At the 9th Digital Dealer Conference in Las Vegas, automotive ecommerce experts Joe Webb and Bill Playford will be debating the two ways eDealerships come into existence.
Posts Tagged ‘Digital Dealer’
Creation vs. Evolution – Joe Webb and Bill Playford
Wednesday, August 18th, 2010Mastering the Fine Art of Stick-to-it-ivness
Wednesday, June 23rd, 2010In my time, I’ve come across many great eCommerce minds working in dealerships across the country. A few are recognized for their gift and contribution. A good majority are unappreciated and overlooked. The rest, no matter how dedicated, work in dealerships with limited resources and management that might seem stuck in the last century. More than likely, if you are reading this, you fall into one of the latter categories.
My advice to you? Stick with it. You are not alone. All experts were once where you are today. Often you feel like, no matter how much you want to grow your knowledge or your store’s online presence, it will go unnoticed. In some cases, you may even have your hands tied from improving your dealership’s online profitability. I repeat myself. Stick with it.
Keep reading the blogs/forums/magazines/e-newsletters. If you must, pay your own way to a conference or seminar. Employ the strategies that you feel will be most effective, even if you haven’t been given the green light. (I’m not trying to get you in trouble, but you and I both know that your boss at the top doesn’t have the know-how to monitor your activity in the CRM so your results will be the only indicator that something is different. If you’re right, you win.)
Stick-to-it-ivness is an art. A fine art. It is the Mona Lisa of resilience. In this industry, as brain damage is thrust upon you and more work is laid in your lap than necessary, staying determined to improve yourself and your store is a tall order. We know how easy it would be to follow the orders from the top… phone it in, essentially. It would be easy to follow their antiquated orders on how to connect with internet customers. You could continue to hit mediocre metrics and be safe. The people in power and not “in-the-know” will let you do (what you know is) the wrong things. You can listen to their old-school demands, turn in an average performance and make them think you are doing your job.
Don’t. Fight the urge. Stick to growing. Stick to improving. Stick to experimenting. Stick to enhancing everything you do and then learning more.
It may put you in the sights of management, which can be an uncomfortable place to be, but if you are as passionate about this automotive Internet landscape as the rest of us, you’ll only end up happier by following the path to improvement. No matter if “the man” has got you down, I urge you to master the fine art of stick-to-it-ivness. It will define you.
The Dealer Internet Battle Plan promo
Tuesday, June 22nd, 2010
The Dealer Internet Battle Plan seminar in Atlantic City NJ is bringing together Jim Ziegler, Joe Webb, Tim Jennings and Ralph Paglia to give a once-in-a-lifetime workshop on the best practices of automotive internet marketing. It is not a joke… you must be thinking, ” Lego my leg… it’s to good to be true.” It IS true. Four of the top auto industry experts in sales, marketing, video, social media, and internet training joining forces on July 6-8th. Don’t miss out! And tell them Joe Webb, the Dealer Jedi, sent you.
The Dating Game
Wednesday, May 26th, 2010Here is my newest (somewhat) comedic video, The Dating Game. Created for the Lead to Appointment Show session at the 8th Digital Dealer Conference, it details how dealerships must put their best foot forward when managing a customer’s expectations before visiting instead of confirming their beliefs that they will be meeting with old school car folks.
Are Your Emails Being Tivo’d?
Friday, May 7th, 2010I bought a Tivo the very first month they were introduced in the market. I wanted to be a pioneer before an early adopter. I paid the $300+ one-time fee that was available to be granddaddied into the service for life. Shortly thereafter, they began charging a monthly subscription fee for those jumping on the bandwagon late – so I felt on top of the world for several years (until I switched over the a regular DVR). I haven’t watched commercials since. Never. I will pause a show, find something to do, and return just to fast forward it. I hate advertisements. Now stick with me here as I connect this, as per usual, in my stream of consciousness way.
Dealers ask me to mystery shop them frequently and give them my assessment of their email templates. Over time, I’ve found that dealers are pushing to be more progressive, more professional, in the emails they are sending out to customers.
In the past, emails were sent in plain text, easily read, the occasional spelling error mixed in. Then we began including banners of the dealerships for branding and pictures of the Internet Sales Managers thrown in for good measure. Today, templates have involved into flashy, overdesigned advertisements.
I understand why dealers have paid vendors for these jazzy versions of email responses. They want to appear to be as sophisticated to their consumers as possible and they’re looking for some conformity for all of their templates.
