Read this month’s and previous issues online at www.AutoSuccess.biz




                                                                                    .biz




   The Real Deal
   Pre-approval Sale
    Ben Elliott & Jimmy Peters

                                                      Moving Out of Your Comfort Zone

                                                       Improving Employee Satisfaction
                                                        Improves Customer Satisfaction

                                                                  The Road to 20 Cars a
                                                                    Month, Every Month

                                                                   E-mail Best Practices:
                                                      Create an Effective Auto Response

                                                                How to Really Maximize
                                                            an Employee Price Program
a division of Systems Marketing, Inc.   August 2005
SUMMITIII
                                                                                                                                  BEST PRACTICES
    Dean Evans                          David Kain                            Sean
          Vice President of                 President, Kain              WolÞngton
          Marketing, Dealix       Automotive Inc. Internet &          Owner, BZResults.com
                                    BDC Training Specialist
             You will learn:                                         Case Study: How to use
  - Internet Marketing that                    You will learn:      BDC/Internet departments
     generates high quality            - Mapping out the best      to sell 100 - 500 extra cars
                       leads
          - Maximizing lead
                                        Internet sales process
                                   - E-mail templates for the
                                                                                      a month.

                                                                                You will learn:
                                                                                                    LEADERSHIP • INTERNET • CRM • MARKETING • BDC • SALES
      generation from your          best short and long-term
                                                                   - Setup a successful BDC/
                   Web site                    communication
                                                                           Internet department
   - Maximizing third party          - Phone script elements
                                                                    - Use the Web to promote
            automotive sites                that turn leads into
                                                                         all your proÞt centers
       - Metrics that matter                      appointments
                                                                       - Use the Web to drive
      - Focus on return on            - Recruiting, hiring and


                                                                                                    Dealers &
                                                                    showroom & phone trafÞc
                 investment         compensating for results
                                                                   - Sell old stock, vehicles &
                                                                                parts inventory
                                                                       - Use e-mail marketing
                                                                       to drive more trafÞc for
                                                                                      zero cost
                                                                                                    Managers Only!

                                                                                                    Two days of
                                                                                                    intense learning.
                                                                                                    Dramatically
      Kevin Root                         Steve Hiatt
                                  Owner, Mountain Mitsubshi
                                                                               Jennifer
                                                                               Picheco
                                                                                                    improve your
                                                                                                    results.
VP & GM, Dealer Advisory
Service, The Cobalt Group               Case Study: How to          Director of e-Commerce,
                                  increase your net by half a       Germain Motor Company
  Case Study: Processes                     million in a year.
                                                                      Case Study: Germain
   the top 20 dealerships                       You will learn:    Motor Company’s Internet
use to convert more leads             - Evaluating personnel,      department sells over 200
                 to sales           the lazy or content ones         cars per month - here is
                                             - Continually train                  our secret
             You will learn:        everyone: Front end two
                                     times a week, Þxed end                      You will learn:
    - Use the top three key                        once a week
success drivers to convert                                                       - Dedicated vs.
                                       - Put in controls. Move                       Designated
              leads to sales           over aged inventory in
     - Avoid the three most                                            - The pricing fear factor
                                          new, used and parts      - Are you really listening to
    common mistakes that                        - Forge a deep
                                         relationship with your                   the customer?
                    kill sales                                              - Third-party leads..
       - Maximize your lead         manufacturer to help get
                                  correct inventory, ßoor line                         Why not?
                     volume                                           - Move forward or move
                                                    and capital
         - Respond to leads                      - Praise every               on - Our follow-up
  - Drive for appointments               improvement in sales                          schedule
- Focus on processes that           goals, certiÞcations, etc.            - Measure, track and
              deliver results                      out in public                       feedback




                                                                                                    MGM Grand
                                                                                                    Las Vegas,
                                                                                                    Nevada
       Chip Perry                       Jim Adams                  Robert Revere                    November 3 & 4,
                                                                                                    2005
       CEO and President,                  General Manager,           CRC Director, Avondale
          AutoTrader.com                          Roper Kia                      Auto Group
                                                Honor Your
Internet Advertising Best               Commitments: The              Case Study: Transition
                Practices             Þve things we owe our             from Internet BDC to
                                                  sales staff              modern day CRC


                                                                                                    Limited Seats,
             You will learn:
                                                You will learn:               You will learn:
   - How AutoTrader.com’s                 - How to understand
top performing dealers get                                             - Lower compensation
                                  opportunity generations is                     percentages

                                                                                                    Register Today!
   their outstanding results                the key to success             - Lower overhead
 - Take home examples of              - Individual goal setting                 - 100 percent
   effective merchandising        - Managing activities bring                   accountability
              you can put to                             results              - Higher results
             immediate use          - Daily one-on-ones: The
                                                key to success


                                                                                                    Case studies
                                        - Your selling attitude:
                                             Mirroring behavior
                                         - Building your dealer
                                                          brand

                                                                                                    from successful
                                                                                                    dealerships
                                                                                                    across the
                                                                                                    country.
Darren Haygood                          Jasen Rice                         Erik Stuttz
Director of CRM & Internet
 Sales, Lokey Automotive
                                  Internet Director, Lou Fusz
                                                     Automotive
                                   Case Study: Ranked #17
                                                                           Vice President of
                                                                      Consulting, STC Group         Class room style
                                                                                                    seating only $695
        Case Study: Lokey                                             Case Study: Paragon
          Automotive Group          in Total Internet Sales for    Honda & Acura uses CRC
  triples Internet sales - by          dealer groups, Internet       to sell 106 extra cars in
              spending less!            departments generate                      one month.
                                         upwards of 20%-40%

                                                                                                    in advance,
               You will learn:         of the dealerships total                  You will learn:
 - DeÞne your dealership’s                             business.      - How we increased our
    CRM strategy. BDC vs.                                                   leads and increased
        dedicated personnel                      You will learn:       our closing ratio from 7


                                                                                                    $995 after
       - Maximize your ROI,              - Marketing to today’s           percent to 25 percent
  ignore the hype and start                 Internet consumers            - How to evaluate the
         realizing real results        - Internet Department’s        different CRC models to
     - Achieve higher gross           steps and processes to       choose the one that works


                                                                                                    October 5, 2005.
      than with your walk-in              the appointment/sale                     for your store
                    customers        - Gaining revenue in the         - How to staff your CRC
        - Achieve 20 percent          Þnance department and                  - How to build out &
           Closing ratio & 20         getting them to become            overcome obstacles to
 percent retail mix for your                 more atoned to the    creating a successful CRC
                    dealership                Internet customer    - Best practices for turning
    - Turn leads into phone         - Meeting and exceeding           leads into appointments
        ups - phone ups into                 Internet customers                   that show and
                appointments                       expectations       appointments into sales       Speakers and times subject to change




     Call today to register.                                                      toll free 866.317.7914                 web www.autosuccess.biz
8Moving Out of Your Comfort Zone                                                                                BrianTracy



INSID                                 Improves Customer Satisfaction 9
                                    Improving Employee Satisfaction

                                             Customer Service Counts

                           The Road to 20 Cars a Month, Every Month
                                                                          10
                                                                          12
                                                                                                                                                                                           BobTasca

                                                                                                                                                                                           TomGegax

                                                                                                                                                                                           JimAdams


                                   Create an Effective Auto Response 14
                                                 E-mail Best Practices:                                                                                                                    DavidKain

                                                  ... With Time to Spare
                                                                          16                                                                                                               KirkManzo


                                 Would Anyone Really Notice or Care 18
                                       If Your Business Closed Today,                                                                                                                      MichaelYork

                                      The Real Deal Pre-approval Sale
                                                                          20                                                                                                               BenElliott

                                                          And You Are ...
                                                                          22                                                                                                               TonyDupaquier

                  How to Really Maximize an Employee Price Program
                                                                          24                                                                                                               ScottJoseph

                                               Steering Out of Control
                                                                          25                                                                                                               CarolMartin-Ardell

                                                             Fact Finding
                                                                          26                                                                                                               AnthonyHall


                                          Manufacturer or Leadership 28
                                                     Is it Marketing, the                                                                                                                  SeanWolfington


                                               Pre-Owned ProÞtability 29
                                               New Software Steps Up                                                                                                                       RandyBarone
In the special feature
of the July issue of
AutoSuccess Magazine,                            The Champion Coach
                                                                          30                                                                                                               MarkTewart
we incorrectly stated that
Ben Freeland worked for         Smile and the World Smiles With You
                                                                          31                                                                                                               PattiWood
Freeland Luxury cars, he
is the owner of Naples
Nissan in Florida.
                              Leverage Your Ofßine Marketing Efforts
                                                                          32                                                                                                               PaulAccinno

                                                           CRM Evolution
                                                                          34                                                                                                               DanVogel



                                                                                                                                                                                           Exodus 34:2
                                                                                                                                                                                           “Be ready in the morning, and then
                                                                                                                                                                                           come up.”
                                                                                           3411 Pinnacle Gardens Drive Louisville, Kentucky 40245
                                                                                           ! Toll Free: 877.818.6620 " Facsimile: 502.588.3170                                             Isaiah 41:13
                                                                                           Patrick Luck, Editor & Publisher                                                                “For I the Lord thy God will hold thy
                                                                                           • pluck01@autosuccess.biz                                                                       right hand, saying unto thee, Fear
                                                                                           Susan Givens, Vice President                                                                    not; I will help thee.”
                                                                                           • sgivens02@autosuccess.biz
                                                                                           Courtney Hill-Paris, Sales-improvement Strategist
                                                                                           • chill-paris04@autosuccess.biz
                                                                                           Brian Ankney, Sales-improvement Strategist
                                                                                           • brian01@autosuccess.biz

 God Bless America
                                                                                           Thomas Williams, Creative Director
                                                                                           • twilliams03@autosuccess.biz


    AutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or
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BrianTracy




                     Moving Out of Your Comfort Zone
                     Any change, or even      affected. You will experience sleeplessness,   achieve them. You must begin to see yourself
                     an attempt to change     indigestion or fatigue. You may react with     and think about yourself as capable of being
                     anything you are         impatience, irritability or anger. You will    one of the highest earning sales people in your
                     doing, makes you         often feel as if you are on an emotional       field. You must take charge of developing a
                     uncomfortable.     By    roller coaster. So if you want to sell more    new self-concept for sales and income that is
                     attempting to change,    and earn more, you must increase your self-    more consistent with what you really want to
you move out of your comfort zone. You feel   concept level of income. You must increase     accomplish.
increasingly uneasy. You experience stress    the amount you believe yourself capable of
and tension. If the change is too extreme,    earning. You must raise your aspirations,      Your self-concept determines your levels of
your physical and mental health can be        set higher goals, and make detailed plans to   performance and effectiveness in everything
                                                                                             you do. In sales, you have a series of mini-
                                                                                             self-concepts that govern every activity
                                                                                             of selling. You have a self-concept for
                                                                                             prospecting, for using the telephone, for
                                                                                             cold calling, for making appointments, for
                                                                                             qualifying, for presenting, for answering
                                                                                             questions, for closing, for getting referrals and
                                                                                             for making follow-up sales. You have a self-
                                                                                             concept of your level of product knowledge,
                                                                                             your personal management skills, your level
                                                                                             of motivation and for the way that you relate
                                                                                             to different types of customers. In every
                                                                                             case, you will always perform in a manner
                                                                                             consistent with your self-concept.

                                                                                             Wherever you have a high self-concept,
                                                                                             you perform well. If you enjoy working on
                                                                                             the telephone, you look forward eagerly to
                                                                                             telephone prospecting and selling and you
                                                                                             do it well. If you have a high self-concept for
                                                                                             making presentations or for closing sales, you
                                                                                             feel comfortable and competent whenever
                                                                                             you are doing them.

                                                                                             Wherever you feel tense or uneasy in selling,
                                                                                             it means that you have a low self-concept in
                                                                                             that area. You do not feel comfortable when
                                                                                             you are engaged in that activity. You probably
                                                                                             avoid that activity as much as possible. This
                                                                                             is normal and natural. The only question is,
                                                                                             what are you going to do about it?

                                                                                             Now, here are two things you can do
                                                                                             immediately to put these ideas into action.

                                                                                             First, set a goal today to become one of the
                                                                                             highest earning people in your field. Then,
                                                                                             back your goal with action by committing to
                                                                                             becoming very good in every area of selling.

                                                                                             Second, see yourself, imagine and visualize
                                                                                             yourself as if you are already very good
                                                                                             at what you do. Create within yourself the
                                                                                             feeling of success and accomplishment.
                                                                                             Remember, as within, so without!

                                                                                             Brian Tracy is the chairman and CEO
                                                                                             of Brian Tracy International. He can be
                                                                                             contacted at 866.300.9881, or by e-mail at
                                                                                             btracy@autosuccess.biz.


  8
BobTasca


                        Improving Employee Satisfaction
                                                                                                         Turn Your
                         Improves Customer Satisfaction                                               Internet Leads
                      We learned to curb            Employee referrals                                into Showroom
                      employee       turnover
                      and increase employee
                                                    Ask internal employees who do an
                                                    outstanding job if they know any one who          Appointments...
                      satisfaction because          might make a good fit with the organization.
                      customer satisfaction         Offer an employee “bird dog fee” for their
                      hangs in the balance.         help in finding a quality candidate that stays
Making a difference in employee satisfaction        for a period of time (example: six months).
at your store hinges on four areas of focus:
    1. Recruiting process                           Advertising
    2. Hiring process                               When networking and employee referrals
    3. Orientation process                          fail to generate a qualified candidate for an
    4. Continuous improvement process               immediate position, we have some great
                                                    content and helpful pointers for creating the
In this article we’ll look at recruiting out of     right kind of ad:
inspiration, not desperation, and if you like          1. Sell yourself. Like a “Why Buy
what you read, you can watch for future                     Here?” brochure, a want ad needs
articles to look more closely at hiring,                    to be a “Why Work Here?”
orientation for new hires and continuous               2. Never over-promise and under-
improvement.                                                deliver.
                                                       3. Mention in-depth training, if you
Recruitment process                                         offer it.
Trying to recruit great people is a never-             4. Mention that a mentoring or
ending chapter in the story about meeting                   continuous improvement process
and exceeding customer expectations. But                    will be provided, if it is.
do we sometimes make decisions out of                  5. Advertise that you offer monthly
desperation? To avoid being caught in a bind,               associate reviews for ongoing
finding great people starts with an outlined                 support, and live up to that
description of each position in the dealership              promise.
to define our dealership needs. This can
start with looking at our surroundings and          Other sources
focusing on these three things:                     Here are a few more examples of where to
   • Work environment                               look for great people:
   • Job tasks and responsibilities                    • Job Fair: Set up a booth at your
   • Job competencies                                      local college(s) during a job fair
                                                           day.
As anyone in retail knows, there’s no such             • Monster.com and other Internet
thing as a “hiring freeze” in a car dealership,            sources.
and if you’re not on the lookout for talent, it
may go unnoticed.                                   The automotive business is a sales and
                                                    service industry that can be compared to a
QualiÞed applicants                                 fine hotel, fine restaurant or clothing store.
Whether you’re looking for a qualified
technician, superstar sales person or
                                                    Customers are willing to seek out, find and
                                                    pay more money when the service exceeds
                                                                                                        Guaranteed...
trustworthy title clerk, the best dealers utilize
“word of mouth” advertising. The goal is to
                                                    their expectations. There’s no danger of                 or
                                                                                                      You Don’t Pay!
                                                    exceeding customer expectations if we
never have a need to run advertisement              don’t put an end to the revolving door that
to solicit employees and to create a                is the result of employee turnover, and that
reputation in the community that qualifies           starts with recruiting the right people out of
your dealership as the place to work. This          inspiration, not desperation. At Tasca, we
means we need to focus on doing our best as         learned a lot about recruiting the right people
effective leaders within our workplace and          from our training partners, and I encourage        Call today for a free estimate
community. Quality job applicants will seek         you to contact me to learn more about                    on implementing
to find us, if we are doing our jobs.                creating a recruiting and hiring process that     the TIMS system in your store.
Networking                                          will build employee satisfaction and boost
Always let people know we are on the lookout        your CSI.
for quality, potential candidates. Be sure to ask
other business contacts (banks we deal with,
advertisers and even our supply vendors) for        Bob Tasca III is the dealer principal of               www.worlddealer.net
any possible recommendations while we are           the Tasca Automotive Group. He can be               e-mail: info@worlddealer.net
participating in business transactions and          contacted at 866.210.1254, or by e-mail at                   866.429.6826
even involved in social activities.                 btasca@autosuccess.biz.

august 2005
                                                                                                                                   9
TomGegax




                                                      Customer Service Counts
                       Tires Plus’ customer        our employee playbook, dealt with how to           handled cleanly in the first place.
                       service was legendary.      treat our guests (we called them “guests” to
                       I asked our people          inspire the kind of service you’d find at a fine     4. Solicit and act on feedback. Create
                       to add a touch of           hotel). You can’t inspire daymaking service        as many comment channels as possible:
                       volunteerism to the         through occasional pep talks, memos and            comment cards, follow-up phone calls,
                       job, to try to make         meetings. It’s gotta be walked, talked and         complaint hotlines. You can’t get better
each customer’s day a little brighter. If we       lived - day in and day out.                        without knowing what your customers
concentrated first on kindness and empathy,                                                            think. We regularly retained an outside
I said, healthy profits would naturally follow      2. Treat employees right. If you leapfrog          service to conduct customer surveys. We
(as long as our prices and costs were in line).    your people and focus chiefly on pleasing           also contracted a “mystery shopper” service
                                                   customers, you’ll wind up with unhappy             - for both in-store and phone interactions -
Why gun for “legendary” customer service?          customers. Connect the dots, folks. Do             to get an objective, in-depth look at quality
                                                   you really expect employees who feel               control.
1. It keeps ’em coming back. Seat-of-              unappreciated to welcome customers with a
the-pantsers spare no expense to get new           big smile and a genuine desire to give them a      Gathering information is pointless, of course,
customers in the door, yet often fail to provide   positive impression of your company? Honor         unless you act on it. We tweaked our store
a why-go-anywhere-else experience. Huge            your people, concern yourself with their           protocols all the time based on customer
mistake. Customers are like spouses - take         well-being and respond to their grievances         feedback. Every negative comment about an
them for granted and they may go elsewhere         like they were customers. You’ll be                employee was routed to his manager’s in-box
to get their needs met. It’s a vicious circle      rewarded with invigorated, loyal employees         (and copied to his district manager) so the
- businesses pour more and more resources          who set new standards for performance and          offender could be coached back on track.
into unearthing new customers to replace           customer care.
the ones lost to neglect. Showering attention                                                         5. Walk your talk. Leaders give a lot of lip
on customers already in the fold keeps them        3. Establish clear policies. In our business,      service to their commitment to customer
in the fold, so your new customers become          guidelines were essential at three customer-       service. Are you among the few who follow
add-ons rather than replacements.                  care stages.                                       through? When you hear of a complaint,
                                                                                                      do you shake your head and joke about the
2. It pulls in new customers. Don’t just           Initial contact.                                   customer being an odd duck? Or, do you
satisfy customers. Astound them. Lay out           Guests were greeted with WHENS:                    urge your people to look at the situation
the red carpet, and guests will rave to friends    Welcome, Handshake, Eye contact, Name,             through the customer’s eyes and do what
and family. That sends new customers to            Smile. We then asked a series of questions         it takes to make her happy? Do you shout,
your doors and Web site - at no additional         to identify their needs. Staffers also fielded      “You gave away WHAT?” Or, do you say,
cost. (Expect a dazzled customer to                phone calls according to a protocol I              “Good for you, you remembered our values
recommend you to two to three others.) On          established in the early ’80s: “It’s a great       and did the right thing.” Great customer
the other hand, one rude encounter with an         day at Tires Plus. This is Jim. How can I          service will wither on the vine without the
employee can torpedo every future purchase         help you?”                                         support of upper management.
from that customer, his family and friends
- and their family and friends. (Expect a          Warranty service.                                  6. Measure and reward performance. We
peeved customer to complain to three to            Sales people were trained to welcome               had a customer satisfaction metric called
eight others.) Precious word-of-mouth buzz         returning, non-revenue-producing guests            GEI (guest enthusiasm index). Applied
- free advertising - is squandered whenever        like they were new customers. The reason           to individual stores and the company as
a customer has a less-than-excellent               should be obvious - customers prefer to go         a whole, it quantified the percentage of
experience.                                        steady rather than have a one-night stand.         customers who would recommend us to
                                                   That means coddling.                               friends. Below-average stores were targeted
Six ways to win legendary customer                                                                    for extra coaching. It took a lot of sweat to
loyalty:                                           Customer complaints.                               push up our GEI one percentage point. Darrel
                                                   We welcomed them. No, seriously. They              Blomberg, our full-time guest enthusiasm
1. Hire the right people and train them well.      were opportunities to demonstrate we cared         coach (that’s not a joke title), labored two-
We showed everyone involved in hiring              about our customers. We even deep-sixed            and-a-half years to move it from 92.0 to
how to spot applicants who loved helping           the word “complaint” and replaced it with          98.2. Personnel knew every smile counted
people and making their day. But that was          “guest opportunity.” It’s said that the value of   - their compensation was partially based on
only the beginning. Good employees also            a person’s character is measured by how one        a mix of store, district, region and company-
need training and inspiration. We enrolled         deals with adversity. That’s also true of the      wide GEI.
new hires in a weeklong orientation where,         value of a company’s character. Employees at
among other things, I spelled out our mission      every level need the authority to do whatever      Tom Gegax served as chairman and
- “Deliver caring, world-class service to our      it takes to satisfy unhappy customers. Just        CEO of Tires Plus and is the founder of
guests, our community and to each other.”          as a broken bone comes back even stronger,         Gegax Management Systems. He can be
The focus of countless meetings, talks and         we often scored more points by appeasing           contacted at 866.210.2832 or by e-mail at
training sessions, as well as big chunks of        an upset customer than if the issue had been       tgegax@autosuccess.biz.


