The way we communicate and how we want to be communicated to is continually evolving.  New technology has allowed today’s consumer to be constantly exposed to messaging and information.  So what is the best way to reach your car dealership's customers - Email or Mail?

Email communications have many advantages for car dealers, mainly the efficiency and timing of sending your messages.  Consumers can receive emails at any time with mobile devices, work and home computers.  You can measure how a customer responds to your email message by either a transaction or tracking click-thrus to a website or other links.  Your customer does not have to rely on what is included in the email but can seek out what is relevant to them.  With that being said, what is your email capture rate?  And are your Sales, F&I and Service departments at your dealership getting valid email addresses or entering anything to get credit?  With an email append service, you can increase the reach to your customers on a monthly basis by capturing valid emails and bounce testing your existing database.  Even with email appends, 60-70% email capture rate is remarkable.  Remember that even though email is an efficient channel, blasting your database too often could make your customers numb or cause them to opt-out. 

Mail communications have advantages for car dealers as well.  Foremost, your dealership’s DMS is more likely to contain 100% of your clientele’s mail addresses so you can reach your entire database.  Though mail is more expensive than email, OEM programs can provide support with co-op funds if you meet their guidelines.  When done correctly, direct mail can be a relevant, personal invitation to a customer for their business.

Email and mail have their disadvantages too – both channels can get cluttered.  How does your dealership's message break through that clutter?  You can argue whether email is better than mail or vice versa.  But the key is how can you make them work together to get higher response rate from your campaigns.    If you are watching your budget, send email to those customers with a valid email address and then backfill with mail to reach your target.  If you want a greater lift in response, overlay your mail campaigns with an email message.

In the automotive industry, if there is one thing we know for certain it is that change is constant and necessary for survival.  Whether it’s changes in management, sales people, service writers and/or what incentives are in place at the dealership…change is bound to happen…and frequently.  Every dealer would love to put into action a permanent sales plan and deal flow but that won’t lend itself well to reality.  Car dealers better be good at change in order to survive.

How can you be good at change?  I know it’s easier said than done but the key is to have a process in place as to how you’ll deal with change and document the process!  In essence, plan for change as well as possible.  Unfortunately creating that process is the easiest part of “the process”.  I’m sure you’ve heard the saying that “the Devil is in the details” and that’s certainly true when you’re trying to create/change a process in your store.

Have you ever stopped, taken an outside the box view and asked yourself why changes are so hard to implement?  I’ve not only asked, I’ve studied it.  Here are some of the reasons or challenges to why change is so difficult to accomplish:

* You’re convinced the changes you’re going to implement will improve the situation.  But no one else is.  Since they are likely the ones that will actually do the day-to-day work, you NEVER see improvement.  Most people see new processes or change as “just one more thing I have to do today!”

* As a manager, you create a process and expect it to be followed.  However, you don’t micromanage it and ultimately you don’t inspect the process.

* A new process gets implemented in your store, but there are no tangible measuring tools.  You follow up by asking people, “How’s the new process going?”  We all know what’s going to happen next…they’re going to tell you it’s going great!

I’ve been there, I’ve heard your staff talk and trust me… what they’re saying is “Don’t worry about following this plan; he’ll change it or forget about it in a couple of weeks”.  And they think to themselves, “If I ignore it, “it” will go away.”  But as you and I both know, it won’t go away.  Something new will always change.

Here are 6 steps to successfully implementing new processes and ultimately change at your dealership:

1. Think your solution through first.  It’s okay to make minor changes, but don’t put yourself in a position to have to make major changes every couple of weeks in order to reach your “final destination”.

2. Share the problem with your staff members.  It’s imperative that your employees understand why the current change is needed (and perhaps even required).

3. Get employees’ commitment to implement the new process/change.  In other words, have them take some  “ownership” in the process.

4. Create obtainable/tangible landmarks within your process

5. Explain your measuring “tool” when and how you’ll evaluate improvement.

a. Define the rewards for the staff members involved who achieve success and define the negative consequences for those who don’t.

b. Give the staff members the appropriate level of authority to make the necessary decisions to achieve the goal.  Give them a sense of “empowerment”.