Maybe I’m old-fashioned, but I believe these glittery, some say garish, email template advertisements being sent out (being paid for) are getting your customers to fast forward, to Tivo, past your emails. I check email much the way everyone else does, and when I see a bright, shiny picture to review – or worse, click to “show images” – I click past. There is very little value to me in an email that appears to be nothing more than a template advertisement. It is just like a commercial in need of skipping.
There are some consumers out there, I could imagine, that prefer these snazzy, ostentatious emails, but to most who take the time to submit an inquiry, they want a proper, personal email back. They don’t want something that looks as if it is an automated, showy response that is all glitz, no guts.
This is the same reason why some CRMs allow dealers to decide if they want their emails to be sent in html or plain text format. The same reason other CRMs let the dealers decide if they want to include the “opt-out” message or not to their automated templates.
Don’t get me wrong. I actively train to send dynamic video messages, include fun, personal pictures in the emails, and well-created e-Brochures. However, I also request that there are a variety of templates being sent. Specifically, in the initial emails sent, it is important they get through spam filters which is why a plain text email works best. It also seems that a customer would be more willing to read something being sent from a person than a computer system. (And I won’t even delve into the content being sent – which is just as important.)
So put yourself in your customers’ shoes. Sit in their living room and flip open the laptop. Mystery shop yourself and determine if your emails are coming across as emails or getting fast-forwarded like commercials. Do the templates look like the normal spam emails you receive and automatically delete? If so, change the design of what you’re emailing. Don’t let your prospects Tivo past the value propositions you are sending.
Stop the Clock (Joe Webb)
Thursday, April 29th, 2010
How important is response time when handling leads? Not very, if you check out this comedic video about automotive internet sales by Joe Webb of DealerKnows Consulting. Spend the time to respond with quality content if your goal is to elicit a reply from them.
Act As If (You Own the Joint)
Tuesday, September 15th, 2009A great sales manager and friend of mine always said, “It’s all about perception.” How the Internet shopper perceives you and your role in the store will affect whether they visit your dealership or not.
A title is important. While many dealerships are hesitant to throw around manager titles, it is imperative the individuals in the Internet department refer to themselves as Internet sales managers (ISM). Whether or not an employee has been officially given the title or not, they need to communicate with the automotive Internet users (AIU – a new term for Internet shoppers I picked up at a seminar) as a person with manager status.
Anyone who has sold cars knows that the position of manager carries with it the air of authority. Customers often want to work directly with a manager. It makes them feel more important as if they are dealing with a true decision-maker for the store. I often laugh at this because it is quite possibly the worst way to buy a car. I tell friends and family that, when shopping for a new vehicle, always try to work with the person who seems the most new to the business. Those people care more about getting another unit sold rather than focusing on profit. On the other side of the spectrum, a manager’s main focus is on profit. A person is promoted to manager when they are successful at selling consistently at high gross. Why a customer wants to immediately work with the person (manager) who is most adept at making maximum profit, I’ll never know.
The automotive Internet user is different. As I’ve said in countless past articles, the AIU feels they are entitled to better care than that offered to them by an everyday salesperson. They need to feel as if they are dealing with someone who has the power to make significant decisions regarding price and payment. The AIU wants to know they are talking to a manager. If your Internet employees have the official title of “Internet sales consultant”, “Internet sales coordinator” or any variation in between, encourage them to refer to themselves as “manager” in all e-mail, phone, and face-to-face communications with the AIU. While the role and responsibility for your employee won’t change, the perception of the customer and the mindset of the employee will.
When I began in automotive sales, my title was sales consultant. In a perfect world, our sales staff would consult the customer, but today they act more like sales clerks. However, I encourage my sales staff to stretch the limitations of their titles. ‘Sales associate’ holds no weight with a customer. ‘Sales professional’ does, though, as does ‘certified sales professional’ or ‘senior certified sales and leasing specialist’. Since roughly 90 percent of customers are shopping the Internet prior to visiting to dealership, I wouldn’t even mind if sales consultants referred to themselves as ‘Internet specialists’ (provided they did know how to navigate the web and were familiar with the popular automotive sites). It allows the customers to believe they are dealing with an individual who has attained a higher designation from the dealership, and therefore is more important.