  10
JimAdams


                                                             The Road to 20
                                                  Cars a Month, Every Month
                      Have      you      ever    want to be. Get out a pen and paper. Write              of something that we need to accomplish.
                      heard the phrase           down: today, three months, six months, one              A crystal clear vision of where we are and
                      “experience is the         year, five years and 10 years. Our goals must            where we want to be is one of the many keys
                      greatest      teacher”?    be divided into professional goals, family              to success that we will explore in our goal-
                      This statement could       goals and life goals. My personal goals                 setting process. Writing and reviewing these
                      not be further from        include unit volume, grossing averages as               goals will instill in us the drive that we must
the truth. Other people’s experiences are        well as how many books I plan to read and               have to accomplish great things.
the greatest teacher. Learning from other        how much time I set aside to spend with my
people’s successes and failures is the key to    family. Money goals are the vehicle we use to           2. Professional goals: The first thing
professional selling.                            plan for the goals that really matter: Life and         professional sales people need to have is
                                                 family goals. If you are just earning money             a clear understanding that sales follow
Andy Andrews said that General Norman            for the sake of earning money, your life and            opportunities everywhere they go. To sell
Schwarzkopf, commander of the Allied             family goals will always go unfulfilled. Zig             more cars we must talk to more people. We
forces in the Gulf War, had a system of          Ziglar once said that when he died he would             know that the average sales person closes
advancing across a mine field that worked         leave as much money as Howard Hughes                    about 20 percent or one out of five of their
out pretty well for him. Walk toward the         left: all of it. Just start writing. What do you        total opportunity count. So let’s do the math.
explosions, because that is where the boys       want? Start with stuff. That is the easiest.            To sell 20 units a month we need to talk to
have already found the mines. Observing          I want a new car, a bigger house, some                  (20 units X five opportunities) 100 customers
behavior is one of the many keys to success      money in my savings account. I want a boat,             per month. If we work five days a week we
in this business. I have been the seven-car      a place at the lake and to take a vacation              will have 22 selling days which means we
sales man and the 30-car sales man and I         to the beach or to the mountains. Once                  need to talk to (100 customers divided by
have made my share of mistakes. However,         you get started, it comes pretty easy. That             22 days) 4.5 customers per day. The average
over the past 15 years I have learned and        is just stuff. Now dig a little deeper. How             commission including bonuses and factory
developed professional business practices        about spending 30 minutes a day reading to              spiffs is around $300 per car, which will give
that if followed will help you become a          your children or playing catch in the back              us a monthly income at 20 units of $6,000
professional in automotive sales. It is said     yard? Write it down. How about spending                 monthly or $72,000 annually. (See chart 1)
that 80 percent of the income in our business    two Saturdays a month on a date with your
is made by the top 20 percent of the sales       spouse or dedicating one hour a night sitting           Once we discover how many monthly and
people. This leaves the bottom 80 percent of     on the porch talking about anything but your            daily opportunities we need we are one step
the sales people fighting for the 20 percent      finances or the children’s activities? Write             closer to achieving our unit goal. If our goal
of the income left over by the true sales        it down. Tithing, community service or                  is 12 units a month, our focus is not on the
professionals. If you commit every day to        visiting home-bound elderly adults can all              12 units it is on the 2.7 opportunities that
following the steps of professional selling      be a part of your life and family goals. Many           we need today and everyday to achieve the
you will be amazed at how fast you can           of our goals take money. Most do not. I hope            goal. Sales follow opportunities everywhere
achieve great success in automotive sales.       you can see where I am going. If you write it           they go.
                                                 down it becomes an objective that we must
1. Have a goal, a clear vision of where you      look at on a daily basis and it is a reminder           Now let’s focus on where our opportunities
                                                                                                         come from. In our industry we have several
chart 1                                                                                                  sources of business. Fresh ups or walk-ins,
  Unit           Monthly Opportunity                          Daily Opportunity                          repeat owners or orphaned owners, new
  Goal                 Count                                        Count                                business or outside prospects, referrals,
                                                                                                         be-backs and phone-ups or phone-ins.
                       Units x 5 opportunities        Monthly opportunities divided by 22 working days
                                                                                                         Here is the good news. The factories and
   20          100 opportunities per month                 4.5 opportunities per day                     your dealerships spend billions of dollars
  units                                                                                                  a year driving fresh up or walk-in traffic
    19                          95                                         4.3                           to your dealership. The bad news is that at
    18                          90                                         4.1                           best the average closing ratio on a fresh up
    17                          85                                         3.9                           is about 10-12 percent. Which means your
    16                          80                                         3.6                           chance to sell a fresh walk-in is about one
    15                          75                                         3.4                           out of 10. Fresh up traffic is instrumental to
    14                          70                                         3.2                           your success in this business as long as you
    13                          65                                         3.0                           understand that it is not where the majority
                                                                                                         of your opportunity should come from. Take
    12                          60                                         2.7
                                                                                                         a look at the math. (See chart 2)
    11                          55                                         2.5
    10                          50                                         2.3
                                                                                                         Now, where do you want your business to


  12
continued
                                                                                 These are the questions you must answer
   Source of                Average Closing              Results
                                                                                 in order to put the goal-setting process into
   Business                      Ratio                                           motion. In part two we will explore how
     Fresh Up                    10 Percent             1 out of 10              to build daily activities to cultivate each
                                                                                 source of business to ensure that we meet
  Repeat Owner                   50 Percent              1 out of 2              our monthly opportunity goal. Remember
                                                                                 unit sales follow opportunity everywhere
      Referral                   50 Percent              1 out of 2              they go.
  New Business                   30 Percent             3 out of 10

      Be Back                    67 Percent             7 out of 10              Jim Adams is the general manager at
                                                                                 Roper Kia in Joplin, MO. He can be
    Phone Ups                    20 Percent             2 out of 10              contacted at 800.905.0627, or by e-mail at
                                                                                 jadams@autosuccess.biz.
chart 2
come from? It is clear to see that repeat and
referral business are much more productive



                                                DEALERS MUST BE
than fresh walk-in traffic. Here is the
bonus: Repeat owners are easier to close,
and commissions are generally higher. The
customer trusts you more and will allow you



                                                 ON TELEVISION!
to sell the value of the product. The more
value the customer receives, the higher price
he or she will pay.

As we set opportunity goals we must
predetermine on a monthly basis where our
opportunities will come from. Ask yourself
the following questions:
                                                 See why over 100 dealers nationwide have
 • How many fresh ups per day do I               INCREASED SALES MORE THAN 30% IN
   average?
                                                 LESS THAN 90 DAYS WITH TELEVISION!
 • How often do I contact my current
   owner base?
                                                                      We produce nearly 4,000 commercials
 • Does my dealership have a list of                                  a year from our studios. We give you
   orphaned owners, and how can I get
   my hands on it?
                                                                      unlimited, high quality television campaigns
                                                                      and promotions FREE. With computerized
 • Do I ask everyone I come in contact
   with for a referral? Do I know how to                              media buying technology, we buy television as
   ask for a referral?                                                much as 30%-40% more effectively than any
 • What daily activities do I have in                                 media buyer in the nation and give you
   place to generate new business
   contacts? Do I belong to any clubs or
                                                                      UNLIMITED TV CAMPAIGNS
   civic organizations that will help me                              AND PROMOTIONS!
   cultivate new business contacts?
                                                                      Call for a FREE demo tape and information.
 • How often do I follow up unsold
   prospects? Do I do a great job of
   getting names and numbers from
   every fresh up that I serve on the lot?
   Cell phones and e-mail addresses are
                                                          Larry John Wright, Inc.
   the two most important pieces of
   information you can get from your                      Automotive Advertising
   customer.
                                                “America’s Premier Automotive Advertising Agency”
 • Do I feel that I do a great job with



                                                1-800-821-5068
   incoming phone contacts? Am I
   relaxed, helpful and informative? Do
   I get the customer’s information and
   invite every phone up to the store or
   get the vehicle to the customer?


august 2005
                                                                                                                      13
DavidKain


                                                    E-mail Best Practices:
                                       Create an Effective Auto Response
                       Each week I mystery         team as professional and talented. This          a business card then you realize it should
                       shop dealership Web         conveys to the customer that the Internet        have your logo at the top. This identifies
                       sites to see how they       is a key connection to the dealership and        immediately who it is from and starts the
                       “greet” me online           the most visible person in the organization      brand-building process.
                       with     their    auto      wants to personally say hello. A well-crafted
                       response e-mail. The        message from the Internet manager/director       Step 4 – Keep it brief
auto response provides the first impression         or specialist works well too and helps to        Tell the customer as quickly as possible what
and is an effective way for me to determine        quickly establish them as the point person.      you want to tell them and don’t waste their
if they operate a productive Internet                                                               time. Graphics and bullet points work well
department. As sales people we are all taught                                                       and hold the customer’s attention better.
the steps to the sale during our first days of
training and the greatest emphasis is placed
                                                    Tell the customer                               Step 5 – Describe your process
on the initial greeting because it sets the         as quickly as                                   Some of the most effective auto responses
stage for the relationship.
                                                    possible what                                   use a 1, 2, 3-type process description to let
                                                                                                    the customer know it will be quick and easy.
Unfortunately, most auto response e-                you want to tell                                For example:
mails are not an effective greeting for the
dealership, and fail to arouse or motivate their
                                                    them and don’t                                     1. We are reviewing your request and
audience. Too often the e-mails are sent with       waste their time.                                     will contact you within one hour by
either too few or too many words and they
offer no guidance to the customer. A poor
                                                    Graphics and                                          phone or e-mail
                                                                                                       2. We will confirm your specifications
auto response is better than a slow personal        bullet points work                                    and schedule a time that is
response, even if the personal response is
enticing. Spend the time necessary to make
                                                    well and hold                                         convenient for your test drive
                                                                                                       3. During your test drive visit we
your first impression a great one.                   the customer’s                                        will provide your price, trade and

What is an auto response supposed to
                                                    attention better.                                     financing information right up front
                                                                                                          so you can decide if you want to
accomplish?                                                                                               purchase the vehicle
An auto response lets the customer know            Step 2 – Use a subject line that is relevant
what they can expect when they work with           to the customer                                  Step 6 – Provide a link to your Web site
your Internet department. In most cases,           People can receive a lot of mail from people     A link to your Web site is a great way to build
customers have submitted leads through             and companies they are not familiar. Normally    brand and to establish your dealership as a
third parties and have already received a          we screen the e-mail address and the subject     great resource for your customer. A simple
standard reply of some sort from that source.      line to see if they are safe and worthwhile to   mention such as: “You can visit our Web site
As a result, your auto response greeting           open. Since the lead you received typically      at www.kainautomotive.com 24/7 to review
should acknowledge that your dealership            comes from an aggregator of some sort that       our updated inventory and specials.”
will be handling the transaction. If your auto     may be providing you the customer from
response is just a brief note with no benefit       one of the lead sources they work with.          Step 7 – Sign it with complete contact
to the consumer then they may also regard          As a result, the customer may be surprised       information
follow-up responses much the same and not          to know a dealer will be sending them an         You have the customer’s attention at this
even open them. Don’t miss the opportunity         e-mail with their dealership name in the         point so make sure they know who they
to hit the ground running with an effective        subject line. If the customer is not expecting   are working with by signing it with your
auto response welcome that causes the              to see an e-mail from your dealership they       complete contact information. If the dealer
customer to want to open your follow-up            may not even open the e-mail so it is best       or GM is the sender make sure you include
e-mails.                                           to make it relevant to the consumer with a       who the customer will be working with and
                                                   generic subject line that says something like    endorse their expertise. Consider providing
Step 1 – Decide who you want to sign the           “Response to your online vehicle inquiry” or     a link with a map to the dealership for the
auto response                                      “Information regarding your Internet vehicle     customer’s convenience.
The auto response is designed to get the           request.” The customer will realize they
customer’s attention and welcome them to           asked for information on a vehicle online so
your dealership Internet process. If the dealer    the subject line is relevant and they are more
or the general manager is a well-known             likely to open the e-mail.                       David Kain is the automotive Internet
                                                                                                    training specialist at Kain Automotive Inc.
spokesperson for the dealership, it is a good                                                       He can be contacted at 800.385.0095, or
idea for the initial welcome to be from him        Step 3 – Use your logo                           by e-mail at dkain@autosuccess.biz, or
or her with a line endorsing your Internet         If you think of your e-mail like a letter or     visit www.kainautomotive.com.


  14
“Let’s make financing magic together.”




We’d love to meet with you to discuss how we can
help provide the best financing to your customers.
With our deferred-payment option, we’re quite sure
we can make you very happy.

Drop your local commercial DRM a line or call
1-877-TEAMBVF and make a date soon.                               A product of DaimlerChrysler Services

Jeep® is a registered trademark of DaimlerChrysler Corporation.
KirkManzo




                                                                  ... With Time to Spare
                      Managers may feel as         If you can only complete a limited number         need to be put on the schedule first. All other
                      though they need 27          of tasks, at the end of the day what is most      tasks (small rocks) then work around the
                      hours to accomplish          important? Sell cars; everything else pales in    daily events (large rocks).
                      all the tasks placed         comparison.
                      on them by the                                                                 The weekly strategy is similar. If you know
                      dealership. The idea of      This may seem obvious on the surface but          the deadline for payroll is Tuesday at noon,
multitasking is no longer a luxury, but rather     look at how you spend your time each day.         block out an hour on Tuesday morning to
a necessity or is it?                              You order cars from the factory, follow up        calculate commissions for your sales team,
                                                   with sales people on factory certifications to     and have another manager cover the desk
Too often a manager spends his or her time         qualify for their incentives, chase stips, deal   and floor from 9-10 am every Tuesday. If the
reacting to everyone else’s requests instead       with heat cases on the service drive, etc.        cut off for the newspaper ad is Thursday at
of training people on when and how to                                                                11a.m. and it takes 2-1/2 hours to set up your
schedule time with them.                           In order to help your dealer understand           ads, schedule 90 minutes on Weds from 1- 2:
                                                   exactly what it is that you do, and help you      30 p.m. and Thursday 9-10a.m. to meet the
There is one thing we all have in common.          get clarity as well, do the following. Each       weekly deadline. Stay consistent. Schedule
Each of us is provided with exactly the            manager should make a list of ALL the tasks       repetitive tasks so others can learn when you
same resources without regard for who you          that you are responsible for handling (as you     are and are not available to answer questions
are or where you work. We are all provided         understand it).                                   or help out.
with the same size bucket to begin each day.
As the day begins, your bucket is empty            The results of the exercise will often reveal     Follow the same routine for monthly tasks:
and throughout the day it fills up until the        obvious overlaps, two people addressing the       Schedule monthly sales people reviews
bucket is completely full allowing nothing         same tasks. This is counter-productive. For       for the first week of the month. Allow 30
else to fit.                                        example, assign one person to handle dealer       minutes per person, if you have more than 10
                                                   locates (hint: a sales person can be assigned     sales people, split the group over two days.
Now you could chose to allow other people          this task to free up managers for higher          People need to know you are serious about
to fill your bucket with things that may seem       value tasks).                                     maintaining a schedule of reviews every
important to them but are really not on the                                                          month, so pre-appoint for next month and let
top of your priority list. Or you could first fill   Areas that should be receiving attention, like    the sales person know exactly what day next
your bucket with those things that are most        recruiting, are often not specifically assigned    month and what time they will be meeting
important to your success today. The bucket        to any one person, yet it is the life blood for   with you again.
represents time. Its limit of capacity is the 24   continually upgrading your sales staff. Who
hours we each have to work with daily.             handles the daily one-on-one’s, the daily         A scheduling template is the best way to
                                                   training? Many of these large rocks (tasks)       help you fill your bucket with the large rocks
The bucket can become so full of little            get pushed aside because too many small           first allowing you to complete the repetitive
meaningless tasks that get you no closer to        rocks (tasks) get into your bucket and at the     tasks required to run the dealership and
your goals. The first thing you must do is          end of the day … well you just ran out of         create ample time to accomplish the most
place the large rocks (important tasks) into       room and time.                                    important task, sell cars every day!
the bucket, then place in the smaller rocks
as room allows. If some of the smaller rocks       Break your tasks list into three categories,      Believe.
(tasks) won’t fit into today’s bucket, they         daily, weekly, monthly.
will then need to go into tomorrow’s.
                                                   Daily events include save-a-deal meetings,
The first step toward taking control of your        one-on-one’s with sales people, assisting         Kirk Manzo is the general manager
schedule, your job and your life is to accept      F&I with CIT issues, reconciling with the         at Ziegler Supersystems. He can be
the reality that you will never finish ALL          back office to make sure we are getting paid       contacted at 800.858.6903, or by e-mail at
the tasks you want or need to do every day.        for what we already sold, etc. These events       kmanzo@autosuccess.biz.




                                                                                 SUMMITIII
                                        November 3 & 4, 2005
                                        MGM Grand                                                       BEST PRACTICES
                                        Las Vegas, Nevada
                                        Dealers & Managers Only
                                        See page 3 for more details


  16
MichaelYork


                                    If Your Business Closed Today,
                               Would Anyone Really Notice or Care
                        There’s just no place       Not everyone has 2.7 billion to throw at        that range from slow to terrible, the facts say
                        like Las Vegas. Seems       a giant hotel/casino/golf resort … or at a      otherwise.
                        no matter how many          dealership in Chattanooga, but everyone has
                        times you’ve been           ways of making the customer feel special for    If there’s nothing very special about your
                        there; there is still an    doing business here.                            work or the value or service you provide
excitement or anticipation when you make                                                            then you’re lumped in with all the other
that next trip. Flying into that oasis that still   Here’s the formula:                             roadside “motels” of the world in the eyes
looks like a mirage in the desert is great.         Whatever you sell is boring. And whatever       of the customer. And if another one of them
                                                    I sell is boring. Unless you or I make it       goes out of business today, would we really
When you see the strip and all those giant          remarkable in the eyes of the customer.         notice?
hotels and casinos, isn’t the first thing that       Unless the emotional experience they’re
pops into your mind something like “What            getting makes the money they spend less         But what if Starbucks or Harley Davidson
Las Vegas really needs is another giant             important than the experience or the story      or Disney World or Las Vegas closed
casino?”                                            they can’t wait to tell about you and how       tomorrow? Would anyone notice?
                                                    you did it.
No? Well that’s exactly what Steve Wynn                                                             You bet. And that’s the very reason it won’t
was thinking. And his vision is now a reality                                                       happen anytime soon. Because people notice
among all those other big name, big dollar
properties.
                                                     Here’s the                                     and love spending their money there. What
                                                                                                    makes you special or cool or valuable or
                                                     formula:                                       remarkable in the eyes of the buyer? And
The slick, black, wrap-around look of The
Wynn hotel, casino, shopping mall and golf
                                                     Whatever you sell                              if you can’t answer, that’s a great place to
                                                                                                    begin your radical improvement.
resort is the new color in the Vegas rainbow.        is boring. And
And even that doesn’t do justice describing
it. It’s almost beyond description.                  whatever I sell                                If all you’re doing is selling cars it can be
                                                                                                    all about price. But the feeling I get driving
                                                     is boring. Unless                              around Las Vegas in my convertible with the
You have to see it to believe it, and even then
it’s enough to stretch your belief system.           you or I make it                               top down and the sun winking at me from all
                                                                                                    those big shiny buildings doesn’t leave much
Every big name boutique you’d hope to find            remarkable                                     room in my imagination to remember how

                                                     in the eyes of the
from Rodeo Drive to Fifth Avenue has a                                                              much I paid to be here. Even if I can recall
spot on the Wynn walk of famous shopping.                                                           the number, it’s a small price to pay for this
People stand and gawk at a giant wall of water
in the gardens, and what it costs to furnish all
                                                     customer.                                      “emotional experience” that I couldn’t wait
                                                                                                    to tell someone about. And now I have.
the fresh flowers inside the hotel would be
enough to build most three bedroom houses.          Las Vegas knows the secret to this “NOW”        The reason the rich keep getting richer, as
                                                    economy. So does Steve Wynn. So do              they say, is because the rich keep doing the
It’s HUGE with a capital HU!                        Starbucks and Harley Davidson. So do            things that win in any economy, and the poor
(Hint: There’s a Ferrari dealership inside it.)     Oprah and Jimmy Buffet. So did Elvis.           (read: ordinary or average) keep doing the
                                                    Do you?                                         not-so-special things that nobody’s really
So why another casino in Las Vegas? It’s                                                            noticing. How excited are your customers
obviously not just another casino or hotel.         Are you creating an amazing experience          about what you do and how you do it? Want
It’s an emotional experience that people            for the prospective buyer who is almost         some better questions on how to improve
come to see and feel and tell others about.         always first a prospective looker? Are people    your “show”?
If you’re coming here you can save big              walking around talking about coming back
money by staying at an older giant hotel or         here to be a buyer? No one at The Wynn          If you want my short list on “Wynning”
some chain we’ve all heard. The rooms are           is trying to stop the “lookers” from leaving    in    this  “NOW”      economy,   visit
clean, OK, good price, practical, etc. Sound        without checking in today! Are you still        www.MichaelYork.com/autosuccess.
familiar? Low mileage, solid transportation,        worried about selling your “lookers” today
good price.                                         instead of creating such an attractive “show”
                                                    that they can’t wait to be back … and buy!
Where’s the emotional experience at your                                                            Michael York is an author and professional
                                                                                                    speaker. He can be contacted at
place for the consumer? Are they excited            This is the most sophisticated marketplace      800.668.5015, or by e-mail at
about becoming a customer? What will they           we’ve ever known. And while rumors and          myork@autosuccess.biz, or visit
say about you when they tell their story?           excuses lament today’s economy with labels      www.MichaelYork.com.


