Bill Playford

Company: DealerKnows Consulting

Bill Playford Blog
Total Posts: 14    

Bill Playford

DealerKnows Consulting

Jul 7, 2017

Giving All Consumers a Chance to Drive

Once in a blue moon, I get contacted to share my opinion on things that aren’t necessarily related to DealerKnows. Somewhat randomly, Mega Dealer News wanted an opinion regarding a fractional ownership service. For those who follow me on social media, you know that I have strong feelings towards the Mobility Movement, so I was obliged to share them. Before we get to the article, I’d like to preface it a bit.

During January 2016 I wrote a post titled You Don’t Have to Like It where I explored some changes that were brewing in the future. Since that post was written, my feelings towards the Mobility Movement have solidified. Between the time that I jotted down those feelings, we’ve taken on a client in the space, and that client was acquired by an OEM. Eighteen months, people. Too much has happened in the way of investment from the Silicon Valley juggernauts to the automotive supplier conglomerates to the manufacturers themselves to stop the tides of change. At the time of this writing, Apple has more available cash than the combined market capitalizations of GM and Toyota combined. If you don’t think there is enough intellectual and financial capital available to completely disrupt the current vehicle distribution model, I have some lovely oceanfront property in Nebraska for you.

It’s not all doom and gloom. For those dealerships who embrace the change, it’s going to be like winning the lottery. The boat anchors of negative equity, bad credit, and high insurance costs could become relics of the past. The complicated, yet sizable, market of lower-income Americans can once again be tapped into without the reliance on alternative financing. This can still be a gold mine…that is until a new gold mine comes along.

***

Higher car payments, rising insurance rates, expensive vehicle repairs and congested areas with too little parking available will eventually become a luxury for millions of people, according to an auto industry consultant.

These reasons are why a subscription car service, such as Flexdrive, may find consumers racing to sign up. Cox Automotive, the same company that brings consumers Autotrader and Kelley Blue Book, recently entered into a joint venture with Holman Enterprises as shared owners of Flexdrive, a new mobility company that enables consumers to subscribe to a vehicle, rather than buying or leasing it.

Bill Playford, vice president of DealerKnows Consulting, told Mega Dealer News that ventures such as Flexdrive are developing because new vehicles are increasingly out of reach to the average American, especially considering the type of vehicles consumers are demanding.

“Customers who aren’t good candidates for leasing are having to turn to long-term financing – up to 84 months – to get to an affordable payment,” Playford said. “Objectively speaking, these changes are out of the manufacturers, retailers and consumers’ hands. It’s something that we all have to contend with, and it’s part of a much larger shift.”

A vehicle subscription service likely will benefit dealerships for at least a short period.

“It will help dealerships better address the need for late-model used vehicles that better reflect market demands,” Playford said. “Instead of having to rely on off-lease manufacturer vehicles and fleet auctions, dealerships will have access to their own vehicles once they are out of subscription service. They can either choose to keep them or offer them up for sale to dealerships where subscription penetration is minimal, thus creating a completely new market for vehicles.”

However, a shift from ownership to subscription will essentially remove the need for the traditional retail model.

“Banking on a diverse inventory mix, multiple service bays and palatial dealerships will be a thing of the past,” Playford said. “As in other industries, this dramatic shift will create a ripe opportunity for a startup (Uber), a non-automotive entity (Google), or the manufacturers themselves (GM/Lyft) to cut the dealership out of the equation entirely. It only makes sense for the large dealer groups and vendor conglomerates to move first during the transition phase. In essence, it allows the traditional players to keep what is theirs before it gets taken away from them completely.”

Also, this concept will go a long way in improving customer perception, Playford said. Likely, the shift will move from everything being about price to convenience and customer experience.

“Does the customer want a Holiday Inn, Marriott or Montage experience?,” Playford asked. “Dealerships (or any organization involved in the space) gets to decide on how they’d like to compete, without the notion of having to gamble money on back-end profit and service loyalty to ensure the customer feels like they got a fair deal. It’ll take time for dealerships to unlearn the behaviors that were successful in the past. Those who do will cash-in on automotive’s future.”

With any new innovation comes questions and potential negative consequences.

Playford said those in the automotive industry will be wondering, “How long will investors and shareholders be willing to wait before this model reaches critical mass? Can fleets scale with demand? Will vehicles always be available when people actually want them? How fast will these vehicles depreciate, and will there be any demand to purchase retired units (will the cars just be considered sunk cost at some point)? Will the future of the industry end up with a Microsoft Zune or an Apple iPod?”

Playford predicts densely populated areas, such as New York City, its neighboring New Jersey boroughs, the San Francisco Bay area, Boston, Washington, D.C., and Chicago, will be “waiting in line” to get in on a subscription service.

“The privilege of parking a vehicle in these cities can exceed what a working underprivileged person makes in a year,” Playford said. “As these services become more ubiquitous (and thus more cost competitive), usage should increase across all income levels, with the higher income levels moving from two or more daily-driven vehicles to just one and lower income strata getting rid of their vehicles altogether.”

