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December 2003
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2. Contrarian Sales, Management and Marketing Concepts
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5. It’s WAR Out There!
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6. f&i solution
GeorgeGeorge Jackson
By Jackson
How to Increase Customer
Satisfaction and Generate F&I Income
If you truly want to you should do is accept the decision “Mr. Customer, the plan you chose is a
maximize your F&I and acknowledge the choice. You know good choice. Based on what you told me
income, you must you are going to attempt to sell more earlier, (in the interview) I thought you
improve your step- products, so at this point, just accept the might have picked this plan. Is it because
sell skills. In order customer’s choice. If you attempt to step- of the payment or did you simply have a
to be successful at step-selling you must sell too quickly, you may be perceived as question about the coverage?”
do these four things well. combative, and the customer may not be
open to your approach, no matter how If the customer says ‘payment’ address the
Invest in yourself. good it is. payment concern by soliciting additional
Conduct a thorough interview before the cash, adjusting your service contract plan,
menu presentation. Skipping this step puts “Good choice Mr. Customer. Let me get term, or deductible, or by offering single
you in a poor position to step-sell. It may your paperwork ready.” life insurance rather than joint life. There
take a few minutes longer to do a thorough are many ways to offer payment relief,
and complete interview, but the time you Establish the objection. just be sure to work with the customer’s
invested will come back to you in the form You have to establish the objection before interest in mind and not your own. If the
of higher product penetrations and more you can overcome it. Usually it is payment, customer simply has a question, answer
income. but don’t make any assumptions. Let the it as honestly and succinctly as possible
customer tell you. You may think you and then ask, “Do you have any other
Accept the customer’s decision. know, and you could easily be wrong, or questions about the coverage?”
Once the customer chooses one of the the customer could come up with another
options on your menu, the very first thing objection just to avoid buying. Ask for the sale.
Many good presentations don’t result in
a sale only because the business manager
never did ask for the sale. Closing
questions such as “So what do you think,”
or “Should I get the paperwork ready,’ are
poor attempts to bring the customer to
a decision. These direct closes can lead
to a ‘no’ as easily as a ‘yes’. If you just
Log 200-500% more opportunities! addressed the customer’s objection or
question in an intelligent, articulate and
honest manner you have every right to
Leader in Showroom Traffic, ask them to buy your product in a more
Lead Management, positive manner.
and CRM Software
“Mr. Customer, with your additional
Track all outgoing real-time showroom & desking control downpayment of $500, your new payment
phone activity including the coverage would be $450 for
internet lead tracking system 60 months. This is based on 30 days to first
2-way active DMS integration
payment or would you prefer 45 days?”
complete in-store training For higher penetration levels you have to
Minimize data entry step-sell, and in order to be successful at
with license scanner drivers license scan, worksheets it, you have to have a game plan. Although
& credit bureaus it is great when a customer picks the plan
with every product you offer, you have
to expect them not to and be prepared to
address objections. Invite the objections,
track more because without them you probably won’t
The Higher Gear Group, Inc. get the sale.
bring back Hoffman Estates, IL 60195
more tel 866.873.0029
fax 847.310.3196
sales@highergear.com
close www.highergear.com George Jackson is the Director of
F&I Training for American Financial &
more call for a FREE consultation and demonstration Automotive Services, Inc. He can be
contacted at 866.280.0301, or by email
at gjackson@autosuccess.biz.
6 subscribe today at www.autosuccess.biz
7. marketing solution
Jeff Fishel
By Jeff Fishel
Media Strategy and Planning:
Frequency vs. Recency
In last month’s Consult with your dealership’s advertising
article, we agents regarding your own market,
considered the need advertising goals and budget.
for urgency within
your dealership’s You need solid media planning to deliver
culture and advertising. The ‘now’ market your ad messages to the now market
was defined as the consumers within your effectively and efficiently. First begin by
reach at any given time who could be deciding who will place your media.
persuaded to purchase a vehicle right now.
Also, a direct marketing approach was Radio, TV and print sources sell their
explained to better target the now market products in the form of time-slots or ad-
with your specific advertising messages. space that are available each day. Media
firms conversely, do the science first,
If the success of your ad promotions then negotiate with all outlets so as to
depend upon pulling larger percentages present you with total audience for your ad
of now buyers to your dealership, then messages.
your ad messages must be delivered to
the now market on a daily basis. This Secondly, determine your ad budget.
involves media strategy and planning. Depending on your market and overhead,
Currently there are two opposing theories somewhere between 10 - 15 percent of
in advertising regarding media placement your combined new and used gross profit
strategy: frequency versus recency. is a good average. Consider providing your
media agents with an annual budget and
The frequency theory focuses more on negotiate with them using the whole year’s
targeting specific demographics, like total. Planning up to one year ahead allows
ages 18 to 54, or male versus female, and you to select your best promotional days,
then hammering these consumers with a weeks and months of the year and can,
minimum of three impressions of your ad’s potentially, save you up to 40 percent in
message. The premise behind the frequency your annual media expenditures.
