I have in the past posted on my opinions of 3^rd Party leads, however in this ever changing Market, and never being afraid to try something new even if it’s actually old, a while ago I signed back up with a provider to conquest leads that were 15-35 miles from my Dealership.

You see the OEM will take those inquiries submitted from a Downtown IP address and give them to my competition even if the prospect should live next door to my Dealership, so I was looking for a specific solution. Over time, we had approximately an 8% closing ratio and things were going well for, as I thought, many of the leads I received actually lived in my PMA and worked in my COMPETITORS. However about 3 Months ago I noticed lead volume declining along with lead quality. Since I measure everything on a 90 day curve, this just put 3^rd party leads on my “watch” list.

Interestingly enough late one Saturday night a name of a personal friend (we’ve both been Foster Parents for years, exchanged kids and laughed and cried together) came across as an inquiry, so I called her home phone and left her a message that if she wanted a VW to let me know and I’d be happy to personally help. In the meantime, she also received an e-mail from my Salesperson stating we were closed and then Monday another asking if there was “any color you WOULD NOT consider and is a test drive important?” (Both were automated). This is the response I received:

PLEASE LEAVE ME ALONE!!!! I AM TIRED OF YOUR EMAILS AND FEELING STALKED AND HARASSED BY YOU! OBVIOUSLY, IM NOT A SINGLE BIT INTERESTED....DO YOU GET THAT NOW??  TAKE ME IMMEDIATELY OFF YOUR DAMN EMAIL/CALL LIST, AS I NEVER REQUESTED TO BE PUT ON THE BULLSHIT LISTS IN THE FIRST PLACE.  I GOT A DIFFERENT CRAP ADD, THAT HAD A BLOODY PICTURE OF A VOLKSWAGEN.  MY STUPIDITY LED ME TO OPEN IT OUT OF BORDEM...MERELY TO OBSERVE THE VW STYLE. 

 TRUST ME, IF IM GOING TO BUY A NEW CAR, IT WILL NOT BE FROM SOMEBODY WHO PRACTICES THESE PATHETIC AND DESPERATE SALE STRATEGIES. I WOULD GO OUT OF MY WAY NOT TO USE YOUR DEALERSHIP, SIMPLY BECAUSE YOU INSULT MY INTELLIGENCE.  BELIEVE IT OR NOT, SOME PEOPLE ARE REALLY CAPABLE OF GETTING IN CONTACT WITH YOU, IF AND WHEN THEY ARE ACTUALLY INTERESTED IN BUYING (NOT LOOKING AT A PICTURE!! THERE'S A DIFFERENCE!) A CAR. 

PLEASE, STOP THE BOMBARDMENT OF CALLS AND EMAILS. THAT WOULD BE YOUR FIRST STEP IN THE RIGHT DIRECTION FOR RESPECTING THE POTENTIAL CONSUMER, LOOKING TO BUY A CAR IN THE FUTURE.  IF YOU CANNOT SEE TO THIS REQUEST, I WILL GLADLY CALL THE APPROPRIATE PERSON NECESSARY AND MAKE IT STOP!!!

THANK YOU FOR RESPECTING MY REQUEST,

(Name Withheld)

Yes, it really was all caps and underlined.

I immediately called my friend and apologized; she did as well upon realizing it was me and I got THE REST OF THE STORY: She had clicked on an ad and requested (i.e. “would you like…”) info on similar types of vehicles to the Tiguan pictured. 

The next 2 weeks were in her words “HELL”. She had received calls and e-mail bombardments from Kia, 1 other VW Dealer and a Hyundai Store to mention a few. A Salesperson at another VW Dealer told her she was lying (which she was) when she said she had already purchased to get him to stop calling, another Kia rep had called her husband and told him he just needed his credit info (which he gave thinking this guy had spoken with his wife) to see what he could do for them and the list of atrocities went on. I was embarrassed for my Industry and shocked at the same time.

So I took it upon myself to replicate the experiment and submitted an inquiry to multiple aggregators. I must apologize to the Stores who paid $20 each for my experiment, but as near as I can tell; each inquiry generated approximately 4 Dealer responses. Keep in mind I DID NOT drill down to a model I only inquired as to 3^rd row seat SUV’s within a “comparable to” Nissan Pathfinder segment.

