AutoSuccess June 2013 by AutoSuccess

An Innovator’s View Dale Pollak’s quest to address key dealership challenges

2013

JUNE

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An Innovator’s View Dale Pollak’s quest to address key dealership challenges

DealerPanel it’s that time of the year, part 1

RussellGrant nine things you can do right now to increase your data security SeanBradley beware of your internet or business development department infrastructure

DanBrancaccio tire inflation maintenance, the new oil change

Hannah Philpott, Media Director hannah@autosuccessonline.com

conquesting with your pay-per-click

TerryGibson why your dealership should have live chat

GlennPasch are you a marketing sniper?

TroySpring sounds like a deal to me?

JasonHauk the lesson of charlie chaplin

JimmyVee & TravisMiller the secret to finding your next “big idea” (Hint: it starts with a “c”)

Brian Ankney, Account Manager super6@autosuccessonline.com

sales & training solution

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

RickMcLey Technology: we wanted flying cars, but instead we got 140 characters

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

marketing solution

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.

Thomas Williams, VP & Creative Director design@autosuccessonline.com

humility – my greatest teacher SeanWolfington

Susan Givens, Publisher sgivens1@autosuccessonline.com

the abcs of the online shopper: a whole different plate of spaghetti AlanBird

AJLeBLanc

26 28 32 34 36

RobbAzaren Four steps to success with direct mail

14 18

MarkTewart you can make gross profit in the digital age

16 30

DennisMcGinn Reconditioning – time to market at everett chevrolet

10 20 22 38

JohnTraver increase showroom traffic through lead conversion

leadership solution

12 feature solution

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SeanWolfington

leadership solution

humility – my greatest teacher We all have journeyed through life, learning important lessons along the way. Like most people, some of my most valuable lessons have come the hard way, through the experience of discovering what didn’t work. Let’s face it: Who among us does not have something in their past that they wish they would have done differently? I have discovered that every experience in life holds an opportunity to gain insight and understanding. Every conversation I have and every person I encounter provides an opportunity to grow as an individual. Every choice matters — both positive and negative. The positive choices speak for themselves, but the choices we make that produce negative results (aka mistakes) tend to get brushed aside and camouflaged. However, if we humbly scrutinize our own mistakes, we invite the potential to gain wisdom through the trials and tribulations, and to use that gift for the benefit of others. What separates the good from the great are those who are strong enough to identify their weaknesses. It seems that the people who achieve the most are often the most humble and eager to learn, grow and improve. “Failure is only the opportunity to begin again more intelligently,” said Henry Ford, whose words of wisdom hold true today more than ever before. Whether you are reviewing an advertising campaign that did not generate the results you anticipated, or are dealing with a disgruntled service customer, the addition of humility to the equation allows you to see things objectively and move forward in the direction of implementing necessary changes to generate positive results. As you learn from your mistakes, you will be able to proactively build out problems before they come up. You will discover that the favorable results may not only be recognizable in increased measurable metrics, but also in the positive difference it makes in the trust and confidence of those around you. Don’t get me wrong. Being humble does not mean being timid. As leaders in the automotive

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industry, we have to be bold and courageous to motivate those around us in order to be aggressive in this highly competitive industry of ours. But, we can do so with the knowledge and understanding that recognizing our own mistakes and learning from them can only make each of us wiser and better equipped to generate results for our customers and business partners. It takes a big piece of humble pie for someone to admit mistakes, but it also needs to be recognized that humility is foundational to making leaders who care about serving those around them by being living examples worth imitating. Humility is not something that is contained, but rather is an intrinsic worth that extends outward to others by fostering a culture of continuous learning that inspires others to grow from their mistakes. My greatest lessons in life have come from my failures and pains. Through both, I have learned to become a better person, which has cultivated humility and compassion for others that is so essential in our people business. Let us face our failures with courage and hope. Just as a jeweler polishes a diamond with friction, so too are we sculpted through adversity on our journey of growth. Sean Wolfington is an auto industry expert and partner with Tier 10 Marketing. He can be contacted at 866.802.5753, or by e-mail at swolfington@autosuccessonline.com.

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DennisMcGinn

leadership solution

reconditioning – time to market at everett chevrolet

0 All

1 In-Transit

2 Received

The good news is that JIT has finally come to the world of reconditioning and is referred to as “Time to Market” (TTM), which covers the period from auction or trade to frontline ready. In JIT manufacturing, the technology drives the cost down and the quality up by making the start-to-finish progression a continuous, transparent and measurable process. In a dealership, this TTM workflow process has the same effect, but while the time demands and variations can be even more challenging, the JIT premise remains: to streamline reconditioning into a measurable process by taking out inefficiencies and make it fully transparent. Everett Chevrolet in Hickory, North Carolina, is a stellar example of making reconditioning control a priority. In September 2011, they installed a real-time workflow system and quickly found their actual TTM was running 11 days at the sales level of 176 used/month. To grow the business to the next level, they

decided to cut the 11 days in half and added incentives for their recon staff to achieve this goal. In March this year, Everett sold 263 used and their TTM, starting at service and ending in the frontline, was under four days. By taking seven days out, it added two turns to sales, equating to 30 more cars to sell each month at a contract-free license cost of $500. You don’t even have to get your pencil out to figure out the ROI on this deal.

4 PDR/Touch up

5 Body Shop

6 Parts Hold

7 Sublet

8 Detail

Being in control has put Everett in a whole different league. “We are 9 Quality Control 2 now running with the big dogs in sales and profit,” said Dave Everett, VP and used car director. Their success was validated. In March 2013, 10 Front Line they were named as the No. 1 certified Chevy dealer in the Southeast 1 11 Wholesale and the No. 3 certified in the nation. Here are the steps that Everett went through to measure and control their recon: • They started with the workflow process (shown above) that matched their current structure. Within a few weeks, they were clearly able to see their actual average cycle time of 11 days. • With their controls in place, they decided they wanted their average TTM to be five days or less, and installed an incentive plan to match the expected results. • Using the tools built into the workflow process, they monitor the daily, weekly and monthly averages to watch for any bottlenecks or problems cars. They also are continually looking at ways to drive down their TTM (shown to the right). In summary, Everett was able to both drive their TTM down and, at the same time, dramatically grow sales. What the realtime workflow system does is un-complicate the entire process of keeping track of all cars, and all steps, by using complete transparency to insure accountability. Why should you do this? Because it benefits everyone, has an enormous ROI, is easy to get started and is simple to use. One final point, the white board or spreadsheet you have been using is now the most expensive and inefficient option.

Month

Count

Days

Dec. ‘12

180

5.875

Jan. ‘13

265

5.375

Feb. ‘13

259

4.125

Mar. ‘13

287

4.166

Apr. ‘13

261

3.791

May ‘13

136

3.0

Dennis McGinn is the founder and CEO of Rapid Recon. He can be contacted at 866.268.3582, or by e-mail at dmcginn@autosuccessonline.com.

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Real-time workflow technology, now with full mobile access, is replacing the varying and frustrating attempts to make reconditioning accountable. This technology was originally developed, and is the concept behind, “Just-inTime” (JIT) manufacturing. JIT manufacturing centers on the elimination of waste in the entire manufacturing environment, from raw materials through shipping; ultimately, eliminating the need for inventory. It holds to a philosophy not to produce on time, but to produce in time. It is also the reason cars don’t cost two or three times as much.

An Innovator’s View I’ve been pondering a quote from English author, philosopher and scientist Francis Bacon: “He that will not apply new remedies must expect new evils; for time is the greatest innovator.” I found Bacon’s quote while looking for a concise, simple statement that describes two new market realities for car dealers: 1. It’s an “adapt-or-die” retail environment. The old ways of doing business are gone, and the new ways are ripe for reinvention. I’m not talking about the kind of operational adjustments (fewer staff, smaller budgets, a sharper emphasis on used vehicles, etc.) dealers made to survive the economic downturn. I’m looking down the road — when margin compression and increased competition will require the “new remedies” Bacon mentions. These remedies will blend technology and process, and provide improved efficiencies and profitability for the dealers willing to embrace them. 2. Constant change is the new norm. A 33-year-old Texas dealer recently told me, “More has changed in the past five years I’ve been in the car business than the prior 50 years when my grandfather and father ran the family dealership. Your processes have to be flexible and fluid.” If Bacon were alive, I think he’d conclude that one of the risky “new evils” for dealers would be a stubborn resistance to innovate as market change requires it. I know this: The 33-year-old Texas dealer isn’t waiting for other dealers to show him a pathway to success.

I also like Bacon’s quote because it captures what I consider an imperative for all dealers: Future success will depend on continually adopting and updating “new remedies” that allow you to meet the challenges today’s Internet-driven marketplace creates for auto retailers. As I see it, these “new remedies” will require dealers to craft a careful blend technology, people and process to drive greater efficiencies and profitability across their entire dealership operations. A Look at “New Remedies” For Used Vehicle Departments Last year, I created the vAuto Genius Labs division to supplement the technological innovation we already had underway. The reasons behind the new division follow recognition that automotive retailing in general, and dealers in particular, are squarely in the middle of a transition to a much more data- and technology-driven business. Our goal is to drive innovation of “new remedies” that help dealers as this transition occurs. Our initial focus plays to our background and expertise in used vehicles. I see four distinct areas where “new remedies” can make a big difference for dealers in their used vehicle operations: 1. Acquisition Precision. Simply put, there really isn’t any reason for dealers to get burned on a used car anymore.