  18
august 2005
              19
fs       feature solution
                                                                                                                                BenElliott




                                                          The Real Deal
                                                      Pre-approval Sale
Direct mail has been around for some              General’s office a few weeks later about the       Under the new laws, with no firm offer
time and remains one of the best ways to          validity of the pre-approval offer turns a bad    of credit, pre-approval sales have created
fill showrooms with people. At first, mail          sale into a potential nightmare.                  problems for dealers around the country.
piece recipients were chosen by zip code or                                                         Fortunately, there are now programs
distance from the dealership. Through the         In reaction to these issues, pre-approval sales   available though partnerships between
years the selection process has become more       are changing. Compiling the list of people        direct mail companies and lenders that can
precise. Dealerships now select recipients        who are to receive a pre-approval mail piece      truly grant legitimate pre-approvals. Every
based on income level, lease termination          is now done differently. Customers are still      customer that receives a pre-approval letter
date, college graduation, bankruptcy, home        selected based upon their credit, but now         is approved. By utilizing a pre-approval sale
ownership, and most important, credit. Credit     more care is taken to make sure that all          program that truly guarantees the approvals,
allows a dealership to only send mail pieces      required credit criteria for approval are met.    dealers can not only eliminate headaches, but
to customers that fit the financing programs        In bold print the mail pieces now clearly         sell far more vehicles to far more people.
available to the dealership. Moreover, mail       state income requirements that may affect

                                                                                                    Finally a real pre-
pieces can be designed with offers that           the pre-approval.
appeal to the selected demographic. The
offers made in mail pieces have become                                                              approval sale where
more and more aggressive attempting to             Over the past 30                                 they really buy
convince customers to visit dealerships.           years of running                                 the paper! Until
Pre-approval sales have grown in popularity
                                                   some of the largest                              now, nobody has
over the last several years. Dealers have          GM and Ford                                      guaranteed to fund
blanketed their markets with mail pieces           operations in the                                every contract that
bearing messages like, “Bad Credit,                country and as a                                 walks through the
Divorce, No Credit, No Problem. You are
PRE-APPROVED at Somewhere Motors.”
                                                   dealer myself, I                                 door with a pre-
These messages are extremely appealing to          have used every                                  approval mail piece.
the credit-challenged, and many respond.           direct mail company
                                                                                                    - Robert Register, Tony Moore
Unfortunately, a high percentage of these          in the nation … if I                             Automotive in Huntsville, AL.
                                                   haven’t used them
people who were lead to believe that they
were pre-approved are no longer approved
when they reach the dealership. This is            I have at least been                             A second benefit of a real pre-approval
counterproductive for everyone involved.           pitched by them,                                 sale is the additional sales and gross profit.
The customer is upset because he/she wasted
                                                   and I have Þnally                                Consider a 5,000 piece pre-approval sale
$10 in gas and his day off to visit your store.                                                     without a firm offer of credit. If 2 percent
The sales person is upset because him/her          found a real pre-                                of the people who receive the mail piece
customer couldn’t get approved. And you,           approval sale with                               visit the dealership, there will 100 ups.
the dealer, just had 100 people in the store       300up Promotions.                                Unfortunately, only half will qualify, so
from a 5,000-piece campaign and less than                                                           even with a 25 percent closing ratio on the
half even qualified to buy a car. This is not       - Earl Hudson, Earl Hudson Buick                 50 qualified ups there will only be 12 sales.
where it ends. A phone call from the Attorney      Pontiac GMC in Shelbyville, TN.                  Now consider the same 5,000 piece pre-




  20
approval sale with all 5,000 pieces going to
people who qualify. With the same 2 percent
return and the same 100 ups, the results are
doubled. Now all 100 ups are guaranteed to
qualify, so closing 25 percent will now result
in 25 sales. Using an average gross of $2500
per copy, the guaranteed pre-approval sale
will gross $62,500. That is an additional
$32,500 over the pre-approval sale without          5000 Piece Mailer
the guarantee.                                                                                                        Traditional Method

 When choosing a                                         Ups
 company to partner
                                                                                                                                        100


 with for direct mail,                               Ups that
 the three most import                                Qualify                                   50

 things to consider are.
 1. The validity and                             Sales at 25%
 legality of the offer; it                              Close        12

 is important to have a                                          0   10   20        30   40      50       60     70       80      90        100
 real deal pre-approval
 sale.
 2. Customer service
 is king. A partner in
 direct-mail marketing                                                                                                 Improved Method
 must be able to
 respond quickly and                                     Ups
                                                                                                                                        100
 effectively.
 3. The price is also                                Ups that
 important. The better                                Qualify                                                                           100

 the price, the greater
 return on investment.                           Sales at 25%
                                                        Close                  25

 - Keith Sheldon, GM Courtesy
                                                                 0   10   20        30   40      50       60     70       80      90        100
 Chevrolet Sonic Automotive
 Group in Atlanta, GA.

By partnering with a direct mail company
that can guarantee the approval of every
customer that walks into your dealership                                                                                       Gross ProÞt
holding a mail piece, your dealership can
avoid the problems created by the new laws         Traditional
governing pre-approval sales, sell more cars          Method                   $30,000

and improve ROI at the same time.
                                                    Improved
Ben Elliott is the president and CEO of
                                                      Method                                          $62,500

300 Up Promotions. He can be contacted
at 866.319.7337, or by e-mail at                                 0   10   20        30   40      50       60     70       80      90        100
belliott@autosuccess.biz.                                                                 Thousands of Dollars




august 2005
                                                                                                                                       21
TonyDupaquier




                                                                                         And You Are ...
                       If a customer comes       unable to read any coded information.
                       into a store and buys                                                      It is the responsibility of the dealership to
                       a vehicle with a          At the same time, the customer’s information     conduct its own identity theft prevention.
                       stolen identity, who is   is instantly run through the most current        Banks and lenders are not responsible for
                       at fault? The person      Specialty Designated National’s (SDN) list,      ensuring the identity of a customer and do
                       perpetrating the crime    which is required of all U.S. businesses to      not perform any background checks because
is at fault – there is no doubt about that.      ensure they do not conduct business with         the majority of banks allow their computer
However, the bigger question becomes, who        anyone on the registry.                          systems to approve loans based on an
is responsible for the loan? The dealership.                                                      algorithm, not human verification.
                                                 As part of the process, it is recommended to
If this situation has not yet happened to you,   swipe the customer’s license prior to the test   High-tech methods are not the only way to
be prepared to send a lender a check or two      drive. If no information is found on the back    deal with today’s fraudulent customers and
when it does. No section of the country or       of the card, a dealership may not want this      employees. By installing a few policies,
type of franchise is immune to this rampantly    person to test drive a vehicle for the sake of   a dealership can reduce its risk; however,
growing problem.                                 the sales person’s security.                     someone must inspect these polices on a
                                                                                                  continuing basis.
On TV, seemingly every week, the news
reports on corporations losing customers’          High-tech                                      For starters, become very familiar with the
personal information or thieves hacking into
computer systems. In June, a sales person          methods are not                                driver’s licenses and identification cards
                                                                                                  issued in your state. Many states have a
at a dealership in Texas was arrested for          the only way to                                guide that you can get from the Department
switching the identities of customers who
had bad credit with the identities of people       deal with today’s                              of Transportation that will help identify false
                                                                                                  cards. Always have a copy of a customer’s
who had good credit, and the customers were        fraudulent                                     driver’s license in your permanent files for
100 percent unaware of the situation.
                                                   customers and                                  further reference. A copy of the customer’s
                                                                                                  Social Security card or other identification
You and your dealership must take action           employees.                                     that displays this number should be in every

                                                   By installing a
now.                                                                                              deal jacket.

There are several avenues a dealership             few policies, a                                Require proof of income. This may be the

                                                   dealership can
can take to prevent identity fraud. It is                                                         lowest-tech method of checking identity
important to note, though, that once a                                                            available. In many identity-theft cases,
program is installed, it becomes everyone’s
responsibility in the dealership to ensure
                                                   reduce its risk;                               the thief used people with good credit that
                                                                                                  would ensure an “instant approval” from
compliance.                                                                                       most lenders. When a sales manager or
                                                 Once the customer has agreed to purchase         business manager sees that a credit score
The easiest way to ensure a customer’s           a vehicle, the business manager or sales         is high enough for approval, it becomes an
identity is to use an online service that        manager will look up the customer and            instant contract. If a lender does not require
electronically verifies personal information.     insert his or her Social Security number         proof of income, most business managers
One such service is Valid Auto, which is by      into the system. Once this is done, the          will not ask for it. It is time for this practice
far the most advanced product in the industry.   information is verified on many levels. The       to change in response to the identity theft
The company started in the banking industry      program starts by verifying the customer’s       problem. Even if a thief does have a Social
and in the past year expanded to meet the        name, surnames, middle and maiden names.         Security number and an ID to back up the
needs of the automotive market.                  It also goes though an extensive background      name being used, what other documentation
                                                 check of the customer’s current and previous     do they have available? Chances are, a thief
What makes this program so effective             addresses, and it determines if the birth        cannot offer up a paycheck stub to verify the
in the prevention of fraud is the way the        date entered matches other data systems          income he or she is claiming on the customer
information is entered into the system and       with similar information. Furthermore, the       statement.
the measures it goes through to ensure           program checks to see if the person is using
a person’s identity. Using a scanner and         a Social Security number from a person who       Dealerships have the ability to cover their
an online connection, the system reads           is deceased – a common ploy among identity       assets with simple polices enforced by
the magnetic strip on a driver’s license to      thieves.                                         everyone.
pull a customer’s information – and even
employees’ information, as well. Should a        If all checks out, the system gives a clear      Tony Dupaquier is the director of
                                                                                                  F&I training for American Financial &
person attempt to present anything other than    status on the customer. If a red X appears,      Automotive Services Inc. He can be
an authentic identification card, a red flag       further investigation is required before         contacted at 866.856.6754, or by e-mail at
will be raised instantly when the computer is    contracting this customer.                       tdupaquier@autosuccess.biz.


  22
ScottJoseph


                                                           How to Really Maximize
                                                        an Employee Price Program
                      Last month, I promised    If you did chose to ignore them then the next     profits by almost 100 percent by retaining
                      you an article on how     question is, why?                                 an additional 5 percent of your customers.
                      to drive traffic into                                                        Simply cutting defections in half will more
                      your showroom during      You have invested a small fortune to attract      than double the average company’s growth
                      your slowest days of      and earn your customers’ business. Assuming       rate.
                      the week.                 they will automatically come back to you is a
                                                critical mistake.                                 The most successful offers any direct mail
Every now and then something comes along                                                          company can create are offers that are
and you have to make adjustments - that time    The numbers never lie. Thirteen percent of        real, believable, credible and factual. The
is now!                                         your very satisfied customers defect every         employee pricing programs are exactly that.
                                                year. In a typical company today, customers
Right now many of you just experienced          are defecting at a rate of 10 to 30 percent       Think about it for a second. The reason
dramatic increases in showroom traffic due       per year. Sixty to 80 percent of customers        employee price offers work so well has
to the employee discount programs offered       who defect to your competitors indicate that      nothing to do with the actual money
by the Big 3 manufacturers (at the time I       just prior to their defection they were either    involved. In some cases customers could
wrote this, all the employee price programs     satisfied or very satisfied. On average, U.S.       actually save more money with previous
were set to end on Aug. 1). So now that your    companies now lose half their customers in        rebate offers. Perception is critical. Most
traffic challenge was temporarily solved and     five years.                                        consumers believe that employees always
the manufacturers experienced nice market                                                         get the best price.
share gains, the real question is, what did     The reality is that 70 percent of the customers
your dealership do to protect its previous      lost defected due to a lack of attention or       So, if your manufacturer is continuing to
customers from the onslaught of ads targeted    interest.                                         offer an employee pricing program, then
toward them from your direct competitors?                                                         immediately take steps to protect your
If your answer is nothing then the short-term   How is your offer better than your direct         store’s most valuable asset - your previous
focus for your store may have cost you a lot    competitor’s? Why should these previous           customers. If your manufacturer is not
more than what you think you gained. The        customers or potential future customers           making these offers, you can still benefit
next question is, what can you do from this     give you the opportunity to earn their            by creating an offer that gives consumers a
point forward?                                  business again? Do you really think a good        chance to buy a vehicle for a price as if they
                                                satisfaction rating is enough? Customers can      were an employee of your dealership.
You had a supreme opportunity to                be satisfied and not loyal.
dramatically effect one of the only three                                                         If the Big 3 decide not to extend the offers
ways to grow your business - grow your          The bottom line: regardless of your               past Aug. 1, then what do you plan to do
customer base. You had a choice to make.        satisfaction rating you must give your            to keep your traffic levels high? If the
You could sit back and try to capture a lot     customer a reason to come back into your          employee price programs proved anything
of new business or you could have focused       store and buy again. Direct mail is the most      it is that a great offer and good advertising
on your previous customers simultaneously.      cost-effective way to reach your previous         can generate a lot of traffic. Consumers have
Think about it - if you added an additional     customers - in fact it is one of the only ways.   become callous to rebates. It’s nice to see
25 to 50 new customers in July but 25 to 50     I’ll give you a few stats: 56 percent say         the manufacturers doing what direct mail
of your previous customers decided to buy       receiving mail is a real pleasure; 55 percent     companies have promoted for years - an offer
from your direct competitor, you haven’t        look forward to discovering the mail they         that is real, but more important, an offer the
grown at all.                                   receive; and 67 percent feel mail is more         customer actually gets excited about.
                                                personal than the Internet.
From the very moment GM, Ford and                                                                 Everyone knows the value of keeping
Chrysler announced its employee pricing         With direct mail you can make offers your         customers. My hope is that all of you made
program, our business from their dealers        competitors can’t. If your customer can get       the decision to protect your most important
nearly doubled. I’m not naïve, and I’m sure     the employee price from any competing             asset – your previous customers – during this
J&L Marketing Inc. is not the only direct       dealer then why should they visit you? With       outstanding marketing campaign. If not, then
mail company who has experienced this           direct mail you can offer several reasons:        it’s not too late. The next question you need
surge in business. Which brings me to my        chance to win cash or a new car, higher trade     to answer is, what can you do right now so
point - dealers were doing everything in        amounts, a free gift as a thank you for the       your customer gives you another opportunity
their power to take advantage of this offer     opportunity, etc.                                 to sell them a car today? You can start by
and make sure these customers visit their                                                         giving them a believable, credible and
showroom. With the increase in advertising      Plus, if you do have a great customer             factual reason they should and the rest is
out there, whether you like it or not, your     satisfaction rating then just asking them to      simple – ask them to buy again.
customers were getting bombarded with           give you the opportunity may be enough.
every kind of advertising imaginable.           Remember, 70 percent of the customers lost
                                                defect due to a lack of attention or interest.    Scott Joseph is the president of J&L
Did you get caught up in the excitement of                                                        Marketing Inc. He can be contacted
all the “new” traffic and ignore your most       Once again the numbers don’t lie. According       at 866.429.6846, or by e-mail at
important asset – your previous customers?      to Harvard Business Review, you can boost         sjoseph@autosuccess.biz.


  24
CarolMartin-Ardell




                        Steering Out of Control
                       If you have ever              those of your employee.
                       noticed an overall
                       decrease     in    the      • Find  common        ground          when
                       enthusiasm of your            communicating to others.
                       staff, it may be their        You don’t want to speak a language no
                       way of exhibiting             one else understands. Whether you’re
stress. Experts agree that tardiness,                reserved or animated, you’ll need to
absenteeism and negative attitudes spike             find ways to connect with all of your
when employees feel stressed about their             employees -- even those who are very
job. Stress almost always leads to some              different from you. Also consider the
form of bad judgment, apathy, injuries or            individual personalities of your team
poor health. It can take down even the most          members before taking on someone
unflappable individual.                               new. Feelings of resentment and
                                                     demoralization are sure to follow if one
Ensuring that each member of your team               person clearly does not fit in or can’t
is working under acceptable conditions can           relate to what others say.
ease anxieties. Differences in individual
characteristics like personality, work             • Assess your own work pace.
pace and level of assertiveness must be              If you tend to be quick, chances are
considered when predicting whether certain           you’ll want staff members who can
job conditions will result in stress; what is        keep up with you, deal with changes
stressful for one person may not be stressful        and stay flexible when it comes to
for someone else.                                    juggling priorities. However, if you’re
                                                     the type who doesn’t believe in rushing
Stress can be caused by poor communication           and tends to systematically tackle one
between a worker and a superior. Some                task at a time, you’re bound to expect
managers sometimes assume that each                  the same of your employees.
one of their staff members is comfortable
directing himself or herself. While some           • Predetermine how much assistance
subordinates might be self-sufficient, others         you’re willing to give an employee.
may seek direction and guidance; many                People acclimate to their responsibilities
want their leader to be available to answer          and environments in various manners
questions or point them in the right direction       and at various speeds; some are more
when problems arise. Confusion about the             willing than others to take risks.
expectations of a manager versus the needs           Remember, though, that mistakes
of an employee will cause stress.                    and wrong decisions can sometimes
                                                     be made when individuals try to take
If you are the type who focuses on end results,      matters into their own hands. Can you
thinks for yourself, acts independently and          deal with imperfection?
expects others to do so as well then look for
workers who are self-governing and not so         When people are feeling stressed on the job,
timid or meticulous that they must be walked      their behavior often becomes uncharacteristic.
through everyday situations.                      The gregarious, enthusiastic worker who
                                                  normally charms everyone might suddenly
If you tend to control the details of most        seem outspoken -- talking first, thinking later.
situations and prefer to keep everyone on a       Your ambitious, assertive sales person might
short leash, avoid taking on employees who        transform into a bold, overly aggressive
crave freedom and want to resolve their own       competitor, someone who intimidates people
dilemmas. Be prepared to loosen up your           or bullies them around. Watch for these
management style when trying to see eye to        behaviors, and be assured that if you have
eye with a freedom-loving subordinate.            some insight about your employees, you’ll
                                                  be able to manage them more effectively and
Try these tactics to help decrease everyone’s     reduce environmental stress.
stress on the job:

 • DeÞne each subordinate’s role.
   Be sure each employee knows what you           Carol Martin-Ardell is a senior consultant
   do and do not expect. This will avoid          with the Omnia Group. She can be
   confusion and help to steer off any            contacted at 800.601.3216, or by e-mail at
   conflicts between your objectives and           cmartin@autosuccess.biz.

august 2005
                                                                                                    25
AnthonyHall




                                                                                                  Fact Finding
                        Facts lead to more        Broad questions:                                vehicles. To make sure we find the one that
                        sales and more profits.    They give the customer the latitude to speak    is best for you, is it OK if I get some basic
                        You’ve heard this         freely as they usually require a descriptive    information?
                        saying, “Information      answer. Psychologically, it is a good idea
                        is power.” This is one    to begin with broad open-ended questions        Circumstance questions:
                        of the keys to success    since the customer’s response will provide      Do you use your vehicle for work? Do you
in sales. Facts will:                             you with his or her’s frame of reference.       tow a lot?

  •   Predict objections                          Examples: “Tell me about the vehicle you        You should always begin with broad
  •   Eliminate objections                        are driving?” Or, “What brought you to the      questions because you want to establish
  •   Help better overcome objections             dealership?” Also “Why are you looking to       the customer’s frame of reference, if broad
  •   Find out what is really important to        replace your vehicle?”                          questions are not effective, you must switch
      the customer (hot buttons)                                                                  to narrow questions but remember getting
  •   Show that you have a true interest in                                                       the customer to provide relevant information

  •
      the customer’s wants and needs
      Build better rapport                         The key is for you                             is the purpose of the interview. To find areas
                                                                                                  of need, the customer must tell you what he
  •   Personalize the presentation                 to listen during                               or she needs. Such as who, what, where,
  •
  •
      Help with better vehicle selection
      Eliminate misunderstandings                  the sales interview.                           when and why.

  •   Establish control                            Listening enables                              A sales person must avoid asking the

The key to fact finding is effective                you to identify                                following questions because they will lead
                                                                                                  to negative responses and loss of control!
questioning skills, backed up by active            beneÞts from
listening. The questions we ask and how we
ask them are essential to fact finding.             what you hear.                                  •
                                                                                                   •
                                                                                                     Would you like to drive the car?
                                                                                                     What color do you desire?
                                                   The sales person                                • Have you been shopping?
The purpose of questioning is to develop an
awareness of the customer’s actual needs           often wants to sell                             •
                                                                                                   •
                                                                                                     What have you been offered?
                                                                                                     What do you think your trade is
and priorities. All too often, sales people        by doing all the                                  worth?
have a tendency to do all the talking and
little or no listening. The key here is if the     talking.                                        • Would you take?
                                                                                                   • What is it going to take to do business
salesperson is doing the talking, he/she never                                                       today?
finds out what is important to the customer.
Don’t make the mistake of trying to sell what     Narrow questions:                               The key is for you to listen during the sales
you think is important rather than taking the     They are direct; they guide the customer to     interview. Listening enables you to identify
time to find out what is important to the          a specific topic or need that the customer       benefits from what you hear. The sales
customer!                                         may not have considered previously. They        person often wants to sell by doing all the
                                                  usually are answered in one or two words        talking. This could be the biggest mistake a
The objective of questioning is to enable us      and are particularly effective when the         sales person makes. Ask questions and listen
to lead the customer to conclusions that are      customer is not very talkative. By directing    for needs and then turn features into benefits
positive and consistent with our purpose as       the sales presentation through the use of       through the listening skills you’ve learned.
opposed to giving the customer conclusions        narrow questioning, you are able to receive
that are not his own. All of us can relate to     vital information about the customer’s          Customers want you to help them buy!
the fact that we much more readily accept         needs. (Danger: Narrow questions thrown at
our own ideas than someone else’s.                the customer in rapid fire succession tend to    I’ve seen sales people sell cars and buy them
                                                  be intimidating and cause the customer to be    back by running their mouth.
While questioning in itself is not difficult, it   on the defensive!) Narrow questions should
requires some discipline because it represents    be used to direct the customer’s attention to   God gave you two ears and one mouth use
a departure from our old established ways of      a specific area of need or conversation, and     them in proportion.
doing things. With effort and practice, you       to promote agreement.
will be amazed at how well the customer
responds to your showing an interest in him       Example: “It sounds like reliability is an
or her by asking the right kind of question.      area of importance to your decision, is that
Remember, we all like to talk about what is       correct?”
important to us.                                                                                  Anthony Hall is a training consultant
                                                  Permission questions:                           at Ziegler Supersystems. He can be
There are two types of questions we will be       Would it be alright if I ask you a few          contacted at 800.610.9047, or by e-mail at
working with, they are broad and narrow.          questions? We offer a wide variety of           ahall@autosuccess.biz.