In my Internet department, however, I prefer my Internet sales coordinators to refer to themselves as ‘Internet sales managers’. The AIU doesn’t want to think just anyone is responding to their e-mails. They want someone with clout to handle their transaction because they are special. A little hint for those who don’t know: All Internet shoppers believe they are special. That is why, when they show up unannounced, you are expected to recall their name, their vehicle of interest, and all communication you’ve shared. Even though they need to carry the information into the store with them inside a manila folder tucked under their arm, you should know who they are. It is not like you have 250 others you are conversing with. They are the special ones. (Notice any sarcasm there?) The truth is, though, if they are in the store at that very moment, you should treat them as if they are the most important. The title of manager will carry with it a little more authority, allowing you to stand your ground on topics such as price, payment, and trade as well as make the customers feel they are more important than the average walk-in.
Working with an AIU is a little like the early stages of dating. If you present yourself as a servant/lower-class citizen to your potential girlfriend or boyfriend, it’s over before it begins. Men and women want to be with someone that they look up to and are willing to fight for. The same holds true for car shoppers. No consumers look up to sales clerks. People want to interact with their equals. Referring to yourself as a manager to a customer (provided you act accordingly) makes you an equal.
If you are an owner or GM, allow your staff to present themselves with a title of authority. Let them put it on their business cards if they ask. The pay plan dictates their pay, not their business cards, so you have nothing to worry about.
If you are an Internet sales specialist or a similarly titled position, just go ahead and try using a manager title in your e-mail signature. You will begin receiving more favorable responses. Some of these responses may actually ask more detailed questions, requiring decisions out of your pay grade. That’s fine. It opens the door to building credibility and rapport with the AIU and the medium of e-mail always gives you time to find out the answer from the powers that be.
Simply having the title of manager alone won’t even the playing field with your customers. You must act as if you are a manager. You must be as responsible and professional as your management staff. You must be courteous and respectful to the AIU’s wishes. You must position yourself as a customer’s solution.
It is not the title that makes the manager, but the actions. Even if you are not, act as if you are in charge. Act as if you have been doing this for 100 years and you are the best at it. Act as if you are the only person that can help them through their shopping ordeal. If customers perceive you are a person of power and influence in the dealership, they will have confidence in you and everything you say. If this newfound confidence breeds more sales, act as if you own the joint.
ECommerce Uses for Old School Tactics
Friday, May 15th, 2009I believe I am fortunate for having spent time in dealerships that were littered with “characters” and old-school, stereotypical car sales folks. It definitely opened my eyes to the full-spectrum of sales strategies employed by others and also taught me how negative perceptions of our industry were created. That being said, having seen and been taught some of these tricks has allowed me to expand my repertoire for online tactics. The oldest, meanest of car sales tricks have some useful applications within the internet sales realm, good and bad.
Disclaimer: The views, tricks, observations, and opinions in this article are mine and should not necessarily reflect the official policies and beliefs of this magazine. (I don’t want anyone else to get in trouble but me.)
Up Systems
- Old school: Rules of most dealerships were set. The first salesperson in the dealership every morning took the first customer. The order you came in was the order you took your dealership’s ups. A simple round robin system was employed after that. If you were the fourth salesperson to walk in that day and there were only three customers, you didn’t speak to anyone.
- New school: Internet leads should be set round robin as well, but dealers should use the CRMs that allow an automatic transfer of a lead if it hasn’t been answered within a specific time. That way, the e-prospect is answered quicker by someone available rather than waiting on the ISM they were originally assigned to. It is no longer about fairness for the sales crew, but what is convenient for the prospect.
The Bait and Switch
- Old school: Advertise your cheapest, stripped down, bare-bones new car for an amazingly lowball price (or your rattiest beater on your used lot) to lure customers into the dealership and, once they see how miserable that particular offering is, you switch them into another vehicle.
- New school: A similar, but acceptable bait and switch tactic you can employ online is by offering the prospect several different options of vehicles – with one being “models start as low as”. It may be misrepresenting what the customer actually wants, but since it is just one option you provide out of many, it is allowed. While they still have the price of the vehicle they inquired about, it is the lower number that will stick in their head.
Playing Keepaway
- Old school: When a showroom customer wanted to leave before the purchase because they were unhappy with the figures/numbers, the salesperson would say they’ve misplaced their keys. This would keep the customer there and allow for more time to make the deal. If the used car manager was approached, they would appear scattershot and act as if they were looking for the keys (that they had in their pocket.)
- New school: In today’s market, ISMs mistakenly attempt to keep information away from customers, hoping that their interest in the vehicle will outweigh their displeasure with the lack of transparency. This is still an unrealistic tactic with dangerous implications. There is no way to play “keepaway” with information regarding an internet customer and come out unscathed.