The point of this post is NOT that Dealix, Autobytel, TrueCar or any other lead provider is unscrupulous, but rather have set up their sites to use your name and inventory to make them more relevant than you in search and are being, in my opinion, exceedingly vague in the UX for the shopper. They will not feel the repercussion and can hide behind return or guarantee policies, but I’m more convinced than ever that developing your own leads is crucial and integral to our survival going forward.

Blogs, Micro-sites, Social Media etc. can help you control more of the real estate for your Dealer Name and Brand, so why spend thousands per Month on a non-renewable resource?

Above all measure and inspect constantly!

Good Selling!

@bryancarguy

Normally I dislike Vegas. Specifically, I dislike coming to Automotive Conferences here. You see, I come to Conferences to learn, network and garner the newest and best new ideas from both Vendors and my peers. Unfortunately, most of the time what happens is there are so many distractions that people scatter and the chance for meaningful dialogue and idea exchanges are lost. So it was refreshing today as there was a palpable sense of anticipation and excitement in the air as people began to arrive, my Foursquare alerts began to sound like one of the slot machines and the Twitter stream #DSES hash tag came alive.

I began the day with Registration at 10 and quickly moved into the Private Meetings. Dennis Galbraith and Paul Potratz shared great presentations with a Group of Dealers from Canada and then I went across the hall and spoke with Cliff Banks, Charlie Vogelheim and the people from ryantech about the overall state and direction of new technologies and Automotive. If you get the opportunity to mingle with people of that caliber and just listen to the level of insight they can bring through casual conversation, seize it!

Then the fun really began: Founder Jared Hamilton took the stage and in his normal passionate, exuberant fashion shared his passion and vision behind DrivingSales and the Executive Summit. He was followed by Dennis Galbraith with a presentation on Big Data that was astounding. I think my favorite (repeatable) quote was “People learned to shop online on Amazon yet we expect them to start their process differently in searching for a car"…THEY DON’T.

Luke Wroblewski absolutely enthralled and enlightened with his amazing presentation on Mobile and Consumer Behavior. With the data to back it up he showed that mobile will be the strongest of ANY platform within 2-3 years and technologies out now that have mind-numbing application to the way we could interact, Market to, and understand our Customers. He struck a chord when he said “the best way to get people to hear what you’re saying is to listen better”.

Search, Social, Reputation and Location all merge effortlessly on Mobile and if it’s not already part of your strategy you should move NOW. Early adopters will reap exponential returns down the road. Even more intriguing was his theory that by engaging other New Tech proponents, you can gain influence and acceptance by other Innovators and embracers of change. That could reap rewards far beyond the immediate return.

I’m looking forward to tomorrow’s lineup of Speakers, Contest Presentations and enlightenment.

If you didn’t make it or want to watch again to see if there were any F-bombs dropped this year, I’d bet DrivingSalesTV would have what you need.

If you’re here, tweet me up @bryancarguy so we can meet IRL.

Happy LEARNING

Bryan Armstrong

I’ve had the opportunity over the years to attend many conferences and workshops and have even been honored to present or be asked to present at most of them. One thing I have learned is it’s always a good idea to go with an objective in mind and the best itinerary to help you bring back value to your Dealership.  After all, this should be approached as work, and not some 20 group junket.

                Most say it’s a good thing to come back with 2-3 implementable ideas, yet with planning you can achieve much more. Just so you can see what I mean here is my personal list of current issues and the sessions I will be attending at D.S.E.S. to find solutions.

1. How can I market more effectively?

Dennis Galbraith is an industry leader in big data and how to effectively utilize it. I plan on taking copious notes.

2. How does the increase in mobile affect our marketing and sales process or should it?

Luke Wroblewski will give great insight into the rise of the hand held dealership.

3. What is the correct mix of AD spending?

Florian Zettelmeyer will explain the economics of the Internet inside today’s dealership.

4. How do we gain more exposure without increasing spending?

Few would debate the prowess of Rand Fishken when it comes to Digital Marketing.

