Dealer Inspire
The Backbone to the Dealership - Are You Using it?
We all have great tools to use in the automotive business, but the question is do we use them to their fullest potential? The products that we use on a daily basis is only as good as we use them. The one that I know that I am in about 24/7 is the CRM. Yes, there are a lot of them to choose from in the marketplace, but bottom line comes down to the user and actually using it. I thought of this while I was watching Joe Webb's new video on a Long Day at the Car Dealership (see below). When I saw Arnold clicking left message and lost, and dead, I wonder to myself how many times this happens in the dealership?
I want to specifically hit on the "left message", "lost sale", and "dead deal". I have no idea what percentage of customers that leave the dealership without buying don't get any follow up at all. I am going to venture to say that it is a very high percentage. I know that we are all guilty of it and getting in a funk and 'fake' our calls out. I know that even though I have been successful in the business, I will look in the mirror and admit that I have 'faked' a CRM call out. Do I do it on a regular basis? No. But I have done it. So how do we get out of 'faking' the call in the CRM? Those that have been in the business for a while know how to do it, but how do we get past it?
-
The "left message" status. Find a reason to call them.
- First off, call to thank them for coming in. In the latest reports, a customer will visit 1.3 dealerships before making a purchasing decision. If there were in front of you, chances are, they are not just there to kick tires like back in the 70s-early 90s. Make yourself stand out from that other dealership that they may just visit along with yours.
- If they were on a new vehicle, call them on a late model trade that you may have just traded for. It may just perk their interest enough to come back in again and you will have another chance at selling them a vehicle.
- If there is a trade involved, try to get them back in by offering to sell their car to another customer. Get them in, then in your vehicle again, and then work the used car manager or even the customer before them.
-
Marking customers 'lost sale.'
- Let's face it, it happens. We can't get them all. But one thing we can do is offer service to them. Chances are, the salesperson that they bought from, especially used, didn't properly introduce them to their service department. Offer them a free oil change just to get them back in the door again. This may or may not help, but you are getting them back in the door again and maybe they will remember that down the road.
- Ask for referrals or when other family members may be in the market for a new vehicle. Make good notes in the CRM and make calls to them just like you sold them the car.
-
The "dead deal" status.
- I personally don't believe in the dead deal status unless they are actually dead, as in not breathing or 6 feet under. When you mark a deal a 'dead deal' in the CRM, that will discontinue any contact to the customer via email marketing campaigns. Keep your name in front of them down the road. You just never know when they will be in the market for a new vehicle. If you don't mark them 'dead deal,' hopefully your name will be in front of them 12 times a year or so.
The CRM should be your backbone to the dealership. If you run out of customers to call that are scheduled, you can always lean on your CRM and dig in and make something happen.
Dealer Inspire
The Backbone to the Dealership - Are You Using it?
We all have great tools to use in the automotive business, but the question is do we use them to their fullest potential? The products that we use on a daily basis is only as good as we use them. The one that I know that I am in about 24/7 is the CRM. Yes, there are a lot of them to choose from in the marketplace, but bottom line comes down to the user and actually using it. I thought of this while I was watching Joe Webb's new video on a Long Day at the Car Dealership (see below). When I saw Arnold clicking left message and lost, and dead, I wonder to myself how many times this happens in the dealership?
I want to specifically hit on the "left message", "lost sale", and "dead deal". I have no idea what percentage of customers that leave the dealership without buying don't get any follow up at all. I am going to venture to say that it is a very high percentage. I know that we are all guilty of it and getting in a funk and 'fake' our calls out. I know that even though I have been successful in the business, I will look in the mirror and admit that I have 'faked' a CRM call out. Do I do it on a regular basis? No. But I have done it. So how do we get out of 'faking' the call in the CRM? Those that have been in the business for a while know how to do it, but how do we get past it?
-
The "left message" status. Find a reason to call them.
- First off, call to thank them for coming in. In the latest reports, a customer will visit 1.3 dealerships before making a purchasing decision. If there were in front of you, chances are, they are not just there to kick tires like back in the 70s-early 90s. Make yourself stand out from that other dealership that they may just visit along with yours.
