Joe Webb

Company: DealerKnows Consulting

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Joe Webb

DealerKnows Consulting

Dec 12, 2010

Social Media-ville

 

Should a Stop in Social Media-ville be on Your Travel Agenda?

You’re a dealer. You’re driving along the car selling interstate, minding your own business, focusing on your own instrument panel of metrics when those dreaded lights flash in your rear view mirror. Behind you, on a motorcycle no less, is the OEM telling you to pull over. You do so, pull out your financial statements and composites they may ask for, and roll down the window. As they approach, they tell you that you need to get off the car-selling interstate and take the information highway to Social Media-ville.

Many dealers are being asked (by the OEM or their industry peers) to slow down when driving through Social Media-ville. “Get out of the car and spend some time there. You’ll like it.” So you have to ask them “For what purpose? I’m making good time and I see no need to stop.” If you don’t have the people in place to manage it or the goals set to invest time in it, why should you even let up on the accelerator? Why on Earth would you want to have anyone in your dealership slow down their car-selling efforts to take a peek around Social Media-ville? If it isn’t going to be a major boon to your sold unit or service RO volume, what all the fuss is about?

These are all great questions. There is no reason to make Social Media-ville a stop on your travels unless you are prepared to set-up shop. Sure, countless other dealerships have gone to Social Media-ville and love it there. The weather is nice, they live at your own pace, they are active in the community and their business has thrived in the environment because of their participation. 

However, others haven’t been so lucky. They changed their travel plans on a whim and moved into town hoping their presence alone would be enough to get them invited to the car-selling party. Sadly, this is not the case. Before visiting Social Media-ville, a dealer must have a strategy on how to become acclimated when they arrive. If a dealer is unwilling to be an eager, energetic participant in the community, they will see your online property value decline. Why? Because they don’t know why they should have a home there in the first place.

So if you are doing well on the road to the sale that you are on, and do not have the time, willingness, staff, or know-how to be a worthy citizen in Social Media-ville, I kindly ask you to keep driving. Nothing to see here.  No need to clutter up our hamlet with tourists who contribute nothing to our conversations. Follow the street signs out of town and don’t come back until you are ready to bring something new and interesting to the party.  

Joe Webb

DealerKnows Consulting

President

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Joe Webb

DealerKnows Consulting

Nov 11, 2010

A Vendor Scorecard

 

With advancements changing in the online marketplace daily, vendors must realize their products must change as well…just as quickly. Dealers won’t wait around forever as their vendor clients continue to sit on their hands. So here is my challenge to every vendor:

I want a Vendor Scorecard. I believe vendors should create a scoring system that allows all of their dealers to see, review, and vote on what advancements their teams should put into action. Not support issues (though a Vendor Scorecard could be beneficial for this as well), but an idea exchange where people on the ground can tell the people in the high-rises what their system NEEDS to be able to do. It could be a small password-protected community within your software that allows ALL dealers to post their product enhancement requests so that ALL other dealer clients can see. Make it available to your own loyal public. Each product enhancement request should be time-dated and stamped so we know just how long it takes the vendor to react. Not respond to… React. Fix. Change. Develop.

Then, take it to the next step, and allow every dealer client to VOTE on which product enhancements they most desire to see active sooner rather than later.  You will create your own weighted scale as to which improvements to focus on completing. If you so desire, consider giving those few dealers that utilize your system to its fullest, are your oldest clients, or represent you in the online communities a heavier VOTE than others.

DrivingSales has taken one step by bringing Vendor Ratings into the forefront and asking the automotive retail professionals that peruse this site to vote on who and why they recommend the companies they’ve chosen. This has been a good way to help vendors gain exposure and allow dealer personnel to give feedback to their peers. When a vendor’s reputation is questioned on these sites, it is amazing how quickly they respond. They either scurry to cover up the negativity or do their due diligence to correct it before it damages their business. 

The end goal here is to let your own community of clients that USE your product to IMPROVE your product. I think there is a progressive way to do this without risking a vendor’s reputation. 

If you are a vendor reading this, please don’t hate me for saying it, but your product/solution/sites CAN improve. Not “will”, but “can”. You can enhance your offerings to dealers if you just listen closely to your current clients. As someone who helps dealers maximize their current providers’ solutions, I see far too many no-brainer enhancements that still are not being implemented. When I request a change from a vendor or give them (free) advice on how to better their offerings, I hear the same responses constantly. “We are working on it.” “I’ll pass it along.” “That is scheduled to be in our next release of enhancements 6 months from now.” What else do I hear? “I don’t understand.” THAT is the problem. You aren’t using the product the same way an Internet Sales Manager or Sales Manager uses it so you have your blinders up to the real needs of your software.

Dealers are asking themselves daily: “Where the heck do all of my product requests go?” “How many times do I have to suggest an improvement for it to go overlooked?” “When will this feature become available or active?” “Is anyone listening to what I want?”