6. Micromanage the project for at least 21 days.

The worst thing you can do after you’ve got a good start to this process is to assume it’s going to continue to improve when you’re not micromanaging it.  Evaluate your staff’s performance.  Also identify a “leader”…You’re not looking for another manager; you’re looking for a project coordinator.  Explain to the staff that the coordinator is not their manager; he’s the one reporting the results to you on a weekly/semi weekly basis.

Communication is one of the most important aspects in the process.  As I’ve said throughout, change is constant and necessary…you must communicate this to your employees.  The majority of the time, change doesn’t come from within; rather, it comes from the manufacturer or from the consumers.  Don’t hesitate to explain this to your staff so they understand the reasons behind the need for change and the process you’re implementing. When your dealership comes up against change, put a plan together, work through it and encourage everyone in the dealership to get on board!

Steve Dozier brings 15 years of experience in the automotive industry to DMEautomotive (DMEa). Before joining DMEa, he held upper level management positions in the retail industry. Steve also owned a consulting company that specialized in CRM and direct mail, which brought in $2 Million in Sales for approximately 5 years. While serving as a consultant Steve was consistently recruited by the top 3 CRM firms of that time. Steve started at DMEautomotive in a managerial position overseeing the Direct-to-Dealer team, and is now responsible for developing and growing DMEa University; DMEa’s in-house dealer training organization. Steve is married with two children and enjoys scuba diving and boating in his free time.

Throughout my four-part series (of which this is the final part) I have argued for the use of social media...specifically Facebook...by your dealership's employees to create new opportunities. I've outlined the benefits and the "how to," and today we will look at a case study to show this does indeed work.

Johnny Londoff Chevrolet in Florissant, MO recently began a dealership-wide effort to engage in social media, including the recommendation to use personal profiles to expand their networks…and ultimately their dealership’s reach on social sites. The majority of Londoff employees are now actively engaging on Facebook, suggesting that their friends “like” Johnny Londoff Chevrolet’s Facebook Page and using their profiles as a way to facilitate some dealership-centered conversations. Employees have been talking about what’s happening at Londoff Chevrolet, whether it’s just a story that happened at the dealership (a difficult sale closed, a customer who left happy, etc), or news about a unique pre-owned vehicle, incentives, rebates, and service specials.

The results:  Johnny Londoff Chevrolet has experienced an increase in sales, with direct links to social media. In some cases, buyers are coming from other towns to buy from Londoff because of connections and affiliations with employees.

Why does this work?  Let’s face it…most sales people hate cold calling! They’ll do just about anything to avoid it. Facebook, on the other hand, is a great way for employees to generate traffic and create conversations about their jobs and the dealership. It is a more comfortable environment and, when done correctly, can be less intrusive and not come off as a “hard sale.” What do I mean by “done correctly?” Employees should pass along stories, interesting insights about their job, auto industry and dealership, and provide insider tips…they should make it interesting! For example, “Londoff Chevrolet just built a new showroom. It’s sweet! Makes it so much more comfortable for our buyers.”

The fact is employees will use Facebook during work hours whether they are allowed to or not. Seriously, think about it…if they can’t get access through their desktop at the office, all they have to do is turn to their mobile device and voila…access to their Facebook application.

It can be argued that the initial gut reaction of companies banning social media is driven by fear, lack of intelligence over how to regulate social media use and, perhaps better yet, how to mobilize your employees to use such sites as a way to increase brand recognition and ultimately drive revenue. Instead of prohibiting online activity or avoiding the problem all together, more and more dealers need to find a way to harness and leverage this invaluable technology.

~ Missy Jensen, Social Media Manager at DMEautomotive

Bio:

Missy designs, deploys and maintains the social media initiatives for DMEautomotive in an effort to increase brand awareness, distribute company and industry news, provide updates on products and services and promote consumer engagement. Missy enjoys the process of learning; researching and watching projects come to fruition!