Today’s technology and tools fully detail the opportunities and risks inherent in every vehicle. Dealers can know right up front whether a vehicle is a potential winner or loser. They have crystal-clear insights into each car’s unique opportunities and risks. These insights flow from a better understanding of retail and wholesale data (one of the blessings that flows from deeper integration among technology providers, such as vAuto’s alliance with AutoTrader.com and Manheim) and how to apply it at the dealership level to guide vehicle acquisition decisions. Now, I’m not suggesting dealers don’t sometimes take occasional hits in their used car departments because they got the “wrong” car. In my experience, however, such losses often boil down to decisions that either ignore, misread or overlook the technology-provided clues that indicate a potential problem with a vehicle. 2. Auction Efficiency: Talk about a time-drain. It wasn’t long ago that used vehicle buyers and managers needed

to spend hours to prepare for tomorrow’s wholesale auction. Now, data- and technology-rich innovations like vAuto Genius Labs’ AuctionGenius tool shrink the preparation time to mere minutes, depending on a dealership’s used vehicle scale and volume. In the lane, buyers now have instant, hand-held access to the information they need to make market-smart decisions. I don’t think these buyers will ever be as efficient and lithe as the click-savvy dealers who use online auctions to acquire used vehicles, but new technology brings them a whole lot closer. 3. Online Merchandising Effectiveness: Most dealers now recognize that, unless today’s Internet-savvy buyers don’t see their used vehicles online, the cars won’t sell. This is why the conversion rate from search results pages (SRPs) to vehicle details pages (VDPs) represents the “money metric” for their used cars. The problem: There’s a host of factors that drive this conversion and, until recently, the precise reasons why one car earns more VDPs than another have been murky. We’ve been working hard to probe these dynamics, thanks in part to our relationship with AutoTrader.com. We now have the ability to frisk the data and determine the factors beyond price — e.g., vehicle color, specific equipment, a dealer’s ad package, etc. — that make some cars more appealing than others.

I’m confident this advanced, more detailed level of VDP insight will make a significant difference for dealers as they decide how to align and allocate their merchandising investments in the most efficient and profitable manner across their used vehicle inventories. 4. Sales Transparency. We’ve all seen the studies — the current and next generation of buyers wants convenience, ease and fairness as they purchase used vehicles. They don’t want to play traditional deal-making and pricing games. Once they land on a car, they want affirmation

Dale Pollak’s quest to address key dealership challenges and validation that they’ve found the right vehicle, the right price and the right dealership for their business. Given this backdrop, dealers, like all retailers, should strive to give customers what they want, and do so in the most efficient and profitable manner possible. This may sound like a tall order, but the advance of data and technology eases the difficulty of this sales process challenge. For example, vAuto Genius Labs’ new AutoVisor tool gives dealers a way to effectively meet these customer expectations with a single click. It’s like an automated “evidence folder” or “story book” on every car; a single click generates a report that shows the information a customer wants to see about a specific vehicle in a convenient, one-screen display — including details on the vehicle’s condition and history, its equipment configuration and safety ratings; real-time price comparisons with the same/ similar vehicles and reviews from other owners and past dealership customers. Such transparency-focused sales tools are an important part of the technology transition underway for dealers. Customers, who have just spent nearly 20 hours scouting vehicle options online, will increasingly want an instore shopping experience that matches and mirrors their online research. For dealers, the transition to such technology-aided sales tools will improve their ability to “hold gross” as their sales teams are empowered to satisfy customer expectations and validate each vehicle’s unique value proposition. Innovative “New Remedies” Beyond Used Vehicles Of course, the transition toward a more data- and technology-driven business for dealers is not limited to their used vehicle departments — largely because today’s customers are today’s customers. They all use the Internet as their preferred mode of shopping, whether they want a used vehicle, a new vehicle, maintenance or service work or a hard-to-find part. This dynamic explains the dizzying array of technology-driven “new remedies” available for dealers at all of the major industry events — from automated service schedulers to CRM systems that help dealers connect with, track and serve any customer need in a more e-enabled manner. Among these “new remedies” beyond the used vehicle department, I’m especially excited about the innovative work underway to bring more clarity and transparency to new vehicle deals. Currently, dealers are loathe to offer “real” prices on new vehicles. The reason: The complexity of factory incentives makes it impossible to post a price for a new vehicle online that represents the best deal for a buyer and the dealership. In the not too distant future, dealers will see a fix for this problem, thanks to the relationship between AutoTrader.com, Automotive Information Systems and vAuto to develop a new vehicle pricing tool that correctly calibrates available incentives to match the eligibility of buyers and maximize profitability for dealers. As dealers evaluate these “new remedies,” I offer the following advice: Prepare your teams for today’s “adapt or die” retail imperative, and choose the technologies that best complement the people and processes you believe best suited to achieve your goals for dealership profitability and prosperity. It’s also useful for dealers to remember Bacon’s warning: The more you resist the adoption and application of “new remedies,” the greater the likelihood that you’ll face “new evils” that hurt your business.

PCG Digital Marketing is proud to announce its collaboration with Google Wildfire to launch the first

Automotive Social Media Marketing Pilot Program starting June 1

RobbAzaren

marketing solution

four steps to success with direct mail Direct mail can be rewarding — when done correctly. Unlike TV, radio and newspaper advertising, you can target a specific audience, with no guessing and hoping for results. Direct mail receives a response of one percent or more nationally, so when you send out 10,000 pieces of mail, you can expect at least 100 opportunities to do business. For each of those 100 opportunities, you would schedule appointments, of which about 50 would show. You would expect to sell at least half of that, for about 25 car sales. That’s 25 sales, at an average profit of $3,000 per car sold, or about $75,000. Again, this is rewarding, if done correctly. Maximizing your advertising dollar is important to every business, but so many businesses fall victim to common mistakes, throwing money into different campaigns and hoping for the best. There are few things more damaging to your business than spending a lot of money and not getting results. So how do you avoid mistakes and get the most out of each direct mail campaign? By following these steps: Design a Campaign That Plays to Your Strengths

Analyze your strengths and weaknesses with help from your mail company and focus on what you do best. If you have a strong BDC or sales staff who is great on the phone, go with a lead generation-type of mailer. If you want to create excitement and showroom traffic, then an event piece with a giveaway often works best. Target the Right Customers

Use data to ensure that you are reaching exactly the customers who you want to reach. Let’s say you are doing a sub-prime mailer. You may want to target consumers with scores of 500-619, no repos in the last 12 months, bankruptcies discharged and $2,000 minimum income. Get the right data and be specific. Select the Right Mail Piece and Envelope

Choosing the best envelope for your campaign is important. If the customer never opens the letter, you won’t get results no matter how good the offer contained inside is. There are many different types of envelopes; work with your mail company to decide on one that works well in your market and sets you apart from your competition.

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“

Maximizing your advertising dollar is important to every business, but so many businesses fall victim to common mistakes, throwing money into different campaigns and hoping for the best. There are few things more damaging to your business than spending a lot of money and not getting results. So how do you avoid mistakes and get the most out of each direct mail campaign?

”

Prepare Your Staff This step is critical, but often overlooked. Have your mail company provide copies of the piece in advance so you can complete necessary training with your staff. Make sure everybody is on the same page and ready to create a great first impression when the campaign begins. Add some “seeds” to your mailing list; addresses of people you know so you can be sure when mail is being delivered. Set up call tracking so you can listen to calls and better track your results. Direct mail is a powerful tool for driving business – if used correctly. Follow these four simple steps every time and you are guaranteed to have a successful campaign. Robb M. Azaren is the national lead generation manager of Dealer Marketing Services Inc. He can be contacted at 800.723.2709, or by e-mail at razaren@autosuccessonline.com.

autosuccessonline.com

podcast interviewee

www.pcgdigitalmarketing.com/socialfire

MarkTewart

sales & training solution

you can make gross profit in the digital age

First of all, it is never possible to make the profit you desire without the right belief system and mindset. If you believe you cannot make profit, you will act in such a way to prove yourself right. Everything you do will have a subconscious driver that will lead you to sabotage profit. If you buy into the belief system that it is not possible then, it will not be possible. You will have given away your power. The second part of our mindset is how you value yourself. If you believe you are valuable, you will present yourself and product or service in that manner. Not arrogantly, mind you, but with an extreme sense of value. If you do not value yourself, you will demean what you sell with every fiber of your being. You will dress in a lesser manner, talk in a less confident tone, present and demonstrate in a defensive manner and sell yourself short. It’s never really about the customer; it’s about you. You either believe in yourself or you do not. Give yourself permission to be worthy. Examine everything in your sales process and ask yourself what diminishes or builds your value. What do you do in your sales process that tells your story, tells it well and demonstrates it? Stories build value. No story,

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no value. At that point, you are simply a commodity selling a commodity. Commodities are not valued; thus, you are transactional instead of transformational. Your sales process must differentiate, elevate and motivate. Otherwise, you are elevating price as the sole reason for a decision. All decisions are based upon leverage. Unless you have specific leverage points built into your presentation, you are asking your customer to think in terms of price only. Remember: All things being equal, the final decision will be on price. Your job is to make everything about you, your product, service and delivery of that service as being far from equal. How do you handle the issue of price? Perception is reality. If you pre-frame the issue of price in a positive fashion, you can build value. If you do not, you will forever be in a defensive and reactive mode. It is far easier to practice risk aversion than risk reversal in the mind of the customer. What have you and your organization done to train and educate on the issue of professional negotiation? Negotiation begins in some manner at the point of contact. What do you have in your phone process or other contact points to handle the question of price? Knowing what to do, when to do it and how to do it leads to higher profits. Nobody — and I do mean nobody — makes you lower your price or lower it continually to a level that is not satisfactory. Price cutting is a self-inflicted wound. It is simply an excuse that competition is driving down your profits to an unacceptable level. If you have the proper belief system, mindset, sales process, education and ongoing training, it is absolutely possible and probable to immediately increase your profits instantly. If you increase your gross profits by 10 percent, it would take a significantly lower resulting sales volume to lower your overall profitability. Examples from history simply do not bear out this probability. Other than Wal-Mart, name one discount retailer that has survived in the last 100 years. Change your thoughts and actions and you will change your profits. Always take responsibility that it is simply a result of you. Do not whine, blame or do anything else to give away your power. Take back your power and you will take back your profits. You are worthy. To receive the free special report “Take Back Your Profits,” e-mail me at the address below with the word “Profit” in the subject line. Mark Tewart is the president of Tewart Enterprises, and the author of the best seller, How To Be A Sales Superstar. He can be contacted at 866.429.6844, or by e-mail at mtewart@autosuccessonline.com.

podcast interviewee

“You can’t make gross profit anymore now that we are fully in the digital age.” That is a common observation repeated every day by frustrated salespeople and managers. The reality is, that simply is not true. Gross profit is and always will be possible — if you create and practice the right elements for profit.

