Posts Tagged ‘“internet sales training”’

Why Certified Pre-Owned is the Way to Go

Tuesday, July 21st, 2009

Having worked in the trenches of auto dealers, I would like to share with you what I told every pre-owned shopper that I’ve ever spoken to. “If I were going to purchase a pre-owned vehicle, I would make sure it is certified.”

This was not some salesperson’s ploy to charge customers more. Truth is, the cost of a certified vehicle opposed to a non-certified is not a significant difference, but there is the potential to be a major difference mechanically.

First, I think it is important to share with consumers the basics of certification-

Most certification programs come with multiple years (average of 7) and multiple miles (average of 100,000) of comprehensive coverage (from date of original ownership).

All certification programs require the vehicle to have passed a detailed, multi-point inspection to ensure all mechanical and electrical functions are in top shape.

Most certification programs require that the vehicle has passed a detailed vehicle history report with no damage beyond one panel.

Most certification programs carry with them a long-term Roadside assistance plan that is equal to the warranty.

Many certification programs offer special financing with their respective vehicles.

Now – What is the Benefit of Purchasing a Pre-Owned Certified Car or Truck as a Consumer?

Easy…peace of mind and protection. Once again, this is not a sales pitch, but from my time in dealerships, my loyal clients and I all found that a certified vehicle seemed to hold up better, be more reliable, and show up in service less than non-certified vehicles. (Now, please note – a vehicle can only be certified by its same brand new car dealer. Hence, a certified Honda can only be certified at a new car Honda dealership. New Toyota dealers can be the only ones to certify a Toyota. Etc.)

Just seeing the benefits/rules associated with most certified programs, you will see that the cost of ownership for a certified used car tends to be considerably less than most non-certified vehicles. And the added cost at the initial investment/purchase will rarely exceed the cost saved later from repairs. (Average cost to a dealer for certifying a vehicle is between $500 to $1,000).

What is the Benefit of Selling a Pre-Owned Certified Car or Truck as a Salesperson/Dealer?

Easy…peace of mind and protection. Same answer, isn’t that interesting? In my travels, I have always found that salespeople and service writers themselves feel much more secure offering a certified vehicle to consumers. In regard to sales staff, a certified vehicle does have a significant value over a non-certified vehicle and salespeople seem to be willing to ask for the extra money because of this obvious value. More money being asked, more gross profit.

Also, those dealers that actively register their certified used vehicles with the manufacturers regularly will tell you that it is often one of their strongest sources of OEM e-leads. Internet shoppers appear to actively search for certified vehicles from the manufacturer sites. The more selection you have of certified used vehicles from the factory site, the more likely you will be to accrue additional leads.

That being said, there are multiple reasons to buy and sell Certified Vehicles. I truly stand by my words when I educate customers of the importance of a certification program. Let it be known that I have assisted both family members and friends while buying cars and those that chose a ”used car” always ended up with a “certified” vehicle. I’d have it no other way…and neither should you.



Advertising On-Premise

Tuesday, June 30th, 2009

As we hear time and again, your website is your virtual showroom.As a forward-thinker, I’d like to go one step farther.I believe your showroom should be your second website.As a matter of fact, your entire dealership should double as another digital extension of your website and internet marketing efforts.How, you may ask?You can achieve this by infusing your store with the latest in technological solutions, digital signage.

Through digital signage platforms and interactive media screens, you can create your own in-house advertising network to deliver targeted messages to your customers.From experience, I know that dealers cannot guarantee a member of their sales staff is always sitting in the service waiting area, chatting up customers about the newest sales specials.It is impossible for a dealer to ensure the sales team is preparing customers for the many financial options that will be presented to them in the business office.Even in these economic times, dealer management often searches for a sales associate to assist a showroom up.Lastly, dealers cannot guarantee that the people walking in front of their showroom windows or driving by their storefront are being reached by their advertising efforts.Employing a digital signage solution gives dealers the ability to immerse their in-house (and out-front) customers with their own advertising and marketing messages.

Many say that a dealership’s most important commodity is their loyal customer base.If this is the case, you should not only attempt to retain those customers through email marketing while they are in the comforts of their own home, but you should be “selling” to them as they sit at the point of purchase.The Arbitron Retail Media study found that 65% of those that watched digital signage advertisements and in-house video agree that it would influence their decision when making a purchase.30% of consumers that have viewed retail videos have made an unplanned purchase based on the digital message.The potential revenue stream available by marketing to your current patrons must be considered and new avenues must be taken to tap into this all-important resource.

While this technology is just now beginning to pop up in the automotive marketplace, there are already some “Best Practices” to achieve.

Best Practice #1:If a customer is sitting in the service waiting room watching television while their vehicle is being dissected, why not use that very television to brand yourself?Digital signage networks allow you to display your logo, manufacturer incentives, dealership specials, in-house videos, dealer commercials, and digital ads to your customer while they are in your house and you have their undivided attention.Why not use the most popular medium available to engage your customers and cross-promote departments?

