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1. 2011
JANUARY

6. THE #1 SALES-IMPROVEMENT MAGAZINE FOR THE AUTOMOTIVE PROFESSIONAL
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Susan Givens, Publisher Thomas Williams, VP & Creative Director Dave Davis, Editor & Creative Strategist Brian Ankney, Account Manager Susie Horne, Account Manager
John Warner, Sales-Improvement Strategist
sgivens1@autosuccessonline.com design@autosuccessonline.com ddavis@autosuccessonline.com super6@autosuccessonline.com shorne@autosuccessonline.com
jwarner@autosuccessonline.com
feature solution
leadership solution
marketing solution
sales & training solution
an improved detail department is all about change
paragon honda and acura recognized as the cpo dealer of the
a good mobile website can significantly increase
year at the national cpo conference in san diego, california
creating ‘vision 2011’ with a four-step approach
why online reputation management should be
the death of the traditional dealership part 7
call tracking is key to keeping up with leads
bi-lingual marketing in automotive industry
resolving customer or co-worker conflict in six simple steps
,
internet sales 20 group review, part 2
the solution is right in front of you...
growing hispanic demographic urges
single provider simplifies complex
your no. 1 new year’s resolution
what non-verbal messages are
one more tool to get a Jump on the competition
want to sell more? eat more!
conquering confrontation
autosuccess: the podcast
rebirth of a smarter bdc
consumer engagement
you sending women?
dealership overhaul
measuring hype
mattMurray
32
38
14
16
26
42
10
18
40
28
24
20
22
30
34
36
08
cindyGentry
markTewart
stephenBeamish
erikStuttz
seanv.Bradley
mattBaker
JodyDeVere
marshBuice
bryanAnderson
billPhillips
susanGivens
JoeHigh
carlitoMojica
daveDavis
budAbraham
richardWinch
susanGivens
12
26
36
20

8. SusanGivens marketing solution
paragon honda and acura
recognized as the cpo dealer of
the year at the national cpo
conference in san diego, california
Brian Benstock and Paragon Honda and Paragon certified pre-owned vehicles of the second- breaking the all-time record for both brands.
Acura’s cohesive marketing strategy helped place Honda Certified retailer, and broke both
them grow from 17 to the No. 1 Honda and Honda and Acura’s all-time records by selling Paragon’s vehicles are front-line ready in
Acura retailer, selling the most new and certified more than 300 Certified Hondas and 100 less than 72 hours, and their average turn
pre-owned sales of any retailer in the country. certified Acuras in one month. is less than 30 days. The dealership has
zero 60-day vehicles, not due to wholesale
This year, Benstock and Paragon Honda and Benstock, the minority owner of Paragon policies, but rather to better retail marketing.
Paragon Acura were selected to receive Auto Honda in Queens and the Vice President Paragon promotes their certified pre-owned
Remarketing’s inaugural CPO Dealer of the Year and General Manager of Paragon Acura, has vehicles online and through targeted e-mail,
Award, presented by Dale Pollak from vAuto. mirrored his work ethic after that of the late text and direct mail. When customers visit
“Brian Benstock is exceptionally deserving Paul Singer, the founder of what is now the their Certified Pre-Owned Center, they are
of being recognized as the Certified Pre- Paragon Auto Group that also includes White surrounded by the value message of Paragon’s
Owned Dealer of the Year,” Pollak said. “With Plains Honda in White Plains, N.Y. and is Certified Pre-Owned marketing materials,
intelligence and boldness, Brian thrives in an headed by majority owner Edith Singer, wife which include posters, brochures, table tops,
urban environment where few could survive.” of the late Singer. hang tags and window clings, so it is easy for
consumers to learn about the their certified pre-
owned vehicle process.
“We give every customer an ‘auto-biography’
that includes the vehicle’s history, lemon
check, service history and pricing information
on competitive vehicles so our customers have
a lot of confidence when they buy a certified
pre-owned vehicle from our dealership,”
Benstock said.