Prior to her transformation into a web specialist and work with DMEautomotive, she has 10 years of experience in the marketing and communications industry. Missy served as the Director, Handicapping & Communications for a regional golf association and helped successfully launch and maintain a cutting edge technology-based ticket resale program on behalf of the St. Louis Cardinals

Missy attended St. Lawrence University where she graduated Magna Cum Laude with a BS in Psychology. She also holds a Master’s Degree from Miami University in Oxford, OH. She can be reached at missy.jensen@dmeautomotive.com and check her out on LinkedIn.

Additional resources:

• Part 1: ENCOURAGING YOUR DEALERSHIP’S EMPLOYEES TO USE FACEBOOK TO CREATE OPPORTUNITIES

• Part 2: THE BENEFITS OF ENCOURAGING EMPLOYEES TO USE FACEBOOK AT YOUR DEALERSHIP

• Part 3: HOW TO ENCOURAGE YOUR EMPLOYEES TO USE FACEBOOK

Download our white paper Navigating Social Media in the Automotive Industry for additional information!

First and foremost, it is critical for your dealership to set up standardized rules and guidelines for your employees to abide by when engaging in social networks. Need a sample? Feel free to use DMEautomotive Guidelines and/or also visit Altimeter for additional assistance. Your dealership should incorporate the social media guidelines within your dealership’s employee handbook because, as indicated on DealerRefresh, “that’s where all employees gain the same base of knowledge of company practices…and the company ensures that each staff member thoroughly understands its view of and approach to social media”. The handbook should make recommendations about specific (and acceptable) amounts of time that your employees can dedicate to adding content, commenting, responding and general research during the “normal business hours”.

Once you set up your expectations and guidelines, get your employees involved! Tap into the knowledge base of your employees…whether it’s your Sales Manager who can talk about the sales process…to your F&I department who has insights about the financial aspects of buying a car…to a Service Technician who will talk about important service milestones. Encourage them to discuss their “expertise” on their personal Facebook profiles to build additional rapport and trust with their extended social network.

To help your employees successfully engage in social media on your dealership’s behalf, you should provide them with dealership-specific content to use on their personal profiles. Content can include (but not limited to): videos, photos, dealership news, manufacturer news, specials and coupons.

Urge all employees to become a fan of your dealership’s Page (as well as other relevant industry pages) and to post or comment on posts to drive the conversations, which will aid in the development of your thriving community. Why should your employees engage on your dealership’s Fan Page? Once your employees start engaging with your Facebook Page, their friends and other connections will see their activity, which may entice them to join in. Some companies have even begun to employ internal Facebook Fan Page promotions where employees receive incentives for bringing in X number of fans. Others are hosting company parties when their Fan Page reaches a certain milestone (i.e., 1000 fans). The important factor is that your dealership can use your own employees to help spread the word about the services and vehicles you provide…all of which is done through the credible and effective word of mouth.

Next up: Case Study on Employee Use of Facebook in the Auto Industry

~ Missy Jensen, Social Media Manager @ DMEautomotive.

Bio:

Missy designs, deploys and maintains the social media initiatives for DMEautomotive in an effort to increase brand awareness, distribute company and industry news, provide updates on products and services and promote consumer engagement. Missy enjoys the process of learning; researching and watching projects come to fruition!

Prior to her transformation into a web specialist and work with DMEautomotive, she has 10 years of experience in the marketing and communications industry. Missy served as the Director, Handicapping & Communications for a regional golf association and helped successfully launch and maintain a cutting edge technology-based ticket resale program on behalf of the St. Louis Cardinals

Missy attended St. Lawrence University where she graduated Magna Cum Laude with a BS in Psychology. She also holds a Master’s Degree from Miami University in Oxford, OH. She can be reached at missy.jensen@dmeautomotive.com

LinkedIn Profile

Originally published on DMEautomotive's Automotive Direct Marketing Blog.

Your employees are already some of the best brand ambassadors you have (this is especially true of dealerships that have a great relationship with their employees) and are currently representing you. And in most circumstances, they are probably doing so completely unsupervised and without organization. When given direction and incentive (i.e., motivated), they can serve as your best marketers!

