AutoSuccess July 2016 by AutoSuccess

2016

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2300 Hurstbourne Village Dr, Suite 1200 Louisville, KY 40299 / p 877.818.6620 / f 502.588.3170 / AutoSuccessOnline.com/AutoSuccessPodcast.com / info@autosuccessonline.com

NateTallarino III

WHAT IS THE NO. 1 KEY TO AUTOMOTIVE SALES SUCCESS?

16 MarkTewart

sales & training solutions

30 DealerPanel SALES AND SERVICE: There is No “I” in “Team”, PART TWO 40 AdamRobinson WHAT IS THE DIFFERENCE BETWEEN A PRODUCT SPECIALIST AND A SALESPERSON? 48 KeithShetterly YOUR CUSTOMER IS ON MOBILE, WHY AREN’T YOU? 50 SallyWhitesell THE GLARING MISTAKES OF A WELL-INTENTIONED SALES TEAM

Hannah Philpott, Media Director hannah@autosuccessonline.com

marketing solutions

Snapchat Can Teach Dealers About Advertising

32 NathanUsher WHAT WE HAVE HERE IS A FAILURE TO COMMUNICATE 36 ToddKatcher KEEPING CUSTOMERS FOCUSED WHILE THEY RELAX 38 JaySkowron VIDEO EMAIL: The Best Selling Tool You’re Not Using 42 SubiGhosh ELEMENTS OF SUCCESSFUL SOCIAL MEDIA POSTING: The Formula Right for You

Brian Ankney, Account Manager brian@autosuccessonline.com

Tips for Selling to Today’s Top Three Buyer Types

Susie Horne, Account Manager John Warner, Sales-Improvement Strategist shorne@autosuccessonline.com jwarner@autosuccessonline.com

08 SusanGivens NEW MAPS FOR THE ROAD TO THE SALE 24 JoeyLittle SOCIAL SHOPPERS: Driving the Future of Automotive MOBILE MOMENTS: What Google, Facebook and NancyLim

HOW TO ENGAGE MODERN CUSTOMERS: MoZahabi

INSURING YOUR INVENTORY IS GETTING MORE DIFFICULT DESPITE A SOFT MARKET

Dave Davis, Editor & Creative Strategist ddavis@autosuccessonline.com

SURVEY REVEALS FOUR KEYS TO INCREASED SUCCESS IN NEW VEHICLES

34 DalePollak

NEED FOR SPEED IS DRIVING CENTRALIZED RECON MANAGEMENT: A Prime Opportunity to Drive More Gross Profit for Groups as Few as Two Rooftops, PART ONE DennisMcGinn 20

Thomas Williams, Creative Director design@autosuccessonline.com

10 JordanBentley CALL RECORDING IS THE INGREDIENT YOU’VE BEEN MISSING FROM YOUR SALES TRAINING 14 ChristianSalazar READ THIS, FOLLOW IT, PICK UP AN EXTRA $100K

AutoSuccess Magazine is published monthly at 2300 Hurstbourne Village Dr, Suite 1200 Louisville, KY 40299; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccessonline.com. Subscription rate is $69 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other magazine to which this magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 2300 Hurstbourne Village Dr, Suite 1200 Louisville, KY 40299.

Susan Givens, Publisher sgivens1@autosuccessonline.com

leadership solutions

SCOTT WADE, Vice President of Villa Ford at Digital Dealer | August 10th | 10am

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SusanGivens

publisher of AutoSuccess \ sgivens1@autosuccessonline.com \

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NEW MAPS FOR THE ROAD TO THE SALE

“Change is the law of life. And those who look only to the past or present are certain to miss the future.” - John F. Kennedy

The game has changed. For decades, people knew their roles in the auto sales transaction. Dealers advertised via newspaper, billboard, television, radio, matchbook covers, etc. Buyers called the telephone number provided or visited various dealerships to see what was available. While there, the salesperson educated the buyer on vehicle features. In the negotiations, the salesperson would “work with” both his manager and the customer. In other words, control of the information flowed from the dealership to the consumer.

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in Dealer Satisfaction Two Years in a Row “We congratulate Autosoft on being recognized as one of the best-of-the-best by the people to whom their services count the most—the dealer community.” - DrivingSales CEO and Founder, Jared Hamilton

That auto sales landscape is no more. Now, the customer comes armed with information — sometimes more than the salesperson has. They know what features they want. They will not tolerate the “my manager says” game. While the telephone is still a critical arrow in the dealership quiver, there are so many other ways to communicate with customers — and customers to communicate with or about the dealership — that the very structure of the “road to the sale” has changed. To stay relevant, dealerships have to stay current. • Ask your staff how they shop — Formally or informally, ask your team how they make purchases, both online and in person. What works for them? Have they had any standout experiences you can adapt to your business? • Ask your customers how the process could be made better — People like to be asked their opinions. Even happy customers might suggest how the process at your dealership could be improved. And don’t be afraid to ask unhappy customers for their opinions; They might hold the keys to improvement. You might even salvage a relationship. • Network with other dealerships — Do you belong to a 20 Group? Are there dealerships outside of your competition zone you admire? Ask them to share ideas that work for them, and don’t be afraid to share some of your best practices. What’s good for a dealership is good for the industry. • Look outside the industry — Pay attention to your own shopping experiences. Notice when you’re having an easy time, or times when some deals aren’t worth your effort. A New Form for AutoSuccess

08 autosuccessonline.com

AutoSuccess is also changing with the times. Once a print-only publication, over the past few years we’ve expanded into online editions, podcasts, Webinars and other media. And, today, there’s one more way to get the information from us that you want in the way that works best for you. By texting “autosuccess” to 72727, you’ll be able to subscribe to a smartphone-friendly version of our magazine for free. We hope you’ll take advantage of having our publication as close to you as your phone.

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ls leadership solution

JordanBentley

national sales manager for Callbright \ 866.865.3175 \ jbentley@autosuccessonline.com

CALL RECORDING IS THE INGREDIENT YOU’VE BEEN MISSING FROM YOUR SALES TRAINING

Smoked ribs, chicken fajitas, Korean bulgogi — my mouth is watering just thinking about some of the dishes I’ve prepared for my friends and family. I love cooking. When I’m not performing my day-to-day duties overseeing a national sales team, I want to be in the kitchen preparing something awesome. I might be a Detroit boy, but give me a smoker and a few hours, and I can make some pretty good Texas barbecue. My homemade lasagna would make you shout “Mamma Mia!” Even my fried rice is pretty good, but I’m a little biased. I was cooking one of my favorite dishes recently when I realized preparing a highquality meal is a bit like what dealership managers go through when they’re trying to build a successful sales team that performs as well on the phones as it does on the sales floor. Cooking and developing sales talent both take time, effort and the right ingredients to make something special. Just as you can’t become a great cook without training and practice, taking your sales team from “average” to “amazing” takes a concerted effort to dig into the details, fix the mistakes and commit to the training process. You’re not throwing a frozen pizza in the oven here; you’re trying to make boeuf bourguignon.

surface and how good (or bad) things look. Basic sales figures might make it seem like everything is going well, but they don’t always tell the whole story. Recording your dealership’s incoming and outgoing calls can help you really dig into the seven-layer dip that is the performance of your reps when making sales calls.

a bad experience. Reviewing call recordings can help you uncover these lost leads and, with the help of an automatic call scanner or a call evaluation service, you can be notified of call handling mistakes almost as soon as they happen. Reacting in an appropriate amount of time can keep lost leads from getting mushy and ruining the sale. Commit to the Process

One of my favorite things to cook is my take on an old Carino’s Italian appetizer called Sicilian Fire Sticks. A bit like Italian egg rolls, Sicilian

“I was cooking one of my favorite dishes recently when I realized preparing a high-quality meal is a bit like what dealership managers go through when they’re trying to build a successful sales team that performs as well on the phones as it does on the sales floor. Cooking and developing sales talent both take time, effort and the right ingredients to make something special.”

Call recording is the ingredient that can help your sales team perform as well as a five-star chef. Here are the ways you should be using call recording to create an appetizing experience for your customers.

Recording and reviewing calls can turn up any number of potential issues, whether it’s lost leads that can be saved, reps who aren’t focusing on the right sales points or even situations where customers are repeatedly having problems with a single rep. Having an average sales team that does well enough is OK, but specialized training based on information gained from reviewing calls can help you take them from an average fast-food sandwich to a delicious chicken cordon bleu.

Don’t Forget the Taste Test

Remember That It’s All About Timing

I really enjoy cooking Italian food, and my pasta alla vodka is pretty phenomenal. The key to making a quality pasta dish is to get the timing right. If I don’t cook the pasta long enough, the penne for my pasta alla vodka can be rubbery and, according to some sources, potentially harmful to your intestines. If I cook it too long, the penne will turn to mush and will just fall apart in the sauce. My pasta alla vodka would become casserole alla vodka.

Just as it takes time and effort to make great Sicilian Fire Sticks, reviewing your recorded calls takes a similar commitment. Recording calls is a step in the right direction if you want to cook up a great sales team, but you won’t reach your end goal if you don’t take the time to review calls and use the information to improve your sales training methods. Be sure you or other members of your management team are spending some time each day reviewing calls, following up with lost leads and making notes for areas that need further training. If you don’t follow the recipe, the end result won’t be what you expected.

When you’re reviewing how your sales team’s performing, it might be easy to get distracted by the presentation — what you see on the

Timing is also crucial when it comes to saving lost leads. According to Lee Resources, 91 percent of callers will not call back if they had

Want to hear some more ideas for serving up sales success? Give me a call or email me at the information above.

Presentation is a big part of any cooking show, since TV chefs can only show you what a meal should look like and can’t directly let you taste it. (It’s 2016 — where’s my TV/ food teleportation device?) But looks aren’t everything. You might not be Bobby Flay, but cooking at home still lets you try some of those awesome dishes you see on TV and decide if they taste as good as they look. Taste is the true test of a dish’s quality.

Fire Sticks are a mix of meats, veggies, cheeses and alfredo sauce stuffed into a tortilla and fried. People ask me to cook them for parties all the time, but putting them together is a long process. Everything is cooked separately before you combine the mix, fill and seal the tortillas, and deep-fry them in batches. The payoff might be a great-tasting appetizer, but it takes time and effort to do them right.