Early and continued growth should also be expected in American technology centers, such as Seattle, Austin, and Denver, due to the high concentration of innovators, non-traditional workforces, and extremely diverse populations in those cities, Playford said. “Detroit should be thrown in the mix because, like it or not, they’ll still be the motor city, no matter what,” Playford said.

The first Holman franchise to offer consumers the ability to “flex” is Flexdrive of Cherry Hill, New Jersey, located about 10 miles outside of Philadelphia.

Through Flexdrive, consumers can subscribe to a car via a mobile app within minutes and drive away without worrying about insurance, maintenance or any other expenses that typically come with buying or leasing a vehicle, according to Cox Automotive. Drivers can swap vehicles at any time, giving them the flexibility they crave without committing to a long-term contract.

Flexdrive aims to address the pain points of vehicle purchasing, vehicle ownership, and vehicle disposal. Subscribing doesn’t require a down payment or a credit check. Also, weekly and monthly payments cover maintenance, roadside assistance, and insurance, according to Cox Automotive.

***

Does this mean the end of car dealerships? Absolutely not. However, it does mean that dealerships who aren’t already adapting, may be too late to make the necessary changes. To quote Alexander Graham Bell, “when one door closes, another opens; but we often look so long and so regretfully upon the closed door that we do not see the one which has opened for us.” Over 5,000 retail stores are slated to close through the first half 2017. That’s almost as many that closed during the entire Great Recession year of 2008. You don’t have to make the same mistakes.

Bill Playford

DealerKnows Consulting

Vice President

1586

3 Comments

Jul 7, 2017  

What would your advice to salespeople be to ensure their future in this business, Bill?

C L

Automotive Group

Jul 7, 2017  

I don’t think services are lost on auto dealers or OEM’s. There are a lot of moving parts that go into running any subscription service like this when it comes to insurance, payment, etc. 

GM launched Book by Cadillac earlier this year 

https://www.bookbycadillac.com/#group1

i don’t have any details of how well it is or isn’t doing. But, I see OEM’s adding this option to the traditional purchase, lease options. 

I know I’d be will to pay a little more to not have to worry about insurance, registration and have the ability to switch out cars at my leisure.  

 

Jul 7, 2017  

@Chris, ya know I probably would see value in that as well.. :-/

Bill Playford

DealerKnows Consulting

Jan 1, 2011

Stop Being that Guy: Change the Culture of Car Sales

Normally, I have the topics of my blog posts picked out well in advance of posting, however this month I can’t stop thinking about the events that are happening right now. During the last few months of last year, and the first couple weeks of 2011, I’ve been involved in some eye-opening conversations. The subject matter of these conversations is now a matter of public discussion (or amusement?). Whether you’re pointing and laughing, or disappointed, we need to realize that we can be our own worst enemy.

One of the reasons I got involved in the car business is that I wanted to help improve the negative reputation car salespeople have. A variety of polls conducted over the years have shown car salespeople to be viewed among the least honest and ethical of any professionals. While some of the sources are questionable, the granddaddy of pollsters, Gallup has shown in a recent poll that car sales people are tied with lobbyists as the least trusted of professionals. Congratulations us.

I’ll admit it’s bad form to send someone off a blog post before it’s finished, but do me a favor: run a Google image search for car salesman (or just follow this link). What do you see? Is that you? Are you the guy smoking the Grenadier? Are you the guy with the Mr. T gold chains? Are you the guy with the plaid suit? Didn’t think so. Unfortunately, this is how people see us.

So, what are we doing to fix it? Apparently, we’re adding more fuel to the fire.

I’ve certainly seen some questionable car sales practitioners over the years, but I’ve also seen a lot of good ones, too. The funny thing is that you don’t hear much about the good folks. Certainly the nefarious ones have customers who are more than vocal about their dissatisfaction (their customers are friends and family to everyone else, by the way). For some reason or another, you don’t hear much about the sales people with strong moral fiber. Or the sales people, who are youth ministers, involved in 4H, participating in Relay for Life, volunteering at animal shelters, or have served their country overseas. Or how about the professionals who have not only read the blogs, but have developed their own expertise, created their own strategies, and have shared their own success with others. We all work with people like this, or at minimum, have made their acquaintance. Why don’t we hear more about them?

Instead of learning more about exemplary sales people, we get to hear and read about new consultants who seemingly pop out of the woodwork. Unfortunately, the term consultant is a bit ambiguous in the retail automotive world. In the rest of the business world, as well as in health care and the public sector, a consultant typically possesses subject matter expertise and pedigree that is well beyond what can feasibly be attained in-house. Look at the executive leadership of Accenture, Deloitte, and Booz Allen Hamilton, to name a few. These folks are among the very best the world has to offer. Our industry, on the other hand, is wrought with empty-chested, fly-by-night “experts”, who glorify the negative stereotypes, charge exorbitant fees, plagiarize material, and seem to multiply by the month.

