Lets face it, the world of the hospitality salesperson is not what it used to be. Glad handing folks in the parking lot is nothing like it once was. It’s no longer enough. It’s no longer adequate. It’s no longer effective. In the future some salespeople will be replaced and others will become more valuable. There will be fewer, but more sophisticated and technologically supported sales staff that drive the dealers bottom line. Successful salespeople of the future will understand innately the perspective of both the seller and the buyer. Sales actions and approaches will be driven not only by how the salesperson wants to sell but equally by how the buyer wants to buy. Without this fundamental shift in philosophy, a value add is not possible for the in-person salesperson. Without a value add, there is no value. Without value, there is no need - for the salesperson. Classic referral marketing and long term relationship building practices will become the necessary norm instead of the exception like they are today. These issues may sound familiar but make no mistake about it, effective marketing by the salesperson for the employer will become the most basic value add a salesperson can bring to the organization, and the customer. The biggest problem with today’s traditional approach is cost. Salespeople are the biggest expense in the sales channel and must be strategically focused and economically leveraged. Because not all customers perceive an in-person sales process as a value ad, not all deals can be expected to share the expense associated with staff. It’s an easy formula. The more complex the sales transaction, the more necessary and valuable the salesperson. Most people in the biz would claim that the car buying process today is different than the car buying process of yesterday. Many blame this idea for their lack of success. The fact is, the process hasn’t changed much. Dealers still attempt to control the process, customers still attempt to control the process, both parties are still left unhappy with the outcomes in many cases. Today there are multiple ways for a customer to research and find products but still basically one way to buy the car - go to the store. Most salespeople understand this much, but, they fail to realize that although the customer has many choices available to them (to try to control the process), so does the salesperson. The successful salesperson of the future will realize quickly the giant advantage they stand to gain over their competitors by taking advantage of alternative marketing. The internet, telemarketing, grass-roots campaigns aimed at current customers, guerilla (not the blow up one on the roof) marketing strategies that reach potential customers at the street level, and other FREE approaches will be necessary, not optional, not glamorous. Once universal sales tactics that were widely accepted are no longer valid in many cases. Just what are basic sales principles these days anyway? There may still only be one way to buy a new car today (going to the dealer), but, there are countless sales situations that never occurred in the past. It’s obvious then that a canned sales approach isn’t going to cut it. Because customers don’t need salespeople to find basic information about their next new car anymore and because most dealers make it a habit to advertise rock-bottom prices, and because the “invoice” cost of any new vehicle is readily available, salespeople may think they are quickly becoming unnecessary. Ones that don’t ad value are exactly that, unnecessary, expensive, a waste of money. Consider this: Unlocking cars each morning and blowing up balloons and occasionally slapping some stickers on cars has never been the objective of a salesperson. If you find yourself only doing that each day, and nothing more (how many ups do you get?), you should concentrate hard on marketing, promoting, creating lasting relationships. It just may be the difference between having a career, or needing a job in the very near future. Get informed. Get smart. Get Secure. David http://www.mygoaltracking.net

There has been a tremendous amount of excitement buzzing around recently about Facebook, Twitter, and other online social platforms. Many vendors, professionals, consultants and businesses are nearly desperate to try to find a way to increase sales using these trendy communication methods. Is it worth it? Can I really justify “all the work” associated with social networking? Yes, it is. Yes you can. As some of you already know, in my past-life I operated a few independent auto repair shops. I was tremendously successful. When our family relocated four hours south, I lost touch with a few auto-repair-buddies. Recently, a friend of mine called and we re-connected. He called to ask for help. He has found himself operating his own shop and he is struggling to attract new customers. He was hoping I could help. In an effort to help, we agreed that I would travel to his shop each Friday for a few weeks to play a sort-of consulting role (something I’m not used to) in his shop and show him a few basics about Facebook and Twitter. He had no idea what these sites offered but couldn’t help but think he was “missing something.” Mike’s shop is very small. He operates alone with one assistant, he had been averaging only 4-5 repairs a week (yikes, he should have called months ago) when he finally found the courage to ask for help. I’m happy to report that in only 3 weeks we have increased his sales dramatically, with no additional expense and about :30 minutes per day of effort. How did we do it? First, we created him a simple Facebook page and a Twitter account. Next, we acclimated him to some basic ins-n-outs of social networking, recruited a few family members to friend him on Facebook and a few more to begin following him on Twitter. Next, he literally called every single customer in his customer list to ask them to “become a fan” of his newly created Facebook fan page. He also asked his customers to begin following him on Twitter. As each day passed, he slowly got more and more comfortable telling his followers and fans what he was up to at the shop. A status update here, a photo there, it began to add up to something. Some of his posts are interesting, some are boring, all are about him. He is consistent in his message: “I need work to do and I’m asking you to help me find some.” I know it sounds cliche’, but, make no mistake about it, Mike has earned and additional $10,000 in three weeks from customers he never knew existed. It’s amazing how powerful this new way of communicating can be if you are dedicated to just “figuring it out” and “making it work.” You existing customers will help you with this if you genuinely like and trust you. It’s OK to ask for help. If you sell, you need Facebook. If you sell, you need Twitter. If you have any doubts about the value of creating good social networking habits, think of my friend Mike - he’s all aboard, $10,000 extra in sales helps him stay motivated. If you are not already doing it: Get social, Get Aboard! Cheers David http://www.mygoaltracking.net