“Paragon also gets most of its certified vehicles
from customer trade-ins because they have
"paragon gives every dramatically increased their new vehicle sales
to customers who are eligible to trade quality
customer an ‘auto-biography’ two- and three-year-old vehicles as a result of a
folder with lemon check, service customized targeted marketing strategy,” added
history, positive reviews and five Sean Wolfington, owner of the marketing
comparable vehicles that have a higher company that Paragon uses for their CPO and
price to show their vehicle’s relative value," said sean other profit centers.
wolfington, owner of www.tier10marketing.com, the company Paragon’s integrated marketing strategy
that created the folder and does all of paragon’s marketing. embraces both traditional and social media
platforms that have proven phenomenally
“We’re proud to honor Edith Singer, Brian After more than two decades of working successful. They implement results-oriented
Benstock and the entire family at Paragon alongside the Singers, “this business is in my marketing strategies that include in-depth
Honda and Paragon Acura with our inaugural DNA,” said Benstock, adding “Edith is the market research, traditional advertising, digital
CPO Dealer of the Year Award,” said perfect business partner; it’s great to have marketing, targeted direct mail, publicity,
Bill Zadeits, Associate Publisher of Auto someone intelligent who knows and lives reputation management, niche marketing,
Remarketing, during the 2010 COP Forum the business and cares about our people and in-store merchandising and sales and service
in San Diego. “Paragon’s innovation in the customers.” retention — all key components that contribute
certified space over the last year has been to their on-going CPO success.
industry-leading, and their stores’ success in With drive, determination and an innovative
CPO sales is reflective of that.” approach to selling certified pre-owned, Susan Givens is the publisher of AutoSuccess.
Benstock and Paragon Honda and Acura will She can be contacted at 877.818.6620, or by
Paragon Honda sells more than twice the sell more than 4,000 CPO vehicles in 2010, e-mail at sgivens1@autosuccessonline.com.
08 autosuccessonline.com

9. Control you need.
Experience you trust.
Service you expect.
Meet Henry.
As a member of our 800+ field specialists around the
country, Henry is committed to delivering professional,
consistent and quality service every day to local dealers.
You define staging parameters, frequency of visits and
photo requirements. And let Henry do the rest.
Service Excellence is Our Business.
With 20+ years of experience, Dealer Specialties is committed to putting our system, service and support in
your control. With our innovative inventory management system, dealers can take advantage of the industry’s
most rich, integrated and real-time data distribution network. Our proven system combined with professional
and experienced local specialists, like Henry, are committed to delivering countless hours of service and
support to local dealers every day.
Service excellence is our business. So you get back to the business of
serving customers and selling cars.
Visit: www.DealerSpecialties.com/excellence or call 888.242.1762

10. BryanAnderson marketing solution and will change over time; however, when
reviewed consistently, documented accurately
rebirth of and organized properly, the CRM data hub is
leveraged to its fullest potential.
a smarter bdc Above all, as the smarter BDC uses a strong
CRM to bring balance and organization to
the dealership; it helps to make everyone’s
jobs more manageable. A well-designed
BDC provides a support that naturally drives
Dark clouds descended upon the automotive BDC rep provide a constant flow of business to performance throughout the organization.
industry two years ago. The strong winds of both fixed and variable ops pipelines. Without Smarter design means stronger efficiency.
change blew, the credit temperature dropped these efforts, valuable customer data — though Stronger efficiency means increased
and jobless rates rose. Many were not prepared available in the CRM — is rarely translated productivity. And increased productivity drives
to manage the storm. It forced dealers to re- into business. incremental sales and a quantifiable return on
analyze budgets, re-evaluate spending and investment.
re-consider what constituted a true business Many dealers have woven the management
need. Because of this storm, the comfortable of Internet business with their business While remnants of the storm remain, the
landscape we once knew quickly changed. development strategy. With the appointment skies are beginning to clear. Clean-up and
as the central point of focus, the smarter BDCs rebuilding efforts are in full swing. As
One change in landscape was the numerous have used fully integrated ILM and CRM an industry, we have learned from many
closures of Business Development Centers solutions to standardize how large quantities challenges and are making better decisions for
(BDCs). Looked upon as a luxury by some, it of leads are qualified and moved through the future. One such learning experience is the
seemed to be the first choice when cuts were the store. This provides the BDC with total smarter design behind business development.
