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The 2009 Synergy Sessions - See Center Spread for Details
                                                            August 2009
feature solution




                                                                                                                                                                            3834 Taylorsville Rd. Building A, Ste. 1B Louisville Kentucky 40220 | 877.818.6620 / 502.588.3170 | AutoSuccessOnline.com / AutoSuccessPodcast.com | info@autosuccessonline.com
                                                                                                                              sgivens1@autosuccessonline.com
                                                                                                                              Susan Givens, Publisher
August 2009
                                  By AlBabbington

                                  EMERGING FROM A POST-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         A Little Mistake Cost These
                                  RECESSION ECONOMY
                                  PUTS COMSUMERS IN THE
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Dealers $250,000 A Year
                                  DRIVERS SEAT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Have you ever felt like you were making      dealers nd hidden pro ts and correct-

                                  - HOW CAN DEALERS GET                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               little mistakes that are costing you tons    ing little mistakes that were costing




                                                                                                                              design@autosuccessonline.com
                                                                                                                              Thomas Williams, VP & Creative Director
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      of money at your dealership? Do you          those dealers hundreds of thousands of
                                  ON BOARD?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           feel like there are hidden pro ts in your    dollars. These almost-magical solutions
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      dealership that are just waiting to be un-   turn little mistakes into instant cash
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      covered? If you are like most dealers, the   machines of bottom-line pro t.
                                                                   leadership solution




                                                                                                                                                                                                                                 Ken
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      honest answer is, YES, Absolutely!




                                                                                                                                                                                                                                                                                                                                                              877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220.
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                                                                                                                                                                                                                                                                                                                                                              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
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                                                     HOW LONG DID YOU THINK IT WOULD LAST?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Because I have not met you and do not
                             JohnBrentlinger
                                                18                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    It’s a shame for YOU not to make             know anything about your dealership, I
  steve brazill




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      more money, when these dealers do it         can’t say how much money is being left
                                                     GAME PLANS
                                 SteveBrazill
                                                33                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    so easily…                                   unrealized at your dealership. However,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   I can say FOR CERTAIN that the num-                  MARK TEWART
                                                     THINK WHAT YOU’RE THINKING ABOUT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 “Just one thing that Mark showed
                                TomHopkins
                                                34                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    us made us over $200,000 in profits
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   ber of dollars is substantial and would                  author of




                                                                                                                                ddavis@autosuccessonline.com
                                                                                                                                Dave Davis, Editor & Creative Strategist
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   shock you, if you knew.                          How To Be A Sales Superstar
  pg 3
  pg3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 in 90 days”
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   – Franklin Greene, GM           There are a few things that every dealer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               • Discover the one secret that will make
                                                     sales & training solution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Montgomery Ford LM             should be doing to make money, espe-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               your dealership an additional million
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   cially in this economy.
                                                     LOWER VOLUME + LOWER                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             “Our grosses went up 30% on the front                                                    dollars or more over the next ve years
                               GrantCardone
                                                09   PROFITS = DISASTER
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      end, and we added almost 50% in the                                                      — We have several clients who have al-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   The Great News is that I have identi ed
                                  MarcSmith
                                                17   TICKET TO RIDE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   back end. The best part of that is that                                                  ready experienced this and it will make
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   those little mistakes and have big solu-
  scott norman




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      our sales also increased over 25% and                                                    the hair stand up on your neck when
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   tions for them. NO BS, just real measur-
                                                     WHAT SHOULD MY CONTROLLER BE DOING?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       you hear this.
                                ScottNorman
                                                24                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    continue to increase.”                       able results that start happening immedi-
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      – Gary Minneman Jr, GM




