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1. The 2009 Synergy Sessions - Details on page 19
June 2009

4. every department in your dealership.
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feature solution
leadership solution
marketing solution
sales & training solution
Increase Reporting Capabilities and Boost Relevancy and Response, Part 2
STILL STANDING: WHAT DO YOU DO NOW?
MOVING THE NEEDLE TOWARDS POSITIVE
EIGHT WORDS TO HELP YOU NEGOTIATE
TIME IS UP THE RED FLAG RULE IS HERE
Local Charity Golf Tournaments Reach Important Target Markets
How a Houston Internet Department Jumped 45 Spots in
CAR SALESMAN MAKES $200,000 IN
START REBUILDING RELATIONSHIPS
USING GOOGLE ANALYTICS WITH
WHAT WAS THEIR NAME AGAIN?
MAXIMIZE MARKETING DOLLARS
SELLING OUT OF A RECESSION
LEAPING TOWARDS THE TOP:
BEWARE OF FALSE PROFITS
WEB MERCHANDISING:
8TH HABIT LEADERSHIP:
How Does Your Staff Measure Up?
Is the Lemon Worth the Squeeze?
SALESPERSON QUIZ:
SURVIVE OR PERISH
MORE EFFECTIVELY
E-MAIL MARKETING
Internet Sales 20 Group XVII
Leading the Whole Person
THIS ECONOMY
MOMENTUM
Let’s Get Emotional
National Rankings
.
ROI
25
34
09
27
32
36
16
18
08
14
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28
24
10
By DalePollak
TomBear
MattBaker
KirkManzo
DrakeBaerresen
TimJames
PaulCummings
PatrickColbert
SeanStapleton
PeterMartin
SteveCottrell
MichaelThomas
DavidBook
StephenR.Covey
An Interview With
JoeHealy
SeanV.Bradley
MarcSmith
DougBurkert
2
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4
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pg1
pg1
June 2009
joe healy david book tim james

5. leadershipsolution StephenR.Covey PaulCummings
leadershipsolution
8TH HABIT LEADERSHIP: SURVIVE OR
PERISH
Leading the Whole Person
“Every
great
A few issues ago, I
said that too many
Many leaders make minimal use of the
capacity of their people, seeing them as “job
leader
attends to all four
What separates those
dealers who survive
We must devote ourselves to a bigger and
better purpose than profit above all else. The
managers are still stuck in an Industrial Age descriptions.” They fail to see each person dimensions of the and thrive from those who panic, pullback trappings of success have created a flawed
mindset that treats people as things. as a unique and precious asset, loaded with
untapped potential. whole person and ultimately perish? In my opinion, the
answer is simple. Dealers who still have that
approach where the money mattered more
than people. An era, in fact, where we were
Many think we put the Industrial Age behind if she hopes to truly lead twinge of excitement in their stomach when lulled into complacency by the shimmer and
us. Many think we’re in a new “Age of the By contrast, great leaders treat their people them — and to they get up everyday will make it through shine of our own achievements. We must
Knowledge Worker.” Many think the bad as whole people — not just as “human leverage their great these troubled times. Dealers who wake up realize that activity without accomplishment
old days of robotic workers and hierarchical resources.” The whole person has four capacities.” with a feeling of fear in their gut and worry is meaningless.
mindlessness are over. dimensions: the body (physical capability), in their mind will make decisions that will
the heart (passion), the mind (knowledge and lead them down a disastrous path. Which We need a fundamental change of
But these damaging attitudes persevere — in skills), and the soul (meaning and purpose). dealer group are you in? This is a tough — perspective and attitude. A change like this
some ways worse than ever. Consider these but fair — question for you to ask yourself. starts with you and cascades consistently
instances: A leader who neglects any of these four through your people to your customers into
• The fast-food worker whose cash dimensions inevitably treats people as Ask them about the four dimensions of their Earlier this year we hosted an amazing event your community. Yes, we must rekindle our
register blinks “too slow” if she takes things. If she neglects the hearts of her lives — at least once, and maybe often. Ask: at the House of Blues in New Orleans. More spirits and relentlessly pursue our goals and
too many seconds on an order people, she will never engage their passions than 1,700 dealers, automotive vendors dreams with a renewed level of passion.