theory is that the first time a consumer hears
or sees your ad there is very little, if any, Lastly, select your most effective media and
retention. The second time your message is dominate. Don’t spread your advertising
heard or seen the consumer will take more messages too thin. Instead, dominate the
notice. And finally, after three or more mediums that will best reach the now
impressions, the targeted demographics in buyers in your market. If its direct mail
your market are motivated to act. or newspaper inserts, go with maximum
quantities. If it’s traditional newspaper, go
The recency theory, on the other hand, with a minimum one-half page above the
disregards the concept of mandatory fold, in full color. And if its radio and TV,
multiple impressions in advertising and strive for the most media points in multiple
focuses instead upon your total market day parts as your budget allows.
exposure. Advocates for recency argue
only one impression of your ad’s message Structure your media strategy and planning
is required, provided it is seen or heard by a so as to make the delivery of your ad
customer who is ready to buy now. messages BIG and BOLD. Whatever
media strategy you choose, be it frequency,
Based upon this principle, recency theorists recency or another method, your media
assert it is better to throw a large grid planning should always focus exclusively
to reach maximum now buyers in your upon reaching the now buyers within your
market, than it is to repeat your ad messages market at all times.
into specific, smaller demographics via
the frequency method. From a statistical
point of view, recency advocates claim Jeff Fishel is the National Sales
the frequency model will reach smaller Director for FishMarketingOnline.net,
percentages of the now market. Therefore, FishMarketingOnline.com and
they maintain it’s better to use mass media IndependentAutomotiveMarketing.com.
in reaching the majority of now buyers just He can be contacted at
before they buy. jeff@Þshmarketingonline.net.
december 2003 7
8. leadership solution
Joe Verde
By Joe Verde
Avoid Losing Customers When You
Lose or Promote a Sales Person, Part 2
We all lose a sales follow up John’s customers when he leaves. records are correct, are you still at 312 Oak
person at some time Question: Did they follow up on their own Street, etc. ... and how many drivers are in
or another. The most customers when they got promoted? your family these days? How many vehicles
important thing you Fact: When you promoted your best sales do you have now ... and of the drivers in your
want to do when that people to management, you probably lost family, who’s next in line for a new or used
happens is to maintain your customer for the all of their customers, too, at the same cost vehicle?
dealership. This month, let’s talk about some as losing John’s customers now, because
ways to maintain you customers when a sales you didn’t have a plan in place. Or, your • Send a postcard or letter to everyone Bill
person leaves and include some tips on how managers’ previous customer base trickled hasn’t personally met at this point and then
to build your business even more. down, month after month, once they were follow up each one by phone. 45 / 90. Now
promoted. Now they’re down to almost Bill needs to maintain contact by mail / e-mail
1. Set a goal. nothing. You handed all of their customers every 45 days (his newsletter / birthday cards
Common sense says the first thing you want out as house deals to sales people who didn’t / notes) and by telephone every 90 days.
to do is save those customers. follow up. In real life, you just gave away
free money to lose customers. 2. Hire a sales assistant for John
2. Make a plan. (and for all of your high achievers).
Initially you should consider the things that What will work when you know you’re Why? Because good sales people run into
probably won’t work. losing a sales person. a time management problem at some point
when they start selling more. That means
The hope plan. 1. Turn all of John’s accounts. they get so bogged down in the ‘stuff’ that
First of all, you can’t just hope that John’s Who do you turn them over to? Only to goes with selling lots of units, they can’t sell
customers will still come back in to the another sales person who has the same any more than they’re selling now.
dealership for their next vehicle. If you selling style as John who does follow up.
haven’t noticed, that doesn’t actually • I personally hit the wall at about 18 to
happen. • How do you turn them over? Not with just 20 units. Then my wife helped me get
Fact: With little or no follow up, 63 percent of that postcard or letter that says, “John isn’t organized, set up my computer follow-up
your customers have no intention of buying here anymore and Bill has this account.” and made some calls to help set and verify
from the same sales person or dealership Instead, introduce their new sales person, appointments. This will help you break into
the next time they’re ready. And since your Bill, to every one of John’s customers, at least the 30s.
dealership itself probably doesn’t have an on- two or three months before John is leaving or Tip: If you have high achievers and if you
going follow-up program for each customer, getting promoted. Have John introduce every want them to increase their production by at
they won’t be coming back if John isn’t there single person he talks to on the lot (up front least 50 percent, get them some help so they
to maintain his contact with them. or in service) to Bill. “Bob and Betty, I want can become more productive.
you guys to meet Bill. You know I’m retiring
Giving them to the new guy. soon (getting promoted / leaving soon) and • What would a sales assistant do? A sales
Why in the world would you give your Bill is taking over all of my accounts, and assistant would do tons for any good
best prospects (and/or orphan owners) to you’ll both love working with him.” sales person (current, 90 day average of at
the newest sales person you have who, least 15+ units). Use the things listed, just
statistically, won’t be there even six months • Have Bill send a thank you note. Bill needs remember the primary goal in this article is
from now? to visit with them, build rapport and as soon for them to either take over or maintain a
Fact: 82 percent of the new people you hire as they leave, Bill needs to send a preprinted sales person like John’s existing accounts.