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Personalization is the New Black How Digital Conversations are Redefining the Online Experience Lisandra Ramos

Driving Human Interaction Online

Behaviorally-Driven Technology

Call Now! Get a Quote. Lock In This e-Price Omotenashi is a cornerstone of Japanese In the online world, consumers leave digital Now! Save This Car. Value Your Trade Here. culture; it is to welcome someone into breadcrumbs wherever they go. Modern your business and be able to anticipate technology allows dealers to see, analyze The Internet can be a confusing place for their every need before they even realize automotive shoppers. Today’s car buyers are they need it. This selfless hospitality can forced to dive head-first into a sea of dealer be transferred online through a powerful Modern technology allows Websites compounded by multiple calls-to- personalized experience. dealers to see, analyze actions fragmenting their attention. There’s and leverage shopper data no stopping the information overload. When we combine robust technology with

What’s Old is New Again. Despite modern times, selling cars is still a relationship business grounded in trust and magnified by empathy within the communication channel. The most powerful marketing motivator is still WOM (Word of Mouth), proof that people want to buy from people, not technology alone — and that creating a memorable online experience is even more important now than it ever was before.

the human touch, we can move shoppers through their purchase journey quickly in a

When we combine robust technology with the human touch, we can move shoppers through their purchase journey quickly...

based on their behavior on Websites...

and leverage shopper data based on their behavior on Websites, such as:

Number of visits to the Website What vehicles a shopper has looked at or is looking at currently The shopper’s location in relevance to the dealership Click path through the site messaging platform they feel comfortable Whether the shopper is at work on an iPad or sitting using their smartphone and confident using to take the next step and to shop visit the dealership in person. Here’s how:

Now, what can you do with this information? online conversations allow shoppers to:

and email address from a contact form, there is no immediate value to the prospective Here’s a scenario: Sally is on your Website Get answers to their questions customer. They only sit, and wait. for the second time, has seen six new vehicle instantaneously VDPs so far, and has been looking at a white Ease their concerns during crucial times During a live chat or an SMS text exchange, Chevy Cruze for about three minutes now. someone is readily available to answer their in the purchasing journey questions when it matters most: Now. This Receive advice based on their unique crucial moment could be on the shopper’s Three important pieces of information we needs can infer about Sally are that she is engaged way to the competitor across the street! on your Website, she wants a new Chevy sedan, and she is interested in a white The secret is in the delivery. By tailoring the responses Chevy Cruze. to the unique wants and It can be difficult to create memorable needs of the consumer, the If your dealership currently offers a low customer experiences during digital representative allows the lease with zero down, a free gift card with conversations if you don’t have the time conversation to flow naturally. or resources to truly connect with your a test drive, or any other promotion on this vehicle, let Sally know. shoppers. Whether you outsource your chat service or manage it in-house, true personalization takes work and effort. But “Today only, get a $25 VISA gift card just for stopping in for a test drive. Chat with the outcome makes it all worth it. Personalized responses by your chat reps me now to get the details!” will allow you to not only build rapport with online shoppers but also establish an By deploying a behaviorally driven chat Whether you outsource your chat initial level of trust that will enable a more invitation, you will identify and readily service or manage it in-house, efficient and effective setup for following engage more ready-to-buy individuals while up with the shopper. true personalization takes work catering to their specific wants and needs and effort. at the moment they need it. Remember, although your sales and live chat teams interact with customers at Technology can humanize the online different stages of the buying process, experience. You just need to know how they ultimately want to accomplish the to use it! Get personal, get results. The Internet is same goal: to transition the shopper into more than just a platform, and dealers need the next buying stage. Both teams should to stop treating it like a one-way street. mirror one another and provide the quality Tear down the walls between online and assistance your dealership embodies. real life by connecting people to people.

Dynamic Conversations

Much like face-to-face encounters, digital In a time where businesses are still largely conversations should be dynamic and operated like machines, a small human touch can make a world of difference. unscripted. By tailoring the responses to the unique wants and needs of the consumer, the representative allows the conversation Traditional Web lead-generation tools such to flow naturally. as contact forms are static, boring and on an industry decline. While dealers can Unlike other lead-generation tools, dynamic collect a shopper’s name, phone number,

Memorable Experiences

ls leadership solution

ChristianSalazar

vice president of sales for Phone Ninjas \ 866.467.3861 \ csalazar@autosuccessonline.com

READ THIS, FOLLOW IT, PICK UP AN EXTRA $100K

Where does the car Kyle got in trade on Saturday at 4:30 go? Is there a specific spot or a system Kyle uses to let the appropriate person or team know that there is a vehicle ready for a used car inspection (UCI)? Unfortunately, the answer to this question is often vague, and it’s not written or tracked anywhere. I remember being in this exact situation. Our process was to key tag it up, put a small sticker in the window and throw it somewhere in the back. I’m sure some dealerships have long had a detailed process for reconditioning vehicles, but my dealership was not one of them. Is yours? The emphasis for the last 10 years has been on increasing the number of turns a dealership has on their inventory each year. At first, the focus was on buying the right vehicles and pricing them to move quickly. This was achieved using data that showed the days of inventory for each make and model in a dealer’s market. This allowed many dealers to go from a 90-day inventory strategy to a fraction of that. Many dealers were able to increase turns from four or five to 12 and beyond. Beyond sourcing, selecting and pricing the vehicles better lies another — maybe even greater — opportunity for improvement. The recon process for many is extremely unreliable and takes far too long. Most dealers don’t realize they have a problem because they don’t even measure it. It is not uncommon for this process to average eight to 15 days. What is this doing to your turns? Now, some of you reading this may think 15 days is crazy. “It takes us a day to detail a car,”

14 autosuccessonline.com/podcast

you might think. That, however, is the best-case scenario. What about the ones that go to a body shop? How many do you have sitting at Tire Town (that was the shop we used in Olathe, Kansas)? What about the one that needs parts not in stock? How quickly does your used car manager approve all of these things? All these issues add up and are costing you turns. Another way to think of this is: If it’s true that the quicker you sell a vehicle the more gross profit the deal makes, then it is also true that the longer it takes to offer the vehicle for sale the less gross you will make. Dealerships now know their holding cost — what is yours? Here’s how quickly things can add up: Take a dealer recon process of 11 days, a holding cost of $42/day, a 45-day turn and 120 used in stock: • 8.1 inventory turns per year • 81 sold per month • $23,814 monthly holding cost (compared to a four-day recon process) • $285,768 yearly because your recon process is not measured You can work the math for a 30-day turn and a four-day process. This is the reason why you have to put every person involved in the recon

process on a clock and hold them accountable. Trusting employees to make good decisions is crucial here. If you don’t have someone you trust in place to make money decisions, you have found a huge problem right there.

“Trusting employees to make good decisions is crucial here. If you don’t have someone you trust in place to make money decisions, you have found a huge problem right there.” At the very least, dealerships should be tracking their average days from trade in or auction purchase to the front line. Think about where your recon process is written down: What are the steps, who’s involved with what and, most important, who’s enforcing it? The best dealers are implementing systems and utilizing software to streamline the UCI process. All approvals, workflows and timelines can be tracked right from the palm of your hand. Employees love structure and knowing that they are doing a good job; this allows you the ability to give it to them. Just by tracking, you will be able to identify and eliminate bottlenecks. You will be able to get more work out of your employees and you’ll be able to replace vendors that don’t value your dealership’s time. Utilize software designed for this purpose; it’s inexpensive and you’ll be able to improve communication and thus speed up approvals and gain turns. If you are not measuring your UCI average time, you are likely missing several turns per year.

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MarkTewart

president of Tewart Enterprises \ mtewart@autosuccessonline.com \

@MarkTewart

WHAT IS THE NO. 1 KEY TO AUTOMOTIVE SALES SUCCESS?

If you asked 50 people who work in retail automotive what they believe is the No. 1 key to sales success, I bet you would get a lot of different answers. And, every answer you would receive could be considered right. Also, every single answer would probably have one common theme, and that theme would be commitment. I bet you would hear answers like the following: prospecting, time management, sales training, following the sales process, closing, enthusiasm, customer service, listening, hard work and many others. Every single one of those things is part of sales success. If you look at each one of these elements to success, however, you will see the thread of commitment woven into the fabric of the success. When I was just about a year into sales as a young guy, I had a month where I checked out mentally, physically and emotionally. I did almost nothing and sold almost nothing. My GSM brought me into his office and stared at me; this was incredibly intimidating. He then said the following, which stuck with me forever: “Mark, you are sucking up my air conditioning!” Wow! How do you respond to that?

16 read, listen, watch, share, succeed.

He told me I was smart and talented, but I was not committed. He said that I had to make a commitment by 5 o’clock, or that it would be my last day. He told me I could not lie to him because he would know it without a doubt. “Come back to my office at 5,” he said, “and give me your answer.” He put me on a dime and I had to do some soul searching. I came back at 5 o’clock and told him that I was in and he would never have to fire me because if I weren’t doing the job, I would quit. The next month, I had my best month. The reason was simple: commitment. Once I made a true commitment, my attitude, planning, work habits, prospecting and everything else

changed. Commitment gives you leverage on yourself. There is an old saying: “When the ‘why’ gets strong, the ‘how’ gets easy.” Get busy finding your “why” and you will find commitment. For me, up to that point, I was not committed to the industry because I did not see me being in the industry long term and, truth be told, I think up to that point, I was a little embarrassed to be a car salesperson. I somehow thought it was beneath me. I wonder how many people feel this way and won’t admit it. The commitment changed that for me, and it can for you as well. If you are in a ditch mentally, emotionally and with the results you are getting, then my advice is to “stop digging.” Take a step back, evaluate who you are, what you want and where the gaps are between the two and why. Until you take this step, nothing else will matter. Commitment is the seed of success for everything.

“Once I made a true commitment, my attitude, planning, work habits, prospecting and everything else changed.”

ls leadership solution

NateTallarino III

certified risk manager and COO of Anthony Grace Risk Management Services 866.618.9053 \ ntallarino@autosuccessonline.com

INSURING YOUR INVENTORY IS GETTING MORE DIFFICULT DESPITE A SOFT MARKET

You might know that the insurance market “softens” after a “hard” market has pushed rates beyond long-term sustainable levels and the high profitability of the industry has attracted more capital-seeking superior returns. This increase normally spurs competition. However, in recent years, actuarial science and underwriting improvements have given insurance carriers appetites that are much more finicky. While dealers are starting to see a softening of liability rates in many states, and even a reduction in premiums for the coverage on buildings and contents, the rolling stock inventory is an entirely different matter. Those of you with car lots in parts of the country that see relatively little severe weather, or maybe have your inventory insured with your factory floor plan, have even started to see an increase on your statement as it relates to insurance costs. This is driven not so much by you, but by your peers who are on the coast, or in a flood zone or in an area of the country that sees hail every spring and summer. Not helping matters is the dealers’ seeming love of the “hail sale” — this has not been lost on those who price and underwrite the “dealers open lot” coverage, as it is sometimes referred to. Just look at the Internet to see dealers in Texas, Colorado or a number of Midwest states whose advertisements have slogans such as “Hail of a Sale.” Dealerships have begun ad campaigns and created special pages on their Websites targeting deal-hungry drivers who don’t mind a crack in the window, a broken headlight or some dings on the roof. Managers say they’re offering discounts ranging

“While dealers are starting to see a softening of liability rates in many states, and even a reduction in premiums for the coverage on buildings and contents, the rolling stock inventory is an entirely different matter.” from about $100 to $10,000 in an effort to recoup some of the money they’ve lost on insurance deductibles. In the insurance world, we call that “recovery” and the actuaries have taken notice. The days of a $500 deductible per car, with a “cap” of $2,500 per loss, are gone in most parts of the country. Now, many dealers are faced with $1,000 to $2,500 per car with no cap per loss. This means if you have damage to 100 cars and a $1,000 per car deductible — you guessed it — $100,000 is deducted from the loss. In the open insurance market, carriers that offer coverage for your rolling stock inventory are utilizing fancy software (such as Risk Meter or CoverageKeeper) that calculates a percentage of likelihood of a loss based on your construction type, age of buildings, local crime data, ZIP code, flood mapping, etc. And,

in some areas, they make pricing decisions at levels as close as the street your lot is located on. These programs are being relied upon heavily in premium and rating decisions all over the country. Even the factory programs are starting to get pickier and price according to risk; after all, many of them are buying reinsurance based on that same data. What can you do to make sure you are covered correctly before and after a loss? 1. Consider the best program you can afford first. I tell my clients to buy based on their appetite for risk. If they pay for the lower deductible now, they can always use a higher deductible as a bargaining chip during the “post claim” renewal time. 2. Really shop around. It is not just better

coverage; it may be rate savings, too. Think you have no choice but the factory because of where you are located? Check around. You may find an open-market program you can live with, which allows you the flexibility to then go seek outside floor financing. We have seen dealers save on the interest from the factory by utilizing both outside floor providers and outside insurance.

