AutoSuccess addresses the specific, researched needs of new car and light truck dealerships by providing entrepreneurial, cutting-edge, solution-based editorials to increase dealership profits and reduce expenses
AutoSuccess, magazine, sales, new, used, selling, salespeople, vehicle, dealer, dealership, leadership, marketing
For similar content visit http://www.autosuccesssocial.com/
5. marketingsolution TimJames GrantCardone
sales&trainingsolution
SIMPLE STEPS TO LOWER VOLUME + LOWER
ENSURE VIDEO SUCCESS PROFITS = DISASTER
Unique inventory Video Strategies from a dealer, maximizing the use of their Price is always a 50 percent, you would have to sell twice as If you don’t know that the lower price/lower
videos can increase • Actual Video —Taking an “actual video” existing content and time with same day very sensitive issue, much product to be even, which during a volume formula is a recipe for disaster, you
conversion rates dramatically if used correctly. of a vehicle and providing consumers generation and distribution. especially during times of contraction when period of economic contraction replacing and your people will believe it (incorrectly)
How many additional conversions can be with a high-quality walk around of a car money is tight; consumers are scared and loss volume would be more difficult than to be an option. Also, during periods of
expected greatly depends on how many can provide some of the best emotional • Professional Voice Over — This option more selective with their money. The first just learning the skill of holding price. contraction, experience is worthless and
consumers could potentially view a video “content,” but can take a large investment also allows a dealer to record a unique response (incorrectly) is to reduce price skills are everything. The ability to sell
(reach), how often a video is available to be of “time.” You may want to use a stitched human voice layer for each unique video. in order to make up for less volume. It is A lower price will not solve your problems your product and justify the price by
viewed by a consumer (frequency), and how photos option for your main videos and This option can produce a professional- a myth that a lower price will sell your and could actually reduce the perceived really building value, selling yourself,
much “additional emotion” a video adds to reserve the actual video option for select sounding voice over and generate one of product and, in fact, a formula for disaster value in your product. Know that the public your company and creating a true value
the vehicle display page. Many dealers have inventory pieces and inventory specials the highest levels of emotional response and guarantee of failure for most. is being conditioned to believe that things proposition is more valuable than experience.
tried adding video with little or no additional for your Web site. If using actual video, with high-quality content. However, are tight and they will be more selective with
conversions, while others have experienced control your environment to get the because the voice layer is generally Unless you are Wal-Mart or the Dollar their purchases. That means they will not just Get yourself and your staff thoroughly
amazing results. What was the difference? best video quality. If you do not have a outsourced, this option can be quite Store, who have their entire business models be shopping you against similar products, handled on the fact that lower price and
separate “video staging area,” then the expensive and can require an additional built around very small margins and high but also unlike products. “Do we buy a car lower volumes are a formula for disaster.
The first rule of video is exceed staging area used to shoot your vehicle three to four days (at a minimum) for the volumes, the lowest-price model will fail or redo the kitchen?” In this case, lowering It costs less money to train people than it
expectations. To exceed expectations, you photos may work. Be certain to zoom video to be generated and distributed. the individual and the company. Selling by your price will have nothing to do with their costs to give your product away, especially
must focus on two basic fundamentals: in on each special and unique feature as price is an indication of a weak-minded and decision — only building value will. since lowering price doesn’t guarantee a
• Data Driven Human Voice — This poorly trained individual or organization
content and time. Many of the dealers who you talk about it. Most importantly, get sale and won’t make up for the reduction in
option utilizes vehicle data to trigger that looks for squirrel-like solutions to their Rule: Money moves to value, never to the
tried video with little or no success put emotional and sell the car. volume. So do the math, and avoid disaster
a pre-recorded “human voice” script challenges. I can show you an almost endless lowest price.
little or no effort into the “content” of their in your business.
segment based off of select vehicle data. list of companies that have used the lowest
videos; thus, their videos did not generate • Stitched Photos — Using “stitched The script segments are then stitched If not completely sold on the value
much (if any) additional emotion, and/ photos” to generate a video file is one price model that have filed for bankruptcy or
together to produce the audio segment proposition of your product or service, the
or they did not maximize the reach and of the most popular video choices, closed their doors this year alone. Grant Cardone is an author and the
of the video. The human voice option prospect will elect to do something else with CEO of The Cardone Group. He can be
frequency of their videos. because you can utilize photos that have can produce a variety of scripts that can Do the math: Lower Volumes + Lower his/her money. Doing nothing, by the way, contacted at 866.865.3175, or by e-mail at
already been generated for your vehicle sound similar to a custom voice over; Profits = DISASTER. If you reduce price is doing something else. gcardone@autosuccessonline.com.