will be back out of the car business within note that says, “I enjoyed meeting you today,
their first six months. (92 percent in one year.) and I look forward to working with you.” • The steps to success. Have John introduce
Why? No training and poor management. Add a short, personal ps like,. “hope the kids his assistant. Have John introduce everyone
won the ball game yesterday.” to his administrative (sales) assistant, Ann,
Giving them to the other sales people. “Bob and Betty, I want you to meet Ann. You
You can’t give John’s customers to the • Immediately put them in the computer for guys know I’m retiring soon (moving / being
other sales people. Why would you? If future follow-up. Depending on what they promoted) and Ann will be taking over all of
they don’t do any follow up now with their did (bought a car, had their car serviced, my accounts. You’re going to love working
own customers, they won’t follow up with etc.) set an appropriate follow-up call for no with her. In fact, you guys spend a few
someone else’s. later than 30 days out and put them on Bill’s minutes getting to know each other while I
Fact: 90 percent of your sold customers are regular 45-day mail out for his newsletter. pull that car around for you to look at.”
never contacted again by their sales person
about buying another vehicle. • Call them. They enjoyed meeting Bill Have the new assistant help John do
initially, and now it’s time for Bill to everything. Some examples to help John:
Management following-up. reestablish and extend the rapport he started
You could have management start following building in their first conversation by phone. During the sale.
up on customers, but it won’t work. “Ann, do me a favor, I have another customer
Management doesn’t have the time to even • Ask for referrals. This first follow up call is that I need to finish up with real quick. Would
train, track and manage their sales force, also the perfect time for Bill to update their you take Bob and Betty on a demonstration
much less take on the responsibility to records, “Bob, let me just make sure our drive, they want to drive the blue GS.” (Of
8 check out www.autosuccess.biz
9. continued
course John has to teach his assistant what to the value of building a solid customer base Extra benefit: By helping management with
say and what to do on the demonstration.) of her own. their previous customer challenge, these
management assistants would also develop
During the write up. 3. Save the dealership $480,000+. a 100 percent repeat business, again with
“Bob, I’ll be right back. Ann, while I finish There is one catch, though, that kinks the lower expenses and higher profits. In fact,
up with that other customer, go ahead and plan for most dealerships. as soon as they’ve worked with enough
start the paperwork for me.” (Teach her how, The dealership has to pay for the assistant customers to build their own customer base,
first.) and you can’t charge John. you’ve just developed another sales person
with 100 percent repeat business. And you
After delivery. Reasons. could eliminate the “I want a promotion,”
“Hi Betty, it’s Ann, John wanted me to give • The dealership benefits most. You’ll pick from your best sales people if you took better
you guys a call to make sure you figured up a 50 –100 percent increase in units, and care of them. You could stop your promotion
out how to use that CD player and to see if the dealership will receive about 80 percent losses and build that great selling team faster.
you had any other questions about your new of the benefit of those additional units. Plus, But to do that, you have to help your top
car.” (Of course, you have to teach her about you’d want all of your good 15-20 car guys people do better and reward them for it. And
follow up, too.) to get to 30+ units per month. that means you can’t help them get good and
cut their pay because they did.
Regular follow up down the road. • The sales assistant works for you. If Bob
“Hi Bob, it’s Ann. John asked me to give you paid for his own assistant, he or she would It is some trouble to make these changes.
guys a call to remind you that it’s about time work for him, not the dealership. I’d also But, when you stop turnover, train and help
for that first oil change. Did you want me to think it would be in your best interest to your managers become more effective, and
schedule it?” control this situation. Administrative people build your customer base, your dealership
for your sales people work for the company. becomes ‘management driven’ instead of
Mail outs. You loan them to your sales people to help ‘market driven’ (weather, economy, 0 percent
“Bob and Betty, John and I just wanted to them. That way, management controls who financing, etc.).
wish you both a happy holiday, Ann” does what.
Dealers and managers are shocked to find
Incoming calls for John. Here’s another thought. Why wouldn’t you that there are so many ways to increase sales,
“John’s office, this is Ann. (response) Oh, also hire a sales assistant to do management’s and especially the types of sales that send
hi, Bob. (response) John is with a customer, stuff and to take over all of their customers, almost all of the extra gross profit straight to
what can I help you with?” orphan owners and all of those management the bottom line to double or triple your net
house deals you’re giving away every day profit almost overnight.
Are you starting to see how you could...save now? Right now you give sales people
the customer and develop a new sales person. free deals for doing nothing, and they don’t Save 1/2 million dollars this month. Train
Because she knows all of John’s customers, follow-up the customer. (Save the ‘they your managers to lead and your sales people
your new sales person, (Ann) starts off at 15 deserve it’. Subtract house deals from their to sell, and build your business so you can
or 20 units per month with 100 percent repeat sales totals and you’ve got a bunch of six to switch from 70 percent ‘market driven’ to
business if and when John ever leaves your eight car guys.) 100 percent ‘management driven’ today.
dealership.
This administrative person would help your Joe Verde is the President of The Joe
Think about it, she has never talked to a managers do the things they do that keep Verde Group. He can be contacted
walk-in customer, she knows how build them from training and managing your sales at 866.429.6689, or by email at
rapport, present, demonstrate, sell, follow people, which costs you even more sales jverde@autosuccess.biz, or visit
up, and she definitely knows how to and sees every day from them, too. www.joeverde.com.
december 2003 9
10. sales and training solution
TerryByL. Isaac
Terry L. Isaac
Presentation Demonstration:
Building Value and Profits
Your presentation 4. Product knowledge. 7. Demonstrations.