- If they were on a new vehicle, call them on a late model trade that you may have just traded for. It may just perk their interest enough to come back in again and you will have another chance at selling them a vehicle.
- If there is a trade involved, try to get them back in by offering to sell their car to another customer. Get them in, then in your vehicle again, and then work the used car manager or even the customer before them.
-
Marking customers 'lost sale.'
- Let's face it, it happens. We can't get them all. But one thing we can do is offer service to them. Chances are, the salesperson that they bought from, especially used, didn't properly introduce them to their service department. Offer them a free oil change just to get them back in the door again. This may or may not help, but you are getting them back in the door again and maybe they will remember that down the road.
- Ask for referrals or when other family members may be in the market for a new vehicle. Make good notes in the CRM and make calls to them just like you sold them the car.
-
The "dead deal" status.
- I personally don't believe in the dead deal status unless they are actually dead, as in not breathing or 6 feet under. When you mark a deal a 'dead deal' in the CRM, that will discontinue any contact to the customer via email marketing campaigns. Keep your name in front of them down the road. You just never know when they will be in the market for a new vehicle. If you don't mark them 'dead deal,' hopefully your name will be in front of them 12 times a year or so.
The CRM should be your backbone to the dealership. If you run out of customers to call that are scheduled, you can always lean on your CRM and dig in and make something happen.
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Dealer Inspire
Takeaways From the GooglePlex
Last week, I had the opportunity with about 100 other dealers to attend the Digital Summit at the Google Headquarters in Mountain View, CA. It was an experience in itself just to be at the Googleplex. There was great info at this conference shared by Googlers (employees of Google) and some industry leaders.
The week kicked off with Todd Rowe and how are you defining your market. Are you defining it by the company down the street, the local market, or something else? The big thing is that there is so much 'stuff' that we are competing against when coming to online marketing. It isn't just dealers, but also some of the big hitters like Autotrader and cars.com. We all have to get smart, get involved, and get excited.
Next up was Guy Kawaski talking about being "Enchanting." Guy was a dynamic speaker and I loved everything that he had to offer in being enchanting. Big takeaway from Guy was achieving 'likability.' No one buys from someone that they don't like.
Of course, a meeting at Google HAS to involve a conversation and presentation on ZMOT. We all have heard the 18.2 sources over the last several months, but one thing that set me back was in the age bracket of 18-34 year olds, that number jumps up to 25.6 sources are used in researching a new or used car. That was my big takeaway on that part of the presentation.
Duncan Scarry was up next and he was talking about Influence without Interaction. A couple of takeaways here. The first was that 76% of the public that are on an OEM site will visit a dealer site within 30 minutes of being on the OEM's site. 60% of those people that get to your website have not decided on what make or model they end up buying.
Surojit Chatterjee from Google was up next and he is the head of Mobile at Google. A few things stood out here. One third of all Americans will own a tablet by the end of 2015. Is your website tablet friendly? Also, he said that 57% of the public would not recommend a company if they have a bad or no mobile site in place. If they don't, 40% will go to another competitor's website.
Grant Cardone spoke after lunch, and he was a dynamic, funny speaker to keep those sleepy eyes that can happen after lunch at any conference. We need to make the sales process shorter. Customers want to be in and out quicker. What are you doing to shorten that process? The one phrase that stood out with me is that we need to be "persistent and consistent." This comes in every aspect of sales whether you are selling a pen or a car.
Nicholas Boos from Google shed some more insight on mobile marketing. 1 in 5 searches are being done in relation to your desktop and 1 in 3 are localized searches. Nearly 30% of Google searches are being done on a phone.
Jason Ezell from Datium and Amir Amirrezvani from DealOn talked about website conversions. They shared some insight that the average bounce rate on over 10,000 dealer websites is 63%! That number just blew me away. That just goes to show that customers are using the internet to look up phone numbers and they will leave. What are you doing to engage that customer? Average conversion of customers visiting dealer sites were at 2%.
These are just some of the takeaways from the conference last week. Biggest takeaway was mobile is key in the coming years. Nearly 30% of Google searches are done via phone. I have seen this firsthand as the mobile traffic and usage to our website go up month after month. So what do you see yourself doing in the next year or two?