Best Practice #2 :D igital Signage allows you to educate your loyal customers (and your staff) on everything from new models, available inventory, discount pricing, vehicle features, parts specials, and service/maintenance offerings, and more.With the deployment of interactive touch screen kiosks in the showroom, dealers can engage customers with vehicle details while they wait to be assisted.

Best Practice #3:By displaying (more futuristic) media screens in the windows facing the street, dealers can literally change the face of their dealerships and broadcast digital messages, images.This can convert walk-bys to walk-ins and drive-bys to drive-ups.

Best Practice #4:Imagine filming your top salesperson giving a professional walk-around on your oldest vehicle in stock.Now imagine in mere seconds being able to upload and broadcast that video throughout your dealership (every three hours, two hours, 20 minutes).Lastly, imagine the service customer dreading the cost of work needed to be done on her/his vehicle and then viewing this engaging video.The potential for return on investment is endless for those dealerships interested in taking the next step from being a dealer with an Internet department to a true Internet dealer.

If you are dropping thousands upon thousands of dollars on the creation of television commercials, digital ads, or vehicle videos, don’t let them go to waste when they’ve run their course.You should broadcast them proudly through your own on-premise advertising platform.It not only gives you more “bang for your buck”, so to speak, but it will save printing costs as well.Customers are blind to the static billboards and banners that hang in dealer showrooms around the nation.However, to have moving flash video and automotive “infotainment” playing across your existing television screens will allow you to become your own profit center.

As ecommerce consultants, we consistently look for new ideas, processes, and tactics to bring our dealer clients into the 21st century and beyond.These innovative, technological solutions just beginning to appear in the automotive market must be considered for a myriad of reasons.While it may be forward-thinking, now more than ever, dealers must continue moving forward.



How to Choose the Best Vendor for You

Friday, June 5th, 2009

Here is my most recent Tip of the Week for AutoDealersBiz.com. These are some industry-best questions to ask when interviewing vendor candidates.

The “best vendor” phrase is completely subjective because every dealer has different needs. The best vendor, if there is such a thing, may not be the right vendor for your dealership.

However, interviewing and selecting the vendor that will help you achieve your goals is a science that dealers must master. At my former dealership, every single vendor with something to sell would have to go through me first.  I know that once the vendors met me, they weren’t happy with that structure because I understood how to properly interrogate them. Here is a li
 
 

 

 

st of some of the most important questions a dealer can ask to ensure they are dealing with a reputable company willing to meet the dealership’s needs more than their own.• How many dealers do you have nationwide?
• What local dealers use your solution?
• Do you feel another local dealer using you would have an adverse affect on the success (or effectiveness) of your solution/leads?
• Do you sell leads to my competition? (lead provider only)
• Where do you receive your leads from? In-house or external? Sites? (lead provider only)
• What are your terms? (Never agree to an auto-renew)
• Will you accept a month-to-month with 30 day notice of cancellation windows
• Will you promise in writing a “Guaranteed low price for market”? If another dealer signs with them at a lower price, they must adjust your monthly cost to match.
• What is the pricing? Look at hard cost (monthly fee x length of service + set up fees + training and support = $XXX product)
• Will you show a screenshot of your product? (Do not accept a power point or walk-through).
• Can I go see it live at another dealer?
• What are the set-up fees and support hours?
• How easy is it to change in the back-end? (Imperative for websites and online inventory management tools).
• Can I see a copy of the contract ahead of time and review it with our legal team? (Even if you don’t have a legal team).
• What type of initial and on-going training do you offer to ensure the success of your solution in my store?

Joe’s Favorite questions and talking points

• Tell me three things you wish your solution (lead provider/CRM/website/tool) offered.
• Which of your competitors’ solutions would you most like to sell? Why? – This is always hard for them to answer.
• Who’s considered the best in the industry? 99 out of 100 times, they will tell you they are. Bite your lip when you can’t believe the gall of them because your next question is…
• Who’s second best? –(my favorite question) I found my CRM by asking 10 other CRM companies this question. Eight said the same name. That’s who I went with.
• Tell me three things you like about your main competitor.
• Other than dealers that go out of business, why are you most commonly dropped as a solution?
By asking the right questions, you are preparing yourself for a long relationship with this vendor. I have several more, but these are the basics. Start out on the right foot by understanding their operations and knowing their faults. You will have to work just as hard as they are to improve your performance, regardless of the solution. It takes two to tango. A little interrogation from the outset goes a long way to making the choice of “best vendor”.

 

 

 
This weeks Tip is from Joe Webb of DealerKnows
 

 

 

 

This weeks Tip is from Joe Webb of DealerKnows
 
 

 

 

 



Dating, Marriage and Divorce

Saturday, October 4th, 2008

The Three Stages of every Vendor/Dealer Relationship

Are you happily married?To better yourself as a dealership, you must always keep a lookout for something better.Changes may need to be made.No relationship is perfect.To grow your business, you may need to break ties with the vendors you’ve been bonded with and see what better fit is out there.Dealers should always be looking for that someone special.