made. While most dealers saw the value of a visibility across what formerly were silos of Bringing the BDC back to life in the CRM
CRM, many thought they could live without sales, Internet and service business. at your dealership or starting one anew is the
the call center. But they made this choice at beginning of that solid footing.
what cost to the future? Additionally, the overall health of customer
data in the CRM is stronger when managed and
When organized and managed properly, a maintained by a BDC. Due to such high levels
BDC is the epicenter of customer interaction, of human involvement, the BDC offers far
bringing to light areas of opportunity that basic greater data cleansing — data that is absolutely Bryan Anderson is the founder of Autobase.
sales follow-up might never uncover. The vital in the marketing that drives additional He can be contacted at 866.667.9659, or by
persistent and tenacious efforts by a strong sales and service. Customer information can e-mail at banderson@autosuccessonline.com.
10 autosuccessonline.com

12. The landscape: So many providers, so many the resources to continually monitor and understand these changes, the average car dealer can
different technologies. Each dealership has an quickly fall behind. There are many resources a dealer can call on to assist with this strategy;
astounding number of tools, each with their understanding the basic premise and goals of SEO, however, is essential to selecting the right
own purpose and specific set of best practices. service provider.
The challenge: Understanding where to focus PPC, at first look, is much simpler and easier to digest. You bid on a set of keywords intended
and how to measure the effectiveness of your to drive high-quality traffic to your dealership’s Website and only pay when someone clicks on
efforts. Are you reaching the customers you your ad in the auction results. It’s pretty straight forward. PPC, however, has come a long way
should be? Is each and every advertising in the last few years. Below are some must-haves for a successful PPC campaign:
dollar going as far as it could? Are these many 1. Deep linking. When someone clicks on your ad that was placed because you bid on “2011
separate tools competing against each other, or Ford Edge,” they should be directed to an internal page that shows them the Ford Edge, not
working in harmony? your home page.
2. Inventory-aware PPC systems will bid on your used inventory based on actual units in
These questions are not easy to answer. stock. Gone are the days of bidding on every make and model because you “might” have a
Today’s digital marketing is the traditional used one on the lot. This is a huge advance in PPC technology and has been proven to save
marketing of yesterday — essential. What are dealers thousands in advertising spend.
the core strategies, and how can you levy them 3. Granular, transparent reporting, down to the keyword. You should be able to answer the
for continued success? question, “How does model A perform in paid search results compared to model B?” PPC
can track all shopper activities, from clicks to forms to calls. Proper optimization of these
search engine marketing campaigns depends on this level of reporting. Insist on it.
Search engine marketing (SEM) is comprised 4. Bid scheduling. It’s important to have the ability to schedule your ads with Google and others
of two main strategies: pay per click based on your business needs.
advertising (PPC) and “organic” search engine 5. Dynamic Ad Text. Ads should include the keywords that a searcher used in their query.
optimization (SEO). They are the drivers of
traffic and the awareness tools. Much like print, PPC is a technology-driven service. In 2011, the technology that drives your paid search
radio and direct mail were the staples of driving campaigns will ultimately determine your success. The days of manual management of PPC
showroom traffic in the past, these are now the campaigns are over. As with SEO, there are many opportunities for a dealer to get in the game.
drivers of digital traffic today. Ask the right questions and select the right provider.