The Evil ‘attaboy
- Old school: Salespeople used to offer gifts (oil changes, tube of touch-up paint) if their customers would bring their CSI surveys back into the store after the sale. This way, the dealer’s staff could fill it out for them and pump up their numbers.
- New school: Since coaching is forbidden and you cannot directly tell a customer how to fill out their survey, new tactics have been invented. (I invented this, actually, so I don’t believe it is widely used by any means.) This occurs after a deal is completed, while the customer is speaking to his/her sales rep and waiting to enter finance. Have a manager walk over and speak to the salesperson directly. “Hey John, you just got in another survey – all excellent – 100% across the board again. Great job. Keep it up.” It doesn’t even have to be true, but since it is said to the salesperson and not the customer (but within earshot), my belief is it passes the “coaching” rules. (I never asked an OEM so I am out on a limb here.) The benefit is that a customer sees what a positive survey can do for a rep and also likes to be involved with a dealership that promotes positive reinforcement.
The Columbo
- Old school: Just when a customer was walking away because they couldn’t agree on numbers with management , the manager would pull a “Columbo” and remember one more trick to try or question to ask. Often, they’d make the salesperson run out and knock on the customer’s window as they were about to drive away to give it their one last shot.
- New school: The Columbo can be used effectively in two different ways within the internet lead process. The first way, and most simple to create, is the use of a pop-under coupon/certificate. After a customer has visited your site and they are closing out of their browsers, there is just one more little attempt for you to lure them back. Whether it is an additional discount toward a vehicle or a promotion to receive something free for inputting their information, it is one more way to grab them.
The second way a Columbo is effectively deployed is by having an email message(preferably a video message) from the owner/GM with a personal touch. It should let the customer know that the primary decision-maker in the place understands they submitted a lead a little while back. Not only does the message offer to answer any newly discovered questions, but it should offer a specific value just for mentioning that particular video. It makes the customer feel that they have a connection directly to the top.
The Ladder
- Old school: As a customer agrees to a deal, the salesperson is told by the manager to put them on the ladder. The salesperson then has to go back and apologize that they forgot about an extra feature/accessory on the car and it will cost the customer a couple hundred more. The customers usually relent. Then, later, they say they’ve reviewed their credit and it won’t be the payment they expected because the higher rate raises the monthly expense another $20 or so a month. Each time you speak to them, you put them on the proverbial “ladder” taking them higher and higher.
- New school: This also is used two ways in Internet sales, but I don’t approve of either. One way to put an internet customer on the ladder is by sending them a quote on the vehicle they desired, minus one option – or telling them their vehicle is in stock, but not telling them your in-stock model also has a sunroof for instance. You get them in and hope to sell them on the feature, putting them on the ladder. The other way to put a customer on the ladder is by saying “plus fees”. The customer expects the fees to just be taxes, but is asked just prior to signing “how do you want to come up with the destination fee/internet negotiation fee/etc”. They’ve spent time with you and are invested in the sale and the car. They will usually pay a portion of the fee – bringing in more profit on the deal. Either of these tactics will give your dealership a bad reputation in my opinion.
The Time Bomb
- Old school: When a customer is about to leave before purchasing a specific car, the salesperson tells them it will not be available if they walk out. Whether it is a Today Only Price or that another customer is coming to pick it up or that it is being transferred to a “sister store”, it won’t be here when they get back. It attempts to force a decision.
- New school: When emailing a prospect an internet price, ISMs can attach a statement saying that the internet pricing changes every month and offers the prospect a “good until date”. Then, toward month’s end, it gives the ISM the ability to call/email and ask if they haven’t yet purchased, would they like a new, updated quote when the pricing changes. The same can be done for incentives. This is a tactic to have a specific reason for the dealer’s follow up with the e-lead.
Even with the industry turning online, there are still lessons to be learned from our predecessors. Whether right or wrong, these old school tactics do have new applications in today’s online market. The newest performers in our dealerships can still benefit by having a few tricks up their sleeves.
Auto Financing “Blues Brothers-style” for Digital Dealer
Sunday, May 10th, 2009Ralph Ebersole of Cars.com and I, Joe Webb of DealerKnows, recreated famous scenes from the Blues Brothers movie for the recent Digital Dealer conference presentation. This is a send-up of the shady ways dealers would fool unsuspecting banks into financing customers back in the 70’s. Filmed by Dave Hudson of D. Hudson Productions – best filmmaker in Chicago and its suburbs