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Dealer Inspire
Takeaways From the GooglePlex
Last week, I had the opportunity with about 100 other dealers to attend the Digital Summit at the Google Headquarters in Mountain View, CA. It was an experience in itself just to be at the Googleplex. There was great info at this conference shared by Googlers (employees of Google) and some industry leaders.
The week kicked off with Todd Rowe and how are you defining your market. Are you defining it by the company down the street, the local market, or something else? The big thing is that there is so much 'stuff' that we are competing against when coming to online marketing. It isn't just dealers, but also some of the big hitters like Autotrader and cars.com. We all have to get smart, get involved, and get excited.
Next up was Guy Kawaski talking about being "Enchanting." Guy was a dynamic speaker and I loved everything that he had to offer in being enchanting. Big takeaway from Guy was achieving 'likability.' No one buys from someone that they don't like.
Of course, a meeting at Google HAS to involve a conversation and presentation on ZMOT. We all have heard the 18.2 sources over the last several months, but one thing that set me back was in the age bracket of 18-34 year olds, that number jumps up to 25.6 sources are used in researching a new or used car. That was my big takeaway on that part of the presentation.
Duncan Scarry was up next and he was talking about Influence without Interaction. A couple of takeaways here. The first was that 76% of the public that are on an OEM site will visit a dealer site within 30 minutes of being on the OEM's site. 60% of those people that get to your website have not decided on what make or model they end up buying.
Surojit Chatterjee from Google was up next and he is the head of Mobile at Google. A few things stood out here. One third of all Americans will own a tablet by the end of 2015. Is your website tablet friendly? Also, he said that 57% of the public would not recommend a company if they have a bad or no mobile site in place. If they don't, 40% will go to another competitor's website.
Grant Cardone spoke after lunch, and he was a dynamic, funny speaker to keep those sleepy eyes that can happen after lunch at any conference. We need to make the sales process shorter. Customers want to be in and out quicker. What are you doing to shorten that process? The one phrase that stood out with me is that we need to be "persistent and consistent." This comes in every aspect of sales whether you are selling a pen or a car.
Nicholas Boos from Google shed some more insight on mobile marketing. 1 in 5 searches are being done in relation to your desktop and 1 in 3 are localized searches. Nearly 30% of Google searches are being done on a phone.
Jason Ezell from Datium and Amir Amirrezvani from DealOn talked about website conversions. They shared some insight that the average bounce rate on over 10,000 dealer websites is 63%! That number just blew me away. That just goes to show that customers are using the internet to look up phone numbers and they will leave. What are you doing to engage that customer? Average conversion of customers visiting dealer sites were at 2%.
These are just some of the takeaways from the conference last week. Biggest takeaway was mobile is key in the coming years. Nearly 30% of Google searches are done via phone. I have seen this firsthand as the mobile traffic and usage to our website go up month after month. So what do you see yourself doing in the next year or two?
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Dealer Inspire
What's Your in-spuh-rey-shuhn?
We all have an inspiration to be the best that we can be. I hope that you all read for that inspiration. We all have a different inspiration and drive to make us the best in the industry. One thing that I have noticed over the years are how coaches are. They for some reason give the best inspirational speeches ever. As managers within the marketplace, we have to be like those coaches. Take a look in the mirror and think about your sales meetings with your teams. Here are a few tips that I like to take into account when having meetings with our team.
- We have to give your team that inspiration to do better.
- Have a plan when you go into your sales meetings.
- Remember, the goal for sales meetings is to pump your team up, not brow beat them because of what may have or may not have happened the day prior.
- Give praise to those who deserve it. When given praise in public, that may just give that extra kick in their step while they are with that next customer.
I think we all have been in those meeting where we have just been worn down to where you just don't want to work that day. Think about that when you have your meetings with your team. We all know that happy employees make happy customers. Do you want them up and walking with a kick in their step or down walking with their head down when they walk out of your office or meeting room?
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Dealer Inspire
What's Your in-spuh-rey-shuhn?
We all have an inspiration to be the best that we can be. I hope that you all read for that inspiration. We all have a different inspiration and drive to make us the best in the industry. One thing that I have noticed over the years are how coaches are. They for some reason give the best inspirational speeches ever. As managers within the marketplace, we have to be like those coaches. Take a look in the mirror and think about your sales meetings with your teams. Here are a few tips that I like to take into account when having meetings with our team.