RickMcLey

marketing solution

technology: we wanted flying cars, but instead we got 140 characters Social media has become a burgeoning market for a variety of reasons. On the brink of absolute globalization, the world is merely one click away. Loved ones now communicate with ease from great distances, marketing researchers dig through mountains of metadata in order to best determine a target market and advertisers now reach audiences with the ease of Facebook or Twitter. Furthermore, the social media phenomenon has increased the potential for easy self-expression, as well as promotion. As a child, I remember thinking that by the millennium we would have flying cars, subservient robots and day trips to the Moon. However, in 2013, we are communicating in 140 characters and expressing our emotions via blog. This is where technology has led. Social media has affected us globally, socially and professionally.

phone calls. We used to have brunch. We used to meet for coffee. Now, we message, text, Skype, DM, poke, tweet, Kik, comment, FaceTime, like, share, favorite, SnapChat, check-in, +1, pin or connect. Social connection is constantly at our fingertips. If I miss a longtime friend, I no longer take a road trip to visit; we simply Skype during our lunch break and catch up virtually face-toface. Technology has long been changing the way we interpersonally interact with each other; however, with the rapid gestation of social media, communication continues to be altered at an even quicker pace. This begs the question: Are we confusing digital intimacy for social intimacy? Have we lost the ability to communicate organically, and is this a problem that amplifies in strength from generation to generation? Even romantically, more and more people are meeting online through dating sites or social networks.

On a global and societal level, social media has altered how we connect with one another in almost every circumstance. It has not only promoted communication with people throughout the world, but it has also brought people together, no matter the distance or event. Look to the Egyptian and Tunisian revolutions, in which social media was the ground on which morale and unity were fostered. In Tunisia, when Mohamed Bouazizi self-immolated in protest of police stealing produce from his vegetable stand, people began organizing on Facebook and Twitter to protest the oppressive government. While social media may have led to positive change in Tunisia and several other countries that utilized it for uprising, it can yield negative implications, as well. Exploring the recent tragedy in Boston, we can see both the positive and negative capabilities of social. When the story of the Boston Marathon bombing broke, social media was roaring. Information spread rapidly through Twitter and Facebook, but amidst the chaos, false twitter accounts and misinformation only added to the ensuing confusion. However, Google Person Finder was used by many to locate loved ones lost in the bedlam, and tweets were sent telling people where to go for aid.

To be interactive, listen to your consumer’s opinion when expressed and address it appropriately. Social media can also be fully equipped with a tool to display your inventory in a professional, easy-to-see manner. Create an option on your Facebook page for scheduling services or check-ups, to create even more ease in your consumer’s busy day. Furthermore, if handled properly, social media only makes branding stronger and more attention grabbing. Everything is going digital, and your brand doesn’t want to be left behind in this transition. When someone reviews their Twitter feed or Facebook news feed, you should want your brand center stage, so that your business will now be a part of the ideal consumer’s everyday agenda. Also, this will allow you to advertise your services and products through an immediate, assertive medium and ensure that you are providing the best services possible to your consumer. Have you ever wondered what your customers are saying about our company? Well, I can tell you how to find out: Facebook, Twitter, Yelp, Tumblr, etc. It’s all right there for you to see. If you will simply take the time to implement a necessary step to better your business, all of this information will be at your fingertips and discretion. Social media is still new for all of us, and it’s not too late to join in the race. At the end of the day, all a consumer wants is a company with which they can develop brand loyalty. Brand loyalty is achieved through quality service, good product and being interactive. Rick McLey is the founder and CEO of Interactive 360, Inc. He can be contacted at 866.438.9808, or by e-mail at rmcley@autosuccessonline.com.

AutoSuccess & DealerELITE are both designed to keep the view from the sales floor front and center in everything we do, and we've come up with an exciting new way to accomplish this. Our new Dealer Panel gives voice to dealers, GMs and sales professionals to share their experiences — sales techniques, new technologies and ways to motivate staff — giving our readers the benefit of their experiences.

SEE PAGE 20 FOR MORE...

THE

DEALER PANEL autosuccessonline.com

successful solutions provided by

podcast interviewee

We used to go on dates. We used to make

Now, this is the part you have been waiting for; how do we, in the automotive industry, capitalize on this opportunity? It’s simple: Do everything that I just wrote. Perhaps not the part about starting a revolution or meeting your spouse, but it is imperative in this day and age that we realize we have to embrace social media. It is not a trend, and it is not a fad; social media is here to stay. The true beauty in all of this emerging media is that it allows a company, brand or dealership to create a one-on-one relationship with a single consumer while maintaining the capacity to reach thousands. It provides us with the ability for interactivity, which is an increased desire that grows with every upcoming generation.

the dealer panel

Tony Provost AndrewDiFeo Brian Benst ock

part 1

it’s that time of the year

Car sales can be a volatile market for many different reasons, but there are certain predictable changes for a dealership to navigate. Both, the time of year (depending on geography) and model year change can be times for dealerships to step up their marketing or to step back and take care of internal needs. For this installment of the Dealer Panel, we spoke with Brian Benstock, vice president and general manager of Paragon Honda and Acura in New York City; Tony Provost, president and dealer principal for Nissan of Bourne in Massachusetts; and Andrew DiFeo, general manager of THE of St. Augustine in Florida. Hyundai

DEALER PANEL

AutoSuccess: What sort of changes do you make in the operation of your dealership based on the time of year? Tony Provost: From the beginning of January until about the 10th of

February, we do all our inside maintenance — painting, updating or anything that has to be done from an operational standpoint. We train people 12 months of the year, but to keep things vibrant, and since we’re in the northeast and have snow from time to time, I do a lot more bonus programs for training in parts, service and sales. To get the year kicked off, we recap the last year, and then go through a tremendous amount of training about what we have done, what we haven’t done and what we need to improve on. Then, I take the input from that and come up with programs and incentives to get people pumped up for the first part of the year.

Andrew DeFio: In Florida, we really don’t have seasonality, so we

don’t really make changes in our business based on the time of year. Our business is very consistent here in Florida. We really aren’t as influenced by holiday sales, either. For instance, I know up north there’s a bigger push for some of the holidays, like President’s Day and Memorial Day, both from the business side and the consumer side. Here, the holidays aren’t as big a push. It’s consistent, at least in the five years we’ve been open.

Brian Benstock: The dealership doesn’t change much from an advertising standpoint based on the time of year. Obviously, the summer months are fueled by Memorial Day, July 4th and Labor Day, which traditionally people have off work. We find that, in our case, Acura and Honda support the dealers with sales events or special incentives for the holiday period. For us, the goal is to out-perform the year before, so we make the necessary adjustments to have the increases we anticipate we should have. We find that if we change too much, though, we confuse our customer, confuse our salespeople and don’t really get the results that we want. Consistency is key, as well as creating a good value proposition for our customers.

it gets into the warmer months. They come here. A lot of dealerships do the opposite, but it’s been a winning thing for us. People will say “You’re always on TV,” but they’ll say that to me in July, when we’re off. AD: Obviously, we tailor a lot of our marketing to the Hyundai’s Tier 1

sales events — Hundai has three sales events a year. In April, Hyundai Motor America, the corporate office, ran a national campaign called the “Let’s Go!” sales event, using digital and television assets, so we dovetailed that with our dealership’s marketing to align. successful solutions provided by

BB: From a sales perspective, the manufacturer typically supplies

you with model-year clearance events and year-end events, and we’re certainly going to follow those programs, because at the manufacturer’s level, they have a lot of media presence. We’ll integrate that message into our local market message. The things that really change for us, though, are the needs of vehicles. We live in a market that’s warm in the summer and gets cold in the winter, so people’s needs change — making sure they have good tires, wipers and that the car’s ready for winter. We also have people to travel to the beach in the summer, so they need to make sure their air conditioning is working properly, and we make sure that families who travel have vehicles prepared for those long trips. So, the biggest adjustments we make are in terms of service.