5. How can we increase conversion and sales directly from the net?

David Kain’s workshop on “5 easy steps to internet sales success” will give me an opportunity to measure my current processes against the best in the business.

6. How do we go from appointment setting (reactive) B.D.C. to a Marketing and Retention center for all Departments?

Shaun Weissmann’s session on “Evolving your B.D.C. into a true Business Development and Marketing Dept.” looks to be a perfect fit.

7. How do we monopolize and leverage Social and Search traffic?

Doug Frisbie of Facebook and Kate Balingit of Google on stage together should prove an interesting and enlightening session.

8. What should I do about 3^rd party leads? Are they a necessary evil and what about transparency?

Few have been more embroiled this past year than TrueCar’s Scott Painter. His willingness to take the stage with “no holds-barred” Jared Hamilton should be engaging and relevant.

9. How can I lead more effectively?

Jim Dance will give an overview of good to great companies and how they got there.

10. How can I more effectively utilize e-mail?

With lowering open rates and increasing difficulty in getting past spam filters expect Malinda Terreri and Jeff Kershner will share best practices, templates and processes

11. How do we go from Customer satisfaction to Customer loyalty?

Chris Costner of Southern VW and one of the Nation’s best run BDC’s e-Commerce Director will share his insights.

12. How can we merge traditional and new media more effectively?

For this answer I will look jointly to Gary May – one of the best marketers, and Joe Webb – a process and conversion guru as well as Unmarketing’s Scott Stratten.

*Note Chris, Gary, and Joe have two different sessions in the same time slot. I’ll go to whichever one DrivingSales TV isn’t filming or find a way to split the time.

13. How should we view the Dealer/OEM marketing mix?

Department Head of Marketing for Mini Tom Salkowsky should provide insight.

*Personally I think they need to back us more in the Social sphere.

14. What are the best new products and most innovative processes available today?

Driving sales Innovation Cup brings out the best of the best.

15. What should we be measuring?

Top data users on a panel moderated by Dennis Galbraith should spark some controversy.

Above all go with a plan and a list of objectives and as soon as you get back, prioritize implementable items (I suggest putting them in your outlook) and train others.

If your a G.M. or Dealer principle and go, great, top down buy-in is key. If not and you work for one enlightened enough to send you, take advantage. This is one of the few times that the Trainers have an opportunity to be trained and stay ahead of the pack. Let’s face it, we can’t solve the problems of today and the future by repeating yesterday’s solutions.

See you there!

Good Selling.

Bryan Armstrong

@bryancarguy

The other day I was honored to be visited by my good friend and Industry Professional Micah Birkholz. Now I could share with you here a variety of stories and analogies, from his refreshingly sarcastic posts that make me laugh and think to the reality that two people who met “In Real Life” for the first time already had a well-established bond and friendship built entirely through Social Media, but it was his comment about his t-shirt that inspired me.

You see he had on an “I Yelp” shirt and told me that one day he intended to write an article about it but that I should go ahead and do so if I chose. He then said that he and his wife (who is absolutely gracious and charming) were going shopping. Classic Micah. Who else would wear so brazenly a shirt into a Retail establishment that say’s “I’m going to tell everyone about how I’m treated.”?

Think on this. If you had a Customer walk into your showroom carrying a sign reading “I’ll give you 100% CSI on your insanely worded OEM survey AND I’ll rate you on-line, fan you on Facebook, share your posts with my friends and recommend you to every stranger I meet” either every Salesperson would help them or none would because the Manager would insist on doing so! The reality is, every day you DO have that Customer…you just may not know it.

How many of us bother to ASK our Customers if they participate in Location based Platforms such as Yelp or Foursquare? If they do, ask them to “Check In” as there are sometimes Specials on there that could be worth checking out. You may want to have a Service Special active so the next line could be “See we’re saving you on your New Car and you haven’t even picked it out yet!” If nothing else, showing you’re Socially connected and listening will not harm your sale at this point.

For years we have been told to try and “weed out” if there is another decision maker in the process. Have your Customer post a photo to FB BEFORE they buy asking if the Silver or Black is a better choice? It may back-fire on occasion, but overwhelmingly those people we are connected to in our Social Graph support us and wish us well in our new endeavors, right? Wouldn’t an “Ooooh, I’m so jealous!” post help you close a deal?