  26
SeanWolfington


                                                               Is it Marketing, the
                                                       Manufacturer or Leadership
                      Take a look at your        A leader in the automotive industry emerges      will immediately buy into a radical vision,
                      dealership,        think   from being able to identify and serve the        and some will join the show much more
                      about other places         fundamental needs, aspirations and values of     slowly than others. The leader takes every
                      you’ve worked and          the customer. Leaders engage their customers     opportunity and will use whatever works to
                      other     organizations    and their stakeholders by: developing a          convince others to own the vision.
                      you know and ask           vision, selling the vision, finding a way         In order to create followers, the leader has to
yourself what is it that fuels their success?    forward and leading the change.                  be very careful in creating trust. The personal
Is it market conditions? Inventory mix?                                                           integrity of the leader is a critical part of the
Franchise number and type? Number of             Developing the vision                            package they are selling. In effect, they are
rooftops? Marketing strategy? While there        Leadership starts with the development of a      selling themselves as well as the vision.
are many factors that contribute to whether      vision, a view of the future that will excite
a dealership will thrive or flounder in the       both employees and customers. This vision        Finding the way forward
industry today, it’s leadership (or lack         may be developed by the leader, by the           To adapt and thrive in the ever-changing
thereof) that will make or break a store.        senior team or may emerge from a broad           automotive industry, the leader is constantly
                                                 series of discussions. The important factor is   seeking the way forward. Some leaders
Leadership is about implementing new ideas.      the dealer and the leadership team buy into      know the way and simply want others to
Whether you’ve been in the business five          it completely.                                   follow them. Others do not have a ready
years or 50, leaders learn quickly that it’s                                                      strategy, but will happily lead the exploration
important to continually change themselves.      Selling the vision                               of possible routes to success in bringing the
They stay flexible and seek to continually        It’s not enough to create the vision; you have   vision to life.
improve themselves and those around them.        to sell it. Selling the vision isn’t something
Leaders appeal to higher ideals and values of    that happens once and bam it’s sold. Instead,    The route forward may not be obvious and
followers. In doing so, they model the values    a leader finds that he or she is constantly       may not be plotted in details, but with a clear
themselves and use charismatic methods to        selling and reselling the vision. This takes     vision, the direction will always be known.
attract people.                                  energy and commitment, as few people             Thus finding the way forward can be an
                                                                                                  ongoing process of course correction.

                                                                                                  Leading the charge
                                                                                                  The final stage is to remain up-front and
                  These People Are Bad.                                                           central during the action. Leaders are always
                                                                                                  visible. They show by their attitudes and

                  That's Good.                                                                    actions how everyone else should behave.
                                                                                                  They also make continued efforts to motivate
                                                                                                  and rally their followers.
                   People with bad credit aren't always bad people. They
                 can be really good if you know how to find and process
                                                                                                  It is their unswerving commitment as much
                 them. Last year we handled over
                                                                                                  as anything else that keeps people going,
                 2,500,000 Sub-Prime leads with                                                   particularly through the darker times when
                 our VOISYSTM Loan By Phone,                                                      some may question whether the vision can
                 Direct Mail and Internet                                                         ever be achieved. The leader seeks to infect
                 programs. We guarantee our                                                       his or her followers again and again with a
                 programs, performance and                                                        high level of commitment to the vision.
                 results 100%.
                   Call us now and learn                                                          One of our goals is to help dealers clarify
                 how we can help you                                                              their vision, sell it to those around them and
                 with Sub-Prime                                                                   create a tactical plan to move the dealership
                 prospects. You'll do                                                             forward. We leave it to them to lead the
                 a better job and                                                                 charge, and as a result, they find themselves
                 generate extra profits!                                                          selling more cars, making more money and
                                                                                                  having more fun while the competition is left
                 Good is good.                                                                    in the dust.
                 Bad can be awesome.




                 1-800-438-8642
                 www.voisys.com                                                                   Sean WolÞngton is the owner of
                                                                                                  BZResults.com. He can be contacted at
                 “We're the car guys helping car guys!”                                           866.802.5753, or by e-mail at
                                                                                                  swolÞngton@autosuccess.biz.


  28
RandyBarone


                              New Software Steps Up
                              Pre-Owned ProÞtability
                      You can experience an      This is achieved with specially designed
                      increase in efficiency      software that provides a history of prior sales
                      and more strategic         on a particular model, which helps make the
                      management of your         customer more confident about purchasing
                      pre-owned business         the vehicle, as well as the transaction
                      with technology that       process overall. Because you have been
will help you reach a greater profit potential.   able to obtain highly accurate appraisals,
New software systems can now minimize            your customers feel more confident about
the margin of error on such transactions as      their decision at point of sale. Many
appraisals and trade-ins, and give you the       new versions of the software also offer
tools you need to make the best inventory        integrated CARFAX® reports that not only
decisions for your market.                       appeal to customers, but protect you from
                                                 unmentioned vehicle damage, as well.
Getting the right inventory
                                                                                                     we’re this close to a cure
How do these software packages achieve           Your appraisal process becomes streamlined
all of this? First, by enabling you to make      to ensure a consistent presentation to
the right offers on the right vehicles to        customers every time. “Appraised vehicle
ensure that your inventory has the greatest      sheets” reflect professionalism and integrity
appeal to potential buyers. This enables your    -- qualities that customers will connect with
dealership to sell more new cars and gain        your dealership and subsequently discuss
even more customers.                             among their families and friends. It’s a way
                                                 to generate substantial referrals and repeat
                                                 business with a click of a mouse.
 If a customer comes
 to a dealership                                 Another important advantage is in terms of
                                                 compliance for your dealership. It is the
 looking for a speciÞc                           most fair and accurate appraisal process
 car that is not on                              possible. If a customer decides to “private
 the lot, they don’t                             sell,” the market data provided on similar
                                                 vehicles enables you to present fact-based
 have to be turned                               appraisals as an added benefit for them.
 away. You can scan
                                                 Empowering dealer groups
 inventory at different                          For dealer groups with inventory sharing
 locations and give                              and multi-store supervision, the software
                                                                                                                            Juvenile        Diabetes

 them what they want.                            provides added empowerment. If a customer
                                                                                                   Mary Tyler Moore
                                                                                                                            affects     millions
                                                 comes to a dealership looking for a specific       International Chairman   and causes long-
                                                 car that is not on the lot, they don’t have to    term complications like blindness
The software’s appraisal tools make it less      be turned away. You can scan inventory at
likely you will lose sales to a competitor       different locations and give them what they       and kidney failure. Not to mention
because you didn’t offer enough on trade-in      want. Also, your appraisers are alerted if        pain and worry no kid should have
value. The software also creates an ideal        the customer received an appraisal at an          to live with. But we’re closer than
inventory model that is customized for           affiliated dealership.
your dealership. This model indicates the                                                          ever to a cure. Your help makes
best inventory to stock on the lot, and gives    You also can exchange vehicles that are           life-saving research possible. Call
you accurate information on which vehicles       not likely to sell on your lot for ones that      1.800.533.CURE                      or      visit
turn faster and make the dealership the most     are. The system can be set up to enable
                                                                                                   www.jdrf.org.
profit. The software takes the guesswork out      groups to track “true” inventory time as a
of deciding which trades to keep and which       vehicle moves to associated group locations.
to sell on the Internet, as well as which        Still another advantage is the ability to
vehicles to trade and which to send to an        reduce wholesale losses significantly, while
auction.                                         increasing retail unit sales and profit.

Driving customers to your pre-owned
showcase
Once the software has given you an ideal         Randy Barone is vice president of sales at
inventory model, and the inside knowledge        American Auto Exchange Inc. a subsidiary
and information on how to build that             of JM Family Enterprises. He can be
inventory, you can quickly enhance customer      contacted at 800.901.3017, or by e-mail at
relationships and increase your sales.           rbarone@autosuccess.biz.

august 2005
                                                                                                                                                   29
MarkTewart




                                                                     The Champion Coach
                      Great managers view            poor results. Managers and coaches can’t           demonstrate. If the player believes the process
                      themselves as coaches          give a process to their players and expect         can be executed properly and has evidential
                      more than managers.            the process to work without consistently           proof that his or her coach or someone else
                      There is an old adage:         motivating and leading the players in the          can do it in the way that is expected, the
                      “Lead people and               system.                                            player will emotionally buy into the process.
                      manage things.” There                                                             The coaches must get the commitment or
is a fine line between creating and utilizing         Think of your process like a machine. A            buy-in for anything to work. Therefore,
systems and processes and micromanaging              machine is created to perform the desired          coaches must have the trust and respect of
details without emphasizing the power of             function. Once you create the machine, you         the players. There is also a second part of
personal interaction.                                test it and know it will work. It fails when the   the demonstration that must take place. The
                                                     mechanics of the machine break or when the         demonstration phase should move from the
Good systems and processes should allow              operator has an error in operating the machine.    coach demonstrating to the player to the stage
employees to raise their performance by              Your business process is much the same.            where the player performs the functions with
giving them confidence in their direction                                                                close direction and inspection of the coach.
and lessening the burden of the manager              When you integrate a player into a system,
and coach from having to constantly inform           you must explain what they are to do. Next,        The last step of the implementation is never-
people of their expected actions.                    a coach must explain why the player must           ending. This stage is continual coaching
                                                     perform the tasks required utilizing the           and inspection. Players must know they
The problems and obstacles for mangers and           desired process. When the why gets strong,         are continually being coached, inspired and
coaches happen when the process is elevated          the how gets easy. If a player is clear about      reviewed in their performance.
over the players who utilize those systems and       the why, the process will be performed with
                                                                                                        Recently, my daughter Erin secured a
an improper implementation training process          maximum results.
                                                                                                        summer job after her first year in college.
is used. Great systems with poor people make
                                                                                                        She is employed by the J. Alexander chain
for poor results. Great systems tied to poor         The third step is to demonstrate how the
                                                                                                        of restaurants. The process employed by J.
coaching of people in the system results in          tasks and process work. Don’t just tell –
                                                                                                        Alexander’s is not only a good reference
                                                                                                        point for the steps of coaching that I have
                                                                                                        mentioned, but is a reference for excellence.
                                                                                                        Erin was interviewed and profiled by
                                                                                                        three different managers on three different
                 Keep your customers                                                                    occasions. When Erin was hired, she had to
                                                                                                        complete detailed training that would make
                 for just pennies a day.                                                                many businesses green with envy. Erin had
                                                                                                        to train with a study guide consisting of more
                                                                                                        than 100 pages. Erin had to pass six written
                                                                                                        tests just to begin serving as a waitress or as
                                                                                                        they are called in their culture – champions.
                                                                                                        She had to be able to recite the company creed.
                                                                                                        Further training and testing was required to be
                 Loyalty DriverTM by             .                                                      able to serve on the weekends, which are their
                                                                                                        busiest days. Before being released to begin
                 is email marketing made
                                                                                                        her position, Erin had to shadow another
                 easy. Your own customized                                                              trained champion and then switch and have
                 e-newsletter with profes-                                                              the experienced person trail her. Both Erin
                                                                                                        and I were amazed at the commitment to
                 sionally written content
                                                                                                        process, training and implementation.
                 and sophisticated report-
                 ing including our unique
                                                                                                        Remember, the processes and dedication of
                                                                                                        J. Alexander’s produces a champion who
                  buy signal allowing you to                                                            can serve and produce an experience that
                 know when your customer                                                                is measured in small dollars. Your business
                 is ready to buy.
                                                                                                        may produce a product and experience that is
                                                                                                        measured in many thousands of dollars. Based
                                                                                                        on your process, training, implementation and
                                                                                                        coaching, are you a coaching champion?
                            CONTACT US TODAY
                         at 866-964-NEWS (6397) ext.214                                                 Mark Tewart is the president of Tewart
                                                                                                        Enterprises. He can be contacted at
                      or email us at loyaltydriver@imninc.com                                           866.429.6844, or by e-mail at
                                                                                                        mtewart@autosuccess.biz.


  30
PattiWood


                                                                         Smile and the
                                                                 World Smiles With You
                       You’ve experienced        you are tired of getting up at 3 in morning      to cooperate. So even when the smile was
                       it. You come into the     and changing their diapers. A child’s smile      a football field away the cave man noticing
                       office with a real big     has been shown to give the same level of         him approach his cave knew the smile was
                       smile on your face        stimulation as eating 2,000 chocolate bars or    safe and he shouldn’t be afraid.
                       and suddenly people       receiving $15,000 in cash.
                       respond to you with                                                        Does a smile mean that someone is
a smile and seem to treat you better. It’s a     How do you smile or what deÞnes a smile?         happy?
well-researched social phenomenon. In fact,      You can use more than 80 different facial        No. There are more than 50 different types
just looking at the photos of happy-faced        muscles to smile, and we typically see it        of smiles. We smile not only when we
people has been shown to make a person           as a spreading and upturning of the lips. It     are happy but when we are feeling other
brain waves go to a happier mode. And a          changes the face significantly enough that        emotions, as well. This may make it difficult
seeing a smile can give you more pleasure        it can be detected and recognized after 3        to tell what someone really means when they
than money, sex or eating chocolate. In this     seconds from a great distance, 300 feet,         smile. According to Paul Ekman, the father
article you will discover the answers to some    or the length of a football field. Sounds         of facial expression research, there are more
perplexing questions about smiling.              incredible doesn’t it?                           than a dozen different positive emotions
                                                                                                  expressed with various smiles. If you know
When do you begin smiling?                       Why did our ancestors need to smile?             what specific part of the face to look at you
Though babies aren’t born smiling, about         Though they did not attend a lot of cocktail     can tell whether someone is really smiling
three weeks after birth, babies give a fleeting   parties where they needed to smile and           from happiness or not.
smile in response to touch and sound and         make small talk, our cave man ancestors
visual cues like the funny faces and sounds      did run into other cave men they did not         How can you tell if someone is giving a
you tend to make. They start recognizing         know. So they smiled as they approached a        sincere smile?
faces and smiling socially, that is smiling      stranger to say, “I am harmless. Don’t pick      Look at the eyes not the mouth. When
to get you to smile and treat them well at       up your spear and kill me.” In fact, it is the
about eight to 12 weeks. Just about the time     oldest form of expression to show a desire                             continued on page 36




august 2005
                                                                                                                                       31
PaulAccinno




                           Leverage Your Ofßine Marketing Efforts
                        “Just $199 down              Here are some tips on how to accomplish         the ad agency or the local newspaper.
                        ... $199 a month ...         this:                                           These will show up fine with Adobe
                        that’s $199 down ...                                                         Acrobat Reader. Make sure your Web
                        and $199 a month ...           Step 1: Have an initial meeting with          site provider installs a simple button
                        this is not a lease ...        your dealer and general manager               to download the Reader. TV and radio
                        you own it just $199           to explain that you would like the            commercials could be difficult based
down and $199 a month,” Intones the radio              dealership’s Web site to tie into             on the location and bandwidth of your
announcer on a local dealership’s latest radio         the weekly and monthly dealership             customers.
spot. It most likely ends with ... “so visit us at     promotions and to be sure that the
www.dealershipname.com.” This is a good                Web site URL is included in all forms         Step 4: If you have specific offers being
idea; to tie online marketing to “offline”              of advertising. Make sure everyone            advertised (like the one mentioned
marketing. It’s called “synergy.” The only             is on the same page when it comes to          at the beginning of this article) be
problem is if you went to the dealer’s Web             marketing synergy for your Web site.          sure they are included somewhere on
site, there would most likely be no mention                                                          the Web site under weekly specials,
of this special offer, let alone a listing of the      Step 2: Ask to have a subsequent              featured vehicles or special offers. Also,
vehicles that qualify for this offer.                  meeting that includes your ad agency          you should include your offline offers in
                                                       and Web site provider.                        your responses to Internet leads.
This is a challenge at most dealerships. Short

                                                      There is no
of updating the inventory on a regular basis,                                                        Step 5: Instruct your ad agency to have
there is typically little else on a dealer’s Web                                                     commercials and ads drive customers
site that is current or refers to offers and
events that appear in newspaper, radio, TV            question that                                  to the Web site for details. “Only $199
                                                                                                     down and $199 a month. See our Web
and direct mail ads.
                                                      having a well-                                 site at www.dealershipname.com for
                                                                                                     specific details and to view our entire
Part of the challenge is that Internet                integrated                                     inventory of these certified pre-owned,

                                                      marketing
managers are not always in the loop when                                                             late model low-mileage beauties.” In
it comes to making marketing decisions and                                                           the old days, you would say “See this

                                                      program
plans for the dealership. These decisions are                                                        Sunday’s ad for details.” but why drive
typically made with the dealer or general                                                            someone to a newspaper full of your
manager and the ad agency. So getting the
information you need to keep the Web site             can increase                                   competitor’s ads? Be sure to utilize
                                                                                                     this same strategy in all your offline
current from a marketing perspective is a hit-
or-miss proposition at best. The other factor
                                                      your total                                     mediums.

that makes this difficult is the time it takes to      dealership                                     Step 6: Be diligent. Monitor your

                                                      sales, not just
do this properly. As we discussed in July’s                                                          Web site at least weekly to make sure
article, “Maximize Your Internet Sales”                                                              that your ad agency and your Web site
(page 20), the Internet manager’s main
responsibility is to sell Internet appointments       Internet sales.                                provider are communicating. Send them
                                                                                                     both quick e-mails if you find one end is
not be a marketing manager.                                                                          dropping the ball.
                                                       Step 3: With the support of your
There is no question that having a well-               management team, explain to the ad          If you set this process up correctly in your
integrated marketing program can increase              agency how important it is to include       initial meetings, it can be a pretty painless
your total dealership sales, not just Internet         the dealership URL in all advertising       and seamless experience that allows you to
sales. TV commercials only last 30, 15                 and that you want to leverage as many       harness the significant monthly advertising
or even 10 seconds. Radio commercials                  aspects of the dealership’s marketing       expenditures of your dealership and
typically last 60 or 30 seconds. Billboards            efforts online. Ad agencies typically       ultimately sell more vehicles on the Web.
go by in a flash. There’s only so much room             forget to include the URL in dealership
on a direct mail piece, and you’re probably            advertising. More specifically, when
not in the newspaper every day. But your               graphics are produced for print, you want
Web site is available 24/7/365 and typically           those same graphics sent to the Web site
has unlimited space to provide details for             provider in a digital format. You should
special offers and campaign details. So using          include those (tent sale graphics as an
your Web site to support and leverage your             example) on your homepage with some
                                                                                                   Paul Accinno is the preseident and CEO
offline marketing efforts is a key factor in            supporting copy. Also get a PDF file of      of WorldDealer, Inc. He can be contacted
maintaining a truly integrated marketing               the weekly newspaper ads forwarded          at 866.319.6284, or by e-mail at
program.                                               to your Web site provider from either       paccinno@autosuccess.biz.


  32
1-888-Get-A-Car & www.getacar.com
  Only One Dealer Per Market
       Call Now for Exclusive Rights Details
                        View TV Spots at
                    www.getacar.com/dealers.htm

                    Programs Include:
             Leads       Advertising Assistance
             TV Spots    Training for your Special
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STOP Paying per Lead! One Flat Rate For UNLIMITED LEADS!
         Get A Car, Inc. 800.790.1212 Joe Perot - President
              email: perot@getacar.com www.getacar.com
DanVogel




                                                                                                  CRM Evolution
                      Advanced dealerships              some challenges. Wouldn’t it be great if           customer prospects, whether they walk in,
                      that have invested                a single tool could help dealerships take          phone in, or come in through the Internet.
                      in     the    excellent           customers through the full cycle of pre- and       The overall Web-based program should
                      Customer Relationship             post-sale CRM? Dealers across the country          enable customized marketing campaigns
                      M a n a g e m e n t               would benefit from the cost savings of              based on a wide selection of customer data
(CRM) technologies available for both                   dealing with one vendor that can offer a           points. Under the single interface, qualified
lead management and customer retention                  single tool that will provide a single point of    leads and timely service reminders will
have experienced increased dealership                   data entry, and the ability to stay in contact     be directed to the customer retention and
closing ratios and retention rates. For some            with all customers at any time.                    follow-up systems accordingly, so dealers
dealerships, applying these tools has become                                                               can capitalize on promising opportunities.
fundamental to helping manage daily                     Automotive CRM vendors will soon
business. Beyond managing daily business,               begin to address the challenges faced by           Beyond an excellent retention and lead
effective automotive CRM tools are vital to             dealerships that are using multiple systems.       management foundation, the following list
the long-term customer life cycle where a               In the near future we will start to see cutting-   outlines added benefits that dealers can
dealership must have access to, and stay in             edge CRM vendors leading a shift to single-        look forward to in future integrated CRM
touch with, customers for several years.                interface CRM solutions. The new solutions         programs.
                                                        will be designed to coordinate all outreach
Although there are efficient lead                        to customers and prospects combining                 • One-time entry of data for prospects
management and customer retention tools                 lead management with post-sale retention               or customers, even across a
available for dealers today, setting up and             and integrating customer segmentation                  dealership group
maintaining multiple programs can present               with personalized communications across              • Reduced administrative and billing
                                                        multiple channels.                                     duties
                                                                                                             • Flexibility between in-house and

   #1 Dealer                                            An integrated solution will also allow
                                                        dealerships to streamline administrative
                                                                                                               outsourced strategies depending
                                                                                                               on changes in season, budget and
Success Variable?                                       and accounting tasks by dealing with one
                                                        vendor, accelerating outreach time, reducing
                                                                                                               staffing fluctuation
                                                                                                             • Option to outsource day-to-day
   • Franchise?               • Location?               staff hours dedicated to CRM and easing                outreach functions to CRM vendor if
                                                        transition and work flow during periods of              faced with an immediate deficiency
   • Facility?                • People?
             O


                                                        high employee turnover.                                in staffing and/or expertise
                                                                                                             • Coordination of outreach across all
 Great people make the real difference! But with        Forward-thinking dealers always have a                 departments before and after the
 all the demands on your time and the shortage of
 automotive professionals in the market, how do         lot to risk and a lot to gain when adopting            vehicle sale
 you build the right team that will determine your      new technologies. Due to rising dealership
 dealership’s level of success?
                                                        overheads, dealers are aware that efficiencies      An effective CRM partner is vital to
 Automotive Careers, Inc. is a personnel search         provided by single-vendor solutions can            increasing a dealership’s bottom line.
 firm that specializes in automotive retail
 management positions. We have been assisting           significantly impact their bottom lines. The        By streamlining communications and
 dealers identify, hire and retain the best available   dealerships at the forefront of the single-        transactions, combined solutions should
 candidates to fit their dealership’s needs and          solution trend will experience more control,       grant dealers unmatched capabilities in
 culture since 1989. We have spent over 15 years
 searching out and monitoring the progress of           less complication and better efficiency             increasing dealership efficiencies, customer
 hundreds of automotive professionals and our data      because their services, parts and sales, and       loyalty, and extending the consumer
 base continues to grow every day. We also employ
 state of the art recruiting methods, including         marketing efforts will be truly aligned under      purchasing lifecycle. Most importantly, the
 Internet processes and blanket search techniques       one program via a seamless point of entry.         next wave of CRM tools will make the task
 to identify the top talent in the industry.
                                                                                                           of customer outreach easier and more cost-
 We are proud of the positive impact we have had        Dealers should expect that CRM                     effective.
 on our clients’ businesses and our candidates’
 careers. We welcome the opportunity to assist          components     will    include   advanced
 your dealership meet the demanding standards of        customer segmentation with personalized
 the retail automotive industry.
                                                        communications across multiple channels,
Automotive Careers, Inc.                                including e-mail, telephone, Web sites and         Dan Vogel is senior vice president
                                                                                                           and general manager of AVV Inc., a
  E-mail: dan@AutomotiveCareersInc.com                  print media. Lead management features              subsidiary of Autobytel Inc. He can be
  Web site: www.AutomotiveCareersInc.com                should include real-time tracking of               contacted at 866.826.8907, or by e-mail at
            toll free: 866.318.8010                     communication between dealership and all           dvogel@autosuccess.biz.