AS: Describe your basic marketing strategy. AD: We’re digitally based in our marketing. The overall theme of the

dealership, which is our customer experience and our online reputation, is mentioned in all our ads, whether it be in traditional media, like electronic or direct mail, or our online display ads, our search engine marketing or our e-mail campaigns. There’s always the theme of “its all about the experience at Hyundai of St. Augustine.” We find that it’s probably why we’re so consistent. We never really have huge spikes in sales, up or down, because we have a consistent approach throughout the year. We have the same message, and then we overlay that with electronic campaigns, specifically cable television, just to give an extra push for awareness of the Hyundai brand, our dealership and any special offers that are running

the dealer panel

TP: We do eight e-mail and mailer pieces a year. We strategically plan it and do it in December, when a lot of people aren’t doing it. We’ll do a big mailing in the beginning of December, and try to have our month made before Christmas, so anything after Christmas to the first of the year is bonus. It works for us. We do e-mail campaigning 12 months of the year, but we do eight direct mail pieces, 30,000 to 40,000 pieces, during the year. BB: We run the “vehicle exchange program” 24/7/365. It’s our program

of the value that one transaction brings to our dealership, and AS: How does marketing change for your Chris Saraceno Tony Provost AndrewDiFeo Brian Benst ock because dealership seasonally? it applies to both our new and used car operations. We’ve created that TP: We’re in a vacation area, so we’re busiest from March through the message in the market and have stayed with it for a long time; we’re beginning of December, but I advertise a lot more in the slower times of the year than the busier times. We market all year long, but we push a lot more in December through the end of March than we would typically do June through September. My thought process is that, especially with television and radio, you can buy it for a lot less money, and with the frequency we push, people still remember when

THE

DEALER PANEL

and we run it exclusively in our market. That program is one we use

not really seeing the end in sight for that. I know a lot of dealerships change their marketing message every 30 days, but we’ve found it to be successful to keep running our campaign. If you have questions or are a dealer who would like to be considered for the panel, please contact us at thepanel@autosuccessonline.com. successful solutions provided by

RussellGrant

leadership solution

nine things you can do right now to increase your data security Last month’s article focused on how to determine whether a vendor has what it takes to keep your data secure and what to look for in a vendor before granting them access to your DMS. But the truth is data security starts at your dealership with the policies, processes and procedures that you establish. Here are steps you can institute now to improve the security and integrity of your data. 1. Conduct Background Checks

Employees you bring on will have access to, or will be in the vicinity of, customer data. When hiring staff, conduct background checks: drug, criminal and credit. Contact references, as well.

2. Establish a Confidentiality Agreement

Enforce an agreement that states confidential and proprietary information belongs to the dealership — and have all employees sign it. 3. Limit Access to Data

Determine which employees will be granted access and/or administrator duties to what resources, including CRM, DMS, Intranet, social media, Website and e-mail. Document user names and passwords. 4. Institute Password Best Practices

Passwords should be unique to each individual, at least eight alphanumeric characters in length and account access should be blocked after the fourth invalid password attempt. Password changes should be scheduled. Passwords should not be displayed near workstations, shared with other staff, or transmitted via insecure technologies (e-mail, IM or fax). 5. Invest in Data Protection Software

Invest in protective software, including antivirus, anti-spam, firewall, data encryption and virtual private networking (VPN). Institute protective data measures as well — servers should be at a separate location or in cages, backups should be performed and data retention and destruction policies should be established. 6. Disable Access upon Termination

When an employee is terminated, make sure to collect and/or disable their key, security codes, remote access to any systems, Intranet access, e-mail access, phone extension and voicemail. For the benefit of both the employee and the dealership, conduct an exit interview, if possible.

7. Require a Non-Disclosure Agreement

Require all vendors you share data with to sign a non-disclosure agreement. 8. Use an SSAE-Certified Vendor

Our industry has not yet established a standard for policies, processes and procedures that work to ensure data security. The financial industry, however, has — SSAE-16 Certification, developed by the American Institute of CPAs. By partnering with a vendor that has achieved SSAE-16, you know they uphold the highest level of security and can protect your data. 9. Require Documentation

If a vendor is not SSAE-16 Certified, demand documentation of their restricted access to buildings, data, computers, technologies, resources and systems; scanning technology at entrances (cards, fingerprints or retinal scan); government-issued ID requirement of visitors; password policies and best practices; firewall, anti-virus, anti-spam and data encryption software; equipment monitoring; data retention and destruction policies; backups; and a business continuity and recovery plan in case of disaster. Russell Grant is the vice president of sales for J&L Marketing. He can be contacted at 866.503.8397, or by e-mail at rgrant@autosuccessonline.com.

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AJLeBlanc

marketing solution

conquesting with your pay-per-click This month I am interviewing Jim Flint, president of Local Search Group. Jim is a well-known and respected expert in the automotive industry, as well as a popular conference speaker, presenting workshops that help dealers reach their business goals. AJ LeBlanc: In general, should dealers set-up conquest campaigns? Jim Flint: Conquesting — and Google, for that matter — is all

about relevance. So if the search is relevant, then yes. My point is I would encourage comparisons in the same segments — say “Camry” vs. “Accord.” If you have a Web page that compares the differences between the two with good content, along with a video with the proper URL and tags, then you’d be relevant. If it’s not relevant, it becomes financially difficult. Google will charge you more and you will show up less frequently on searches you’re not relevant for, making conquest campaigns more expensive.

AJ: Who should dealers conquest: other local dealerships with the same primary manufacturer, or dealerships with competing manufacturers? JF: Initially, I’d say your conquest campaigns should target dealerships

that are not in the pay-per-click space. If these dealerships are running ads in other mediums and not protecting the finish line — paid search — then you can benefit from buying their name.

AJ: When developing conquest campaigns, should a dealership’s geography be different than the rest of their

paid search campaigns? JF: It can be and probably should be. A best practice is to

isolate your conquest budget and target specific pieces of the puzzle. If you want to go after customers in a specific geography because of, let’s say, a high household income — and it’s outside of your existing area — then create a campaign specifically for that area with precise ads so you can determine whether or not it’s successful. AJ: In a conquest campaign, what are guidelines for copy? JF: Relevance. A dealership can’t use someone else’s corporation name.

Also, it’s advisable to leave things out of your ad if you can’t back them up at your place of business. If someone searches for a Camry but you only sell Hondas, don’t tell him or her you have a Camry in stock and then take them to a page full of Civics.

AJ: Where should dealerships’ conquest ads land? What should be on these landing pages? JF: Your ad should take customers to the most relevant landing page.

Keeping with the Camry/Civic example, if you’re conducting a conquest campaign against a competitor, don’t send a consumer who is expecting to see a Camry vehicle display page (VDP) to a Civic page.

AJ: How do conquest campaigns affect the overall pay-per-click budget? JF: It’s typically more expensive — that’s why I only advise to do one if

you’re already dominating your own area. A best practice is to command 80 percent of the impression share for your make and models.

AJ: If my dealership is No. 1 in organic searches, should I buy my name? JF: Absolutely! If your dealership is listed in both organic and paid

search, it not only increases free recall of your name with the consumer, but it also increases your organic, free clicks.

AJ: How does buying your name affect your pay-per-click budget? JF: It reduces your average cost-per-click. Google will give you a

higher-quality score based on your relevance and, therefore, up your dealership’s visibility.

AJ: Give an example of a dealer who benefited from buying their name. JF: I had a dealer who was being attacked from the north and south,

so he bought his name. Since he was more relevant, his competitors’ cost-per-click went up and they began to run out of their budget more quickly while his cost-per-click stayed intact.

AJ: Overall, should a dealership do more conquest campaigns or spend more money protecting their name? JF: At the end of the day, we’re trying to gain more market share and

sell more cars. The most important component to that is being relevant. So, first and foremost, you have to be who you are and buying your name supports that core philosophy — then you are ready to invest in conquest campaigns. If you’re not willing to invest in your page, videos and site links, then you shouldn’t be throwing money away on a page that doesn’t have quality, relevant content.

AJ LeBlanc is the co-founder of Car-Mercial.com. He can be contacted at 866.795.9094, or by e-mail at aleblanc@autosuccessonline.com.

autosuccessonline.com

podcast interviewee

To reach Jim Flint for more information regarding this topic, you can e-mail him at jflint@autosuccessonline.com.

Hope with MO, enjoying Camp his Roper Kia in Joplin, Jack Frost, owner of 速 allows him to do the things he loves while his family. Rich Dealers

TerryGibson

marketing solution

why your dealership should have live chat

In short, ask yourself this question: Why do I treat my online leads differently than I treat customers on my lot? Think about this, as well: How many people do you know who would rather text that talk? We all know lots of people who prefer a text to a verbal conversation, so if you don’t have it on your Website, you are missing a vital section of the modern-day consumer by not communicating in the way they would prefer. Websites can spur three types of communication: 1. The phone: This method only works,

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however, when your store is open. 2. Forms: Customers can fill them out, but it does nothing to obligate the customer to continue the sales process or make you stand out from the dealer down the road. 3. Proactive live chat: Just as with your customer on the lot, it makes sense — once they have landed on a product or service — to proactively engage that customer and offer some type help in navigating your Website. With live chat technology, an algorithm is available that tells live chat agents when a customer is most open to being engaged in a conversation, and when this conversation will yield the result. When this technology is used properly, businesses often see their lead count from their own Website double and triple — and we all know a lead from your own Website is the best lead there is. But don’t forget about your service and parts departments. The same practice can be followed in every department with great results. Remember: Every little bit helps and, at the end of the year, a properly set-up live chat program can lead to a fantastic ROI. So, here’s the takeaway for setting up live chat at your dealership: • Get professional help. Live chat is only effective if it’s properly done. • When getting that professional help, make sure you only sign month-to-month contracts. That way, if you don’t see the results, you can fire them immediately. • Make sure it’s proactive. • Live chat, when done properly, will also help you build a marketing database. • Make sure the live chat is available 24/7/365 in sales, parts and service. Terry Gibson is regional vice president of sales at Engage to Sell. He can be contacted at 866.886.9493, or by e-mail at tgibson@autosuccessonline.com.

podcast interviewee

So, let’s talk about Website engagement. We spend thousands of dollars to drive traffic to our Websites, so why don’t we proactively talk to 100 percent of our customers who go there? As a dealer or GM, would you want your salespeople only talking to 50 percent of the customers who are on your lot right now? After you spent all that money to get them there, shouldn’t you engage the customers who show up?