I see no better way to get a vendor’s attention than making product enhancement requests a centerpiece to their customer service initiatives. Customers will finally be able to track their relationship with the vendors and hold them accountable if need be. Make them time-stamped suggestions with enough of your constituents voting for it and there will be no way a dealer can have a deaf ear. It is time more vendors listen to their clients first instead of listening to their own random ideas.

As I said, this is a CHALLENGE. The first vendor who decides to make the direction of their technology a democracy by creating a similar Vendor Scorecard available for all of their dealers wins my approval and another blog post dedicated to their innovative ways. Fair enough?

And if you need more questions or details on what it should look like, just reach out to me at joe@dealerknows.com - http://dealerknows.com - or - http://virtualdealertraining.com .  

Joe Webb

DealerKnows Consulting

President

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Joe Webb

DealerKnows Consulting

Oct 10, 2010

The Push and Shove Proposition - by Joe Webb

 

Just how much can a dealer and their team be pushed into the digital age? Just how far can a dedicated Internet Sales Manager push the dealer ownership into an internet culture? Just how fast can a trainer push the dealership’s online efforts? Just how quickly can a dealer demand old dogs to perform new tricks? Total buy-in is hard to come by, worth its weight in gold, and tremendously hard to achieve. Still today, opposition lurks around every corner.
 
This is the quintessential problem facing ISMs, facing trainers… and facing dealerships. Many know where their dealership should be, but are far too reluctant to cause an upheaval in the way the showroom and service department operates. No one wants a mutiny on their hands. So how hard should we push?
 
While visiting a new dealer client of mine, I found that the entire showroom still utilizes an up sheet to log their customers. (I use the word “utilize” amazingly loose here). The owner backs this strategy as they don’t even use a computer themselves.  Worse off, only the customers that were sold were ever logged on the up sheet. “Phone ups taken are NOT to be logged on the sheet” said management. “Too confusing.”) To that, I say “WHAAAAAAT?”  Their store is achieving strong numbers (I can only assume by sheer luck, will, and determination), so I wonder if it is right to force a CRM upon them if it possible the sales staff and ownership would never enforce its use?
 
Top-down support can be successful, but even a direct initiative from the top (or from a trainer) cannot guarantee total buy-in. Could the expense of a CRM cause more damage than good? Obviously, as a trainer, I believe if I impose my will, I can get the culture of the store to change for the better. But am I wrong to PUSH for it? Would an ISM bringing in a new technology be able to have the same push? If not… if it is for the good of the store… when would it be right to go from push to shove?
 
These are the types of questions many dealers, ISMs, and trainers ask. Obviously, I believe a CRM is one of the most useful tools that could EVER be employed at a dealership, but when pushing for something becomes shoving, it may be best to focus training efforts on those changes we can control. Is it just enough to have an ILM for the Internet and BDC team?
 
Should merchandising, pricing strategies, soc med, lead management, sales training, and phone skills be our focus until the salespeople and management switch sides in the game of dealership tug of war? Must we always wait until we have a team pulling with us? Sure, once the dealer and upper management help the push and majority rules, it is an easier change to make.
 
As a trainer/consultant, it is my duty to suggest (and push for) what is best for my dealership clients… even if they don’t know what is best for them. It is like forcing a child to eat their vegetables. It helps them grow no matter how much they hate the taste. Not all dealers are growing. Some are happy where they are, but still seek help from others just because they don’t know. When basic, real-world data is not enough of a driving force to make a switch, logical thinking gets you nowhere, and potential growth is disregarded because the fear the unknown, a Shove strategy must be utilized. Times like these call for the push and shove proposition.

Joe Webb

DealerKnows Consulting

President

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Joe Webb

DealerKnows Consulting

Sep 9, 2010

Your DSES Homework Assignment

The 2nd annual DrivingSales Executive Summit is rapidly approaching and Jared Hamilton and Charlie Vogelhiem has assembled a rock n’ roll cast to open our minds to the changing efficiencies of digital marketing for dealers. As it is with all conferences, there is no reason to go if you are just going to hobnob. Last year’s event was a marvel in quick, big picture discussions, engaging roundtables and motivational learning.

Some of the valuable memories from last year’s event was the SEO panel with Brian Pasch, JD Rucker, and Paul Rushing as they detailed out the impending trends that will (and have) taken place on the front of Search Engine Optimization. Skip Streets broke out some eye-opening data about the internet shopper’s lifecycle as a buyer. Dennis Galbraith discussed dealer operations and marketing strategies (and reminded us that any good closer has a beautiful wife by his side). Will Travis discussed the power of a changing media environment and Aaron Strout targeted specific movement in the social media realm. 