3. Consider your sources. Many of the dealers

we speak to have no idea how many options they have out there. Maybe it is because they have a captive insurance agent who only represents the one carrier he or she works with. Maybe they have been complacent. Network and ask your peers.

Choose Hörmann High Performance Doors for

Service and Shop Entrance & Exit Doorways We have the solutions Hörmann High Performance Doors Contact us today ▶1-800-365-3667 / 1-724-385-9150 / www.hormann-flexon.com / info@hormann-flexon.com

18 autosuccessonline.com

CONVERSICA: THE PERFECT COMPLEMENT TO ANY AUTOMOTIVE SALES PROCESS

With the same number of leads, two dealers can have dramatically different sales results based on process, technology, and their human resources. Managers of automotive dealerships know that despite investing in sales training and perfecting CRM workflows, human nature will always impact final sales results.

DECEMB

It’s natural for sales associates to choose to work a “fresh” lead in the CRM. In the auto industry, this behavior is called “cherry-picking,” and it is costing dealers thousands of dollars each month in lost auto sale. Our research has also discovered another factor hindering sales conversion: a technical issue that we have not publicly discussed to the degree that would satisfy our concerns: email deliverability. What if the emails that dealers thought were being delivered to customers, were not consistently being delivered? Our research into assisting dealers on how to increases sales by maximizing all their Internet sales leads led us to Conversica. We encourage you to learn more about this product. Request our 25 page research report and we will email a full color PDF to you immediately.

DOWNLOAD THE FULL REPORT TODAY! www.con.ai/pcg-report +1 (888) 778 1004

info@conversica.com

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DennisMcGinn

founder & CEO of Rapid Recon \ 866.268.3582 \ dmcginn@autosuccessonline.com

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NEED FOR SPEED IS DRIVING CENTRALIZED RECON MANAGEMENT: A Prime Opportunity to Drive More Gross Profit for Groups as Few as Two Rooftops

The need for speed through the vehicle reconditioning process — while improving efficiency and increasing volume — makes having centrally managed recon imperative in today’s automotive retail market. This centralized recon model is ideal for groups with as few as two stores within a 40-mile radius of one another. Beyond that, vehicle transportation to and from the recon center can erode advantages. The goal of a production-driven recon operation is to reduce Time-to-Market (TTM), the days it takes to recondition vehicles from the time they are received to their delivery to the front line. Shave six recon days off 100 units sold a month and the gain is $19,200 a month in reduced holding costs alone — or more than $230,000 a year. The gain in gross as well is almost immeasurable when units are frontline ready for more of their magical 30-day optimal margin zone. A centralized recon operation places under one roof parts, mechanical inspection and repair, detail, PDR and, often, previously sublet work including body repair and glass. How leadership will be determined is a process each dealership must work through, but we’re learning centralized shops that put in place a leader with authority and responsibility, with lateral accountability to other key managers, seems the most advantageous structure to optimize results.

determination and commitment to bring it about for your group will be significant. Centralized reconditioning will: • Speed cars with greater accountability and savings through recon • Radically change how you process and track vehicles • Add inventory turns that make the lot more profitable per square foot. • Flow substantial retained gross and cost savings to the bottom line • Reduce employee turnover We are not the only ones thinking that centralized reconditioning for groups makes absolute sense. Forward-thinking dealers, GMs and their used car, service and recon managers see the advantage. Now that automated recon workflow software has proven its reputation for enabling radical reconditioning improvements, central recon’s potential opportunities are within reach. Experience with dealers from Ricart Automotive Group to the Larry H.

These market influences make centralized reconditioning management a matter of good judgment today: • Time kills — or time creates opportunity, depending on how time is managed. Centralized management, bringing decision making, scheduling and accountability under one roof, will save time and increase gross profitability • Margin squeeze — or margin opportunity, depending on how efficiently recon can get cars from the time of acquisition to frontline readiness • Recall madness — or recall opportunity, depending on the system in place to catch all open safety recalls before vehicles ever get to the lot • Who’s on first? — or know where every vehicle is in your recon process, so time management delivers speedier front-line readiness without finger pointing Delays, bottlenecks, forgotten cars in back lots or at sublets and delayed approval communications kill used car gross. Every day a car travels from acquisition to retail sold carries a cost with it called holding cost. This cost is each vehicle’s share of the floorplan, advertising and general overhead, which NCM Associates studies find is on average $32 per day per vehicle. It can be north of $50 for some brands and highline models.

Check out the graphic on the right. Here’s what that org chart looks like: Groups who bring multistore recon operations under a centralized roof with its own operating management, responsibilities and authorities put the right focus on this critical profit maker for today’s modern dealership groups. Be forewarned this change will not be a cakewalk. Be sure that, given the upside for centralized reconditioning, the effort,

Miller Group to the Morrie’s Automotive Group makes abundantly clear centralized reconditioning is a winner.

An example of an optimized TimeTo-Market Organization chart

Next month, we’ll take an in-depth look at the benefits and challenges involved in the centralized reconditioning model, and how best to chart the most-profitable course of action.

read, listen, watch, share, SUCCEED.

20 read, listen, watch, share, succeed.

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s&ts sales & training solution

MoZahabi

director of product consulting for VinSolutions \ mzahabi@autosuccessonline.com \

@MoZahabi

HOW TO ENGAGE MODERN CUSTOMERS: Tips for Selling to Today’s Top Three Buyer Types

When I talk to dealers and other automotive professionals — at trade shows, in Webinars, at dealerships, you name it — I’m often asked about the modern customer. “Who is the modern customer? How do I know if I’m interacting with one, and how do I sell to them?” The truthful answer is: There isn’t one modern customer. Advances in technology and availability of information have added so much more complexity to every dealership’s customer base. Modern customers range from decisive to choosy, talkative to elusive and informed to super-informed. What makes them “modern” is their ability to define their own car-shopping experience. They have a foot in the game now. So, when it comes to selling to modern customers, your best strategy is to be agile. Your sales tactics have to evolve; you have to treat these customers as individuals based on their individual needs — to keep them engaged, maintain their trust and have positive experiences that turn into repeat sales and increase service opportunities. This is the direction technology has been steered toward for the last couple of years in particular: There’s a big push to segment your database, create targeted communications at key moments and automate your customer nurturing as much as possible. But technology doesn’t do it all, and digital communications aren’t enough; you need modern, segmented interpersonal tactics too. Today, let’s focus on what I call the big three: These customers come into every showroom at some point. Let’s talk about how to talk to each of them for the best possible outcomes: 1. Mr. (or Ms.) Maybe

You spot him browsing your lot and ask how you can help, only to hear the hallmark catchphrase: “I’m just looking.” You know that can’t be quite right; today’s customers are ready to buy before they visit dealerships — averaging more than 14 hours searching for their vehicle, which includes only one or two in-person visits before purchase.1 “I’m just looking” really means they’re just looking for that last bit of help they need. They need you to boost their confidence in the big decision they’re about to

22 autosuccessonline.com/videos

make. Their indecisiveness might slow down a process you’d like to speed up, but don’t give in to that urge. You’ll get your sale, and probably referrals or even repeat sales, if you work with Mr. Maybe on his terms — showing him your patience and respect along the way. What to do: Perform a needs analysis to make sure you understand what’s standing in the way of a decision, restating the customer’s concerns to show you get it. And while honesty is the best policy for every customer, it’s essential with Mr. Maybe; you have to strive to become a trusted authority. Selling to Mr. Maybe takes extra time and effort, but once he sees you’re helping him make the best possible purchase, he’ll be happy to move things along. If you get it right with Mr. Maybe, you’ll get: increased customer loyalty and repeat sales. 2. Know-It-All

She thinks she knows more about your cars than you do — and she might, because KnowIt-Alls love doing their research. They love controlling the sales cycle, as well, and they question everything you tell them along the way. Simply put, this shopper knows what she wants; she’s one of the 52 percent of all buyers who test drive only one vehicle before buying.2 She’s in your dealership with a one-track mind; she doesn’t want you to pick her brain and try to steer her in any different direction than the one she’s already on. What to do: It’s tempting to fall back on what you’ve been taught and fight for control of the sale, but try a different tactic. You need to take a shoulder-to-shoulder approach with Know-ItAll, to show her you’re as committed as she is to getting what she wants. Try to avoid missteps and always be transparent; if not, she will catch you in the act. (I’m talking about the essentials she’s

already spent time researching: your available offers, her vehicle’s available features, you name it. No promises until you’re certain you know your stuff.) It’s her show — let her run it. She’ll lead you right to the revenue you hope for. If you get it right with Know-It-All, you’ll get: increased customer satisfaction and more referral traffic. 3. Gen Y and Millennials

He’s usually hiding behind his phone, but still, he’s unmistakable: He’s your Gen Y/Millennial, and he’s one of your most important customer types. Extremely savvy, selective and informed, he makes for a great customer — except for one thing. Unlike most of us, the Gen Y/ Millennial doesn’t consider it a priority to have a car. The number of driver’s licenses in the 16- to 44-year-old segment has been on a steady decline since 1983,3 and it’s especially pronounced for young adults. They’re finding other ways to get around. So, why are they such important customers? Because they represent a huge portion of today’s buyers and are highly influential on their peers. A good experience with one Millennial shopper leads to more. What to do: The Millennial wants to be involved — he’s used to having a role in everything that interests him. He can comment, question and influence everything, so his expectations are the same for the car ownership experience. So involve him, and stay involved yourself. Take advantage of his favorite tools and technology: blogs, social media, text messaging and tablets. Show him you’re an engaged member of the automotive community, and that’ll mean something to him. He’ll even set the phone down and do business. If you get it right with a Millennial, you’ll get: a bigger, better footprint in this key generation of car buyers. Don’t let challenging modern buyers give you headaches. With the right tactics, you can connect well with all of them.