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GlennPasch

marketing solution

are you a marketing sniper? I recently read the autobiography of Chris Kyle, the most lethal sniper in U.S. military history. What struck me was his description of the different weapons and what they were used for. Each weapon had a different purpose. It struck me that many companies use the wrong marketing “weapons” to get their message across. I constantly receive questions from businesses on how to better communicate their message. The questions range from frequency to how to get it in front of as many people as possible, but here’s what they forget to focus on: • What is the objective of the message? • Who is the intended target? • What is the “weapon” of choice to distribute? Most marketing is still done in a mass media-style push. It is trying to hit as many people as possible. Although it does hit its intended target, there is a lot of collateral damage. Hitting people who do not want to hear from you with a message or attacking them with multiple messages from your marketing department can end up turning these people off to your brand even when they are in market for your products or services. Let’s look at these three aspects of successful marketing: What is the Objective?

Just like a military operation, you need to understand the objective. What are you trying to accomplish and what do you want your audience to do? Without a clear objective, you are running marketing on hope. Be specific. Be clear on what you want to accomplish and it will be easier to achieve your goal. Small wins are better than a huge assault.

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Too many times, marketing is blasted to an entire database. I heard a quote the other day that people do not want e-mail; they want “me” mail. So whom is the message designed for? Heads of a company? The marketing manager? The consumer? Each of these audiences need and deserve a different message designed for them. As consumers ourselves, we do not like being lumped into a group where all of us are treated as equals. We all like feeling special. Choose your special audience and send them a special message for the best results.

What is the Weapon of Choice?

Not all means of communication are correct. E-mail blasts, TV commercials, radio and magazines each have their place, but many times the message is the same in all of these. In battle, the sniper hones in on one target, follows them and, at the right time, delivers. The same thing should apply to your marketing. Choose the objective, locate the audience, design the message and choose the right delivery message for the audience. Small wins. One effective message is more impactful than 100 e-mails that have no effect. Remember that collateral damage has long-term implications The beauty of the Internet and the availability of information was, at one time, wonderful, but we have gotten to a point where there is so much information at our fingertips and we are overwhelmed to the point of inaction. In order to stand out, you have to be that sniper, cutting through the cloud of information and deliver your message cleanly, and with impact.

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Glenn Pasch is the CEO of PCG Digital Marketing and a national speaker and trainer. He can be contacted at 866.611.0998, or by e-mail at gpasch@autosuccessonline.com.

podcast interviewee

M A R K E T I N G

DanBrancaccio

sales & training solution

tire inflation maintenance, the new oil change Do you remember the good ol’ days, when keeping your service bays full was as simple as opening your doors? Remember when customers would routinely return to your shop at least once a quarter or 3,000 miles for an oil change? Remember how profitable those regular visits were? Tire sales and rotations, wheel balances, wheel alignments, brake jobs, wiper blades, air filters, fluid exchanges…. Filling your bays was easy because customers had a “need.” If nothing else, they certainly needed their oil changed. It said so in their owner’s manual and on every Jiffy Lube commercial.

Make no mistake, your business is need driven. It doesn’t matter how pleasant your staff is, how great a waiting room you have or what kind of coffee and donuts you provide your customers; they will only visit your service facility when they need to. To consumers, getting their car serviced or repaired is about the same as going to the dentist — they only go when they have to.

Perhaps the greatest challenge we currently face in the automotive service industry is “car count.” It’s not that we lack maintenance services and other needs to sell customers when they show up in our service drives; the problem is they simply don’t show up — and the reasons for the disappearing act probably are not what you may think at first glance.

If your customers have regular air in their tires, they can accomplish this necessary maintenance anywhere, including the local service station or even at home. However, if their tires are filled with nitrogen, they are compelled to visit a service facility equipped with nitrogen for each tire calibration. Embrace a program that combines nitrogen inflation with high-value benefits such as tire repair and replacement coverage, roadside assistance and state-of-the-art customer contact tools such as text messaging, Facebook and e-mailing features to remind each customer of this monthly maintenance need. You can almost count on that customer returning to you.

While our slowing economy may have been the catalyst for the service slowdown, it is no longer a key factor — the economy is rebounding and new vehicle sales are booming. The reduction in customer visit frequency is largely the result of things going right, not wrong. Advances in build quality and component technology have resulted in better vehicles and an ever-expanding duration between scheduled maintenance services. This is all great news for manufacturers and consumers, but not those of us who earn our livings by servicing automobiles. Many of the services that most of us grew up selling and performing are today all but extinct. Regular tune-ups, annual coolant flushes and rusted out exhaust systems were lucrative services of the past. Most late model vehicles don’t require new spark plugs until 100,000 miles. Engine coolant is designed to last up to 150,000 miles and some transmissions are designed to never need service. Even the formerly reliable quarterly oil change has devolved into an almost annual service for most vehicles. And herein lies the problem: Customers simply don’t have a “need” to visit you.

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So, how do you compel your customers to return to your shop regularly when most of the customary needs no longer exist? Simple. Leverage the most popular and important need there is: tire inflation maintenance. Every owner’s manual of every vehicle sold in this country encourages customers to check their tire pressure every month — a stance also taken by every tire manufacturer, the federal government and further promoted in media whenever vehicle safety or fuel economy are discussed. Everyone knows that proper tire pressure increases tire life, fuel economy and safety.

A comprehensive nitrogen tire inflation maintenance program can have a significant impact on your service drive traffic by leveraging the only service that every vehicle needs every month. The typical consumer in America visits their car care professional about 1.2 times per year; customers who enroll in tire inflation maintenance programs, however, visit their dealers over 4.5 times annually. A typical nitrogen tire inflation maintenance program is sold via what is known as a “Cap Kit.” Each Cap Kit contains a set of special valve caps that indicate the vehicle’s tires are filled with nitrogen, as well as a customer “registration card” and a specific group of customer benefits that range from roadside assistance to tire and wheel repair and replacement protection. Once a vehicle’s tires are converted to nitrogen, and the “nitrogen” valve caps are installed, the dealer or consumer uses the registration card to register the vehicle online, wherein the customer’s membership is validated. Once a customer has registered, they have access to the benefits included in the program while their contact and vehicle information is entered into an automated system that sends them monthly “inflation reminders,” usually via text or e-mail. Some companies have expanded the customer contact features to enable dealers to add service coupons, announcements, interactive customer surveys and questionnaires and other features. While most dealers are already in constant contact with their customers via various phone, text messaging and e-mail marketing and service reminder campaigns, utilizing a tire inflation maintenance program can provide another method of keeping your business top-of-mind and customer coming back without “over-contacting” the customer. With manufacturers striving to build the maintenance-free automobile and greater need than ever to keep your service drive busy, a tire inflation maintenance program may be worth a look. Dan Brancaccio is the national sales manager of NitroFill, LLC. He can be contacted at 866.387.7217, or by e-mail at dbrancaccio@autosuccessonline.com.

TroySpring

The Total Package conference

marketing solution

sounds like a deal to me? “Sounds like a deal to me!” I think almost every dealer or manager has said these words when in front of a vendor, or when trying to make decision on a media buy. The truth is, however, that every vendor has a pitch that makes their product “sound like a deal.” I talk a lot about how it’s easy to make poor decisions as a manager or dealer when it comes to advertising. Here are a few other things we say: • “It’s only $1,000; let’s give it a try.” • “I am not sure what else we will do if we don’t do this.” • “We have to do something — let’s try it.”

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I would caution you against these flawed decision-making processes and ask that, when you have money to spend, you put all options on an even playing field. There are some easy ways to compare media buys and, as I like to say, allow them to compete for the “win.”

And on and on. I have even heard, “She’s hot; let’s do it — it’s only $1,000.”

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All advertising has some factors that will allow you to see if the numbers stack up. For example, if one ad reaches 1,000 people for $1,000, and another reaches 10,000 for $3,000, the thought of “Hey, it’s only 1,000 bucks — let’s give it a try” is stupid, knowing you can get 10 times the exposure for 3.3 times the money. However, there are many other factors that play into the effectiveness of that ad. How good is the creative? How many times will each ad be seen? (Frequency is vital to all campaigns, especially the ones that are less targeted.) How much competition is there in the same space you are trying to occupy? On and on.... Here are some of the factors you should be using to stake up the ads against each other:  • Cost: It’s the obvious and easiest portion to factor. • Reach: Ask for exact numbers.   • Frequency: An ad becomes more effective the more it’s heard. If it is heard only once or twice, it is ineffective; if heard eight to 10 times, it will start to work — and it’s only worth doing if it works.   Now, here are some questions to ask yourself in your advertising plan: How much competition is in this space? If you are going up against a dealer who spends $50,000 on radio a month, do not even think about spending $3,000 to compete. It is a waste of money and will not work at all.   How targeted is the audience? If the target audience is the only variable and all other things are equal, this is easy to figure. If you have a targeted audience and the target media is double the cost, however, ask yourself if the target is more than double the value.   Is it verbal, audio or visual? They all have value.   Are there opportunities in the space you are about to occupy? If you are new to the space, you need to own premium spots.   Is it interactive? Interaction is valuable. Anytime you can be proactive and not wait on success happening, it is worth far more than double the ad space if it generates the leads for you.   Can you own or dominate this space? If you can, do it.    Hopefully, this just gets you thinking. The average dealer spends $40K to $60K a month on advertising. Take the time to decide on how to spend it, and, more importantly, compare the ads on an even playing field. Good selling!

Troy Spring is the president of Dealer World. He can be contacted at 866.906.7884, or by e-mail at tspring@autosuccessonline.com.

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Jeff Phillips, GSM

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JasonHauk

marketing solution

the lesson of charlie chaplin Anybody remember Charlie Chaplin? Charlie came here from England in his early twenties, and in 1915 his production of The Little Tramp took the country by storm. Charlie was the champion of silent films. He was the rage — until talkies came into the picture. Charlie, however, was still sold on silent movies and continued producing movies without sound for 10 more years.

seem to be a reasonable explanation for Charlie to nix new technology. Oh, well — he was not allowed to return to the United States anyway, since J. Edgar Hoover didn’t much like Charlie or his movies. Let’s face it, Charlie was a dinosaur. He was getting fat using old technology. It’s a common disease and is still rampant today in all industries — especially the auto industry — when it comes to marketing.