  34
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 COMPETITION USING THE EMPLOYEE
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 Now is the best time to take advantage of the additional advertising the manufacturers are
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 success of your dealership’s events.

     • The Wolfington Group’s media and art teams will create and execute all advertising
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Wolfington, a trusted name in the automotive industry since 1876.
continued

continued from page 31
looking for a real smile we usually look for a     Movement is key.                                   and her voice not sounding truly happy.
zygomatic smile because it uses the zygomatic      If you are with a person as they smile, look
major muscle that runs from the cheekbone          for the wave. No, not the football stadium         Does it pay to give real smiles?
down at an angle to the corner of the lips. In a   arm wave, the face wave. Real smiles seem          Experts coded women’s smiles in their
zygomatic, smile the lips turn up significantly     to crest over the face like a wave, changing       yearbook photos. Women who gave real
at the corners and the cheeks seem to lift up.     very rapidly from a small facial movement          smiles were compared to those who didn’t.
This smile makes us look happy.                    around the lips and lifting the sides of the       Years later the real smiles overwhelmingly
                                                   face and the eyes then the brows into a            had happier lives.
The lower part of the face, however, is easy       broad, open expression. Put your hands flat
for someone to manipulate, so the person           over your face right now. Let your face relax.     Do men and women smile differently or for
could be giving a fake smile.                      Now visualize a time when you were really          different reasons?
                                                   happy or say out loud the word ‘money’ and         You know the answer to this one. Any man
The upper part of the face is key. We often        smile. Did you feel your hands move up.            who has heard there wife say, “Everything is
look for the little wrinkles at the middle         Did you also notice saying the word money          fine” as she presses her lips together tightly
outside corner of the eyes. Most people            creates the wave, kind of funny isn’t it?          with slightly raised corners knows that
call them crow’s feet, but I call them happy                                                          women fake smiles more than men do. He
feet. Michael Douglas inevitably has those         Timing is important.                               knows he had better watch out. Women fake
wrinkles when he has his wife on his arm.          Just like other facial expressions, when           smiles more than men do and are more aware
Again that still may fool us. We still don’t       the smile occurs the person’s words and            of smiling. Though they are more likely to
know just from crow’s feet if someone is           emotions tell you if it is heartfelt. Typically,   stop smiling in private. Men, as a gender, are
happy or he or she wants to look happy.            a person will feel happy, smile and then say       uncomfortable around women who aren’t
                                                   something happy. Feel - show - say. If you         smiling. Men are often concerned that their
Typically, when someone is really happy,           ask them if they are in a good mood and they       smiles will make them appear less powerful.
their brow lowers and their eyes seem              say, “Sure.’ Then they hesitate, then smile        It makes sense as men with higher levels of
smaller. So look specifically at the muscles        they are not feeling that smiley.                  testosterone smile less often. It is rather sad
that surround the eye socket. The muscles                                                             because if you smile less often you tend to
around the outer part of the eyes are hard to      Listen to the voice.                               have fewer close relationships with others.
consciously control, only 10 percent of the        The timbre of the voice of a real smile is
population can do it. So a real smile, that is     so distinctly different than a fake smile that     Do Americans smile more or differently
one from joy, contracts the circle of muscles      the blind have no trouble distinguishing the       than people in other cultures?
around the eyes. You also need to look at the      voice of someone giving a real smile. And          Americans smile more often and are more
brows overall and see if they lift from the        you have probably experienced a cashier            likely to simply part their lips and stretch the
person’s normal resting position.                  giving a fake smile and ‘Have a nice day’          corners of their mouths to smile. Basically,
                                                                                                      we give a lot of fake smiles.

                                                                                                      Though the British have a retrained dignified
                                                                                                      smile they more likely than us to smile by
                                                                                                      pulling their lips back and upwards and
                                                                                                      exposing their lower teeth and doing the eye-
                                                                                                      changing real smile. The French rarely smile
                                                                                                      at a stranger, and tend to think Americans
                                                                                                      who smile all the time look ridiculous. But
                                                                                                      once they know you they will smile just
                                                                                                      as positively as anyone. In some cultures
                                                                                                      people will put their palm in front of their
                                                                                                      face to cover an embarrassing show of
                                                                                                      emotion given by a smile. In Korea, smiling
                                                                                                      can be seen as something shallow people do.
                                                                                                      In Indonesia the resting position of the face
                                                                                                      is very often a smile.

                                                                                                      Just as the cheshire cat left its mysterious
                                                                                                      smile behind when it left, the smile has a
                                                                                                      lasting effect on us. Next month you will
                                                                                                      learn how the smile effects your relationships
                                                                                                      with your coworkers, sales and customer
                                                                                                      service interactions.

                                                                                                      Patti Wood is the president of
                                                                                                      Communication Dynamics. She can be
                                                                                                      contacted at 800.849.3651, or by e-mail at
                                                                                                      pwood@autosuccess.biz.