This is what I find most troubling. The dealerships who have recognized the need to change, and decided to commit considerable resources to bringing in a consultant have to choose from “experts” who fit the negative stereotypes they need to change.  How exactly do you expect to overcome these pejoratives if you continue to contract the same type of people who ruin reputations in the first place? Moreover, how can dealers hire them in good conscience when there are videos on YouTube of them publicly flaunting their jewelry, McMansions, and sports cars?

The true measure of a consultant’s success is not what they have financially accomplished themselves, but what their clients have financially accomplished on their behalf.

In the spirit of full disclosure, I too possess some of the above items. I wear a (1) gold chain, and, from time to time, wear an aspirationally branded Swiss watch. The gold chain (and the gold crucifix that hangs from it) was given to me by my deceased grandfather after I went on a pilgrimage to see the Pope sixteen years ago. I’ve only taken it off for medical reasons. The watch I purchased several years before I was in the car business when I was doing due-diligence at a venture capital firm during the go-go dot-com days. I’ve acquired my fair share of material possessions over the years, but you won’t see me flaunting them on YouTube (you’re welcome). I take far more pride in the results I have achieved on behalf of my clients.

Whether you are new to the business or have been involved at multiple levels for many years, it is our burden to overcome these stereotypes. How do we do that? We can start by:

  • Offering consistent and outstanding service.
  • Overwhelming customers with honesty.
  • Educating customers with information that is not available online.
  • Adding so much value that we are indispensable to our customers.
  • Sharing personal details about ourselves.
  • Participating (regularly) in our communities.
  • Supporting causes.
  • Hiring manageable people.
  • Working with skilled trainers that produce verifiable results.
  • Resembling the nurses, military officers, pharmacists, and teachers who have strong professional reputations (and who are our customers).

If we do these things every day, we can surely start to chip away at the negative reputation we’ve given ourselves.

If you want to keep reinforcing these stereotypes, just keep dressing yourself like a Kay Jewelers vomited on you. Keep asking customers if they are calling about the (nonexistent) specials. Keep practicing the underallow/overallow numbers game. Keep on not using your CRM/ILM to capture important personal information. Keep flaunting your material wealth (and general douchebaggery) on YouTube. Keep winking sweet nothings at the camera.  Keep promoting yourself as an expert when you haven’t been recognized as one.  Keep doing these things… and let those of us who want to be recognized as respected professionals blow right by you.

 

Bill Playford

DealerKnows Consulting

Vice President

7349

No Comments

Bill Playford

DealerKnows Consulting

Jan 1, 2011

Stop Being that Guy: Change the Culture of Car Sales

Normally, I have the topics of my blog posts picked out well in advance of posting, however this month I can’t stop thinking about the events that are happening right now. During the last few months of last year, and the first couple weeks of 2011, I’ve been involved in some eye-opening conversations. The subject matter of these conversations is now a matter of public discussion (or amusement?). Whether you’re pointing and laughing, or disappointed, we need to realize that we can be our own worst enemy.

One of the reasons I got involved in the car business is that I wanted to help improve the negative reputation car salespeople have. A variety of polls conducted over the years have shown car salespeople to be viewed among the least honest and ethical of any professionals. While some of the sources are questionable, the granddaddy of pollsters, Gallup has shown in a recent poll that car sales people are tied with lobbyists as the least trusted of professionals. Congratulations us.

I’ll admit it’s bad form to send someone off a blog post before it’s finished, but do me a favor: run a Google image search for car salesman (or just follow this link). What do you see? Is that you? Are you the guy smoking the Grenadier? Are you the guy with the Mr. T gold chains? Are you the guy with the plaid suit? Didn’t think so. Unfortunately, this is how people see us.

So, what are we doing to fix it? Apparently, we’re adding more fuel to the fire.

I’ve certainly seen some questionable car sales practitioners over the years, but I’ve also seen a lot of good ones, too. The funny thing is that you don’t hear much about the good folks. Certainly the nefarious ones have customers who are more than vocal about their dissatisfaction (their customers are friends and family to everyone else, by the way). For some reason or another, you don’t hear much about the sales people with strong moral fiber. Or the sales people, who are youth ministers, involved in 4H, participating in Relay for Life, volunteering at animal shelters, or have served their country overseas. Or how about the professionals who have not only read the blogs, but have developed their own expertise, created their own strategies, and have shared their own success with others. We all work with people like this, or at minimum, have made their acquaintance. Why don’t we hear more about them?

Instead of learning more about exemplary sales people, we get to hear and read about new consultants who seemingly pop out of the woodwork. Unfortunately, the term consultant is a bit ambiguous in the retail automotive world. In the rest of the business world, as well as in health care and the public sector, a consultant typically possesses subject matter expertise and pedigree that is well beyond what can feasibly be attained in-house. Look at the executive leadership of Accenture, Deloitte, and Booz Allen Hamilton, to name a few. These folks are among the very best the world has to offer. Our industry, on the other hand, is wrought with empty-chested, fly-by-night “experts”, who glorify the negative stereotypes, charge exorbitant fees, plagiarize material, and seem to multiply by the month.

