Posts Tagged ‘auto sales’

Exercise Your Digital Muscles

Saturday, March 12th, 2011

The automotive dealership functions much the way the human body does.  Each department operates similar to an organ, controlling that given part of the dealer body.  When one fails, it affects the health of the entire system.   Every single employee, solution, and dollar spent must be cared for and maintained.  A dealer’s advertising efforts work much the way a person’s muscles do.  They strengthen the body and get the entire operation moving.  Stale advertising techniques and antiquated marketing tactics can cause a dealer’s sales to atrophy.  These advertising muscles must be exercised, not just when it’s nice outside, but during the slow, lean winter months as well.  Thank goodness for the incoming spring, but your efforts shouldn’t change.

When the economic crunch hit our industry two years ago, we saw many dealers revert back to the advertising methods of yesteryear.  No medium was left unturned (i.e. dug up from its grave).  Some dealers said to themselves (paraphrasing) “Hey, when we were at our best, we were in the newspaper every day, shooting out direct mail pieces monthly, we could be heard on the radio, and had TV spots.”  They cut budgets from each department and recreated their game plan from the mid 90’s.  Thankfully though, many dealers did the opposite.  They dedicated themselves strictly to internet initiatives, buying up leads, focusing on dominating the search engines, delved into social media (even if they didn’t understand it yet) and, in some cases, even overpaid for the newest and best buzzword solutions.  If it was online and quantifiable, they’d spend for it.  Heck, even if it wasn’t quantifiable, but it was online, they’d spend for it…much to their chagrin in some cases.  Few dealers have come out unscathed, but most that took the latter strategy seem to be, not just surviving, but thriving.  Dealers that attacked the online marketplace have been pushing forward.  Others waited to begin exercising their muscles until recently and realize their muscles have atrophied.  They are stuck on a treadmill, not going anywhere fast, just trying to keep their feet under them and stick with the pack.

As we all know, cold weather doesn’t always bring volume sales with it, but springtime is most certainly the best time to flex your digital muscles and try out some new strengthening programs.  During these last couple of months, our industry has been outperforming expectations.  (Our DealerKnows clients sure were doing that as well).  We, as an industry, have been moving units and trying to keep up with the basics of eCommerce:  Keep the website updated, inventory merchandised well, stay atop the search engines, play with social media, and handle leads/calls responsibly.  Well, we already know that we don’t always do these activities perfectly so I implore you to step outside your normal training regimen and focus on some new exercises.  These are the basics that help you strengthen your core.  The goal is to make sure you are properly maintaining your digital self by training on getting better at these basics.

As I sit here mid-March, having just returned from Dallas where I spoke on behalf of the Chrysler Southwest Business Center, with my Vice President, Bill Playford, in Austin for the SXSW Conference, I see some great things happening online. We all see Google changing their algorithms every week it seems.  Some changes are being made that will drastically affect how you are seen on the search engines.  Can I just say – Pay Attention to Your Google Maps and Google Places.  Start now.  Take the time while it is still a little cold outside (if you don’t live in the south) and flesh out your Google Accounts profile.  Explore those tools available to you.

As it is with all conditioning programs (so I’ve heard… I’m in no personal condition to talk exercise for real) that what you put into your body is just as important as the energy you put out.  As you prepare for the warmer months, look closely at the ingredients/vendors you are filling your diet with.  Are these really the right things to be consuming?  Were your eyes bigger than your wallet during the fall and winter months that you may have signed on for unsuccessful or underdeveloped programs/tools?   It might be time to trim a little of the fat out of your dealership diet and see if you can replace it with something organic… homegrown…. Do-it-yourself initiatives.  It’s the living room TaeBo work-out of in-dealership exercises.

Lastly, database marketing is well overlooked at most stores.  If your sales team is no longer busy brushing snow off cars or coffee-clutching, put them on the cycle and have them reach out to past customers.  If it takes you bringing in a new tool to data-mine your DMS, do it.  Auto dealers have endless opportunities for sales, service and parts if they only mined that gold that is sitting in their DMS. This is the Bowflex of internet opportunities.  A vendor and your staff must data mine for your loyal customers’ information, capture email addresses, utilize technology to review buying trends of the customers and develop targeted email campaigns to reach, convert, and attract those customers back into their store.  And beyond technology, just give them a call.  Wish them a ‘Happy St. Patrick’s Day’ personally.  That type of commitment to customer service goes a long way.