Organic optimization is a much-embattled, the dealer website
ever-changing process. The basics, however, So you’ve got your SEM strategies in place; what now? Traffic is flowing into the Website; what
have remained the same: should you do with it? Is the site ready? There are a bevy of Website-oriented best practices,
1. Search engines rank sites based on checklists and vendor audits available to you the dealer. Here are some highlights to focus in on:
keywords in your Website’s text, the
ranking authority of links into and out of 1. the home page 4. specials
your site and the geographical location of • Custom dealership photos • Have specials for every profit center
the searcher. • Featured vehicles • Have a clear call to action
2. Creating a robust Website which houses • Simple navigation • Specials must align with offline messaging
content that serves the needs of customers
in every profit center is, and will remain, a 2. inventory pages 5. must have dealership pages
best practice. • Have a clear call to action • Contact Us with clear call to action
3. Organic search results now offer many • Pricing displayed • Staff page with photos of staff
different resources and content types for a • Custom photos • Testimonials
single query, such as video-hosting Websites • Video for each vehicle • About Us
(youtube.com, blip.tv, etc.), news results, • Convenient access to CPO • Special events pages
local business results, press releases, social
media updates and review sites. Being aware 3. profit center pages
of and optimizing these resources is a must. • Must differentiate you from your competitors
• Hold custom photos and video
One of the single greatest challenges in organic • Link to corresponding specials
optimization is keeping up with the changes • Have a clear call to action
made by the major search engines. Without

13. Although not as alluring as social media or paid search or SEO, proper management of the
dealer’s Website is the foundation of digital marketing success.
social media
Touted as the newest form of marketing, social has been the topic of conversation everywhere for
the last 18 months. It’s the newest digital frontier and, because of that, it can be intimidating. It’s
important to remember that before there was Facebook and before every customer and prospect had
a digital voice, they were sharing their thoughts and opinions at the water cooler, at the dinner table,
the grocery store, the church and everywhere else they traveled. Dealers have been managing their
reputation in their communities since there were dealers. The difference? This is a visual and highly
accessible medium; it requires thoughtful management. Some simple pillars of social media:
1. Listen. Being able to monitor the conversation around your brand online is extremely powerful.
There is no need to go out and create 25 dealership profiles at every review site if your
customers are not there or will not use them. Reputation-monitoring tools will allow you to find
out where the conversation is happening in your neighborhood, so you can focus your efforts.
2. Talk. You’re listening, and so is everyone else. Put your voice out there and make sure that
you are heard. Facebook is one of many ways to tell people who you are; syndicate your
message and interact with your customer base. Give people a reason to keep you top of mind
by offering up engaging, valuable content.
3. Connect. Reach out to your active users and let them know how valuable they are. It’s not
about one-way conversation or getting lots of “likes” on a specific post. It’s about building a
team of customers who support your brand and voice their positive sentiment on your behalf.
Connections are the fruit of a well-thought out and executed social media strategy.
The basic belief that we hold about social media is that no one has more potential to deliver the
engaging, valuable content than the dealer. Photos of deliveries, videos of happy customers in
the service department and new model year video vehicle walkarounds are content that can’t
be delivered by the third-party management service, and can’t be matched. Make your content
genuine and passionate — the community will form around you.
service marketing
As the battle to retain service customers rages between dealers, local mechanics and national
repair chains, a few dealers are quietly winning the war on their dealership Website. The keys to
winning this billion-dollar battle in 2011 begin on your service pages:
1. Service content. If the Service Department has goals to reach the coveted 100-percent
absorption rate, then why is only 10 percent of the Website dedicated to service? Take the
time to create pages on your site that cover the services offered by your dealership; we all
know that content is the key to Web traffic.
2. Targeted, personalized e-mail messaging based on vehicle information. Make your
messages relevant and timely.
3. Give your customers control of their experience. They should be able to access and interact
with content specific to their vehicle. What services do I need and why? What is included in
that service? It’s about demystifying the service process and building trust.
4. Differentiate yourself. What makes your service department unique? Use photos and
video to showcase happy service customers and introduce your friendly sales staff. You are
merchandising your vehicles; why not merchandise your services?
5. Specials… again. This topic has been reinforced numerous times over the past several years.
Your Website has to have specials up for every profit center, and service is no different. This
is basic automotive digital marketing.
