eCRM Chevrolet Dealer Of Year

January 2007

Happy New Year

• F&I Training

• Sales Training

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• Sales Management Training

• Legal Seminars

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“ It is sure to make myself and mydealership more gross and retainhigh CSI and customer loyalty.”– Knapp Chevrolet

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Visit us at the NADA Convention in February – Booth 5630

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By Design or DefaultCustomer Pay Labor and Parts Profit Training

Targeted Web Video and Your Ad Strategy, Part 1

eCRM Dealers of the Year

What Have We Done to Our Sales People

Kings ToyotaThe Biggest Showroom in the Universe

Stop Negotiating in the Business Office

Customer Segmentation:Increasing Retention and Profitability

Getting a Head Start:Planning Your Direct Mail Marketing for the New Year

How to Start Off Winning

Key Performance Indicators, Part 5

Brand Yourself

Never Ask a Question If You Don’t Already Know the Answer

Arouse Emotion, Don’t Sell Logic

Personal Development is Personal,and Commitment is Key

Sell Whatcha’ Got

MelissaRimoldi

JeffMorrill

BrianTracy

PatrickLuck

DavidKain

DeliaPassi

RichardLibin

DavidThomas

JimYoung

JesseBiter

SteveLaPenta

PhilSura

PatrickLuck

HeatherConary

DixonJudd

God is the source of all supply

EricMélon

AlanRamTraining Essential to Telephone Success

The Art of Recruiting

MichaelYork

A New Year’s Resolution:Break Up Your Unplowed Ground

TonyDupaquier

James 4:10Humble yourselves in the sight of the Lord, and He shall lift you up.

Courtney Paris, Sales-improvement Strategist [email protected]

Brian Ankney, Sales-improvement [email protected]

Brian Balash, Sales-improvement [email protected]

Toni Stephens, Sales-improvement [email protected]

Cori Frye, Sales-improvement [email protected]

3411 Pinnacle Gardens DriveLouisville, Kentucky 40245

toll free: 877.818.6620 facsimile: 502.588.3170 web: www.SellingSuccessOnline.com

Patrick Luck, Editor & [email protected] Susan Givens, Vice [email protected] Thomas Williams, Creative [email protected] Dave Davis, Creative Strategist & [email protected]

helping to promote...

Increase Your Online Profits by Rewriting Your Used Car Manager’s Job Description

TomHopkins

Continuous Learning

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Car Sales 101: A Case Study MarkTewart

Six Steps to a Great Presentation at Your Next Meeting, Part 1 PattiWood

Four Pillars of Prospecting DirkZeller

Our staff at AutoSuccessis dedicated to address-ing the specifi c needs of new car and light truck dealerships by providing cutting-edge, solution-based resolu-tions to aid dealers in becoming more suc-cessful, and ultimately to establish the results

they desire: increased profi ts. In the process of providing research-based innovative solutions, the AutoSuccess team incorporates the input of hundreds of dealers nationwide.

In an effort to recognize the outstanding digital marketing initiatives and campaigns among the nation’s most successful dealers, AutoSuccess honors those dealers who have effectively lev-eraged the power of the Internet and CRM to harness substantial results. What our research has shown is that the nation’s top performing dealers are harnessing their knowledge, experi-ence and resources toward this marketing phe-

nomenon. This revolutionary medium has en-abled dealerships to generate substantial returns on their investment by utilizing the innovation of the Internet and CRM to promote all profi t centers within their dealership – from new and used sales, to F&I, to parts and service.

Dealers are spending more and more money on mass advertising that has increased in cost and decreased in effectiveness. The most frustrat-ing part of this equation is that dealers cannot measure the return on their advertising invest-ment. That is why many successful dealers are shifting their ad spending from mass advertis-ing to targeted digital marketing that has a bet-ter return and is more measurable.

Another trend that has infl uenced dealer ad-vertising is the infl uence the Internet is having on how customers are beginning their buying process. Statistics consistently show a grow-ing increase in the number of customers who have used the Web to research information at some point during the process of purchasing a vehicle. CSI surveys reveal that these custom-

ers know and expect more from their dealers than ever before.

Therein lays the challenge and the opportuni-ty. Smart dealers are meeting and exceeding these customers’ expectations. Top perform-ing dealers have used the Internet to increase their retail sales by 20 to 25 percent and to improve the profi tability of their F&I, Service and Parts Departments as well. Although dif-ferent dealers’ strategies vary, there are some essential elements that most successful dealers possess. AutoSuccess looks for the following fi ve key elements to determine the winners of the eCRM Dealers of the Year Awards:

• WELL-DEFINED STRATEGY: A detailed marketing plan with clear objectives to attract traffi c to their site, phones and showroom.• HIGH-IMPACT WEB SITE: A customer-friendly site that is innovative, engaging and informative, and that promotes all profi t cen-ters of the dealership.• POWERFUL CRM TOOL: A fully au-tomated prospect management tool that will manage and measure all of their leads and drive quality traffi c to the phones and showroom.• INNOVATIVE MARKETING: Effective media-enriched e-mails and phone scripts to contact prospects.• PEOPLE & PROCESS: Well trained and dedicated Internet specialists to sell appoint-ments and well-equipped sales consultants to build value in the dealership and the vehicle.• PRECISION MEASUREMENT & TRACKING: Measurable results and auto-mated reports to track metrics in order to con-tinually refi ne processes and improve results.

Winning entries tell a great story of marketing challenges, demonstrate excellence in market-ing strategy and objectives, show measurable results and describe the unique lessons learned from their marketing campaign or program. The end result is a smarter marketing strategy that uses intelligent digital marketing tools and training to sell more cars for less cost.

by Patrick Luck

• Tasca.com

• Walser.com

• Sheehy.com

• RickCase.com

• RedMcCombs.com

• ParagonHonda.com

• HerbChambers.com

• HouseofCourtesy.com

• DaveSmithMotors.com

• HarveyAutos.com

10

What better way for one

of the nation’s fast-

est growing dealers

to spend his spare

time than behind

the wheel of a modi-

fi ed ’07 Shelby Mus-

tang making 3,500

hp and accelerating

to 210 mph in just

3.7 seconds! That’s

no ordinary car; it’s a

National Hot Rod As-

sociation Top Alcohol

Funny Car piloted

by Bob Tasca III.

Likewise, Tasca Automotive Group is no ordi-

nary dealership. The Tasca Group has grown

from a small one-rooftop store to a multi-fran-

chise auto group in the New England area.

Tasca Automotive Group is now operated by

third generation Tasca family members led by

auto enthusiast/pilot Bob Tasca III. Their con-

tinued growth and success can be attributed to

the “Tasca Way” of doing business which fo-

cuses on customer satisfaction.

The scope of Customer Relation Management

has evolved into more than just the face to face

encounter on the showroom fl oor. Through the

power of the Internet and digital marketing,

fully automated CRM tools are providing the

opportunity for today’s successful dealerships

to take customer satisfaction to a new level.

Not only are the Tasca Customer Satisfaction

Indexes among the highest in the nation, the

technology of their automated CRM tools have

been instrumental in increasing online sales

by more than 84 units per month. “Our online

presence is a whole new way to communicate

with our client base. Our philosophy at this

dealership for more than 20 years has been to

rely on repeat and referral business, and our

CRM provides a better way to serve our cus-

tomers,” explains Bob. “Here’s what an effec-

tive CRM tool should provide:”

1. Customized marketing lists for targeted prospects2. Media enriched customized bulk e-mail campaigns3. Automated delivery of graphic and multime-dia digital presentations via e-mail4. Integration of optional promotional and cus-tom features5. Management of calls, appointments and pro-cesses

6. Automated and measurable results

More and more successful dealerships are us-ing the Internet to communicate with their cus-tomers because it is effective, convenient and inexpensive. “Our customers love our buzz-mails,” adds Bob, “These customized, multi-media mini-commercials are loaded with inter-active features that keep the customer engaged while obtaining the information they are seek-

ing. When it comes down to it, whatever we’re

doing is working!”

Tasca Auto GroupAccelerating from eCRM to eSatisfaction with 63% Customer Loyalty

THE BOTTOM LINE

• Tasca.com awarded E-Dealer Of The Year three consecutive years.

• Tasca is the largest Ford Motor Company dealer in New England.

• Tasca has partnered with BZ Results to make the shift to digital marketing and to sell an additional 80 + units per month.

• Tasca’s customer loyalty rating is above 63 percent and their CSI is among the highest in the nation.

• Tasca uses automated CRM technology to improve customer service.

• Tasca Auto Group thrives on repeat and referral business.

“Our Digital Marketing System turns traffi c into leads while pro-viding the kind of online experience that fi ts with the Tasca Way.”- Bob Tasca III

11

Walser Automotive has

joined the revolu-

tion, implement-

ing a centralized

eStrategy in 12

franchises. Estab-

lished in 1956,

Walser Automotive

has grown into a

network of top qual-

ity dealerships across

Minnesota who are

committed to offering

the best service in

the industry. What

makes the Walser Group unique is their “ne-

gotiation-free” philosophy, which they call

the “Walser Way.”

Walser Automotive has a fundamentally dif-

ferent approach to the car buying experience.

The core principle of the Walser Way is to

give the absolute lowest price up front – no

negotiating, no waiting. The same policy ap-

plies to every new and pre-owned vehicle.

The Walser Way empowers the customer and

associate by giving them both the sovereign

control to make the deal. It is up-front. It is

honest. And it is simple. Everyone pays the

same low price…fast, fair and easy.

Walser Automotive knows the importance

of having the right people and the right pro-

cess in place. Since implementing a new

Digital Marketing Strategy within the last

year, owner Andrew Walser explains, “The

greatest accomplishment since hiring our

new Digital Marketing Consultant is that we

have centralized a consistent process in all

of our 12 franchises. We understand the im-

portance of process and execution, and as a

result have built a great foundation in terms

of percentages and closing ratios. Currently

we are setting appointments on 32 percent of

our leads with an 80 percent show up rate.

That’s generating a 15-17 percent conver-

sion ratio on our total leads. We even have a

couple of stores in the mid 20s! That’s quite

a bit higher than the national average of 5

percent.”

Without the right people and the right pro-

cesses in place, the greatest technology in

the world is a wasted investment. Newcom-

er to the arena of Top eCRM Dealers of the

Year, Walser Automotive has spent this past

year creating goals and perfecting processes.

Andrew Walser is passionate about his com-

mitment to centralizing processes and ex-

ecuting on them. Even with the spectacular

results they have seen thus far, 2007 is sure

to hold great promise for this extraordinary

results-driven dealership group. With the

right tools, people and processes in place, the

only thing left to do is make it happen.

The Walser GroupExecuting Success: Increasing Closing Ratio to 20 Percent

“We understand the importance of process and execution, and as a result have built a great foundation in terms of percentages and closing ratios.”- Andrew Walser

THE BOTTOM LINE

• Walser Automotive has implemented a new Digital Marketing Strategy.

• Walser Automotive knows the importance of having the right process.

• The BDC staff successfully sets appts on 32 percent of leads at Walser.com.

• Walser Automotive has increased closing ratios up to 20+ percent in two franchises.

• The Walser Way is a “negotiation-free” philosophy. Everyone pays the same low price.

• Walser Automotive conversion ratio is 10 to 15 percent higher than the national average.

12

Since implementing their new digital market-

ing strategy a few years ago, Sheehy Automotive has steadily increased

their leads, and are now up to the 700 percent mark! This proves that a clear strategy, complete with the right people, process and tools de-signed to utilize the

Internet to improve business is not just a passing fad with tem-porary results, but the

way of the future for automobile retailers. Let’s take a look at how a large volume dealership group in the highly competitive DC area transformed their average Internet department into a whole new profi t generating center.

Sheehy Automotive, with 18 franchises within 13 dealerships across Maryland and Virginia, had immediate results following the imple-mentation of their strategy. In the initial two months, their BDC had increased leads by 230 percent which translated into an additional 279 units in one month. They are now generating 3,449 leads per month and have exceeded their goal of 300 sales per month with an all-time high of 414 sales from the Internet Department. Not only has Sheehy maintained their steady growth, they’re decreasing their cost per sale in the process.

Sheehy Automotive began with a business plan that outlined what they needed to do to use the Web to grow their business. Roy Reutter, In-ternet director at Sheehy, indicated that in the beginning they were relying on third party lead providers for their leads and sales. “We quickly realized that we needed more than just a Web site and a few third-party lead provid-ers,” explains Reutter. “We worked with a re-sults-oriented automotive Internet consulting fi rm to build a complete strategy including the redesign of our Web site, staffi ng and training the team, implementing a process, establishing pricing, and fi ne-tuning lead management," Reutter added.

On the topic of marketing, Reutter refl ects, “If you can’t generate traffi c you might as well not have a Web site. Search Engine Optimiza-tion in conjunction with multi-media buzzmail campaigns blended with traditional marketing

media has enabled us to increase traffi c and sales at a lower cost than ever.”

With Internet marketing, everything is mea-surable. Performance metrics help track your dealership’s performance and the return on your investment. It’s important to have the right CRM tool that will integrate and automate data so that your strategies can be updated and revised when needed. Reutter added that the measurability of ROI on the Internet is unparal-leled in the car business. In tracking their new

marketing strategy, they have seen the average cost per sale drop from more than $500 per sale to about $130.

The most important metrics to track:• Number of visitors to Web site• Conversion Ratio• Closing Ratio• Average gross profi t• Cost per sale by lead source

Sheehy AutomotiveContinued Success – Increased Results up to 700 Percent

“We worked with a results-oriented automotive Internet consulting fi rm to build a complete strategy including the redesign of our Web site, staffi ng and training the team, implementing a process, establishing pricing and fi ne-tuning lead manage-ment.” - Roy Reutter, Internet Director at Sheehy

THE BOTTOM LINE

• Sheehy sold 414 units online in just one month.

• After launching the new Web site, Sheehy went from 400 to 1,350 leads in only 60 days, and today it generates more than 3,400 leads per month.

• The closing ratio for the leads from Sheehy.com is three to four times higher, and the cost per sale is about $130 per car.

• Sheehy.com is designed to drive phone and showroom traffi c, and the Web site is now its No. 1 source of phone leads.

• Sheehy's Web site vendor positions it on search engines and helps mar-ket the Web site online and through multimedia e-mail campaigns.

• www.Sheehy.com has been recognized as one of the top eCRM Dealers of the Year for three years in a row.

13

14

Rick Case sold his fi rst car at the ripe age of 14 years old. It was an old “fi xer-upper” which he purchased,

tweaked, and then resold for a profi t. Rick claims he made more on that one car than he had made all year as a paper delivery boy. And so the leg-

end began. By 1965 Rick had opened his fi rst Honda vehicle franchise, and estab-lished his stature as

having a keen eye for how innovation can lead to opportunities.

Today the Rick Case Automotive Group, comprised of 14 dealerships throughout Fort Lauderdale, Atlanta and Cleveland, is enjoy-ing tremendous growth in its eCommerce initiatives, doubling their Internet sales from 250 to more than 500 units per month while cutting their cost per sale from $340 per car to only $210.

How has the Rick Case Automotive Group achieved incremental sales and a boost in profi tability during this growth period? One key to recent success at the Rick Case Auto-motive Group was their switch in technology and training vendors. The group put together a new eCommerce strategy that combines the power of search engine marketing, search engine optimization, and e-mail campaigns to increase traffi c. Their new e-marketing strategy, complete with new Web site tech-nology and design, helped generate an aver-age of 5000 leads per month. They’re even selling an additional 250 units per month out of their eCommerce Department.