2016 Car Buyer Journey Study, AutoTrader and Kelley Blue Book 2016 Car Buyer Journey Study, AutoTrader and Kelley Blue Book 3 Michael Sivak and Brandon Schoettle, University of Michigan Transportation Research Institute 1 2

ms marketing solution

JoeyLittle

director of digital & social engagement for AutoAlert \ 866.515.6516 \ jlittle@autosuccessonline.com

SOCIAL SHOPPERS: Driving the Future of Automotive

Modern dealerships know the importance of social selling, and that’s because today’s shoppers are primarily social shoppers. Not only do they research and shop online, but they receive a good deal of their insights and opinions from online social sites, review forums and word-of-mouth referrals. All of these things add up to social shopping, placing the responsibility of getting social squarely on the shoulders of dealerships. Defining Social Shoppers

Gone are the days of flipping through the Sunday paper and looking through weekly store ads. Sure, they’re still available, but according to just about any source, consumers prefer trusting friends, acquaintances and even online connections more than brand advertising alone. The same goes for dealerships; rather than wandering onto several lots and browsing, shoppers are increasingly turning to digital devices to do preliminary shopping research. Because people now shop in a vastly different way, businesses — dealerships included — must change how and when they connect with consumers in order to succeed in the modern marketplace. We live in an age of “Buy” buttons, “Buyable Pins,” 24/7 shopping accessibility and similar conveniences. And, while dealerships may not be able to offer shoppers these specific innovations, they can begin to meet them with opportunities that appeal to their needs for expediency, in-the-moment information and convenience. Thanks to technology, shoppers can get just about anything they want, when they want it and for the price they want to pay — benefits that are tough to beat. Online consumers are challenging traditional shopping channels, pushing dealerships to expand into terrain they may not have previously dominated. They are looking for innovation, personalized experiences and transparency; and they aren’t afraid to look

around for brands that can offer those things. That doesn’t mean, however, that dealerships need to be left behind. Instead, shoppers are throwing down a challenge for the automotive industry. Dealerships that are able to meet consumers earlier in their buying journeys and add value to their overall experiences will excel in the modern marketplace. Meeting the Shopper Challenge

You may ask yourself, “How am I supposed to sell cars online?” And that’s a valid question. However, it all goes back to the fact that social consumers are the driving force behind social researching and buying changes. Shoppers have changed, and they are looking for dealerships with a strong online social presence in order to connect and build relationships with them. Here’s how: • Be findable. Before you can share valuable information and interact with consumers, you’ll need to extend your reach and ensure shoppers know where to find you online. Do research, learn about your audience and build your platform with your target market in mind. • Offer value. Online consumers will gravitate toward you when you provide relevant, intriguing content that positions your dealership as the expert in the industry. Be the first to answer important questions, tackle unique topics and add value to the conversation — and your followers will continue to seek you out.

• Reach out. In addition to sharing quality content, look for influencers who can help get the word out about your dealership. Follow, interact with and share insights from others who are proponents of your dealership, and keep an eye out for potential brand advocates who can spread the word about your dealership. • Stay the course. Building an online social network requires dedication and commitment. Your online followers look forward to building relationships with you, so schedule time to interact regularly with them. By doing so, you’ll earn more brand recognition for your dealership. • Socialize. It may sound redundant, but social media is all about being social. Don’t log on just long enough to throw content out to your followers and then exit. Instead, hang around, interact and have meaningful conversations with consumers who are likely discussing your content and your dealership via social media. The more present and interactive you are, the more you’ll stand out as a leader in the industry. Today’s customers have changed the landscape for dealerships. Not only are they looking for the best deals and the best vehicle choices, but they’re also able to begin their research well before they ever set foot on a lot. For dealerships, this has created a challenge, but as everyone knows, the automotive industry has always been known for its innovative spirit and drive. With a focus on the new buying journeys of today’s consumers and a commitment to building strong social selling platforms, dealerships can successfully adapt their selling practices to match the needs of today’s modern shoppers.

SOCIAL We want to feature YOU! Send us a quality photo of you with AutoSuccess, along with a brief testimonial and we’ll post it!

email your entry to iloveAS@autosuccessonline.com today.

24 read, listen, watch, share, succeed.

CONNECT THE DOTS TO INCREASED REVENUE. WE’RE THE ANSWER. In a business world filled with distractions and chaos, there is one thing that is critical, and that is to connect. When you connect with your customers, you do more than talk, you create a positive customer relationship that leads to continued business and repeat revenue. When you connect open slots in your shop to customers needing repair, you’ve created a great customer experience, and more revenue. And when dealerships connect to the most relevant information on a customer’s vehicle captured through our process, business intelligence has now connected you to even more revenue. Begin connecting today by engaging Traver Connect’s robust Automotive Service BDC. Now, every service call will be answered, OEM recommended services will be presented, and an increase in service appointments will be made. This Service BDC helps absorption, increases your average repair ticket, and enhances your overall customer experience.

To connect is to succeed, and we will help you do it. Afterall, ‘connect’ is our last name.

For a free phone survey, contact us today: 855.891.0010 • TraverConnect.com

ms marketing solution

NancyLim

director of marketing for PureCars \ 866.407.3104 \ nlim@autosuccessonline.com

MOBILE MOMENTS: What Google, Facebook and Snapchat Can Teach Dealers About Advertising

The world is shifting to mobile, and the automotive industry is feeling this impact as much as any other. According to a recent survey by eBay Motors, about one in five consumers say they are likely to use a mobile or wearable device to research and buy a vehicle in the future. And this trend holds especially true as Millennials begin to purchase vehicles. Half of Millennials who bought a car in 2014 used their tablets or phones to either research or purchase.

Snapchat: Video Sparks Engagement

As today’s mobile users grow more accustomed to researching and purchasing products via mobile — especially major life purchases like automobiles — dealers can no longer afford to ignore digital marketing.

The evolution and success of Snapchat proves just how much influence video can have on mobile users today. Dealers can mimic Snapchat’s strategies by incorporating video into marketing campaigns.

Big players like Google, Facebook and Snapchat have all made recent announcements that reflect how mobile is changing the way brands reach consumers. For dealers unfamiliar with mobile, these big moves can help shape future advertising strategies. Automobile dealers will be smart to incorporate some of the following digital marketing strategies to reach today’s mobile-driven car buyers. Google: Location-Based Advertising

Local searches are growing 50 percent faster than mobile searches overall. To capitalize on this, Google now serves Google Maps userpromoted branded pins based on location while in the application. The idea is to provide users with branded information they can act on in real time. Dealers can — and should — adopt similar strategies. For example, a dealer could send a customer discounts for oil changes or other fixed operations when he or she is within a certain radius of the dealership. And, if these promotions are combined with this customer’s specific browsing behavior (i.e. searches for car maintenance prices), dealers are able to provide highly relevant and personalized content at the right time. Dealers can also use location data to make sure that the makes and models featured in mobile campaigns are actually available for purchase at the dealerships closest to each customer. A targeted buyer should never receive an advertisement for a vehicle unavailable to purchase within a reasonable radius.

Facebook: Mobile Overrules Desktop

Facebook drives 82 percent of its revenue from mobile advertising. As a result, the social media giant recently announced that it will shut down its desktop retargeting tool and focus entirely on a range of mobile-first advertising tools. Dealers can take a page from Facebook’s playbook by investing more in mobile advertising strategies in addition to traditional desktop campaigns. Like Facebook, dealers must personalize mobile advertising efforts to reflect the specific buying potential and demographics of each target buyer. For instance, auto dealers must consider a target consumer’s income, geographic location and browsing history to understand what he or she is looking for, and then target accordingly. A low-income buyer will find little value in a high-end luxury sports car, just as urban shoppers are probably not interested in pick-up trucks that are difficult to park and navigate in a busy city. Additionally, dealers must remember that the window to capture a shopper’s attention with these advertisements is small. Mobile ads should pique a buyer’s interest immediately, and include everything from make, model and color to pricing and promotional information. And all of this must be personalized and retargeted based on a shopper’s previous browsing history and needs.

Snapchat has come a long way from a selfdestructing photo sharing app. The company, which was recently valued at almost $20 billion, now incorporates videos that include branded content and featured news stories available for all users.

Among car buyers, video usage for research purposes has grown 20 times over the last four years, and 43 percent of car shoppers specifically say online video ads help them learn more about vehicles they had not previous considered. Dealers can leverage this behavior with targeted video advertisements. But, like traditional mobile ads, video ads have a short window to engage shoppers and must maximize screen time by leading with the information shoppers care about most. Studies show that buyers care most about a car’s features as well as test drive opportunities. This is the type of information dealers must highlight within the first few seconds of a video ad, or risk losing interest among potential buyers. Google, Facebook and Snapchat are among the most successful mobile companies today. Dealers looking to maximize revenue by leveraging this consumer shift towards mobile will be smart to pay attention to the strategies these tech giants are taking. Car dealers must reach buyers today where they are and capture their attention immediately. In following these three tips, dealers will position themselves to drive more sales long term.

“Car dealers must reach buyers today where they are and capture their attention immediately. In following these three tips, dealers will position themselves to drive more sales long term.”

DealerElite and AutoSuccess Present:

DEALER PANEL

THE Turn to the NEXT PAGE for more... 28 autosuccessonline.com

dp Chris Saraceno Andrew DiFeo Tom Hawkins

the DealerPanel

SALES AND SERVICE: There’s No “I” in “Team”

When sales and service work together, they can build a dealership up to succeed today and well into the future. The reality in many dealerships, however, is the departments don’t work together, or worse, compete for resources. We’ve asked our AutoSuccess Dealer Panel to examine why the friction between the departments exists and how leaders can help avoid the situation.

Tom Hawkins, Owner of Hawkins Chevrolet: The best way is

AutoSuccess: Describe ways management can encourage cooperation between the departments. Andrew DiFeo, GM of Hyundai of St. Augustine: One of the most successful

AS: What are some misconceptions that the departments hold that keeps them from working together? AD: I think, historically, the service department looks at the sales

things we’ve done is to involve staff from each department in our daily and weekly meetings. The new car department, the used car department, reconditioning, F&I… all departments touch each other in some way. We need to get staff — management, service writers, technicians and salespeople — in those meetings to help the departments to work more cohesively.