- We have to give your team that inspiration to do better.
- Have a plan when you go into your sales meetings.
- Remember, the goal for sales meetings is to pump your team up, not brow beat them because of what may have or may not have happened the day prior.
- Give praise to those who deserve it. When given praise in public, that may just give that extra kick in their step while they are with that next customer.
I think we all have been in those meeting where we have just been worn down to where you just don't want to work that day. Think about that when you have your meetings with your team. We all know that happy employees make happy customers. Do you want them up and walking with a kick in their step or down walking with their head down when they walk out of your office or meeting room?
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Dealer Inspire
The Secret to My Success
I hope that this caught your attention because I do have a secret. I was reading this week's issue of Automotive News on Monday and there is an article on page 24. If you don't get it, or your owner or GM hangs onto it for a few weeks and then passes it around, go find it. It is about Internet Leads. It basically comes down to how much dealers are not responding effectively to i-leads.
The survey was conducted by Piper of Monterey and shopped 4331 different dealerships and brands. Here are some of their findings:
- Nearly 1 in 4 queries went unanswered within the first 24 hours.
- Only 16% of the leads submitted received an auto-responder. I know that there is room for argument whether or not to have one, but I was surprised how low that number was.
Breaking it down by brand, there were some shocking things brought to the surface. You would think that Toyota/Scion would be great in responding to leads since it is a little more geared towards Gen-Y (particularly on Scion). They scored second worse with 36% of their dealerships not responding to the leads submitted. Mini was actually worst in not responding to leads.
The top six brands were Lexus and Infiniti tied for first; Acura, third; Lincoln, Ford, and Honda tied for fourth.
Along with this article, Cobalt just released it's eshopper results from 2011. The results are very similar. Here are some of their results and taken from their study:
- 2 out of 10 leads never were responded to.
- 2 out of 3 weren't invited in for a test drive.
- 75% of the leads weren't quoted a price when requested.
These are just a few of their results. There is a wealth of information out there on this thing that we call the internet on message boards like Driving Sales among others. Car people are engaged on there and sharing ideas and practices, but the results are showing that so many dealers are missing the mark.
Here is my secret to our success and don't tell anyone. Answer the leads!!! It's just that simple. Yes, response time is important, but more importantly, the quality of the content maybe more important as the Cobalt study revealed. Now, respond to this post, and go respond to those leads sitting in that "New Bucket" in your CRM.
You can read the Cobalt study here. (Take note what you have to do in order to get a copy of the study.)
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Dealer Inspire
The Secret to My Success
I hope that this caught your attention because I do have a secret. I was reading this week's issue of Automotive News on Monday and there is an article on page 24. If you don't get it, or your owner or GM hangs onto it for a few weeks and then passes it around, go find it. It is about Internet Leads. It basically comes down to how much dealers are not responding effectively to i-leads.
The survey was conducted by Piper of Monterey and shopped 4331 different dealerships and brands. Here are some of their findings:
- Nearly 1 in 4 queries went unanswered within the first 24 hours.
- Only 16% of the leads submitted received an auto-responder. I know that there is room for argument whether or not to have one, but I was surprised how low that number was.
Breaking it down by brand, there were some shocking things brought to the surface. You would think that Toyota/Scion would be great in responding to leads since it is a little more geared towards Gen-Y (particularly on Scion). They scored second worse with 36% of their dealerships not responding to the leads submitted. Mini was actually worst in not responding to leads.
The top six brands were Lexus and Infiniti tied for first; Acura, third; Lincoln, Ford, and Honda tied for fourth.
Along with this article, Cobalt just released it's eshopper results from 2011. The results are very similar. Here are some of their results and taken from their study:
- 2 out of 10 leads never were responded to.
- 2 out of 3 weren't invited in for a test drive.
- 75% of the leads weren't quoted a price when requested.
These are just a few of their results. There is a wealth of information out there on this thing that we call the internet on message boards like Driving Sales among others. Car people are engaged on there and sharing ideas and practices, but the results are showing that so many dealers are missing the mark.