Rick and Rita share their Marketing Best Practices:

1. Build the right Web site: www.RickCase.com is more than just a Web site; it’s a Vir-tual Dealership which serves as our own re-gional buying service. Our site along with innovative SEM strategies drives more qual-ity traffi c to the dealership which increases leads, reduces reliance on third-party lead providers, and lowers costs. 2. Implement the right balance of SEO/SEM: To attract today’s shoppers, we rely on

SEO/SEM and our technology partner who employs two “Google Certifi ed” experts to help generate more high quality leads. We use mix of organic SEO, which costs less but takes time to establish, and SEM which pro-vides more immediate and predictable results. SEM ads are purchased through competitive bids and are easier to budget.3. Establish a strategy to populate e-mail database: Holding our team accountable in both sales and service, we have seen our e-mail address capture rate increase nearly

30 percent. All leads go to our lead manage-ment tool, which makes it quick and easy to execute campaigns at any time.4. Create effective, low-cost e-mail cam-paigns: With our new CRM tool we can reach hundreds and even thousands of pros-pects and existing customers. We’re able to create unique mini-commercials that grab the customers’ attention and prompt them to come in or contact the dealership. If they don’t contact us, our highly trained CRC team follows up until they do.

"RickCase.com has unique features such as Virtual Test Drives which provide the customer with a multimedia vehicle tour that highlights the unique features of the vehicle they’re interested in.” - Rick Case, Owner

Rick CaseeCommerce Dept. Sells Additional 250 Units per Month

THE BOTTOM LINE

• Rick Case used eCommerce strategy to increase sales from 250 to 500+ in just 9 months.

• Rick Case Automotive Group is comprised of 14 dealerships throughout Fort Lauderdale, Atlanta & Cleveland.

• RickCase.com and new eMarketing strategy generate an average of 5,000 leads per month.

• The Rick Case Automotive Group used their new e-marketing strategy to cut cost per sale from $340 per car to only $210.

• The Rick Case Automotive Group uses SEO and SEM to dominate search engine results.

• Rick Case uses their CRM system to communicate special offers to en-tire customer database.

15

Everything is bigger in Texas, including the

results from Red McCombs’ digital marketing initia-tives. Successful i m p l e m e n t a t i o n

of digital market-ing strategies is the key to success for the nation’s top per-forming dealerships. Capitalizing on the power of digital marketing, Red Mc-Combs.com is leading the way to success by establishing Red Mc-Combs as one of the largest dealerships in

the country. After successfully estab-

lishing their presence on the Web, www.RedMcCombs.com enabled their eCommerce Department to increase sales volume from 40 vehicles to over 500 vehicles per month! Tony Rimas, director of eCom-merce, provides a summary of what it takes to achieve phenomenal success with digital mar-keting.

FIVE KEYS TO SUCCESSFUL IMPLE-MENTATION OF DIGITAL MARKETING

1. The Right Vision: With the help of a quali-fi ed automotive Internet specialist, defi ne a clear vision of your dealership goals and spe-cifi cally how you plan to get there.2. The Right Strategy: Devise a plan that in-volves commitment from the top. In order to effect change throughout the dealership, you need management commitment and direct in-volvement from the dealer to the management team.3. The Right Technology: Your digital mar-keting strategy should include a cutting-edge,

media enriched Web site and a fully automated CRM tool to create a 24 hour profi t center.4. The Right People: In order to get the right results, you need to staff your team with edu-cated, well trained specialists who are passion-ate about what they do.5. The Right Process: Devise a step-by-step action plan to maintain a successful CRM strat-egy. Monitor and measure all of the dealership lead and prospect activity.

Having the right combination of people, tools and processes in place will make it happen. Some dealers think they will get results with

only a great Web site, and that’s not the case. Tony Rimas explains: “Initially we had a pretty nice Web site, but we weren’t getting the results we wanted. We hired BZ Results who provided us with a complete digital marketing solution including a high-end, custom Web site, search engine marketing, custom multi-media e-mail campaigns, a CRM tool that automates follow-up and the training to tie everything together. Our DMS system continues to provide Red McCombs with everything we need to attract, sell, and create loyal customers. The proof is in our results.”

THE BOTTOM LINE

• Since implementing its new Digital Marketing System, Red McCombs continues to sell an additional 500 cars a month.

• With the right people, tools, and processes, Red McCombs has increased gross profi ts from $60k per month to over $750k per mo.

• Red McCombs uses e-mail marketing campaigns and search engine placement to increase sales and lower costs.

• Red McCombs increased its closing ratio from 3 percent to 19 percent by automating much of its follow-up.

• Red McCombs uses Search Engine Optimization to dominate search engine placement.

• Award winning RedMcCombs.com is generating more quality leads while building customer loyalty.

“Our Digital Marketing System continues to provide us with consistent re-sults, increased sales and customer satisfaction at a lower cost per sale.”- Tony Rimas - eCommerce Director Red McCombs

Red McCombsA Texas-Sized Legend: Selling 500 Online Units per Month

The last three years have been quite an ex-

perience for Para-gon Honda/Acura and partners Brian Benstock and Paul

Singer. Not only did the dealership increase their own Web site sales by a spectacular 1,000 percent, they also in-creased their overall sales by over 200 per-

cent according to their factory reports. Results like these have earned www.ParagonCars.

com the Golden Web Award and three-

peat eCRM Dealer of the Year. What’s the key to their success? In the latter part of 2003, Ben-stock and Singer decided to completely change their marketing strategy to leverage the power of the Web and CRM and take the dealership to the next level. “After the fi rst four months we left the newspaper and saved over $100,000 in advertising. The best part is that while our ad-vertising expense decreased our sales increased by almost 200 percent,” said Benstock.

Below Benstock and Singer share their own top 10 tips for building an unbeatable e-commerce and CRM strategy and the secrets to Paragon’s phenomenal success.

Paragon 9 Keys to Success: 1. Start with a Plan: Launching a new Web site, a CRC and an eCommerce marketing strategy can be overwhelming. With the help of technol-ogy partner, we created a detailed action plan for every step.2. Technology: Find a total system that includes a high-end custom Web site, a suite of multi-me-dia e-mails to drive traffi c and a prospecting and CRM tool that automates much of the e-mail activity. Our Web site generates measurable re-sults: www.ParagonAuto.com. 3. Marketing: Traffi c exploded immediately upon implementing our new system thanks to the use of advanced search engine placement and bulk e-mail marketing. We select from hundreds of multimedia campaigns to send thousands of buzzmails every month to generate measurable traffi c at no additional cost. 4. Referral Services: Track your closing ratio and cost per sale by lead source and you can eliminate the poor performing lead providers. We found that the leads from our Web site have the best closing ratio compared with other lead sources, although we did keep AutoTrader and a

couple others. 5. People: We staff our CRC with people whose only job is to sell the appointment and allow the sales person to sell the car. 6. Process: We’ve been able to increase sales without a drastic increase in staff and overhead because 75 percent of our follow-up process is automated with a prospect management tool. 7. Pricing: Selling cars on the Internet is not about giving cars away. If we do not ask for a fair profi t we won’t get one so we aim to be competitive while maintaining a fair profi t.

8. Training: Training holds the key to sustained results. To launch our new system, we con-ducted a manager’s strategy bootcamp and then systematically trained everyone in the CRC on the best phone, follow-up and sales skills the in-dustry has to offer. 9. Measure/Manage: Set up automatic reports on everything you need to improve your busi-ness: the number of leads by source, response rate and time, appointment percent, show per-cent, closing percent, cost per lead, cost per sale, etc.

Paragon HondaKeys to Success Generate 200% Sales Increase While Lowering Costs

“After the fi rst four months we left the newspaper and saved over $100,000 in ad-vertising. The best part is that while our advertising expense decreased our sales increased by almost 200 percent.” - Brian Benstock

THE BOTTOM LINE

• Paragon’s overall sales have increased by almost 200 percent incremen-tally year to date over last year according to their factory reports.

• Paragon’s digital marketing strategy made them No. 1 in Certifi ed Pre-Owned in their region and No. 3 in the US.

• Honda Motors Corp reports that Paragon’s closing ratio increased from 9 to 25 percent which translates into a 300 percent higher closing ratio than the national average.

• Paragon has decreased their cost per sale from $500 to $100 per unit.

• Paragon’s eMarketing has increased the traffi c on their site from 4,000 to 20,000+ new visitors per month.

• Paragon has seen a 300 percent increase in the effectiveness of their e-marketing tools which has been the key driver to their overall growth in new & pre-owned sales.

16

As a young boy, Herb Chambers used to

ride his bike to a local dealership just to look at new Buicks. Little did

he know that he was destined to become the largest automo-bile dealer in New England grossing over $1.4 billion in sales just last year.

An article was recently written for The Boston Globe about how Herb Chambers’ passion for high performance

autos fuels his love for the automobile

business. The article featured Chambers’ col-lection of 15-20 fabulous new and vintage cars which he loves to drive, and was appropriately entitled, “What Herb Chambers Drives.” With the tremendous success that Herb Chambers has accomplished, owning 23 dealerships at last count, a more fi tting topic would be, “What drives Herb Chambers?”

Herb Chambers purchased his fi rst car deal-ership in 1985 in New London, Connecticut, and within a span of a few years has grown his enterprise into one of the largest in the coun-try. What drives Herb Chambers is his undy-ing commitment to provide the highest quality service to his customers, and to operate profes-sionally managed dealerships committed to be-ing leaders in the market areas they serve.

How does Herb Chambers sell an additional 600-700 vehicles over the Internet alone and continue to provide the highest-quality service to his customers? The answer is revealed in the question through the power of the Internet. Herb Chambers knew early on that the Internet would revolutionize the way consumers buy

vehicles. Once he found the right technology partner, HerbChambers.com began to lever-age the cutting-edge technology of innovative high-impact Web sites and digital marketing tools like animated multi-media e-mails into all its dealerships in order to make good on his commitment to provide the highest quality ser-vice to their customers.

Herb Chambers utilizes the ever-evolving tech-nology of Search Engine Marketing and Search Engine Optimization to ensure top ranking among the world’s most popular search en-gines like Google, Yahoo and MSN. An ef-fective SEM/SEO combination customized to their needs makes HerbChambers.com highly

visible on the Internet with listings ahead of their competitors.

To tie it all together, HerbChambers.com relies on their fully integrated, fully automated CRM Tool for measurement and reporting. “You cannot manage what you cannot measure,” explains Jay Gubala, group eBusiness direc-tor. “We measure everything and hold regular meetings to discuss our progress and to fi nd ways to fi ne-tune our processes. The custom-ized reports give us the information we need, the number of leads by source, response rate, appointment percentage, show percentage, closing percentage and cost per sale,” adds Gubala.

“We measure everything and hold regular meetings to discuss our progress and to fi nd ways to fi ne-tune our processes. The customized reports give us the informa-tion we need, the number of leads by source, response rate, appointment percent-age, show percentage, closing percentage and cost per sale.” - Jay Gubala

Herb ChambersSelling Additional 600-700 Vehicles Online

THE BOTTOM LINE

• Herb Chambers is the largest Dealer in New England.

• HerbChambers.com sells an additional 600-700 units per month online.

• www.HerbChambers.com is a nationally acclaimed award-winning site.

• HerbChambers.com utilizes SEM/SEO to dominate the market.

• Herb Chambers was named 2005 and 2006 eCRM Dealer of the Year.

17

In 1955, on the outskirts of town off of East Camelback Road, the dreams of two individuals become a reality.

Edward Fitzgerald together with his partner, R. Mitchel McLure, estab-lished a dealership that was destined to

become one of the largest automobile franchises in the Unit-ed States. It all began in an old farm house which served as the

showroom and offi ce, with a tiny shed out back that doubled as a makeshift garage and make-ready area. In spite of such a mod-est beginning, Courtesy Chevrolet, located in Phoenix, Arizona is now leveraging the power of the Internet to dominate the market in the Valley of the Sun.

Courtesy Chevrolet Vice President and Dealer Operator William Gruwell has been a partner in the business since 1981. Upon the passing of Fitzgerald in 2000, Gruwell became a partner with Mrs. Fitzgerald, and today they employ over 400 staff members, all of which have helped to build Courtesy Chevrolet into the icon of success that it is today. In recent years, William Gruwell’s sons, Mark and Scott, have worked in sales, and are now used and new car sales manag-ers, respectively.

The Business Development Center at Cour-tesy Chevrolet, under the direction of Ralph Paglia, sets the pace in the automobile indus-try today because of their awesome success in digital marketing. The foundation of the BDC at Courtesy Chevrolet is a success-fully implemented Search Engine Marketing strategy along with a cutting-edge technol-ogy rich Web site. Together the combina-tion promotes and drives all of their profi t centers within the dealership. Paglia uses targeted banner campaigns as an effective online marketing medium that allows Cour-tesy Chevrolet to market directly to people living within the geographic areas around their dealership. “Our main goal is to be where our customers are and try to capture

them before they fall trap to third party lead providers who sell our leads to competitors,” Paglia adds. “Our ROI has gone up, our cost per sale has dropped, and our traffi c and in-cremental sales have skyrocketed.” In one month alone, HouseofCourtesy.com gener-ated an additional 384 units with a cost per sale ranging from only $125 to $200.

When asked to name the single most impor-

tant factor in launching a successful BDC, Scott Gruwell tells us, “If you can’t generate traffi c, the BDC will be an expensive fail-ure.” Courtesy relies on CRM tool buzztrak for e-mail marketing and search engine mar-keting to generate more traffi c. “Our new digital marketing strategy and high-end me-dia-enriched Web site designed by BZ Re-sults have increased our leads by more than 400 percent,” adds Gruwell.

Courtesy ChevroletExcusing the Competition: Selling Additional 384 Units in One Month

“Our new digital marketing strategy and high-end media-enriched Web site have increased our leads by more than 400 percent.”- Scott Gruwell

THE BOTTOM LINE

• Courtesy Chevrolet uses HouseofCourtesy.com to promote all of the profi t centers within the dealership.

• Courtesy Chevrolet’s BDC helped sell 384 extra cars and generate $582k in one month.

• Courtesy Chevrolet consistently recognized as one of the top Chevy dealers in the United States.

• Courtesy Chevrolet was named one of the Top 10 eCRM Dealers of the Year 2004, 2005 and 2006.

• Courtesy’s Web site and BDC took them from 40 sales to 384 sales after a two-year period.

• Courtesy’s cost per sale ranges from $125-$200 since installing their new marketing and BDC system.

18

Dave Smith is breaking the mold. Dave Smith Motors is located in Kellogg, Idaho, a small rural mining town with a

population of 2,400. With technology cre-ated in-house, Smith is using the power of the Internet to in-crease sales and prof-

its - and increase they did. His efforts have yielded Dave Smith Motors the recognition

of being the larg-est Dodge Chrysler

Jeep Dealer in the world for the third year, and the largest GMC Dealer in the Northwest. Dave Smith Motors is selling over 400 Internet-lead vehicles a month with CRM technology that he developed and implemented. But for Ken Smith, president of the dealership, size doesn’t matter. His aggressiveness and creative mind has helped the dealership he took over from his father grow to a $250 million business in a county of only 14,000 people.