Dealers can claim this revenue and attract more returning customers to the service bays by
turning their digital prowess on the service department.
analytics
What are analytics? Are they gobs and reams of PDF and XLS reports that you pour through
every month? Notice the word “reports” in there? Reports are data streams that you
have to interpret, and then act on. Analytics guide you to the right answer and can
suggest your next move. The right analytics platform is another employee —
an extremely smart and intuitive employee.
The challenge that any analytics platform has is being able to see and understand
the data from all of these different tools. Unless all of the tools are on the same
platform this may, in fact, be impossible.
2011 will bring the need for better vision across multiple tools. Dealers should expect
and vendors should deliver this capability. Without a proper analytics platform, there are
too many opportunities for inefficiency in the form of wasted ad dollars and the potential
for misaligned priorities. These are things that dealers cannot stand for and cannot afford in a
market of shrinking grosses.
Matt Murray is the director of digital marketing at Dealer.com. He can be contacted at
866.389.5430, or by e-mail at mmurray@autosuccessonline.com.

14. MarkTewart leadership solution
the death of
PART 7
the traditional
dealership
“The more things change, the more things the roles both areas play in your business. from continued business and referrals that the
stay the same.” This quote can be an accurate amount spent on retention is paltry compared
reflection of most industries. With all the I find the majority of emphasis is still placed to a typical dealerships advertisement budget.
massive changes underway in the automotive on customer acquisition in most dealerships.
industry, the majority of the industry operates If you want to build a solid business, you tips no. 2 – create forced
in much the same way as it did 50 years ago. must emphasize acquisition and maintaining continuity programs
— this is how to experience exponential A forced continuity program is a program
One small part of an industry begins to change versus linear growth. Here are a few tips in that forces your customer to use your service
and reaches what Malcolm Gladwell termed making that happen: department in exchange for something of value
in his book the “tipping point.” That tipping they receive at no charge. Over the last several
point allows the change to gain momentum tip no. 1 - create continuity, years I have asked more than 100 dealers what
and become norm for an industry. This change loyalty, rewards, vip or recognition their long-term service retention as a percentage
usually occurs in one small segment and can programs with enough real teeth of their sales are, and only one dealer knew the
be isolated. If you examine the business or in it to motivate a customer answer. The answer to that question a vital sign
industry as a whole, you find that even with Every time I shop at Kroger’s grocery store to the future of your dealership.
the change being influential, the rest of the I love putting in my reward number and then
industry or business remains intact adhering to watching the total bill go down as my rewards When conducting sales training sessions, our
traditional thoughts and norms. points are deducted. At Panera Bread when trainers tell salespeople that in the beginning of
I give them my rewards card, I usually get their sales career they should spend 80 percent
With dealerships there are a couple of old something free and build redeemable rewards of their time on customer acquisition and 20
sayings: “The front-end sells the first car and for the future. I love when I make flight or percent on customer retention. However, as
the back-end makes the next one,” or “the front- vacation reservations for free using my airline time progresses, salespeople should work on
end gets the customers and the back-end keeps and credit card rewards. I love when I get a flipping those percentages. A dealership is no
them.” There is a lot of truth to both of those free car wash after my tenth visit. different than a salesperson.
sayings and to the importance of understanding
Do you get the A product our company provides for
point? People love dealerships is lifetime power train coverage.
to be rewarded with I have witnessed firsthand that with the right
free bonuses and underwriter for this product, lifetime power
will be motivated train programs are worth their weight in gold.
more to get that It is simply amazing how much this forced
free bonus than continuity program provides in increases to
to get a discount sales to service retention, new and used sales,
on something. gross and net profit, vehicle maintenance
Rewards and loyalty and vehicle service contract penetrations and
programs influence repeat sales. Just like the loyalty and retention
shopping patterns programs mentioned earlier, I have heard
and behaviors — every fear-based excuse dealers have for not
bottom line, end of having programs like this in their dealership,
story. Stop making but nothing in well-executed experience proves
lame excuses like those fears are real.