This is what I find most troubling. The dealerships who have recognized the need to change, and decided to commit considerable resources to bringing in a consultant have to choose from “experts” who fit the negative stereotypes they need to change.  How exactly do you expect to overcome these pejoratives if you continue to contract the same type of people who ruin reputations in the first place? Moreover, how can dealers hire them in good conscience when there are videos on YouTube of them publicly flaunting their jewelry, McMansions, and sports cars?

The true measure of a consultant’s success is not what they have financially accomplished themselves, but what their clients have financially accomplished on their behalf.

In the spirit of full disclosure, I too possess some of the above items. I wear a (1) gold chain, and, from time to time, wear an aspirationally branded Swiss watch. The gold chain (and the gold crucifix that hangs from it) was given to me by my deceased grandfather after I went on a pilgrimage to see the Pope sixteen years ago. I’ve only taken it off for medical reasons. The watch I purchased several years before I was in the car business when I was doing due-diligence at a venture capital firm during the go-go dot-com days. I’ve acquired my fair share of material possessions over the years, but you won’t see me flaunting them on YouTube (you’re welcome). I take far more pride in the results I have achieved on behalf of my clients.

Whether you are new to the business or have been involved at multiple levels for many years, it is our burden to overcome these stereotypes. How do we do that? We can start by:

  • Offering consistent and outstanding service.
  • Overwhelming customers with honesty.
  • Educating customers with information that is not available online.
  • Adding so much value that we are indispensable to our customers.
  • Sharing personal details about ourselves.
  • Participating (regularly) in our communities.
  • Supporting causes.
  • Hiring manageable people.
  • Working with skilled trainers that produce verifiable results.
  • Resembling the nurses, military officers, pharmacists, and teachers who have strong professional reputations (and who are our customers).

If we do these things every day, we can surely start to chip away at the negative reputation we’ve given ourselves.

If you want to keep reinforcing these stereotypes, just keep dressing yourself like a Kay Jewelers vomited on you. Keep asking customers if they are calling about the (nonexistent) specials. Keep practicing the underallow/overallow numbers game. Keep on not using your CRM/ILM to capture important personal information. Keep flaunting your material wealth (and general douchebaggery) on YouTube. Keep winking sweet nothings at the camera.  Keep promoting yourself as an expert when you haven’t been recognized as one.  Keep doing these things… and let those of us who want to be recognized as respected professionals blow right by you.

 

Bill Playford

DealerKnows Consulting

Vice President

7349

No Comments

Bill Playford

DealerKnows Consulting

Nov 11, 2010

The Passion of a Car Salesperson

Like some of you, I am just getting caught up from nearly two weeks of conference action in Vegas. After attending and participating in three conferences (I only know a few who stayed for four!), my head was left full of charts, graphs, concepts, and ideas. Beyond the sensory overload from all of the content, one thing became abundantly clear to me: I was surrounded by people with passion. Pure, unbridled, go-tell-it-on-the-mountain, passion. Hearing people tell their story, wildly gesticulating with their excitement. The enthusiasm was contagious!

Many of us have passions in life. For some, it’s the outdoors. For others, it’s sports. Still for others, it’s working in the garage. You can debate for hours about the best way to rebuild a carburetor. You work tirelessly on your fantasy football team at all hours of the night. You spend weeks scouting out the best place to put a deer blind. You have rooms dedicated to mounted fish, classic Fords, and the New Jersey Devils.

I’m one of the guys who’s extremely passionate about his career. I love what I do! I rarely ever stop thinking about how I can improve processes, discover efficiencies, or make people more productive. I’m bouncing ideas off my friends in the industry all of the time (and they are always bouncing ideas off of me). I know my wife wishes I’d take a break in the evening, but she tolerates it because it’s what I do. I feel like the car business found me and I’m going to give a 100% back.

I know many of you, however, don’t feel that same passion. Maybe you feel like you are stuck in a dead-end job or someone around you constantly drags you down. Well I have bad news for you: your customers can hear it, see it, and feel it. How are they going to tell you “yes” when all they see is ‘no’? Unfortunately, the car business is not one of lateral moves. You’re either productive or you’re packing.

If you’re lacking that passion, you don’t need to get a prescription. I’ll leave the pills to Pfizer, Glaxo, and Bayer. I’m merely suggesting you change your outlook on what you do for a living. When asked, I’m guessing most of you would say that you sell cars for a living. I would argue that the sale is the end result of what you do. Before that vehicle puts rubber to the road, rolls over the curb, and starts killing bugs (did I miss any?), you need to sell yourself first. If the customer is not buying what you’re saying, then you have a tall hurdle ahead of you.

So how do you change your outlook? It’s actually pretty simple. Start thinking about what you really do every day. You’re not some robot that picks up the phone, pecks away at the computer, and shuffles papers around. You’re a cheerful voice after a hard day at work. You help people save their hard earned money. You are your own business. You assure people that they are making good decisions. You’re solving people’s problems. You make lasting friendships. In some cases, you’re even helping people achieve their life’s aspiration. You’re not selling cars: You are changing people’s lives!