Above all, the survivors in this business are going to be those that provide the exemplary Service that merits those reviews, not those that game them. As I and others predicted years ago, Reviews and Social ARE impacting search and conversion. Don’t be afraid to engage your Customer as if they had an insane Klout score, serious Kred, 80,000 Twitter Followers and 5,000 FB friends…After all they might. J

 Doing the right thing for the right reason will always lead you down the right path and the Golden Rule has never steered anyone wrong but if you don’t ask you may not receive.

Happy Selling!

Bryan Armstrong

@bryancarguy

“History leaves clues” “Those that don’t learn from the past are doomed to repeat it” “Hindsight is 20/20”. These and other axioms would all have us believe that the only truths and bits of knowledge we can garner from the past are based around the mistakes made and the follies we pursued. While there is definitely merit in these concepts, doesn’t the past also contain positive affirmations that can help us achieve new heights and interact better with our fellow human beings?

Long before Bruce Jenner was known for Kardashian fame, he was considered one of the best athletes to ever grace a field. Michael Jordan, despite his foibles in Baseball will always be considered one of the greatest ever. Tiger Woods will evict images of Championship Golf long before Escalades tearing up a lawn. The name Thomas Jefferson brings to mind a Founding Father rather than a bankrupt slave-owner.

Look at your Sales floor, your peers. Do you see a 20 car guy and treat them as such though this Month they only hit 8? Do you look at the Desk Manager and remember that he exhibited years of sustainable excellence and Leadership to get there or do you snidely think that he just doesn’t “get it” anymore and laugh at all his “Glory Day” stories.

Next time you have a chance, ask each member of your Team what their greatest moment, Month, Deal, C.S.I. moment was. You will literally see each face light up as they recall in themselves that moment and pride they have in the memory. Then with every interaction for the next week address them as such i.e. “What’s our 30 car guy got today?” “How’s Mrs. 100% C.S.I. with 18 Previous Customer referrals so far this year up to?” “Alright 10 pound Desker, let’s make this another Happy Customer!”

Treating others as their best self will often bring that desired behavior about.

This concept and post was inspired by my friend, Mentor and General Manager, Jeff Davis. Any shortcomings in conveying his vision are strictly mine.  

Two weeks ago I had a chance to review Cobalt’s new Flex Dap offering. What was scheduled to be a 45 min. conference call turned in to a nearly 2 hour conversation with Shaun Kehrberg Product Marketing Manager for ADP Digital Marketing Solutions and Jade Makana (whose Title of “Corporate Storyteller” for ADP Digital Marketing Solutions has got to be the most awesome Job description EVER) patiently answered my myriad of questions.

Flex DAP Overview

Flex Dap in a nutshell is a way to optimize and align OEM Marketing messages for your Dealership through:

Google Contextual Display Advertising, Google Paid Search Advertising, Bing/Yahoo Paid Search, Dynamic Used Vehicle Inventory Campaigns, Website Visitor Retargeting Ads , Video Retargeting Ads, Retargeting Ads with Dynamic New/Used Vehicle Inventory, Retargeting Ads on “Premium” Sites, Campaign Landing Pages, OEM Aligned Campaigns, Dealer Branding in Ads, Dealer Specials, Email Marketing, Model Lineup Campaign Choices, Campaign Prioritization, Mobile Content and contains New DCC Reporting, Budget Optimization and Premium Support.

In other words it’s literally a “set it and forget it” Solution for the Dealer who is too busy or doesn’t want the hassle of setting these things up. In addition you can eliminate Marketing spend on Vehicles that you don’t have or don’t NEED to advertise. The BEST thing about it is that since Cobalt is so aligned with the OEM’s they have the next Month’s incentives and Programs days or even weeks before we as Dealers do. This (although in principle chafes me greatly) allows your Digital assets to begin working from the very first of the Month. Whereas doing it on your own through another Vendor will set you back days if not weeks depending on your in-house or contracted Creative Team.