Reported by Mckinsey/Thompson Lightstone, it has been stated that 67% of consumers purchasing decisions are influenced by word of mouth. When you harness your employees’ knowledge about your vehicles and dealership services, the success stories they posses and the rapport they have within their social network, it can result in one powerful sales environment. Why? Because your employees’ friends TRUST THEM! They believe that their friend knows what they are talking about and that their opinion matters. Your Service Manager’s friends surely believe that he is “the man” when it comes to car maintenance and repair.

Also consider this: the average Facebook user has 200+ friends. If your dealership has 100 employees, of whom 20 of them use Facebook, your dealership has a potential 4,000 friends at your fingertips. So take advantage of it! Allowing your employees to use social media actually leverages existing assets to create opportunities.

Additionally, social media can help your employees keep up with emerging trends and news within the automotive industry, increase their knowledge and position themselves (and ultimately your dealership) as a trusted resource. One of the most important reasons to engage in social media is to have constant interactions and to participate with others online in order to develop trustworthy relationships. Who do you buy stuff from in the “real world”? Your doctors…your accountant…your insurance agent? You trust them, don’t you? People feel better about purchases and transactions when they trust the person, company or brand. And how do companies do this? By consistently providing value, appearing to be like their customers and having similar interests. Social media is no different… it is about people and creating kinships. Thanks to social media, businesses can engage and interact with customers faster and in a more low-pressure environment…and your employees can facilitate this. Quite simply, social media can help strengthen the ties between your dealership, its customers and prospects, as well as among coworkers.

Next up...How To Encourage Your Employees to Use Facebook

~ Missy Jensen, Social Media Manager @ DMEautomotive.

Bio:

Missy designs, deploys and maintains the social media initiatives for DMEautomotive in an effort to increase brand awareness, distribute company and industry news, provide updates on products and services and promote consumer engagement. Missy enjoys the process of learning; researching and watching projects come to fruition!

Prior to her transformation into a web specialist and work with DMEautomotive, she has 10 years of experience in the marketing and communications industry. Missy served as the Director, Handicapping & Communications for a regional golf association and helped successfully launch and maintain a cutting edge technology-based ticket resale program on behalf of the St. Louis Cardinals

Missy attended St. Lawrence University where she graduated Magna Cum Laude with a BS in Psychology. She also holds a Master’s Degree from Miami University in Oxford, OH. She can be reached at missy.jensen@dmeautomotive.com

LinkedIn Profile

This blog was originally post at Automotive Direct Marketing Blog by DMEautomotive

The Current Service Retention Dilemma…Not only are today’s automotive service customers demanding fast and responsive customer service for their vehicles, they have many options which allow them to easily defect to a competitor.  Everyone knows that competition in the automotive services arena is fierce. Many consumers equate vehicle service and maintenance to commodity level events with the belief that “any service center” can service and maintain their vehicle and that the lowest price or convenience wins.

For most people, having their vehicle serviced is not a priority in their everyday lives and at any given time, most people are not thinking about having their vehicle serviced.  Basically, two events stimulate a decision to have service performed on a vehicle: 1) a problem with the vehicle or the red light appears, or 2) a service reminder arrives communicating a time or mileage based specific need with a strategic offer.

Since there is no schedule for the timing of vehicle break downs, the first event above requires your store to be top of mind. In the second and most frequently occurring event, dealers search for the best way to remind customers when it is time to have service maintenance performed. To do this, first understand the genetic make-up of your DMS database.

In any DMS, there will be three types of customers:

• Active – customers who have had service performed within the required interval
  
• Inactive – customers who have missed 1-4 intervals
  
• Lost/Defective – customers who have missed more than 4 intervals
  

 What can you learn from segmenting your customers by type? 

Active service customers represent about 39% of the average DMS service database. These are your best customers. Most Service Managers will say that 50% of their Active customer database in their DMS will come in for service when it is due. The real question is… “Which 50% of the Active customer base will actually come in and when? Normally, Active customers will respond to a regular reminder communication without a discount option.