Now I can hear the skeptics out there now saying that I’ve read too many books (and some other things that can’t be written here). To the naysayers, I say give it a shot. Talk to your customers with the same energy you would talk about college basketball during March Madness. Remind yourself that you are providing a valuable service to people. Sometimes it’s simpler than metrics and technology. Sometimes it’s the simplest things that can make all of the difference. What do you have to lose?

Bill Playford

DealerKnows Consulting

Vice President

10870

No Comments

Bill Playford

DealerKnows Consulting

Nov 11, 2010

The Passion of a Car Salesperson

Like some of you, I am just getting caught up from nearly two weeks of conference action in Vegas. After attending and participating in three conferences (I only know a few who stayed for four!), my head was left full of charts, graphs, concepts, and ideas. Beyond the sensory overload from all of the content, one thing became abundantly clear to me: I was surrounded by people with passion. Pure, unbridled, go-tell-it-on-the-mountain, passion. Hearing people tell their story, wildly gesticulating with their excitement. The enthusiasm was contagious!

Many of us have passions in life. For some, it’s the outdoors. For others, it’s sports. Still for others, it’s working in the garage. You can debate for hours about the best way to rebuild a carburetor. You work tirelessly on your fantasy football team at all hours of the night. You spend weeks scouting out the best place to put a deer blind. You have rooms dedicated to mounted fish, classic Fords, and the New Jersey Devils.

I’m one of the guys who’s extremely passionate about his career. I love what I do! I rarely ever stop thinking about how I can improve processes, discover efficiencies, or make people more productive. I’m bouncing ideas off my friends in the industry all of the time (and they are always bouncing ideas off of me). I know my wife wishes I’d take a break in the evening, but she tolerates it because it’s what I do. I feel like the car business found me and I’m going to give a 100% back.

I know many of you, however, don’t feel that same passion. Maybe you feel like you are stuck in a dead-end job or someone around you constantly drags you down. Well I have bad news for you: your customers can hear it, see it, and feel it. How are they going to tell you “yes” when all they see is ‘no’? Unfortunately, the car business is not one of lateral moves. You’re either productive or you’re packing.

If you’re lacking that passion, you don’t need to get a prescription. I’ll leave the pills to Pfizer, Glaxo, and Bayer. I’m merely suggesting you change your outlook on what you do for a living. When asked, I’m guessing most of you would say that you sell cars for a living. I would argue that the sale is the end result of what you do. Before that vehicle puts rubber to the road, rolls over the curb, and starts killing bugs (did I miss any?), you need to sell yourself first. If the customer is not buying what you’re saying, then you have a tall hurdle ahead of you.

So how do you change your outlook? It’s actually pretty simple. Start thinking about what you really do every day. You’re not some robot that picks up the phone, pecks away at the computer, and shuffles papers around. You’re a cheerful voice after a hard day at work. You help people save their hard earned money. You are your own business. You assure people that they are making good decisions. You’re solving people’s problems. You make lasting friendships. In some cases, you’re even helping people achieve their life’s aspiration. You’re not selling cars: You are changing people’s lives!

Now I can hear the skeptics out there now saying that I’ve read too many books (and some other things that can’t be written here). To the naysayers, I say give it a shot. Talk to your customers with the same energy you would talk about college basketball during March Madness. Remind yourself that you are providing a valuable service to people. Sometimes it’s simpler than metrics and technology. Sometimes it’s the simplest things that can make all of the difference. What do you have to lose?

Bill Playford

DealerKnows Consulting

Vice President

10870

No Comments

Bill Playford

DealerKnows Consulting

Oct 10, 2010

Dodgem

For most of us, the fair season has come and gone. As I’m writing this, my son is at the county fair in the rural Michigan town where my wife and I grew up. Like most fairs in the Midwest, it’s all about 4H and Future Farmers of America; kids showing off their pigs, goats, and cows (consequently, my niece’s rabbit is Grand Champion). Like most other fairs in the Midwest, local businesses set up shop, politicians are there to shake hands, and all of the food is available on a stick. The car dealers all come armed with Mustangs, Duramaxes, Chargers, and the omnipresent balloons.



Then there are the carnival rides. Personally, I don’t ride anything that can be assembled overnight. The kids, however, go crazy over them. The one ride that always intrigues me most is bumper cars, or Dodgem, as it’s known in fair parlance. There are always three or four maniacal, fuzzy lipped, teens chasing down a dozen other people.  One would think the whole point would be to live out one’s favorite traffic jam fantasy, and just plow through everything that gets in the way. That’s where the intrigue comes in: everyone drives away from each other.



As I mentioned in a previous post, I perform a lot of mystery shopping. One of the biggest fumbles I consistently see is that dealer personnel don’t ask questions in their email responses. Over these last few weeks, I’ve come to realize that most dealer personnel don’t seem to be good at answering questions either. A lot like Dodgem, a customer tries to bump their email into a dealership, only to have his or her efforts dodged.