demonstration, Studying the vehicles features and benefits Vehicles are made to be driven. To complete
whether short or long, should be weekly training using the an effective presentation demonstration you
is the step in which information provided by the manufacturer. must end with a driving demo. This means
all your preparation Many factories are now providing online the sales person drives the vehicle first, not
is put on stage. Here you show the features training. the customer. The reason for this is that
and benefits of the vehicle to build value the sales person has only demonstrated the
and justify cost. You turn the prospect from One of the most effective ways to keep your outside features and benefits and still needs
looking, to wanting the vehicle. Most sales sales team sharp is a weekly walk around to complete the selling of the product.
people want to talk price instead of selling competition. The walk around competition
the vehicle and themselves; this process starts with seven categories. In each of the 8. Justifying value.
cost you profits. Continuing training in categories, write down the features and Justifying value by showing the features and
this area is the key to developing a sales benefits to be shown by the sales person. the benefits of the vehicle will justify the
professional that will produce results from Write down a minimum of eight questions price of the vehicle. Building value builds
every prospect. for each category. Have the vehicle you are profits. The customer will be more inclined
going to use put in the showroom the day to pay a profit.
The major ingredients of a successful before, in case of bad weather. Make it fun,
presentation demonstration are as follows: get some poker chips to give to the sales The job description of the sales person
person who shows a feature with the benefit, is to demonstrate your product to every
1. Be conÞdent. the sales person with the most chips wins. prospect that enters your dealership, without
A sales person must believe in them self Have a prize or some type of a reward. exception. The goal of every dealership is
and the vehicles they sell. They must feel to demo 100 percent of the opportunities
that they have the best product in the market Category examples are safety, performance, provided by you and your advertising
to a point of exuberating excitement that utility, comfort, styling, competition, what’s dollars.
will spill over to the customer. To be ‘just new for 2004.
confident’ is not enough, you must sound The ROI will never be produced without the
and move with confidence. 5. Selling the sizzle. demo percentage. A sale is a reward of the
Zoom, zoom of Mazda is a good example of job that the sales person implements with
2. Motivate the customer. the sizzle. The sales person needs to speak every customer.
The presentation must be a motivating with a high pitch voice of excitement to fire
experience for the customer to decide to buy up the customer.
now. The speed of the sales person equals the
speed of the customer. 6. Controlling the presentation.
Controlling the customer is a challenge
3. New or used. for every sales person. The presentation
Building value in a new vehicle is easier than demonstration must have a process to follow
used because of the factory product material in order to gain control of the customer. The Terry L. Isaac is the Corporate Sales
and programs. The used car manager must time a sales person spends with the prospect Trainer for the Neil Huffman Auto Group.
take on the responsibility of teaching the gives the prospect and the sales person time He can be contacted at 866.265.4680, or
features and benefits of the used inventory. to establish common ground between them. by email at tisaac@autosuccess.biz.
10 visit us at www.autosuccess.biz
11. sales and training solution
SteveSteve Hiatt
By Hiatt
Individual Sales Coaching
Coaching a sales in. Write a script out or buy some from a no one fresh walks in, who will they sell
person is the fastest sales trainer and role play the call. Sales today? Give tips that can increase their
way to get a return people are often afraid to call because they productivity, so the day isn’t spent waiting
on your investment. don’t know what to say or how to say it. for something to happen.
The best way to
do that is through one-on-one meetings The goal of the call is to get the customer Remember to keep all sales people
between your managers and sales people. back in, and it needs to be practiced. Then accountable for whom they talked to, what
These meetings flush out extra car deals, listen in on the call the sales person makes happened, and having adequate contact
motivate and encourage your staff, and be prepared to give them positive information so they can follow up with
spotlight opportunities to improve skills, feedback. Tell them specifically what they anyone they haven’t sold.
create better work habits, and lessen did right, and then give them a tip on how
employee turnover. to improve a part of the call. Make time to hold individual coaching
sessions, have a plan for each one, make
Managers need to be coached on how to Be prepared to make the call to the adjustments for different personalities,
hold a positive and productive one-on- customer yourself, in front of the sales focus on improving their skills and habits,
one. For some managers the only one- person. As a manager, you automatically and, above all, find a deal. Those extra
on-ones they received may have been less add clout to the situation, and the deals build credibility with your team and
than motivational. customers will speak much more freely. make the next one-on-one a meeting that
(If you don’t have a call script for this, call your sales people will look forward to.
Realize that coaching people to success me and I will get you one.)
means you may have to do things that Steve Hiatt is the General Sales
are foreign to you. Managing against As you continue your coaching Manager of Hiatt Pontiac GMC, Hiatt
the mega-dealerships and low price opportunity, zero in on your sales persons Outlet and Hiatt of Auburn. He can be
advertising requires creative thinking. attitude. No one has one single attitude; contacted at 866.265.5616, or by email
people have thousands of attitudes toward at shiatt@autosuccess.biz.
Let’s examine a few ways to coach your thousands of things. Someone may have a
team to success, sales and income. great attitude about the game of football
but a lousy attitude about cottage cheese.