                                                                                                                               super6@autosuccessonline.com
                                                                                                                               Brian Ankney, Sales-Improvement Strategist
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   ately and I guarantee those results.
                              SeanV.Bradley
                                                26   JIM ZIEGLER, AUTOMOTIVE SALES LEGEND
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Sunshine Toyota                                                  Call 888 2 Tewart (888 283-9278) or
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               e-mail info@tewart.com to schedule a
  pg 4
  pg2                             FranTaylor
                                                28   TRAINING YOUR WAY TO DEALERSHIP SUCCESS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          “Our sales have increased over 25%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      while our grosses went up over $800
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   • Sell more vehicles without spending $1
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   more on advertising                         private and con dential interview.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      per vehicle and we have experienced          • Increase your gross pro ts anywhere
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   from $300 to $800 a vehicle                 ***We will share candid and speci c
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      over $105,000 in additional service                                                      information that will prove to you without
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      profits from lost previous customers,         • Make an extra $100,000 or more in
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               a doubt what I am saying is true. You will
                                                                     marketing solution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               many of which had not been to our            your service pro ts in 90 days or less
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   • Double and even triple your sales and     see real dealer examples that support these
                                                     SIMPLE STEPS TO ENSURE VIDEO SUCCESS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             dealership in years.”
                                  TimJames
                                                08                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 – Wayne Gregory, Dealer         service customer retention                  results. Because of time constraints, there
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               will only be a limited amount of dealers
  kirk manzo




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         West Ashley Toyota        • Double your appointments and sales
                                                     HOW TO SOURCE USED VEHICLES FOR
                                  DalePollak
                                                10   REASONABLE PRICES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             conversion from Internet leads, Web         accepted into this program.
                                                                                                                              jwarner@autosuccessonline.com
                                                                                                                              John Warner, Sales-Improvement Strategist




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      My name is Mark Tewart and I am the          site leads and third party leads
                                      KimOrr
                                                14   BEYOND PPC AND SEO
                                                     To Dominate in Search, Dealerships Must Tackle Online Customer Reviews                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           President of Tewart Enterprises Inc. For     • Increase your F&I Product penetra-        P.S.: Please, only Dealers Or General
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      almost two decades I have been helping       tions by 25% immediately                    Managers may respond.
                                                     HELPING SMALL BUSINESS OWNERS SO YOU
  pg 6
  pg1
                                  KirkManzo
                                                16   CAN INCREASE SALES
   “In a market where
   opportunities for new
                                ChuckPatton
                                                22   KEEP YOUR EYE ON THE UIO
   sales are limited,
   finding creative ways
   to support local
   companies can be
                                  MattBaker
                                                30   BUSTING STAFF EVENT MYTHS, PART 1
   the key to unlocking
   additional unit sales.”
              - Kirk Manzo
                                MarkTewart
                                                32   BILLY MAYS VS. MICHAEL JACKSON
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




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                    www.autosuccessonline.com                                                                                                                                                                                                                    the #1 sales-improvement magazine for the automotive professional
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
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                    www.autosuccessonline.com
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
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
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AutoSuccess Aug09