In the early 1980s Dave Smith developed the one-price system and continues today with this “hassle-free” buying philosophy. Smith draws customers from as far away as Alaska, California and Colorado because they all get the same bargain-basement deal - no haggling over discounts. When the company fi rst got started with the Internet and CRM, its approach was to sell at a price lower than MSRP-plus, so it started its own pricing system. The com-panies had about 10 computer programmers at one time punching numbers to automate pric-ing to give customers an immediate, automated price. They decided that they wanted to be ahead of the competition and ahead of the mar-ket technologically as long as they could. Ken says, “When the Internet came about around 1992 we decided we wanted to be the dealer in the Internet fi eld. At the time we started, we weren’t doing much Internet business, and we weren’t sure where it would take us. But we did know that if we could be fi rst into it and could keep updating our Internet sites and keep on progressing with it, we might succeed.

That’s why we developed our own system, be-cause at that time there weren’t any lead-gener-

ating/follow-up systems available on the mar-ket. I then put in a full-out press on developing a Web site and then started developing our Lead Rocket. Today it’s a completely different system than what we’d originally developed.”

Dave Smith Motors’ system also has a CRM tool to help track leads. It requires site visitors to provide extensive information before they can submit the request, which helps get bet-ter-quality leads. Lead Rocket time and date stamps the leads, and then turns them over to the Internet team manager who distributes them among the 25 dedicated Internet sales as-sociates. Overfl ow leads go to the other sales associates in the main showroom.

Lead Rocket also helps management track CSI. All sales associates must maintain a minimum of 95 percent customer satisfaction score. At Dave Smith Motors, they expect high scores, which means associates have to take care of the customer. As an intranet system, Lead Rocket lets anyone within the dealership send electronic messages throughout the store. The system features in-house classifi ed ads, lists all accessory prices and phone numbers for all em-ployees. And, because the system is tied into their phone system, they know who the caller is when they phone and which sales associate they’re working with.

Dave Smith MotorsNo. 1 Dodge Chrysler Jeep Dealer

THE BOTTOM LINE

• Dave Smith Motors is the world’s largest Dodge Chrysler Jeep Dealer for three consecutive years.

• Their Web site helps them sell more than $600,000 a month in acces-sories.

• Their system includes a CRM tool to capture information and stay in contact with the customer.

• Dave Smith Motors is the largest GMC Dealer in the Northwest.

• Dave Smith Motors has used the Internet and CRM to help grow its op-eration into a $250 million business.

• The dealership has a team of dedicated Internet sales associates to handle all inbound leads.

19

Within the last year, Harvey Autos has increased its on-line sales by 70-80 additional units per month, a healthy

increase from sell-ing only 5-8 units per month just a few short months ago. This signifi cant in-

crease is due to the implementation of a

new digital marketing strategy. This small dealership in Bossier

City, Louisiana is now on their way to

staking claim of being the largest on-line sales dealership in Louisiana.

Harvey Autos hired an Internet marketing con-sulting fi rm with automobile expertise to de-sign and create their site based on the needs and interests of consumers in their region. Gloria Williams, eCommerce director, explains, “Our technology partner provided us with a cutting-edge Web site fully equipped with state of the art features. Our new Web site serves as a digi-tal marketing center that drives traffi c straight to our showroom. We used the tools and train-ing provided by our new partners to establish HarveyAutos.com as the primary Internet buy-ing service for our region. Our new Web site is key to generating Internet leads, phone traffi c and showroom traffi c while promoting all of our profi t centers within the dealership.”

Harvey Autos needed to fi nd an effective way to lead their new-age customers to their Web site instead of to their competitors’ Web sites. Gloria adds, “We also take advantage of ad-vanced Search Engine Marketing to promote our Web site. SEM ensures that we get listed ahead of competitors on the popular search en-gines. I don’t know exactly how the formula works, but I know it’s effective. We have seen our leads more than double and our phones are ringing off the hook!”

Results are what effective Web sites are all about. “Our Web site has consistently con-verted fi ve to six times more visitors into leads over our previous site. Because our site was created by experts who understand the car busi-

ness, it builds value in our dealership. Another nice feature is “Virtual Test Drive” which gives the consumer a multi-media tour of the vehicle they are interested in. Whether the customer is a high-speed or dial-up user, the tours engage the consumers and intimately connect them to the vehicle. Other features that our customers comment on are the unique “Why Buy” buzz-mails or “Trade In Tutorial” micro Web sites that can be sent to our customers with links to our specials, coupons and contact forms that

keep the customer engaged in the buying cy-cle,” added Williams.

Now that the BDC Team at Harvey Auto has a good handle on Internet and incoming phone opportunities, the game plan is to grow addi-tional opportunities with Search Engine Mar-keting. Their goal is for 100+ units alone from the BDC Department and are expanding the department with another staffer to help with the load.

“Our technology partner provided us with a cutting-edge Web site fully equipped with state of the art features. Our new Web site serves as a digital marketing center that drives traffi c straight to our showroom.” - Gloria Williams, eCommerce Director

Harvey AutosBecoming No. 1 Online Dealer in State by Selling 70+ Additional Units/Month

THE BOTTOM LINE

• Harvey Autos uses mass Search Engine Marketing to attract new buyers because it is inexpensive and produces a high return.

• Harvey Autos has trained their people on a successful process to in-crease their appointments and show ratios.

• Harvey Autos uses a customer management system to manage and measure all of their customer activity.

• Harvey Autos uses their CRM tool to automate their e-mail and follow up activity.

• Harvey Autos uses Internet marketing to improve their profi ts in sales & service departments while reducing overall advertising costs.

• Harvey Autos has dominated the search engines to create a regional buying service at www.HarveyAutos.com.

20

Arouse Emotion,Don’t Sell Logic

TomHopkinssts fos ls ms sf fi s

sales and training solution

22 www.sellingsuccessonline.com

What is the emotional process that leads to the purchase of a new vehicle? It begins with a new development in the buyer’s self-image.

That is, the buyers see themselves in a new way — as the owners of that new car, truck, van or SUV and all the status it affords them.

If the projected vehicle purchase is small in relation to the buyer’s income, the self-image change need only be small. But if the purchase is a large one, the change in self-image that makes the purchase possible will be large. Such a change can come about very quickly, though. It can take place within a few minutes, or even within a few seconds.

Champion automotive sales people are adept at spotting these changes in self-image as they occur during sales presentations. They are quick to reinforce the buyers’ realization that they can have, enjoy, deserve, need and are worthy of the marvelous new vehicle they like. Do that, and they won’t just like it; they’ll want it, need it and realize they can’t get along without it — then they’ll buy it.

First, be genuinely interested in doing your best for them. Once they see that you’re on their side, they’ll begin to like you and trust you. Then, they will tell you what they’re seeking to accomplish. Rise above the limitations of your own tastes and preferences. Recognize that what’s right for you isn’t right for everyone, and make an intense effort to see the world through your customer’s eyes.

Second, use your expertise to guide your customers to the best solution, which your inventory provides, for them.

Third, wait for positive stimulus from your customers. If you believe they’ve found

something that helps them satisfy their needs, reinforce their image about that purchase. Avoid worn-out phrases they’ve heard a thousand times. Stay away from the words clients stopped believing years ago.

Concentrate on your customers. Say sincere and positive things that refl ect their uniqueness, and you’ll not only make sales, you’ll create clients who’ll send you referrals and buy from you again.

The key is to be disciplined to wait for positive input. Unless you do that, you’ll fi nd yourself going on and on about something they don’t like, and before you know it, you’re caught in a web of obvious insincerity. Stick to the facts.

The mere fact that you’re a sales person will arouse their negative emotions and they’ll want to emotionally fi ght you. You need to get their emotions focused on their own needs and desires in relation to the vehicle they’re interested in. Then, you’ll build their emotions to where they will have convinced themselves of the decision to own.

To get a thorough education in the emotions that sell, watch television commercials, especially those aimed at children. Logic in sales is a gun without a trigger. You can twirl it all you care to, but you can’t fi re it. Emotion is the trigger. You can hit the target with it. Every time you generate another positive emotion, you’re pulling the trigger on another accurate shot at closing the sale.

No skill that you can acquire in sales will enhance your earning power more than learning how to arouse emotions in your buyers in ways that are positive to the sale. The exact words that you use will depend on your offering, your personality, your buyers and market conditions.

Some clients will see a new feature such as

the GPS systems and fi nd no reason to have it other than the fact that suddenly they want it. It’s the latest and greatest. None of their friends have it. They start to feel excited, important and “rich” in thinking that they’ll be ahead of the crowd by being the fi rst in their group of friends to own it.

Or, they might be feeling the pull to get it because their friends already have it and can’t stop talking about how cool it is or how much time it has saved them.

As you work at developing the skills to evoke emotions in your customers, always keep that concept in mind. You can destroy sales as rapidly as you can create them through the clumsy use of, or the lack of control over, the emotional setting. Also remember that your actions, manners, words (how you say them), your grooming and your clothes are all things that trigger emotions in your future clients — whether you want them to or not.

There’s no way around it. People will react emotionally to you. It is important not to have them react with fear, anger or disgust. To see some sales people approach clients as though they had just fallen off the garbage truck, you’d swear that they don’t realize that future clients have feelings, too. Clients suffer the effects of fear when a sales person comes on too strong; clients get angry when a sales person patronizes them; clients feel disgust when a sales person is non-professional. Play the odds. Always be professional and keep their emotions in mind when meeting new people. Do that and you’ll close more sales.

World-renowned master sales trainer Tom Hopkins is the chairman of Tom Hopkins International. He can be contacted at 866.347.6148, or by e-mail [email protected].

Continuous LearningBrianTracy

sts fos ls ms sf fi s


Throughout the developed world, we have moved from an era of manpower to an era of mind power. We have moved from the

use of physical muscles to the use of mental muscles. Today, the chief sources of value in our society are knowledge and the ability to apply that knowledge in a timely fashion. In the information age, knowledge is king, and those people who develop the ability to acquire new and better forms of knowledge that they can apply to their work and to their lives will be the movers and shakers in our society for the indefi nite future.

When you learn and practice the techniques for rapid learning, when you join the learning revolution, you will learn how to unlock the incredible powers of your mind. You will learn how to become smarter and faster than ever before. You will learn how to become a master of your fate, rather than a victim of circumstances. You will learn how to take complete control of your present and future destiny so that you can accomplish and achieve anything you want in life.

Knowledge is doubling every two to three years in almost every occupation and profession, including yours. This means that your knowledge must double every two to three years for you to just stay even. People who are not aggressively and continuously upgrading their knowledge and skills are not staying in the same place; they are falling behind. You see this demonstrated all over the place with massive lay-offs, declining wages and growing insecurity in the workforce. You see it in the increasing bewilderment and despair on the part of people who are being displaced from low-skill jobs which have either moved overseas or disappeared altogether. We are in the midst of a societal revolution where unionized industrial workers are becoming a smaller and smaller percentage of our workforce each year.

As recently as the 1950s and 60s, it was common to believe that you fi nished your schooling, got a job with a large company and stayed with that company for the rest of your life. This was based on the old paradigm of learning. In this old paradigm, life was divided into three parts. First were your “learning” years, during which you got your education, however extensive or limited. Then came your “earning” years. This was the period of time during which you worked for a living. After that came your “yearning” years. This was the

period of retirement which would be paid for by Social Security, savings and pensions.

Today, with workforce requirements changing so rapidly, you must continually be asking yourself, “What is my next job going to be?” You must also be asking yourself, on a regular basis, “What is my next career going to be?”

Imagine for a moment that your entire company or industry vanished overnight and you had to start all over again in an entirely new business doing an entirely different job. What would it be? And don’t think this question is speculative or that it applies to someone else. It is a question that you will probably have to deal with, perhaps far sooner than you expect. In thinking about your new job and your new career, here is the most important question of all: “What do I have to be absolutely, positively excellent at doing, in order to earn an excellent living in my new job and my new career?”

The solution to almost every problem in the world of work is to learn and practice something new and different. When you learn how to use the incredible power of your brain to absorb and apply new ideas and information, you will be able to lead the fi eld and rise to the top of any profession or occupation.

Here’s another question for you: What is your most valuable asset? In terms of cash fl ow, what is the most valuable thing you have? Well, unless you are very rich, or have a family trust account, your most valuable asset is your “earning ability.” It is your ability to apply your knowledge and skill in a timely fashion to get results for which others will pay.

All your education, knowledge, experience, reading, training and work have contributed toward building up your earning ability. According to the research, the so-called “rich” are almost invariably people who started from common beginnings, often with great disadvantages, and then overcame those circumstances by investing an enormous amount of time and effort on developing their earning ability. And you can do the same thing, starting today, or at any time.

Management consultant Peter Drucker says that the truly educated person today is a person who has learned how to learn continuously throughout life. Tom Peters says that continuous learning may be the only real source of sustainable competitive advantage for individuals and corporations. And Peter

Senge, who wrote The Fifth Dimension, says that only learning organizations, those organizations that are capable of taking in new information, adapting it and using it faster than their competitors, will survive in the fast-changing, competitive world of tomorrow.

The more you know, the better you will be at solving problems and getting results for which people will pay you. The more you know, the more freedom and opportunity you have. The more you learn and the faster you learn it, the more rapidly you move upward and onward in your career and in every other area of your life.

Between where you are and where you want to go, there is almost always a gap, and in almost every case you will fi nd that you can bridge this gap with knowledge and skills. In order to get from where you are to your goals, you have to learn and practice something new and different. You have to learn new skills and abilities. You have to learn new attitudes and methods. You have to learn new techniques and practices. If you want to be a better parent, you must learn and practice better parenting skills. If you want to be a better spouse, you must study and practice relationship skills. If you want to earn more money, you have to determine what it is that people will pay more money for, and then get busy learning and practicing those behaviors.

Specifi c knowledge and specifi c skills will become obsolete with the passing of time, but learning how to learn is a permanent skill that you can use all the days of your life. The people who join the learning revolution, and who learn how to learn faster, like those people who fi rst learned how to operate computers, or learned how to become excellent in their fi elds, will be able to earn more in one or two years of work than the average person earns in perhaps fi ve or 10 years.

By joining the learning revolution, you will enhance every area of your life. You will be able to help your spouse and your children unlock and realize more of their individual potentials. You will be a better friend in helping your friends use more of their abilities. And you will be a better manager, developing the skills that will enable you to get far more out of yourself and other people than ever before.

Brian Tracy is the chairman and CEO of Brian Tracy International. He can be contacted at 866.300.9881, or by e-mail at [email protected].



Kings ToyotaThe Biggest Showroom in the Universe

PatrickLucksts fos ls ms sf fi s

special feature

27january 2007

While rain, snow, heat and cold are enemies of most dealerships, Kings Toyota in Cincinnati, Ohio, found a way around the weather

– they moved their new car lot indoors.

“We were out of space at our old facility,” said Gerry Carmichael, the general manager of Kings Toyota. While looking for an answer to their problem, an unusual opportunity presented itself when the Kroger grocery store located near the showroom closed.

In addition to the potentially huge sales fl oor and increased visibility from Fields Ertel Road – one of Cincinnati’s major streets – the idea of total climate control also appealed to the Southwestern Ohio dealership, where temperatures and humidity in summer are as oppressive as the cold and snow are in winter. Carmichael said the idea of taking over the 68,000 square-foot facility and creating something special made sense on a lot of different levels.

Not that there weren’t challenges to that vision at fi rst. “The fi rst hurtle was wrestling the lease away from Kroger,” Carmichael said. “The second hurtle was getting Toyota to agree to the plan. They were sort of iffy about the whole proposition. When you looked at this place when it was the old Kroger, it was kind of run down.”