Inactive customers are the most fickle and represent about 30% of the DMS. The longer they wait to return to the dealership, the greater likelihood they will defect. For most, their behavior has changed and they need to be motivated by a specific offer. The good news is that these are customers that need the most work done and their RO value is 30-40% higher then average. Inactive customers can be converted to Active status if properly segmented and communicated with using targeted communications with specific offers.

Lost/Defective customers represent about 31% of the DMS database and really should not be recognized as service customers any longer. If they have not been in for service within 4 intervals, there is a good chance they are not coming back. Their likeliness to return depends upon such factors as distance from store, age of or mileage on the vehicle and other traits. These are the most difficult customers to reactivate and require specialized marketing programs.

A wise marketer once said, “Know your customer, earn their business!”

To know and understand your customer requires sophisticated software tools and a marketing process or program that effectively communicates with customers by type. In service, the slogan changes to “Know your customer and re-earn their business.”

Today I want to discuss with you what some claim to be the most important aspect of Direct Marketing – Identifying your most important targets.

Factors in Determining Your Dealership’s Buying Base

1.     Past Sales Customers

2.     Past Service Customers

3.     Competitors’ Customers

4.     New Market Customers

5.     Market Share / Brand Share

If you had $1 to spend on direct marketing, where would you get the best ROI?  I know you think I am asking a very simplistic question, but many people have a hard time with this!  So, I ask again, if you really had to, whom would you target first?  The answer is so simple we sometimes do not want to admit the correct answer for our business. 

Focus a portion of your marketing expenditures towards the group that will represent over 80% of your sales – those customers in your backyard!

Now you can see who I think should be your target customer should be.  You might not completely agree with me, but ask yourself this question:  Do you own these customers in your market?

Past Sales Customers – Those you sold your vehicles in the past…24/60/72/86 months ago…Are they ready to buy again? Is someone else in the household ready to buy?

Past Service Customers – Those who hired you for your services in the past…  Has everyone in your service department database bought their car from you? No, on average 53% of service customers did not buy at the servicing dealership.  Have they purchased their vehicle from your competitor but like servicing with you?  Would they like to buy their next new car from you?

Competitors’ Customers – Those who live in your backyard… They drive right by your location to go to your competitors’ locations for services.

New Market Customers – Is there a customer that lives in one of your top selling zip codes that has not bought your brand of product, but could?

Market Share / Brand Share – What are you selling compared to your competitors?  What aren’t you selling compared to your competitors?

Many dealerships feel that they already own their market but I’m suggesting you should at least continue to strive to increase your share in 3 areas: Competitors’ Customers, New Market Customers and Market Share / Brand Share.  Customers in your backyard are where 80% of your sales will come from every year and, if you consistently target these customers on a monthly/quarterly basis, you can increase market share.

These targets are the key to your success in direct marketing.  How you go about creating these target lists is key.  Many think it is about distance, radius, and so on. 

A good way to determine your best possible lists is to look at your Top Selling Zip Codes.  There probably is a reason you have sold well in a particular zip code or not.  Distances are not always the reason.  It might be that a particular zip code is a suitcase/commuter zip code, where the consumer travels by your location every day and could buy your vehicles and/or services due to the convenience of your dealership.  Not always can we answer why, but numbers do not lie and historically there is always a pattern.  Take note of your Top Selling Zip Codes.  Additionally, look at your Low Selling Zip Codes, as they create drag on your direct marketing campaigns.

Direct marketing is a marathon of consistent messages to the correct list of customers.  When done this way, your ROI will incrementally increase on a monthly basis and enhance your Market Share / Brand Share.  Do not give up after 1-3 attempts; direct marketing must be aimed at this list of best targets consistently, rotating thru on a regular basis for a period of at least a year.  After completing your annual commitment, you will reap one of the best performing marketing investments in your portfolio.