“rewards programs
To quote one of the greatest marketing lessons
get expensive,”
I have ever learned, “You must put an iron
“loyalty programs
cage around your customers.” If what you do
take away my
and what you provide is exceptional, your
profit” and “I am
customers will want to continue to do business
giving away profit
with you. Your goal must be to stop further
I don’t have to give
commoditizing a commodity business and
away.”
become a category of one.
Most dealers spend To receive my free Special Report, “Putting an
vast fortunes on Iron Cage Around Your Customers,” e-mail me
getting customers with the term “Iron Cage” in the subject line at
and little on keeping the address below.
them. It would be
hard to spend too
much effort and Mark Tewart is the president of Tewart
money on customer Enterprises, and the author of the best seller,
retention. Your How To Be A Sales Superstar. He can be
profit creation for contacted at 866.429.6844, or by e-mail at
long term is so great mtewart@autosuccessonline.com.
14 autosuccessonline.com

15. Visit vauto at NaDa booth #800S
38
percent increase in gross profit
2009 to 2010
36
percent increase in CPO sales
2009 to 2010
14
used inventory turns
2010
1
solution
to master the market
Brian Benstock and Paragon owner Edith
Singer started using vAuto in 2007 and
immediately saw positive results. But this
year was their best yet. How’d they do it?
“We moved beyond just managing
our inventory, and started being more
efficient, more empowered in negotiations
and more visible to the market. Our record
numbers are the result.”
With vAuto, Brian and Edith are now Market
Masters. You can become a Market
Master, too. Visit www.vAuto.com/bb
or call 877-828-8614 to learn how.
Brian Benstock
Paragon Honda
Queens, New York

16. StephenBeamish leadership solution
single provider
simplifies complex
dealership overhaul
Because of the economic conditions of the past communications software and solutions. The technology was simplified to the point that the
few years, the opportunity to buy embattled two companies then worked together to create IT staff could focus on training. This allowed
dealerships has never been higher. When solutions that would allow the dealerships to be the staff the time and attention they need to get
Denver-based Booth Creek Management, refitted in the tight time constraints provided. up to speed.
as Summit Automotive, expanded into the
automotive retail field, they found a buyer’s An adaptable and resilient network was created Having a network based on the same
market and rapidly started buying and using Oracle’s class of ultra-thin clients that technology across the board also had benefits
overhauling dealerships across the United work in conjunction with remote servers. This in the voice communication field. Capabilities
States. While this was an exciting opportunity, provided simplified and secure authentication such as network-wide six-digit dialing have
it also posed some interesting challenges. for both voice and data. Because of this, BCIT helped the company completely revamp their
didn’t have to deal with an assortment of PCs workflow, Griewahn said, and has allowed
One of these challenges was that vehicle at each location, but rather could set up a them to be more creative in their efforts to
manufacturers place limits (72 hours, to scalable network to which each new dealership streamline. When Summit purchased five
be exact) on the time a dealership can be could be connected. Not only did this provide dealerships within 100 miles of each other in
shut down for the change over. One of the a standardized experience, but because the New England, they were able to pool phone
significant challenges was the data and phone thin clients are much more reliable than PCs, operators together in one location, reducing
infrastructure. BCIT, the centralized IT arm of BCIT believes that the savings under the thin expenses while improving flexibility.
Booth Creek, had to integrate voice and data client model is $270,000 when compared to a
for the new dealerships, as well as enable their conventional PC environment over the seven- The result of calling in outside experts has
custom DMS. And, since voice communication to eight-year lifespan of the thin client. made the business of doing business quicker
is often the first point of contact between and easier in some cases, and simply possible
customers and the dealerships, it’s vital to get The advantages of this new system became in others, Griewahn said.
this step right from the beginning. apparent once Summit acquired Denver Mazda
and converted the voice and data infrastructure. “Enterprise-grade solutions are about more
Chad Griewahn, the CTO of BCIT, remembers “Standardizing on the Mitel Unified IP Client than the right architecture,” Griewahn said.
retrofitting a dealership in July 2009 clearly. at Denver Mazda was a game-changer for the “With a single point of contact, everything
“Reimaging more than 200 PCs, setting up the whole industry,” Griewahn said. from ordering to professional services and
network, and reconfiguring the phone system support is extremely simple and scalable.”