  36
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Auto Success Aug05

  • 1.
    Read this month’sand previous issues online at www.AutoSuccess.biz .biz The Real Deal Pre-approval Sale Ben Elliott & Jimmy Peters Moving Out of Your Comfort Zone Improving Employee Satisfaction Improves Customer Satisfaction The Road to 20 Cars a Month, Every Month E-mail Best Practices: Create an Effective Auto Response How to Really Maximize an Employee Price Program a division of Systems Marketing, Inc. August 2005
  • 3.
    SUMMITIII BEST PRACTICES Dean Evans David Kain Sean Vice President of President, Kain WolÞngton Marketing, Dealix Automotive Inc. Internet & Owner, BZResults.com BDC Training Specialist You will learn: Case Study: How to use - Internet Marketing that You will learn: BDC/Internet departments generates high quality - Mapping out the best to sell 100 - 500 extra cars leads - Maximizing lead Internet sales process - E-mail templates for the a month. You will learn: LEADERSHIP • INTERNET • CRM • MARKETING • BDC • SALES generation from your best short and long-term - Setup a successful BDC/ Web site communication Internet department - Maximizing third party - Phone script elements - Use the Web to promote automotive sites that turn leads into all your proÞt centers - Metrics that matter appointments - Use the Web to drive - Focus on return on - Recruiting, hiring and Dealers & showroom & phone trafÞc investment compensating for results - Sell old stock, vehicles & parts inventory - Use e-mail marketing to drive more trafÞc for zero cost Managers Only! Two days of intense learning. Dramatically Kevin Root Steve Hiatt Owner, Mountain Mitsubshi Jennifer Picheco improve your results. VP & GM, Dealer Advisory Service, The Cobalt Group Case Study: How to Director of e-Commerce, increase your net by half a Germain Motor Company Case Study: Processes million in a year. Case Study: Germain the top 20 dealerships You will learn: Motor Company’s Internet use to convert more leads - Evaluating personnel, department sells over 200 to sales the lazy or content ones cars per month - here is - Continually train our secret You will learn: everyone: Front end two times a week, Þxed end You will learn: - Use the top three key once a week success drivers to convert - Dedicated vs. - Put in controls. Move Designated leads to sales over aged inventory in - Avoid the three most - The pricing fear factor new, used and parts - Are you really listening to common mistakes that - Forge a deep relationship with your the customer? kill sales - Third-party leads.. - Maximize your lead manufacturer to help get correct inventory, ßoor line Why not? volume - Move forward or move and capital - Respond to leads - Praise every on - Our follow-up - Drive for appointments improvement in sales schedule - Focus on processes that goals, certiÞcations, etc. - Measure, track and deliver results out in public feedback MGM Grand Las Vegas, Nevada Chip Perry Jim Adams Robert Revere November 3 & 4, 2005 CEO and President, General Manager, CRC Director, Avondale AutoTrader.com Roper Kia Auto Group Honor Your Internet Advertising Best Commitments: The Case Study: Transition Practices Þve things we owe our from Internet BDC to sales staff modern day CRC Limited Seats, You will learn: You will learn: You will learn: - How AutoTrader.com’s - How to understand top performing dealers get - Lower compensation opportunity generations is percentages Register Today! their outstanding results the key to success - Lower overhead - Take home examples of - Individual goal setting - 100 percent effective merchandising - Managing activities bring accountability you can put to results - Higher results immediate use - Daily one-on-ones: The key to success Case studies - Your selling attitude: Mirroring behavior - Building your dealer brand from successful dealerships across the country. Darren Haygood Jasen Rice Erik Stuttz Director of CRM & Internet Sales, Lokey Automotive Internet Director, Lou Fusz Automotive Case Study: Ranked #17 Vice President of Consulting, STC Group Class room style seating only $695 Case Study: Lokey Case Study: Paragon Automotive Group in Total Internet Sales for Honda & Acura uses CRC triples Internet sales - by dealer groups, Internet to sell 106 extra cars in spending less! departments generate one month. upwards of 20%-40% in advance, You will learn: of the dealerships total You will learn: - DeÞne your dealership’s business. - How we increased our CRM strategy. BDC vs. leads and increased dedicated personnel You will learn: our closing ratio from 7 $995 after - Maximize your ROI, - Marketing to today’s percent to 25 percent ignore the hype and start Internet consumers - How to evaluate the realizing real results - Internet Department’s different CRC models to - Achieve higher gross steps and processes to choose the one that works October 5, 2005. than with your walk-in the appointment/sale for your store customers - Gaining revenue in the - How to staff your CRC - Achieve 20 percent Þnance department and - How to build out & Closing ratio & 20 getting them to become overcome obstacles to percent retail mix for your more atoned to the creating a successful CRC dealership Internet customer - Best practices for turning - Turn leads into phone - Meeting and exceeding leads into appointments ups - phone ups into Internet customers that show and appointments expectations appointments into sales Speakers and times subject to change Call today to register. toll free 866.317.7914 web www.autosuccess.biz
  • 6.
    8Moving Out ofYour Comfort Zone BrianTracy INSID Improves Customer Satisfaction 9 Improving Employee Satisfaction Customer Service Counts The Road to 20 Cars a Month, Every Month 10 12 BobTasca TomGegax JimAdams Create an Effective Auto Response 14 E-mail Best Practices: DavidKain ... With Time to Spare 16 KirkManzo Would Anyone Really Notice or Care 18 If Your Business Closed Today, MichaelYork The Real Deal Pre-approval Sale 20 BenElliott And You Are ... 22 TonyDupaquier How to Really Maximize an Employee Price Program 24 ScottJoseph Steering Out of Control 25 CarolMartin-Ardell Fact Finding 26 AnthonyHall Manufacturer or Leadership 28 Is it Marketing, the SeanWolfington Pre-Owned ProÞtability 29 New Software Steps Up RandyBarone In the special feature of the July issue of AutoSuccess Magazine, The Champion Coach 30 MarkTewart we incorrectly stated that Ben Freeland worked for Smile and the World Smiles With You 31 PattiWood Freeland Luxury cars, he is the owner of Naples Nissan in Florida. Leverage Your Ofßine Marketing Efforts 32 PaulAccinno CRM Evolution 34 DanVogel Exodus 34:2 “Be ready in the morning, and then come up.” 3411 Pinnacle Gardens Drive Louisville, Kentucky 40245 ! Toll Free: 877.818.6620 " Facsimile: 502.588.3170 Isaiah 41:13 Patrick Luck, Editor & Publisher “For I the Lord thy God will hold thy • pluck01@autosuccess.biz right hand, saying unto thee, Fear Susan Givens, Vice President not; I will help thee.” • sgivens02@autosuccess.biz Courtney Hill-Paris, Sales-improvement Strategist • chill-paris04@autosuccess.biz Brian Ankney, Sales-improvement Strategist • brian01@autosuccess.biz God Bless America Thomas Williams, Creative Director • twilliams03@autosuccess.biz AutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccess.biz. Subscription rate is $75 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content, and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. Always confer with legal counsel before implementing changes in procedures. © All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3411 Pinnacle Gardens Drive, Louisville, Kentucky 40245.
  • 7.
    HERE’S HOW TOGET EVERY MAILER OPENED! A POPULAR SCRATCH OFF • 8.5” x 13” Full Color On Both Sides • 8.5” x 11” Full Color on Both Sides • 3.5” x 8.5” Full Color Super Slots© Insert Includes: • 3.5” x 5” Dash for the Cash© Ticket Scratch Off Play Area/ $15,000 Cash Includes $20,000 Give-away Give-Away†/ Insured • Residential Selector or • Residential Selector or Your Database List Your Database List • Quality 80# Cover Stock • Quality 70# Text Stock • Mailed in a 6x9 White • Mailed in an Envelope Envelope • Postage Included!** • Postage Included!** ONLY great value PER PIECE* PER PIECE* A DOCUMENT THAT GETS NOTICED! ARE YOU CAPTURING THE OFF LEASE MARKET? • 4 Separate Pieces in the Envelope • 8.5” x 13” Full Color On Both Sides • Experian or Equifax Score List or BK • $20K Insured Vehicle Give-Away† • Quality 70# Text Paper • Off Lease Termination List • Mailed in an Open Face • Quality 100% Gloss Stock Window Envelope • Self Mailer Format • Postage Included!** • Postage Included!** only LOW PRICE OF PER PIECE* PER PIECE* *Based on 12,500 pieces **Premium U.S. Postage with Express Delivery †Group policy CALL TODAY FOR A FREE INFORMATION PACKET AND OUR MARKET REVIEW OR VISIT US AT WWW.PREMIUMPRODUCTIONSONLINE.COM (866) 376-2392
  • 8.
    BrianTracy Moving Out of Your Comfort Zone Any change, or even affected. You will experience sleeplessness, achieve them. You must begin to see yourself an attempt to change indigestion or fatigue. You may react with and think about yourself as capable of being anything you are impatience, irritability or anger. You will one of the highest earning sales people in your doing, makes you often feel as if you are on an emotional field. You must take charge of developing a uncomfortable. By roller coaster. So if you want to sell more new self-concept for sales and income that is attempting to change, and earn more, you must increase your self- more consistent with what you really want to you move out of your comfort zone. You feel concept level of income. You must increase accomplish. increasingly uneasy. You experience stress the amount you believe yourself capable of and tension. If the change is too extreme, earning. You must raise your aspirations, Your self-concept determines your levels of your physical and mental health can be set higher goals, and make detailed plans to performance and effectiveness in everything you do. In sales, you have a series of mini- self-concepts that govern every activity of selling. You have a self-concept for prospecting, for using the telephone, for cold calling, for making appointments, for qualifying, for presenting, for answering questions, for closing, for getting referrals and for making follow-up sales. You have a self- concept of your level of product knowledge, your personal management skills, your level of motivation and for the way that you relate to different types of customers. In every case, you will always perform in a manner consistent with your self-concept. Wherever you have a high self-concept, you perform well. If you enjoy working on the telephone, you look forward eagerly to telephone prospecting and selling and you do it well. If you have a high self-concept for making presentations or for closing sales, you feel comfortable and competent whenever you are doing them. Wherever you feel tense or uneasy in selling, it means that you have a low self-concept in that area. You do not feel comfortable when you are engaged in that activity. You probably avoid that activity as much as possible. This is normal and natural. The only question is, what are you going to do about it? Now, here are two things you can do immediately to put these ideas into action. First, set a goal today to become one of the highest earning people in your field. Then, back your goal with action by committing to becoming very good in every area of selling. Second, see yourself, imagine and visualize yourself as if you are already very good at what you do. Create within yourself the feeling of success and accomplishment. Remember, as within, so without! Brian Tracy is the chairman and CEO of Brian Tracy International. He can be contacted at 866.300.9881, or by e-mail at btracy@autosuccess.biz. 8
  • 9.
    BobTasca Improving Employee Satisfaction Turn Your Improves Customer Satisfaction Internet Leads We learned to curb Employee referrals into Showroom employee turnover and increase employee Ask internal employees who do an outstanding job if they know any one who Appointments... satisfaction because might make a good fit with the organization. customer satisfaction Offer an employee “bird dog fee” for their hangs in the balance. help in finding a quality candidate that stays Making a difference in employee satisfaction for a period of time (example: six months). at your store hinges on four areas of focus: 1. Recruiting process Advertising 2. Hiring process When networking and employee referrals 3. Orientation process fail to generate a qualified candidate for an 4. Continuous improvement process immediate position, we have some great content and helpful pointers for creating the In this article we’ll look at recruiting out of right kind of ad: inspiration, not desperation, and if you like 1. Sell yourself. Like a “Why Buy what you read, you can watch for future Here?” brochure, a want ad needs articles to look more closely at hiring, to be a “Why Work Here?” orientation for new hires and continuous 2. Never over-promise and under- improvement. deliver. 3. Mention in-depth training, if you Recruitment process offer it. Trying to recruit great people is a never- 4. Mention that a mentoring or ending chapter in the story about meeting continuous improvement process and exceeding customer expectations. But will be provided, if it is. do we sometimes make decisions out of 5. Advertise that you offer monthly desperation? To avoid being caught in a bind, associate reviews for ongoing finding great people starts with an outlined support, and live up to that description of each position in the dealership promise. to define our dealership needs. This can start with looking at our surroundings and Other sources focusing on these three things: Here are a few more examples of where to • Work environment look for great people: • Job tasks and responsibilities • Job Fair: Set up a booth at your • Job competencies local college(s) during a job fair day. As anyone in retail knows, there’s no such • Monster.com and other Internet thing as a “hiring freeze” in a car dealership, sources. and if you’re not on the lookout for talent, it may go unnoticed. The automotive business is a sales and service industry that can be compared to a QualiÞed applicants fine hotel, fine restaurant or clothing store. Whether you’re looking for a qualified technician, superstar sales person or Customers are willing to seek out, find and pay more money when the service exceeds Guaranteed... trustworthy title clerk, the best dealers utilize “word of mouth” advertising. The goal is to their expectations. There’s no danger of or You Don’t Pay! exceeding customer expectations if we never have a need to run advertisement don’t put an end to the revolving door that to solicit employees and to create a is the result of employee turnover, and that reputation in the community that qualifies starts with recruiting the right people out of your dealership as the place to work. This inspiration, not desperation. At Tasca, we means we need to focus on doing our best as learned a lot about recruiting the right people effective leaders within our workplace and from our training partners, and I encourage Call today for a free estimate community. Quality job applicants will seek you to contact me to learn more about on implementing to find us, if we are doing our jobs. creating a recruiting and hiring process that the TIMS system in your store. Networking will build employee satisfaction and boost Always let people know we are on the lookout your CSI. for quality, potential candidates. Be sure to ask other business contacts (banks we deal with, advertisers and even our supply vendors) for Bob Tasca III is the dealer principal of www.worlddealer.net any possible recommendations while we are the Tasca Automotive Group. He can be e-mail: info@worlddealer.net participating in business transactions and contacted at 866.210.1254, or by e-mail at 866.429.6826 even involved in social activities. btasca@autosuccess.biz. august 2005 9
  • 10.
    TomGegax Customer Service Counts Tires Plus’ customer our employee playbook, dealt with how to handled cleanly in the first place. service was legendary. treat our guests (we called them “guests” to I asked our people inspire the kind of service you’d find at a fine 4. Solicit and act on feedback. Create to add a touch of hotel). You can’t inspire daymaking service as many comment channels as possible: volunteerism to the through occasional pep talks, memos and comment cards, follow-up phone calls, job, to try to make meetings. It’s gotta be walked, talked and complaint hotlines. You can’t get better each customer’s day a little brighter. If we lived - day in and day out. without knowing what your customers concentrated first on kindness and empathy, think. We regularly retained an outside I said, healthy profits would naturally follow 2. Treat employees right. If you leapfrog service to conduct customer surveys. We (as long as our prices and costs were in line). your people and focus chiefly on pleasing also contracted a “mystery shopper” service customers, you’ll wind up with unhappy - for both in-store and phone interactions - Why gun for “legendary” customer service? customers. Connect the dots, folks. Do to get an objective, in-depth look at quality you really expect employees who feel control. 1. It keeps ’em coming back. Seat-of- unappreciated to welcome customers with a the-pantsers spare no expense to get new big smile and a genuine desire to give them a Gathering information is pointless, of course, customers in the door, yet often fail to provide positive impression of your company? Honor unless you act on it. We tweaked our store a why-go-anywhere-else experience. Huge your people, concern yourself with their protocols all the time based on customer mistake. Customers are like spouses - take well-being and respond to their grievances feedback. Every negative comment about an them for granted and they may go elsewhere like they were customers. You’ll be employee was routed to his manager’s in-box to get their needs met. It’s a vicious circle rewarded with invigorated, loyal employees (and copied to his district manager) so the - businesses pour more and more resources who set new standards for performance and offender could be coached back on track. into unearthing new customers to replace customer care. the ones lost to neglect. Showering attention 5. Walk your talk. Leaders give a lot of lip on customers already in the fold keeps them 3. Establish clear policies. In our business, service to their commitment to customer in the fold, so your new customers become guidelines were essential at three customer- service. Are you among the few who follow add-ons rather than replacements. care stages. through? When you hear of a complaint, do you shake your head and joke about the 2. It pulls in new customers. Don’t just Initial contact. customer being an odd duck? Or, do you satisfy customers. Astound them. Lay out Guests were greeted with WHENS: urge your people to look at the situation the red carpet, and guests will rave to friends Welcome, Handshake, Eye contact, Name, through the customer’s eyes and do what and family. That sends new customers to Smile. We then asked a series of questions it takes to make her happy? Do you shout, your doors and Web site - at no additional to identify their needs. Staffers also fielded “You gave away WHAT?” Or, do you say, cost. (Expect a dazzled customer to phone calls according to a protocol I “Good for you, you remembered our values recommend you to two to three others.) On established in the early ’80s: “It’s a great and did the right thing.” Great customer the other hand, one rude encounter with an day at Tires Plus. This is Jim. How can I service will wither on the vine without the employee can torpedo every future purchase help you?” support of upper management. from that customer, his family and friends - and their family and friends. (Expect a Warranty service. 6. Measure and reward performance. We peeved customer to complain to three to Sales people were trained to welcome had a customer satisfaction metric called eight others.) Precious word-of-mouth buzz returning, non-revenue-producing guests GEI (guest enthusiasm index). Applied - free advertising - is squandered whenever like they were new customers. The reason to individual stores and the company as a customer has a less-than-excellent should be obvious - customers prefer to go a whole, it quantified the percentage of experience. steady rather than have a one-night stand. customers who would recommend us to That means coddling. friends. Below-average stores were targeted Six ways to win legendary customer for extra coaching. It took a lot of sweat to loyalty: Customer complaints. push up our GEI one percentage point. Darrel We welcomed them. No, seriously. They Blomberg, our full-time guest enthusiasm 1. Hire the right people and train them well. were opportunities to demonstrate we cared coach (that’s not a joke title), labored two- We showed everyone involved in hiring about our customers. We even deep-sixed and-a-half years to move it from 92.0 to how to spot applicants who loved helping the word “complaint” and replaced it with 98.2. Personnel knew every smile counted people and making their day. But that was “guest opportunity.” It’s said that the value of - their compensation was partially based on only the beginning. Good employees also a person’s character is measured by how one a mix of store, district, region and company- need training and inspiration. We enrolled deals with adversity. That’s also true of the wide GEI. new hires in a weeklong orientation where, value of a company’s character. Employees at among other things, I spelled out our mission every level need the authority to do whatever Tom Gegax served as chairman and - “Deliver caring, world-class service to our it takes to satisfy unhappy customers. Just CEO of Tires Plus and is the founder of guests, our community and to each other.” as a broken bone comes back even stronger, Gegax Management Systems. He can be The focus of countless meetings, talks and we often scored more points by appeasing contacted at 866.210.2832 or by e-mail at training sessions, as well as big chunks of an upset customer than if the issue had been tgegax@autosuccess.biz. 10
  • 12.
    JimAdams The Road to 20 Cars a Month, Every Month Have you ever want to be. Get out a pen and paper. Write of something that we need to accomplish. heard the phrase down: today, three months, six months, one A crystal clear vision of where we are and “experience is the year, five years and 10 years. Our goals must where we want to be is one of the many keys greatest teacher”? be divided into professional goals, family to success that we will explore in our goal- This statement could goals and life goals. My personal goals setting process. Writing and reviewing these not be further from include unit volume, grossing averages as goals will instill in us the drive that we must the truth. Other people’s experiences are well as how many books I plan to read and have to accomplish great things. the greatest teacher. Learning from other how much time I set aside to spend with my people’s successes and failures is the key to family. Money goals are the vehicle we use to 2. Professional goals: The first thing professional selling. plan for the goals that really matter: Life and professional sales people need to have is family goals. If you are just earning money a clear understanding that sales follow Andy Andrews said that General Norman for the sake of earning money, your life and opportunities everywhere they go. To sell Schwarzkopf, commander of the Allied family goals will always go unfulfilled. Zig more cars we must talk to more people. We forces in the Gulf War, had a system of Ziglar once said that when he died he would know that the average sales person closes advancing across a mine field that worked leave as much money as Howard Hughes about 20 percent or one out of five of their out pretty well for him. Walk toward the left: all of it. Just start writing. What do you total opportunity count. So let’s do the math. explosions, because that is where the boys want? Start with stuff. That is the easiest. To sell 20 units a month we need to talk to have already found the mines. Observing I want a new car, a bigger house, some (20 units X five opportunities) 100 customers behavior is one of the many keys to success money in my savings account. I want a boat, per month. If we work five days a week we in this business. I have been the seven-car a place at the lake and to take a vacation will have 22 selling days which means we sales man and the 30-car sales man and I to the beach or to the mountains. Once need to talk to (100 customers divided by have made my share of mistakes. However, you get started, it comes pretty easy. That 22 days) 4.5 customers per day. The average over the past 15 years I have learned and is just stuff. Now dig a little deeper. How commission including bonuses and factory developed professional business practices about spending 30 minutes a day reading to spiffs is around $300 per car, which will give that if followed will help you become a your children or playing catch in the back us a monthly income at 20 units of $6,000 professional in automotive sales. It is said yard? Write it down. How about spending monthly or $72,000 annually. (See chart 1) that 80 percent of the income in our business two Saturdays a month on a date with your is made by the top 20 percent of the sales spouse or dedicating one hour a night sitting Once we discover how many monthly and people. This leaves the bottom 80 percent of on the porch talking about anything but your daily opportunities we need we are one step the sales people fighting for the 20 percent finances or the children’s activities? Write closer to achieving our unit goal. If our goal of the income left over by the true sales it down. Tithing, community service or is 12 units a month, our focus is not on the professionals. If you commit every day to visiting home-bound elderly adults can all 12 units it is on the 2.7 opportunities that following the steps of professional selling be a part of your life and family goals. Many we need today and everyday to achieve the you will be amazed at how fast you can of our goals take money. Most do not. I hope goal. Sales follow opportunities everywhere achieve great success in automotive sales. you can see where I am going. If you write it they go. down it becomes an objective that we must 1. Have a goal, a clear vision of where you look at on a daily basis and it is a reminder Now let’s focus on where our opportunities come from. In our industry we have several chart 1 sources of business. Fresh ups or walk-ins, Unit Monthly Opportunity Daily Opportunity repeat owners or orphaned owners, new Goal Count Count business or outside prospects, referrals, be-backs and phone-ups or phone-ins. Units x 5 opportunities Monthly opportunities divided by 22 working days Here is the good news. The factories and 20 100 opportunities per month 4.5 opportunities per day your dealerships spend billions of dollars units a year driving fresh up or walk-in traffic 19 95 4.3 to your dealership. The bad news is that at 18 90 4.1 best the average closing ratio on a fresh up 17 85 3.9 is about 10-12 percent. Which means your 16 80 3.6 chance to sell a fresh walk-in is about one 15 75 3.4 out of 10. Fresh up traffic is instrumental to 14 70 3.2 your success in this business as long as you 13 65 3.0 understand that it is not where the majority of your opportunity should come from. Take 12 60 2.7 a look at the math. (See chart 2) 11 55 2.5 10 50 2.3 Now, where do you want your business to 12
  • 13.
    continued These are the questions you must answer Source of Average Closing Results in order to put the goal-setting process into Business Ratio motion. In part two we will explore how Fresh Up 10 Percent 1 out of 10 to build daily activities to cultivate each source of business to ensure that we meet Repeat Owner 50 Percent 1 out of 2 our monthly opportunity goal. Remember unit sales follow opportunity everywhere Referral 50 Percent 1 out of 2 they go. New Business 30 Percent 3 out of 10 Be Back 67 Percent 7 out of 10 Jim Adams is the general manager at Roper Kia in Joplin, MO. He can be Phone Ups 20 Percent 2 out of 10 contacted at 800.905.0627, or by e-mail at jadams@autosuccess.biz. chart 2 come from? It is clear to see that repeat and referral business are much more productive DEALERS MUST BE than fresh walk-in traffic. Here is the bonus: Repeat owners are easier to close, and commissions are generally higher. The customer trusts you more and will allow you ON TELEVISION! to sell the value of the product. The more value the customer receives, the higher price he or she will pay. As we set opportunity goals we must predetermine on a monthly basis where our opportunities will come from. Ask yourself the following questions: See why over 100 dealers nationwide have • How many fresh ups per day do I INCREASED SALES MORE THAN 30% IN average? LESS THAN 90 DAYS WITH TELEVISION! • How often do I contact my current owner base? We produce nearly 4,000 commercials • Does my dealership have a list of a year from our studios. We give you orphaned owners, and how can I get my hands on it? unlimited, high quality television campaigns and promotions FREE. With computerized • Do I ask everyone I come in contact with for a referral? Do I know how to media buying technology, we buy television as ask for a referral? much as 30%-40% more effectively than any • What daily activities do I have in media buyer in the nation and give you place to generate new business contacts? Do I belong to any clubs or UNLIMITED TV CAMPAIGNS civic organizations that will help me AND PROMOTIONS! cultivate new business contacts? Call for a FREE demo tape and information. • How often do I follow up unsold prospects? Do I do a great job of getting names and numbers from every fresh up that I serve on the lot? Cell phones and e-mail addresses are Larry John Wright, Inc. the two most important pieces of information you can get from your Automotive Advertising customer. “America’s Premier Automotive Advertising Agency” • Do I feel that I do a great job with 1-800-821-5068 incoming phone contacts? Am I relaxed, helpful and informative? Do I get the customer’s information and invite every phone up to the store or get the vehicle to the customer? august 2005 13
  • 14.
    DavidKain E-mail Best Practices: Create an Effective Auto Response Each week I mystery team as professional and talented. This a business card then you realize it should shop dealership Web conveys to the customer that the Internet have your logo at the top. This identifies sites to see how they is a key connection to the dealership and immediately who it is from and starts the “greet” me online the most visible person in the organization brand-building process. with their auto wants to personally say hello. A well-crafted response e-mail. The message from the Internet manager/director Step 4 – Keep it brief auto response provides the first impression or specialist works well too and helps to Tell the customer as quickly as possible what and is an effective way for me to determine quickly establish them as the point person. you want to tell them and don’t waste their if they operate a productive Internet time. Graphics and bullet points work well department. As sales people we are all taught and hold the customer’s attention better. the steps to the sale during our first days of training and the greatest emphasis is placed Tell the customer Step 5 – Describe your process on the initial greeting because it sets the as quickly as Some of the most effective auto responses stage for the relationship. possible what use a 1, 2, 3-type process description to let the customer know it will be quick and easy. Unfortunately, most auto response e- you want to tell For example: mails are not an effective greeting for the dealership, and fail to arouse or motivate their them and don’t 1. We are reviewing your request and audience. Too often the e-mails are sent with waste their time. will contact you within one hour by either too few or too many words and they offer no guidance to the customer. A poor Graphics and phone or e-mail 2. We will confirm your specifications auto response is better than a slow personal bullet points work and schedule a time that is response, even if the personal response is enticing. Spend the time necessary to make well and hold convenient for your test drive 3. During your test drive visit we your first impression a great one. the customer’s will provide your price, trade and What is an auto response supposed to attention better. financing information right up front so you can decide if you want to accomplish? purchase the vehicle An auto response lets the customer know Step 2 – Use a subject line that is relevant what they can expect when they work with to the customer Step 6 – Provide a link to your Web site your Internet department. In most cases, People can receive a lot of mail from people A link to your Web site is a great way to build customers have submitted leads through and companies they are not familiar. Normally brand and to establish your dealership as a third parties and have already received a we screen the e-mail address and the subject great resource for your customer. A simple standard reply of some sort from that source. line to see if they are safe and worthwhile to mention such as: “You can visit our Web site As a result, your auto response greeting open. Since the lead you received typically at www.kainautomotive.com 24/7 to review should acknowledge that your dealership comes from an aggregator of some sort that our updated inventory and specials.” will be handling the transaction. If your auto may be providing you the customer from response is just a brief note with no benefit one of the lead sources they work with. Step 7 – Sign it with complete contact to the consumer then they may also regard As a result, the customer may be surprised information follow-up responses much the same and not to know a dealer will be sending them an You have the customer’s attention at this even open them. Don’t miss the opportunity e-mail with their dealership name in the point so make sure they know who they to hit the ground running with an effective subject line. If the customer is not expecting are working with by signing it with your auto response welcome that causes the to see an e-mail from your dealership they complete contact information. If the dealer customer to want to open your follow-up may not even open the e-mail so it is best or GM is the sender make sure you include e-mails. to make it relevant to the consumer with a who the customer will be working with and generic subject line that says something like endorse their expertise. Consider providing Step 1 – Decide who you want to sign the “Response to your online vehicle inquiry” or a link with a map to the dealership for the auto response “Information regarding your Internet vehicle customer’s convenience. The auto response is designed to get the request.” The customer will realize they customer’s attention and welcome them to asked for information on a vehicle online so your dealership Internet process. If the dealer the subject line is relevant and they are more or the general manager is a well-known likely to open the e-mail. David Kain is the automotive Internet training specialist at Kain Automotive Inc. spokesperson for the dealership, it is a good He can be contacted at 800.385.0095, or idea for the initial welcome to be from him Step 3 – Use your logo by e-mail at dkain@autosuccess.biz, or or her with a line endorsing your Internet If you think of your e-mail like a letter or visit www.kainautomotive.com. 14