As you can see, I took my notes at the event, but I came prepared. Here is your Homework Assignment to ready yourself for the deluge of intensive information you’ll get from the 2nd DrivingSales Executive Summit.

Let’s focus on the Speakers:

Scott “the Full” Monty from Ford Motor Company and creator of The Social Media Marketing Blog is going to detail how Ford has stayed ahead of its competitors with their top-tier uses of social media. 

Question #1:

Scott Monty coined the Oxford Dictionary of English-accepted term
  • Herewitherto
  • Tweetup
  • Social Mediarrhea
  • Flaced (the act of having your Facebook page stolen)
Another amazing speaker at the event is Jeremiah Owyang of the Altimeter Group. A master in web strategy, his blog Web Strategy, is read by 70,000 unique visitors a month. Mr. Owyang is going to be detailing the organizational shift dealers must make because of the current online trends of the world.

Question #2:

Jeremiah "not Amish regardless of first name" Owyang was famously quoted...
  • “God punishes those who attempt to defy me”
  • “Social media ain’t nothing’ but a thang.”
  • “What’s the one thing brands, gangs, and dogs all have in common? They all mark their territory.”
  • “My pillow has a heartbeat.”
The venerable Dale Pollak of vAuto will be speaking on his favorite topic of presenting your inventory specifically based on the market demand and the cultural mindset that must be abandoned to move forward with your pricing strategies.

Question #3:

Dale Pollak made headlines this past month after it was announced he
  • Sold vAuto to AutoTrader
  • Spoke only 18 times at conferences and 20 Groups instead of his usual 25 times a month
  • Defeated his sensei in battle to become an official 8th degree Hachidan black belt in Kenpo martial arts
  • Bought a sweater.
Eric Miltsch, Internet Director for Auction Direct USA – a used car superstore – will be discussing the many uses of location-based, mobile technologies and how dealers can drive visitors and brand awareness using these and similar social media tactics.

Question #4: 

Eric recently launched his very own iPhone app titled…
  • Eff / Marry / Kill
  • Contagious?
  • CarZar
  • NachoDaddy
NY Times Best-Selling Author and Sales Trainer, Grant Cardone, is a last minute addition to the DrivingSales Executive Summit agenda. Grant will be discussing how technology is changing the sales field and talk about the fundamental skills needed to move forward.

Question #5:

After headlining the Innovative Dealer Summit in Denver last month, Grant Cardone and yours truly, Joe Webb, battled in an intense billiards tournament with (fellow DSES speaker) Brian Pasch of PCG Consulting Group and Brock Allen. Who lost the billiards tournament?
  • Brian Pasch and Brock Allen
  • Brian Pasch and Brock Allen
  • Brian Pasch and Brock Allen
  • Brian Pasch and Brock Allen
Once again, I, along with many of my peers (and friends that I don’t consider peers) will be in attendance at the DrivingSales Executive Summit and I am looking to take away some more great information. For you to do the same, make sure to familiarize yourself with these speakers and take this homework assignment. If you honestly can’t answer any of these questions above – you don’t just need to register and attend, but likely visit the hospital for an MRI because you were probably dropped on the head as a baby.

Joe Webb

DealerKnows Consulting

President

2377

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Joe Webb

DealerKnows Consulting

Aug 8, 2010

Overthinking It

Setting the Insane Parameters for a Legitimate BDC/Internet Sale


While on-site training at a dealership recently, the dealer and I put into place a new pay plan for their BDC team. However, he had a concern that the BDC team would reach new heights in their bonus levels by taking credit for sales that they didn’t put enough work into to deserve. Reasonable enough concern.

My answer was that they simply needed to be spot checked by a manager to keep them honest. Unfortunately, this answer was not good enough and I was asked to detail the very specific parameters that count for a BDC/Internet sale. Since I myself have managed leads and handled internet sales myself, I know the time that is put into bringing a customer in from prospect to appointment show. I understand not all customers set appointments. As I started putting the rules in place, I realized that I was overthinking it. However, if it has to be written and defined, I didn’t want to leave anything out. 

Allow me to first state my professional opinion that what can count as a sale for BDC members is subjective. You should indeed review and spot check each and every sale the BDC team turns in, but this can be time-consuming so it is best if it is handled by their own department manager. You hired the person and put them in charge so allow them to use their best judgment to decide what is “significant involvement” and if it warrants a sale. Regarding “significant involvement” being a legitimate reason to count a sale, we have to recognize that 40% or so of all customers in contact with a dealership will not set a specific appointment, but will use the data they acquired to still negotiate and purchase from the dealership they were best handled by. That is why I believe there IS a value for continued, true, live contact and information exchanged with a customer.