Here is my secret to our success and don't tell anyone. Answer the leads!!! It's just that simple. Yes, response time is important, but more importantly, the quality of the content maybe more important as the Cobalt study revealed. Now, respond to this post, and go respond to those leads sitting in that "New Bucket" in your CRM.
You can read the Cobalt study here. (Take note what you have to do in order to get a copy of the study.)
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Dealer Inspire
Let's Accessorize!
I am hearing across the industry from people all over the country that February was an incredible month. We are no different. Not only did we have a great month, the Parts Department had a record month as well. Living in the snow belt, we would expect that to be with a successful Body Shop. This year has been different though since we have had a mild winter. We have only moved cars 2 or 3 times to plow. Body Shop is holding its own, but has a little less business since mother nature decided to get with the global warming this year.
So how did the Parts Department have a great month with wholesale to the Body Shop down? Two words...Accessory Sales. When a customer decides on their new or certified vehicle of choice, the salesperson will get all of the paperwork together for the Business Department and then while waiting, ask the customer how they would like to "personalize their new________." I have no idea what the percentage of customers that decided to purchase accessories, but for the parts department to have a record month while wholesale was down a little, that has something to do with what the sales department contributed.
So what are you doing with your accessory sales? This will help the dealership in two ways. One, it will increase profit in the parts department. Yes, it is a wholesale to the sales department, but profit is profit. Then the sales department will have additional profit in the accessory sales.
With consumers keeping their vehicles longer (average age of vehicle on the road 11 years), we as salespeople have to take advantage of every profit center possible. So how can you make it successful?
- Pay the sales team differently. Don't make the accessory sale as a part of the commissionable gross. Pay them the percentage of accessory gross separate from the deal and don't pack the commission. It goes back to the WIIFM?
- Have an accessory sale sheet and or accessory catalog for the vehicles to be presented at the time of the sale. Ask the customer how "would like to personalize your new vehicle" and not "would you like to buy some accessories for your new car?"
- Be consistent. Offer it on 100% of your customers. Even the ones that beat you down and down, chances are, they are ones to take care of their vehicles and will probably at least buy all weather mats.
Hopefully you will be able to at least add a $100-$200 or more to your per vehicle average, but every little bit helps, right? How are you presenting accessories if at all?
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Dealer Inspire
Let's Accessorize!
I am hearing across the industry from people all over the country that February was an incredible month. We are no different. Not only did we have a great month, the Parts Department had a record month as well. Living in the snow belt, we would expect that to be with a successful Body Shop. This year has been different though since we have had a mild winter. We have only moved cars 2 or 3 times to plow. Body Shop is holding its own, but has a little less business since mother nature decided to get with the global warming this year.
So how did the Parts Department have a great month with wholesale to the Body Shop down? Two words...Accessory Sales. When a customer decides on their new or certified vehicle of choice, the salesperson will get all of the paperwork together for the Business Department and then while waiting, ask the customer how they would like to "personalize their new________." I have no idea what the percentage of customers that decided to purchase accessories, but for the parts department to have a record month while wholesale was down a little, that has something to do with what the sales department contributed.
So what are you doing with your accessory sales? This will help the dealership in two ways. One, it will increase profit in the parts department. Yes, it is a wholesale to the sales department, but profit is profit. Then the sales department will have additional profit in the accessory sales.
With consumers keeping their vehicles longer (average age of vehicle on the road 11 years), we as salespeople have to take advantage of every profit center possible. So how can you make it successful?
- Pay the sales team differently. Don't make the accessory sale as a part of the commissionable gross. Pay them the percentage of accessory gross separate from the deal and don't pack the commission. It goes back to the WIIFM?
- Have an accessory sale sheet and or accessory catalog for the vehicles to be presented at the time of the sale. Ask the customer how "would like to personalize your new vehicle" and not "would you like to buy some accessories for your new car?"
- Be consistent. Offer it on 100% of your customers. Even the ones that beat you down and down, chances are, they are ones to take care of their vehicles and will probably at least buy all weather mats.
Hopefully you will be able to at least add a $100-$200 or more to your per vehicle average, but every little bit helps, right? How are you presenting accessories if at all?
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