Content display pages to create your videos. The
The power of visual marketing (video) is however, the content of the video can be
stitched photo option comes with several limited as they do not offer the dealer the
that it can turn a static, sight-based ad into a “audio” options that should be considered
dynamic, visual ad, dramatically increasing ability to customize their message for a
carefully, as the audio option can affect specific vehicle or to a specific customer.
the emotional response of the ad and making both the content and time factors.
it easier to build trust, value, reliability and This option can maximize time with same
urgency, and inspire mental ownership. Audio Strategies for Videos day generation and distribution.
Successful dealers work hard to create • Custom Voice Over — This popular • Data Driven Text to Speech — This
emotional ads for their online media with option allows a dealer to record a unique option utilizes vehicle data to create
“unique” photos and a “unique” emotional human voice layer for each unique pre-defined scripts based off of select
vehicle descriptions that truly “sell” the car. vehicle video. This option can produce vehicle data. The scripts are then stitched
a very professional-sounding voice together and processed through a TTS
Time over and generate one of the highest editor to create the audio segment of the
Dealers pay thousands upon thousands levels of emotional response with same video. The content of the video can be
of dollars each month to market vehicles day generation and distribution, thus limited as they do not offer the dealer the
online. Thousands upon thousands of maximizing both content and time. ability to customize their message for a
consumers view their online ads each and specific vehicle or to a specific customer.
every day. Successful dealers understand • Text to Speech — This option is popular This option can maximize time with same
the importance of getting their ads in front because it utilizes the same customized day generation and distribution.
of as many potential consumers as possible emotional vehicle descriptions used
and work hard to get their ads created and to highlight the “unique” features that
distributed to their online media the day a “sell” a car in a dealer’s online ads to Tim James is the director of sales with
car is available to sell. To maximize reach automatically generate a TTS audio layer HomeNet, Inc. He can be contacted at
866.924.6573, or by e-mail at
and frequency, many dealers even create and for their videos. TTS videos can generate tjames@autosuccessonline.com.
distribute their ads to their online media three extremely high levels of emotional
or four times per day when possible. response with zero additional involvement
0 0
8 9
www.autosuccessonline.com the #1 sales-improvement magazine for the automotive professional
6. marketingsolution DalePollak
HOW TO SOURCE USED
VEHICLES FOR
REASONABLE PRICES
I recently had them as well. The same can be said for many showed the dealer that there were currently
two lengthy domestic models. six available for sale in a 150-mile radius of
teleconferences, one with a dealer located his dealership with an average retail price
in Pennsylvania; the other with a dealer Again, I believe the key to success is to be of $16,278. I further showed the dealer that
in Rhode Island. On each call the dealer able to identify and source those cars that after an anticipated $500 reconditioning and
expressed concern and anxiety over their are “hot” in your market and yet not known a $2,500 profit, he could purchase the vehicle
inability to source vehicles for prices that by every other used car manager in town. for as much as $14,083 and have the third
would allow for a reasonable profit. The pain For example, I demonstrated to the dealer best value out of six in the market at a retail
of these dealers is without a doubt being in Pennsylvania that in the last 45 days, 17 asking price of $17,083. With an average
shared by all. The solution, however, is percent of the vehicles being sold in his Black Book of $13,675, and an average
understood by few. market were compact SUVs in the $15-$20k auction price of $13,362, the dealer agreed
price range. Yet, compact SUVs only made that the vehicle could be easily purchased.
I explained that the answer to their stocking up one percent of his inventory. And, when
problem lies in what I call “inventory we drilled down to identify the hottest of Interestingly, when I had a similar discussion
engineering.” What I mean is that you have these $15-$20k compact SUVs, you never with the dealer in Rhode Island, one of the
to be able to find the hottest vehicles in the would have guessed what came up No. 1 on hottest vehicles in his market was an ‘08
market that are not understood by every other the list; how about a 2008 Suzuki XL-7? I Kia Sorento. Again, the dealer couldn’t
used car manager in town. In the case of one showed the dealer that there are presently remember stocking one and would have
of the dealers, 97 percent of their current 62 available in his market and in the last 45 never thought of doing so. The appraisal
used car inventory was Toyota, Honda or days, 165 have sold. Wow! Triple wow! The exercise demonstrated a similar result in that
Nissan. I asked, “How in the world would market days supply of this vehicle was an the Sorento could likely be easily purchased
you expect to acquire vehicles of these astounding 17 days. because its supply and demand was not well
makes for reasonable prices?” Every used understood by every used car manager in
car manager in town thinks that these are Knowing things about your marketplace that town. By the way, the ‘08 Suzuki XL-7 was
the right vehicles, and they are out chasing are not generally understood by everyone the seventh-hottest vehicle on the Rhode
else is the key to Island dealers’ list.
making money.