If you do attempt to put a specific framework around what is deemed a sale or appointment, here are a few potential “requirements” to look for that could, in each instance, warrant counting the sale.
1)       Inbound call was handled and an appointment was set. Customer arrives for appointment and purchases the vehicle.  
a) If customer purchases the vehicle within a 48 hour window around the appointment time, after it was set – if post appt. time, follow up call for missed appointment must have been made by BDC team member, but contact on the follow up call is not necessary.
b) Customer arrives for appointment set by BDC agent, doesn’t purchase, but significant notes are put in by the BDC agent after hearing the outcome from manager/salesperson, and the salesperson OR BDC agent follows up with customer enough to bring them back in (within 10 days time) and then the customer purchases.

2)      Inbound call was handled, customer asks for information not privy to BDC team (pricing for instance), BDC logs all customer information with detailed notes, and hands it off to sales manager. Provided manager sets appointment with customer, and BDC agent updates the customer profile (adding notes) and stipulates information regarding appointment or potential appointment. Provided the customer purchases under the same 48 hour window detailed in section #1, and makes an appointment confirmation call, then that can be viewed as “significant imvolvement”.
a)    a)  A call must have been made to the manager both after the first contact with customer and after the manager has spoken to the customer. Notes must be made on each occasion.

3)      For unsold walk-in customer sale, follow up call must be made a pre-determined time in action plan, appointment must be made by BDC agent, notes put in system, and manager alerted. If customer comes in for a be-back within 48 hours around the time of the set appointment, a sale is warranted.

4)      For unsold walk-in customer/internet sale, if a customer leaves the dealership unsold, gets online and submits a lead, you follow the pre-determined  follow-up process in the CRM, sending out the proper e-templates as specified, make live contact by phone and set the appointment (and they purchase within 48 hours of appointment), then it is a BDC sale.
a) All dialog must be documented with customer and an advance search must be performed to ensure it wasn’t another BDC agents customer.

5)      For phone customer, initial contact must be documented and noted in CRM when customer is logged. If contact is consistently made with customers at scheduled times, provided detailed notes are made and information is exchanged, it will be a sale if the customer purchases within 48 hours from last live contact with BDC agent and customer. (There IS a value for continued true contact and information exchange with a customer).

6)      Internet lead is answered by the BDC agent and the correct, price-matrix e-templates are sent to the customer at the pre-determined time by the action plan. If the customer engages the BDC Agent back with either
a) information/implication that they will be stopping (via email or phone) and its logged in the notes
b) additional questions that the BDC Agent does their due diligence in answering to the best of their ability and there is a modicum of back and forth question answering (even by email) – and call attempts have been made or offered to customers trying to lure them in then it is a sale provided -
c) They set the appointment with the customer and the customer comes in within a 72 hour window from last email contact (or appointment scheduled) and purchases within two weeks after visit provided detailed notes of the salesperson and BDC agents involvement after the initial visit or a sale is made on initial visit – or -
d) The customer arrives without an appointment, but every step of the action plan with all e-templates are being sent at the pre-described time with all the information at their disposal and there Is a back-and-forth question answering (via phone or email) that could legitimately have value for a customer and the customer stops in within 72 hours from last phone call attempt or email sent.

Caveat: The only way to get credit for a Phone Up sale or an Internet Lead sale is to follow the action plan set in the CRM, sending out all templates designated on the day they are to be sent out, filling in any information required of said template, all calls are being made/attempted to customers (or connected with customers), and detailed notes are logged in the system defining your work to bring the customer in and/or the customer’s expectations/motives are documented. In other words, MAKE THE CALLS ON TIME, DO YOUR BEST TO LEAVE OR SEND VALUABLE INFORMATION, SEND THE e-Templates ON TIME FILLING IN NECESSARY FIELDS IN SAID TEMPLATES, and follow the complete time-line. Then meet one of the “requirements” listed as 1-6 above and you earn the sale.

As you can see how complicated this is, and I still cannot be 100% certain this is absolutely correct, and I’m not missing anything, I still suggest every sale, if it will be reviewed by Manager anyway, should be taken on a case by case basis to determine its validity.

I’d love to hear your opinion about this over-thought concept. And PLEASE let me know if I’m missing anything on this list.