Flex DAP is not just for the Sales Dept. either. In fact it contains spend categories for New, Used, Service and Parts in essence covering the entire gambit of the Dealership profit Centers. Each category’s spend must be set by the 24^th of the preceding Month, but can be “Flexed” up once you are aware of the incentives yourself or if mid-Month you decide you need a boost in a particular area. This is done through a very simple to use control center with easy to understand User Interface.

Here is my opinion:

Pros:

Cobalt has done a much better job at trying to capture a greater portion of the Digital Dollars we all are spending. Their greatest advantage is their substantially greater prep time and the fact that you never have to worry about Compliance issues.

 At $2,000 for “Core” coverage, $500 for “New Flex” and $1,000 each as a minimum spend for Service & Parts and Used it’s reasonably priced and contains all the key elements of a good on-line presence. OEM alignment is important in your Marketing strategy as it allows you to piggy-back off the huge OEM budgets.   

The support is better and consistency is guaranteed.

Used, Parts, Service and Video have FINALLY been addressed

Cons:

There is no delineation of your individual Dealership outside of your Logo and few Creative choices

Your ad may appear the same as your Competitors

Conquest in New Sales is severely limited due to OEM mandates

That being said, yes, I signed up (for Core, New Flex and Used) and recommend you too look at it as a now viable solution.

 I will still continue to run Campaigns through other Companies who provide more transparent reporting and conquest opportunities, but have eliminated my Dealer name from their Keyword buy; after all I don’t want my CPC to skyrocket because I’m bidding against myself.

I want to align with the OEM and am saddened that they trust a Vendor more than they will trust my Dealership with advance notifications. However, each Month I will go in and dial down to the minimum spends in each category and then after I know what Cobalt knows will adjust accordingly. At least this way, I’ll be able to start my Monthly Marketing on the 1^st instead of the 10^th.

I’ll continue to watch this and will be writing follow-up on its success. I’m sorry if the overall tone comes off as skeptical but in my first meeting with my Rep after signing up, she did not seem to be as familiar with all the features this Program contains, particularly in the Creative choice opportunity, as what I was presented with. So with a tentative “thumbs-up” and hope for fulfillment…

Bryan Armstrong

@bryancarguy

One of the greatest challenges we face in this Industry is the attrition of our Service Customers after their warranty period.

When your non-lease Customer’s begin to get the bills and Service recommendations that are Customer Pay items, many will consider trading or start looking at another Brand or local Shop.

One of the most effective ways I have found to combat this is to “Lay-em-Away”.

It works like this:

Every declined Op Code generates a call from either the Service Writer or better yet a BDC Rep. They’ll explain that we want to help and offer to set them up in our V.I.P Program. They’ll then set up their next Service appointment to do the Oil Change as well as the top 2 most important Service recommendations. This cost should be equal to approximately $100. The next appt. is scheduled as well with the same formula used.  By the time the 4^th appointment is completed (assuming a 3,750 interval and 15,000 a year) not only will you have completed that 30,000 service, but the 45,000 as well. The biggest benefit is it’s all at a cost to the Customer of approximately $1 per day, you have their gratitude, maintain loyalty, and they feel cared for rather than preyed upon.

Of course if your smart and you have a Communications Center that communicates well between Service and Sales, the second kept appointment will also include a complimentary surprise “Demo for the Day” and a hang tag on the mirror of their car when they return with what the payments would be on the New under-warranty vehicle they just enjoyed all day would be.

Everyone wants to be a VIP and feel valued and understood.

What are you doing to meet your Customer’s budgetary constraints on the Drive? If it’s only crossing off services or lowering your margins, you’re missing opportunity and gross profit.

Bryan Armstrong

@bryancarguy

We’ve all heard the expression “inspect what you expect” and granted there is great power, insight and learning to be had by monitoring your processes through thorough reporting. However, when is the last time you inspected the data from which those reports are compiled?

The power of inspection lies primarily on the focus those actions will receive because everyone knows they are being monitored. This very knowledge however can backfire when your basing the reports on false data. For example, we know there is a direct correlation between closing percentages and response times. There is also not a manager worth their salt that does not keep a keen eye on this metric. When was the last time you took the extra step and looked at the quality of those responses? Better yet, have you ever picked up the phone and simply asked the consumer “I know you just spoke with my I-Net manager, but I wanted to personally thank you for giving us this opportunity. Have you received all the info you requested?” The answer may shock you. I know it did me!