Carmichael’s vision eventually won Toyota over, though, in time to face the largest challenge. “The biggest hurtle was Deerfi eld Township, and getting the buy-in of the local authorities,” he said. “Let’s face it – having car dealerships out on the main drag isn’t every township’s dream come true.”

Kings Toyota eventually overcame the objections, though, and on July 28, 2006, the new facility, boasting 150 vehicles under one roof, offi cially opened.

“Customer reaction has been off the charts,” Carmichael said. “People are really impressed, and in our surveys with Toyota, people are giving us glowing reviews. I think what they like the most is that it’s very comfortable. We try to keep things low-key so customers don’t feel like people are jumping all over them. It’s a very relaxed atmosphere.”

The central lounge area contributes to that feeling. It offers free Starbuck’s coffee, snacks, a large-screen TV, videogames to occupy children, and computers for customers who want to do research before they buy.

The dealership also has four 106” high-defi nition televisions at various points in the showroom, and they serve a multitude of functions. “The televisions segregate the showroom between hybrids, trucks, cars and SUVs,” Carmichael said. In normal mode, the screens show general infomercials about Toyota products. “At each station, a sales person can put in a DVD if a customer wants to see information about a specifi c model,” he said. Thanks to directional speakers, no one outside the monitor’s zone can hear the presentation. “The customer can sit down and get a great presentation every time,” he said.

Not that the monitors are all business in a town proud of its NFL team. “Last Sunday we turned on the Bengals’ game on all four monitors,” said Linda Caruso, one of the dealership’s new car managers. The game kept the atmosphere relaxed and inviting. “We had to wait to sell cars because the customers were watching the game, and it was nice for the employees who were here to be able to keep an eye on the game,” she said.

The size of the facility has allowed Kings Toyota to offer services that it never would have been able to accommodate in a smaller area, including offering a dedicated accessory center, a large indoor clean-up area and a nine-vehicle indoor delivery area.

The delivery area is surrounded by the fi nance offi ces, and is designed to keep the customer’s mind at ease. “The nice thing is that if you’re a customer sitting in there doing your fi nal paperwork, you’re looking out at your car, which takes a lot of stress away,” Carmichael said. “It makes for a really nice situation.”

The 150 cars kept on the showroom fl oor showcase the vehicles Toyota offers in all their variety, including colors and options. And, since the area is already secure, the cars can be kept unlocked, allowing customers to examine the interiors freely in climate-controlled comfort. Instead of desks for individual sales staff, tables are spread throughout the fl oor amongst the vehicles, each equipped with the information the sales people need to answer questions or start the sales process.

“The average Toyota buyer is very educated, and know what they want when they come in the door,” said Brad Cohen, another new car manager for Kings Toyota. “The last part of the decision is the color they want and the equipment. They may know they want a Camry, but they might not know which Camry or what level of accessories they want. This gives them the opportunity to look and see.

“The normal barriers are brought down here,” Cohen said. “When we sit down with a customer after the buying process, that’s one of the things that they stress – how easy and comfortable it was.”

“We have 40 sales people here,” Caruso said, “but because they can all spread out, sometimes we look out and say ‘Do we have anyone out there?’” Thanks to a state-of-the-art phone system, designed by Toshiba and SpectraLink, employees stay in touch.

“This system is one of the fi rst in the country,” Carmichael said. “Nobody needs to be locked to a desk anymore. Everyone’s mobile.”

Kings Toyota’s former location has been converted into a used vehicle facility, which

had been combined previously. “Probably the most pleasant surprise of the whole deal is how much it’s helped our used car facility by separating them,” Carmichael said.

This has translated directly into new sales for both lots. “We saw a 26 percent increase in new car sales right off the bat, which we’ve been able to maintain, and we’ve seen about a 14 percent increase in used car sales,” Carmichael said. “We sell an average of 400 new cars since we’ve been here, up from about 300 sold before the move.”

One test the dealership met was that since the new and used facilities were now separate, the process of getting trade-in cars appraised had to be revamped. “Getting that whole process mapped out has been one of the biggest challenges we faced,” Carmichael said. “When the car comes in, we have a lot tech take the car over to the used vehicle facility to have a manager appraise it while the customer is looking here, and then bring it back. The appraisal is ready by the time they’re ready to talk. We’re big on the pre-appraisal process.”

In addition to on-site sales, the move has also helped generate added sales online. “We delivered 61 vehicles last month,” said John Gonzales, the dealership’s Internet sales manager. “We jumped 35 percent since we moved in here. It’s been kind of crazy.”

In addition to increased visibility and brand awareness – the dealership now has the largest Toyota showroom in the nation – Gonzales credits his department’s work ethic to the increase in online sales. “Toyota requires an answer to online inquiries within 24 hours, but I require my guys and myself to respond within an hour. A lot of dealerships never answer or it takes them two or three days. By that time, the lead is cold and dead.”

“We’ve already been one of the largest Toyota dealers, but now you can see the impact; customers can see we’re one of the largest dealers,” Cohen said.

People want to work for a winning team, and Kings Toyota is attracting sales professionals from all over the area. “We’ve never had a lot of turnover, and we’ve had a lot of top-shelf sales people come to work here,” Carmichael said. “At this point, we’re overwhelmed by requests from sales people who want to come to work here. You can stand out there and freeze, or you can come in here where it’s nice and comfortable. That was true last summer, as well. Do you want to be out in 95-degree weather with 100 percent humidity?”

“Retention is very good, but it was good before,” Caruso said. “We have sales people who have been here for years. About a third of our staff has been here long term, about a third has been here for a while, and the other third have been added because of the move.”

So what’s been the reaction from Kings Toyota’s competitors? “There’s a term I’ve heard from a couple of people,” Carmichael said. “‘Kings envy.’”

Gerry CarmichaelGeneral Manager

Linda CarusoNew Car Manager

Brad CohenNew Car Manager

John GonzalesInternet Sales Manager

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Increase Your Online Profi ts by Rewriting Your Used Car Manager’s Job Description

DavidKainsts fos ls ms sf fi s

marketing solution

Perhaps the greatest mystery to me when it comes to managing Internet operations at a dealership is why the used car manager is not

in the middle of the mix. Over the past several years it has become apparent to me that dealers who have their used car managers actively involved in online marketing and sales have benefi ted more than other dealerships. This does not mean that most used car managers are not working hard and using imaginative ideas to market and sell their vehicles – of course they are. I just think if they apply these efforts in the online world, their rewards in sales and profi ts will be even greater. Let’s review two key tasks and how the Internet can increase results in both areas.

Inventory AcquisitionThere is no more important task the used car manager has than that of inventory acquisition. Yes, sales people sell cars, but you can’t sell what you do not have (well, most of the time anyway), and the used car manager is typically charged with fi nding and purchasing or trading for the vehicles that are eventually sold by the sales team. For years the pre-owned inventory at our dealership was dependent on the next potential trade-in or the Thursday auction. I can remember telling plenty of prospects that I would be going to the auction on Thursday with a list of vehicles I needed to buy and I would be glad to “hand-pick” one for them while I was there. Prospects truly appreciated this approach and on many occasions I actually was able to match their needs to an actual vehicle, but more times than I care to count I came home empty handed and frustrated both myself and the prospect. Prospects appreciated the full-service approach and still do today. This is still a solid approach, but with today’s open inventory architecture of the Internet, the customer can pretty well complete this task themselves - unless they fi nd it is better to work through a trusted and reliable dealership with an Internet-oriented used car manager.

Imagine saying to a Saturday-morning prospect that you are going to the auction next Thursday and to wait until then to see if by chance we fi nd a vehicle that fi ts their needs. I would feel more confi dent if the used car manager came in on a turnover and completed an interview with the prospect, found out their likes and dislikes and then asked them for a few minutes while they checked out their “Inventory Network” for vehicles they were looking for. The “Inventory Network” is in actuality the same Internet that the prospect can access each and every day. The difference is the prospect lacks the experience and the confi dence in many cases to do what a used car manager can do in minutes. Once a vehicle that fi ts the bill is “located” then the presentation can be something as simple as “We have found one that closely matches what you are looking for at one of the dealers in our network. We will go over all the details with you now and make sure it is what you would purchase if it meets your condition requirements.” If the prospect likes the vehicle and you can agree on a price, then the next step is similar to locating or swapping a new vehicle. “We will go and inspect the vehicle and make sure it meets our condition criteria and only if it does will we bring it here for you to test drive. All we need now is to write it up, get your deposit and schedule a time for you to come back to see the vehicle.”

This is happening all over the country with dealerships who use the Internet as a catalyst to sales, and it can take place at every dealership that decides they want to actively use the Internet to their advantage. Some active Internet dealers have gone so far as to set up networks with other dealers where they purchase inventory of this nature for a set margin, while others are using services like lanelogic.com.

Inventory DisplayA huge advantage of the Internet is the fact that your display area is virtually unlimited. Once a dealer uploads their inventory to their own Web site, Cars.com, AutoTrader, eBay

or any number of quality online classifi ed sites, their inventory is on display for millions of potential prospects. At this point it is a beauty contest, and often times the dealers who provide the best display get to the prospect fi rst because their vehicles “look and sound” the best in the listings. Compare it to searching for a house online. If a real estate agent provides quality photos and a quality description, even if the price is a bit high, many prospects will want to schedule an appointment to see if it is as nice as it looks and sounds. I have said many times about homes that if it really matches the display then I would be willing to pay more. I am certain your online prospects are saying the same thing. Given that most used car managers are responsible for their inventory display, I would recommend tasking them with making their online display the best in the market. It’s not hard to do as you will fi nd out with a quick look around the leading online classifi ed sites. Most dealers do not even write a description because the “VIN decoder” does it for them. Imagine your sales person as a walking and talking VIN decoder – if they simply recited the equipment to the prospect, they would likely not peak their interest and sell the vehicle. Make your descriptions come to life and engage your used car manager to put the same effort into describing it as they do when they return from the auction and show off the car to the general manager or dealer.

It’s as Simple as it SoundsNo rocket science here – just help your used car manager achieve their goals and your goals by engaging the Internet in their everyday tasks. It’s happening all around you and I don’t think you will want to miss out on the benefi ts.

David Kain is the automotive Internet training specialist at Kain Automotive, Inc. He can be contacted at 800.385.0095, or by e-mail at [email protected], or visit www.kainautomotive.com.

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New CarsYou can never avoid dealer swaps completely, but you need to minimize them, because:

• While you’re waiting to swap, your customer may cancel and/or fi nd a “better deal” elsewhere.

• Swaps take a ton of administrative time from your managers and offi ce staff.

• Other dealers don’t care for their cars like you do, so swapped cars come in with scratches, missing keys, etc.

• When called for a swap, other dealers cherry pick your inventory, occasionally forcing you to do another swap next week for the rare car you gave up today.

• More cost in fuel and drivers, and more headaches: In eight years, accidents have totaled two of our brand new cars on swaps.

Here’s how to manage the most common reason for swaps - color.

• Early in investigating, ask your prospect if she prefers “light or dark colors,” rather than “what’s your favorite color?” This gives you more fl exibility.

• When asked, “What colors does it come in?” answer, “We have the following colors in stock….”

• When asked if you have a color that you don’t stock, resist the temptation to answer with the overeager “but we’ll get you anything you want.” Many folks will take a second- or third-choice color if you don’t go out of your way to promise the fi rst choice.

• Have phrases ready for when you need to switch someone off a fi rst-choice color. Examples:

• “White is what most folks choose when they can’t get silver.”

• “Black is impossible to keep

clean. Wouldn’t you prefer a lighter color?”

• “Silver is great for resale because it’s acceptable to almost everyone.”

• “You get the best deal on the in-stock vehicle because there are no expenses associated with swapping it in.”

• “You like the interior color, right? Well that’s what you see when you drive.”

• In the end, if you can’t avoid the need to swap, make sure you get a second-choice color from the customer so your deal doesn’t fall apart if you can’t get the fi rst.

Used CarsThere is no feasible way to swap for a used car, so if you fail to sell whatcha’ got, you won’t sell anything at all.

• If you don’t have exactly what a prospect wants, avoid telling her that you’ll give her a call when the perfect car comes in. The perfect car will never come in. While waiting for your call, your prospect will buy an imperfect car elsewhere.

• Identify the objection(s) to your car and overcome them. If you can’t overcome the objection, then put the objection into context. “You wanted a late-model, low-mileage Outback, automatic transmission, with a cloth interior. The one I have in stock has a leather interior. But you’ve found a great sales person, a great dealership where you feel comfortable, and a great car at a great price that has everything you want except one thing. Do you reckon you’re about as close to the perfect car as you’re gonna get?”

• Discount. Discounting should be the last resort, because it costs a lot compared to good sales technique, which is free. However, if you can’t fi nd the perfect car, then maybe you can fi nd the perfect price. “If we could save you $500, would that make you feel better about taking the leather interior?”

Jeff Morrill is co-owner of Planet Subaru in Hanover, Mass., and Planet Chrysler Jeep Dodge in Franklin, Mass. He can be contacted at 866.872.8699, or by e-mail at [email protected].

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31january 2007

TonyDupaquiersts fos ls ms sf fi s

f&i solution

Stop Negotiatingin the Business Offi ce

The business offi ce is not the place to negotiate. The benefi ts and services that are sold there should not be subjected to

negotiations; however, in too many instances, there is a need for payment relief.

Extending the term of the loan is one way to offer payment relief. Although a lower payment will be achieved with a longer term, this technique is usually not in the customer’s or the store’s best interest. Cash down from the customer is your best bet and the fi rst place you should go with a customer who needs payment relief. Once the customer tells you that they would like some of the benefi ts you are offering, but they need a lower payment, calculate how much cash would be required to achieve that payment. Cash is king in our industry. I know that every sales person walks in your offi ce telling you they have no money down; however, you are the best closer in the dealership, and you have the ability to have the customer put additional money down.

Let your customer know that their personal investment in their new vehicle has four primary benefi ts. They are: lower payment, the ability to build equity, a faster trade cycle and lower loan cost. After you tell them the benefi ts of cash investment, ask the customer which is most important to them. The majority will say lower payments. Your reply to the customer is this, “Since you told me that having a lower payment is important to you, an additional investment of ____ will put you closer to the payment you desire, and you can have the benefi ts you want.”

You must isolate what is important to the customer, because if the customer does not see the benefi t, it is only an expense. Although cash is king, not every customer will have additional investment available.

The product most often sold in the business offi ce is the service contract. Unfortunately, it is also the product that is most-often negotiated. Many business managers price a service contract from cost-up. This leaves minimal profi t after negotiations. I recommend starting at the recommended retail price. Starting at full retail allows for relief while still holding acceptable profi t.

Another avenue of payment relief is credit disability coverage. Since credit insurance rates are set by the state, price is not negotiable. Always offer your customer coverage with the shortest retroactive period available. Once

the customer has agreed to participate in the benefi t in principle, all you have to do is meet them with the payment. In most states, you have the ability to sell a 14-day and a 30-day retro period disability program. If the 14-day retro period is cost prohibitive, move the program to a 30-day retro period.

Remember: When payment relief is needed, start by illustrating the benefi ts of cash

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Tony Dupaquier is the director of F&I Training for the Automotive Training Academy. He can be contacted at 866.856.6754, or by e-mail [email protected].