Joe Webb
President
DealerKnows Consulting

Joe Webb

DealerKnows Consulting

President

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Joe Webb

DealerKnows Consulting

Mar 3, 2010

You can’t spell social media without “me” or “I”. The entire medium has become, through its own nature, a very me-centric platform. People only post as it relates to themselves, their business, or their beliefs, blasting forth their very own personal news channel that they deem worthy enough to share. Foursquare is one of the newest social networks, specifically designed to cater to those through a mobile application. Simply put, in its most common, understood form, Foursquare gives users the ability to: 1) “Check-in” to different places or add new ones worth visiting 2) Let their presence be known to their contacts and the online community 3) Lay claim of ownership after multiple visits to the same location 4) Earn “badges” for usage levels 5) Leave tips and shouts for future visitors of the establishments This can all be accomplished through the typical geo-locating (geo-targeting) found on mobile devices. Early adopters of this platform will be at the advantage as they will have simply collected more badges, visits, friends, and lay claim to more territory through their travels. Now how can this be monetized? Or, maybe less greedy, how can dealers use this to their advantage? I’ve been thinking about this recently while actively “playing” with the system. Sure, this entire post may be directed to the select few dealers on the forefront of online exploration (and many should focus their efforts on the fundamentals of internet sales), but I wanted to head up this topic nonetheless. Here are just a few ways I think dealers may be able to utilize this new social networking platform. 1) Any customer of the store (unrelated to employees) that are deemed the on-going “Mayor” of the store can have a little plaque in the service drive on a monthly basis (as long as they have the title at the start of the month) is awarded free oil change or a piece of apparel. 2) If the drivers of your courtesy shuttle(s) are given mobile devices to assist with directions or contact back with the dealership, they can help register drop off points of their customers – when delivering them to work. Provided they leave a recommendation commending the customer at that store, the recurring gratitude/retention will be easily felt and you will also be opening up a new channel of places to draw friends. 3) Have your employees check into work (not so you can track their presence on Twitter/FB), but so they can leave tips/shouts letting other customers clocking in know what some recommended specials may be. May also work for those employees you send to conferences – checking out what workshops they are attending while on-site (and not galavanting around town). 4) Actively request reviews and tips from those customers checking in regularly. Now, I am sure I am missing some obvious practices to benefit your dealership and its consumers. I’d love to hear from you all and see if you can think of some other uses for this new application/network (above and beyond getting your employees using it – which opens you up to a wider network of potential connections – because that is a common need on ALL social networking sites. So please let your imagination take off and let’s create some first-in-class best practices for this tool. As an early adopter, very few benefits or activity will approach in the beginning, but over time, as the overall public becomes more in tune with these advanced internet marketing tactics, you will have been leading the way to a dominant Foursquare user.