First, let’s put ourselves in the customer’s comfy shoes. As John and Jane Customer, we work hard for our money and we don’t want to pay anything more than we should. We go to the Gap when things go on sale, and we go out of our way to Costco to get a 55 gallon drum of shampoo to save a few pennies per ounce. When it comes to cars, we are blissfully unaware of dealer allocations, regional option groups, and targeted residuals. Our grandpa was somehow able to order a L72 big block Malibu with dog-dish wheels and no air conditioning. When we drive by the dealership, we see an endless sea of vehicles with infinite possibilities. 



Now let’s get back to reality. As dealer personnel, we know that manufactures build what they want, when they want. Our dealers still shotgun it and order what they think people want. In all actuality, most customers have no idea what they really want. This is how many good salespeople make great careers by becoming a valuable resource to their customers, then their customers’ families and friends. They know all of the subtle intricacies and help their loyal customers select the right car.



Is there any reason why the digital-age should change this? Absolutely not! If a customer was sitting in front of you and asked if a Grand Cherokee had full-time four wheel drive, you’d explain the difference between Quadra-Trac I, Quadra-Trac II, and Quadra-Drive II. But somehow in the email world, the response is “…we have plenty of Grand Cherokees to choose from. When can you come to the dealership to drive one?” Why not just answer the question: “The new 2011 Grand Cherokee is equipped with three highly sophisticated AWD systems. Are you looking for something to take you through the snow or do you plan on going off-roading? I can walk you through which system might be right for you” (that response took 57 seconds to write). Which email do you think is going to solicit a response quicker?



Before you sell a car, you need to sell yourself, sell your dealership, and sell an appointment. If Toyota is not building Spruce Mica Tundras, let the customer know it. If Honda only ships two-wheel drive Pilots to your region, say so. If Fiestas with manual transmissions are in short supply, then give the customer a heads up. Facing these questions head-on allows you to build rapport, add value, and start a dialogue. It makes you that valuable resource, thus making it much easier to sell yourself, sell your dealership, and sell an appointment.



The next time a customer emails you a question, think about bumper cars. Imagine your competition driving away madly from potential customers, while you square up for a head-on collision. Think about what you know and what the customer doesn’t. Make yourself indispensable in the shopping process. Now take your right foot, slam down the pedal, and go in for the hit!
 

Bill Playford

DealerKnows Consulting

Vice President

1348

No Comments

Bill Playford

DealerKnows Consulting

Oct 10, 2010

Dodgem

For most of us, the fair season has come and gone. As I’m writing this, my son is at the county fair in the rural Michigan town where my wife and I grew up. Like most fairs in the Midwest, it’s all about 4H and Future Farmers of America; kids showing off their pigs, goats, and cows (consequently, my niece’s rabbit is Grand Champion). Like most other fairs in the Midwest, local businesses set up shop, politicians are there to shake hands, and all of the food is available on a stick. The car dealers all come armed with Mustangs, Duramaxes, Chargers, and the omnipresent balloons.



Then there are the carnival rides. Personally, I don’t ride anything that can be assembled overnight. The kids, however, go crazy over them. The one ride that always intrigues me most is bumper cars, or Dodgem, as it’s known in fair parlance. There are always three or four maniacal, fuzzy lipped, teens chasing down a dozen other people.  One would think the whole point would be to live out one’s favorite traffic jam fantasy, and just plow through everything that gets in the way. That’s where the intrigue comes in: everyone drives away from each other.



As I mentioned in a previous post, I perform a lot of mystery shopping. One of the biggest fumbles I consistently see is that dealer personnel don’t ask questions in their email responses. Over these last few weeks, I’ve come to realize that most dealer personnel don’t seem to be good at answering questions either. A lot like Dodgem, a customer tries to bump their email into a dealership, only to have his or her efforts dodged.



First, let’s put ourselves in the customer’s comfy shoes. As John and Jane Customer, we work hard for our money and we don’t want to pay anything more than we should. We go to the Gap when things go on sale, and we go out of our way to Costco to get a 55 gallon drum of shampoo to save a few pennies per ounce. When it comes to cars, we are blissfully unaware of dealer allocations, regional option groups, and targeted residuals. Our grandpa was somehow able to order a L72 big block Malibu with dog-dish wheels and no air conditioning. When we drive by the dealership, we see an endless sea of vehicles with infinite possibilities. 



Now let’s get back to reality. As dealer personnel, we know that manufactures build what they want, when they want. Our dealers still shotgun it and order what they think people want. In all actuality, most customers have no idea what they really want. This is how many good salespeople make great careers by becoming a valuable resource to their customers, then their customers’ families and friends. They know all of the subtle intricacies and help their loyal customers select the right car.



Is there any reason why the digital-age should change this? Absolutely not! If a customer was sitting in front of you and asked if a Grand Cherokee had full-time four wheel drive, you’d explain the difference between Quadra-Trac I, Quadra-Trac II, and Quadra-Drive II. But somehow in the email world, the response is “…we have plenty of Grand Cherokees to choose from. When can you come to the dealership to drive one?” Why not just answer the question: “The new 2011 Grand Cherokee is equipped with three highly sophisticated AWD systems. Are you looking for something to take you through the snow or do you plan on going off-roading? I can walk you through which system might be right for you” (that response took 57 seconds to write). Which email do you think is going to solicit a response quicker?