PhilSura

Targeted Web Video and Your Ad Strategy, Part 1


marketing solution

Step I. Getting the Customer to YourWeb Site is CriticalThe vast majority of customers use the Internet to look

for automotive options in the market. Customers are attempting to determine where they should invest their time. Even if auto shoppers are inspired by a half-page news print ad, they will still likely use the Internet to gain additional information about that specifi c dealership by visiting the Web site before coming into the dealership. The dealers that have a strong presence with the search engines spend time and money to accomplish this. All dealers should have an understanding of the basics of search engine optimization and search engine marketing in order to stay competitive.

In Internet marketing, search engine marketing, or SEM, is a set of marketing methods to increase the visibility of a Web site in search engine results pages (SERPs). The main methods of SEM, as defi ned to Wikipedia (http:// www.wikipedia.org), are:

• Search engine optimization attempts to improve rankings for relevant keywords in search results by improving a Web site’s structure and content.

• Pay-per-click advertising uses sponsored search engine listings to drive traffi c to a Web site. The advertiser bids for search terms, and the search engine ranks ads based on a competitive auction as well as other factors.

Search engine optimization (SEO) is a subset of search engine marketing, and deals with improving the number and/or quality of visitors to a Web site from “natural” (aka “organic” or “algorithmic” search engine) listings. In effect, SEO is marketing by appealing to machine algorithms to increase search engine relevance and, ultimately, Web traffi c. This is analogous to foot traffi c in retail advertising.

Step II. Getting the Customer to Move From a Passive Position to an Active Party Once the customer visits your site, how do you communicate your message? Does your Web site stand out from every other dealer’s site, or does it have the same look as every

other dealer’s site in your market? Are you communicating your latest campaign or event on your site? How do you display your actual inventory online? Does a customer get inspired to visit your dealership when they see your site? You may have the most impressive retail facility in your community but if you have a boring Web site, customers may never see your operation.

Video content allows you to create a stronger emotional message for the customers who are taking the time to visit your operation online. Video on your Web site does two things: (1) More information is retained and (2) the customers will stay on your site for a longer period of time. Examples of dealer Web videos include testimonials of happy customers, a message from the owner, a tour of the facility and video virtual tours of the new and used cars. Professionally produced video content on your site will help push the customer from a passive position of simply browsing the site to a customer more likely to get engaged in the next step of the sales process. Possibilities for the next step include calling the dealership, sending an e-mail to the dealership for more information or visiting the dealership in person.

Smart dealers today must develop a strategy to display both their new and used inventory through Web video. New car Web videos or virtual tours can be created by repurposing OEM running footage and can then be featured on the dealer’s Web site. This

approach can give a Web car buyer who is researching new car options on the Web the ability to get information about a new car from the dealer’s site without having to leave the site and go to a manufacturer’s site. Keeping customers on your site is critical, and this is a great way to do it.

In selecting a company to provide new car videos, it is important that you work with a company that also has the ability to incorporate and highlight not only footage about the new car but who can also highlight your dealership’s brand message as well.

Used car virtual tours are important, as well. Some leading vendors of these services can create these video walkarounds from the digital pictures. Each video walkaround may include an overview of the features of that specifi c used car, with background music, and a “call to action” at the end urging the buyer to come into your dealership or to call or e-mail for a test drive. The call to action pushes the customer to take the next step of visiting the dealership or e-mailing for additional information.

These used car virtual tours are then linked to a dealer’s used car display page. Most of the major Web site providers are allowing video content to be added directly to the used car display page. A video icon informs the customer of the units that have a virtual tour.

Used car virtual tours can also be linked to a third party such as CarSoup. Data shows that a car with a video tour is likely to be clicked on four times more than a car with only pictures. These virtual tours can be sent as a link to a customer making an inquiry. Think of the impact that video has on a customer. Video is more dynamic, more emotionally engaging and more interactive. Remember that these videos are opportunities to brand your operation. The voice talent should be professional and the introductions and closes should “wow” a customer.

Next Month: How using video can drive customer loyalty.

Phil Sura is the vice president of the automotive division of UnityWorks!Media. He can be contacted at 866.647.0468, or by e-mail [email protected].

Smart dealers today must develop a strategy to display both their new and used inventory through Web video.


Key Performance Indicators, Part 5

HeatherConarysts fos ls ms sf fi s

marketing solution

In the past four issues of AutoSuccess, I have written about Key Performance Indicators (KPIs). These are gauges you

can use to determine how well your Web site is performing.

To calculate these KPIs, you will need a set of your statistics from your Web site. There are many different statistics providers out there (Urchin, CoreMetrics, WebSideStory, even proprietary solutions.) If you need help fi nding the measurements referenced in my article in your own statistics package reports, feel free to e-mail me.

Getting Started with Tracking Offl ine Marketing CampaignsBeing able to develop, deploy and track online marketing campaigns is a major advantage of having an online presence. Unfortunately, dealership marketing doesn’t exist in a bubble – any online campaigns (Web site, e-mail, search engine), are typically complemented or run in addition to offl ine campaigns (newspaper, signage, direct mail.)

Generally speaking, online campaigns are much more popular among marketers due to their trackability. Over the course of the last four months, we’ve looked at many different ways you can fi nd and use information to see what customers are doing on your Web site. Offl ine campaigns have typically been more diffi cult to track.

However, you can use your Web site to track how well your offl ine campaigns are doing, specifi cally if they are driving traffi c to your Web site or virtual inventory.

Using Tracking AddressesOne of the easiest ways to track an offl ine campaign is to use a tracking address (also called a tracking URL). Most likely, if you

advertise your Web site address on items like your letterhead or invoices, it is the address for the main site. For example, if you run Joe’s Ford, your letterhead probably includes www.joesford.com.

What if you want to get an idea of how many people are fi nding you by your Yellow Pages ad and being motivated to visit your Web site? You can list your Web site address as www.joesford.com/yellow in the ad. You could have your Web site provider have this address redirect to the main site, but you will be able to check your Web site statistics reports to see how many customers are coming from this particular source.

Some other ideas for using tracking addresses:

• Add a tracking address to each standard marketing piece that your business uses, including letterhead, envelopes, invoices, repair orders, brochures signage. For example, if on repair orders, you include a link to www.joesford.com/ro, and you see that you begin to get a fair amount of traffi c through that, can you begin to think about what customers are looking for? Are they looking for information on your service warranty? Are they looking for the name of a manager to whom they can send a complaint?

Using Landing PagesA landing page is the fi rst page a customer sees when they are directed to your Web site by a particular offl ine campaign.

If you are sending out Christmas cards to your customers with directions to visit your Web site for a special coupon for service or parts, you want to fi gure out how many people are actually reading the card and being motivated to go fi nd out what the coupon is. To do this, you can have your Web site provider set up a landing page. For the example of the Christmas cards, you’d

have www.joesford.com/christmas. This page would be a separate page from the main Web site. It could be linked from the main Web site, but it doesn’t have to be.

Some other ideas for using landing pages:• Assume your sales people give out a

business card to be-back customers. If your top sales person, Jim Smith, gives out a card, it could include a link to www.joesford.com/jimsmith. If the be-back customer types in that address to get back to your site, they will be greeted by a friendly face that they recognize.

• Your dealership sends out a direct mail piece that includes a contest to win a gift card. You could include a link to www.joesford.com/contest, so that customers are taken directly to the entry form for the contest when they visit your Web site.

• Does your dealership offer a preferred card or rewards card to your customers? You can include an address on the cards for www.joesford.com/rewards. When a customer goes to this address, they will immediately be able to access information regarding your rewards program instead of having to search your site for it. This can also be easily modifi ed for gift cards or certifi cates.

The applications for using your Web site to track your offl ine marketing efforts are endless, and are limited only by your creativity. For more ideas on using tracking addresses or landing pages, you can e-mail me.

Next Month: Creating a system and process for using Web site statistics to their full advantage.

Heather Conary is a Web developer at Downeast Toyota-Scion-Buick. She can be contacted at 866.386.4914, or by e-mail at [email protected].

Money GuaranteeMy Sales Event will bring you $100,000-$250,000 in gross profi t in 5 days GUARANTEEDor I will deduct the cost of advertising. You will experience 200-500+ customers walk through your doors in 5 days.

This guarantee is small potatoes compared to the tons of money that you will make from this event. That’s why I am so confi dent and can make these bold claims to you. Big dealerships, small dealer-ships, city dealerships, rural dealerships, it does not matter. We have been able to get results time and time again.

What Is This All About??? Big things, big break-throughs, big sales, big gross profi ts. And yes, you can do this without lying to or beating up your customers. That’s right! With a very good marketing plan, very good people, very good processes and understanding of proper desking principles you can get a ton of customers, sell a ton of vehicles and make a ton of money – THE RIGHT WAY.

For many, 2006 has not been a banner year in traffi c, sales or profi ts. In fact, for many, 2006 has been a real stinker. Many dealers and their personnel have begun to believe that it is just that way and you can’t push a market when it’s not there. Folks, I am here to tell you that those things are only opinion.

DO YOU WANT THE REAL TRUTH? Can you handle the real truth?

The real truth is that it was a 13 Trillion Dollareconomy last year in the US. 13 TRILLION! Now, if you believe that you and your dealership can’t get your fair share of 13 Trillion, then you can skip the rest of this letter because my company would not be a good fi t for you. If you don’t believe you can get your fair share of 13 Trillion Dollars, then you need to keep belly aching and whining about how bad things are.

However, if you aren’t willing to make excuses for the rest of your career about economies and manu-facturers and every other boogey man you can fi nd, then read on…

Tewart Enterprises Inc. produces fi ve-day sales events for dealer-ships all across the country. We bring traffi c, LOTS OF TRAFFIC,with our promotions. We also bring a professional team of people to help you manage the sale and make it successful. We don’t bring drunks, drug addicts and derelicts. WE ARE PROFESSIONALS.

How Are We Different?First of all, it’s our people. We have quality people. No vagabonds and rogues allowed. Second, we have process. Third, we have experience. MOST OF ALL, we are an individual and organizational development company. Our mission is to leave your dealership better than when we came in. We will assist your people in growing their sales skills, people skills and deal process skills.

OpportunityDon’t let another weak month happen. If you would like to discuss the opportunity of what a Tewart Enterprises Inc. sales event can do for you:CALL 888 2 Tewart (888 283-9278)or e-mail us at [email protected] with the words “sales event” in the subject line and make sure to give us your contact info in the e-mail.

FREE BONUSFor all dealerships who schedule a sale with us in the next 30 days, I will include one month of our

distance learning program for FREE. You get our internet based sales training program available to you 24/7 for a month! ($497 Value!) Each person can view as many modules as they want and take a test on each module and the manager can track everyone’s usage and test scores.

FREE BONUS #2The fi rst 10 dealers who we schedule a sale with that mention this letter, I will give you my High Performance Sales DVD for FREE! ($597 Value)

“We have tried other companies and Tewart Enteprises is the best.” Lonnie Robertson, Dealer – Johnson’s of Chickasha – Chickasha, Oklahoma

$200,000 in 4 days at Jeff Wyler Auto Mall in Springfi eld, OH

P.S. You can subscribe to my free e-mail newsletter at www.tewart.com, and make sure to come to my Workshop at the 2007 NADA Convention: 27 Marketing Secrets Guaranteed to Increase Your Traffi c and Sales in 30 Days or Less.

MARK TEWARTTewart Enterprises


Training Essential to Telephone Success



Dealers considering setting up a BDC should look at the most effective models. The model more and more dealers are using

involves “phone people,” or, in other words, non-sales people taking every sales call. This is often done because a dealer believes the sales people can’t do a good job on the phone. But, when customers call, they are looking for detailed information about vehicles. Who better than the sales people to provide this information?

We need to train our people to do the jobs that they’re hired to do. Training is a process comprised of several elements. If any of these elements are missing from your training process, your results will be short lived, at best. Remember this acronym: E-T-A-M.

E = EducationEducation is where people learn what is expected of them and why it makes sense. In general, education can be conducted in a classroom setting, interactively or utilizing books and audio materials. Provide your people with proven scripts and word tracks. Insist that they learn these. Actors have scripts, football teams have scripts (playbooks) and so should your staff. When is the last time a customer said something to you that you had never heard before? If a sales person refuses to use “your” word tracks, have them submit the ones they would prefer to use for your approval. “Winging it” is not an option. Of course, we don’t want our people to sound scripted. Your customers do not want to talk

to someone who sounds like a robot. We want sales people to have a natural-sounding dialogue with their customers. That’s where the next element comes in.

T = TrainingTraining is repetitive application of learned skills. Typically in a seminar environment, sales people are educated but not trained. We mistakenly tend to expect the results of training from education. This is the equivalent of trying to become a good golfer by watching a lot of golf on television. Sales people must fi rst be educated, and then trained relentlessly in the form of role-playing. The role-playing of specifi c scenarios is critical. Training needs to happen daily. Do baseball players take batting practice daily, or do they send their guys to a hitting seminar once a year? In a group, role-play different scenarios with your people. Pick one person who you know will do a good job on the call. This person will set the “tone” for the meeting. When conducting these meetings, practice the calls you get most often. If you get three new car calls to every one used car call at your dealership, role-play that same ratio. If the person you are role-playing with makes a mistake, start over again with that same person. Don’t jump to someone else; that just rewards bad performance. On the next call, give them a different scenario. Let’s say you role play with “I’m looking for a 2004 Camry. What do you guys have down there with low miles?” At some point, that sales person makes a mistake. On the next call, change it up. “I’m looking at an ad you’re running on a Camry for $249. How is that car equipped?” This keeps your people on their toes. You want them thinking. If you keep

hammering on the same scenario each time they’ll simply learn what you want them to say like parrots. The goal is for the person you’re working with to make it ALL the way through a call. Every time that person makes a mistake you start over until a successful conclusion.

A = AccountabilityYou can’t expect what you don’t inspect. With all the services available to help you monitor inbound sales calls, it has never been easier to hold your people accountable.

M = ManagementEvery team needs a coach. With any training you embark on, your management is the key. It makes absolutely no sense to train your sales people and not train your managers. Everyone must be on the same page.

The bad news is there are absolutely no short cuts to being successful or being good at anything. This includes your dealership’s effectiveness on the telephones. The good news is that there’s plenty of hope for your people. It comes in the form of Education, Training, Accountability and Management. The best exclusive you can have in your market is a well-trained sales staff. Train your people to do the jobs they were hired to do.

For a free trial of Alan Ram’s interactive training system call or e-mail me with the information below.

Alan Ram is the president of Proactive Training Solutions. He can be contacted at 866.405.6404, or by e-mail [email protected].

AlanRam

39january 2007

Commitment is CoolAnd what’s even cooler is how it can lead you to remarkable results. One of the great myths of top performance and

big success is that it’s all about motivation. It’s motivational speakers and motivating sales people and paying the price and blah, blah, blah.

News fl ash: Motivation is temporary. Success in anything demands the constant of commitment - yours.

Commitment is stronger than motivation. But before you can commit, to anyone or anything, you must believe. Walt Disney once said of making dreams come true, “When you believe in a thing, believe in it all the way, implicitly and unquestionably.”

Commitments are a big part of personal development - and life and work and relationships and getting the most from each. It’s just another reason why personal development is so, well, personal. Because some of the things I’ve committed to might not hold the same personal value to you. And visa versa.

Commitment means you resolve to do what it takes on a consistent basis, even when you don’t feel motivated. Like today. Or maybe tomorrow. What have you committed to that means no matter how you feel you’re keeping on? Your marriage? Parenting? Your work? Selling? Reading? Listening? Writing? Teaching? What have you committed to?