Joe Webb

DealerKnows Consulting

President

7555

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Joe Webb

DealerKnows Consulting

Mar 3, 2010

magicianIt's not the wand that makes the magic happen, but the magician who wields it.  All of the tools, solutions, and leads in the world may be necessary to stay competitive, but it is the people you employ that make you profitable.   If a dealership is only as good as the people speaking to their customers, we must make sure we have the right people representing us in the first place. One of the fundamental problems on our sales floors is that it is just too easy to get a job.  Candidates walk in, fill out an application, prove that they have a pulse during an interview, and are hired on the spot.  This has to change.  This builds no value in our dealerships, our profession, or our industry.  We must require applicants to earn a position rather than just getting it. As a trainer, dealers always ask me "What is the magic bullet out there?  What will help me sell more cars?"  They are likely looking for a solution/tool/CRM/website/campaign, but the true magic bullet is a great employee.  One forward-thinking person (especially in your Internet Department) can yield endless profitability.  You are the magic bullet.  The people around you are the magic bullets. Your growth will be determined by the people that work for you, with you, above you, and beside you. We develop intricate processes to bring a prospect from lead to appointment to sale throughout our showrooms, but we rarely have a process to recruit, interview, hire and train the employees of our stores.  I was able to achieve success while in the retail side of the automotive business, but I know I wouldn't have been near as successful if it hadn't been for the people I surrounded myself with during my time at my former dealership.  It is only because of the work I put into preparing them for success and the work they, in turn, achieved, have I been able to parlay my career as an automotive internet expert into starting my own consulting business.  Selling cars, not on the floor, but online, is a TEAM environment.  It is high time we begin focusing on acquiring a solid team. One question I'm often asked is 'Who should run my Internet Department/BDC'.  There are only three choices, each with a different monetary tag attached.  You can hire the best (otherwise known as 'stealing an expert').  You can promote from within.  Or you can hire a newbie and train (i.e. start from scratch).  Know that you'll pay top dollar to hire the best, but this will yield you the fastest turnaround and gross.  If you decide to promote from within, you will likely be paying a fair industry price for their services.  Lastly, you will save considerable money (rough book value) by hiring someone new to the position, but won't see considerable growth or a return on the investment for some time. Before you begin recruiting or interviewing for the position, you must do three things.
  1. Determine the hierarchy of the store.  Who will this person, in a new department, be reporting to?  Often anyone from sales managers to salespeople believe they can delegate work to someone in the internet department while the top stores usually have this a director or GM as the only entity that presides over the Internet team.  Decide who is in charge of what and this will help you understand the type of candidate you need to hire.
  2. Develop a pay plan based upon your goals for the Internet department/BDC and reward these specific metrics.  The structure of this position (A-Z, appointment setter, Director) will help determine the pay plan.
  3. Create a written, detailed job description specifying all duties, expectations, hierarchies, necessary skills, and intended earning potential.
Many dealers ask me where they can even find quality candidates.  Above and beyond the normal classified sections, here are some outside-the-box places that I've had success finding strong personnel for my former BDC. Selection
  1. College graduates.  I've had much success hiring recent college graduates.  Those individuals with the fortitude to sit in classrooms, research, and complete assignments, day in and day out, just seem to take to the environment and position of Internet Sales Coordinator/Manager very well.  There is a knowledge level and drive there that cannot be overlooked.
  2. Promote from Within.  Looking internally has given me some great Customer Contact Reps (BDC personnel) as they understand the product, have good phone skills, and, even better, know the staff well enough to understand what prospects would work well with whom.
  3. Vendor Referrals.  Those Cars.com and AutoTrader reps stopping by your store know who the real talent is at your competitors' stores.  Often, people pass the word that they are open for a change through these reps so approach them and see if there is someone who may be a good fit.  After all, no vendor will refer in a fool because that person would only make their life harder in your store as well.
  4. Local Competition.  Many great Internet Directors have a strong #2 at their store.  This is someone that they know deserves a shot at running their own department, but can't give them that opportunity because they won't obviously give up their own jobs.  If you have a good relationship with another ID, consider calling up and asking if they have a second in command that they'd be willing to recommend.  If not, just steal them.  Also in this category, don't overlook recruiters.  They have access to many great candidates.
Regarding who you select, please do not overlook women.  If it is proven that 85% of all decisions are influenced by women and 65% of ever vehicle purchase is determined by a woman, why do women only make up 7% of our sales and service staff?  Correct this discrepancy by finding strong female applicants. Once you've acquired all of the resumes/applications, review them, ensuring they have the necessary background/skills, and then research them on the social networking pages.  Make sure their LinkedIn information correlates to what is on their resume.  Check the other sites to gain insight into their character.  Try to learn about them through the social media landscape.  Then, screen them by phone. Interviewing/Hiring A good phone screening should be no longer than 5 minutes.  You detail thejob requirements and their work history, uncover any gaps/short terms in their employment, mention the drug/background check (to scare off anyone with bad habits hoping to sneak by), and inform them of the interview process.  I won't delve into the art of interviewing (and it is an art), but make sure you provide your sales management team with all of the training necessary to properly interview.  Most managers were awarded their positions from being strong on the sales floor.  In many cases, a sales manager hasn't been in an interview themselves for 6 or more years.  They need to understand the how and why of closed ended vs. open ended questions, what to ask, and when to ask them.  Know that interviewing is a PROCESS.  It should be performed by several managers over several days.  (No one should be hired on day one).  It should involve several steps the applicant must complete and should also involve outside-the-box interview tactics like mystery shopping and role-playing.  Trust me, if every manager role-played a negotiation with the new candidate (the candidate being the salesperson and manager as the customer), not many people would be hired...or consequently later fired.  I could make interviewing for auto dealers a ten-page article alone so I will let you do your own research here - or simply contact someone who can help in this regard. Orientation The orientation is incredibly important to the success of any new hire.  Bad orientation causes a type of "buyer's remorse" and increases turnover. No new hire should begin handling internet leads or calls on day one.  This happens all too often.  On the same note, don't give a new hire "the grand tour" and expect them to remember names, paperwork, logins/etc.  Much like for Recruiting and Interviewing, there is also a process for a proper orientation. Require that your vendor trains the new recruit on all solutions - front to back.  No exceptions or find another vendor.  It is fine for the director of the department to give guidance/hints/tips, but the training must come from the vendor. Create teams where every single department in the dealership has one primary communicator.  This way, the new hire learns about the overall dealership's structure and has only one individual that they are to speak to.  Allow them to spend a little time in the different departments to get a lay of the land and understand the importance of the entire rather than the role of its parts.  Once product knowledge training, process training, solution training, and paperwork review are complete, you should then test them through a mystery shop on the system.  Make sure they are employing all of the templates/word tracks/practices that you're expecting of them before they get the green light to handle customers.  They must earn your seal of approval before they officially step into the duties.  This first two weeks of orientation should be salaried in my opinion.  This way they will be in a good place financially - and not starting from scratch - when they do assume the reins of their job.  Just ensure they are ready to tackle the position before giving them the task of performing the actions. Too many new hires are dropped onto the sales floor or into the internet department with little more than "advice" from someone they've been insanely asked to "shadow".  Do more for them than these old-school practices.  These negative impressions lead to mistrust.  If you've put them through a process to join your team, don't drop the ball now by leaving them will little guidance on how to conduct themselves. Celebrate your new employees.  Have a manager take them out to lunch the first week.  Send a gift basket to their home welcoming their family into yours.  Make sure they understand the "language" of cars sales.  (We all have those code words that we share for different aspects of the deal.  Familiarize them.)  Let the new hire know the importance of paperwork and how very crucial their role is to the organization.  Show them what type of future they can have at the dealership.  Most importantly, ask for questions.  Let them know that there is never anything they should be afraid to ask of you.  As I said, this is a TEAM environment. And don't forget to provide them long-term, on-going training and evaluations.  This will always keep them focused and prepared for the goals you'd like them achieve. Finding the perfect fit for your Internet department is one of the most difficult jobs an owner/GM has, yet it can single-handedly be one of the most profitable for them if performed correctly.  There are three things that develop people:  the training, the job environment, and their willingness to learn.  You can only control two of these three which is why you must not just support the staff, but measure their results. Provided you've created the proper processes when recruiting, interviewing, and training, you will be able to sit back and see the success of your efforts.  You won't need to pull any tricks out of your sleeves.  The magic will happen.