Before you sell a car, you need to sell yourself, sell your dealership, and sell an appointment. If Toyota is not building Spruce Mica Tundras, let the customer know it. If Honda only ships two-wheel drive Pilots to your region, say so. If Fiestas with manual transmissions are in short supply, then give the customer a heads up. Facing these questions head-on allows you to build rapport, add value, and start a dialogue. It makes you that valuable resource, thus making it much easier to sell yourself, sell your dealership, and sell an appointment.



The next time a customer emails you a question, think about bumper cars. Imagine your competition driving away madly from potential customers, while you square up for a head-on collision. Think about what you know and what the customer doesn’t. Make yourself indispensable in the shopping process. Now take your right foot, slam down the pedal, and go in for the hit!
 

Bill Playford

DealerKnows Consulting

Vice President

1348

No Comments

Bill Playford

DealerKnows Consulting

Sep 9, 2010

Why Ask Why?

 

I bought a book a short time ago, and at the top it said: “Ignore this book at your own peril.” The quote is from the best selling author, entrepreneur, and Marvel Superhero Candidate, Seth Godin. Having read most of Godin’s books, I immediately bought the book he was endorsing.

While I won’t bore you with the details of the book (it’s an awesome read), it’s a prime example of buyer motivation. Although I had no intention of buying a book that day, I physically walked into a book store, browsed through the business books (yes I’m a nerd), saw the quote by Godin, grabbed the book, and promptly paid for it. The bookstore didn’t sell the book. The authors didn’t sell the book. The publisher didn’t sell the book. Seth Godin sold the book.

How often are you asking your customers how they heard about your store? How they decided what products to consider? What prompted them to start shopping online? How they heard to ask for you? In fact, how often are you asking questions?

I’ve been actively mystery shopping dealers for the better part of the last five years, and it’s not very often that I’m asked personal questions. I’ve seen plenty of volunteered information about the dealership’s history, the General Manager’s name, and the MSRP of the vehicle requested. It’s not very often that I’m asked if it’s better to communicate via email or phone. I’m rarely asked if I’m considering comparable vehicles. There have been solar eclipses since I was asked how I chose their store.

Why is this question so critical? It’s simple: it gives you instant feedback about how well your customer acquisition/retention methods are functioning. The answers could range from “I was searching the Internet for good deals on Chevys” (that SEO is paying off), to “One of my friends mentioned your name on Twitter “(high-five to the social media gal; get the bird-dog check in the mail), to “I saw your ad in the newspaper” (people DO still read those), to “I’ve bought my last four cars from you! You don’t remember?” (it’s officially time for a new CRM).  Asking this one simple question gives you the pulse on what methods of outreach are working in real-time. As an added bonus, it gives you insight into how your customers make a decision.

If a customer’s cruising Google for good deals, it’s more likely that they are value conscious and not too dealer-loyal. If a customer reacts to a Facebook post from a friend, it’s likely that they are influenced by third parties and that they are looking for objectivity/credibility. If a customer is responding to a newspaper advertisement, they’re more likely to be reactionary and more of a “traditional” shopper. Is it not easier to respond with valuable information when you know which hat to put on? Is it not easier to make investments if you know it’s already paying off?

Although I’m pretty sure I’d turn elsewhere for car purchasing advice, Seth made it easy for me to spend $22. Your customers are following various sources of advice everyday to get that same guidance. These sources of influence are selling your product, selling your process, and selling your dealership. The good news is that it’s much easier to find out who or what these sources of influence are than you think. All you have to do is ask!

Hey, by the way...what made you click on this post?

Bill Playford

DealerKnows Consulting

Vice President

1849

No Comments

Bill Playford

DealerKnows Consulting

Sep 9, 2010

Why Ask Why?

 

I bought a book a short time ago, and at the top it said: “Ignore this book at your own peril.” The quote is from the best selling author, entrepreneur, and Marvel Superhero Candidate, Seth Godin. Having read most of Godin’s books, I immediately bought the book he was endorsing.

While I won’t bore you with the details of the book (it’s an awesome read), it’s a prime example of buyer motivation. Although I had no intention of buying a book that day, I physically walked into a book store, browsed through the business books (yes I’m a nerd), saw the quote by Godin, grabbed the book, and promptly paid for it. The bookstore didn’t sell the book. The authors didn’t sell the book. The publisher didn’t sell the book. Seth Godin sold the book.

How often are you asking your customers how they heard about your store? How they decided what products to consider? What prompted them to start shopping online? How they heard to ask for you? In fact, how often are you asking questions?

I’ve been actively mystery shopping dealers for the better part of the last five years, and it’s not very often that I’m asked personal questions. I’ve seen plenty of volunteered information about the dealership’s history, the General Manager’s name, and the MSRP of the vehicle requested. It’s not very often that I’m asked if it’s better to communicate via email or phone. I’m rarely asked if I’m considering comparable vehicles. There have been solar eclipses since I was asked how I chose their store.