in one weekend was extremely difficult,” he This unification and standardization had
said. “We managed, but we clearly had to find other benefits, as well. Because Summit has
another route forward.” a customized DMS, the staff of dealerships
Summit acquired would have to have a crash Stephen Beamish is the vice president of
BCIT started to look for outside experts course in the new system to be effective after marketing and business development for Mitel.
to lighten and streamline this load, and the dealership opened under new management He can be contacted at 866.387.9064, or by
eventually turned to a company that provides in 72 hours. Because of the standardization, the e-mail at sbeamish@autosuccessonline.com.
16 autosuccessonline.com

18. BillPhillips marketing solution and support policies. When you call them and
need help, will you get a real, live person with
measuring
whom you can quickly resolve the issue? Ask
for a guarantee of their policy. In fact, ask for
a guarantee of anything I’ve written about in
hype
this piece.
In the end, you should have a functional,
attractive site that is optimized correctly and
requires the least amount of your time to keep it
Requesting (and measuring) betterment from a to your site every month. That number should that way. If the organic SEO is working correctly
new vendor is something very few dealers do. exclude Web crawlers of any kind from search and your pay-per-click marketing dollars are
But when it’s done, it is very revealing of the engines, and exclude your own dealership’s being spent wisely, customers will be able to find
vendor’s true capabilities. If you are switching IP addresses. This increase should also be you quickly in the appropriate, popular searches.
vendors because they tell you they will put you accomplished using the same amount of money This is the No. 1 priority of any site and the
head and shoulders above your competition, spent on search engine marketing (SEM). ultimate test of any Website vendor.
then make them prove it. If they backpedal and Don’t increase your SEM spend and allow the
say things like “market conditions affect this” new vendor to claim victory. In the end, you have to make sure you are
and “we can’t guarantee that,” you should hear selecting a vendor for the right reasons
these words in your head: Make ‘em guarantee Visitor’s time onsite should also increase, for your store — their products work as
it. If they can’t, it may be the beginning of many number of pages visited should increase, advertised, they can back up their claims of
things this new vendor won’t be able to prove. conversion rates should be higher and bounce increasing your business and they’ll be there
rates should decrease. No change means no when you need them. Also, don’t believe
Website development companies — small or real results, and no measurement means you the “we are the biggest” or “look at our long
large, startups to giants — need to be asked probably just bought the hype. Hype won’t sell reference list” hype. It is irrelevant. Many
(at a minimum) the following questions and cars – ask for the measurements. dealers are selecting vendors for the wrong
must be held accountable for the answers. If reasons these days — don’t be one of them.
As a given, the site should look good and
you can’t get good answers, you need to take a
function well. If the vendor tells you how
closer look. You should measure your current Let’s all be like our new breed of Customer -
“self-adjustable and workable” the backend
provider by certain statistics and ask the new smarter and well-informed about our decisions.
of the site is, make sure you have a full-time
vendor to guarantee an improvement by a
staff member to do this and calculate their time
stated amount.
into the total cost of operation for the “self-
Bill Phillips is the president and CEO of
adjustable” site. Automotive Internet Management, Inc. He
For instance, the new vendor should be able
ShipCarsNow-UsedCarDealer-1/2 p horizontal Jan 2011 issue, sent 12/10/10 AM be 1 of 1 can p contacted at 866.593.7212, or by
to increase how many unique visitors come You should also ask about the vendor’s service e-mail at bphillips@autosuccessonline.com.