The Body and manufacturers attended our event. I
• The nurse required to wear a “locator in their work. If she neglects their minds, she We must drive ourselves to a new level of
badge” that rings every few minutes will never capitalize on the innovative ideas • Is your “economic engine” in good had many conversations with clients and commitment. We must make a commitment
even when he is trying to calm a patient they could bring her. shape? industry-related people who all wanted the to do “whatever it takes” to win without
or put a child to sleep • Are your family’s needs being met? answer to the same question: What do you sacrificing our integrity and character. We
• The required “annual performance Every great leader attends to all four think is going to happen to our industry? must make a commitment to invest in our
The Heart Uncertainty has the ability to foster doubt
review” system that creates division, dimensions of the whole person if she hopes people even while we build our investment
destroys morale and motivates people to to truly lead them — and to leverage their • What have you always loved doing? and drain people of their confidence. When accounts. Yes, we must commit to becoming
leave great capacities. • What job-related opportunities are you times like this slap us in the face, people look real “difference makers” to others. Why?
passionate about? for hope and search for solutions. Because the truth is simple: If we want to
During the Industrial Age, a worker at least Captain Mike Abrashoff exemplifies a great So where do dealers find the hope they need make a difference in this world and in our
The Mind
had a supervisor to talk to. In many cases “8th-Habit” leader. He inherited a ship that to push through their doubts? Where do they communities and to our people, we can.
today supervision is done digitally and at was sinking — figuratively. When he took • What are you really good at?
• What opportunities do you see for find the confidence they need in order to
long distance. command of the USS Benfold, the Navy continue to believe in their business when We must have the spirit of the pioneer. We
warship had the worst performance record growth and development? must have the curiosity and ingenuity of
the bad news is swirling all around them?
Contrast this kind of dehumanizing in the fleet. Within a couple of years, the How can they prevail when so many around the inventor. We must have the strength and
The Spirit
management with the kind of leadership that Benfold turned in the best performance them fall and fail? Where will they find the resolve of the farmer. We must have the
truly leverages the worker as a whole person record in the fleet. • Do you have peace of conscience? same willingness to fail and continue to try
• What contribution would you love to inspiration they need in order to make the
— who values the minds, hearts and spirits right decisions in the coming months? How again and again of a great scientist. We must
of his people: How did he do it? By getting to know make here — something of real meaning have the initiative and drive of the world-
to you? can they drive their business forward when
• The pizzeria manager who huddles with his people— deeply and thoroughly. He they find themselves in the midst of continual class athlete. Most importantly we must
his employees once a week and asks, interviewed each sailor, asking about their predictions of doom and gloom? individually and collectively have passion for
“What could we do this week that we’ve hopes, dreams, frustrations, goals, likes and Think of the power of a leader who knows and pride in what we do. We must love the
never done before?” dislikes. He found that many wanted college these things about her people — about their I have been on the road since the House automobile business, the people we lead and
• The Navy captain who interviews each degrees; he arranged for long-distance untapped passions and skills. A leader who of Blues Event visiting with our clients. I the customers we serve.
sailor to find out about his or her most learning opportunities. He found they hated doesn’t know the answers to these questions have talked with people at every level of
cherished dreams in life painting the ship; he modified the deck is like the farmer who doesn’t know he is the business. My conversations have been Yes, the times are tough, but we are tougher.
• The division head who deeply plating to cut back on painting. He got their scratching out a living on top of an acre of full circle … from porters, service writers, It is in our moments of decision that our
understands what each of her people are brains working on doing things differently, diamonds. receptionists, sales professionals, department destiny is shaped. What decisions will you
really good at — and capitalizes on it better, faster. managers and dealer principals. As we make? Do you have the courage to reinvent
Stephen R. Covey, Ph.D., is co-founder of
FranklinCovey, and is the author of The 7 talked and discussed their current business your business model because you need
th
8 Habit Leadership starts with a deep th
To become an 8 Habit leader, you must Habits of Highly Effective People. He can results and future plans, I was encouraged to? This era is a brave new frontier that is
understanding of your people as whole practice the 8th Habit: Find your voice and be contacted at 866.892.6363, or by e- at what I uncovered. It was a simple and begging for a brave new approach. Bob and
people. help others find theirs. Hear their voices. mail at scovey@autosuccessonline.com. clear distinction. Where there is leadership Betty are gone. They have been replaced by a
and positive expectancy, I found hope, generation of socially aware, Internet savvy,
enthusiasm, excitement and energy. I also discerning, demanding, highly educated
found positive results. consumers. What will you do? How will you
do it? When will you get started?
I believe with every ounce of my being that
I know the answers to all of the questions
in this article. In fact, I know for certain Paul Cummings is president and CEO of
that success leaves evidence. I found such Paul Cummings Enterprises. He can be
contacted at 866.865.3171, or by e-mail at
evidence during my travels over the last pcummings@autosuccessonline.com.