So, why did he do that? A few possibilities: • He couldn’t afford new equipment? (I doubt that; he was loaded). • Did he sound like a duck? A lot of silent movie stars had such bad voices they were kept them from moving into talkies (Nope. Actually, he had a great voice).

Don’t be a Charlie. Many dealerships think they have effective video on their Websites. Is this really the case? Most Websites “video” is no more than a slide show. Often, the slide show is made up of stock images. Is this how you stand out amongst the thousands or other similar vehicles? Are you really spending money on this old tech?

Well, then, what kept Charlie from accepting the new talking technology? I’ve got it now — if he went to the new technology, he’d make too much money? Consumers, for some reason, like new stuff. Well, I must say I’m perplexed. There doesn’t

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Well, there is new technology available. Dealerships can have real video of the actual vehicle quickly and easily. Videos of the new or pre-owned car can be professionally produced and delivered to your Website within minutes, complete with audio, personal

sale presentations, exterior and interior 360º panoramic presentation. These are so effective that the total sale of your inventory — from presentation to down payment — can be virtually completed over the Internet. Re-enter Mr. Chaplin. “If fans are still watching my silent movies, why switch to talking?” The answer is simple: Eventually your customer base will evaporate unless you can talk all the other movie studios into not making talking movies. Fat chance. Charlie, you had better hook up with the new technology, or you’ll only need 10 seats in the theaters. Your moviegoers are going to talking theaters, Charlie. Remember that the number of cars to be sold all this year is a predetermined figure. Nobody knows the exact number, but it is limited. What isn’t predetermined is who will sell them. That’s where the marketing sets in: fighting to get your share of that predetermined number. If you sell 100 more cars this year, another dealer is essentially selling 100 fewer cars. That’s just math — and marketing. Sorry, Charlie, I’m moving ahead. Jason Hauk is the owner of Sharp Cars and Dealer Marketing Concepts. He can be contacted at 866.388.4503, or by e-mail at jhauk@autosuccessonline.com.

JimmyVee & TravisMiller

marketing solution

the secret to finding your next “big idea” (Hint: It starts with a “c”)

Creativity is not accidental. It’s the result of your personal determination to learn and use creative thinking strategies. Creative people look at the same information everyone else is looking at, and yet see something completely different. A creative person will run their business more productively, developing solutions to complex business problems with the ability to revitalize and improve upon stale ideas, while creating better processes along the way. Where should you begin? Start with belief. A key to regenerating your creativity is to believe in it, so reprogram your mind. People act in accordance with what they imagine to be true about themselves. Change the way you view yourself and soon your ideas will improve. Tell yourself daily, “I am a creative person.” And remember that the biggest enemy of creativity is fear, uncertainty and doubt — so stop playing it safe. Risk being known. Risk being rejected. Creativity is worth it. Once you’ve reprogrammed yourself on your ability to be creative, the next step is to fall back in love with the word “why.” A key to being creative is asking “why?” Children are more creative than adults because they continually discover new things by asking the question “why?” Instead of believing you have all the answers, seek new information and rekindle your childlike tendency to ask “why?” We’ve grown up being taught that the teacher is always right and that there’s only one answer to a question. A more creative approach is to question and ponder many answers, much like Socrates who continually asked the question “why?” Socrates could win any argument based

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on the questions he asked. Restore this way of thinking and teaching. Practice looking for second and third answers in your business — additional answers outside of the continuum of what’s considered to be the “right” answer so that new ideas, innovations and processes emerge. Remember, status quo is not always the best way to solve an issue. Develop more solutions to the same problem. The more solutions you come up with, the more creative your solutions will become. Once you run out of the most obvious answers, you’ll soon uncover new ways to solve your problems and reinvent your business. And when facing problems, remember that challenges provide an opportunity for creativity, and that a series of corrections will steer you toward future success. By continually challenging norms and asking questions, your own “creative genius” emerges — your next “big idea” in marketing could be moments away. Get started now with this quick three step action plan for creativity.

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Three Ways to be More Creative Now: 1. Collect ideas and examples of what other people are doing. The best way to get a good idea

is to have a lot of ideas to choose from. Create a special file of other people’s marketing ideas for your dealership. Collect and store ads, quotes, designs, ideas, questions, cartoons, etc. Then, when you need an idea, you can build upon ideas from your files. Set an idea quota for each day. Brainstorm new ways to do things each and everyday so creativity becomes a habit. 2. Create an environment of creativity. Identify and then craft an environment where and when you are most creative. Surround yourself with creative people. Make the creative process important by taking practical steps to catch ideas. Put pads and pens everywhere at home and at work. Carry a journal. Capture ideas whenever you can. Put whiteboards up to capture and brainstorm ideas. 3. Write down the top three problems facing your business right now. Come up with 10 solutions to each problem. Abandon the obvious answers. Stare at your problems until they make sense. Try applying old solutions to new situations. Ask “why?” Look for new answers to the problems you are facing.

For a complimentary Traffic Scale Report, which compares the quality of your traffic to other dealerships in your area, visit www.TrafficScale.com and use coupon code AS1306. Jimmy Vee and Travis Miller are founders of The Rich Dealers Institute and the authors of Gravitational Marketing: The Science of Attracting Customers and Invasion of the Profit Snatchers. They can be contacted at 866.867.9618, or by e-mail at jt@autosuccessonline.com.

podcast interviewee

Are you a creative person? We assume your answer is “No.” The majority of the adult population believes they are not creative, although creativity is something everyone is born with. NASA tested groups of children for creativity and 95 percent of five year-olds tested as highly creative. Then, years later as adults, only two percent of these same people tested as highly creative. The majority of people lose their creativity as they grow older, getting off track along the way.

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SeanV.Bradley

leadership solution

beware of your internet or business development department infrastructure

Dealerships are not staffing their Internet or business development department the right way. I see the same thing over and over at dealership after dealership. For example, dealers will have 500 leads in their CRM and have one or two appointment setters working those leads — or worse, they have no appointment setters. They just rely on showroom consultants to handle all of those leads. Let me just dive into my concerns in this scenario, beginning with having too few appointment setters. This doesn’t work because there are far too many leads to be handled for only one to two appointment setters. Understand that you only have an 11 to 14 percent connection ratio from phone call attempts. I train clients to make 120 calls per day, no exceptions. However, we find that the average dealership’s appointment setters are making only 50 to 75 calls per day. Let me break this data down for you: On average, 50 call attempts will only convert to five to seven conversations. Does that sound productive for an eight-hour day? Of course not. With two appointment setters each making 50 calls, they will have 10 to 14 conversations for the entire day. Remember that is only 10 to 14 conversations out of 500 leads. Leads mean opportunities to do business. These prospects are in the market but we do not engage them? Even if your people were making 75 calls each, one rep’s connections would be seven to 10 conversations and two rep’s connections would be 14 to 20 connections. That’s still inadequate compared to the lead volume. Now, let’s discuss the scenario of having no appointment setters and just utilizing your showroom sales consultants. The average dealership has approximately 10 sales consultants, and they have lots of responsibilities and lots of ways for them to sell an automobile. Let’s look at the eight different ways a showroom sales consultant can sell an automobile: • Walk-Ins • Be-Backs • Internet • Phone-Ups • Prior Customers • Referrals • Prospecting • Service

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Let’s be honest: I believe the vast majority of automotive sales consultants do not engage the full eight ways to sell an automobile and, even if they do, the majority do not do it consistently. But, let’s pretend for a second that they do. How can the average sales consultant handle their full sales responsibilities plus handle the 50, 75 or 100 fresh Internet leads they receive per month? If an appointment setter — who does not have to do a product presentation, demo drive or a delivery — only makes 50 to 75 calls per day and converts only five to seven conversations per day, how many phone call attempts do you really think your salespeople are making? Exactly. Let’s add another crazy, but important, variable called the residual flow factor. That means the “carry-over leads.” Remember that the average Internet prospect is approximately 45 to 90 days. So, if you receive 400 leads in the month of June and you sell 40 units, it doesn’t end there. Just because you close your month doesn’t mean that all of those 370 other leads that didn’t buy are garbage. On the contrary, those are actual working (“cooking”) opportunities. So, let’s say that out of the 370 remaining leads, 200 are still active and viable opportunities. You will start July 1 with 200 “carry over” leads, plus you will receive an additional 400 “fresh” leads for a total working lead opportunity of 600 leads. This is known as your residual flow factor. Now, let me give you the “secret formula” to success. I have numerous nationally recognized client success stories. Clients using this formula have graced the cover of every major automotive magazine, including AutoSuccess (The most recent would be Alan Vines Automotive, in the September 2012 issue). Alan Vines Automotive has five appointment setters: • Five coordinators X 120 calls per day = 600 calls per day • 600 calls per day X five working days = 3,000 calls per week • 3,000 calls per week X 4.3 weeks in a month = 12,900 calls per month • 12,900 calls X 12 percent connection ratio = 1,548 connections with prospects • 1,548 connections X 25 percent appointment made ratio = 387 appointments • 387 appointments X 60 percent appointment show ratio = 232 appointment shows • 232 appointment shows X 42 percent sold ratio = 97 units delivered. • 97 units delivered (as documented in the cover story) Alan Vines Automotive receives 600 to 700 fresh leads per month and has a residual flow factor of 800 to 900 working leads. My final point is that your Internet sales appointment setters should not be doing anything other than dealing with fresh and carry-over Internet sales leads. The only exception is if you have them take incoming phone-ups. That is perfectly in alignment with the system. Do not, however, have them working on: • Service • Unsold showroom traffic • CSI • Data Mining • Credit • Greeting • Getting lunch, coffee, etc. • Taking pictures If you think your one or two appointment setters (if you even have them) can work 300 to 500 fresh Internet leads plus do any or all of these things, you are wrong. If your dealership has these efforts tasked to the Internet appointment setter, I suggest that you delegate to someone else, hire BDC appointment setters or accept mediocrity. If you have any questions or comment about this article, or if you would like me to personally review your Internet or BDC infrastructure with you, please feel free to e-mail or call me.

Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry. He can be contacted at 866.648.7400, or by e-mail at sbradley@autosuccessonline.com.

podcast interviewee

For more than nine years, I have traveled the country conducting consulting and training for approximately 500 dealerships, and before that I worked on the front lines for five and a half years. I have tracked trends, patterns and common situations that effect dealerships’ success, and what is clear is that region, franchise or demographics don’t matter. I want to share some revelations I have identified that will help you sell more cars, more often and more profitably.

JohnTraver

leadership solution

increase showroom traffic through lead conversion

This dealer is on top of his business. He has avoided the pitfall of getting stuck in his business. The difference between being “on” versus “in” your business is that you can see what’s happening amidst the day-to-day activity. You are able to make decisions that affect the long-term profitability of your dealership. This dealer quickly noted that he wanted to improve the conversion rate of the leads he was getting before investing in more leads. We talked about how his leads were being handled and what processes needed the most help. He was quick with that answer, as well. He knew exactly where the losses were occurring — his inconsistent sales call processes and the lack of consistent results around Web leads. Your dealership may have it all sewn up in a neat bow. Maybe there aren’t leaks in your ship. That is a good place to be. But, just in case there is one dealership who reads this article and has a “small leak,” or maybe one who just is constantly in search of ways to get even one percent better, I would like to examine some important check points this month. Lead Response

Obviously, the first place we must start is the response time and approach to the inquiries you are receiving. Chat is hot right now. It’s an “arms-length” tool prospects and sales personnel are using. Keep in mind that it’s a magnet used to initiate dialogue with a Web visitor. There are steps beyond chat that are necessary. Ultimately, there should be a phone call in the process that creates an appointment and a showroom visit. That’s the process your lead response should track. The closer you are to measuring this, the quicker your conversions will grow. Because focus is being spent on auxiliary areas, we can get lost in the process.

The dealer I mentioned earlier said they used chat sessions to engage Web visits, but he wasn’t sure how many of those prospects were being converted into test drives. Keep this process simple by remembering what we have already learned: Test drives produce write-ups, and write-ups produce deliveries. The closer you stay to the sun, the warmer you get. Too many dealerships have drifted away from the fundamentals. Does that mean we should avoid the tools that allow us to engage our prospects? Of course not. Nearly 90 percent of all buyers use the Web first to gather information on their vehicle shopping process. Consequently, Internet leads trump walk-ins three to one. Meanwhile, our sales staff is waiting on traffic that seems to have a new path to the dealership. One of the reasons “chat” is working is because it embraces the concept of time. It’s quick, and that’s what the “surfer” will respond to. Timing is still critical in the conversion game. The OEMs have pushed this message, and most Internet departments seem to get and embrace this concept. Just be sure it is being executed. You may need to add heads to that department or outsource some of the work — or even roll in a backstop service to be sure you have this leg covered. The abundance of Web tools makes this an easy process to implement. And be sure you “keep it real,” as in honestly appraise what is happening now. A recent study by InsideSales.com reminds us of the “perception” versus the reality of our ability to win conversions outside of those early moments we receive an inquiry. The Phones

It’s critical to make sure your phones are being answered as quickly as your Web leads. The phone is the one medium of leads that seems to be overlooked. While tools like auto responders, chat and e-mail templates are getting the focus, who is answering the phone? Keep in mind that those three Web tools typically are a means to an end — the sales call. Are your phones being answered? If so, how well is that tracked? By day and time? By agent? By volume? By source? When those questions are being answered properly, your sales will grow because your conversion rate is in check. Managing your phones will ensure your dealership will be getting at least its share of the market. Did you know what consumers say is their No. 1 resource used when buying a new vehicle? That’s right, a test drive. At your dealership. So how does your sales call drive the process? It should be driving conversions of calls to test drives. So, that’s where we start if we are serious about increasing conversions of the leads we are getting. We must track. We must align. And we must measure. My last dealer, Russ Darrow said it best: “Measure everything you do. That’s where you will find your best answers.” Here’s to driving more showroom traffic.

Success-Driven Solutions; No Matter the Medium. 40

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John Traver is the CEO of Traver Connect. He can be contacted at 866.685.5725, or by e-mail at jtraver@autosuccessonline.com.

podcast interviewee

I spoke to a dealer in a rural area recently and he said he was profitable — very profitable. He said, “I can buy more leads. There are plenty of leads available in my market. In fact, I am one of the most profitable dealerships for my brand in the entire zone. But I have a problem — we are not converting what we already are getting.”

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AlanBird

sales & training solution

the abcs of the online shopper: a whole different plate of spaghetti On one hand, everything has changed. The entire car-shopping path to purchase has been redefined by Internet technology. On the other hand, nothing has changed. It still ultimately comes down to the sales rep and the customer — and how effectively that rep is able to read, define and react to the customer’s wants and needs. In other words, it’s still all about getting inside the head of the car shopper, and leveraging whatever makes him tick into what makes him buy. Go back just a few short years, and buying a car was pretty much a straight-line process — a relatively short and predictable series of steps. There was a paper trail (literally) consisting of a few researched articles and consumer reports. From there, a test drive or two (all local), and maybe a phone call to a favorite “car-guy” buddy. And then, well, the shopper pretty much ran out of things to do. So, he made his choice. The Internet has changed all that. That straight-line shopping process has given way to something that looks more like spaghetti — a free-form surf-fest of jumps from one Website to the next, with no pre-established pattern. A shopper can get lost for days in content, consumer info, blogs, videos, inventory listings, etc. There’s always one more place to go. Then another. And another. Meanwhile, the overwhelmed shopper often isn’t sure where and when he’s supposed to stop the momentum and actually commit to buying his new car. He’s lost in the spaghetti. But, if I may throw in one more food metaphor, the glass this creates

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can be seen as very much half-full. If we take a few moments to sort it out, we start to see opportunities for creating leads and sales that weren’t available to you in the old straight-line days. Geography, for instance, becomes less and less relevant with Internet shopping. People are more willing to go farther for the car (and the deal) they want, and dealers, of course, are happy to go the extra mile(s) on their end. The Internet also allows for shopping after hours and on holidays and weekends. Plus, the average car shopper is hitting 18 sites before he buys, which means he’s staying in shopping mode longer. So the question is, what can you do to get the online shopper’s attention when he’s in this mode? How can you snatch him out of the spaghetti and turn him into a legitimate qualified lead for your dealership? Well, that can’t be answered in a few short paragraphs. In fact, even in some of our multi-day seminars on this very subject, we make it clear that there is no “magic bullet” solution. Every dealership needs to develop a lead strategy based upon its own DNA. However, we can say with absolute certainty where you need to start: inside the head of the online consumer. A fundamental understanding of what motivates the online shopper will exponentially tighten your focus on everything else in your program, including your CRM, marketing, lead management process and who does what on your staff. Yes, it’s that important. Inside the Internet shopper’s head, there are three factors that make the process so appealing. It’s what we call the ABCs of the Internet shopper: avoidance, best price and convenience. Let’s start with avoidance. The typical shopper doesn’t look forward to the pressure that often accompanies real-people interaction in a car sales scenario. Shopping online allows him to avoid, or at least postpone, that element of the shopping process. He doesn’t even have to give his name. Plus, he can “walk away” at any time with the click of a button. Now, best price. If it weren’t for the fact that it starts with the letter “B,” it might have been better to save this one for third. That’s because the bestprice premise is based on a misconception that the expanded competition created by online marketing forces the prices lower. In reality, it’s generally comparable to traditional phone and showroom prices. That said, attempting to undo this misconception in the shopper’s mind is an uphill battle. Rolling with it is a much smarter way to go. And lastly, convenience. Online shopping eliminates travel time to the dealership. No appointments for the shopper to keep. No salesperson to talk to. Heck, he can do the whole thing from his living room couch if he wants to. Sure, it seems pretty basic once we put it out there, but it’s those basics that set the tone for how to unravel the not-so-basics: the spaghetti. You now have a basis for deciding what needs to be tempered, ramped up or completely changed based on your experience and your dealership’s unique character. In the final analysis, it’s a win-win for you. After all, what hasn’t changed inside the head of today’s car shopper still far outweighs what has. He still needs a car, and he needs a brick-and-mortar outlet to provide it. And once you get inside the spaghetti and sort it out, you’re in a better position than ever to do what you do best: Sell. Bon appétit.

Alan Bird is president and CEO of SCI MarketView. He can be contacted at 866.869.0094, or by e-mail at abird@autosuccessonline.com.

You Are GUARANTEED to Increase Your Bottom Line in 1 Year by $250,000 or More...

or I’ll Pay You $10,000! Hi, my name is Mark Tewart. I may have had the honor of coming into contact with you through my seminars, association meetings, NADA or NIADA conventions, articles in AutoSuccess or other magazines, my old Automotive Satellite Training Network shows or you may have read my best-selling book How To Be A Sales Superstar. Whether you know me or not, you may be wondering what allows me to be able to make such an outrageous claim. The answer is simple: If a client follows my no gimmick, no BS, full-proof and proven methods, the results are as predictable as the sun coming up every day. That may sound arrogant to some of you, but to me and my select clients it’s just reality. Every year I have many dealers who ask me to work with them to help improve their sales and profits. I reject most of them. I only choose a few each year to work with on such a large scale. There are a few reasons why I carefully hand pick who to work with. The first reason is that it’s easy for you to say you want to improve but most people don’t want to do the things necessary to make it happen. This isn’t some magic-button, pie-in-sky fad. These are real-world and proven methods for massive profit improvements. It takes hard work and lots of commitment.