The number one goal of Find out about their attitudes that effect
a one-on-one is to Þnd a car deal. work. How do they feel about sales? How
Find a happy sales person and you find are they coping with rejection or even
one that is selling cars, find an unhappy success? Where is their confidence level at
sales person and you will find one that for taking walk-ins, prospecting or calling
isn’t. Most sales people think that they are sold customers? You may find you need
only having a one-on-one for two reasons: to suggest scripts to practice to improve a
they are going to get admonished, or the skill. It might help to suggest tapes or cds
manager is holding it to keep their boss to listen to in the car on the way to work
from chastising them. The way to get that are motivational to combat rejection.
around this is to help the sales person find It may be that you are just there to listen, Heard the buzz? Find out for yourself what it’s all about. CarChip
is “a useful tool for the professional,” says one service manager.
money. They will start to look forward to offer encouragement or provide that one “Technicians dealing with intermittent issues can program CarChip to
this type of coaching. little suggestion that makes the difference monitor suspect circuits, and then return the vehicle to the customer.”
with that next customer. It’s affordable, so there’s no need for large deposits. And once
your customers find out about it, they may very well want one for
When starting a one-on-one, let the sales themselves! Attractive packaging and full-color point-of-sale display
person know your goal is to help them One time during a one-on-one, I found help make the sale—adding to YOUR profits!
make money and that to do that you need that my sales person had a great closing Monitor any 4 out of 23 possible engine parameters including:
to see what prospects they have. The leads ratio on people demoed, but he hardly had • RPM & engine load • Fuel trim • Intake air temp
• Throttle position • Battery voltage • Intake manifold pressure
need to be organized in a prospect list, a any demos. We immediately role played • Fuel pressure • Timing advance • Air flow rate
monthly planning guide or floor log. Look the situation and found the ‘fatal flaw’ • Fuel system status • Coolant temp • Oxygen sensor voltage
into each prospect and ask questions: What that was preventing demos. Once we role Plus trouble codes, freeze-frame sensor readings, speed, distance,
happened? What were their hot buttons? played a new way, he sold seven cars in and accels & decels. Up to 300 hours of trip data—all for just $179!
Plugs instantly into OBDII port. Download to PC for
Did they drive? When was the last time the next 10 days. That is what individual detailed analysis and graphing.
you called them? What did you say? coaching is about. ner
Ask how YOU can become Win
d
eere
an authorized reseller! Engin duct
Bestew Pro
Next, work on their skills. The information The next step is to spotlight their work N
you just gained opens so many areas to habits. How can you help them make TM
™
AUS0310
work with your team. In order to get the their day more productive? For starters,
customer back in, the first skill is usually do they have a daily planner? Is it set Davis Instruments
the phone, especially outgoing calls. Focus at the beginning of their shift with a ‘to 3465 Diablo Ave, Hayward, CA 94545
866.297.3152 • www.carchip.com
with them on how to get the customer back do’ list for the day? Most importantly, if
december 2003 11
12. feature solution
Patrick Luck
By Patrick Luck
2004 eDealers of the Year
We are dedicating our December issue everything we spend. To give you an Their pricing: How do they handle pricing
to honor the top six eDealers of the year. example, our average cost per sale is $300 to ensure they get a fair gross profit?
Unlike other awards, the criterion for the with our traditional media, yet our cost per Their reporting: What do they measure to
‘eDealers of the Year’ award was based sale on the Internet is only $135 per sale.” ensure they are always improving?
solely on results. Results were measured
not only by Internet sales but also by how Before announcing the 2004 eDealer of the Where do you start?
well the dealers utilized the Internet and Year Awards, here are the criteria that was One thing became very clear about most
digital marketing to promote all of their used to determine the winners: of the best eDealers, they were committed
profit centers: new, used, F&I, service, from the very top, starting with the dealer
parts, etc. The goal was to find the dealers • Profit generated as a result of their and the general manager and throughout
who have utilized this marketing medium to Internet marketing to all profit centers. their organization. This is critical because
generate the most profit for their dealership. • New and used vehicle sales generated some dealers rely on one or two people
Performed research showed a lot about what as a result of their Internet marketing. that run their Internet Department to define
makes some dealers succeed in their attempt • F&I and sub prime profits generated. their entire strategy, and, in most cases,
to use the Web to increase their sales and • Service and parts business online. these people have a lot less automotive
service profits. In this article, the top six marketing experience than the dealer and
eDealers of the Year will be recognized, There are six awards for the six different their managers. A mistake some dealers
while identifying what they have done to categories of dealers based on how many make is that they think that their Internet
get the positive results that have made them roof tops, size, market, brands and the marketing strategy is all about technology,
the best in this field. percent of their sales that are generated by so they leave it up to their IT or Internet
their Internet marketing effort. Here are the Department. This is a marketing strategy
Before announcing the awards, let’s start winners of the 2004 eDealer of the Year that happens to use technology, but it is all
by looking at the landscape of the industry Award: about selling and servicing more vehicles
to reveal why the Internet has proven to
2004 eDealers of the Winners!
Congratulations, eDealer of the Year Award Year
have such a huge effect on how dealers do
business. Dealers are selling an additional
50-800 units every single month from
their Internet marketing strategy. Why is Dealership Location Website
the Internet such an influential marketing
force in the car business? Over 70 percent Herb Chambers Boston, MA www.HerbChambers.com
of customers who purchase a vehicle use Sheehy Virginia/DC www.Sheehy.com
the Web to research information before Red McCombs San Antonio, CA www.RedMcCombs.com
they buy. More people are influenced by Courtesy Chevrolet Phoenix, AZ www.HouseofCourtesy.com
the Internet before they buy than they are Tasca Providence, RI www.Tasca.com
influenced by other traditional marketing Dave Smith Motors Kellogg, ID www.DaveSmithMotors.com
mediums. Successful dealers are changing
parts of their marketing strategy to apply We have outlined exactly what these dealers profitably, and most dealers know a lot
more of their budget to digital marketing and other finalists are doing to use the more about that than the technology people
and the Internet where most prospects begin Internet and digital marketing to increase in their dealership. The best dealers begin
their buying experience. their sales and service profitability. Their by involving their management team in
best practices have been broken down into developing a clear strategy to reach their
“The math is compelling because 7 out of the following areas: goals, and they plan what they are going
10 customers use the Web before they buy to do to market their website, get the right
yet less than 3 out of every 10 use the paper Their vision and strategy. technology, people and process to ensure
or TV and radio, so we put our marketing Their technology: What technology they get the right results.