I was sifting through my mail today organizing the junk from the important. I got to thinking about all this mail. Who sends it? What does it mean? Did they really think I was going to open it? So much garbage in my mailbox these days! Regular mail is not much different from electronic mail, the junk gets ignored. If you are sending follow up mail, real mail, the paper kind, you may be surprised at the number of pieces that go unopened. Real mail from real people gets opened and read. If your mail appears canned, computer generated or impersonal, chances are, it will get tossed.

5 Tips to get your mail opened and read, and not tossed!

1) Hand address every envelope. Really, with a pen, take your time. How much time could it take anyway? It’s not like your sending hundreds of mail pieces a day. Get your pen out, hand address the darned things. This means you cannot use windowed envelopes. Windowed envelopes scream  NOT PERSONAL and get tossed.

2) Use a real stamp. Not a postage meter, not a mark from the upstairs meter, a real stamp. The kind that come in the little book. The kind you lick-n-stick.

3) Sign the letter. No signature stamps, no photo copies, no generic sincerely messages. Sign your name, always. At the end of the letter, sign it above your name. This may sound crazy, but, signing the letter below your name suggests you are in a hurry. Print the letter and sign your name ABOVE your printed name. Trust me, it matters.

4) On the return address line (see 1), your mail should be from you, not the company you work for. I know this sounds extreme. But, the reality is, mail from companies get opened less than half the time (even if you licked a stamp). The mail you send should always be from you.

5) Do not mail complicated letters that include graphics, fancy color pictures and other sophisticated media. You are not sending an ad, are you? Send a letter that I can read and understand. It is OK to create a computer generated letter, just make sure you sign the bottom under the sincerely line.

Successful sales people manage ongoing outbound mail campaigns. All of them. It does have a cost associated with it but the cost is far less than not doing it. Get in the habit of printing, addressing, licking and sending on a daily basis. You will be glad you did.

Cheers
David
http://www.mygoaltracking.net

What is it that you are communicating? If your language and delivery suggest that you are eager, hungry, or even desperate to “Get them in this car today” your chances of doing so are greatly diminished. Learn to lower the pressure by using natural language to open up a discussion. Selling is not about pressuring people to see things your way, selling is about discovering the truth, discovering how you can help. Selling is about helping the customer determine ON THEIR OWN that your product (car) is better than any other car they may be considering.

It is important that you understand just how significant the words you choose are. Nobody wants to be sold and we all know this. You and I run from pressure sales pitches because we are just like our customers, normal folks that don’t want to be SOLD. The reality is, whether you agree or not, your reputation (as a car salesman) precedes you and your customers will EXPECT you to take a high-pressure approach. Your approach may not be high pressure (compared to other sales people) but it only matters that your customers perceive it as high pressure. This perception of high pressure leaves you at a great disadvantage when trying to help new customers. Incidentally, this is the same reason your return customers and repeat customers are so much easier to close, their perception of you is different.

A common example - price issues. When you hear “The price is too high!” - what do you say? You may be surprised at the number of sales people that can’t answer that question - “what do you say?” - crazy really, we all need to be prepared for this question. So, what do you say? I would argue that you say something that immediately raises doubt, more questions, and or the PRESSURE.