Chris Saraceno, VP and Partner of Kelly Automotive Group: My point of view is always

Dan Moyer

involvement — making sure the sales and service teams understand what the other team is going through and that we have the same goals. It’s up to the leaders — the dealer, the GM, the GSM, the service director — to involve their team, explain what’s going on and explain the benefits of working together. There are no silver bullets, but sometimes it’s the simple things. When a new team member starts in service, you see the director of that department walking them around the dealership and introducing them to everybody. If someone’s new in sales, the general sales manager walks them around and introduces them. When the staff starts seeing these little things, it brings a team together.

Mike Good

two

part

Dan Moyer, Fixed Op Director and Partner of Kelly Car and Truck Center: You have to create a team

atmosphere, and you do that by having meetings and team activities, but most importantly, the two or three leaders of the store really have to get together and speak highly of each other and each other’s departments. What we do in front of the “kids” will be mimicked by the “kids.”

Mike Good, GM of Street Toyota: The best way to encourage employees to work together is to keep this a “top of mind” issue. That takes intentional communication and sets the tone for every member of the team. Influencing others is management’s job No. 1. Watch for signs of individualism without interdependence. It’s upper management’s responsibility to help every department feel equally important in the quest for overall dealership success. Be quick to share the dealership’s success and pass praise liberally. Transparency and a genuine communication style are essential. Every associate in every department deserves the respect earned through contribution to the entire dealership’s success. As each department head communicates the message, it becomes the expected rather than the exception.

to make sure the goals of both departments are aligned and that both departments understand the role each of their colleagues play in the sales and service processes. The service advisor is the highest-stress job in the dealership and salespeople don’t always understand that. One way to improve relationships is to have occasional combined meetings to share frustrations and create solutions. Another way would be to create a spiff or contest that targets a mutual sales/service goal.

department as the group who gets all the incentives, spiffs and recognition; the sales department looks at the service department as the 9-to-5 employees of the dealership. We all know that’s not the case; we’re living in a 24-hour world of business these days. One way to get around that is to set up recognition programs for your service department and create incentives for those employees, as well as getting your service department involved with your sales department to show the service department is there first thing at 7:30 a.m. and, depending on the workload, could be there as late as 7 or 8 o’clock at night and most of the times on Saturdays and, in a pinch, even on Sundays. It’s not the historically Monday through Friday, 9-to-5 job anymore.

CS: Each one needs to look at the pressure the other is under. That one area keeps these departments from working together in harmony. The sales department has no clue how hard the service department works or what the technicians go through. A lot of shops aren’t air-conditioned. They’re working under cars all day in the heat or cold. They don’t realize the service advisors are sometimes in at 6:30 or 7 a.m. Also, customers are not excited when they walk in for service. They don’t look at it from the perspective of the pressure that the service department is working with every day. Nor does the service department realize that some of the sales department will be there until 9 or 10 p.m. on the last day of the month and that they’re on a commission-based pay plan — if they don’t perform, they don’t get a paycheck. DM: From the individual, you have to take the “I” syndrome away from them and create more of a team understanding. The lack of respect also comes from the lack of understanding about the job responsibilities the other folks have. Everyone always thinks that, “no matter what I’m doing right now, it’s more important than what you have going on.” That’s the mentality that we have to continuously change. MG: “They’re ripping us off.” “We can get it repaired down the street cheaper and faster.” “They make all the profit at my department’s expense.” “They’re the GM’s pets.” It all boils down to a self-centered attitude that counts an individual or department’s efforts superior to the others. It’s a poisonous attitude of arrogance that potentially cripples dealerships from the word go. Unfortunately, it’s infectious. Treat it as cancer. One shot of radiation then cut it out — amputation. Remember, people are not your greatest asset; the right people are your greatest asset. TH: There are two specific roles that we hear about in our business: The sales department gets the customers, but the service department keeps them. Those two roles are totally different, but equally important. The long-term health of the dealership doesn’t happen without consistent success of both departments. If that is not communicated and reinforced with every employee, it will hamper a dealership’s success.

If you have questions or are a dealer who would like to be considered for the panel, please contact us at thepanel@autosuccessonline.com.

THE

DEALER PANEL

ms marketing solution

NathanUsher

director of business development for DealerSocket \ 866.538.6697 \ nusher@autosuccessonline.com

WHAT WE HAVE HERE IS A FAILURE TO COMMUNICATE

While U.S. vehicle sales have been breaking records over the past couple of years, signs point to a coming slowdown. Many of these sales — by some counts, up to 30 percent — have been driven by leases. In fact, 800,000 lease maturities are expected to hit the market in 2016, resulting in a potential glut of prime used vehicle inventory. Regardless of the source, a prepared dealer will have plans to take advantage of the next phase of this unprecedented influx of vehicles on domestic roadways. Whether your customers are purchasing or leasing vehicles, industry data continues to underscore a secondary marketing and revenue opportunity for dealerships that is too often overlooked: vehicle servicing. Dealerships are Missing the Mark

Many dealerships are selling the vehicles and stopping there. Unfortunately, dealerships across the board are missing the mark on winning over repeat business, which begins with encouraging ongoing utilization of the service department. Only 30 percent of these already-acquired customers come in for their service needs in the first year of vehicle ownership, with service visits steadily declining to almost none through year five. But why?

Remind — Increase show rates by sending confirmation and reminder emails or texts. Your CRM will give both you and your customer the cues when service is due and provide you with the ability to set up automated messaging. Utilizing your CRM to track customer behaviors and monitor vehicle service cycles allows dealerships to communicate to customers when service is due on their vehicle. But it goes beyond just service appointments; dealerships can leverage their technology to stay top-of-mind with customers and capture this increasingly large percentage of the market who is leaving for small, outside shops. Changing Customer Perceptions

Technology is Key

Many dealerships believe that the single most important problem facing their service departments is the customer’s perception that outside shops are less expensive.

Introduce — After the sale is complete, walk the new buyer to the service department and introduce them to the service manager. Customers are more likely to do business with people they already know and trust.

Even if these shops can claim a price advantage, dealerships must market and leverage the many advantages they do have over the competition, including items such as: • Complimentary services (free car washes, Wi-Fi access, shuttles)   • Warranty protection   • High-quality OEM parts   • Faster and higher-quality service   • Easier appointment scheduling due to greater availability   • More insight and capabilities, including software updates and access to OEM information   • Highly specialized technical staff for your customers’ specific vehicles

Ask — Be proactive and encourage them to schedule their first appointment for a basic oil change a few months down the road. An overwhelming 88 percent of customers will schedule a service appointment if they are simply asked.

Communicating your service advantages and simply connecting with customers when they need an oil change or tire rotation — within the first year when they’re most likely to come in for service — will help build customer awareness and, in turn, increase loyalty,

Data shows that 60 percent of the average dealer’s net profit comes from fixed ops. To increase retention rates, dealerships should take advantage of the information already available to them in their CRM and DMS, and proactively communicate service opportunities to their customers. Even though the data demonstrates most customers do not return for service after purchasing a vehicle, there are some simple steps that can be taken to increase first-year service visits.

32 read, listen, watch, share, succeed.

retention and revenue for your fixed ops group.   Once They’re In For Service

Once the customer comes in for service, the opportunities don’t stop there. Secondary to fixed ops marketing and promotion, focusing on loyal customers can also turn into more sales for your dealership down the road. Servicing allows dealership employees direct face-to-face contact to follow up on other opportunities identified by your CRM: • Ask if they’d like to see a new vehicle if their current lease is close to ending   • Consult with a salesperson for a test drive on that car they’ve been researching (by flagging VDP views from your dealer Website)

“Dealerships must take advantage of all the software available to them, including their DMS, CRM data mining and more. These tools give insight into the easiest to reach and most likely to buy customer base: current customers. Fixed ops accounts for only 12 percent of a dealer’s revenue on average, but it makes up 60 percent of net profit.” Dealerships must take advantage of all the software available to them, including their DMS, CRM data mining and more. These tools give insight into the easiest to reach and most likely to buy customer base: current customers. Fixed ops accounts for only 12 percent of a dealer’s revenue on average, but it makes up 60 percent of net profit. With the millions of cars recently sold or leased hitting the road, the smart dealer will now turn their eye to the next logical phase of vehicle ownership: service. The goals of customer retention and increasing revenue are high on every dealer’s list. Both goals are more easily attained when dealers leverage the tools that are already on hand to reach customers and boost service bay visits.

ls leadership solution

DalePollak

founder of vAuto \ dpollak@autosuccessonline.com \

@vAuto

SURVEY REVEALS FOUR KEYS TO INCREASED SUCCESS IN NEW VEHICLES

I found a few eye-openers in a recent vAuto-commissioned study on how dealers manage their new vehicle inventories and regard their department performance. The market research study polled 200-plus dealers from across the country, representing all makes and regions. Nearly 50 percent of the respondents reported they are selling more new vehicles than they did in 2015. Thirty-four percent are on pace to sell the same volume as 2015, while 16 percent are selling fewer vehicles. In terms of profit, 36 percent of respondents say they are making more money on a per-unit basis this year than they earned from 2015 sales. Sixty-four percent say they are making the same or less money on their 2016 new vehicle sales.

pricing/re-pricing new vehicles. Forty-one percent of dealer respondents say they price/re-price their new vehicles once a month, while 40 percent price/re-price new vehicles at least once a week. Between these two groups, which would you expect to see better sales/profit results? The answer is the latter group, whose attention to new vehicle pricing reflects an understanding that today’s buyers are far smarter on prices than they used to be. Stocking Decisions

On average, survey respondents stock about 245 new vehicles, and retail about 95 units a month. In terms of time allotted for stocking The sales volume and profit numbers aren’t all that surprising. The market decisions, top-performing dealers say their teams invest about 12 remains largely favorable for dealers in terms of demand. Similarly, it’s no hours a week determining the right vehicles/combinations to order secret that increased competition, incentive spending and a buyer-driven from the factory — about 1.5 hours more than dealers with poorer market combine to compress new vehicle profit margins. performance. Interestingly, top-performing dealers placed a higher priority on knowing a competitor’s inventory and recent sales than the I took a closer look at the study’s top-performing dealers to understand poorer-performing respondents. My take-away: The additional time why they are doing better than their peers in new vehicles — an top-performing dealers spend to study and understand their competitive examination that yielded a few surprises: new vehicle environment is well worth the effort. Pricing Frequency

The survey showed a roughly even split among dealers when it comes to

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Aged Units

Top- and poorer-performing dealers agreed in roughly equal numbers that aging new vehicle inventory doesn’t matter all that much. The finding affirms the long-held, traditional belief that, unlike used cars, new cars don’t “spoil.” But it’s interesting to note that top-performing dealers also recognize that a higher rate of inventory turns mitigates the costs and risks of aged units, and they are far more likely than lower-performing dealers to regard floorplan as a revenue opportunity rather than an expense. To me, these findings suggest that while topperforming dealers may not view aged units as a problem, they are proactively addressing, rather than ignoring, these vehicles in their pricing and stocking decisions. Desire for Growth

More often than not, top-performing dealers described growth as a primary business driver, and a source of competitive advantage, compared to their poorer-performing peers. This growth-focused strategy is likely a chief reason these dealers are more mindful and proactive about their pricing and stocking decisions, and seeing better overall new car results than other dealers. Likewise, I believe it’s true that growth-minded dealers are more likely to focus on continuous improvement and innovation in new car operations to help them better serve their customers and outpace, rather than simply keep up with, the competition.