  • 1. The 2009 Synergy Sessions - See Center Spread for Details August 2009
  • 2.
  • 3.
  • 4. feature solution 3834 Taylorsville Rd. Building A, Ste. 1B Louisville Kentucky 40220 | 877.818.6620 / 502.588.3170 | AutoSuccessOnline.com / AutoSuccessPodcast.com | info@autosuccessonline.com sgivens1@autosuccessonline.com Susan Givens, Publisher August 2009 By AlBabbington EMERGING FROM A POST- A Little Mistake Cost These RECESSION ECONOMY PUTS COMSUMERS IN THE Dealers $250,000 A Year DRIVERS SEAT Have you ever felt like you were making dealers nd hidden pro ts and correct- - HOW CAN DEALERS GET little mistakes that are costing you tons ing little mistakes that were costing design@autosuccessonline.com Thomas Williams, VP & Creative Director of money at your dealership? Do you those dealers hundreds of thousands of ON BOARD? feel like there are hidden pro ts in your dollars. These almost-magical solutions dealership that are just waiting to be un- turn little mistakes into instant cash covered? If you are like most dealers, the machines of bottom-line pro t. leadership solution Ken honest answer is, YES, Absolutely! 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220. 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 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 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 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 AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 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 HOW LONG DID YOU THINK IT WOULD LAST? Because I have not met you and do not JohnBrentlinger 18 It’s a shame for YOU not to make know anything about your dealership, I steve brazill more money, when these dealers do it can’t say how much money is being left GAME PLANS SteveBrazill 33 so easily… unrealized at your dealership. However, I can say FOR CERTAIN that the num- MARK TEWART THINK WHAT YOU’RE THINKING ABOUT “Just one thing that Mark showed TomHopkins 34 us made us over $200,000 in profits ber of dollars is substantial and would author of ddavis@autosuccessonline.com Dave Davis, Editor & Creative Strategist shock you, if you knew. How To Be A Sales Superstar pg 3 pg3 in 90 days” – Franklin Greene, GM There are a few things that every dealer • Discover the one secret that will make sales & training solution Montgomery Ford LM should be doing to make money, espe- your dealership an additional million cially in this economy. LOWER VOLUME + LOWER “Our grosses went up 30% on the front dollars or more over the next ve years GrantCardone 09 PROFITS = DISASTER end, and we added almost 50% in the — We have several clients who have al- The Great News is that I have identi ed MarcSmith 17 TICKET TO RIDE back end. The best part of that is that ready experienced this and it will make those little mistakes and have big solu- scott norman our sales also increased over 25% and the hair stand up on your neck when tions for them. NO BS, just real measur- WHAT SHOULD MY CONTROLLER BE DOING? you hear this. ScottNorman 24 continue to increase.” able results that start happening immedi- – Gary Minneman Jr, GM super6@autosuccessonline.com Brian Ankney, Sales-Improvement Strategist ately and I guarantee those results. SeanV.Bradley 26 JIM ZIEGLER, AUTOMOTIVE SALES LEGEND Sunshine Toyota Call 888 2 Tewart (888 283-9278) or e-mail info@tewart.com to schedule a pg 4 pg2 FranTaylor 28 TRAINING YOUR WAY TO DEALERSHIP SUCCESS “Our sales have increased over 25% while our grosses went up over $800 • Sell more vehicles without spending $1 more on advertising private and con dential interview. per vehicle and we have experienced • Increase your gross pro ts anywhere from $300 to $800 a vehicle ***We will share candid and speci c over $105,000 in additional service information that will prove to you without profits from lost previous customers, • Make an extra $100,000 or more in a doubt what I am saying is true. You will marketing solution many of which had not been to our your service pro ts in 90 days or less • Double and even triple your sales and see real dealer examples that support these SIMPLE STEPS TO ENSURE VIDEO SUCCESS dealership in years.” TimJames 08 – Wayne Gregory, Dealer service customer retention results. Because of time constraints, there will only be a limited amount of dealers kirk manzo West Ashley Toyota • Double your appointments and sales HOW TO SOURCE USED VEHICLES FOR DalePollak 10 REASONABLE PRICES conversion from Internet leads, Web accepted into this program. jwarner@autosuccessonline.com John Warner, Sales-Improvement Strategist My name is Mark Tewart and I am the site leads and third party leads KimOrr 14 BEYOND PPC AND SEO To Dominate in Search, Dealerships Must Tackle Online Customer Reviews President of Tewart Enterprises Inc. For • Increase your F&I Product penetra- P.S.: Please, only Dealers Or General almost two decades I have been helping tions by 25% immediately Managers may respond. HELPING SMALL BUSINESS OWNERS SO YOU pg 6 pg1 KirkManzo 16 CAN INCREASE SALES “In a market where opportunities for new ChuckPatton 22 KEEP YOUR EYE ON THE UIO sales are limited, finding creative ways to support local companies can be MattBaker 30 BUSTING STAFF EVENT MYTHS, PART 1 the key to unlocking additional unit sales.” - Kirk Manzo MarkTewart 32 BILLY MAYS VS. MICHAEL JACKSON
  • 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