  • 15.
    “Let’s make financingmagic together.” We’d love to meet with you to discuss how we can help provide the best financing to your customers. With our deferred-payment option, we’re quite sure we can make you very happy. Drop your local commercial DRM a line or call 1-877-TEAMBVF and make a date soon. A product of DaimlerChrysler Services Jeep® is a registered trademark of DaimlerChrysler Corporation.
  • 16.
    KirkManzo ... With Time to Spare Managers may feel as If you can only complete a limited number need to be put on the schedule first. All other though they need 27 of tasks, at the end of the day what is most tasks (small rocks) then work around the hours to accomplish important? Sell cars; everything else pales in daily events (large rocks). all the tasks placed comparison. on them by the The weekly strategy is similar. If you know dealership. The idea of This may seem obvious on the surface but the deadline for payroll is Tuesday at noon, multitasking is no longer a luxury, but rather look at how you spend your time each day. block out an hour on Tuesday morning to a necessity or is it? You order cars from the factory, follow up calculate commissions for your sales team, with sales people on factory certifications to and have another manager cover the desk Too often a manager spends his or her time qualify for their incentives, chase stips, deal and floor from 9-10 am every Tuesday. If the reacting to everyone else’s requests instead with heat cases on the service drive, etc. cut off for the newspaper ad is Thursday at of training people on when and how to 11a.m. and it takes 2-1/2 hours to set up your schedule time with them. In order to help your dealer understand ads, schedule 90 minutes on Weds from 1- 2: exactly what it is that you do, and help you 30 p.m. and Thursday 9-10a.m. to meet the There is one thing we all have in common. get clarity as well, do the following. Each weekly deadline. Stay consistent. Schedule Each of us is provided with exactly the manager should make a list of ALL the tasks repetitive tasks so others can learn when you same resources without regard for who you that you are responsible for handling (as you are and are not available to answer questions are or where you work. We are all provided understand it). or help out. with the same size bucket to begin each day. As the day begins, your bucket is empty The results of the exercise will often reveal Follow the same routine for monthly tasks: and throughout the day it fills up until the obvious overlaps, two people addressing the Schedule monthly sales people reviews bucket is completely full allowing nothing same tasks. This is counter-productive. For for the first week of the month. Allow 30 else to fit. example, assign one person to handle dealer minutes per person, if you have more than 10 locates (hint: a sales person can be assigned sales people, split the group over two days. Now you could chose to allow other people this task to free up managers for higher People need to know you are serious about to fill your bucket with things that may seem value tasks). maintaining a schedule of reviews every important to them but are really not on the month, so pre-appoint for next month and let top of your priority list. Or you could first fill Areas that should be receiving attention, like the sales person know exactly what day next your bucket with those things that are most recruiting, are often not specifically assigned month and what time they will be meeting important to your success today. The bucket to any one person, yet it is the life blood for with you again. represents time. Its limit of capacity is the 24 continually upgrading your sales staff. Who hours we each have to work with daily. handles the daily one-on-one’s, the daily A scheduling template is the best way to training? Many of these large rocks (tasks) help you fill your bucket with the large rocks The bucket can become so full of little get pushed aside because too many small first allowing you to complete the repetitive meaningless tasks that get you no closer to rocks (tasks) get into your bucket and at the tasks required to run the dealership and your goals. The first thing you must do is end of the day … well you just ran out of create ample time to accomplish the most place the large rocks (important tasks) into room and time. important task, sell cars every day! the bucket, then place in the smaller rocks as room allows. If some of the smaller rocks Break your tasks list into three categories, Believe. (tasks) won’t fit into today’s bucket, they daily, weekly, monthly. will then need to go into tomorrow’s. Daily events include save-a-deal meetings, The first step toward taking control of your one-on-one’s with sales people, assisting Kirk Manzo is the general manager schedule, your job and your life is to accept F&I with CIT issues, reconciling with the at Ziegler Supersystems. He can be the reality that you will never finish ALL back office to make sure we are getting paid contacted at 800.858.6903, or by e-mail at the tasks you want or need to do every day. for what we already sold, etc. These events kmanzo@autosuccess.biz. SUMMITIII November 3 & 4, 2005 MGM Grand BEST PRACTICES Las Vegas, Nevada Dealers & Managers Only See page 3 for more details 16
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    MichaelYork If Your Business Closed Today, Would Anyone Really Notice or Care There’s just no place Not everyone has 2.7 billion to throw at that range from slow to terrible, the facts say like Las Vegas. Seems a giant hotel/casino/golf resort … or at a otherwise. no matter how many dealership in Chattanooga, but everyone has times you’ve been ways of making the customer feel special for If there’s nothing very special about your there; there is still an doing business here. work or the value or service you provide excitement or anticipation when you make then you’re lumped in with all the other that next trip. Flying into that oasis that still Here’s the formula: roadside “motels” of the world in the eyes looks like a mirage in the desert is great. Whatever you sell is boring. And whatever of the customer. And if another one of them I sell is boring. Unless you or I make it goes out of business today, would we really When you see the strip and all those giant remarkable in the eyes of the customer. notice? hotels and casinos, isn’t the first thing that Unless the emotional experience they’re pops into your mind something like “What getting makes the money they spend less But what if Starbucks or Harley Davidson Las Vegas really needs is another giant important than the experience or the story or Disney World or Las Vegas closed casino?” they can’t wait to tell about you and how tomorrow? Would anyone notice? you did it. No? Well that’s exactly what Steve Wynn You bet. And that’s the very reason it won’t was thinking. And his vision is now a reality happen anytime soon. Because people notice among all those other big name, big dollar properties. Here’s the and love spending their money there. What makes you special or cool or valuable or formula: remarkable in the eyes of the buyer? And The slick, black, wrap-around look of The Wynn hotel, casino, shopping mall and golf Whatever you sell if you can’t answer, that’s a great place to begin your radical improvement. resort is the new color in the Vegas rainbow. is boring. And And even that doesn’t do justice describing it. It’s almost beyond description. whatever I sell If all you’re doing is selling cars it can be all about price. But the feeling I get driving is boring. Unless around Las Vegas in my convertible with the You have to see it to believe it, and even then it’s enough to stretch your belief system. you or I make it top down and the sun winking at me from all those big shiny buildings doesn’t leave much Every big name boutique you’d hope to find remarkable room in my imagination to remember how in the eyes of the from Rodeo Drive to Fifth Avenue has a much I paid to be here. Even if I can recall spot on the Wynn walk of famous shopping. the number, it’s a small price to pay for this People stand and gawk at a giant wall of water in the gardens, and what it costs to furnish all customer. “emotional experience” that I couldn’t wait to tell someone about. And now I have. the fresh flowers inside the hotel would be enough to build most three bedroom houses. Las Vegas knows the secret to this “NOW” The reason the rich keep getting richer, as economy. So does Steve Wynn. So do they say, is because the rich keep doing the It’s HUGE with a capital HU! Starbucks and Harley Davidson. So do things that win in any economy, and the poor (Hint: There’s a Ferrari dealership inside it.) Oprah and Jimmy Buffet. So did Elvis. (read: ordinary or average) keep doing the Do you? not-so-special things that nobody’s really So why another casino in Las Vegas? It’s noticing. How excited are your customers obviously not just another casino or hotel. Are you creating an amazing experience about what you do and how you do it? Want It’s an emotional experience that people for the prospective buyer who is almost some better questions on how to improve come to see and feel and tell others about. always first a prospective looker? Are people your “show”? If you’re coming here you can save big walking around talking about coming back money by staying at an older giant hotel or here to be a buyer? No one at The Wynn If you want my short list on “Wynning” some chain we’ve all heard. The rooms are is trying to stop the “lookers” from leaving in this “NOW” economy, visit clean, OK, good price, practical, etc. Sound without checking in today! Are you still www.MichaelYork.com/autosuccess. familiar? Low mileage, solid transportation, worried about selling your “lookers” today good price. instead of creating such an attractive “show” that they can’t wait to be back … and buy! Where’s the emotional experience at your Michael York is an author and professional speaker. He can be contacted at place for the consumer? Are they excited This is the most sophisticated marketplace 800.668.5015, or by e-mail at about becoming a customer? What will they we’ve ever known. And while rumors and myork@autosuccess.biz, or visit say about you when they tell their story? excuses lament today’s economy with labels www.MichaelYork.com. 18
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    fs feature solution BenElliott The Real Deal Pre-approval Sale Direct mail has been around for some General’s office a few weeks later about the Under the new laws, with no firm offer time and remains one of the best ways to validity of the pre-approval offer turns a bad of credit, pre-approval sales have created fill showrooms with people. At first, mail sale into a potential nightmare. problems for dealers around the country. piece recipients were chosen by zip code or Fortunately, there are now programs distance from the dealership. Through the In reaction to these issues, pre-approval sales available though partnerships between years the selection process has become more are changing. Compiling the list of people direct mail companies and lenders that can precise. Dealerships now select recipients who are to receive a pre-approval mail piece truly grant legitimate pre-approvals. Every based on income level, lease termination is now done differently. Customers are still customer that receives a pre-approval letter date, college graduation, bankruptcy, home selected based upon their credit, but now is approved. By utilizing a pre-approval sale ownership, and most important, credit. Credit more care is taken to make sure that all program that truly guarantees the approvals, allows a dealership to only send mail pieces required credit criteria for approval are met. dealers can not only eliminate headaches, but to customers that fit the financing programs In bold print the mail pieces now clearly sell far more vehicles to far more people. available to the dealership. Moreover, mail state income requirements that may affect Finally a real pre- pieces can be designed with offers that the pre-approval. appeal to the selected demographic. The offers made in mail pieces have become approval sale where more and more aggressive attempting to Over the past 30 they really buy convince customers to visit dealerships. years of running the paper! Until Pre-approval sales have grown in popularity some of the largest now, nobody has over the last several years. Dealers have GM and Ford guaranteed to fund blanketed their markets with mail pieces operations in the every contract that bearing messages like, “Bad Credit, country and as a walks through the Divorce, No Credit, No Problem. You are PRE-APPROVED at Somewhere Motors.” dealer myself, I door with a pre- These messages are extremely appealing to have used every approval mail piece. the credit-challenged, and many respond. direct mail company - Robert Register, Tony Moore Unfortunately, a high percentage of these in the nation … if I Automotive in Huntsville, AL. haven’t used them people who were lead to believe that they were pre-approved are no longer approved when they reach the dealership. This is I have at least been A second benefit of a real pre-approval counterproductive for everyone involved. pitched by them, sale is the additional sales and gross profit. The customer is upset because he/she wasted and I have Þnally Consider a 5,000 piece pre-approval sale $10 in gas and his day off to visit your store. without a firm offer of credit. If 2 percent The sales person is upset because him/her found a real pre- of the people who receive the mail piece customer couldn’t get approved. And you, approval sale with visit the dealership, there will 100 ups. the dealer, just had 100 people in the store 300up Promotions. Unfortunately, only half will qualify, so from a 5,000-piece campaign and less than even with a 25 percent closing ratio on the half even qualified to buy a car. This is not - Earl Hudson, Earl Hudson Buick 50 qualified ups there will only be 12 sales. where it ends. A phone call from the Attorney Pontiac GMC in Shelbyville, TN. Now consider the same 5,000 piece pre- 20
  • 21.
    approval sale withall 5,000 pieces going to people who qualify. With the same 2 percent return and the same 100 ups, the results are doubled. Now all 100 ups are guaranteed to qualify, so closing 25 percent will now result in 25 sales. Using an average gross of $2500 per copy, the guaranteed pre-approval sale will gross $62,500. That is an additional $32,500 over the pre-approval sale without 5000 Piece Mailer the guarantee. Traditional Method When choosing a Ups company to partner 100 with for direct mail, Ups that the three most import Qualify 50 things to consider are. 1. The validity and Sales at 25% legality of the offer; it Close 12 is important to have a 0 10 20 30 40 50 60 70 80 90 100 real deal pre-approval sale. 2. Customer service is king. A partner in direct-mail marketing Improved Method must be able to respond quickly and Ups 100 effectively. 3. The price is also Ups that important. The better Qualify 100 the price, the greater return on investment. Sales at 25% Close 25 - Keith Sheldon, GM Courtesy 0 10 20 30 40 50 60 70 80 90 100 Chevrolet Sonic Automotive Group in Atlanta, GA. By partnering with a direct mail company that can guarantee the approval of every customer that walks into your dealership Gross ProÞt holding a mail piece, your dealership can avoid the problems created by the new laws Traditional governing pre-approval sales, sell more cars Method $30,000 and improve ROI at the same time. Improved Ben Elliott is the president and CEO of Method $62,500 300 Up Promotions. He can be contacted at 866.319.7337, or by e-mail at 0 10 20 30 40 50 60 70 80 90 100 belliott@autosuccess.biz. Thousands of Dollars august 2005 21
  • 22.
    TonyDupaquier And You Are ... If a customer comes unable to read any coded information. into a store and buys It is the responsibility of the dealership to a vehicle with a At the same time, the customer’s information conduct its own identity theft prevention. stolen identity, who is is instantly run through the most current Banks and lenders are not responsible for at fault? The person Specialty Designated National’s (SDN) list, ensuring the identity of a customer and do perpetrating the crime which is required of all U.S. businesses to not perform any background checks because is at fault – there is no doubt about that. ensure they do not conduct business with the majority of banks allow their computer However, the bigger question becomes, who anyone on the registry. systems to approve loans based on an is responsible for the loan? The dealership. algorithm, not human verification. As part of the process, it is recommended to If this situation has not yet happened to you, swipe the customer’s license prior to the test High-tech methods are not the only way to be prepared to send a lender a check or two drive. If no information is found on the back deal with today’s fraudulent customers and when it does. No section of the country or of the card, a dealership may not want this employees. By installing a few policies, type of franchise is immune to this rampantly person to test drive a vehicle for the sake of a dealership can reduce its risk; however, growing problem. the sales person’s security. someone must inspect these polices on a continuing basis. On TV, seemingly every week, the news reports on corporations losing customers’ High-tech For starters, become very familiar with the personal information or thieves hacking into computer systems. In June, a sales person methods are not driver’s licenses and identification cards issued in your state. Many states have a at a dealership in Texas was arrested for the only way to guide that you can get from the Department switching the identities of customers who had bad credit with the identities of people deal with today’s of Transportation that will help identify false cards. Always have a copy of a customer’s who had good credit, and the customers were fraudulent driver’s license in your permanent files for 100 percent unaware of the situation. customers and further reference. A copy of the customer’s Social Security card or other identification You and your dealership must take action employees. that displays this number should be in every By installing a now. deal jacket. There are several avenues a dealership few policies, a Require proof of income. This may be the dealership can can take to prevent identity fraud. It is lowest-tech method of checking identity important to note, though, that once a available. In many identity-theft cases, program is installed, it becomes everyone’s responsibility in the dealership to ensure reduce its risk; the thief used people with good credit that would ensure an “instant approval” from compliance. most lenders. When a sales manager or Once the customer has agreed to purchase business manager sees that a credit score The easiest way to ensure a customer’s a vehicle, the business manager or sales is high enough for approval, it becomes an identity is to use an online service that manager will look up the customer and instant contract. If a lender does not require electronically verifies personal information. insert his or her Social Security number proof of income, most business managers One such service is Valid Auto, which is by into the system. Once this is done, the will not ask for it. It is time for this practice far the most advanced product in the industry. information is verified on many levels. The to change in response to the identity theft The company started in the banking industry program starts by verifying the customer’s problem. Even if a thief does have a Social and in the past year expanded to meet the name, surnames, middle and maiden names. Security number and an ID to back up the needs of the automotive market. It also goes though an extensive background name being used, what other documentation check of the customer’s current and previous do they have available? Chances are, a thief What makes this program so effective addresses, and it determines if the birth cannot offer up a paycheck stub to verify the in the prevention of fraud is the way the date entered matches other data systems income he or she is claiming on the customer information is entered into the system and with similar information. Furthermore, the statement. the measures it goes through to ensure program checks to see if the person is using a person’s identity. Using a scanner and a Social Security number from a person who Dealerships have the ability to cover their an online connection, the system reads is deceased – a common ploy among identity assets with simple polices enforced by the magnetic strip on a driver’s license to thieves. everyone. pull a customer’s information – and even employees’ information, as well. Should a If all checks out, the system gives a clear Tony Dupaquier is the director of F&I training for American Financial & person attempt to present anything other than status on the customer. If a red X appears, Automotive Services Inc. He can be an authentic identification card, a red flag further investigation is required before contacted at 866.856.6754, or by e-mail at will be raised instantly when the computer is contracting this customer. tdupaquier@autosuccess.biz. 22
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    ScottJoseph How to Really Maximize an Employee Price Program Last month, I promised If you did chose to ignore them then the next profits by almost 100 percent by retaining you an article on how question is, why? an additional 5 percent of your customers. to drive traffic into Simply cutting defections in half will more your showroom during You have invested a small fortune to attract than double the average company’s growth your slowest days of and earn your customers’ business. Assuming rate. the week. they will automatically come back to you is a critical mistake. The most successful offers any direct mail Every now and then something comes along company can create are offers that are and you have to make adjustments - that time The numbers never lie. Thirteen percent of real, believable, credible and factual. The is now! your very satisfied customers defect every employee pricing programs are exactly that. year. In a typical company today, customers Right now many of you just experienced are defecting at a rate of 10 to 30 percent Think about it for a second. The reason dramatic increases in showroom traffic due per year. Sixty to 80 percent of customers employee price offers work so well has to the employee discount programs offered who defect to your competitors indicate that nothing to do with the actual money by the Big 3 manufacturers (at the time I just prior to their defection they were either involved. In some cases customers could wrote this, all the employee price programs satisfied or very satisfied. On average, U.S. actually save more money with previous were set to end on Aug. 1). So now that your companies now lose half their customers in rebate offers. Perception is critical. Most traffic challenge was temporarily solved and five years. consumers believe that employees always the manufacturers experienced nice market get the best price. share gains, the real question is, what did The reality is that 70 percent of the customers your dealership do to protect its previous lost defected due to a lack of attention or So, if your manufacturer is continuing to customers from the onslaught of ads targeted interest. offer an employee pricing program, then toward them from your direct competitors? immediately take steps to protect your If your answer is nothing then the short-term How is your offer better than your direct store’s most valuable asset - your previous focus for your store may have cost you a lot competitor’s? Why should these previous customers. If your manufacturer is not more than what you think you gained. The customers or potential future customers making these offers, you can still benefit next question is, what can you do from this give you the opportunity to earn their by creating an offer that gives consumers a point forward? business again? Do you really think a good chance to buy a vehicle for a price as if they satisfaction rating is enough? Customers can were an employee of your dealership. You had a supreme opportunity to be satisfied and not loyal. dramatically effect one of the only three If the Big 3 decide not to extend the offers ways to grow your business - grow your The bottom line: regardless of your past Aug. 1, then what do you plan to do customer base. You had a choice to make. satisfaction rating you must give your to keep your traffic levels high? If the You could sit back and try to capture a lot customer a reason to come back into your employee price programs proved anything of new business or you could have focused store and buy again. Direct mail is the most it is that a great offer and good advertising on your previous customers simultaneously. cost-effective way to reach your previous can generate a lot of traffic. Consumers have Think about it - if you added an additional customers - in fact it is one of the only ways. become callous to rebates. It’s nice to see 25 to 50 new customers in July but 25 to 50 I’ll give you a few stats: 56 percent say the manufacturers doing what direct mail of your previous customers decided to buy receiving mail is a real pleasure; 55 percent companies have promoted for years - an offer from your direct competitor, you haven’t look forward to discovering the mail they that is real, but more important, an offer the grown at all. receive; and 67 percent feel mail is more customer actually gets excited about. personal than the Internet. From the very moment GM, Ford and Everyone knows the value of keeping Chrysler announced its employee pricing With direct mail you can make offers your customers. My hope is that all of you made program, our business from their dealers competitors can’t. If your customer can get the decision to protect your most important nearly doubled. I’m not naïve, and I’m sure the employee price from any competing asset – your previous customers – during this J&L Marketing Inc. is not the only direct dealer then why should they visit you? With outstanding marketing campaign. If not, then mail company who has experienced this direct mail you can offer several reasons: it’s not too late. The next question you need surge in business. Which brings me to my chance to win cash or a new car, higher trade to answer is, what can you do right now so point - dealers were doing everything in amounts, a free gift as a thank you for the your customer gives you another opportunity their power to take advantage of this offer opportunity, etc. to sell them a car today? You can start by and make sure these customers visit their giving them a believable, credible and showroom. With the increase in advertising Plus, if you do have a great customer factual reason they should and the rest is out there, whether you like it or not, your satisfaction rating then just asking them to simple – ask them to buy again. customers were getting bombarded with give you the opportunity may be enough. every kind of advertising imaginable. Remember, 70 percent of the customers lost defect due to a lack of attention or interest. Scott Joseph is the president of J&L Did you get caught up in the excitement of Marketing Inc. He can be contacted all the “new” traffic and ignore your most Once again the numbers don’t lie. According at 866.429.6846, or by e-mail at important asset – your previous customers? to Harvard Business Review, you can boost sjoseph@autosuccess.biz. 24
  • 25.
    CarolMartin-Ardell Steering Out of Control If you have ever those of your employee. noticed an overall decrease in the • Find common ground when enthusiasm of your communicating to others. staff, it may be their You don’t want to speak a language no way of exhibiting one else understands. Whether you’re stress. Experts agree that tardiness, reserved or animated, you’ll need to absenteeism and negative attitudes spike find ways to connect with all of your when employees feel stressed about their employees -- even those who are very job. Stress almost always leads to some different from you. Also consider the form of bad judgment, apathy, injuries or individual personalities of your team poor health. It can take down even the most members before taking on someone unflappable individual. new. Feelings of resentment and demoralization are sure to follow if one Ensuring that each member of your team person clearly does not fit in or can’t is working under acceptable conditions can relate to what others say. ease anxieties. Differences in individual characteristics like personality, work • Assess your own work pace. pace and level of assertiveness must be If you tend to be quick, chances are considered when predicting whether certain you’ll want staff members who can job conditions will result in stress; what is keep up with you, deal with changes stressful for one person may not be stressful and stay flexible when it comes to for someone else. juggling priorities. However, if you’re the type who doesn’t believe in rushing Stress can be caused by poor communication and tends to systematically tackle one between a worker and a superior. Some task at a time, you’re bound to expect managers sometimes assume that each the same of your employees. one of their staff members is comfortable directing himself or herself. While some • Predetermine how much assistance subordinates might be self-sufficient, others you’re willing to give an employee. may seek direction and guidance; many People acclimate to their responsibilities want their leader to be available to answer and environments in various manners questions or point them in the right direction and at various speeds; some are more when problems arise. Confusion about the willing than others to take risks. expectations of a manager versus the needs Remember, though, that mistakes of an employee will cause stress. and wrong decisions can sometimes be made when individuals try to take If you are the type who focuses on end results, matters into their own hands. Can you thinks for yourself, acts independently and deal with imperfection? expects others to do so as well then look for workers who are self-governing and not so When people are feeling stressed on the job, timid or meticulous that they must be walked their behavior often becomes uncharacteristic. through everyday situations. The gregarious, enthusiastic worker who normally charms everyone might suddenly If you tend to control the details of most seem outspoken -- talking first, thinking later. situations and prefer to keep everyone on a Your ambitious, assertive sales person might short leash, avoid taking on employees who transform into a bold, overly aggressive crave freedom and want to resolve their own competitor, someone who intimidates people dilemmas. Be prepared to loosen up your or bullies them around. Watch for these management style when trying to see eye to behaviors, and be assured that if you have eye with a freedom-loving subordinate. some insight about your employees, you’ll be able to manage them more effectively and Try these tactics to help decrease everyone’s reduce environmental stress. stress on the job: • DeÞne each subordinate’s role. Be sure each employee knows what you Carol Martin-Ardell is a senior consultant do and do not expect. This will avoid with the Omnia Group. She can be confusion and help to steer off any contacted at 800.601.3216, or by e-mail at conflicts between your objectives and cmartin@autosuccess.biz. august 2005 25
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    AnthonyHall Fact Finding Facts lead to more Broad questions: vehicles. To make sure we find the one that sales and more profits. They give the customer the latitude to speak is best for you, is it OK if I get some basic You’ve heard this freely as they usually require a descriptive information? saying, “Information answer. Psychologically, it is a good idea is power.” This is one to begin with broad open-ended questions Circumstance questions: of the keys to success since the customer’s response will provide Do you use your vehicle for work? Do you in sales. Facts will: you with his or her’s frame of reference. tow a lot? • Predict objections Examples: “Tell me about the vehicle you You should always begin with broad • Eliminate objections are driving?” Or, “What brought you to the questions because you want to establish • Help better overcome objections dealership?” Also “Why are you looking to the customer’s frame of reference, if broad • Find out what is really important to replace your vehicle?” questions are not effective, you must switch the customer (hot buttons) to narrow questions but remember getting • Show that you have a true interest in the customer to provide relevant information • the customer’s wants and needs Build better rapport The key is for you is the purpose of the interview. To find areas of need, the customer must tell you what he • Personalize the presentation to listen during or she needs. Such as who, what, where, • • Help with better vehicle selection Eliminate misunderstandings the sales interview. when and why. • Establish control Listening enables A sales person must avoid asking the The key to fact finding is effective you to identify following questions because they will lead to negative responses and loss of control! questioning skills, backed up by active beneÞts from listening. The questions we ask and how we ask them are essential to fact finding. what you hear. • • Would you like to drive the car? What color do you desire? The sales person • Have you been shopping? The purpose of questioning is to develop an awareness of the customer’s actual needs often wants to sell • • What have you been offered? What do you think your trade is and priorities. All too often, sales people by doing all the worth? have a tendency to do all the talking and little or no listening. The key here is if the talking. • Would you take? • What is it going to take to do business salesperson is doing the talking, he/she never today? finds out what is important to the customer. Don’t make the mistake of trying to sell what Narrow questions: The key is for you to listen during the sales you think is important rather than taking the They are direct; they guide the customer to interview. Listening enables you to identify time to find out what is important to the a specific topic or need that the customer benefits from what you hear. The sales customer! may not have considered previously. They person often wants to sell by doing all the usually are answered in one or two words talking. This could be the biggest mistake a The objective of questioning is to enable us and are particularly effective when the sales person makes. Ask questions and listen to lead the customer to conclusions that are customer is not very talkative. By directing for needs and then turn features into benefits positive and consistent with our purpose as the sales presentation through the use of through the listening skills you’ve learned. opposed to giving the customer conclusions narrow questioning, you are able to receive that are not his own. All of us can relate to vital information about the customer’s Customers want you to help them buy! the fact that we much more readily accept needs. (Danger: Narrow questions thrown at our own ideas than someone else’s. the customer in rapid fire succession tend to I’ve seen sales people sell cars and buy them be intimidating and cause the customer to be back by running their mouth. While questioning in itself is not difficult, it on the defensive!) Narrow questions should requires some discipline because it represents be used to direct the customer’s attention to God gave you two ears and one mouth use a departure from our old established ways of a specific area of need or conversation, and them in proportion. doing things. With effort and practice, you to promote agreement. will be amazed at how well the customer responds to your showing an interest in him Example: “It sounds like reliability is an or her by asking the right kind of question. area of importance to your decision, is that Remember, we all like to talk about what is correct?” important to us. Anthony Hall is a training consultant Permission questions: at Ziegler Supersystems. He can be There are two types of questions we will be Would it be alright if I ask you a few contacted at 800.610.9047, or by e-mail at working with, they are broad and narrow. questions? We offer a wide variety of ahall@autosuccess.biz. 26