                This last 2 weeks I have been thoroughly engrossed In processes long before they normally escalate to my desk and I can say that salesmen still “cherry-pick” and form judgments and opinions about who is a “buyer” and who is a “shopper”. The worst are from customers who have contacted your store within the last 90 days but have not yet purchased.

Inevitably, the notes on the contacts become redundant and I marked more than sale “lost” and “bought elsewhere” because the salesman said they were waiting 6 months (oddly enough that was the original note on the show room visit event).

Prejudices form and the easy way out and next and newest beckons more enticingly to most.

                Don’t just look at your reports, get involved! Shop your own store, or get a friend to, and quit delegating every task thinking that some are “beneath” your level and what you have to do is more pressing. Inspecting what you inspect will most certainly raise your expectations and provide insight into your business that no report can show.

                Good selling!

Bryan Armstrong

@bryancarguy

Chicken Little created a crisis that was, though real in his mind, totally false. However, it spurred others into frivolous action in a well-known Fairy Tale. In the next few weeks and Months many Dealership personnel will confront the same thing as they interact with Vendors at the Dealership, in on-line forums and at Conferences. 

And thus my friends will begin the Zero Moment of Bullsh**.

We get it every day in our inboxes “we have done a quick study of your website and found several areas you should be concerned with”, “Google 3.4 will make your website invisible unless you ACT NOW”, “Get our Free whitepaper on why you need our service and a free 30 Day trial”… and on and on it goes.

“Create a Crisis Marketing" is not new. Bomb shelter Companies made millions during the red-scare era, and look at the health supplement market! That’s NOT to say there was never a possibility of being attacked as a Country nor that Vitamins aren’t good for you.

However, a good Vendor Partnership should be like a good marriage so maybe follow the same steps:

1. Determine what you are looking for that will complement your current strengths and shore up your weaknesses.
2. Get involved in Communities that foster education and interaction. Don’t frequent bars as a primary hunting ground. I have 4 Sisters and Mom always told them “you’ll never find a Stallion in the Donkey corral”.
3. Long courtships and engagements are good. Love at first sight DOES happen, but it’s RARE and a cooling off period won’t deter it if it’s real.
4. Commit. Totally and completely. It’s a lasting thing and may be rough but even the best relationship can sometimes go through a rocky patch. Communicate often and openly and don’t start looking for the next best thing before you’ve exhausted all channels with your current spouse.

 Don’t wake up next week with a ring on your finger and no idea how it got there.

Bryan Armstrong

@bryancarguy

Almost a year ago, I gave a presentation on Digital Marketing and stressed the importance of sites like Foursquare, Yelp and urged all to re-evaluate their push-style Marketing techniques on Facebook. Now, not to toot my own horn (*beep, beep*) you see Siri looking to Yelp for answers, Foursquare becoming ever more relevant and within the next 30 days every Brands FB page will be forced into the new timeline format.

Now would be a great time to look at the photos (which dominate the timeline format) that you’ve posted since you began Facebook. Will it be a conglomeration of puppy photos and best caption contests? Will it be a successive progression of Inventory you don’t even have? Worse yet, will it end up that your “friends and fans” see the inane plethora of your weekly ad claiming one sale after another? How effective will the next ad be when everyone can scroll back and see that it’s the “same old same old” that you’ve re-hashed again and again? I believe the term I used was “it will look like Sesame Street threw up”.

So here’s my two-cents now: Use the next 30 days to clean that rubbish heap you thought was buried. It will look like you have big holes in your presence, but fill them with events such as New-hire announcements, Birthdays, Anniversaries; Fund-Raising and Community events…the possibilities are only limited by your imagination. It’s what I’ll be doing too.

Also, start integrating your Social Media the right way. Use it for conversation and feedback and integrate it into your Traditional advertising efforts. Don’t put “LIKE US ON FACEBOOK AT WWW.FACEBOOK.COM/DEALERNAME” instead try “join the conversation” or “Get Involved” by texting: like VWSouthtowne to 32665

Go ahead…I’ll wait… :)

Bryan Armstrong

@bryancarguy