Here is one way to lower the PRESSURE when asked about price. Instead of pointing to the window sticker and reading the price (the price they already read), try this:

“This car is $21,345 equipped like this - PAUSE - sometimes people that have yet to own a (Camry, Accord, Malibu) perceive this as a bit high and I understand that. Lets make sure that this car is a good fit for you before we worry too much about your budget. After we figure out if this car is a good fit we can work out how much it will cost - exactly. Then, you can decide if it makes sense to drive it home today.”

Memorize that paragraph - ALL OF IT. Get good at delivering this “answer” naturally, without a hungry tone of voice. This is the answer to the first question “What do you say.” It may look like alot to take in but it’s not too difficult. Here is what we are accomplishing with that statement:

You are answering their question. You are lowering the PRESSURE. Your delivery is not aggressive. You are lowering the PRESSURE because you are genuine in your concern for the customer and your ability to help them. By taking this non-aggressive approach you are leveling the playing field and suggesting that they are in control - not you. You are accomplishing all of this because of the natural language you used. The reason the PRESSURE has been lowered is because you are not going for the sale, you are simply trying to keep the communication line open long enough for the customer to come to their own conclusions - your car is the best fit for them.

I look forward to your feedback about this approach, please visit our blog (link below) and chime-in. If you have any insights or ideas about how to lower the PRESSURE, let us know, we could all use the help.

Cheers
David
http://www.mygoaltracking.net

 

Many sales people think they know what somebody is inquiring about before speaking with them. When you receive an internet lead or a telephone call, do you assume the person contacting you is interested in buying something? Most sales people do, this is a mistake.

The reality is, when somebody calls you or emails you (even if they started from a third party lead-provider site), you have no idea what the person needs help with. You don’t know the problem they are trying to solve.  Since most of us are trained sales professionals, we quickly jump into “sales mode” as soon as somebody inquires. Why? Because that is what we were taught to do. This is bad because you have no idea who this person is and they have no idea who you are - there is no relationship yet. If you assume you have a relationship just because they contact you, you are asking for trouble.

One problem with many internet lead providers is that they are sales-focused and attempt to steer customers into sales situations, people don’t want to be sold anything. This doesn’t mean they will not become customers and this doesn’t mean you cannot use your sales skills. It just means that you have not yet earned the right to yet because you THOUGHT you knew what they wanted. Yeah, yeah, the notes in the lead are good but not good enough.

I strongly encourage you to begin your lead management process with an attempt to arrange a phone call so that you can learn more about what your “prospect” is looking for. What help do they need? Why did they contact you? If you don’t have a phone number, you can start by email, either way, it’s best to figure out HOW TO HELP your inquiries before you get your sales mojo going. Selling processes are a total turn-off for almost all people. Helping processes are a total turn-on.

Here is a nice little starter you can use, it worked well for me for many years and it should help you begin to establish a relationship before you start selling.  It’s designed to help you transition from complete stranger to somebody that is genuinely interested in helping.

“Hi Mr. Customer,

I Just wanted to drop you a quick note to let you know I just received your message about needing more information about our …..  You may have specific needs that are different from others, so it might make sense if we had a brief chat over the phone, would you be open to that?

And, if you prefer to give me a call, that’s fine too. Our call together would simply be a question-and-answer conversation to learn more about your situation and your needs and how I may be of assistance.”

Use this as a starting point for your lead-inquires, I think you will be surprised at it’s effectiveness at arranging phone conversations and beginning the process of building solid relationships.

Cheers
David
http://www.mygoaltracking.net

 

In a meeting with my partner the other day, we were discussing our industry  and where it may be headed, where it’s likely to change and how much different it is today than it was a few years ago. The overwhelming topic: “the young guys and the old-school guys.” 

Our conversation trended around the difference in how less experienced (usually younger) salespeople and older, more seasoned sales people, approach the car selling process. Older, more seasoned sales people seemed to be more likely to use an “old school” approach - treat customers like sitting ducks - do everything possible to close the sale - now. Younger, less experienced salespeople seemed to be more interested in building relationships, working referrals, and helping customers solve their problems in an effort to make a deal when the customers terms were met.