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As we look ahead, it’s fair to say the new vehicle market will become more challenging for every dealer. Margins aren’t likely to increase, and buyer demand will continue to favor dealers who are blessed with the SUV/truck offerings that continue to dominate buyer wish lists. Meanwhile, OEMs will continue to press for year-over-year improvements in their sales performance. Web

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But the survey findings suggest that, as dealers encounter ever-stronger headwinds in new cars, the greatest success will go to those who proactively apply themselves to understanding their unique competitive environments, and adjusting their new vehicle decision-making and operational practices to take advantage of opportunities their competitors often overlook.

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ToddKatcher

managing partner for Digital Dealership System \ 866.513.6690 \ tkatcher@autosuccessonline.com

KEEPING CUSTOMERS FOCUSED WHILE THEY RELAX

Current customers spend more time in your lounge than any other part of the dealership. Dealerships and franchises spend considerable effort to make the customer lounge a welcoming environment for their guests. Dealers include coffee bars, tablets and snacks along with comfortable chairs, special lighting and much more. Ultimately, though, the customer lounge experience comes down to the televisions and content options available. The average dwell time for a customer in the lounge is about one hour. Dealerships will always get those who will spend several hours there, or have some family members who will go to the lounge during a sales deal. But, in general, the lounge is used as a place to unwind, get some business done, consult on sales and relax while in the dealership. A dealer visit can be stressful, and the lounge is designed to help alleviate that stress. Customer Lounge Experience

The customer lounge experience is a great way to add a hint of marketing to your customer without overwhelming them with your message. An improper balance can negatively affect stress levels, CSI, referrals and social media impact. The result? Bottom-dollar profits. Anyone who has gone to an old “quick lube” shop knows how a poor lounge experience can impair the desire to bring repeat business to that establishment. There are multiple options for customer lounge TV, each with its own pros and cons. Dealers will have different needs based on their customers and dealer initiatives. It’s often best to combine multiple solutions to maximize the impact of the investment. Do Nothing — Running cable network TV is the choice of most dealerships. This will be just like the home environment where

any channel can be watched, with customers asking dealer representatives to increase or decrease the volume or change the channel. Maybe there is a remote floating around that inevitably will get lost. This programming may not be suitable for all ages, might show competitive commercials, may not represent the dealership in the best light and provides no dealership marketing. Broadcast Wrap — Wrapping a cable or satellite TV broadcast with dealer marketing is an easy way to make sure your dealership branding and message stays in front of your customers without interrupting the normal TV program. Customers can watch any channel they want, but your marketing message rotates on the side and along the ticker on the bottom. This allows you to “silently” market to your customers with service and sales specials, and general branding is easy to do. Sophisticated dealers add automated service appointment status to the system, keeping customer’s eyes focused on the screen — and on your marketing message. Commercial Replacement — Dealers have long searched for a hybrid solution where a customer can watch any channel, but when the commercials come on, the dealership can control the content. This is referred to as commercial replacement. This technology allows dealers to add video to the system and during a commercial break, controlled

content can play. This can be any video, from running footage to dealership commercials to testimonial videos and more. The system runs seamlessly and creates a way to reduce competitor’s advertisements and maximize dealer branding and messaging. Closed-Circuit TV — Alternative content can provide a mix of entertainment, educational and dealer-branding content. There are several options and layouts to select from, including long-form and short-form content from various providers. The premier solution offers dealers complete control of the content to add and remove any content, while automatically updating fresh content. Short-form videos are ideal because it keeps someone’s attention on the screen, where dealer marketing messages are available. Long-form content is usually older content and it can be difficult to keep a customer’s attention through a 20-minute show. Premium solutions even include automated service updates to let customers know when their vehicle is ready. Conclusion

Each of these solutions has pros and cons that much be assessed by each dealership. The addition of integrated appointment status may be a key role in selecting a provider, but ultimately, the total solution is what will determine the course of action for your dealership. Reaching customers in the lounge is getting more difficult every day because they have a variety of distractions and technologies available. Keeping dealer marketing in front of your customers while in the store is a challenge that the modern dealer is willing to attack and utilize for their benefit. In this case, doing nothing is a losing battle.

GROW USED VOLUME 20 –30% “We have been selling 80 used cars for years. In May, we signed up with Lotpop and what a difference it has made. We have averaged 111 units the last three months and broke our all-time record last month with 120 units with 131 in stock.” - Chad Vaught of Jimmy Michel Ford Learn how to Increase Your Used Volume Up to 30%. Visit LOTPOP.COM for a Free Inventory Evaluation. Jasen Rice,

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JaySkowron

founder & principal for DealerDefender \ 866.618.8264 \ jskowron@autosuccessonline.com

VIDEO EMAIL: The Best Selling Tool You’re Not Using

If you’re not sending video email responses to your leads, you’re missing sales opportunities. Period. Picture the typical scenario: Jim goes on four different dealership Websites to submit inquiries about vehicles. Within minutes, he gets back the typical CRM email autoresponder. If he’s lucky, maybe he’ll get a phone call sometime within a few hours pestering him to make an appointment and come take a look. But then, Jim gets a personalized video — from you. It’s right there in his inbox, with a screenshot of your face pulled from the video, with a play button right smack in the middle of it. Above it is your logo, and all the necessary info about your dealership. He clicks to watch it. It opens up to a beautiful screen, with links to your dealership’s inventory, directions to get there and even a credit application. The video is right in the middle of this. The page resembles your Website, so when Jim clicks on links, it goes to your Website in a very comfortable transition.

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The video is short — between 30 seconds and a minute. Just long enough to introduce yourself to Jim. You can even do a walkaround video. All this can be done right from your smartphone, and Jim can watch the video right on his, as well. The best part: You get an alert when Jim views the video and you can call him right away to follow up. You even get an alert when he clicks the links on the page so you can see what specifically he’s checking out on your dealership’s Website. Now, Jim has received three impersonal form emails from autoresponders and one very personal video, created just for him, from you. Which dealership do you think Jim wants to contact first? Video email gets an estimated three times greater engagement rate than regular email.

Video email isn’t new. Look at Elise KephartAdame, the YouTube Diva, for example. She was using personalized YouTube videos to contact her Internet leads for years when she worked at Sunset Honda in San Luis Obispo, California and set records with her sales. Video is powerful. Facebook knows it, Instagram knows it, YouTube (of course) knows it, and now you need to know it — and then use it. It takes two minutes to send a quick video to your potential customer introducing yourself. There’s no need for it to be polished or 100 percent flawless. You just need to be yourself. Customers appreciate the real touch. You can save generic follow up video emails and send those out in seconds, and the right systems will even integrate with CRM. Take a look and see what kind of difference personalized video email can make for your sales efforts. Set yourself apart from the competition by making a personal connection with your prospect from the very start.

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AdamRobinson

chief hireologist for Hireology \ 866.455.1671 \ arobinson@autosuccessonline.com

WHAT IS THE DIFFERENCE BETWEEN A PRODUCT SPECIALIST AND A SALESPERSON?

It’s not news that the role of the sales professional in the retail automotive environment is changing. The stats are now ingrained in every dealer’s brain — on average, customers spend 13 hours investigating an auto purchase. They’ve already done their due diligence and have thoroughly researched any and every vehicle they’re considering for purchase. Every tidbit of information that pre-Internet consumers relied on a salesperson for is now conveniently accessible on their smartphones. As a result, the role of the automotive sales professional is evolving. More importantly, the organizational structure of auto dealerships is being forced to change, as well. No longer can you throw an army of full-commission reps at the next Up who walks through the door. Consumers want to talk with a resource whom they trust, and whom they feel has their best interest in mind. A Product What?

Although the name is somewhat ambiguous, the function product specialists serve in the showroom is a critical one. If you’ve ever walked into an Apple Store, you’ve already been exposed to the phenomenon. The people operating the Genius Bar are likely the most visible representation of product specialists. Simply stated, product specialists exist to provide information about your products, and be a resource for the consumer. They are the first point of face-to-face contact for a growing number of businesses, including retail auto dealers. These individuals are equipped with the information — sometimes aided by technology — to help answer any questions that customers may have. They also serve as dealership brand ambassadors. Take, for example, the case of product specialists at the JM Lexus of Margate, Florida, who introduce consumers to the dealership’s transparent, professional experience. Specialists also arrange test drives and explain vehicle features. In short, they provide all the information a customer wants or needs to know about a car or truck — aside from the price tag, insurance and financing options. The most fundamental aspect of the product specialist is their pay plan. Most product specialists are on a base play plan. Instead, they

40 read, listen, watch, share, succeed.

can earn a bonus for getting a customer in front of a sales manager and a bigger bonus if the consumer ends up making a purchase. The Rebirth of the Automotive Sales Manager

To be more precise, it’s the sales manager who has likely had to undergo the biggest evolution in today’s auto dealerships. Of all the sales staff, the manager is the most proficient in negotiations. During the car-buying process as most people know it, a traditional salesperson would simply be the go-between for the customer and sales manager, trying to work out the “best” price. Now, the sales manager gets to work directly with consumers after the product specialist has thoroughly prepped them to a point where they’re confident enough to discuss financials. The lengthy back-and-forth is essentially cut out of the experience. What Effect Do Product Specialists Have?

The National Automobile Dealers Association (NADA) explained net pretax profit at newcar dealerships as a percent of total sales has remained stagnant at 2.2 percent from 2012 to 2014. Even with a rising number of new car sales, the declining gross profit per vehicle sold — combined with the nature of manufacturer incentives — has forced dealerships to shift the focus to increasing sales volume. JM Lexus saw a sales increase 27 percent between 2012 and 2013 after they introduced product specialists in the showroom. These and other similar results from dealerships that have adopted the product specialist model are driving a sea change in the way dealerships are organizing teams and compensation structures.

A Different Candidate

The change in the car-buying process is also changing the way dealerships recruit. Especially for product specialists, auto dealerships are looking at a younger demographic with less industry experience than a typical salesperson — typically with no automotive experience at all. Ideally, product specialists will be car lovers who enjoy automotive technology and have a desire to learn about and work in the industry. They need to be able to facilitate the transition from the Web-based research that customers begin their journey with to the showroom where they cross the finish line.