So if you are reading this and you realize the leads have remained a little stagnant from the slow winter months, less customers are walking in, and the phones aren’t ringing as abundantly, don’t sit back and wait.  Get up and exercise your digital muscles.  You may find yourself getting stronger during a time when you least expect it.  The digital cardio you perform now will allow you to keep you healthy and give you the energy to keep moving forward in the future.



Gridiron Greats

Tuesday, October 20th, 2009

It’s football season once again which means thousands of car
salespeople are thankful that their states have laws in place giving
them Sundays off from the store.

Many of us have a passion for football the same way we have a passion
for selling cars. We sit on our coaches in our living rooms
(showrooms) and play armchair quarterback. We call plays. We tell
the young folks how it used to be. What we would do different if we
were in charge…if we were throwing that pass….if that was OUR
customer.

Majority of sales people are the same. They prefer to sit on the
sidelines and talk about what went wrong rather than get on the field
and get their hands dirty. You need a strong sales manager (QB) to
lead the staff onto the field. The question for dealers is: Is it
best to employ a Game Manager or a Playmaker to your sales desk? NFL
teams live and die by the person (QB) leading their teams as does any
owner relying on a manager to bring the profit.

In my opinion, the “Playmaker” is the Sales Manager that can close
that
deal for the big hit. The huge profit. All of the coins. Mucho
gross. A “Playmaker” Sales Manager gets the biggest scores. At the
same time, they miss their targets quite often. Reaching for the big
deal often gets intercepted and they lose customers with their
arrogance. They can win huge games, but they can also throw away the
easy ones.

A “Game Manager” sales manager, on the other hand, still concerns
themselves with gross profit, but never makes the big hits. Their
front-end is a little lower and their back-end a little lighter.
However, their accuracy (read: closing ratio, if you are still with me
on this poor analogy) allows them to close more deals than the
“Playmaker” and the CSI is always higher.

It is the good old “gross vs. volume” debate. It is up to your Sales
Managers. The QBs of your showroom. Will they bring your players all
the way through a season/year with a winning record? Will they have
some amazing wins, but not make the playoffs? It is up to you when
hiring for Sales Manager to make that decision.

Categorize your Sales Management candidates and determine who you want
to play with. Who do you want to coach? Who will make the smart
decisions, not for their own interests, but for the store’s?

I may go against industry trends, but I’d call a timeout and bring in
a Game Manager for my staff.



Digital Dealer Conference Las Vegas General Session

Friday, April 24th, 2009


General session given by myself (Joe Webb), Gilbert Chavez, and Kim Clouse titled “Please, God…What Does It Take to Sell a Car?”. Filmed at the Mirage Hotel and Casino for spring conference – Digital Dealer Conference 6.



On Your Mark, Get Set, Go

Friday, December 5th, 2008
As most Internet Sales Professionals know, running an internet department is a race.It is a race to see who can respond to the customer the fastest, who can get them on the phone the quickest, and who can bring them into the store first.It is time for Internet Sales Departments to stop being a pit stop and information booth on the road to the sale, but the finish line.

 

Several improvements can be made to your dealership’s Internet department that will increase the closing ratio, volume of sales, and profits. You need the basics if you want to get a quick jump off the line.
Some of the necessities to run a profitable Internet department or BDC are:
Advanced, call-to-action email templates with a solid foundation and structure

An ongoing, detailed follow-up process that reaches the consumer over a long period of time

Successful phone scripts to prompt appointment-setting of internet shoppers and

Competitive pricing

With these (often-overlooked) fundamentals in place, dealers can get off on the right foot and compete with local dealers. However, without someone who has successfully created a department such as this before at the line, most dealers haven’t even strapped on their proverbial running shoes. Let’s face it. The starting gun has already fired and it is never easy playing catch up in a race. Everyone wants to be out in front.

Those dealers that are currently leading the way in online sales and profit realize the creation and management of Internet departments is not a race, but a marathon. Many of these dealers have already embraced live chat, video messaging, transparent pricing, online shopping carts, and specifically-trained internet specialists.

Forums available in the industry offer a wealth of information, but sometimes it takes a person “in-the-know” that will help you reach your stride. However, if your Internet sales efforts don’t get you off to a good start, you could be left in the dust by your competition.

Realize that you must train to run well. Whether it is a race or a marathon, consult others to increase your e-commerce and digital marketing profitability. Checking out this blog is similar to stretching your legs. Consulting a professional or dedicating yourself to the process as others have will get you into the race. Know, though, that while you can win or lose the race, there is no finish line. It all depends on how much you condition your dealership for online success.