Joe Webb

DealerKnows Consulting

President

2048

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Joe Webb

DealerKnows Consulting

Mar 3, 2010

With the new year upon us, it is time we sit down and determine the ROI of our past (and recent) online marketing initiatives. What has worked for you? What hasn’t? What is your social networking resolution? Are you going to dedicate your financial resources (ad budget) to the failed or fledgling programs of yesteryear or try your hand at all of the digital marketing tactics you read so much about daily? If it isn’t working, at what point do you cut ties, end your relationship with the old school vendors, and spend time on a more worthy venture such as social media? If you want to succeed on a social networking landscape, you must first put yourself in your customer’s shoes. You must share their mindset. “What is in it for them?” you have to ask yourself. You need to show a benefit to the consumer for joining you on these networking sites. Stop worrying about what is important to you and start realizing what is important to your audience. This is the greatest obstacle for almost every dealer with a Twitter and Facebook account right now. So few have any idea what the hell to do with them! Remember, your customers are likely on these sites for personal reasons so recognize that it is called SOCIAL networking, not “business” networking. I’ll tell you – to do it right, you must learn how to educate, engage, and entertain your audience with multiple forms of media and user-generated content to increase customer retention, brand awareness, and positive consumer reviews all while creating interactive, VIP-styled discount/deal/contest programs to elicit referrals, responses, and business. By the way, you can’t be too intrusive, pushy, overwhelming, or generic. Let me tell you… easier said than done. The “doing” takes time, knowledge, dedication, and commitment. More than most dealers are willing to dedicate. A year ago and a half ago, you could say that social media is still early in its evolution and could have spent time figuring out the best practices on your own. Today, it is too late to experiment. You are losing market share every single time another one of your competitors joins the social site community. You no longer have the luxury to play around and wait to find out the best practices of the medium. If you are behind the social networking times, you have to make a resolution. You’ll need to either rededicate some advertising budget to training – someone who can give you a jump start on the best practices of the platform – or farm out your entire social networking campaigns to a company or group able to control your presence in this online marketplace. Or if you wanted to spend even more money, hire a professional to do it on-site full-time. I don’t know anyone who does the latter, but I can point you in the right direction on the formers. So I ask you…what is your Social Networking Resolution? Do you have a plan? If not, you better have a budget. resolution

Joe Webb

DealerKnows Consulting

President

7110

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Joe Webb

DealerKnows Consulting

Mar 3, 2010

With this year's Thanksgiving in our rearview mirror and the holidays just down the road, I think it is time we industry folks talk about what we are thankful for. As I've been holiday shopping - or as it is known in the politically incorrect world of the Webb household "Christmas shopping" - I see a nation who isn't scared of spending their hard-earned dollar. Gift-giving is going strong and online orders are already blowing away numbers from past years. (Now if only we gave to charities as generously as we do our distant family.) All of this money being thrown around should make us grateful to work in an industry where we not only provide a necessary service, but there is forever a need for our products. Be thankful that everyone eventually needs a car. Be thankful that people still walk into your showroom everyday. Be thankful that your owners are still spending money to attract customers into the store. Be thankful that more and more ad dollars are seeing their way into digital sources, thereby having a more positive impact. Be thankful there are resources available such as Driving Sales to educate, engage, and entertain our industry. Be thankful that you are likely beating the pants off of your competitor down the street because so few dedicate themselves to learning and researching best practices from these online communities. Be thankful that Clunker season has passed and selling cars has returned to being a skill-oriented business. Be thankful that you are currently employed (realizing that there are others out there who would likely work even harder than you are for your current opportunity and position). Be thankful that conference season is over and your Vegas/Nashville hangover is just now lifting. Be thankful that the lessons and tactics you took away from the conferences and implemented are starting to pay dividends now. Be thankful that you are in a FUN industry where no two days are the same, no two customers are exact, and each day brings with it a hilarious story or adventure worthy of sharing at a party. Be thankful that dealers are still eager to expand their online presence and bring aboard professionals to better the culture of their store (this one is for us consultants/trainers in the room). and finally Be thankful for your family and friends that support you and love you - whether you shoot a zero for the day or pull a hat trick, your family loves you. Be thankful. I am. christmas-tree