“Ideally, product specialists will be car lovers who enjoy automotive technology and have a desire to learn about and work in the industry. They need to be able to facilitate the transition from the Web-based research that customers begin their journey with to the showroom where they cross the finish line.” In terms of characteristics, high-performing product specialists should have high emotional intelligence, using empathy and interpersonal skills to be a trusted advisor for dealership customers. They need to focus on the customer’s needs — not necessarily maximizing the dealership’s profits. Attracting the best talent begins with a clearly defined career path for product specialists. They also prioritize stable earnings and balanced work hours. With NADA’s most recent data showing the average turnover rate for automotive sales professionals is a whopping 72 percent, it’s critical that the recruitment process is working to bring in the best talent right from the start. Creating a strong dealership employment brand is an integral first step, so you can attract people who are both fit for the role and the organization as a whole.

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SubiGhosh

executive vice president for Dealer Authority \ sghosh@autosuccessonline.com \

@Subi101

ELEMENTS OF SUCCESSFUL SOCIAL MEDIA POSTING: The Formula Right for You

I spent the first six years of my automotive career as an Internet director and much of my social media strategy was developed by trial and error. I’ve seen many approaches, styles, content mixes and dealership voices. What I learned from managing my own pages then, and watching hundreds of our client’s accounts now, has led me to create a short list of key-elements to pay attention to when posting to Facebook. There really is no secret sauce, but there is a working formula that can set your dealership’s social presence on fire. I say working formula, because the elements that I discuss should be consistently used — but how, and how-often, will evolve based on the needs and reactions of your community. Before you continue, know it is absolutely crucial that whatever you post must have an advertising budget behind it. Without it, Facebook’s current algorithm will not show your brilliant content to any of the thousands of likes you’ve grown. Humanizing the Dealership

No two dealerships are the same. You have interesting people, philosophies and environments that make up your own unique dealership voice. I cannot stress enough how important it is to use this specific information to humanize your dealership on Facebook. Social media’s true value allows customers to get to know your human side, as well as reach businesses quickly and easily. It’s meant to be social, but you’d be surprised at how many businesses are not being social at all. Don’t fall into the trap of trying to create sales “right now” and ignore the real value of the medium you are using.

Dealership-Specific Content

While I’ve stressed the importance of being social, business is business, so it is imperative to create a strategic formula that focuses on what you do at a business level, as well. Remember, people don’t come to your page or engage with your posts to be entertained. Ensure that your posts have a direct line to the dealership. Create testimonial videos or photos, feature unique trades or new inventory and share images of salespeople doing something human in the showroom. Show you are affected by the same things in the area, such as funny occurrences or dangerous weather patterns, as your customers are. Post how-tovideos related to the vehicles you sell. Present dealership, vehicle and local content that indirectly supports the business you are trying to promote. Sales Messages

Sales-related messages should be limited, specific and strategically placed. When you gain your community’s trust with the more human, local and dealership-specific content, you earn the right to post sales messages. The more you apply this strategy, the less likely your audience will become jaded by the sales messages, and you will have the opportunity to create the impact you want.

Instead, be social. Allow your customers to get to know the people at your dealership. Showoff what makes them human. Share fun stories and pictures, showing the way employees interact with each other. Celebrate birthdays and anniversaries. Let your followers see how the people within the walls of your dealership interact with the community.

Video. Video. Oh, and Did I Mention, Video?

Local and Community Events

Relevant and Engaging

Speaking of community, your followers need to feel like you are truly part of their world. One tactic is to share about local businesses and events that your employees frequent. If the people within your dealership enjoy local places and events, so will your community. Another tactic is to share local scenery, historical sites and identifiable characteristics of your town. This is always something your community appreciates, recognizes and enjoys. It also plays into the relevance concept that I will be talking about in a bit.

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Video is outperforming every single type of content right now. Focus on making your videos engaging, human and social, not something that sounds like a commercial or brag-session. Include video. That’s all I really need to say on the subject. Do it. People don’t want to see popular cat memes or entertainment news from their local dealership.

In fact, there have been quite a few times that a social media community has reacted poorly to a page clearly pumping-out irrelevant content. It’s confusing to a community when a dealership pushes-out posts as a pop-culture news provider, rather than content relevant to their business. Be engaging and entertaining by building a voice for your business that is relevant to your services, then stick with that voice. Don’t make your business seem like something it isn’t just to draw people in. If you do, you’ll regret the moment someone comes in and experiences a personality that is the polar-opposite of the one being promoted on social media. They can and will destroy that image by letting other followers know about the drastic difference. It feels like fraud and they will quickly let the community know that something isn’t right. Ultimately, the most successful social media formula includes all of the elements: personality, humanization, local information, relevant content and strategic sales messaging. The key here is to incorporate them into your posts, while watching their performance closely, to perfect the right mix for your community. If you only get one or two likes, it matters little how brilliant you think your post was. Listen to your audience and speak to them with the content they are responding to, but be careful with your formula and factor in that popular content will always outperform other types of content — which doesn’t mean to flood your news feed with just that one particular type. The more closely you monitor and cultivate your dealership’s social presence, the more you will find success with your own personalized formula. Being fully engaged and focused will make it easier to build a community that craves the content coming from your dealership. It will increase the engagement level, organically grow your likes and create buy-in from your followers. And speaking directly to your community will help you sell cars through social. I see it every day. You can sell through social, but it isn’t an overnight process. It isn’t difficult, but it takes dedication and creating a solid strategy. So, go — be social. Be successful.

“People don’t want to see popular cat memes or entertainment news from their local dealership. In fact, there have been quite a few times that a social media community has reacted poorly to a page clearly pumping-out irrelevant content. It’s confusing to a community when a dealership pushes-out posts as a pop-culture news provider, rather than content relevant to their business.”

SUCCESS STORY JULY 2016 · NO 7

LEE HUBBARD JAY WOLFE ACURA

SELLING OUT OF THE

SERVICE DRIVE

HOW JAY WOLFE ACURA TURNED THEIR SERVICE DEPARTMENT INTO A SALES ARENA Å CONTINUED INSIDE

Ä CONTINUED FROM THE COVER

Comprised of five stores across the United States, the Jay Wolfe brand has been a household name for many years. Together, this dealership group has achieved a stellar reputation by catering to the customer, training their team and working as one unit for the good of the group. Lee Hubbard

started his career in the automotive industry in 1977 as a porter in a service department and has worked his way up to become the dealer manager of Jay Wolfe Acura, located in Kansas City, Missouri. He received a valuable bit of sound advice from his first boss, Larry Van Tuyl, CEO of the Van Tuyl Group. He advised Lee to start working from the back end until he got to the front end. Lee did just that, learning along every step of the way, and never looked back. Lee always knew that the service department was a hidden gem within a dealership — one that could far exceed any other department if given the right opportunities and environment. Over the years, he examined and experimented with many ways to get the sales department to work within the service drive. He would create programs that, in the short-term, would attract 20 extra sales in a month from service. For one reason or another, though, the programs

always seemed to quickly fall apart. One of the biggest reasons none of these programs seemed to take root was the inevitable resistance and blowback from the sales department not wanting to stretch out of its comfort zone and explore service drive opportunities; often, it was more work to get everyone to be on board than it was worth putting together the campaign. Lee knew, however, that this reluctance was unacceptable. Something needed to change. Lee reached out to Team Velocity for help in building a program that would increase the dealership’s bottom line and be workable in the long term. In October 2015, Team Velocity introduced the Upgrade Program, a platform where the customer is able to easily move to a new car with the same or similar payments as they have with their existing car. This platform seemed to be the missing piece of the puzzle and really showed what the service department could do.

Here’s how they did it... UPGRADE An Upgrade Team was developed and trained to help customers coming in for an RO learn of opportunities available to them for an upgrade. This approach had to be handled very delicately, though. While the program is extremely rich in what it brings, it has to be worked differently than how negotiations are worked on the sales floor. Lee Hubbard did not want his loyal customers thinking that they would be “sold to” — or worse, harassed — each and every time they

“

Success Story

“Customers are walking in with the direct mail piece asking to upgrade to a new vehicle because of the service reimbursement program.” Lee Hubbard General Manager Jay Wolfe Acura

came in to get service done on their vehicle. It had to be a soft approach, which meant that the right team had to be in place, and they had to have the proper training.

TRAINING Lee first approached his existing sales team. He asked them why they should be chosen to be included in the Upgrade Program sales approach. Each team member had to have an open attitude for training from Team Velocity, and to use the soft approach to sales taught for this unique program. Lee is also very involved in the Upgrade Program’s numbers and proposals. He worked every deal because he knew this would work. With the right team in place, right out of the gate, they produced 30 extra sales in the first month and, in every month since October 2015, they have produced between 36 and 41 extra sales from the service Upgrade Program. And, not only have the new car sales increased, but repair orders have been off the charts.

JAY WOLFE ACURA MARKETING SERVICE Since its success, the emphasis on new sales marketing has fallen as the dealership started focusing mostly on their service department. Direct mail, emails, traditional marketing and other media efforts are pushing customers to the service department. This not only brings people to the dealership for service, but they are also introduced to the upgrade program during that time. Jay Wolfe Acura offers reimbursement on ROs done in the previous two months if a customer upgrades to a new vehicle. “Customers are walking

in with the direct mail piece asking to upgrade to a new vehicle because of the service reimbursement program.” Lee said. And, while the dealership is selling more cars in the short term, the long-term indicators are also encouraging; the loyal customers are multiplying by focusing on this part of the dealership.

PULLING IT ALL TOGETHER Jay Wolfe Acura led the way by focusing on marketing the service department and incorporating the upgrade program. They were so successful that the other

dealerships in their dealer group have followed suit by applying the same procedures in their stores. The key to running a successful service department? Making it work internally between the departments in the dealership. This is achieved by finding the right team, providing the proper training, making sure the team has the support of management and exploring strategic vendor partnerships to find the right process for your store. To learn more about Jay Wolfe Acura and the strategies outlined in this article email:

successstories@autosuccessonline.com

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Success Story

JAY WOLFE ACURA

SALES IN SERVICE PROGRAM

DRIVES RESULTS OF SALES CAN BE ATTRIBUTED TO THE PROGRAM

OF SERVICE RO’S CAN BE ATTRIBUTED TO THE PROGRAM

IN A NUTSHELL Jay Wolfe found a hidden gem in their service department and since October 2015 they have been averaging close to 40 sales per month from their service drive. RESEARCH - Studied the best practices of the dealership and uncovered the service department as a hidden gem that could far exceed any other department if given the right opportunities and environment. INTEGRATED STRATEGY - Delivered consistent branding and offers across all targeted media channels - direct mail, emails, traditional marketing and other media efforts to push customers to the service drive. TRAINING - With the right team in place and proper in-store training, right out of the gate, Jay Wolfe Acura produced 30 extra sales in the first month and, in every month since October 2015, they have produced between 36 and 41 extra sales from the service Upgrade Program. UNDENIABLE RESULTS - As a result of Hubbard’s strategy and dedication, Jay Wolfe Acura can attribute 44.4% of sales to the upgrade program and 71.6% of service RO’s can be attributed to the program. Å READ FULL STORY

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KeithShetterly

vice president of sales & marketing for Drive360 CRM \ kshetterly@autosuccessonline.com \

@KeithShetterly

YOUR CUSTOMER IS ON MOBILE, WHY AREN’T YOU?

