Posts Tagged ‘“Driving Sales”’

People Don’t Want to “Like” You

Tuesday, August 9th, 2011

You are a dealership. Most people don’t like the thought of visiting you. Through the years, a good majority of everyone who drives cars has had a frustrating experience at a dealership. Maybe not yours, but they’ve had a bad taste put in their mouths by others. They don’t want to be your friend, they just want to be serviced by you.

I don’t believe that in all of my (coughing) years I ever heard a normal person stand up for a car dealership’s reputation as another besmirches it in conversation. I’ve never heard “Hey! You leave XYZ Motors out of this. They are great people – the lot of them!” No. Doesn’t happen. When a dealers’ name is raked over the coals by an unhappy party, it is commonly accepted as unfortunate and realistic. So when you ask someone to “Like” you on FB, is it for reasons personally worthy to a customer?

My guess is, short of thinking they are going to win an iPad/TV or receive coupons for service, many could honestly go without seeing your customer reviews, pictures of happy customers, videos of salespeople, and alerts of the “big sale”. These things don’t carry much weight with most.

Try to tap into what people REALLY care about. Get your dealership involved in the community. Sponsor Little League teams, attend the Chamber of Commerce meetings to network, give to charities and participate in their local events, get involved in the local schools and help run food drives, car washes, etc. Give, give, and give to the philanthropies in your area.

Then… simply document (film, photograph, and blog) all of your involvements. Be a spectator to the events and video your participation. Those are the elements worthy of being shared socially. People don’t want to “Like” your dealership, but I guarantee you that someone in your community feels pretty strongly tied to things such as Breast Cancer Awareness events or the local Special Olympics. THOSE are organizations close to their heart. Your dealership likely will never be. However, if you can just tap into (and honestly serve) those entities that are meaningful to some, you will at least be in the right company. You will start feeling more goodwill toward you because you yourself have given something back.

I’ve accomplished a lot in automotive retail, but I am more proud of the hands I’ve shook and the smiles I’ve made happen when participating in local community events than any metric I’ve reached. If you want to make a difference and be “Like”able, then start by serving the community’s efforts before your own.



To Say the Lease

Tuesday, August 4th, 2009

(here is an article I wrote for the redesigned Driving Sales site regarding the rise and fall of automotive leasing in the car business and the faltering economy’s role in the strength of leasing programs.)

To Say the Lease -
We know the faltering economy is one of the many factors that brought vehicle leasing to a standstill.Nowadays, you have to be artistic to put an educated shopper into a lease because the dramatically lagging financial market has made it disadvantageous for them.

In years past, it wasn’t the troubling economy that slowed leasing, but the public’s negative perception about the programs.Leasing remained a very profitable way to put customers into a vehicle and, if handled correctly, see them again in a few short years.Truth be told, if the lease was structured correctly, it was a smart way for many consumers to drive a vehicle as well.Having spent some time in the finance office myself, I can say there is a reason that management and finance staff preferred to lease their vehicles too.Dealers did not do themselves any favors, though, when they took advantage of those payment buyers and converted them into unnecessarily long term leases.These were just some additional factors that made major manufacturers turn away leasing programs completely along with the declining residual values the banks were heaping upon trades.

With the government’s financial support (read: taxpayers), however, it looks as if we may all be back in the leasing business.General Motors and its financing affiliate GMAC just announced that they will be
entering the leasing market once again – tentatively scheduled for August 1st – after exactly one year away from the program.Ah, the perks of a bailout that totals over 60 billion between GM and GMAC when combined with their subsidiaries.The Toyotas, Fords, and Hondas of the world had pulled back from emphasizing those programs, but never left the field entirely.With an emphasis on leases, this could very well be a deciding factor in the re-growth of our industry by causing an all-important uptick in vehicle resale values and quicker inventory turn.

In no way will leasing get back to the greatness of yesteryear.Though it has the ability to remain profitable for dealers, it will be some time before it is a “best buy” for consumers.

If we want this rebirth of leasing initiatives to catch hold, we will have to do properly train both our sales AND management staff to understand the inner-workings of a lease (because I promise you, many do not know) and we will have to dedicate some of our e-marketing efforts to creating a pro-lease environment.From including lease payments once again in a showroom customer’s options to possibly having a lease matrix on your website alongside your payment calculator, there are a myriad of ways for dealers to incorporate leasing information into conversations with their consumers.

Once again, though, to see this new attention given to leasing pay off, your staff must stay knowledgeable and well-trained on the benefits of the program, not just for your dealership, but for the customer.



Advertising Inventory

Friday, July 17th, 2009

By no means am I going to detail the one thousand “best practices” for advertising a dealer’s inventory.  That would take two full days of typing and I simply don’t have it in me.  Actually, this is a question that I would like to pose to all of you DrivingSales readers out there.  You will see I discuss my beliefs, but I’d like to hear from you.

I was perusing my Saturday morning edition of the Chicago Tribune, checking out the car ads.  (Yes, I still get the newspaper, though I don’t know why considering I read the news online before ever opening up the printed papyrus.)  What caught my attention was not how many local dealers are still advertising in a dying medium (ridiculous), but how many dealers were actively promoting how large their inventory was of certain models.

The common practice of detailing how many vehicles you have in stock (by model) has been widely used for quite some time.  Not too long ago, when dealers could do no wrong, they had to sell themselves as the one-stop shop for every variation of car possible.  (Presenting yourself as a high-volume dealer can still be valuable).  Back then, a bad salesperson could fall out of bed and land on a customer willing to buy from them.