The clues of success are yesterday’s wisdom and today’s revelation all rolled into one. They are historic clues and visionary thinking. But the reason you absolutely must be something or see something or become something is personal. And it requires a commitment on your part to arrive at your desired destination.

Become a History MajorHistory can give you the model to high achievement: the clues, the stories, the successes, the way others did it. The only thing you shouldn’t accept from history is why it’s never been done before. That’s the limitations of the past. And this is The Future. The impossible is done everyday, somewhere. You could be next in line for breakthrough success.

Epictetus was onto something in the second century. “First say to yourself what you would be; and then do what you have to do.”

How can you become better at commitment? Make it Personal. Here’s my short list:

Commit to BeginningBeginning to do what you’ve never done to become what you’ve never been. Beginning is exciting. It’s an adventure to start something. At least try looking at it from that uncommon perspective. The clichés of the masters aren’t all clichés. It is true that you don’t have to be great to start something, but you do have to start something to become great.

Commit to ThinkingWhat if Napoleon Hill were right? Think, and grow rich. What if there really was something to Sir Isaac Newton’s answer to the question on how he discovered the law of gravity? “I thought about it all the time.” How about Ralph Waldo Emerson’s clue, “We become what we think about all day long?” Hmmm. The evidence begins to pile up when you become a good student. Think. Deeply. And then capture your thoughts on paper. Before you know it, you’ve got a vision and written goals on how to get there.

Commit to GivingGiving makes you bigger than you are. The more you give, the more you pour out, the more life will be able to pour into you. What are you thankful for? What have you been given in life? And how do you measure what you have?

Try measuring your worth not in dollars or possessions, but the things in your life for which you would not take money. Priceless things not for sale at any price.

Commit to LifeDon’t trade living for existing. Want the rest of Michael’s List of The 10 Commitments? E-mail me.

Michael York is an author and professional speaker. He can be contacted at 800.668.5015, or by e-mail [email protected], or visit www.MichaelYork.com.

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JimYoung

Getting a Head Start:Planning Your Direct Mail Marketing for the New Year



Marketing in January and February can be tricky. Many dealerships will virtually shut down their advertising until

the last week of the year, counting on that week to salvage their December and propel them into January. By the time the smoke clears late in the fi rst week of January with month- and year-end close out, these same dealers fi nd themselves scrambling to set up programs for January and February. Some dealers even write off the fi rst two months of the year as “slow times” and don’t set up marketing efforts at all. Here are a few suggestions to make sure you start the year with your marketing up and running.

Be PreparedDo your homework and book your direct mail programs and be ready for January and February. If you have your mail programs set and ready to go when January begins, you won’t be scrambling. Set your budget ahead of time. Work with your mail house to design your program for prime, sub-prime and/or service. Select your mail pieces, leads and times to send out mail in advance. Your mail house is only as good as you allow them to be, and rushing turn-around time makes it tough on everyone. Take advantage of the resources you have available to you with

your mail house and use the leads that work best for you and your market.

Time For Sub-PrimeSub-Prime efforts with direct mail and lead generation programs can be a foundation for your business in the early months of the year. Many dealerships look at sub-prime as an afterthought, treating that end of the business as a burden and the profi t it generates as a lucky bonus. Particularly in the months leading up to tax time, sub-prime direct mail generates the strongest response of any direct marketing program. People don’t stop buying

this time of the year. Trigger lead programs are a way to reach market buyers on a daily basis and farm the prospects of your closest competitors immediately. As always, these programs yield some of the best gross profi ts in car sales today, so don’t leave them out of the mix.

Catch Them SleepingIf you have worked your direct mail and lead generation programs, you will most likely have a good head start on the year. Pre-booking your programs for January and February will allow you to take advantage of the competition that is still suffering from year-end hangover. Many of your competitors will not have a plan in place for the early part of the year or will be out of the game entirely. Now is your chance to make hay while they sleep. Those dealerships that market only during the summer when “business is good” deserve to go hungry during January and February. Use direct mail and market farming products like trigger leads to contribute to their starvation. By the time other dealerships catch up, those customers will be driving around with your logo on their vehicle.

Jim Young is the sales and marketing coordinator for Allegiant Marketing Group. He can be contacted at 866.883.6669, or by e-mail at [email protected].

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Brand YourselfDavidThomas



How would you like to brand yourself as the “Honda Guy,” the “Mercedes Lady,” or the “Ford Truck Guy”? How would you like

to be recognized and mentioned everywhere you go as “The Car Person,” the automotive “go to” guy/gal?

Branding yourself can make you more money than your name ever will. But do you know how to brand yourself? How do you become the expert? How do you become the topic of conversation at social events?

Here are some tips: 1. Be proud of your product and occupation. If you don’t believe in your product and yourself, no one else will. 2. Eat, breathe and wear your logo. Do you proudly wear your company brand on your leisure time? 3. During social events, etc, buy a

couple of extra shirts and give them to key centers of infl uence to promote you and your product. 4. Drive what you sell. Consider using valet parking at key social functions and tipping a little extra to park your car in front for some great exposure. It’s a rolling billboard. 5. You must enjoy talking about cars. Even after a 12-hour day at the dealership, be enthusiastic and ready to discuss cars at dinner and social functions. This could be your best source of prospects and referrals. 6. Get involved. Give back to your community. Volunteer. Choose to involve yourself in an organization that you will enjoy participating in. You will be rewarded for your energy and efforts with exposure and recognition. 7. Show appreciation. Let everyone know that you really appreciate their referrals and that you need them.8. Budget for self-promotion. Set aside

$50 to $100 per month for personal advertising and self-promotion expenses.

Some examples are:• Ad in community bulletin• High school program • Church, PTA or Alumni Newsletter• Classifi ed ad• Radio traffi c spot sponsor• Charitable event or auction

Ask yourself, “What group can I identify with, that I will gain from repeated association with?”

Make an investment in your future sales. Above all, ask yourself every day, “What can I do to meet new people and promote my love of selling cars today?”

David Thomas is the owner of Subaru of Dallas. He can be contacted at 866.429.6803, or by e-mail [email protected].

45january 2007

Ask yourself the following questions:• How do you currently communicate with your customers?• How effective are

your marketing efforts? What do you like or dislike about your marketing?• What do you do to retain and grow your customer base? Are you satisfi ed with your results?• What percentage of your customer base do you have e-mail addresses for? What are you doing with them?• What are you doing to know exactly which advertising efforts are generating repeat business or new leads?

Here are some statistics that can help you evaluate your current owner communication strategy and service reminder program. This is market research on 800 dealerships, across all brands and makes.

On Average, Out of 100 Customers: • 28 customers are loyal to the dealership• 32 customers purchased a vehicle from

the dealership and never set foot into the service department

• 40 customers visited the dealership one or two times for service and defected

Today, most of a dealership’s communications programs are solely focused on the 28 percent of your customer base, which means that you are missing a tremendous opportunity to drive the other 72 percent into your dealership. What we know is that if you do not capture a customer by the eighth month, you will have a less than 1 percent chance of getting them to come back to your dealership.

Bottom line, it’s important that you begin with customer segmentation, and then tailor your marketing efforts to your customers with like characteristics – create targeted communications. Your growth and profi tability will depend on your ability to send the right message, at the right time with the right medium. And, the 72 percent proves to be of greatest value, with the highest advantage to get them to return and help increase your owner loyalty and profi ts.

A loyal customer with a good customer experience is six times more likely to repurchase from you again. If you want to infl uence future purchase behavior and increase owner loyalty at the same time, it’s

Customer Segmentation:

Increasing Retention and Profi tability

MelissaRimoldists fos ls ms sf fi s

marketing solution

important to understand the various behaviors, and segment them into like characteristics.

Valuable Tips:1. Better Allocation of Resources - First

access your database and run data analytics. Look at time and mileage, service history, contact information and other metrics to help you deliver the right communications strategy.

2. Lower Marketing Costs – Ensure that more than half of the campaigns are e-mail; various studies show that 83 percent prefer e-mail versus any other communication because it’s non-intrusive. Continuous e-mail append is a tremendous value to add approximately 20 percent new e-mails to your current database. This will allow you to be more targeted by deploying highly personalized communications that are relevant to where your customer is at in their ownership lifecycle.

3. Customer Retention – Increase the benefi ts of immediate customer follow-up after a sales and/or service event transaction to gain visibility when a customer is satisfi ed or if the customer needs additional follow-up to resolve an issue. Take timely action to react and respond accordingly to recover your customer and increase customer retention and satisfaction.

4. Increase Sales – Establish a tactical sales and marketing approach to build trust and credibility through highly personalized and targeted communications. This will help you allocate marketing dollars to those activities that produce results, increase response rates and lower expenses from reduced wasted expenses.

Find a solution that is designed to help you more effectively and effi ciently reach customers through various mediums, including e-mail marketing, voice broadcasting, text messaging, and direct mail. The future of marketing is beginning with customer segmentation and connecting intelligent, feature rich technology and innovation into a single solution to retain and regain customers.

Melissa Rimoldi is the vice president for Business Development and Strategic Alliances at MarketView 360. She can be contacted at 866.883.9262, or by e-mail at [email protected].

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How about this for New Year’s resolution: “I will make my sales people fi nancially successful. I am going to develop a culture

of success in my dealership. I will take full responsibility in the development and implementation of a bulletproof process in my dealership. I am going to win.”

Result-Based Management vs.Behavior-Based ManagementThe Webster’s Dictionary defi nition of “manage” is “to direct or carry on business affairs in order to achieve one’s purpose.”

Historically, most sales departments have focused predominantly on managing department issues. In order to truly maximize the opportunities available to a sales department, the performance issues must rank as management’s top priority.

To sharpen focus on managing performance, the following working defi nition is recommended: “Performance management” is managing the daily activities of each sales person for effective consistent accomplishment.

The defi nition of “sales management” is ensuring the individual success of each sales person. This will not happen without performance managers.

Sales Force Control Systems“Control system,” by defi nition, is an organizational set of procedures for directing, monitoring, evaluating and compensating its staff.

By accident or design, a control system infl uences employee behavior, ideally, in a way that enhances the welfare of both the dealership and employee.

There are two major sales force control systems and management formats:

1. One that monitors the fi nal results of a process.

2. One that monitors individual stages and behaviors in a process.

Each system or management format affects the sales person’s thinking, motivation and behavior.

The central premise in a dealership is that

dealers, managers and sales people have different goals:

• Dealers/managers desire increased profi ts for the department and business.

• Sales people desire increased personal income.

This lack of agreement places dealers, managers and sales people in confl ict.

What is Required to Reach Resolution? 1. Redesign of the control system or

management format that realignsincentives and daily work practices of the dealers, managers andsales people.

2. The addressing of two major questions.

• What does it take for the sales people to balance their individual orpersonal needs with the demands or needs of customers, dealers andmanagers?

• What does it take for the dealers/managers to balance their dealership needs with the demands or needs of the customers and sales force?

To answer these questions, the two control systems or management formats must fi rst be described.

What Have We Doneto Our Sales People

EricMélonsts fos ls ms sf fi s

leadership solution

It is all about hiring the right behavior, developing the right behavior and managing the right behavior. It is up to you to make your sales people shine. This is a defi ning moment. You will either defi ne the moment, or the moment will defi ne you. You control it.

Eric Mélon is the vice president of First Dealer Resources LLC and corporate trainer for Millennium Automotive Protection. He can be contacted at 866.652.3969, or by e-mail [email protected].

Relatively little monitoring of the sales people by management.

Results (units and gross) are used to evaluate and compensate sales people.

Sales people are left alone to achieve results in their own way, using their own strategies - held accountable for their outcomes (units and gross), but not for how they achieve the results (work activity accomplishment and behavior).

Sales people are made entrepreneurs; responsible for their outcome, but free to select the methods of achievement.

Considerable monitoring of theactivities and results of sales people.

Aptitude, skill level, product knowledge levels and effective

accomplishment of work activity are used to evaluate and compensate

sales people.

Active managers monitor, direct and involve themselves in the activities and operations of the sales people.

Managers usually have a well-defi ned idea of what they want sales people to

do and work to ensure that the sales force effectively accomplishes the

work activities with the appropriate work behavior.

Sales people are expected to conduct daily business in alignment with the

dealership vision and strategy.

Result-Based Management Behavior-Based Management


It is all about hiring the right behavior, developing the right behavior and managing the right behavior. It is up to you to make your sales people shine.

48

DeliaPassi

How to Start Off Winning



People like to do business with people they like. The encounter stage is all about making them comfortable and establishing rapport.

With women, this is more important than it might seem. In fact, how you handle the introduction and breaking the ice will determine if she feels comfortable enough to move forward to the next step. If you do not create the proper fi rst encounter, you will have a diffi cult time making up for it through the process; you will have reduced your chances of converting her to a customer before you have barely begun.

A fi rst impression is formed in less than one minute. Remember that the sale begins even before you say hello. It begins when she enters your offi ce building or as she opens the door and meets you for the fi rst time.

So take a minute to take an imaginary walk in her shoes. What immediate experience does she have? Are your surroundings inviting? Is

she greeted by a friendly receptionist? Does your offi ce or waiting room impart credibility, reliability and trustworthiness - or do you need to revamp?

What if you are meeting her for the fi rst time outside of your offi ce? Then your physical being is her fi rst encounter with your organization, so there’s a heavier burden on you personally to be well dressed and groomed. Don’t forget, women will assume that the way you conduct yourself away from your offi ce refl ects how you behave in your work. Being on time speaks volumes to most people about whether they can trust you in business.

Now greet her. Don’t forget that a clear sign of respect is that you shake the hand of the person standing closest to you fi rst and then proceed to shake hands with any others. Remember to shake her hand fi rmly but not hard, simply fi rm enough to denote respect and that you are truly pleased to meet her. Give everyone - including her and anyone else who might be accompanying her - your card.

Of course, it is assumed that you recognize the importance of appearance and manners. A smile, a sincere handshake and looking her in the eye as you are speaking all need to take place.

To help you better understand what it takes to truly resonate with women, answer these questions honestly. If you can answer “yes” to all, then you are off to a good start:

• Are you likeable?• Do you make a good fi rst impression?• Do you come across as warm and

genuine?• Do you smile enough?• Do you know the protocol when

meeting female prospects? • Do you typically break the ice by fi nding common ground?

So now the sales process you recognize begins. Remember that for women especially, trust results in sales, and the sooner she trusts you, the sooner you will close the sale and move forward with a viable long-term relationship. According to research, association counts when it comes to women. They appreciate being on common ground. Family and community associations are great conversation starters—that is one big reason why it is important to keep signs of family and community involvement in your offi ce. Simple comments, such as “I hear you have

a 12-year-old son; my daughter is just turning 13. Great and challenging years ahead I’m led to believe,” can help you get to common ground. One fi nancial producer shared that he likes injecting humor into common areas of interest. Women do enjoy good humor - who doesn’t? - and it quickly puts you on the same wavelength.

Getting off on the right foot is the foundation for success, whether your sales process happens in minutes or months. How you initially break the ice and make a connection will mean the difference in your pocket. Let’s assume that you are a car sales person. When a woman walks into your showroom, do you give her a chance to browse fi rst or do you approach her upon her arrival and introduce yourself? Most of the time, women will appreciate having a sales person approach them fairly quickly because they tend not to be as comfortable in the dealership sales process. This is your chance to put her at ease and begin the introduction process that will make her recognize from the start that you are the sales person she wants to work with. Here’s an example of how you can approach her.

“Welcome. Thank you for visiting our showroom. My name is John Pederson and I would be delighted to answer any questions or just discuss our products. May I ask your name?”