OK, OK, old-schoolers may be saying “wait just a minute, I help customers too!” and new reps may be saying “hang on, I’m interested in closing deals now!” Of course they are, we are all salespeople and all salespeople are interested in helping customers and closing deals. So, why do experienced salespeople tend to use old-school tactics and less experienced salespeople tend to use less pressure and more “help” in their approach? 

It’s my opinion that old-school tactics, such as overcoming objection after objection relentlessly until the prospect finally agrees, or, pressuring people and pulling them through a linear sales process until they walk-or-buy is one of the major problems our industry faces today. If you wouldn’t stand for this type of approach, why would you expect your prospect to? The fact is, our industry is plagued with credibility problems (car salespeople consistently rank LAST in surveys associated with consumer trust) and old-school selling tactics are at the root of the problem.

Unfortunately for car sales people (and consumers), there are very few managers or dealers willing to accept the idea that a more humane way of selling may actually improve sales numbers. Closed minded managers and dealers generally ignore the notion that a shift in mindset is needed . Consider this: What would your boss say if you “walked” a customer? How about avoiding a “turn” or worse yet, suggesting to a customer that “they may not be able to afford this car.” I’m guessing he wouldn’t be too happy, even if you were sincere in your efforts to help the customer.

It’s my opinion that Chrysler and GM are closing thousands of stores because they have a HUGE credibility problem. Sure, they claim it’s more efficient and cost effective to run a leaner operation, and this may be true. But, make no mistake about it, old-school selling tactics have troubled our industry for decades and many of the underperforming stores listed on the close-list continue to use old-school tactics. It’s no wonder they are underperforming!

What exactly is underperforming anyway? Could it be that these stores are underperforming because they continue to train their staff with old-school selling tactics? Could it be that underperforming stores could have performed better (and avoided the list) if they weren’t using selling strategies and processes that they themselves wouldn’t tolerate? Could it be that a dealer in Somewhere USA is outperforming a competitor (and staying off the list) because he gets it, he’s not change-resistant and he’s helping customers rather than “turning and burning?”  

I’ve written this post because I think our industry is in a state of denial and there are sales people and managers and dealers that think “waiting it out” is a good strategy. The fact is, if you wait out this downturn and think your dealer will operate functionally the “same” on the other side, your wrong. It won’t. Things will be different. Open your mind, embrace change, stop using old-school selling tactics. Or, you may find your stores name on the close-list.

Cheers
David Book
http://www.mygoaltracking.net

 

 

Nobody can say when the economy started tanking, there are lots of opinions. But, it seems to me that Fall 08 was the start of our current situation. Let’s decide it was September 08 for sake of argument. Are you doing anything different today that you were 7 months ago? If so, what? If not, why not? 

There are countless ways to improve. Countless initiatives, strategies, plans, changes and adjustments that COULD be made. Most folks are doing the same things today as they were last fall, most folks have changed nothing. Because of this, they get what they deserve - less of everything. “If you keep doing what you always did you are going to keep getting what you always got” - or something like that, you know the saying. That was generally true in the past. But, wait, think about it for a minute. This is not necessarily true anymore.

One of the biggest challenges facing dealers today is the rapid pace of change - outside of their dealerships. The fact is, if you keep doing what you did (in good times or bad), you are not necessarily going to get what you always got. You see my friend, times are changing and changing fast. Take Twitter for example. Last fall Twitter was a trendy up-start. Today, millions of folks post Tweets multiple times per day. Twitter is on pace to out-number Facebook in the next few months. That seems impossible, Facebook has 250 million users! How? Tough to say for sure but it doesn’t matter. What matters is that it’s happening, with or without you. Unfortunately, there are are thousands of dealers and industry pros ignoring these everyday trends. Why? Because the change is happening outside dealer walls, office walls and trade-show walls. Look over the wall my friend!

So if things are changing at a record pace, if our personal and professional lives are fundamentally different, how and the heck can we expected to keep up? I’m not convinced anyone can keep current on ALL the trends of our complicated world. But, you can, and should, choose a few trends and try to stay current on those. 

My advice is this: Choose three mass-accepted communities, main stream outfits like Twitter, Facebook, Craigs List or another online giant. Next, take the time to understand how the three you chose work. Get involved. Read. Post. Participate. What do they do different? Who are they helping? What problems are they solving? Why are millions of people lining up to participate?