~ Paul Ryan, Field Account Manager @ DMEautomotive

Bio:



Paul Ryan brings over 25 years of experience in sales, sales management, marketing, and client services. He joined DMEautomotive in February of 2008, as a Regional Territory Manager. With proven success as an inside sales representative selling the FullCircle Solutions’ Bullseye program, he was recognized frequently as Sales Person of the Month and received the highest honor of Sales Person of the Year for 2008. In August of 2009, Paul managed, “Direct-To-Dealer” - Mail Division, responsible for overseeing the sales for the “Direct-To-Dealer” Mail Division.  Currently he is traveling in the Midwest as Field Account Manager.  Paul graduated with a B.B.A, in Business Administration from Iowa State University in 1982.

Original blog posted at Automotive Direct Marketing

Each month, dealers spend thousands of dollars on marketing trying to drive traffic into their service departments. To a dealer, it is a beautiful thing when they see cars lined up in their service drive and hear the phones ringing at the service advisor stations. As a dealer, what more could you ask for?

Well here is what you are going to get…

If the lane is full and your advisors are busy helping those customers who drove their vehicle in or had an appointment, who is answering the phones and helping those customers who are calling in to set an appointment or ask questions?

Realistically, your “drive in” customers, who are ready to spend money, are not going to appreciate or tolerate waiting on your service advisors who are answering phone calls. Your “call in” customers, who are trying to spend money, are not going to appreciate or tolerate being put on hold. You now have a dilemma in your service department that must be addressed. 

Recently, during a conversation with David Vallone, an industry expert in Fixed Operations, it became apparent that this problem occurs on a regular basis in most dealerships and cannot be left unchecked. In essence, David explained that when service advisors are trying to work with “drive in” customers and answer phone calls during peak times, frustration sets in from all sides of the equation because of the chaos caused by all the activity in the drive.  He stated that once the phone starts ringing constantly with everyone busy with customers…it now becomes “the Angry Phone!”

Not only does the Angry Phone just keep ringing, the people who are calling are getting angry because their calls are not answered, directed to a voice mail, or placed on hold. If the advisor answers the call, the “drive in” customer gets angry because they are standing there confused as to why their visit to the dealership is less important than someone calling in. Even the advisor is getting angry because they are frustrated with the process and that has no chance of being right.

So…what is the solution to the Angry Phone problem? Implement a Virtual BDC live answer telephony “Backstop” system that is designed to answer the calls and make service appointments that your staff is unable to handle because they are busy or the call comes in after hours. The VBDC Backstop system can even handle your inbound calls after “x” number of rings not answered to ensure that your customers do not have to wait long.  This means that all calls are answered and no opportunities lost.

Please remember that profitable and long-term customer relationships are a by-product of timely and effective customer interactions that ultimately result in positive customer experiences. So eliminate the negative consequences of “the Angry Phone.”

~ Gary Mitchell

Director, Telephony & Virtual BDC Products, DMEautomotive

Bio:

Gary has 25 years of experience in providing franchised auto dealers with marketing and technology solutions designed to increase revenue and overall profitability. Gary has held national positions with ADP Dealer Services, LML Technologies, and DMEautomotive. He is currently responsible for researching and designing new products and marketing campaigns based on industry trends and specific dealership needs. He directly interfaces with Development and Product Management to monitor market needs and requirements, taking into account emerging technologies, competitor products / services, industry trends, and regulatory / compliance changes for both OEM and regulatory bodies.

LinkedIn Profile: http://www.linkedin.com/in/garymitchellauto

This blog has been republished from its original location at DMEautomotive’s blog

*Photo source: iStock.com

Showroom traffic control is a vital aspect of successfully operating a car dealership and depends heavily on a dealerships sales process.  Dealers spend thousands of dollars every month to get people to come into the store.   Therefore, it’s critical for dealers to have an effective sales process in place.  I am sure you’re thinking that you have a fairly effective process in place already…but, in today’s challenging economic times, there may be more you could be doing. I’ll provide you with 3 important rules to follow to increase sales and gross profits by establishing processes for showroom control.

Rule #1: Understand the customer’s vehicle needs and financial situation up front…to decrease the number of “pencils” and increase your bottom line.