Joe Webb

DealerKnows Consulting

President

1791

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Joe Webb

DealerKnows Consulting

Mar 3, 2010

Far too many ideas seem like good ideas after a frozen margarita with a Coors Light chaser. However, I am pleasantly surprised to find myself struck with enlightenment as I sit bar side at a Chili’s. I am out to dinner alone after delivering a successful on-site training for a dealer client. As any consultant will tell you, these dinners on the road are commonplace and very little changes from city to city. When across the bar does my curious eyes spot a sales process secretly displayed for the bartender at this Chili’s establishment. Within moment’s I arose from my stool to see what was the matter. I was incredibly pleased to see a list of steps to follow for this bartender that closely resembles our very own road to the sale. The Chili's Steps to the Upsell, so to speak. I’ve attached this picture so you can follow along as we compare proven best practices. I have made it easier for you by spelling out each step they've provided to their employees. The Chili's Steps to the Upsell Chili’s: The following is the minimum expectation for every bartender. If they cannot execute these, then they should not be responsible for driving our most profitable position in the restaurant. Joe’s: This is what we expect from you as a sales representative. If you cannot proudly, competently, perform these tasks and follow these steps after we’ve trained you, you may want to consider another line of work. Summary: You don’t have to go home, but you can’t stay here. Chili’s: 1. Greeting every bar guest with “Welcome to Chili’s, my name is ------, I’ll be taking great care of you today and your name is….? Joe’s: 1. Every customer is greeted, preferably on the lot, (at the very least on the showroom floor) before they reach a manager, with “Welcome to ABC Motors, my name is -----, and you are…? Are you here for anyone in particular? No? I will be happy to assist you and answer all of your questions. Summary: The best pick-up line in the world is still your name, asking for theirs, and asking a simple question. Chili’s: 2. “Let me tell you about a few great happy hour specials we have”, or weekends “Let me tell you get you started with our Presidente Margarita or ice cold draft.” (Yes, theirs is grammatically incorrect, or (sic) can be said, but nonetheless a similar practice would be 2. Joe’s: “Allow me to tell you about our amazing new vehicle incentives” or, used “Let me tell you what I feel are some of the hidden gems and best buys on our lot.” Summary: They’ll never like it if they don’t try it. Make sure to introduce them to your specials. Chili’s: 3. “Can I get you started with ______ or _______.” Being suggestive with appetizers choose their favorite and let guests know why it is their favorite. Joe’s: “I personally believe this vehicle is likely the best fit for you and your family because it is both ______ and ________, both features/needs you said were important to you on your next vehicle.” Summary: I told you that you were going to enjoy it. Chili’s: 4. “Check down after every item is rung up, no “I will get it in a minute.” Joe’s: 4. (If I am reading this correctly) Answer and address every question they have immediately so as to overcome any potential objection in the future and then confirm it is answered. Summary: Don’t let problems linger or questions go unanswered as it looks as if you are avoiding the subject or not caring about their needs. Chili’s: 5. Engaging lounge area tables even when there is a lounge server working. Joe’s: 5. If a customer is walking around on the lot or showroom, whether you are aware if someone is assisting them or not, make sure to approach them and ensure that someone is working with them and they are having their questions answered/expectations met. Summary: Engage every lone/abandoned customer regardless of the situation to let them know someone is there is assist them at all times. Chili’s: 6. Running bar beverages at all times when not engaging bar top guests. Joe’s: 6. If you don’t have a customer, you should be either out on the lot familiarizing yourself with vehicles, looking to assist other managers/guests/salespeople, or looking to follow-up with active/past customers. Summary: No coffee clutching. This is work. If you want “me time”, stay at home. When you are on the lot, you are there to produce and be productive. Chili’s: 7. Coaching team members on up-selling beverages that come to the bar screen. Joe’s: 7. Listen to your coworkers with their customers. If you can offer any guidance after the fact, constructive criticism and helpful hints should be widely accepted among the staff. Summary: Role-playing will help you improve consistently. Chili’s: 8. Energetic, friendly, and sociable. Joe’s” 8. No other way to say it. Chili’s: 9. Constructive with free time Joe’s: 9. Get busy. There is ALWAYS something you can be doing to improve yourself and make money. Summary: In all aspects, Chili’s has it right. And yes, in the picture below, that is a margarita. I did partake in one. After all, you have to reward a good salesperson. Chili's Upsell sheet with margarita

Joe Webb

DealerKnows Consulting

President

1775

No Comments

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