You may surprise yourself at the insights you gain by simply participating. Humans are habit oriented creatures. Get into the habit of checking in, looking around, opening your eyes and mind. Discover something. You do stand something to gain by developing a deeper understanding of the new world order, our new global network? I’m not the only one that things this, am I?

Part of the problem with change is not understanding what’s happening around you. Gaining a new perspective on how others are changing may help you discover what needs to change in your dealership so you can position yourself to be better off 7 months from now. I have no idea what you need to change but I can guarantee that something in your organization has room for improvement. I don’t have a crystal ball to tell you what that something is. However, I do believe that your participation in growing social trends will help you discover for yourself what changes make sense.

Don’t do what you’ve always done, don’t get what you’ve always got. Change something already!

Cheers
David
http://www.mygoaltracking.net

 

This post will make all the professional sales-reps sick, just sick. It all started when I took a little trip North a few hours to watch my best friends son play baseball this weekend. 

In the middle of the 3rd painfully slow inning (watching 9 year old baseball is like watching grass grow!) my buddy says: “what in the heck is Lexus thinking, I need a new car and they refuse to tell me what cars they have to sell.” I giggled a bit because I knew exactly what he was referring to. Lexus dealers generally do not list their inventory online. Why? I have no idea. I can imagine a few ideas but they make no sense. They may have 10 years ago but not today.

The tragic (tragic for dealers local to him) story goes like this: “I went online and clicked around to see if they had the car I wanted. I was surprised to find that Lexus dealers do not list their new inventory on their websites. Since they do not list their new-car inventory I have no idea who to buy it from. I am ready to just drive down there and drive one home. Yes, I know it is tons of money (over $60K!) but I know what I want and I am ready to buy it and they refuse to tell me if they have it before I drive down.” Sound crazy? I thought so. 

He ended up inquiring with the web-form to three different dealers in his metro area. All three sent a generic auto-response that did not address his specific question. “Do you have this car?” Two of the three dealers ended up emailing back but still did not answer his question. Heck, he has no concern about what it costs - he already knows the MSRP and is willing to pay it. Sound Crazy? I thought so.

If you are not going to answer inquiries with answers, why bother answering at all? I know this sounds silly but geez, answer the darned question already. I made one phone call to a friend at a Lexus dealer and we made the deal in 5 minutes. Everyone won.

This is a simple example of how to lose money online. Three dealers lost a car deal that we made so easily it would make you laugh. Before the Little League game ended we had arranged for my buddy to go pick-up his new car (for MSRP, wink). The difference between the first three dealers and the dealer I called was simple, they answered his question. In an interesting twist, the car is being delivered to the helping dealer FROM the first dealer he contacted. Tragic - for some.

Cheers
David

http://www.mygoaltracking.net
http://www.pinspeed.com

Many of us work hard to develop a good reputation and overlooking what others think or say about us could be costly.  Fancy terms like Online Reputation Management or Search Engine Image Protection have evolved and you can benefit by gaining a deeper understanding of this modern trend.  Google Alerts is a service designed to help you learn about internet content that contains certain words or phrases - such as your name.

Wikipedia says: “Search Engine Image Protection (SEIP) Also known as Search Engine Reputation Management (SERM), combines the science of Search Engine Optimization, with technical and marketing expertise, for the sole purpose of protecting your name and reputation from undesired public information accessible via internet search results.” 

In english, all this means is that you want to know when something is published about you so you can act accordingly. 

Why should I monitor my online reputation? You should care what is being published about you online because your customers care. Your customers are going to look. Googling a name, or browsing professional networks such as LinkedIn is no longer vanity - it is common. If your name appears online in a negative context, it could hurt you.

When should I start monitoring my online reputation? Today. It is incredibly easy to start using Google Alerts and there is no reason not to.  

How do I start monitoring my online reputation? If you don’t already have a Google Account, set one up. Next, while logged into Google, visit the Google homepage. Choose “More” then “Even More” then “Google Alerts.”  On the Google Alerts screen you can enter as many terms as you want to be alerted about. Start with your name. 

Google Alerts is a powerful and robust system and you may want to configure more than one alert. When new web-content is published that contains the terms you configured, you will receive an email. You may or may not need to act on the newly published content but at minimum you will no it exists. 