Mark Tewart, President of Tewart Enterprises, Inc. Author of the Best-Seller ‘How to be a Sales Superstar’

The second reason for me being picky about who I work with on these projects is that frankly I don’t have the time. To create the massive results that you and I are looking for requires a great deal of my time and effort. Because of my time restraints, I refuse to spend time and effort with uncommitted dealers. I only align myself with passionate people committed to winning. The third and final reason for me being selective is my reputation. I can’t write ads like this and make such incredible guarantees unless I can bring the results. My reputation is beyond solid. By the way, the $250,000 bottom line improvement is just an example. I have had some dealers increase their bottom lines by more than $1,000,000. Look at it this way; I don’t take $10,000 guarantees lightly. I put my money where my mouth is.

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P.S. There is one very simple thing most dealers aren’t doing that you can do to unlock an additional 7 figures worth of profit with no extra risk in the next 5 years. I know it sounds too good to be true, but you can see for yourself.

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Partners in Personnel Since 1989 Are you one warrior short of winning the battle? – There is NO COST for our efforts on your behalf unless you hire one of our candidates. What do you have to lose except the opportunity to hire your next Leader! Talented People = Dealership Success In today’s extremely competitive retail automotive market, what is the most critical factor in determining your level of success? The obvious answer is, “Your People!” But with all the competition for the limited number of truly talented automotive professionals, how do you effectively build the right team? Recruiting Options Newspaper and internet advertising and the “who do we know” process have been the usual methods. All of these can identify candidates, but they are time consuming and are not likely to reach the most desired professionals. Why base your success solely on these “hit or miss methods? Fortunately, there is a more targeted option. Auto Dealer Talent specializes in identifying and recruiting the most talented automotive pros in the industry. We have been assisting dealers hire and retain the best available candidates to maximize their results and fit their organizations’ cultures since 1989. I live over a thousand miles from Dan, yet he always delivers quality candidates from my market, as well as, other markets. Distance is not a factor. Dan’s performance and character are the reasons I do business with him. I would recommend him to my closest friends (just not my closest competitors). Scott Roberts, Roberts Auto Group - Tulsa, OK

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1. Standardize Your Leads. 2. Make Them Stronger. 3.Turn Them Into Customers. (Pick Any Three)

More than 2000 dealers trust SCI to help turn their leads into their customers. Visit our site for the full story.

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Success Story

DePaula Chevrolet Up 34% in Sales YTD, DePaula Chevrolet May Be Well on Their Way to Securing Their 4th Consecutive Year as a Chevrolet Dealer of the Year

With thousands of dealers vying for the attention of ready in-market buyers, many dealers face similar challenges of how to effectively reach the right customers with the right message, bring those customers into their showrooms and service bays, and keep them coming back again and again.

As consumer shopping behavior continues to change, so too, dealers must change in order to reach the right audience. Gone are the days of using only traditional mass media platforms like TV, print and radio, to deliver your message to the masses. Dealers must now incorporate more targeted and digital mediums, like targeted direct email and mail, internet, mobile and social, which are more personalized and accessible to ready-buyers. Dealerships that do not understand targeted and digital marketing continue to see diminishing returns with traditional mass marketing that remains costly, not to mention extremely difficult to measure.

Ă&#x2026; CONTINUED INSIDE

Success Story Ä CONTINUED FROM THE COVER

Today, the most successful dealers are using targeted and digital mediums that are less expensive, more measurable and give a better return on investment than traditional mass marketing. Although, combining multiple ad mediums can present its own challenge; as the average dealer works with multiple vendors to execute their marketing strategy often resulting in different messages and designs that too often are not integrated with one another. The key is to integrate all targeted and digital advertising into one cohesive campaign to maximize results. DePaula Chevrolet, serving the greater Albany area, recently implemented an integrated targeted and digital marketing strategy across multiple mediums to help them attract, sell, service and retain more customers for less cost than traditional mass marketing with noticeable results – up 20 percent in sales for the first four months of the year, and 40 percent in sales inside their primary marketing area. “Our sales are up 34 percent YTD, but we’re actually up 40 percent in our backyard,” said Thomas Restino, VP of Operations at DePaula Chevrolet. “And our service is up 11 percent since we switched gears with our marketing efforts.”

and industry data to establish consumer patterns within the local market. The results enabled DePaula Chevrolet to identify vehicle owners with the greatest probability of buying or servicing with their dealership, as well as identify same-brand owners who had never visited DePaula Chevrolet, and off-brand owners with a historical pattern of crossing over to Chevrolet. Once DePaula Chevrolet had more clearly defined their market, they implemented a comprehensive targeted and digital marketing strategy using variable direct email and mail campaigns that consistently speak to customers throughout the 60-month life cycle of their vehicle with custom messaging that includes: a thank you and welcome message for recent purchasers, maintenance reminders for newer vehicles not yet in-equity but that may be due for recommended maintenance, and ongoing targeted email and mail sales communications to customers in an equity position. Using high-end creative campaigns, DePaula Chevrolet promotes its best

Paul Lynch, General Sales Manager at Depaula, reinforces this excitement stating, “Our goal is to absolutely dominate the Chevrolet market locally, not only in sales but also service, parts and body shop. We think we have found a great strategy to help us carry out our plan.” DePaula Chevrolet began with a comprehensive five-year historical analysis of their sales and service transactions to determine customer trends. Those findings were then compared to leading third-party

Thomas Restino, VP of Operations, and Paul Lynch, General Sales Manager, at DePaula Chevrolet

sales offers with custom service offers that reflect the service status of the customer’s vehicle. For example, active service customers who routinely come in for service receive a $21.95 “Full Service Lube, Oil & Filter Change” coupon, but customers who are categorized as lost, or who do not regularly service with DePaula Chevrolet, receive the same offer but for $15.95 to encourage them to come back. DePaula Chevrolet also aggressively targets conquest service customers within their primary marketing area who own Chevrolets but did not buy from them. This is unique because most dealers use the manufacturer’s service marketing program which often limits a dealer to only communicate with customers that have purchased directly from their store, but also limits the dealer from contacting numerous conquest opportunities within their market. If a dealer only has 30 percent market share, they are essentially missing out on an additional 70 percent of the area’s service market. DePaula Chevrolet recognized the opportunity to broaden its service marketing program with conquest and has greatly expanded their reach of potential service customers. Another component to DePaula Chevrolet’s strategy is that every outbound targeted email and mail campaign directs customers to an online Campaign Conversion Site that not only displays the featured promotions of the email or mail campaign they have just received, but also shows them every sales and service offer that DePaula Chevrolet is currently running. If a customer is not in the market for the specific offers they just received they can simply go to DePaula Chevrolet’s campaign conversion site, www.DePaulaOffers.com to find what they’re looking for in just a couple clicks.

DePaula Chevrolet

When customers visit the dealership they see POS merchandising throughout the store that validates the advertising message they recently saw online or received in the mail, further building credibility and helping increase the closing ratio.

As part of their overall strategy, DePaula Chevrolet also recently implemented a unique strategy that specifically targets vehicle sales within their service lanes. This Vehicle Exchange Program (VEP) focuses on proactively selling to service customers who are in an equity position. When customers bring their vehicles in for service, a VEP Specialist greets the customer

and explains that the customer is eligible to upgrade to a new vehicle for the same or lower monthly payment. Rather than wait and hope that customers will buy from them when they’re ready, DePaula Chevrolet is taking the initiative to sell customers in the service bay before they enter the market and shop the competition.

“The best customer that any dealer can find is one they already have because customers who have an active service relationship with a dealership are seven times more likely to purchase with that dealership,” says Budd Blackburn, owner of Team Velocity Marketing, the company that DePaula Chevrolet uses for their sales and service marketing.

“In our first month with VEP we’ve sold 42 cars, and the month isn’t over yet. I expect we’ll hit 50 units before the end of the month,” said Restino. “We average 1,300 ROs a month, so we’re looking at close to 4 percent closing rate out of the service lane – that’s pretty darn good.”

DePaula Chevrolet certainly appears to have the advantage in their marketplace. They are a 3-time recipient of the prestigious title Chevrolet Dealer of the Year, an award given to the top 1% of Chevrolet dealers nationally, and are looking forward to closing out 2013 stronger than they started.

Success Story

DePaula Chevrolet

“Our sales are up 34 percent YTD, but we’re actually up 40 percent in our backyard. And our service is up 11 percent since we switched gears with our marketing efforts.” THOMAS RESTINO VP OF OPERATIONS DEPAULA CHEVROLET

IN A NUTSHELL Up 34% in Sales YTD, DePaula Chevrolet May Be Well on Their Way to Securing Their 4th Consecutive Year as a Chevrolet Dealer of the Year • Define their ideal local market by finding the perfect customers and prospects with the highest statistical probability of buying and/or servicing with their dealership now and in the future. •

Create dynamic, cohesive campaigns that consistently speak to their customers throughout the 60-month lifecycle of their vehicle.

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Consistently target in-market same-brand prospects, and consumers who drive off-brands with a historical trend of crossing over to the brands they sell.

• Drive consumer traffic to a custom campaign conversion site that promotes all their sales and service offers to help increase their internet sales and service leads. •

Establish a sales-in-service program to sell vehicles from their own service bays for in-equity customers before they shop the competition.

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Work with a marketing partner like Team Velocity Marketing to implement an integrated targeted and digital marketing strategy across multiple mediums that promote all their profit centers, new, used, finance, service and parts.

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