Of course, we’re making the assumption that you recognize the importance of appearance and mannerisms. A smile, a sincere handshake, looking her in the eye as you are speaking and handing her your card during the introduction should have all taken place. Next is to use her name as you begin to ask her questions. Making her comfortable and at ease with you as a person is critical so you can move to the next step - seeking information.

ChecklistThings you must do:

• Make a good fi rst impression (appearance).

• Be on time.• Maintain eye contact.• Offer your card.• Remember to smile.• Be aware of your environment.• Use ice breakers.

Delia Passi is the president and CEO at MedeliaCommunications. She can be contacted at 866.883.4953, or by e-mail at [email protected].

www.sellingsuccessonline.com

Anytime a customer walks through the door of virtually any automobile retailer in the country, they are

greeted in much the same manner: “Hi. How are you doing today? Can I help you?” It’s no surprise then that the response is nearly always the same” “No, thank you. I am just looking.” The customer’s automatic response – a defense mechanism – kicks in. Increase your sales by being prepared in advance. Consider this: If the sales person had said, “Welcome, I’m Joe Smith and my job today is to help you select a vehicle, and get you a price. Is that OK with you?” This simple change opens the door and allows Joe Smith to use his well-honed sales techniques to steer the conversation through browsing, into a demo drive, and ultimately a sale – today, tomorrow or even next week.

Doing business starts with the sales person’s understanding that their primary responsibility is to select the right car for each individual buyer. It’s all about asking the right questions – questions to which, the majority of the time, the sales person already knows the answer. A careful strategy includes questions that are direct but non-confrontational or pushy, and that deliver specifi c information that builds on the sales person’s ability to move the process forward.

Ineffective Approach: Sales person: Hi can I help you?Customer: No, thanks. I’m just looking.

Effective Approach:Sales person: Welcome, I’m Joe Smith and my job today is to help you select a car and get you a price. Is that OK with you?Customer: Sure. I’m just looking.

Sales person: No problem. What models are you looking at?Customer: I’ve been thinking about a new pickup truck.Sales person: Great. How would you be using the truck – more for fun and adventure or more for hauling and work-related activities?

By asking specifi c questions, the sales person will learn immediately about the type of car, potential uses, the style and feeling the customer is seeking. It allows the sales person to present the right solutions and to steer the customer into a demo drive. Ultimately, the demo drive becomes part of the product presentation; it’s not an option.

Ineffective Approach: Sales person: Do you want to take a demo drive?Customer: No, not now.



Never Ask a Question If You Don’t Already Know the Answer


RichardLibin

51january 2007

Effective Approach:Sales person: Let me show you some features of the vehicle to make sure it meets your needs. Customer: OK.

This allows the sales person to then continue with the rest of the product presentation. Asking the right questions encourages customers to answer in a way that gives direction on how the sales person can help resolved uncertainties, and in the end, sell the car.

Ineffective Approach: Sales person: Is the price right? Customer: No.

Effective Approach:Sales person: Other than the price, is this the right vehicle for you? Customer: Well, actually, I don’t like this color.

This exchange should immediately alert the sales person that the customer has not truly selected a vehicle. Without this crucial fi rst step, the price will never be right. The color will not be satisfactory, and the sale will not be closed. At this point, the sales person must go back and help the customer select the right vehicle.

When the deal reaches the price discussion stage, most sales people negotiate pricing with their managers. This makes customers feel abandoned and takes them out of the loop.

Ineffective Telephone Approach: Manager: Does the customer like the car? Sales person: Yes.Manager: Did he/she take a demo drive?Sales person: Yes.

Customers perception: I’m not involved, I am being talked around and left out of the pricing discussions. Plus, the manager is only getting the sales person’s perception. Effective Telephone Approach:Manager: Ask the customer, “Have we selected the right vehicle?”Sales person: My manager wants to know if we selected the right vehicle. Customer: Yes.

Customer perception: I am involved in this conversation and have input into the fi nal

outcome – the manager and sales personwant to listen to me.

Keep in mind, the sales person is an agent of the customer and an agent of the dealership – a double secret agent. Asking the right questions helps ensure the customer selects the right vehicle. By asking questions that provide clear information needed to direct the sales process, dealerships can avoid lengthy

negotiations and confl icts that typically end without a sale. Remember, it’s not what you say, but how you say it.

Richard F. Libin is president of Automotive Profi t Builders, Inc. He can be contacted at 866.450.6853, or by e-mail [email protected].

continued

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leadership solution

In today’s ever-c o m p e t i t i v e environment, service managers who experience continuous growth in customer

pay work and profi tability are managers equipped with a specifi c business model strategy plan by design, not by default.

The entire dealership management team and its employees should participate in designing a dealership business strategy model plan. The primary focus and objective should be to keep every customer returning to the service department throughout the lifetime cycle for all routine maintenance, including brakes and tires.

Fixing Your People FirstThe fi rst step in any effective training process is to obtain an acknowledgement, buy in and commitment from the employees that the dealership’s current business model needs to change to meet the needs of today’s customers.

Employees need to be educated and aware of effective ways to keep customers loyal. With the proper care, customers will return back to the dealership, for not only warranty work, but customer pay work, as well.

On the employees’ behalf, the dealer principal and management team have an obligation to educate and provide professional training to all employees on these subjects. Employees’ livelihoods are dependent upon the future growth of the variable and fi xed operations business.

The future success and profi tability of automobile dealerships depends on the ability to keep customers retained to the dealership service department after the warranty period has expired.

Integrated Sales-Service-Parts-Body Shop Management Effective training starts at the top, meaning the dealer principal must be committed, involved and supportive in helping every manager in every effort to prevent customer defections and grow the business. First we need to establish what the common target is as a team, because dealership managers usually have different targets and goals.

For instance, the dealer principal may be worried about department profi tability, the sales manager is focusing on how many vehicles were sold this month, the service

manager is worried about shop production hours and the parts manager is concerned with the parts gross profi t. Although all these goals are worthy, they do not focus on keeping customers loyal.

All departments need to share common goals and act as one team in designing and implementing business growth strategies plans aimed at achieving three objectives: Vision, Value and Mission.Values - What the dealership believes inVision - What the dealership wants to become in the futureMission - What the dealership does to make a difference to keep customers and employees

Are You Really Listening to Your Customers?Get the answers to these questions from your customers:• How can our service department make

it more convenient for you to visit our dealership?

• What method of communication do you prefer (e-mail, telephone or postal mail) when it comes time for us to remind you of your maintenance needs?

• Would you consider using our dealership when it came time to replace your brakes or tires?

• If not, would you mind if I asked why you would not consider us?

• Would you like us to perform a “Free Vehicle Inspection” on your vehicle on every visit?

• Would you like us to present all maintenance and/or repair items that may require attention on every visit, with no obligation on your part?

• Can you offer us any suggestions when attempting to phone into our dealership?

• Would you like us to be able to provide a specifi c time that your vehicle will be completed for you, at the time of service write up, rather than just “Drop your car off at 8 a.m. and pick it up at 5 p.m.”?

• If we could perform all your vehicle routine maintenance requirements in 30 minutes, rather than just performing an oil change in 45 minutes, would you visit our store?

• Will you continue to have your maintenance performed at our dealership after your warranty period expires?

To keep customers coming back throughout the lifetime cycle, start asking them questions that matter to them. Ask the customer politely and sincerely, and they will take the time to

offer their suggestions on improving your business. The best part is it doesn’t cost you anything to do that.

Understanding Why Customers Defect From Their Selling DealershipGenerally, the majority of customer defections can be attributed to the behavior, action or lack of interest regarding a customers concern. Somewhere along the line an employee projected an image that the dealership didn’t really care about that customer’s business. It may have been in the form a dealership employee being rude, impolite or simply not returning a telephone call.

This is why every employee in the dealership must understand and be trained in what is required to maintain and keep customers returning back to the service department after the sale of the vehicle. The average automobile dealership service department retains about 20 percent of their customers over a four- to fi ve-year period.

Customer’s perceptions are that the dealership service department is too expensive and inconvenient. Customers are fi nding other establishments that can meet their maintenance needs, such as Midas, Firestone, Jiffy Lube, and Wal-Mart. These franchises are no longer strictly in the muffl er or tire business. They have redesigned their business model to become “Full Vehicle Maintenance Experts.” The independents do an excellent job of marketing themselves to your customers.

This means automobile dealerships have a great opportunity to increase their customer pay market share. In order to do so, they need to change their business model and strategy process. Since this is a permanent market change, dealers can greatly increase their profi ts by making this change.

The customer retention training process starts with “educating and training” your customers during the sales delivery process. Someone needs to inform customers that their vehicles will require routine maintenance and that the dealership would love to earn their routine maintenance business.

People would much rather do business with the selling dealership if the service department can meet their needs.

Steve LaPenta is the president of Dealer Automated Systems, Inc. He can be contacted at 866.652.3968, or by e-mail at [email protected].


800.861.5461 www.jandlmarketing.com

J&L Marketing knows that every dealership reaches it’s potential in a diff erent way. Th at is why we off er three diff erent roads to success - all with intense benefi ts!

1Events

Case Study: Missouri Chevrolet Dealership

• 3-Day, high impact sales promotion (no outside sales teams).

• As an appreciation of past business, previous customers were invited

to the dealership to take advantage of year-end savings.

• Dynamic website created for each customer.

• Increased response rate

• Gathered valuable data for future mailings

• Built credibility and provided additional information

• Produced instant internet leads with qualifying

information

• E-mail blast

• Increased response rate

7,500 mailed

93 respondents (1.24% during three days)24 sold (25.81% during three days)

Numbers do not include additional responses and number of vehicles sold from the

Internet and phone prior to event dates.

Contact one of our Business Growth Strategists at 800.861.5461 to discuss how each of these programs and others can be used in your dealership to produce amazing results!

23

Weekly Campaigns

Hybrid Events

Case Study: Pennsylvania Hyundai Dealership

• Appointment-based sales strategy where customers call to set a

60- minute presentation with a member of the sales team.


• Allowed customers to schedule appointments on their own

time, increasing response rates

• Built database with customer information for future

mailings

• Produced instant internet leads with qualifying information

• Drives quality appointments into the dealership during the slowest

times of the week.

1,501 mailed

25 respondents (1.67%)10 sold (40%)

• Pre-registration program for previous customers that utilized direct

mail and personalized dynamic websites.


• Captured customer’s buying interests

• Follow-up postcard

• Used as a reminder to customer of appointment.

• Follow-up 3D mailer

• Used as a reminder to customer of appointment.

• HTML E-mail confi rmations

• Used to repeat customer’s information back to them

and remind them of appointment.

11,267 mailed

108 respondents (.96% during three days)21 sold directly from mail piece, prior to event date (19.44%)60 sold during event dates (55.56%)81 total sold, not including follow-up

Case Study: Tennessee Honda Dealership

I want to do everything in my power to guarantee you show up at our NADA booth this year in Las Vegas to talk about (possibly) the

most important breakthrough discovery J&L’s come up with in the last 15 years.

After spending the last few years rethinking the tired question of how to go about attracting buyers into your dealership and multiplying

your traffi c in today’s vastly changed automotive retail climate – I’ve come up with some very startling and refreshing answers.

Th is year at the NADA Convention in Las Vegas booth 2725, we’ll be launching the fi rst-ever J&L Move, Crush, Count Program.

Calling it advertising is a disservice. Calling it a marketing plan is an understatement. Calling it a direct mail program is an insult.

What it is is a step-by-step, totally-integrated cutting-edge system for increasing your showroom traffi c by 50% almost instantly!

Don’t take my word for it – look at some of the case studies to the left to see what just a few of the dealers who participated in our

two-year pilot tests produced.

Th e marketplace today is totally diff erent than it was even two years ago. Th e marketing that used to work no longer does. Th e

approaches we used to use no longer deliver the 20-ton mega-punch that they used to – on their own. Th ey need to be incorporated

into an all-new philosophy and all-new mindset and all-new series of actions and all-new integrated super traffi c generating strategy.

Th ousands of dealerships like yours were sent an invitation to attend booth 2725. If you did not receive your invitation, here is your

last chance to get paid $100 for just 30 minutes of your time.

Call Sarah Amburn now at 800.861.5461 or e-mail her at [email protected] and schedule the day and time most

convenient for you at NADA. You will receive $100 cash on-the-spot just for doing so. Th is is for general managers and owners only!

My highest regards,

Scott T. Joseph

Attention: Dealers Visiting Vegas!

Dealers everywhere are raving about a NEW revolutionary breakthrough - instantly increasing showroom traffi c 50%!

We are extremely excited to introduce this incredibly profi table traffi c producing strategy to you at NADA –

and we will pay you $100 cash on-the-spot just to see it!

move the crowd. crush the competition. count the money.

BOOTH

2725

The Art of RecruitingDixonJudd




For anyone in a sales organization - meaning if a product or service has to be sold for your future to continue - then

you have probably at least heard the word “recruit” if you are not already living it.

It applies to literally everyone in the organization, and yet too many times individuals don’t understand this or the organization itself views it as an evil that is forced upon it. Recruiting, just like every other aspect of sales, starts with attitude fi rst. With clear goals and a business plan in place, recruiting can be the heart and soul of the passionate pursuit of your goals and objectives. If we understand that nothing stays the same and that none of us can accomplish our goals alone, then recruiting becomes the external fl ag waving that rallies everyone to our cause. The individuals and companies that embrace this and make it a part of their everyday activity thrive as a result, every time. In fact, great recruiting can overcome many inadequacies.

Look around you right now, and name the top three entities in your market place. Name their top three people. Now ask yourself “Were they born at the top? How long have they been in the business? How long have they been at the top?” Have you been surprised to see any of them get there and stay there in spite of themselves? Are you in the top three in your market? The fact is that no one started there, nor does anyone have a 99-year lease on that position. Once this is understood, the light bulb goes on and it becomes clear that success is no respecter of persons. Literally anyone can choose to compete at the highest level and then set out to get there and stay there. A successful recruiting system will be key to this. In fact, it can be a huge accelerator in getting there and maintaining that position.

Some situations call for a focused, ongoing recruiting effort to even survive. College sports would be one example; even the national champions in any college sport know that players graduate and move on, usually sooner rather than later, not to mention that injuries will occur. If there is not a culture of winning supported by fresh recruits, then the success will be short lived. Sales organizations happen to be another industry that requires a consistent commitment to recruiting in order to compete at the top. If we follow the path of very successful sales people or very successful companies then this becomes more obvious. What happens to the top three? Usually they are promoted, bought out or create their own dynasty. Tomorrow’s champions are being decided right now. Have you decided to compete at your highest level?

The best defense against erosion over time, burn out and competitors is to have a proactive, ongoing and robust recruiting effort. You have probably had the opportunity to work at organizations that were both good and bad examples of this. The situations that stand out in everyone’s mind are the

ones where someone caught fi re and led a very successful charge. Most of the time, they were not the ones with the most talent or resources in the beginning of their quest for prominence. Their competitors and gravity add additional resistance. For those of us who have had the pleasure to be part of something big, it is really exciting to witness and participate in. Everyone wants to be on the winning team.

As the New Year is upon us and the topic of market share and growth in the New Year are being talked about, my challenge to you is this: Be the person in your world that leads the charge. Whether you’re an army of one or one of many, grab your fl ag and let the world know your goal to grow and dominate in your market. Recruiting starts with recruiting ourselves to our own cause, then, as we work to spread the word to others, it becomes more and more contagious.