However, with the current economic downturn and fewer buyers in the market, my question is this…  do YOU still feel it is a good idea to display in your advertising how many of one certain model you have in stock?

Don’t get me wrong…for those sought-after vehicles (hybrids for instance), it is a benefit to let your customers know their is some semblance of a selection.  Nowadays, though, consumers already now we are struggling to move product – they hear about it and read about it daily.  Do you think it is wise to scream from the rooftops “We have 64 2008 Dodge Sprinters In Stock, On the Ground, Ready for Immediate Delivery!” – the actual quote from a local dealer.

Is that a selling point?!  In my opinion, and I may be wrong, promoting your glut of vehicles reminds the customer how desperate we are to move some cars.  ”Geez, Mary Ellen…why do you think they have seventy Ford Focus’ in stock?  Does no one want them?”  Or, do you believe detailing how many vehicles you have of a certain model may allow the shopper to negotiate with unrealistic numbers because our supply is so much greater than demand?

Let me know your thoughts on this.  I have my beliefs.  I think if you can let consumers know there is a selection to choose from, you are putting yourself in a better position to ask for gross, than if you are advertising yourself as a dealer drowning in 2008 Dodges.

Check out the blog I published on DrivingSales.com -
http://www.drivingsales.com/blog/joewebb/2009/07/17/advertising-inventory/



Don’t Have a Death Wish. Be Charles Bronson.

Tuesday, July 7th, 2009

There is the age-old saying that “you can’t believe everything you read”.  Well, that thought process has expanded.  With the glut of internet “consultants” in the game, I believe you must add “don’t listen to everything that is taught”.

There are two widely-held, overly-preached beliefs that can cause irreparable harm to your ecommerce objectives and bring about online irrelevance.    Dealers that adopt these incorrect ideas must have a death wish.  Instead, disregard these poorly-conceived trainings and stand strong – Charles Bronson-style.   Unfortunately, these are not “old-school” tactics that these “trainers” are teaching, but instead, they are new-school philosophies oversimplified.  I will detail these two bits of bad advice.  When an “expert” walks into your store spouting this nonsensical bologna, do yourself a favor and stick to your own beliefs…just like Charles Bronson.

First Commonly-Held Belief to Avoid – Dealers must go back to the basics regarding their internet initiatives.

 

“Back to the Basics” will kill any automotive dealership attempting to stay ahead.  There is no reason to scrap all efforts and begin again.  “Back to square one.”  I’ve heard dealer principals relent.  Where is ‘square one’ anyway?  Is it a city?  Is it a state of mind?  No…it’s the unemployment line.

Granted, you may need to bring aboard some refresher trainings to remind your staff of fundamentals, but far too often, dealers go back to the drawing board and “start fresh”.  In this difficult economic market, only the forward-thinking dealers are seeing vast improvement – and do you know the one thing they aren’t doing?  They aren’t starting over from scratch.  Even with potential flaws, they are moving forward, placing emphasis on their strengths and minimizing their weaknesses.  They are dedicating a greater portion of their advertising to digital efforts.  They are going to battle with the staff they have.  They are sticking with the solutions that have brought them “only this far”.

Any legitimate consultant will tell you that it is likely not the solutions or staff doing your dealership a disservice, but instead, how they are being utilized and managed.   Personnel and products seem to be the first on the chopping block when sales become stagnant.  Instead of going back to the beginning and bringing in all new CRMs, websites, staff, and strategy, it is much smarter and financially-viable to focus on using all of these resources to their greatest capacity.  Very few website providers or CRM solutions will tell you that their systems are being utilized to their fullest by dealers.  If they do tell you that, I would drop them because they probably offer far too few features to sustain economic growth for their dealer clients.

Don’t go back to the beginning.  If you are holding steady in this market, continue to dance with the people that brought you there.  It only takes a little dedication, perseverance, and time to weather the storm and come out looking sunny.

Second Commonly-Held Belief to Avoid – Internet buy-in should come from the top down.

This was very true four or five years ago, but times have changed drastically.  Not too long ago, some dealers were still wary to dedicate large portions of their ad budgets to advanced technologies and programs, but not any longer.  Now, a good majority of dealers have seen some success and growth from their digital marketing efforts and are looking to grow that area of their business.  Now, this philosophy has shifted.

If you want to push ahead and achieve online profitability, the internet buy-in must come from the bottom.  This is not to say that a sales staff is the “bottom” of the dealership environment.  They are the front-line of your store, but all too often, they do not have the decision-making power to change the culture of a dealership.  However, if an entire sales force was dedicated to improving online, then they will easily be able to elicit buy-in from the top.  No owner would turn away a crew that said “Golly jee, we’d really like to have some software that allowed us to reach our customers electronically on a massive scale using multi-media and enriched content.”  I think most owners would have a grabber (i.e. heart attack) if their staff actively sought more internet engagement with their customer base.

Obviously, dealers still must understand the online metrics that are to be tracked and attained. However, the only actionable buy-in needed from above is hiring candidates with an inclination to achieve internet connectivity.   With the right, forward-thinking, “connected” sales force in place, the culture of the dealership will naturally change for the better.

To that end, avoid listening to those so-called “auto consultants” who only teach the basics.  You are actively reading an online resource as we speak.  You are well-versed on the basics.  You don’t need to go backwards, but advance.  You mustn’t put the weight of your dealership’s virtual world on your own shoulders, but look to the stars in your sales staff to lead the way.

No more “back to the drawing boards”.  No more Saturday morning spiffs to reward mediocre internet results.  It is time to get away from the basics, push for progress, and be a Bronson.