When I asked the This thoughtful approach towards stocking
dealer if he thought used vehicles stands in stark contrast to the
this red-hot vehicle common practice of “happenstance” which
was obvious to is employed by most used car operations
every used car today. “Happenstance” stocking is when used
manager in town, vehicle inventory is stocked with vehicles
YOU HAVE CUSTOMERS he had to admit, that “happen” to be traded in or “happen”
most likely not. I to be available at this week’s local auction.
“Happenstance” stocking is a poor way of
AND PROSPECTS. further asked him
if he ever would creating conditions for success. Both dealers
have thought completely agreed with the merits of a
about stocking this different approach.
vehicle, and he The inventory engineering approach to
WE HELP YOU GET responded that he
wasn’t even sure if
stocking takes time and effort and requires
doing and thinking in a way that is unfamiliar
A LOT MORE MILEAGE he knew what the
vehicle looked like.
and unwelcome by most used car managers.
However, the time required to identify these
OUT OF THEM. The market’s
vehicles is not time spent, but rather time
invested. This is because the time invested in
ignorance about inventory engineering is, in fact, engineering
this vehicle makes
Let’s roll. it an especially
future success. The best and most successful
used car operations today are embracing the
easy vehicle to inventory engineering approach to stocking
purchase. I took by providing their used car managers, and
the dealer to his in some cases, stocking assistants, with new
appraisal tool tools and training to do so effectively and
where we booked efficiently.
the Suzuki out in
866-964-6397 imnLoyaltyDriver.com Black Book for an Dale Pollak is an author and the founder
average wholesale of vAuto. He can be contacted at
value of $13,675, 866.867.9620, or by e-mail at
and a national auction dpollak@autosuccessonline.com.
value of $13,362. I then
1
0
www.autosuccessonline.com
7. Expansion from simply ignoring direct mail Mobile Marketing want to speak with a sales person on the phone and want simple answers without a sales pitch.
pieces to actively boycotting businesses Mobile subscriptions reached 3.3 billion Use live chat to engage them and build a relationship without being overly intrusive. This
that are still employing it is almost certain. in 2008 — more than half the global media will provide you with an opportunity to build value in your vehicle and your dealership
Business must embrace digital and other population. Leveraging this channel can and that will make the prospect far more likely to visit your dealership’s showroom.
paperless new media channels for interactions significantly extend your reach and make
that are already widely accepted and relied on it easier than ever for customers to access
by consumers. In the post-recession economy, inventory details, service coupons or your In our post-recession economy, the rules of engagement have changed. Customers demand
respecting the environment will equate to online service scheduler. Mobile marketing is new ways of communicating. No longer will a showroom and a toll-free number suffice. Your
respecting consumer preference. always present and offers instant gratification customers are communicating in these new ways. If they are not communicating with you, you
to your customers. With mobile marketing, can assume that your competition has already started the conversation. The consumer is in the
“My Way” you can deliver an immediate call to action, driver’s seat, they will determine their level of loyalty. Dealerships can influence these levels
Consumers will expect, and demand, that the instant alerts, coupons, sale information and get on board with the post-recession consumer by embracing these changes and leveraging
companies they reward with their business and specials, as well as increased customer the technologies available to them. Identify ways that your dealership can simplify, “go green”
know them personally, or at least create that service frequency and the speed of their and acknowledge “their way,” and it you’ll be well on the way to earning loyalty from your
perception in their outreach. Knowing what new purchase sales cycle. Watch people in customers.
communications consumers want to receive public walking around with cell phones in
— and how they want to receive them — will hand. They are texting, chatting, Twittering, For a free post-recession readiness evaluation call or e-mail me with
be critical to earning loyalty. visiting social networking sites, reading the information below.
e-mails and more. The mobile channel is
How can dealers act on these quickly becoming the most popular and Al Babbington is the chief executive officer of OneCommand.
requirements to ensure loyal behavior? widespread communications channel in He can be contacted at 866.254.5043, or by e-mail at
Below are a few tools that can not only help history. Be sure that your dealership is ababbington@autosuccessonline.com.
you fulfill the three critical demands of the reaching out to your customers where they
post-recession consumer, but are proven to are communicating most often. A fringe
increase loyalty, profits and satisfaction. benefit of mobile marketing is that it’s much
By Al Babbington more economical — texting an offer to
Personal Web Pages customers costs almost nothing, especially
It is important to maintain the relationship compared to a mailer. It’s also “greener”;
you worked hard to establish at the time of no trees were cut down, and no carbon was
your customers’ purchase. Providing a central released to deliver your message.