It was this time last year that I was at my very first Digital Dealer Conference.I’ve written about my experience in Vegas before and how beneficial it was to me and my career.I knew I had a supportive owner, a strong staff in my department, and a solid, progressive process.However, I knew that our marriage to my website provider and CRM vendor wasn’t perfect.As a dealer, I wasn’t getting what I needed to flourish.I set out in search of another partner to take their place.My vendors and I at the time had good relationships, but I knew my dealership deserved better.I quickly realized that just looking around to see what other vendors may be in the sea felt, oddly enough, like cheating.

Vendor and Dealer relationships closely resemble the familial relations people share at home.These take place in three, very common, stages:Dating, Marriage, and Divorce.One relationship must end for another to begin.Some dealers love being courted by vendors.Most prefer to have a happy marriage with a vendor.At some point in the relationship, though, someone might ask “Why am I still with this person?!”Eventually, this relationship will end in divorce.If you’ve experienced a break-up as a dealer, you know that one or both of the parties will end up longing for the other or bitter to the core.

Dating

It is necessary to have goals for your dealership.A vendor shouldn’t only meet your needs, but exceed your expectations.You must have specific wants and desires to be fulfilled.The Digital Dealer Conference, much like the NADA convention, is a bit of a meat market in dating terms.Vendors and Dealers slobber over each other showing off the newest technology, building value, and creating a need.As it is in the dating scene, everyone puts on airs for each other.You display only what makes you special and unique, keeping any and all skeletons in the closet.Vendors are only to present themselves in the best light.You must attract dealers to your product/service and sell yourself.Now, I am a dealer speaking on some vendors as I see them.Maybe I am off the mark, but experience tells me I’m closer to the bullseye than off the board.

If it had not been for a great lecture at the conference by Stephen Stauning, E-Commerce Director for the Asbury Automotive Group, detailing how to negotiate with vendors, I’d have been at a real loss during this search.However, I prepared myself with a significant amount of research and narrowed down the list of suitors.I decided to meet with nine CRM firms and six website providers.I didn’t request any to drive or fly in and visit the dealership to present their product, but I appreciated everyone that did.

This wasn’t speed-dating. This was courtship. Time was taken. We went on more than one in-store “dates” with a few of the candidates. We didn’t want to choose a “rebound” vendor.We wanted a match made in heaven.Budgets were checked and rechecked.I created a value-based analysis report between each comparable vendor and our own current vendor. I presented it to our ownership and we made our decision.We alerted the companies that did not make the cut.As I explained our reasoning, some were very gracious.Others were quite upset and rude.(I can’t imagine what that marriage might have been like.)It was then we gave our rose to…

Divorce

Yes, this is out of place.Before a successful marriage begins, you must end your current relationship.This is where it can get a little rough.Contracts must be reviewed.Cancellation letters need to be written.Crossovers of CRM and website tools are never easy. It is like asking a boyfriend or girlfriend to move out of your apartment as your new one stands in the doorway waiting to move their belongings in.Feelings are hurt.

We had good relationships with our vendors and wanted to remain “just friends”.However, the vendor’s job is to retain you as a partner.Costs are cut.At times, the new vendor may be talked negatively about to disparage their image.The vendor will often bring their “parents” into the dealership to show how much you mean to them.They offer to do more for you.“Things will change.”“It’ll be different this time, I promise.”If they are losing their grasp, threats may be made (yeah, it happened).Eventually, you will both go your separate ways.Time heals all wounds.Maybe we will revisit these vendors in the future and everything would go back to normal.Until then, we cannot think about the past.After all, we are married now.

Marriage

There is a honeymoon period.Every whim and desire of the dealer is handled promptly.In the beginning, visits to the dealership are frequent and daily calls are common.Everyone holds hands and loves each other.They are there to reassure you that you made the right decision.“You aren’t having second thoughts, are you?”Little problems may arise.Implementation can be a little bit of a headache.There is an adjustment period and you have to get used to living with someone new.Every relationship has minor arguments.That is to be expected.Even with all of the hard work, I will say I have no regrets.I am extremely happy with our decisions.Over the years, some of this love may fade.Only time will tell.

In the future, I will be smarter than I was.I wasn’t prepared for the amount of work that implementing both a CRM and a website at the same time would bring.It’s like dating two people at the same time.Not that you have to keep them hidden from each other, but you do have to spend a significant amount of time with both if you want your marriages to last.

I am confident that we have the made the right decision.Every dealer must endure the roller coaster ride that is the vendor and dealer relationship cycle.As a dealer you must choose wisely what vendor you get involved with.As a vendor, you should ensure the dealerships you work with are also, in turn, representing you and your product to the fullest.Everyone deserves that perfect somebody.Never stop looking, but always be thankful for what you have.If you feel the need, find someone new and throw yourself onto the market.Enjoy the conference and I wish you happily ever after.