Cheers
David Book
http://www.mygoaltracking.net
http://www.pinspeed.com

 

 

About 10 years ago I attended a "Sales Training Camp" and came home with piles and piles of paperwork, examples, scripts, and other goodies. I ran across this list of 10 ways to shape-up a sales force that I took home from that seminar. Not surprisingly, we are saying many of the same things today as we said a decade ago. If your a salesperson, you may not like any of these ideas - sorry. If you are a performer, you understand. If not, um, become one or find a new gig.

1, Fire them: Hapless Hal clearly doesn’t know what he’s doing. He’s been with you a month. What’s the point in waiting? If someone’s really not going to work out you know that immediately. Use a three month probationary period to weed out the worst performers. But the staff who are not obviously useless need time to learn about the dealers products, and that can take 12 to 18 months. In theory, any of them should be able to do it, because they have proven track records – otherwise you would not have hired them - I hope.

2. Spy's spy's and more spy's. Monitor and record phone conversations. Check how many calls they’ve made by looking at their call log. Count up their emails. Monitor their internet usage – are they spending more time on the CRM, or Hotmail? Are they talking to customers, or each other?  It never ceases to amaze me at how efficient people get at wasting time.

3. Watch them in action: If Joe Sales Rep is struggling, go out with him to greet customers, sit with him while he makes phone calls. Help him sell the product but by no means belittle him in front of the customer. Then take him out for a coffee and ask, “How did you think that went?” You’ll learn as much from their response as you did from their performance.

4. Show them the money: Cash definitely motivates certain people. Offer a bonus pot as a yearend incentive. The more they achieve over goals, the more that goes into the pot. Like they say "short term bonuses help the sales people, long term bonuses help the dealer." 

5. Pimp that ride: Flower children they ain’t. Sales staff have got dollar signs in their eyes. So suck up to these connoisseurs of bling and get them driving fancy rides. I love this one, demo for anyone! This is a no-brainer (assuming all the insurance and licensing is good with Joe Rep) and salespeople love it. Offer anyone a demo with a few hooks. First, figure out a monthly figure, lets use $500. Each day the salesperson has the demo, and it doesn't sell, he "owes" 1/30th of $500 (around $15.00). If he sells is by month end, he's charged nothing. If he doesn't, um, he pays. Most folks that take this deal sell the car, it just works.

6. Give them a budget: Every salesperson at the dealership should know and understand exactly how much cash the dealer is willing to give up towards their individual marketing efforts. Stamps, envelopes, cell phone bills, it adds up quick. Lots of salespeople would do $500 worth of marketing for $50 worth of stamps and letterhead. Do not limit what they can do with their marketing budget, support creativity. 

7. It is not just about the money: Some people are motivated by cash; others by status, a sense of career advancement, good management, praise, reviews, training, being listened to, pulling together as a team and loving the company they work for. When chatting, keep mental notes on what turns them on. If a top-performing sales person says, “I’d love to stay in a fancy hotel like that,” then you know what would make a great reward: a weekend away in that hotel, for them and their partner.

8. Target the top: An old management maxim, the Pareto Law, says that 80 per cent of your sales come from 20 per cent of your staff. That’s an easy claim to make, you might think, what’s the reality? Well, find out! Look at the top ten or 20 per cent of your sales people, and calculate what proportion of sales they brought in. Do they pull more than their weight? Then they’re the ones to invest in!

9. Smarten them up, cheaply: The internet and other information delivery mechanisms has dramatically changed the amount of training material on the market and the quality. Get them newsletters, daily sales bulletins, podcasts, whatever. You can get as much quality training materials in one day today what it took months to accumulate 10 years ago. Get the smarts, incentivize learning it. 

10. Develop a CRM strategy: CRM is not software. CRM is a plan, a strategy, a philosophy. Get everyone to understand how your dealership is different, what sets it apart and exactly how and why you care deeply about your customers. Use technology to support your CRM initiative, not to create it. You may be suprised at how many salespeople simply do not know what their dealerships policies are when it comes to customer service, asking for referrals, and following up. Sales people want to know what you expect. Tell them, everyone will be better off. 

Cheers
David Book
http://www.mygoaltracking.net
http://www.pinspeed.com