 

On your mark, get set, go -

 

Joe Webb



The Lot

Wednesday, October 22nd, 2008

- Unfortunately, this video will show you just what customers’ expectations are when visiting auto dealers. DealerKnows can help put this horror story-stereotype behind you.



The Perfect Fit

Saturday, October 4th, 2008

Finding strong candidates for Internet Departments and Business Development Centers continues to be a challenge.It is a rare breed of person that can stay personally motivated sitting in front of a computer, expecting to hear ‘no’ over 80% of the time.What type of candidate is the perfect fit?

 

The perfect fit definitely depends on your process and their job responsibilities.Dealers must understand that a more researched and educated customer is showing up onto their floor.Not only do representatives of the BDC and Internet Dept need to be technologically savvy, but the general sales and leasing consultants do as well.If your Internet Sales Team is handling their leads and customers through the entire sale then you must only find a few strong candidates.If your Internet Sales Team is simply a customer’s first contact into the dealership sales funnel, then you must also focus on the continuous training and education of your sales staff.

 

There is a paradigm shift going on in the world and dealers must understand that it affects the way they go about their hiring process.The battle of old school versus new school is waging and sales tactics of the 70’s and 80’s (even early 90’s) are losing to newer, e-business initiatives.If you knew 90% of your customers were coming in after researching the internet, wouldn’t you want your entire staff to be just as studied?

 

Look at the difference between negotiating with a customer just 8 years ago compared to today.The only variable that seems to be changing the culture of car sales is the use of the internet and ease of obtaining information. That’s a big variable, but the same reason I am excited about this field.It will be forever evolving.The dealers that tag along with this change will lose business, but those that lead the way will gain market share.As a dealer, you must recognize this and focus all efforts on developing internet initiatives and shying away for old school methods to gain conquest business.

 

AT&T just announced that they are abandoning their phone booth business across the nation.It wasn’t too long ago that I remember fishing around in my jeans for change to use a pay phone.The cell phone industry has enhanced the way people communicate in a short period of time.The internet is much the same way.Customers are not just sitting at their desks emailing back and forth with dealers, but they are carrying their computers with them.Telecommunications as a whole will be evolving the internet department.Every ISM has received a response similar to

“What colors do you have in stock?John Carbuyersent via blackberry

 

Blackberries, IPhones, Smartphones, etc. all will affect the way the internet consultant interacts with the prospect.I can’t fathom how different Internet Departments will be functioning 8 years from now, but I am looking forward to it.

Technology is not just changing the customers’ car-buying processes, but making dealers reconsider the attributes they look for in a quality candidate.In regard to the Internet Department, I have found success hiring and training college graduates to handle inbound e-leads and phone calls.Having the determination and discipline to complete college seems to parlay well into handling the daily grind of internet sales.I call this monotonous multi-tasking.Anyone who has sit and handled hundreds upon hundreds of e-leads understands that finding a person with the commitment and skill set to succeed in this hectic, yet sedentary role is the real challenge.College graduates seem to adapt better since they are used to sitting in classrooms with similar work ethic.A degree is something I personally look for in a candidate.However, a determined applicant without a degree who exhibits perseverance, good business sense, and strong computer skills can still be good candidates.I want someone who can essentially learn through “internet osmosis”.Their knowledge and talent in the position will increase from simply being immersed in a successful Internet Department or BDC around their peers.

 

Though the oldest of individuals seem to be making their way online to shop for vehicles, the highest percentage of internet shoppers will always skew to the younger generation.Fill your Internet Department, BDC, and even showroom with this demographic and see the lines of communication open and the rapport-building flourish.

 

Finding the “write person” for the Internet Department is much like catching lightning in a bottle.Good candidates for this position don’t come around often.A dealer principle may have struck gold finding you, but they cannot always be relied upon to find another.I believe the best person for evaluating talent is the very same people that perform the daily duties in the department.If you are a General Manager, GSM, or Sales Manager, trust your Internet Sales Management team to determine the strongest person for the job.Quality ISMs will see the traits that make themselves successful in the right applicant.Who better to find the “perfect fit” than someone else who competently handles the very same responsibilities?

 

While this hiring practice may seem unconventional, it certainly is a new way to look at the evolution of the recruiting process.Be a forward-thinking dealer.Trust those that understand the technology to make the decisions regarding it. Allow successful ISMs and BDC reps to surround themselves with their own kind.We are a rare breed.

 

The world is continuously adapting to new technology and telecommunications.It is time for dealerships and, more importantly, their employees to do the same.