money where the majority of our customers generates revenue and what is
shop,” said Robert Revere, Courtesy unnecessary? The best automotive
Chevrolet, Phoenix AZ. “It has worked Their marketing: How do they use the Web dealer websites in the industry.
great, because our digital marketing has to attract customers to their dealership? If you have a great marketing strategy that
dramatically increased our foot, phone and Their process: How do they transform their attracts a lot of prospects to a bad website,
Internet traffic, and it is a lot less expensive opportunities into profitable sales? it could hurt a dealer’s business more than
than our traditional marketing mediums Their people: What type of people do they it helps. So the question is, “What makes a
and the best part is that we can measure recruit, hire, train and keep? great website?”
12 www.autosuccess.biz
13. top six edealer websites
Another online marketing strategy is www.HerbChambers.com
10 Keys to a direct email marketing. Dealers can send
successful automotive website: thousands of emails in one click, without the
Key #1 : Simple. cost of a stamp. The only challenge of email
Key #2 : Easy to use. marketing is gathering emails, but Tasca has
Key #3 : Provides customers with the done a great job with this by using a new
information they want. service that automatically crawls the Web to
Key #4 : Promotes all of the dealership gather your customers email addresses and
profit centers: new, used, F&I, service then they email the customer to ask them if
and parts. they want to ‘opt in’ to receive information
Key #5 : Never tells the customer you about new product and pricing information. www.Sheehy.com
do not have what they want.
Key #6 : Highly engaging and One strategy that has proven to be very
interactive multi-media (that works successful for Tasca has been the use of a
over low speed connection) new type of email marketing where they
Key #7 : Fast loading (if site has send multi-media ‘buzzmails’ that include
animation it needs to be compressed animation and sound that looks like a
for slow connections). television commercial in an email.
Key #8 : Site should build value in
your dealership, people and your “These buzzmails blow customers
products. away because they are like watching a
www.RedMcCombs.com
Key #9 : Site generates a lot of high commercial on our dealership, people and
quality leads for sales, F&I, sub prime, products, and the best part is that they are
service and parts compressed, so they work over a low speed
Key #10: Site is always updated, dial up connection,” Tasca said.
especially the specials (automatically
updating site is best). One of the buzzmails that Tasca uses is a
‘virtual test drive’. These test drives are
multi-media walk around presentations on
The most important characteristic a the unique features of the vehicles they sell.
successful website has is that it generates Tasca uses these virtual test drives to capture
measurable results. The best way to learn email addresses by offering showroom and www.HouseofCourtesy.com
about what makes a website great is to learn phone prospects a free virtual test drive,
from the dealers who are already getting and they automatically send all of their
great results from their website. To view the customers virtual test drives when they
award winning websites, refer to the third inquire on a vehicle via their website. In
column examples. addition to the virtual test drives, Tasca uses
hundreds of different buzzmails to promote
Build it, and they will come. Not. their dealership every month. These
The saying ‘build it and they will come’ is buzzmails include campaigns for every
not true with a dealer website. A dealer can month, season and typical campaigns like
have the best website, products and prices ‘Year End Clearance’, ‘Fourth of July Sale’,
www.Tasca.com
but if people do not know about it, it will ‘New Years Sale’, ‘Fresh Start Program’
not generate results. The best dealers market and others.
their own website. This starts by marketing
their website address in their traditional “I don’t really have to do anything more
marketing. The award-winning dealers are than pick who I want to email, pick the
very good at online marketing. They began campaign and then click ‘send’, so it is not
by buying the right website addresses and only a less expensive way to market but it is
optimizing their website to appear at the very easy and takes very little of my time,”
top of the search engines just like many of Tasca said.
the third-party lead providers are currently
doing in most markets. These dealers are The most important trend that was observed www.DaveSmithMotors.com
creating alliances with regional/local sites with the award winning eDealers is that
that direct customers to their website via they had a clearly defined strategy to attract
banners and links. customers to their website.
“When you go to our local newspapers A lot of leads + no process = no sales.
website, to their car section, www.projo.com, The 2004 eDealers of the year generate most
you will find a banner ad whenever you of their leads from their own dealer website,
research a make of vehicle we sell, and and they spend a lot less to get higher
this attracts a lot of traffic for us,” said Bob
Tasca III, Tasca Automotive. Continued on page 14
december 2003 13
14. continued
quality leads that close at 16 – 24 percent that builds value in the dealership, job description. For example, if you want
closing ratios. They have great processes people and product. to hire an Internet manager to manage a
for turning these leads into profitable sales. 8. Answer “Why should I buy from large department, they will need to have
These processes were discovered when you?” great leadership skills, people management
a company mystery shopped these sites 9. Positive and persistent follow up of skills, organizational skills, and they should
during the award evaluation process. In prospects who don’t respond. be able to execute the Internet sales process.
these mystery shops, many best practices, 10. Effective follow up process for Also, if you are recruiting an Internet sales
that make a real difference in website prospects who don’t set appointments, person you want to find someone with great
results, were found. don’t show and don’t buy. sales and phone skills.
