If you are interested in more Each example stated above respectfully as though you’re searching for a word. This examples, please e-mail me at the address redirects a potentially uncomfortable method, as illustrated in example three, below with the subject line “EXAMPLE.” situation. Example No. 1 could be used to gives the buyer the opportunity to finish the I will send you a PDF copy of GA’s address customers who are pressuring you statement for you. “Guide to Improving Sales Talent: Cushions, on price after shopping online. Here’s how Deflections and Rescues.” this scenario would go using the appropriate Rescue Me cushion: Let’s pretend one of your most veteran sales Matt Baker is the vice president of sales Customer: “I’ve been looking at XYZ car reps just greeted a new customer on your for GA Marketing. He can be contacted at 866.618.8248, or by e-mail at online. What’s your price?” lot. The customer is in the market to buy, but mbaker@autosuccessonline.com. spends much of the time badgering the sales Salesperson: “Sounds like you’ve done your rep with detailed questions and pressure on 34 autosuccessonline.com
  • 37.
    JL Marketing islooking for Business Growth Strategists to sell our multi-channel direct marketing products and services. They will prospect for new customers as well as manage leads from JL Marketing’s growing national accounts. This is a full-time B2B outside sales position. www.jandlmarketing.com kkasun@jandlmarketing.com Do you want to be a part of one of the fastest growing software companies in the retail automotive market? vAuto’s pricing, appraisal, stocking and merchandising tools are an evolutionary step forward for used car departments. If you have strong retail automotive and/or technology solution provider experience in the dealership industry, then we want you to be part of our tremendous growth. Send resumes to: vautocareers@autosuccessonline.com. Learn more at www.vAuto.com. vAuto is an Equal Opportunity Employer.