Recruiting has it’s own skill sets and, when approached with a proven system, then it becomes an art form. A system that is endorsed from the top down will include everyone in the organization, be measurable and communicate that this is a long-term endeavor, not a once-in-a-while activity. Lead by example in your organization and watch as the electricity builds. Find a few success stories to follow and use them as your inspiration on your own personal journey to the top. Starbucks Coffee and Keller Williams Realty are two great examples of market dominance obtained by recruiting and a commitment to competing at the top. The moment of decision is the most critical moment in the life of any top performer. Decide to compete at your highest level.

Dixon Judd is a Partner in Your Success at Performance Resource Group. He can be contacted at 866.883.4916, or by e-mail at [email protected].

Recruiting has it’s own skill sets and, when approached with a proven system, then it becomes an art form.

There is something special about Jan. 1 that gives people the feeling of a fresh start and a new beginning. As the calendar

changes, millions of ordinary people around the globe take the opportunity to refl ect on the past 12 months and resolve to make changes in the new year ahead. Although the majority of these resolutions fall by the wayside long before the groundhog even has a chance to see his shadow, the practice of reassessment is a necessary instrument for making positive changes in one’s life.

It may be hard to admit to ourselves, but we are all in need of change. Some people may say they have “no regrets” or “wouldn’t change a thing” about their life. But a closer look reveals that attitude is blind and self-serving. There is great power in confession – to ourselves, to God and to others. Accepting responsibility and acknowledging the need for spiritual guidance is ultimately a healthy step on the road to righteousness.

“Break up your unplowed ground and do not sow among thorns.”Jeremiah 4:3

A New Year’s Resolution:Break Up Your Unplowed Ground

JesseBitersts fos ls ms sf fi s

leadership solution

Tilling the earth may not be a part of your day-to-day routine, but these words universally relate to the lives of even the most urban of city slickers. Common sense dictates that the more “land” put into production, the more prosperous one can be. But what percentage of our lives is actually producing something of value? Perhaps there are areas in your life that may reveal some “unplowed ground.” Faith can help to cultivate these untapped areas, enabling you to enjoy a more bountiful harvest in life.

Keeping with the agricultural analogy, what exactly is involved with preparing the unplowed ground in your life? The fi rst thing one must do is to assess what had previously grown in these areas. Hatred, bitterness, lust, greed, hedonism and others all need to be rooted out so a new crop can be planted and grow in the light.

Next, one must look at the hardness of the ground to be planted. Painful past experiences can work to harden one’s heart. This may be a very diffi cult task, but the hardness of heart must be broken up for the new seeds to have a chance to fl ourish. The good news is that Christ is willing to do the hard work on your behalf. As long as you

We need them. They need us. We need you.

It’s that simple.

®

®

direct Him toward those hard places in your heart that need help, He will pull the plow and break up old resentments and heal old wounds.

There is one fi nal step in preparing your fi eld for planting. When ground is untilled for many years, it often becomes covered with thorns and weeds. Pride, anger, selfi shness, greed, addictions and other thorns have a devastating effect on the crop that God wants to grow. These thorns must be gathered and burned for your new seeds to prosper.

“The one who sows to please his sinful nature, from that nature will reap destruction; the one who sows to please the Spirit, from the Spirit will reap eternal life.”Galations 6:8

If God is the center of your New Year’s Resolution, it has a chance to beat the odds – as long as you are committed. If it is God’s will for something to be fulfi lled, He will enable you to fulfi ll it. Happy New Year.

Jesse Biter is the president and CEO of HomeNet, Inc. He can be contacted at 866.239.4049, or by e-mail [email protected].


59january 2007

Car Sales 101: A Case Study

MarkTewartsts fos ls ms sf fi s


The time had come for my wife to get a new vehicle. Let’s take a look at the good, bad and ugly of

her experiences. What occurred during her visits is a microcosm of what happens in automobile dealerships every day.

My wife decided to look at several different vehicle options. She visited three dealerships to look at vehicles. At two of the three, the sales people seemed to ignore her as she looked at vehicles on the lot. Maybe it was because my wife had just been at the gym and had gym clothes and a sweatshirt on – Mistake No. 1.

At two of the dealerships, the sales person never asked my wife’s name – Mistake No. 2. None of the sales people offered a test drive or much of a demonstration – Mistake Nos. 3 and 4. Only one of the sales people asked for my wife’s number before she left so they could follow up with her – Mistake No. 5. All three of the sales people did not treat her as she could or would buy the car by herself – Mistake No. 6. All of them made sure to mention to bring her husband back and they would make me a good deal – Mistake No. 7. Two of three did not follow up after the visit because they did not get the phone number – Mistake No. 8. Two of the sales people took repeated cell phone calls during the time they were with my wife – Mistake No. 9.

The next day my wife and I just happened to stop and look at one other vehicle she had not previously seen. The sales person did not make any of the mistakes mentioned above. He greeted us promptly, he made quick rapport and he asked questions. The sales person treated my wife with respect and gave her the most attention since it was going to be her vehicle. The sales person made friends with my son and related well to him. The sales person gave an energetic and long presentation/demonstration. The sales person presented and negotiated the purchase professionally. He made the sale. The delivery was handled with attention to detail and my wife was made to feel special in her purchase. My son was given a special teddy bear at delivery. The sales person

followed up with a phone call, a thank-you card and a dealership introduction letter.

Was the sales person that made the sale doing extraordinary and super-human things? Was this sales person using special and secret sales techniques with magic-bullet closes? The sales person was executing the basics of selling - THE BASICS.

The good news is that nine times out of 10, the basics are all that is needed. The bad news is that so many knuckle-head sales people aren’t giving even a whiff of effort or professionalism to their jobs and their customers. For the sales people who do the right things, selling becomes easy because you have so little real competition. So many sales people whine, bellyache and moan and groan about how competitive the market is and how price is the only reason people buy. The whiny sales person cries that you can’t

make gross profi t or resulting income.

Show me any industry or fi eld without tons of competitors. Show me any industry where some of the players aren’t using price as their main weapon. Every industry has these environments. The reality is that none of those things matter. You are faced with MOTs (Moments of Truth) everyday. In those moments you either choose to win or you choose to lose. Go back to the basics and do what you know to do and are trained to do. If you treat people at a higher level than you ever have and you remember that the word “sell” means “to serve,” you will sell as much as you can handle. Competition and price matters will wane. You will win and win big.

Mark Tewart is the president of Tewart Enterprises. He can be contacted at 866.429.6844, or by e-mail [email protected].

IMN Loyalty Driver™ is a turnkey e-marketing service that drivesinterest, sales and customer loyalty. Customized, trackable emailcommunications provide tangible results for dealerships acrossthe country. A couple of examples:

• 15 test drives scheduled within the first hour after anIMN Loyalty Driver e-newsletter was sent.

• 90 phone calls in a month as a direct result of one IMNLoyalty Driver e-newsletter.

Looking for results like these? Call 866.964.6397, ext. 214 or email [email protected].

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> Matt Lamoureux, Acton Toyota

“Our website traffic spiked

to2.5

times its normal rate.”

Visit us at booth 3881C at NADA 2007

PattiWood

Six Steps to a Great Presentation at Your Next Meeting, Part 1



Want to make sure you do a good job running your next meeting?Over the next two months, we’ll go over six simple steps to

take to make sure you get your point across clearly and effectively.

1. Start DifferentlyThe speaker starts the meeting with a shouted, “Good morning! How are you this morning?” A few people respond with a half-hearted “good morning” while several others roll their eyes with derision. The speaker looks displeased. He admonishes the audience with, “You can do better than that. Louder!” The audience, pummeled into kindergartener-kid submission, responds with a louder “good morning,” peppered with nervous laughter from those that can’t believe they made fools of themselves so early in the day.

This is not how you want to start your next presentation. This is the same old boring speech beginning you have had since your sour-faced fi rst-grade teacher stood in front of her chalkboard.

Don’t start your speeches with “Good morning,” “Good afternoon,” “Good evening” or “Hello, my name is….” We have heard all those beginnings before and, when an audience hears it come out of your mouth at the beginning of your speech, they expect that the next thing out of your mouth is going to be equally as tired. You can certainly say “hello” and introduce yourself later to the audience, which means you introduce yourself after you have their attention. Start your speech, however, with something that will surprise your audience so they will think, “Wow, I wasn’t expecting that. I wonder what else this speaker has up her sleeve? I’d better listen and fi nd out.”

Examples of good attention getters could take up an entire separate article, but examples include:

• Reading a sentence from that day’s paper that relates to your topic

• A quote, not a old Ben Franklin quote, but a quote from your four-year-old, or a customer

• A success story from a particular sale last month

• A prop - such as confetti money, a toy sail boat or a poster of Cancun - as an incentive to increase sales

Remember: Have an attention-getter that is novel and unique.

2. What do They Need?When preparing your presentation, ask yourself what your audience needs. Not what just what your boss thinks they need, or, if you are the boss, what you’re interested in at the moment, but what they truly need. Think of what you can give them that perhaps no one else can. If you are not sure what they need, ask them before the meeting. Research shows that the needs of people are the same for presentations as they are during any selling process. Make sure you say out loud in the fi rst fi ve minutes the answers to the common needs questions: What’s in it for me? How can I make practical use of this on a daily basis? What is the benefi t for me? Won’t this cause more work for me?

Think of your audience members as channel surfers holding their personal remote control. Imagine the audience fl ipping through the meeting seeing if there is anything worth their time. If you speak to their needs, they stay on your station.

3. What is the Point? Ever sit in a meeting and have no idea what

point the speaker was trying to make as they wandered from subject to subject? Or have you seen someone start with an agenda and then go off on a tangent, never to return? When you are the speaker you must have one clear agenda. You need an overall plan. What is your purpose, what is the one point that you want to make? Most speakers in meetings make the mistake of talking on a topic rather than speaking with a clear purpose in mind. If you say, “I am going to talk about sales this month,” you are talking on a topic. The meeting participants don’t know what the point is. “Is he going to blast us about our poor sales?” they wonder. “Is it going to give us some feedback on our performance?” they guess. They don’t seem to know why they are being spoken to on that topic, so they guess. Guessing can get them confused, or turn them off. Even handing out an agenda may not help. They may ask “Why is he talking on those three topics? What’s the point?”

You need to say, “You are going to learn the three steps to bring up sales. Let’s talk about the three things we did well last month and the two things we need to improve on for this month.” Suddenly, the audience knows what the point is. Ask yourself what do you want the audience to know, see, feel or do as a result of hearing you speak at this meeting. What’s the point?

Next month we’ll look at three other steps you can take to be your best at the podium.

Patti Wood, MA, CSP is a professional speaker, author and coach at Communications Dynamics. She can be contacted at 800.849.3651, or by e-mail at [email protected].



Four Pillars of Prospecting


sales and training solutionDirkZeller

For prospecting success in the long term, apply the four disciplines that are common to those who consistently achieve their goals.

1. Set a Time and Place for ProspectingYou can’t work your prospecting around your day; you have to work your day around your prospecting. You have to establish the habit and engage in the discipline of prospecting on a daily basis and from a controlled environment where your prospecting tools are available and readily accessible. To paraphrase from the 1960’s hit Batman, prospecting success is all about “same bat time, same bat channel.”

In my private offi ce, I set up a prospecting station that included a stand-up area, a computer, and telephone with a headset. Tacked on one wall were scripts for use when contacting expired listing and FSBO prospects, past clients, those in my sphere of infl uence and prospects I reached via

cold calls. On another wall I posted all of my objection-handling scripts, including a few options for each objection. This kept me prepared for any direction the conversation took and allowed me to avoid fumbles.

Knowing that body language comprises 55 percent of the power of communication, even when communicating by phone, I kept my intensity and focus high by standing up. The headset – which I consider an absolutely essential prospecting tool – enabled me to keep my hands free, so I could gesture or accentuate points as if I was speaking directly to my prospect in person.

When making an investment in a headset, don’t get the cheapest one you can fi nd. Spend a few hundred dollars to get one of high quality. Otherwise, you’ll end up with such poor sound quality that your prospect won’t be able to hear you clearly – hardly a formula for prospecting success.

2. Fight Off DistractionsThe truth is most sales people welcome

distractions that take them away from prospecting obligations. An inbound phone call, a problem transaction, a sales question, an incoming e-mail, a sales person who wants to talk, a broken nail – anything will do. It’s called creative avoidance, and sales people generally excel at the art.

Whether you’re just starting out or you’re a top seller in your dealership, distractions never just go away. In fact, the best sales people have even more potential for distraction because of the volume of business, the number of staff people, the number of customers, and the scope of responsibilities they juggle. The difference between prospecting avoidance and prospecting success comes down to a simple question: What do you do when the distractions hit? Do you postpone prospecting while you put out a fi re? Do you decide to make just a few calls to settle the pending issue? Do you justify not starting your prospecting at the appointed time? If you said “yes” to any of those questions, you are practicing creative avoidance.

63january 2007

To fi ght off distractions, you have to bar their access:

• Turn off your e-mail, so the “you’ve got mail” icon doesn’t tempt you.

• Ask the receptionist to take messages for inbound calls during your prospecting session.

• Turn off your cell phone and pager.• Put a sign on the door that basically says,

“Don’t bother me; I’m prospecting.”• Tell anyone who asks for a meeting

during your prospecting period that you already have an appointment, because you do – working to fi nd a potential prospect.

3. Follow the PlanSuccess boils down to taking the right steps in the proper order. To get your prospecting steps and order correct, you must have and follow a prospecting plan. You must know who you are going to call and for what reason. The best approach is to set up each day’s prospecting plan a day in advance.

If you wait to put your prospecting plan together at the beginning of your prospecting session, chances are too high that you will talk yourself out of more calls than you make. Your mental process will get in the way of action, causing you to think things like “They will think I’m calling back too soon…” or “They won’t buy or sell right now…”.

If you establish a plan in advance, you’ll be ready for action, rather than for double guessing. Follow these steps:1. Do your research, establish your plan,

and set up for the next day’s prospecting a day in advance. Before you leave your offi ce for the day, determine the prospecting calls you are going to make on the next day. Assemble everything you will need for the calls and put the information on your desk, so it is ready for your attention as soon as you walk in the door.

2. In the morning, quickly review your calls and your daily goals. A word of caution: Don’t take too long. You could be setting yourself up for creative avoidance.

3. Spend 20 minutes before you make the call practicing scripts, dialogues and objection-handling techniques. Establish a pre-call routine and create a pattern or plan that you repeat over and over again before each prospecting session or call. As an analogy, think of how professionals warm up before performances. Whether you’re watching musicians, actors or athletes, you expect them to be fully prepared and ready to go when their concerts, plays or games begin. Follow the same rule. Warm up in advance, so that by the time you pick up the phone, practice is over, and

you’re ready for the real thing.4. Review a few affi rmations like:

• “I am a great prospector.”• “When I prospect, people love to talk

with me and set appointments with me.”

• “I will generate leads and appointments before I am through today.”

You are now ready to start with focus, intensity and an expectation of success.

4. Be Faithful and Finish What You StartStay faithful to your daily objectives by completing all of your prospecting contacts

down to the very last one.

When you are running a race, you have to run the whole way. No one remembers who was ahead at the 80-meter mark of the men’s 100-meter race at the Olympics. The winner has to complete the full circuit before he can claim his medal.

Don’t drop out early; fi nish what you start.

Dirk Zeller is the CEO of Real Estate Champions. He can be contacted at 866.883.9314, or by e-mail [email protected].

continued

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