Here are the best practices we learned from All of the award winners utilize a prospect The total package.
the award winning eDealers: management or CRM tool to help them If there is one thing you can learn from
manage all of their prospects. evaluating the best dealers in the country,
Top 10 process best practices. it is that one thing alone does not guarantee
1. Quick quality responses = Higher “The best part of our CRM tool is that it a dealer will get the best results. The
appointment percentage = Higher automates 90 percent of the email contact best dealers do a combination of things
closing ratios. process, so we can handle twice as many right which includes starting with the
2. Effective email templates for leads per person than we were able to right vision, strategy, people, process and
every scenario (price, trade, payments, handle before. This also gives our Internet technology. And in the end, the bottom line
availability, etc). team more time to sell cars rather than is execution, because all of the knowledge
3. Personal emails that compel the emailing customers back and forth.” Robert and technology in the world means nothing
customer to want to call the dealership. Revere, Courtesy Chevrolet, said. if a dealer does not take action. Now you
4. Great phone skills are the most have some practices that you can put into
important. The right people = the right results. action to improve your business.
5. Selling the appointment rather than At the center of the Internet sales process
selling the car on the phone. are the Internet managers and sales people.
6. Confirming appointments If you have the right people, you are more Patrick Luck is the Editor and Publisher
will double the show ratio of the likely going to get the right results. So what of AutoSuccess Magazine. He can be
appointments set. makes a good Internet manager or Internet contacted at 866.802.5603, or by email
7. Customer friendly sales process sales person? The answer depends on their at pat@autosuccess.biz.
14 contact us at www.autosuccess.biz
15. profit solution ADVERTISEMENT
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16. leadership solution
Patricia Patricia Gardner
By Gardner
Nine Steps to Building
Productive Sales People
Sales training 3. Take the load off. eliminate this competitive attitude, put
programs are the The sales manager should not have to the mentoring in the context of team
backbones of the do all the day-to-day sales training, and competition. “My trainee will beat
sales force. Without it shouldn’t all be done in a classroom. your trainee,” is a great way to transfer
a thorough program, That will take the enthusiasm out of your knowledge from mentor to mentee. This
your sales team will be unprepared, new hire. Training should be a company both motivates and teaches because sales
confused and unsuccessful. In order to effort where every department shares in people tend to begin sharing secrets they
maintain enthusiasm and motivation, the load. Let your sales team teach about would not normally have divulged. And
companies should have a formal your product. Let the service department the company is the big winner because
arrangement for every new hire. Here are explain the strengths and weaknesses they are growing their sales people
some tips for setting up a sales training of the product. Clarify the roles that are quickly.
program at your company: imperative to the success of a sales person
and make them available during training 7. Build tactical teams.
1. Expedite the paperwork. the first week they are onboard. Sales people shouldn’t be left alone to
Don’t waste your new sales person’s entire prosper; they should have support teams.
first day of work, send all of the paperwork 4. Sales person to sales person training. These teams are comprised of people who
to your new employee in advance before Let the other, more experienced sales help them get their job done, who work
they start, and let them complete it at people share in the training. They can help well together, are always helpful and
home. Many times, a spouse will need the new hire train on taking calls. It is also get things done quickly. Let your sales
to help fill them out; they have to make important to have them sit in on sales calls people pick their teams to make sure that
important decisions about medical, dental, with several different sales people to get the team works well together. Now your
401K and other benefits that they are better the sales pitch down during the first week. reps are ready to start making serious sales
prepared for at home. This information is presentations.
not confidential so sending it out early 5. Mentoring your way to success.
only helps you both save time and energy. Personalities are unique and different, so it 8. Create a 90-day action plan.
On their first day, they can turn in the is critical to let your new hires choose their Have your new hires put together a plan
paperwork and then get right to work. mentor. To ensure success for your sales for the first 90 days after they are hired.
people, pre-approve some experienced, Help them fine tune their ideas so that they
2. Make sales people qualified sales people and make sure meet the company’s needs, are properly
prove value from their very Þrst day. they are up to the task. Make it clear that prioritized, and set realistic goals.
Remember that every person brings all of mentors are chosen on the basis of their
their background to work. Start a contest skills and success. Or, give them monetary 9. Keeping track.
for new hires that utilizes who they know rewards. Mentoring should be a positive All new sales hires should learn what
for your company’s benefit. If they provide experience for both teacher and student. documents are needed to track their
a name and successfully close a deal with activities sales calls, demonstrations,
that contact, the new sales person should 6. Create a competitive proposals, commissions and forecasts.
be rewarded. Encourage them to step atmosphere for new hires to grow in. The first week they should start to utilize
outside of their job description and seize Many sales people worry about helping this practice. Someone should review their
every opportunity possible to benefit new hires because they make them first proposal prior to presentation to the
increased revenues for the company. look bad if they are very successful. To customer. Weekly sales conferences or
one-on-one meetings with their manager,
are essential for the new hire to get off the
ground very quickly.
These nine steps should help every
new hire get off to a great start. And,
AT T E N T I O N : your company will immediately have
productive members of the sales team.