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18 autosuccessonline.com

20. ErikStuttz leadership solution
creating ‘vision 2011’ with
a four-step approach
As we conclude another year, and reflect on Over the past few months, several of our the four-step approach
the past few years, it truly has been some dealers committed to make 2011 their best year Step 1: As a team, what are our goals? What
challenging times in our industry. History ever and lead their organizations with a clear do we desire or wish to improve upon in
shows that there have been many incredible vision and direction; thus, with these dealers, 2011 within each of these seven areas? (Over
leaders of our industry who have had to “Vision 2011” was born. These committed a series of sessions, we ultimately explore
make decisions to make the best out of the dealers have found it to be critically important all seven automotive profit centers within a
challenges they faced. They, too, had to rally to have an accountability partner, helping them dealership)
their people towards a common goal by define their vision, document action plans and Step 2: What are we currently doing within
creating a vision that all could be inspired and measure their success. each of these seven areas? (Honesty and
willing to follow. It’s clear that a leader creates humility is critical here)
vision by beginning with the end in mind. To start, each dealer completed both an in- Step 3: What are the challenges, obstacles
depth variable and fixed operations assessment. and roadblocks that are standing in our way
History also shows that leaders without vision When examining their holistic business to accomplish our goals? (People, process or
fall an easy prey to worry, fear, trouble and through the answers to these questions within communication)
self-pity, all of which indicate weakness and these assessments, they saw clearly their Step 4: When do we start? (Execution of an
serve as precursors to failure. While success areas of success, as well as a need for a plan action plan is created)
cannot be sustained without vision, vision is to correct the areas of needed improvement
not enough to achieve success. Why do some within their perspective dealerships’ seven The reason why this four-step approach is so
visions succeed and others fail? Why do some profit centers. From these assessments each powerful is that we should never start out an
visionaries enjoy fleeting success only to fail dealership created a strategic action plan, and assessment by asking the Step 2 question first.
in the end? A true leader who treasures a grand more importantly a vision for those involved to Because of human nature, people sometimes
vision is more likely to realize his or her lofty execute the plan. The outcome, thus far, from will become defensive of what they are
ideal than someone who merely wishes for each dealer has been very successful. “currently doing,” with comments such as
an outcome. But a vision does not guarantee “This has been our policy,” or “This is the way
success. A vision requires action. Here’s how it works: we have always done it” — they never allow
After completing their assessments, meetings themselves the opportunity to explore the Step
What determines the staying power of any were held with all key personnel involved 1 questions first. The key here is to remember
leader’s vision? Recall Henry Ford; he within a series of strategy sessions. Through to start by asking the first question (Step 1)
cultivated a vision of affordability, and he facilitation, everyone looked with intensity within an assessment.
mass produced it. He had a vision and he within their seven profit centers:
accomplished what he not only believed in, but • Showroom process It has become clear to us that all leaders who
more importantly he had the determination, • Phone process (inbound/outbound) create success for their organizations must first
firm resolve and commitment to become a • E-commerce (holistic Web presence/ clarify the vision, but more importantly inspire
change agent to inspire others to see his vision initiative) others on the vision. All that a leader achieves,
— he became a catalyst of change. • Sold/Unsold follow-up process and all that he or she fails to achieve, is the direct
• Prospecting abilities by leveraging their result of the clarity of his or her own vision.
When we look back at automotive history, CRM (data mining)
there have been many automotive leaders and • Loyalty renewal process (lease/retail) Take this time to clarify your vision for 2011
pioneers like Henry Ford, who have shared • Complete fixed operations so you’ll increase the staying power of your
some of these same common traits; they were own success, as well as the success of those
people who dared to set out and accomplish a From these seven profit centers, each were you lead within your organization.
central purpose and a vision for not only their rated on a scale of 1 to 10. Then, with the
business, but even more importantly a clear rated number of each profit center completed,
vision for the people they have rallied and led. they explored why they determined how they
Think of the visionaries you know or have arrived at that number or consensus.
known personally within your automotive
journey, and I’ll bet that they were persuasive, Lastly, while conducting these strategy sessions Erik Stuttz is the founder of Automotive
persistent individuals and were fueled by a with key personnel, each of these seven areas Legends Group USA. He can be contacted
burning vision of what could be, rather than within the dealership was approached by at 866.386.0661, or by e-mail at
having run from what pained them. following a proven four-step approach. estuttz@autosuccessonline.com.
20 autosuccessonline.com