I have an old saying, adapted from an ancient, famous (and probably very familiar) book: The Sale” (even when we used paper). And, it “Wherever Two or More of Your Customers Are Gathered, So Shall You Be There, Also.” produces results if you follow it — even, in the Except you’re very likely not. Your customers are on their mobile devices but your dealership’s Website isn’t. Sure, it probably shows up on their mobile browser, but it doesn’t present your inventory for easy shopping on a cell phone screen — and it looks muddier than a 12-year-old’s four-wheeler after a rainy day. Shoppers don’t want to use it; they just want to leave it. And they do. For your competitors. And you’re even more likely to not use mobile inside your own dealership. Your entire sales staff these days spends as much time or more with their heads down looking at their smartphone as they do watching the lot; are you taking advantage of that attention? The CRM you likely depend on isn’t mobile at all, or it isn’t “mobile-friendly.” In fact, several CRMs barely make it under the wire as “mobile afterthoughts.” So, your processes present a clunky “let me use this desktop computer and the license scanner” experience to your mobile-

48 read, listen, watch, share, succeed.

smart shoppers, and we all know that the more painful the process for the shopper, the faster they leave — unsold. Finance presents its own host of problems, mostly around privacy, with tablet-based menu-driven solutions. It’s not for everyone so far. However, that menu-driven idea from F&I … hmmm. Let’s look at service: Your service drive likely still has your advisors running around with clipboards and a lot of hope — that is, your hope, since you hope they can do the proper upsells while the service phone is ringing and they are looking for a pen that hasn’t run out of ink. With a tablet in their hand, however, the process becomes “menu-driven” in MPI and in service options, and you are ensured of the best steps to get the most profit from your lane. In your sales department, the original “menudriven” approach is the famous “Road To

right sales hands, for the modern shopper.

And what does the modern shopper want? Convenience. Well, dealerships aren’t convenient. Next, they want a pleasant experience. And it’s well documented that their expectation is that dealerships aren’t pleasant. How do you tackle that modern customer? Mobile. Be with them. Invite them aboard to your sales and service — in the way they understand every day. Anyone who hasn’t seen the famous picture of the folks with their heads down to their phones standing while at the lip of the Grand Canyon hasn’t realized that people are mobile. And mobile is important to them. And thus mobile is extremely important to your sales and service success — more and more every day. Your customers are gathered on mobile. Get there now, because your customers are.

Can you handle moving UP TO 15 or more EXTRA units this month? Ideal Direct, in partnership with Experian Automotive, now offers live credit driven data.

Targeted Direct Mail • Experian’s Exclusive “In the market model” – This list actually pin-points prospects in the market for a car. If you are looking for great lower tier prime and sub-prime prospects, this list works. We have had dealers sell over 40 units in a month. • Campaigns start as low as $.65 a piece.

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SallyWhitesell

president of SW Service Solutions \ swhitesell@autosuccessonline.com \

@SallyWhitesell

THE GLARING MISTAKES OF A WELL-INTENTIONED SALES TEAM

Just like many of your clients, I was excited about buying a nice new car — but dreading the process. You see, I am a service advisor trainer, with a specialty in teaching the differences of selling to men and women. I am in dealerships all the time, but have limited exposure to sales departments, so please consider this a fresh and hopefully helpful perspective as I share my story. It was a cold, rainy day in Florida, which is like snow and ice in the north; this should be a great indicator that I am a serious buyer, right? I went out with my financing fully in place and was determined to go home with my new car. No one car stood out to me; I did have, however, a list of “must have” features and did some research to narrow my prospects.

want was to start my search. I was embarrassed and inconvenienced because I was starting all over again with a new salesman who made no effort to find the right person, but we proceeded. A few minutes later, Kevin approached me with a defeated look because I did not ask for him, which made me feel horrible. Should your clients be made to feel this way?

Mistake No. 1:

Mistake No. 2:

The dealership did not get me to the right person. While doing my research, I contacted dealerships via the Internet. Some of them followed up; many did not. The dealership I will discuss in this article had a nice young man I’ll name “Kevin” who returned my call. I told Kevin what I was looking for and that I would be in the following Saturday for a test drive. He assured me that he had two of the cars I was looking for — with my desired features — on the lot. Unfortunately, when I entered the store, I could not recall Kevin’s name (Cut me some slack here — I am over… well, never mind). I let the salesperson who approached me know I had talked to someone in Internet sales. His response: “Do you know who it was?” I replied that I did not remember his name. “Then it doesn’t matter,” he said. “Those guys get enough leads.” This was not information I needed or wanted; what I did

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I was misled before I entered the door. When I entered the dealership, the car I was considering was on the showroom floor. However, it did not have the features I had told Kevin, and now my new salesman — let’s call him “Jim” — that l wanted. So, I asked about the upgrade packages. Jim replied they did not have one to show me, but they could get one. He told me a few of the features I wanted were not offered on this vehicle at all. I was disappointed and already felt this team was uninformed and misleading. Mistake No. 3:

My salesman did not listen to my request in order to lead me to the right vehicle. Once we determined the first car was not right for me, Jim and I had a nice conversation as he started trying to build rapport. While he was a

very nice man, he was not listening to the clues I was giving him about my needs in a vehicle. Finally, I asked him if we could go out (in the rain) and walk the lot — another huge indicator that I am serious. Jim did not lead me to vehicles that fit my needs, so we wondered aimlessly while he complained about the weather. Believe me, I was well aware that it was raining and cold. Finally, we found a vehicle that had most of my wish list, but it was missing the leather interior and heated seats. (Yes, heated seats in Florida. What can I say? I like to be warm while the air conditioner is blowing.) Jim assured me that they could change that out for me and it would be like new. Really? Change the entire interior? I must have looked like I just fell off a truck, but I played along. We took it for a drive, right past the other dealership I intended to visit once we finished. Jim did a great job on the test drive, pointing out features that I didn’t know existed and hadn’t asked for, so I decided to see how my car would appraise. While waiting, another salesman stuck his head in and asked what I was buying. I told him I wasn’t buying because they didn’t have what I was looking for. He asked for my list and then said — are you ready for this? — “We have three of those on our back lot.” What? Are you kidding me? Why wouldn’t Jim lead me to the right car? Wouldn’t he have checked the inventory that morning? Wouldn’t new car availability have been discussed in their morning kick-off meeting? Did they have one? Do you? Now, I have to admit I appreciate the teamwork

of another salesman stepping in to help, but I saw the look on Jim’s face when he realized what had transpired. He suddenly snapped to attention and it took all of five minutes to find the perfect car. Why had Jim wasted my time on the wrong car? I was very clear about what I wanted. Was the car I drove just one they needed to get off the lot? Oh well, he seemed to be a nice guy and I, like many women, do not like confrontation, so we moved back into the office to see if we could deal on the right car. There is a lesson in that sentence. Most women will not speak up about poor service unless they are pushed to a breaking point. I didn’t speak up, but I have not only told all my friends but I am telling all of you right now, so watch out. Women are three times more likely to fill out surveys and write reviews. Mistake No. 4:

Treating me like a close friend instead of a client. Once we returned to the office from looking at the vehicle I selected on the lot, Jim needed to get all of my information to start negotiations. He was pleasant, but exceptionally casual and would often stop typing to talk. I understand this to a point but, after 90 minutes, I am ready to close the deal and drive off into the thunderstorm. My time is important, and I was there to make a major purchase, not a lifelong friend. As the process continued, Jim made another huge mistake, one that I always address in my service advisor trainings. He started sharing personal information, such as knee pain, past surgeries, stitches, family issues and the fact that he had been in this business waaaaay too long, to which I agreed. I even heard about his over-developed daughter — which included hand gestures — and how he had to “watch that one.” I began to look for hidden cameras because I knew this couldn’t be real. When is this ever appropriate to share with a client — especially with a female?

“Three hours of my day have now passed. At this point, I made an excuse to leave for about 45 minutes to get something to eat and drink, as nothing had been offered — even though hot pizzas had been delivered for the sales team and the smell was heavenly. While I was out, I stopped in another dealership to look at a car I had been considering. Luckily for the first store, however, I had fallen in love with the car I had selected there, in spite of their lack of communication and respect for my time.” Three hours of my day have now passed. At this point, I made an excuse to leave for about 45 minutes to get something to eat and drink, as nothing had been offered — even though hot pizzas had been delivered for the sales team and the smell was heavenly. While I was out, I stopped in another dealership to look at a car I had been considering. Luckily for the first store, however, I had fallen in love with the car I had selected there, in spite of their lack of communication and respect for my time. After my much-needed break, I decided I was ready to go back and close this deal, only to find out there had been more computer issues so they were just getting my paperwork started. I understand computer glitches, but between this delay, a very long clean up, and a rushed delivery — because it was now closing time — I had spent more that seven hours in this dealership. This is completely unacceptable. Now, I didn’t write this to complain about our industry, I know we have a lot of great, well-trained professionals. I wrote this article hoping that we can all learn from these mistakes so our clients can enjoy shopping in our stores rather then turning to the Internet. I am encouraging managers and dealers at all levels to be aware of how long guests are in your store and to listen to what is being said to your clients during the wait. Sometimes, even the best professionals can forget that everyone who comes through your door

should be treated as a respected guest in your home whose time is valuable. We should be developing our sales team’s hosting ability as much as their sales ability, because they are both equally important. One Final Mistake:

Ignoring my extended hand because he wanted a hug. No one in your dealership should be initiating hugs with your clients. This is a personal gesture and breaks the golden rule of respecting personal space. If customers reach out for a hug, then go with it, but otherwise keep it professional. Anne Fleming, president of Women-Drivers. com, offers us the following statistics: Women tell us directly through our car dealer review platform their top five reasons for buying a car are: 1. Trust — 52.3 percent 2. Being Respectful — 52.1 percent 3. Likeable — 47.8 percent 4. Knowledgeable — 45.6 percent 5. Understanding — 40.6 percent (Percentages add up to over 100 percent because reviewers can submit multiple answers. Coming in at 34 percent was the price of the vehicle. Clearly, connection and relationship — minus the hugs — outrank price. How do you think my dealership stacked up in these areas? The bigger question is how does yours?

“Let us be part of the solution, so others don’t become part of the problem.” Richard McCabe

Chuck Olsen Boucher Automotive Group Corporate Sales Manager

Bobby Holmes VinSolutions Performance Manager

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