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    SeanWolfington Is it Marketing, the Manufacturer or Leadership Take a look at your A leader in the automotive industry emerges will immediately buy into a radical vision, dealership, think from being able to identify and serve the and some will join the show much more about other places fundamental needs, aspirations and values of slowly than others. The leader takes every you’ve worked and the customer. Leaders engage their customers opportunity and will use whatever works to other organizations and their stakeholders by: developing a convince others to own the vision. you know and ask vision, selling the vision, finding a way In order to create followers, the leader has to yourself what is it that fuels their success? forward and leading the change. be very careful in creating trust. The personal Is it market conditions? Inventory mix? integrity of the leader is a critical part of the Franchise number and type? Number of Developing the vision package they are selling. In effect, they are rooftops? Marketing strategy? While there Leadership starts with the development of a selling themselves as well as the vision. are many factors that contribute to whether vision, a view of the future that will excite a dealership will thrive or flounder in the both employees and customers. This vision Finding the way forward industry today, it’s leadership (or lack may be developed by the leader, by the To adapt and thrive in the ever-changing thereof) that will make or break a store. senior team or may emerge from a broad automotive industry, the leader is constantly series of discussions. The important factor is seeking the way forward. Some leaders Leadership is about implementing new ideas. the dealer and the leadership team buy into know the way and simply want others to Whether you’ve been in the business five it completely. follow them. Others do not have a ready years or 50, leaders learn quickly that it’s strategy, but will happily lead the exploration important to continually change themselves. Selling the vision of possible routes to success in bringing the They stay flexible and seek to continually It’s not enough to create the vision; you have vision to life. improve themselves and those around them. to sell it. Selling the vision isn’t something Leaders appeal to higher ideals and values of that happens once and bam it’s sold. Instead, The route forward may not be obvious and followers. In doing so, they model the values a leader finds that he or she is constantly may not be plotted in details, but with a clear themselves and use charismatic methods to selling and reselling the vision. This takes vision, the direction will always be known. attract people. energy and commitment, as few people Thus finding the way forward can be an ongoing process of course correction. Leading the charge The final stage is to remain up-front and These People Are Bad. central during the action. Leaders are always visible. They show by their attitudes and That's Good. actions how everyone else should behave. They also make continued efforts to motivate and rally their followers. People with bad credit aren't always bad people. They can be really good if you know how to find and process It is their unswerving commitment as much them. Last year we handled over as anything else that keeps people going, 2,500,000 Sub-Prime leads with particularly through the darker times when our VOISYSTM Loan By Phone, some may question whether the vision can Direct Mail and Internet ever be achieved. The leader seeks to infect programs. We guarantee our his or her followers again and again with a programs, performance and high level of commitment to the vision. results 100%. Call us now and learn One of our goals is to help dealers clarify how we can help you their vision, sell it to those around them and with Sub-Prime create a tactical plan to move the dealership prospects. You'll do forward. We leave it to them to lead the a better job and charge, and as a result, they find themselves generate extra profits! selling more cars, making more money and having more fun while the competition is left Good is good. in the dust. Bad can be awesome. 1-800-438-8642 www.voisys.com Sean WolÞngton is the owner of BZResults.com. He can be contacted at “We're the car guys helping car guys!” 866.802.5753, or by e-mail at swolÞngton@autosuccess.biz. 28
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    RandyBarone New Software Steps Up Pre-Owned ProÞtability You can experience an This is achieved with specially designed increase in efficiency software that provides a history of prior sales and more strategic on a particular model, which helps make the management of your customer more confident about purchasing pre-owned business the vehicle, as well as the transaction with technology that process overall. Because you have been will help you reach a greater profit potential. able to obtain highly accurate appraisals, New software systems can now minimize your customers feel more confident about the margin of error on such transactions as their decision at point of sale. Many appraisals and trade-ins, and give you the new versions of the software also offer tools you need to make the best inventory integrated CARFAX® reports that not only decisions for your market. appeal to customers, but protect you from unmentioned vehicle damage, as well. Getting the right inventory we’re this close to a cure How do these software packages achieve Your appraisal process becomes streamlined all of this? First, by enabling you to make to ensure a consistent presentation to the right offers on the right vehicles to customers every time. “Appraised vehicle ensure that your inventory has the greatest sheets” reflect professionalism and integrity appeal to potential buyers. This enables your -- qualities that customers will connect with dealership to sell more new cars and gain your dealership and subsequently discuss even more customers. among their families and friends. It’s a way to generate substantial referrals and repeat business with a click of a mouse. If a customer comes to a dealership Another important advantage is in terms of compliance for your dealership. It is the looking for a speciÞc most fair and accurate appraisal process car that is not on possible. If a customer decides to “private the lot, they don’t sell,” the market data provided on similar vehicles enables you to present fact-based have to be turned appraisals as an added benefit for them. away. You can scan Empowering dealer groups inventory at different For dealer groups with inventory sharing locations and give and multi-store supervision, the software Juvenile Diabetes them what they want. provides added empowerment. If a customer Mary Tyler Moore affects millions comes to a dealership looking for a specific International Chairman and causes long- car that is not on the lot, they don’t have to term complications like blindness The software’s appraisal tools make it less be turned away. You can scan inventory at likely you will lose sales to a competitor different locations and give them what they and kidney failure. Not to mention because you didn’t offer enough on trade-in want. Also, your appraisers are alerted if pain and worry no kid should have value. The software also creates an ideal the customer received an appraisal at an to live with. But we’re closer than inventory model that is customized for affiliated dealership. your dealership. This model indicates the ever to a cure. Your help makes best inventory to stock on the lot, and gives You also can exchange vehicles that are life-saving research possible. Call you accurate information on which vehicles not likely to sell on your lot for ones that 1.800.533.CURE or visit turn faster and make the dealership the most are. The system can be set up to enable www.jdrf.org. profit. The software takes the guesswork out groups to track “true” inventory time as a of deciding which trades to keep and which vehicle moves to associated group locations. to sell on the Internet, as well as which Still another advantage is the ability to vehicles to trade and which to send to an reduce wholesale losses significantly, while auction. increasing retail unit sales and profit. Driving customers to your pre-owned showcase Once the software has given you an ideal Randy Barone is vice president of sales at inventory model, and the inside knowledge American Auto Exchange Inc. a subsidiary and information on how to build that of JM Family Enterprises. He can be inventory, you can quickly enhance customer contacted at 800.901.3017, or by e-mail at relationships and increase your sales. rbarone@autosuccess.biz. august 2005 29
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    MarkTewart The Champion Coach Great managers view poor results. Managers and coaches can’t demonstrate. If the player believes the process themselves as coaches give a process to their players and expect can be executed properly and has evidential more than managers. the process to work without consistently proof that his or her coach or someone else There is an old adage: motivating and leading the players in the can do it in the way that is expected, the “Lead people and system. player will emotionally buy into the process. manage things.” There The coaches must get the commitment or is a fine line between creating and utilizing Think of your process like a machine. A buy-in for anything to work. Therefore, systems and processes and micromanaging machine is created to perform the desired coaches must have the trust and respect of details without emphasizing the power of function. Once you create the machine, you the players. There is also a second part of personal interaction. test it and know it will work. It fails when the the demonstration that must take place. The mechanics of the machine break or when the demonstration phase should move from the Good systems and processes should allow operator has an error in operating the machine. coach demonstrating to the player to the stage employees to raise their performance by Your business process is much the same. where the player performs the functions with giving them confidence in their direction close direction and inspection of the coach. and lessening the burden of the manager When you integrate a player into a system, and coach from having to constantly inform you must explain what they are to do. Next, The last step of the implementation is never- people of their expected actions. a coach must explain why the player must ending. This stage is continual coaching perform the tasks required utilizing the and inspection. Players must know they The problems and obstacles for mangers and desired process. When the why gets strong, are continually being coached, inspired and coaches happen when the process is elevated the how gets easy. If a player is clear about reviewed in their performance. over the players who utilize those systems and the why, the process will be performed with Recently, my daughter Erin secured a an improper implementation training process maximum results. summer job after her first year in college. is used. Great systems with poor people make She is employed by the J. Alexander chain for poor results. Great systems tied to poor The third step is to demonstrate how the of restaurants. The process employed by J. coaching of people in the system results in tasks and process work. Don’t just tell – Alexander’s is not only a good reference point for the steps of coaching that I have mentioned, but is a reference for excellence. Erin was interviewed and profiled by three different managers on three different Keep your customers occasions. When Erin was hired, she had to complete detailed training that would make for just pennies a day. many businesses green with envy. Erin had to train with a study guide consisting of more than 100 pages. Erin had to pass six written tests just to begin serving as a waitress or as they are called in their culture – champions. She had to be able to recite the company creed. Further training and testing was required to be Loyalty DriverTM by . able to serve on the weekends, which are their busiest days. Before being released to begin is email marketing made her position, Erin had to shadow another easy. Your own customized trained champion and then switch and have e-newsletter with profes- the experienced person trail her. Both Erin and I were amazed at the commitment to sionally written content process, training and implementation. and sophisticated report- ing including our unique Remember, the processes and dedication of J. Alexander’s produces a champion who buy signal allowing you to can serve and produce an experience that know when your customer is measured in small dollars. Your business is ready to buy. may produce a product and experience that is measured in many thousands of dollars. Based on your process, training, implementation and coaching, are you a coaching champion? CONTACT US TODAY at 866-964-NEWS (6397) ext.214 Mark Tewart is the president of Tewart Enterprises. He can be contacted at or email us at loyaltydriver@imninc.com 866.429.6844, or by e-mail at mtewart@autosuccess.biz. 30
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    PattiWood Smile and the World Smiles With You You’ve experienced you are tired of getting up at 3 in morning to cooperate. So even when the smile was it. You come into the and changing their diapers. A child’s smile a football field away the cave man noticing office with a real big has been shown to give the same level of him approach his cave knew the smile was smile on your face stimulation as eating 2,000 chocolate bars or safe and he shouldn’t be afraid. and suddenly people receiving $15,000 in cash. respond to you with Does a smile mean that someone is a smile and seem to treat you better. It’s a How do you smile or what deÞnes a smile? happy? well-researched social phenomenon. In fact, You can use more than 80 different facial No. There are more than 50 different types just looking at the photos of happy-faced muscles to smile, and we typically see it of smiles. We smile not only when we people has been shown to make a person as a spreading and upturning of the lips. It are happy but when we are feeling other brain waves go to a happier mode. And a changes the face significantly enough that emotions, as well. This may make it difficult seeing a smile can give you more pleasure it can be detected and recognized after 3 to tell what someone really means when they than money, sex or eating chocolate. In this seconds from a great distance, 300 feet, smile. According to Paul Ekman, the father article you will discover the answers to some or the length of a football field. Sounds of facial expression research, there are more perplexing questions about smiling. incredible doesn’t it? than a dozen different positive emotions expressed with various smiles. If you know When do you begin smiling? Why did our ancestors need to smile? what specific part of the face to look at you Though babies aren’t born smiling, about Though they did not attend a lot of cocktail can tell whether someone is really smiling three weeks after birth, babies give a fleeting parties where they needed to smile and from happiness or not. smile in response to touch and sound and make small talk, our cave man ancestors visual cues like the funny faces and sounds did run into other cave men they did not How can you tell if someone is giving a you tend to make. They start recognizing know. So they smiled as they approached a sincere smile? faces and smiling socially, that is smiling stranger to say, “I am harmless. Don’t pick Look at the eyes not the mouth. When to get you to smile and treat them well at up your spear and kill me.” In fact, it is the about eight to 12 weeks. Just about the time oldest form of expression to show a desire continued on page 36 august 2005 31
  • 32.
    PaulAccinno Leverage Your Ofßine Marketing Efforts “Just $199 down Here are some tips on how to accomplish the ad agency or the local newspaper. ... $199 a month ... this: These will show up fine with Adobe that’s $199 down ... Acrobat Reader. Make sure your Web and $199 a month ... Step 1: Have an initial meeting with site provider installs a simple button this is not a lease ... your dealer and general manager to download the Reader. TV and radio you own it just $199 to explain that you would like the commercials could be difficult based down and $199 a month,” Intones the radio dealership’s Web site to tie into on the location and bandwidth of your announcer on a local dealership’s latest radio the weekly and monthly dealership customers. spot. It most likely ends with ... “so visit us at promotions and to be sure that the www.dealershipname.com.” This is a good Web site URL is included in all forms Step 4: If you have specific offers being idea; to tie online marketing to “offline” of advertising. Make sure everyone advertised (like the one mentioned marketing. It’s called “synergy.” The only is on the same page when it comes to at the beginning of this article) be problem is if you went to the dealer’s Web marketing synergy for your Web site. sure they are included somewhere on site, there would most likely be no mention the Web site under weekly specials, of this special offer, let alone a listing of the Step 2: Ask to have a subsequent featured vehicles or special offers. Also, vehicles that qualify for this offer. meeting that includes your ad agency you should include your offline offers in and Web site provider. your responses to Internet leads. This is a challenge at most dealerships. Short There is no of updating the inventory on a regular basis, Step 5: Instruct your ad agency to have there is typically little else on a dealer’s Web commercials and ads drive customers site that is current or refers to offers and events that appear in newspaper, radio, TV question that to the Web site for details. “Only $199 down and $199 a month. See our Web and direct mail ads. having a well- site at www.dealershipname.com for specific details and to view our entire Part of the challenge is that Internet integrated inventory of these certified pre-owned, marketing managers are not always in the loop when late model low-mileage beauties.” In it comes to making marketing decisions and the old days, you would say “See this program plans for the dealership. These decisions are Sunday’s ad for details.” but why drive typically made with the dealer or general someone to a newspaper full of your manager and the ad agency. So getting the information you need to keep the Web site can increase competitor’s ads? Be sure to utilize this same strategy in all your offline current from a marketing perspective is a hit- or-miss proposition at best. The other factor your total mediums. that makes this difficult is the time it takes to dealership Step 6: Be diligent. Monitor your sales, not just do this properly. As we discussed in July’s Web site at least weekly to make sure article, “Maximize Your Internet Sales” that your ad agency and your Web site (page 20), the Internet manager’s main responsibility is to sell Internet appointments Internet sales. provider are communicating. Send them both quick e-mails if you find one end is not be a marketing manager. dropping the ball. Step 3: With the support of your There is no question that having a well- management team, explain to the ad If you set this process up correctly in your integrated marketing program can increase agency how important it is to include initial meetings, it can be a pretty painless your total dealership sales, not just Internet the dealership URL in all advertising and seamless experience that allows you to sales. TV commercials only last 30, 15 and that you want to leverage as many harness the significant monthly advertising or even 10 seconds. Radio commercials aspects of the dealership’s marketing expenditures of your dealership and typically last 60 or 30 seconds. Billboards efforts online. Ad agencies typically ultimately sell more vehicles on the Web. go by in a flash. There’s only so much room forget to include the URL in dealership on a direct mail piece, and you’re probably advertising. More specifically, when not in the newspaper every day. But your graphics are produced for print, you want Web site is available 24/7/365 and typically those same graphics sent to the Web site has unlimited space to provide details for provider in a digital format. You should special offers and campaign details. So using include those (tent sale graphics as an your Web site to support and leverage your example) on your homepage with some Paul Accinno is the preseident and CEO offline marketing efforts is a key factor in supporting copy. Also get a PDF file of of WorldDealer, Inc. He can be contacted maintaining a truly integrated marketing the weekly newspaper ads forwarded at 866.319.6284, or by e-mail at program. to your Web site provider from either paccinno@autosuccess.biz. 32
  • 33.
    1-888-Get-A-Car & www.getacar.com Only One Dealer Per Market Call Now for Exclusive Rights Details View TV Spots at www.getacar.com/dealers.htm Programs Include: Leads Advertising Assistance TV Spots Training for your Special Lenders Finance Department Bankruptcy Mailer Software STOP Paying per Lead! One Flat Rate For UNLIMITED LEADS! Get A Car, Inc. 800.790.1212 Joe Perot - President email: perot@getacar.com www.getacar.com
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    DanVogel CRM Evolution Advanced dealerships some challenges. Wouldn’t it be great if customer prospects, whether they walk in, that have invested a single tool could help dealerships take phone in, or come in through the Internet. in the excellent customers through the full cycle of pre- and The overall Web-based program should Customer Relationship post-sale CRM? Dealers across the country enable customized marketing campaigns M a n a g e m e n t would benefit from the cost savings of based on a wide selection of customer data (CRM) technologies available for both dealing with one vendor that can offer a points. Under the single interface, qualified lead management and customer retention single tool that will provide a single point of leads and timely service reminders will have experienced increased dealership data entry, and the ability to stay in contact be directed to the customer retention and closing ratios and retention rates. For some with all customers at any time. follow-up systems accordingly, so dealers dealerships, applying these tools has become can capitalize on promising opportunities. fundamental to helping manage daily Automotive CRM vendors will soon business. Beyond managing daily business, begin to address the challenges faced by Beyond an excellent retention and lead effective automotive CRM tools are vital to dealerships that are using multiple systems. management foundation, the following list the long-term customer life cycle where a In the near future we will start to see cutting- outlines added benefits that dealers can dealership must have access to, and stay in edge CRM vendors leading a shift to single- look forward to in future integrated CRM touch with, customers for several years. interface CRM solutions. The new solutions programs. will be designed to coordinate all outreach Although there are efficient lead to customers and prospects combining • One-time entry of data for prospects management and customer retention tools lead management with post-sale retention or customers, even across a available for dealers today, setting up and and integrating customer segmentation dealership group maintaining multiple programs can present with personalized communications across • Reduced administrative and billing multiple channels. duties • Flexibility between in-house and #1 Dealer An integrated solution will also allow dealerships to streamline administrative outsourced strategies depending on changes in season, budget and Success Variable? and accounting tasks by dealing with one vendor, accelerating outreach time, reducing staffing fluctuation • Option to outsource day-to-day • Franchise? • Location? staff hours dedicated to CRM and easing outreach functions to CRM vendor if transition and work flow during periods of faced with an immediate deficiency • Facility? • People? O high employee turnover. in staffing and/or expertise • Coordination of outreach across all Great people make the real difference! But with Forward-thinking dealers always have a departments before and after the all the demands on your time and the shortage of automotive professionals in the market, how do lot to risk and a lot to gain when adopting vehicle sale you build the right team that will determine your new technologies. Due to rising dealership dealership’s level of success? overheads, dealers are aware that efficiencies An effective CRM partner is vital to Automotive Careers, Inc. is a personnel search provided by single-vendor solutions can increasing a dealership’s bottom line. firm that specializes in automotive retail management positions. We have been assisting significantly impact their bottom lines. The By streamlining communications and dealers identify, hire and retain the best available dealerships at the forefront of the single- transactions, combined solutions should candidates to fit their dealership’s needs and solution trend will experience more control, grant dealers unmatched capabilities in culture since 1989. We have spent over 15 years searching out and monitoring the progress of less complication and better efficiency increasing dealership efficiencies, customer hundreds of automotive professionals and our data because their services, parts and sales, and loyalty, and extending the consumer base continues to grow every day. We also employ state of the art recruiting methods, including marketing efforts will be truly aligned under purchasing lifecycle. Most importantly, the Internet processes and blanket search techniques one program via a seamless point of entry. next wave of CRM tools will make the task to identify the top talent in the industry. of customer outreach easier and more cost- We are proud of the positive impact we have had Dealers should expect that CRM effective. on our clients’ businesses and our candidates’ careers. We welcome the opportunity to assist components will include advanced your dealership meet the demanding standards of customer segmentation with personalized the retail automotive industry. communications across multiple channels, Automotive Careers, Inc. including e-mail, telephone, Web sites and Dan Vogel is senior vice president and general manager of AVV Inc., a E-mail: dan@AutomotiveCareersInc.com print media. Lead management features subsidiary of Autobytel Inc. He can be Web site: www.AutomotiveCareersInc.com should include real-time tracking of contacted at 866.826.8907, or by e-mail at toll free: 866.318.8010 communication between dealership and all dvogel@autosuccess.biz. 34
  • 35.
    HOW TO STEPAHEAD OF YOUR COMPETITION USING THE EMPLOYEE PURCHASE PROGRAM Now is the best time to take advantage of the additional advertising the manufacturers are producing on your behalf. The Wolfington Group produces high performance sales events on behalf of franchised new car dealers across the country, with no outsourcing and no subcontractors. The Wolfington Group’s family of employees consists of over 100 automotive professionals dedicated to the success of your dealership’s events. • The Wolfington Group’s media and art teams will create and execute all advertising for your event. (with measurable results) • The Wolfington Group’s call center will field all incoming calls and effectively set appointments for your event. • The Wolfington Group’s team of 10 automotive professionals in your dealership for setup, hands-on training and complete execution of your event from start to finish. • The Wolfington Group’s compensation is based solely upon results. Currently Accepting August and September dates Current Wolfington Group market areas excluded. The Wolfington Group can be reached at our offices: 254 Western Avenue, Augusta, ME 04330 Toll Free 1.800.331.9361 Or visit our website: WWW.WOLFINGTONGROUP.COM Wolfington, a trusted name in the automotive industry since 1876.
  • 36.
    continued continued from page31 looking for a real smile we usually look for a Movement is key. and her voice not sounding truly happy. zygomatic smile because it uses the zygomatic If you are with a person as they smile, look major muscle that runs from the cheekbone for the wave. No, not the football stadium Does it pay to give real smiles? down at an angle to the corner of the lips. In a arm wave, the face wave. Real smiles seem Experts coded women’s smiles in their zygomatic, smile the lips turn up significantly to crest over the face like a wave, changing yearbook photos. Women who gave real at the corners and the cheeks seem to lift up. very rapidly from a small facial movement smiles were compared to those who didn’t. This smile makes us look happy. around the lips and lifting the sides of the Years later the real smiles overwhelmingly face and the eyes then the brows into a had happier lives. The lower part of the face, however, is easy broad, open expression. Put your hands flat for someone to manipulate, so the person over your face right now. Let your face relax. Do men and women smile differently or for could be giving a fake smile. Now visualize a time when you were really different reasons? happy or say out loud the word ‘money’ and You know the answer to this one. Any man The upper part of the face is key. We often smile. Did you feel your hands move up. who has heard there wife say, “Everything is look for the little wrinkles at the middle Did you also notice saying the word money fine” as she presses her lips together tightly outside corner of the eyes. Most people creates the wave, kind of funny isn’t it? with slightly raised corners knows that call them crow’s feet, but I call them happy women fake smiles more than men do. He feet. Michael Douglas inevitably has those Timing is important. knows he had better watch out. Women fake wrinkles when he has his wife on his arm. Just like other facial expressions, when smiles more than men do and are more aware Again that still may fool us. We still don’t the smile occurs the person’s words and of smiling. Though they are more likely to know just from crow’s feet if someone is emotions tell you if it is heartfelt. Typically, stop smiling in private. Men, as a gender, are happy or he or she wants to look happy. a person will feel happy, smile and then say uncomfortable around women who aren’t something happy. Feel - show - say. If you smiling. Men are often concerned that their Typically, when someone is really happy, ask them if they are in a good mood and they smiles will make them appear less powerful. their brow lowers and their eyes seem say, “Sure.’ Then they hesitate, then smile It makes sense as men with higher levels of smaller. So look specifically at the muscles they are not feeling that smiley. testosterone smile less often. It is rather sad that surround the eye socket. The muscles because if you smile less often you tend to around the outer part of the eyes are hard to Listen to the voice. have fewer close relationships with others. consciously control, only 10 percent of the The timbre of the voice of a real smile is population can do it. So a real smile, that is so distinctly different than a fake smile that Do Americans smile more or differently one from joy, contracts the circle of muscles the blind have no trouble distinguishing the than people in other cultures? around the eyes. You also need to look at the voice of someone giving a real smile. And Americans smile more often and are more brows overall and see if they lift from the you have probably experienced a cashier likely to simply part their lips and stretch the person’s normal resting position. giving a fake smile and ‘Have a nice day’ corners of their mouths to smile. Basically, we give a lot of fake smiles. Though the British have a retrained dignified smile they more likely than us to smile by pulling their lips back and upwards and exposing their lower teeth and doing the eye- changing real smile. The French rarely smile at a stranger, and tend to think Americans who smile all the time look ridiculous. But once they know you they will smile just as positively as anyone. In some cultures people will put their palm in front of their face to cover an embarrassing show of emotion given by a smile. In Korea, smiling can be seen as something shallow people do. In Indonesia the resting position of the face is very often a smile. Just as the cheshire cat left its mysterious smile behind when it left, the smile has a lasting effect on us. Next month you will learn how the smile effects your relationships with your coworkers, sales and customer service interactions. Patti Wood is the president of Communication Dynamics. She can be contacted at 800.849.3651, or by e-mail at pwood@autosuccess.biz. 36
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