In today’s automotive environment, customer loyalty may be rare, but it’s sought after location where your customers can indicate
more fervently than ever before. Industry experts have been preaching for decades the their communication preferences, track Emerging Technologies
importance of earning it; today, it is an absolutely critical element for success. vehicle maintenance, schedule service and Social networking is growing every day.
access special offers and coupons not only Facebook, Twitter, Plaxo, LinkedIn and
Dealers should be recognizing that more than price matters in today’s rebounding market. simplifies the ownership experience, but also many other social networking sites provide
Instead of fighting the price war, they should be seeking strategies and solutions that help keeps the owner connected to your dealership. the opportunity for your dealership to find
to increase owner loyalty, in both sales and service. Unfortunately for consumers and This empowers your customer, and will new customers and keep the ones you
retailers alike, this is actually a challenging adjustment to make, given that the recent increase both owner loyalty and service have. Your sales department will benefit
recession brought about a period where consumers didn’t care about service or loyalty frequency. Your customer will feel connected from prospecting on these sites and your
because they were being squeezed by the economy — they simply wanted the best price. to your dealership through their vehicle and dealership will also benefit by using them
However, post-recession consumerism is showing a significant trend toward reversing this their personal site. When it’s time for service for customer service-focused interactions —
approach completely. Consumers in the market today are looking for retailers who make it or time to trade, your customer will visit translating to increases in owner satisfaction
simple to do business and who respect their time. Retailers meeting these expressed needs this site for vehicle information. This will and loyalty. People are spending more and
will be the ones to gain customer and owner loyalty, something that will be increasingly ensure your dealership maintains top of mind more time every day visiting these sites.
important as vehicle demand returns. awareness. They post pictures, play games, connect
with old friends, make plans and more. Your
How can dealers assure they are positioned to meet the needs of the Preference Management / dealership can become a part of this positive
post-recession consumer? Permission Marketing experience. You can become “friends” with
We have isolated what we believe to be the three critical demands of the post-recession Empowering your customers to tell you how your customers. You can share information
consumer: simple, green and “my way.” Understanding these needs is the first step to they’d like to receive communications, and about events, fund-raisers, and even sales.
fulfilling them in the dealership. for what purposes, will be invaluable. Not The challenge will be staying engaged
only will it significantly increase response without overwhelming them; keep your
Simplify rates, but it will help your dealership save communications relevant and interesting. Use
The need for consumers to streamline will continue — not only in the form of fewer time and money by eliminating unnecessary these sites to share with your customer base
extravagant purchases, but also in the number of companies they trust and reward with channels and communications. The process all the positive things in the community your
business. Having multiple business relationships demands too many hours of the time- should be simple. Your customers should dealership is doing so that your dealership
constrained post-recession consumer. Fewer, more-trusted relationships will be a theme be able to configure their communication becomes a part of your customer’s social
in both their personal and professional life. The post-recession consumer will rely heavily preferences through a simple and secure network. This will be an increasingly
on recommendations made by a select few trusted sources and use their advice to make interface indicating how they would like to essential element of effective customer
choices on where to spend their money. Providing this advice simply — how and where be communicated with based on the type communication.
the consumer wants it — will be key. Businesses must be prepared to communicate of message being sent. Once you have this
through easily accessed channels, such as social networks. information, your dealership is ready to Interactive Media
begin communicating in a convenient and Your Web site offers customers a unique, no-
Embrace “Green” unobtrusive manner. Your customers will pay pressure shopping environment. Yet, often
As embracing green becomes more and more of an sociological as well as an economic more attention to your communications with because of this, communicating to your online
necessity, consumers will be even more vocal about not killing trees to send mail they’ll them because you will reaching out with the prospects can be a challenge. Make live-chat
1 never look at, when their mobile phone is their complete connection to the world. method they requested. an available option. Often customers don’t
2
8. marketingsolution KimOrr
BEYOND PPC AND SEO
To Dominate in Search, Dealerships Must Tackle
Online Customer Reviews
Dealers may think need to be devoting resources to online Undertake a Storewide Campaign To
that because they’re reputation management as a core part of Generate Positive Reviews:
spending on pay-per-click or SEO, they’ve their marketing — period. • Campaigns to generate positive reviews
got “search” covered. But while effective are a new mindset for dealerships. Go to
SEO is still an absolute must, it’s only one The facts speak for themselves: Roughly the top and get total management buy-in
bite of a much larger search apple. Just doing three out of four shoppers now read online to make it a formal, new priority.