In most stores, salespeople greet a customer with “How can I help you? What are you interested in?” and hopefully strongly urges them to take a test drive.  (Always require prospects to take a test drive.  If they don’t they are emotionally connected to the vehicle they test drove at your competitor and financially connected to your store). The salesperson does his /her own pencil then starts going back and forth between the desk and the customer to communicate the customer’s concerns and the dealer’s desire to make a buck and move some metal.   As the number of “pencils” increase, the gross profit decreases, and moving from one vehicle to another has the exact same negative effect on the bottom line. 

Why does it take 3 or 4 “pencils” to get a deal done?   It’s part of the sales process:  it’s likely the salesperson didn’t understand the customer’s vehicle needs or they didn’t understand the customer’s financial situation before they landed on the vehicle. 

Solution: Most  Salespeople usually don’t ask the right questions, such as,  “Why are you looking at this particular vehicle?  Have you been shopping?   What other vehicles have you looked at? Did you make an offer?  Why didn’t you buy?” It’s the “art of a sale”.  Salespeople have to have a natural ability to converse with people.  We can’t start peppering the prospect with “Why? Why?  Why?”  But you can’t grab the keys to a vehicle without knowing something about the customer and their interests.   It’s important to understand the opportunity in front of you before you take action.

Rule #2: Get a manager involved in the process UP FRONT!

After all of that, typically your staff will then get a manager involved in the transaction to “save the deal”!  The salesperson’s mentality is typically, “Help me! They’re going to walk!  We’re WAY OFF on monthly payments, what do I do?”  Guess what?  It’s too late!  The manager really doesn’t stand a chance.  Your sales process got him involved at the absolute worst time.  It’s like asking him to get on a bucking bronco after the gate has opened.   THINK ABOUT IT!  Your managers are your best “closers” and you’re not even getting him in the game until it’s too late.

I know what you’re thinking…I thought it too…”We don’t have time to do that.  We cut back our staff.   We’re running with only 2 managers etc.”  I thought the exact same thing until I learned how it was done and watched others try it.  When you get your best closers involved up front you reduce the number of pencils and the number of times you move from one vehicle to another and the time it takes to make a deal.   Because you already have a better understanding of your customer’s vehicle and financial needs, you will increase your gross profits.

Rule #3: Carefully manage your customer’s perception of the situation

One of the best practices I learned in my 15+ years was from a GM in a large store that insisted on greeting every customer before they took a test drive.  He introduced himself as the GM and he was “the man”… the best person in his store…and he would make sure the prospect drove home in the best vehicle for their needs at the best price in their market.  I asked, “How can you work every deal?”  He told me he didn’t work any deals.  Every salesperson told their prospect that they needed to go to the GM to make sure they got the BEST DEAL IN TOWN.  The salesperson spent 2 minutes in the GM’s office and then went back to the customer and worked the deal.  The customer control they established by getting managers involved up front in the process gives the customers the perception the dealer wants them to have.  Customer perception is a HUGE factor in gross profit.  If a customer’s perception is that he got ripped off, they will tell every person they know about “their terrible experience” at your dealership.  You’ll NEVER get a chance to sell him or anyone they know another vehicle.  The guy you made $3,800 on whose perception is that the “THE MAN” worked his deal.  He’ll tell everyone he knows about the “outstanding experience” he had at your dealership.  

In summary, by understanding your customer’s situation, getting your best people involved in the transaction up front, and managing your customer’s perception you will optimize your sales process, increase your gross profits and give your customers the perception and the vehicle you want them to drive away with.

~ Steve Dozier, Sales Director @ DMEautomotive

Bio:
Steve Dozier brings 15 years of experience in the automotive industry to DMEautomotive. Before joining Full Circle Solution and DMEautomotive, he held upper level management positions in the retail industry. Steve also owned a consulting company that specialized in CRM and direct mail, which brought in $2 Million in Sales for approximately 5 years. While serving as a consultant Steve was consistently recruited by the top 3 CRM firms of that time.  Since starting with DMEautomotive Steve has held a managerial position overseeing the Dealer-to-Dealer team. He is responsible for the entire telephony sales department.  Steve is married with two children and enjoys scuba diving and boating in his free time.

LinkedIn: http://www.linkedin.com/pub/steve-dozier/10/903/623