Why is this question so critical? It’s simple: it gives you instant feedback about how well your customer acquisition/retention methods are functioning. The answers could range from “I was searching the Internet for good deals on Chevys” (that SEO is paying off), to “One of my friends mentioned your name on Twitter “(high-five to the social media gal; get the bird-dog check in the mail), to “I saw your ad in the newspaper” (people DO still read those), to “I’ve bought my last four cars from you! You don’t remember?” (it’s officially time for a new CRM).  Asking this one simple question gives you the pulse on what methods of outreach are working in real-time. As an added bonus, it gives you insight into how your customers make a decision.

If a customer’s cruising Google for good deals, it’s more likely that they are value conscious and not too dealer-loyal. If a customer reacts to a Facebook post from a friend, it’s likely that they are influenced by third parties and that they are looking for objectivity/credibility. If a customer is responding to a newspaper advertisement, they’re more likely to be reactionary and more of a “traditional” shopper. Is it not easier to respond with valuable information when you know which hat to put on? Is it not easier to make investments if you know it’s already paying off?

Although I’m pretty sure I’d turn elsewhere for car purchasing advice, Seth made it easy for me to spend $22. Your customers are following various sources of advice everyday to get that same guidance. These sources of influence are selling your product, selling your process, and selling your dealership. The good news is that it’s much easier to find out who or what these sources of influence are than you think. All you have to do is ask!

Hey, by the way...what made you click on this post?

Bill Playford

DealerKnows Consulting

Vice President

1849

No Comments

Bill Playford

DealerKnows Consulting

Aug 8, 2010

Jimi Hendrix is regarded by many as the greatest rock guitarist ever. Innocently enough, he taught himself how to play guitar, practicing many of the same R&B songs his 60s contemporaries grew up playing. He gigged with several local bands around the country, traveled to different venues around Europe, and paid his dues like everyone else. Then one day he turned the volume up to 11. He turned distortion and feedback into harmonies. He experimented with different recording methods. He modified his tools to meet his needs. (If you just teleported in from another dimension, do a YouTube search for Hendrix’s version of the Star Spangled Banner.) He fundamentally altered rock guitar forever.

Technology didn’t make Hendrix great. He was still a prolific guitar player long before the advent of electronic effects and amplification enhancements. He took what was available to him, used his imagination, and made it better. The fact of the matter is that any of us could buy the exact same rig that Hendrix used, and his corpse could still outplay us. Technology doesn’t make you better. You make technology better.

Many of us (myself included), go after the latest and greatest technology as soon as it’s available. We fall into that feeling that if I had this new widget, then I could… In most cases we end up mildly disappointed, lying to ourselves, or locked up in a four-year contract. That new golf club may have increased your drive, but did it profoundly change your handicap? Did that new table saw make a better piece of furniture? Did that new photo editing software make you a better photographer? My guess is that you’ll soon be in the market for a new putter, a new jointer, or a new camera.

The very best tools can be rendered useless without the basic knowledge of how to efficiently maximize their output. How many times has a sports car left your dealership and returned shortly thereafter as a pile of metal, plastic, and rubber? How many times has a pickup come back to the store with broken leaf springs or a caved-in tailgate? How many economy cars are back in service with burnt clutches and bent shift forks? Despite the warnings (and common sense), the inexperienced drivers had to learn the hard way about what their new vehicle could, and could not do. The drivers didn’t take the time to explore their capabilities, learn about their vehicles, or practice what they've learned. 

The same holds true for new dealer technologies. We fall into that same "spend our way out of our novice" approach. We fail to learn about the capability of the tools we already have. We fail to practice the new skills we learn. We fail to become self-sufficient, and rely on our teammates (or rely on a community of experts). We fail to experiment.

What good does it do to create a new website to drive more prospects to an already overwhelmed staff? How much impact can multiple phone numbers have if “when can you come in” is the extent of a staff’s phone skills? What’s the sense of acquiring third party leads just to keep a dealer's staff busy (true story)? Did the technology sell two more cars upon implementation, or was it the $1000 in conquest cash that the OEM offered at the last second?

It’s important that we remain objective regarding new technology. Certainly new systems, methodologies, and enhancements will continue come out. But, just because the big dealers are doing something, doesn’t mean you have to do it too. Take some time to think about how much effort you and your staff will have to put into using a new system. Then think about what you could do by taking the same effort, and dedicate it to training, role playing, learning about the existing system, or practicing phone scripts. You have good business sense. Listen to what your gut tells you about a new technology. For most technology to achieve its full capabilities in your dealership, recognize that its success will be predicated upon the amount of time your staff gives to it. If you're not ready to crack a sweat, then maybe it's not the right time.

Some things will always hold true. Roger Federer will still crush the average tennis pro using a garage-sale wooden racket. LeBron James will still beat most at HORSE while playing barefooted. Jimi Hendrix will forever be a rock legend. Consider new technology when you know your staff has outgrown the tools they already have. They need to be ready to play at volume 11. 
 

Bill Playford

DealerKnows Consulting

Vice President

1438

No Comments

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