PPC or SEO alone isn’t just incomplete — dealership reviews — and more than one in • Consider mandating that salespeople
frankly, it’s yesterday’s news. five change their dealership selection based generate reviews. Recognition is key to
on something negative they read. Online success: When a great review comes in,
This is because of profound, recent changes reviews now trump both dealer loyalty and send it to the entire store.
on the Internet. Two years ago, a great SEO location in the shopper’s decision. • Consider blocking review sites at your
campaign meant your dealership got far more dealership computers. If a bad review on
visibility and traffic than your competitors’ Sure, this new customer-centric world seems a competitor; a fake, positive review; or
campaigns. But that “early adoption” edge is scary, and managing it seems confusing. even real customer reviews come from
gone for two reasons: But dealers who’ve become aggressive with your internal IP address, you can suffer
1. Search vendors have really turned up the a proven “online reputation management” serious blacklisting consequences.
heat. The honeymoon is over, because process are generating hundreds of positive
your competitors are also focusing on reviews, dominating first-page results at Get Customers Writing:
SEO, creating even more competition for Google and other search engines, and getting • Every team member who has a happy
the first page of search results. a ton of incremental calls into their stores customer needs to tactfully ask them
2. The Internet landscape has radically every month. to share their experiences when they
evolved — consumers now search (and get home, explaining how much their
quickly find) new online outlets like How to Turn the “Bad and Ugly”
Around and Generate a High Volume opinion is valued. Don’t try to bribe a
consumer review and dealer rating sites customer - it never works.
and directories, from Yelp to CitySearch. of Positive Reviews:
Monitor/Get Organized: • When you receive a satisfied response to
Think about how search results overall • Consistently monitor the major review your “thank you for purchasing” e-mails,
have changed, with everyone getting more sites (CitySearch, Yahoo!, Yelp, respond, requesting an online review.
competitive, from your direct competitors Google Local, Edmunds, InsiderPages, • When you get a great manufacturer
to third-party lead providers. Plus, your DealerRater, etc.). survey, contact that customer, asking for
Web site and positive image are now also • Gather your reviews, and organize them an online review.
competing with an explosion of consumer into: “Good,” “Pretty Bad,” and “Ugly.” • Mandate that your service department
review sites that often show up on the first generate reviews and implements
page of Google. If you haven’t Googled your Address The Ugly: analogous processes.
dealership’s name, you should; it’s a sobering • If you have bad reviews, call the
eye-opener. Most likely, you’ll find the many customer and try to make it right. You Dealers who’ve unleashed this review
places your dealership’s been reviewed. And may not know them by their online name strategy are realizing this is one of the most
with 45 percent of all dealer-related searches “Mary123,” but often searching your powerful marketing opportunities ever. And
directly involving the dealership’s name, a CRM tool you’ll find an e-mail match. while generating a high volume of positive
big percentage of your customers are now The goal is to satisfy your customer, so reviews can change the whole “personality”
just one click away from reviews that could they will revise their review. of the store (salespeople become vastly more
cost you big business. • Respond online — Most sites allow motivated to provide great service, owners
businesses to respond to reviews directly, are proud, your CSI ratings go up, etc.), this
Because so many dealer-related searches and if not, simply post a response. It isn’t just a “feel good” campaign — it’s a
involve the dealership name (and with shows people you care about customer serious driver of new and long-term business.
those results increasingly dominated by service.
customer reviews), a total super-powerful • Educate your team on how respond.
search strategy today must combine great Even with the worst review, the tone Kim Orr is the vice president of
SEO with an aggressive customer review needs to be neutral, fair and transparent. eXtÈresAUTO. She can be contacted at
strategy. That’s today’s 1-2 search knockout Never amp it up with a reviewer, because 866.231.6135, or by e-mail at
punch. And GMs and dealer principals the customer is always right. korr@autosuccessonline.com.
1
4
www.autosuccessonline.com