100 days. We must bring an end to an era
0 where greed rules over common goodness. 0
8 9
www.autosuccessonline.com the #1 sales-improvement magazine for the automotive professional

6. marketingsolution SeanStapleton
SELLING OUT OF
A RECESSION
New car sales trends example, studies show that 70 percent vehicles from your dealership. A loyalty
are lower than industry of customers stop servicing their vehicle program is a tremendous resource for:
expectations for months now and consumer at the dealership they purchased from
confidence continues to be very low, but after the warranty runs out. Targeting Data Collection — A loyalty program is a
dealers across the country are holding their past customers who have an expiring great way to capture an e-mail address for
own by committing a larger share of their warranty with a relevant message is a regular, permission-based marketing.
marketing budgets to fixed operations. This huge revenue opportunity for the average Building A Brand — A loyalty program
re-allocation of marketing dollars is critical dealership. However, you must approach this is your way to differentiate your dealership
because of fewer new car sales. Independent opportunity with a “help me, not hunt me” from the competition for new customers, and
dealers and independent repair centers have message and communicate that your offer the competition from independents for your
had to become more aggressive in the market has tremendous benefit for them. current customers.
place, which puts more pressure on dealers Increased Customer Communication
to focus on fixed operations. Remember: Selling out of a recession requires getting — A loyalty program keeps your customer
Your best customer is the independent repair a better handle on the customer lifecycle. engaged and willing to accept your
center’s No. 1 target. The average first-year customer represents communication methods.
less revenue-producing potential than the Maintaining Profit Margins — A customer
In the past, dealers had the luxury of focusing customer in their third year of ownership. Do loyalty program helps you get away from
on short-term results with their advertising you know where each and every customer discounting for a better bottom line.
and marketing dollars. We are now in your DMS is at in their lifecycle? The Understanding your customers spending
experiencing uncharted economic conditions following is a sample checklist to determine habits — A loyalty program can even help
that require a focus on the long-term cost how well you know your customers. Which you dictate your customers spending because
of losing a current customer, and the high of your customers: you are tracking when and what they spend
costs of acquiring new customers. If it takes • have a warranty expiring in the next 3 their money on.
$10 to recruit a new customer, it should months?
only take $1, spent correctly, to keep an • purchased a warranty at the time of A customer rewards/loyalty program must
existing customer. If you are not sustaining purchase? be done right. Make sure it always adds and
the average new car revenue you did 12 to • are repeat sales customers? builds value. It has to be easy to use, not only
18 months ago, look at different areas of • have a lease expiring in 3 months? for the customer, but for your entire staff.
your dealership and different ways to make • buy a new vehicle every two years, three
up this gap. Most dealerships don’t have to years, etc.? Also, a quality customer reward/loyalty
look too far to find untapped incremental • referred a new sales customer to you that program is backed by a fully adopted cultural
revenue opportunities. One critical area of purchased a new vehicle? change in the dealership. You can’t just
opportunity that typically gets overlooked is • are due for a major service? talk about being different; you have to be
customer retention. Customer retention has • are repeat service customers? different. You have to be willing to invest
always been important, but the recession has • have transitioned into your service time, money and change to develop long-
compounded the significance of retaining department following the purchase of term customers. Long-term customers are the
your current customers. Statistics show the their vehicle? most profitable customers and that is the best
average customer retention with customers formula for selling out of a recession.
that have conducted a transaction with your If you don’t have the answers to those
questions readily available in a format If this information sounds overwhelming, it
dealership in the past 12 months is greater really isn’t. You may need some expert help,
than 60 percent. Dealerships that aren’t that is easy to understand, utilize and
track, it will be extremely challenging to but in the long run, selling out of a recession
attaining customer retention of 60 percent or is a simple process of adjustment, not an
better can significantly impact their bottom tap into those huge revenue-producing
opportunities. It makes good business sense overhaul. You can’t change the economy, but
line by improving this percentage by as little you can change your approach to the way you
as one percent. to run a diagnostic on your DMS and turn it
into an intelligent resource that enables you look at your business and do more than just
So how do you sell out of a recession? to make effective daily marketing decisions. survive. The adjustments mentioned are things
First and foremost, it doesn’t make a lot of that will help your dealership prosper in a
sense to quit spending marketing dollars all Want to make a huge impact on your down economy and thrive in a good economy.
together. In fact, with OEM issues impacting revenue? A Deloittle and Touche automotive Don’t just to survive, make the necessary
Tier 1 advertising budgets, there is more study showed that a five percent increase in changes to thrive today and in the future.
pressure on individual dealers to bridge customer loyalty in the service department
can mean a 25 percent increase in revenue For a customized analysis of your DMS,
the gap. Instead of drastically cutting your please contact me for further details.
marketing dollars, refine what you do with for the entire dealership. Develop a customer
those budgets and re-allocate them to other loyalty program for your dealership — 80
revenue-producing opportunities in your percent of customers who participate in Sean Stapleton is the executive vice
dealership. a rewards/loyalty program say their president of business development for
membership impacts their purchasing Visible Customer. He can be contacted at
Devote more attention to targeting and a decisions. Loyal customers drive higher 866.406.6337, or by e-mail at
sstapleton@autosuccessonline.com.
higher level of effort in developing relevant profits, are more likely to refer a friend or
1 messages to your targeted customer. For family and are more likely to purchase more
0
www.autosuccessonline.com