•Automotive Dealers Keep their excitement and enthusiasm
high, and your sales team will really
•Ad Agencies succeed.
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Automotive Ad Planner Kit On Interactive CD-ROM
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(Limited Supply Offer) Patricia Gardner is the President of
Maximum Sales. She can be contacted
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pgardner@autosuccess.biz, or visit
www.maximumsales.com.
16 log on to www.autosuccess.biz
17. f&i solution
Frank Martin
By Frank Martin
Reduce Your Customers’ Anxiety
The sales person and can put more gross in the books. You work with someone they know, like and
has a process to have limited time to establish rapport trust.
follow and, when with a customer once they are in your
followed correctly, office, so start the process before they are Frank Martin is the CEO of F&I
will not only lead to seated in front of you. Bringing down the Solutions. He can be contacted
delivery but a satisfied customer, who will barriers first makes it easier to overcome at 866.247.9361, or by email at
visit the dealership for service, complete objections later. All people would rather fmartin@autosuccess.biz.
a favorable survey, send referral business
and return to purchase their next car.
Most surveys include all aspects of the
buying process, the financial transaction
is very important in retaining high CSI
scores. Here are some ways you can
assist your customers to overcome their
apprehensions before they are introduced
to the finance office.
One of the most effective ways of
heading off a customer’s apprehension
before finalizing their paperwork in the
business office is to take the time to meet
your prospective customers before they
meet you.
When deals are being worked on the
showroom floor, make yourself available
to meet your prospective customers.
Introduce yourself and offer to answer
any questions they might have regarding
financing. Make them feel welcome in
your store, and they will feel at home in
your environment.
If you find yourself backed up with
customers waiting to see you, take just a
few minutes to go out to the showroom
or the sales person’s office to introduce
yourself. Explain that you are in the
process of shopping the best financial
package available so that when they leave
in their new automobile, they will be
completely satisfied with their purchase,
as well as the terms of their finance
package.
Not only will these changes take the edge
off waiting and reduce their anxiety, it will
reflect a genuine concern for the interests
of your customers. This puts them at ease,
reduces some of the tension, and prepares
them for who they can expect to see when
they progress to the final paperwork in the
F&I office.
Following this advice makes a significant
difference in customer satisfaction scores
december 2003 17
18. sales and training solution
Mark Tewart
By Mark Tewart
Increase Sales By 25 Percent
All sales people Conditioning. was controlled by your subconscious
need to have a The US is the richest country in the world. mind. Can you see the conflict? Your
monthly sales goal Money is printed every day here. So in subconscious reacts to information and
for themselves. reality, what’s the difference between it emotions given to it without regard to your
They also need to growing on trees or on a printing press? goals. If not properly directed, negative
know how they arrived at that specific emotions limit actions, habits and results.
goal. Many times, these goals are based Circumstance. If rejection dominates your emotions, you
upon their past sales performance, but All people have negative experiences and have lost the war before the battles began.
past results may not be indicative of setbacks in their lives, these experiences
performance. can lead you to let circumstances limit What you can do to explode your results.
your beliefs about success or money. When First of all, you must change your
You can increase your sales by 25 percent you anchor your future to the past, that’s questions. Your life and your results are a
or more. Identify what causes mental exactly what you get. History is meant to direct reflection of the questions you ask
barriers that produce limited results and be a rudder not an anchor. yourself. Don’t ask what you want based
how to overcome them. Many barriers are upon what you have or what you have
caused by conditioning, circumstance and Emotions. done. Ask bigger and better questions.
emotions. Many people associate money Emotions are some of the most powerful Many trainers who teach goal setting say
with the following phrases: “Do you think sources of energy in nature. Negative to make your goals believable. All goals
money is grown on trees?” “Do you think emotions are also caused when your are simply choice. You can make almost
we are rich?” “You can’t afford that.” conscious mind and subconscious are in any goal believable if you change your
“Money is the root of all evil.” This is why conflict with one another. Example: If you questions.
many people have limited and negative set a goal to lose five pounds, it is done in
beliefs about money. your conscious mind. If later that day, you Use this exercise to help you get your
walk by a bakery and smell cookies and conscious and subconscious mind going
Examples of the three limiting factors are: walk in and eat a half-dozen, that action in the same direction. Write down your
goal in a positive present tense paragraph
without any limiting beliefs.
Example: I am happily and easily selling
20 cars or more a month without struggle
or conflict. My sales and other resources
are creating an abundance of money for
my family and me.
It’s easy to dismiss exercises like this.
However, one trait found among massively
successful people is their open-mindedness
in pursuit of success. Skeptics rarely are
successful, let alone happy people. Ask
yourself, “What have I got to lose?”
Three things determine your path in life:
philosophy, free will and choice. Your own
personal philosophy is determined by your
questions. Everything is determined by
your free will and choice. Ask the right
question, and they will lead to the right
thoughts. Have the right thoughts, and
they will create the right emotions. Feel
the right emotions, and they will lead to the
right actions. Take the right actions, and
they will create the right habits. Having
the right habits will create the right results.
Your results will form your destiny, and
yes, you can increase your sales by 25
percent or more.
Mark Tewart is the President of Tewart
Enterprises. He can be contacted
at 866.429.6844, or by email at
mtewart@autosuccess.biz.
18 stop by www.autosuccess.biz
