The basic Law of Reciprocity states: To give and take mutually.

I have thought about this a lot over the last few months. We use this concept very effectively in conversion optimization by giving white papers, special offers etc. on landing pages. The idea is if the person gives something, you then give something of value in exchange. But think about it… you asked for the value FIRST. The visitor had to give you their name in order to get your value.

Isn’t that backward? Shouldn’t you give the value first then ask for the mutual value back?

Amazingly enough, this backward give and take works well; but recent events have made me start to wonder HOW WELL?

Earlier this year we launched ShowroomMagnet, our incentive based behavioral targeting engine for websites. We knew it would work well for conversion because these kind of popovers have always had a positive impact on conversion.  In addition, we’re making and offer and a single clear call to action (something too many websites lack).Not to mention we tested it, as we do EVERYTHING.

BUT there was a surprising side effect.  A few of our dealers started using this in a way we didn’t expect.

It started with Andy Wright at Lehigh Valley Honda, who by far was selling more cars from the program than most of the dealers.  I asked Andy, “What are you doing?” and the answer was so simple it was a little bit scary.

As customers came to the showroom with their gift card validation in hand (or smart phone as the case may be) Lehigh Valley Honda sales people would take them right to the desk and validate their gift card INSTANTLY. They would put it right on the customer’s  smart phone before they even took a test drive!

LeHigh “kept the promise” the website made. And they made it instant – as soon as the customer walked in the door.

There was no hook. There was no caveat.  They had promised a gift for visiting, the customer visited…so the dealership handed over the gift card. 

Here is the surprising part…

I thought when we started this we would see closing rates in the 30% to 40% range and that would be great!

Lehigh Valley Honda’s closing rate…. 68% over the last six months!

Bottom Line – WHEN YOU MAKE A PROMISE… KEEP IT! You’ll be amazed at the number of customers that will reciprocate… it goes back to The Law of Reciprocity.

Too often in our business we think we have to trick people… hook them into doing what we want them to do when really all they want us to do is keep the promise that we made.

Simple right?

So simple it’s a little bit scary!

The basic Law of Reciprocity states: To give and take mutually.

I have thought about this a lot over the last few months. We use this concept very effectively in conversion optimization by giving white papers, special offers etc. on landing pages. The idea is if the person gives something, you then give something of value in exchange. But think about it… you asked for the value FIRST. The visitor had to give you their name in order to get your value.

Isn’t that backward? Shouldn’t you give the value first then ask for the mutual value back?

Amazingly enough, this backward give and take works well; but recent events have made me start to wonder HOW WELL?

Earlier this year we launched ShowroomMagnet, our incentive based behavioral targeting engine for websites. We knew it would work well for conversion because these kind of popovers have always had a positive impact on conversion.  In addition, we’re making and offer and a single clear call to action (something too many websites lack).Not to mention we tested it, as we do EVERYTHING.

BUT there was a surprising side effect.  A few of our dealers started using this in a way we didn’t expect.

It started with Andy Wright at Lehigh Valley Honda, who by far was selling more cars from the program than most of the dealers.  I asked Andy, “What are you doing?” and the answer was so simple it was a little bit scary.

As customers came to the showroom with their gift card validation in hand (or smart phone as the case may be) Lehigh Valley Honda sales people would take them right to the desk and validate their gift card INSTANTLY. They would put it right on the customer’s  smart phone before they even took a test drive!

LeHigh “kept the promise” the website made. And they made it instant – as soon as the customer walked in the door.

There was no hook. There was no caveat.  They had promised a gift for visiting, the customer visited…so the dealership handed over the gift card. 

Here is the surprising part…

I thought when we started this we would see closing rates in the 30% to 40% range and that would be great!

Lehigh Valley Honda’s closing rate…. 68% over the last six months!

Bottom Line – WHEN YOU MAKE A PROMISE… KEEP IT! You’ll be amazed at the number of customers that will reciprocate… it goes back to The Law of Reciprocity.

Too often in our business we think we have to trick people… hook them into doing what we want them to do when really all they want us to do is keep the promise that we made.

Simple right?

So simple it’s a little bit scary!

An interesting report from comScore and I think some premonitions for retail automotive.

1. Could FREE shipping break open real eCommerce for automotive? I think it is certainly a big hurdle right now logistically and monetarily. Taking away the monetary factor may go a long way toward opening this up. Of course there are still some logistics involved and there is the tactile factor. The need to touch and feel the vehicle is diminishing slowly and logistics can be overcome… Thoughts?
2. Pricing in the palm of the customers hands. Like it or not that part of eCommerce is upon us, the whole TrueCar mess may have brought it to our attention on a large scale but it was going to get there anyway. It’s not yet main stream but customers walking around your showroom with iPhones in hand comparing your cars, dealership and prices is coming like a freight train. If you try to fight it you’ll just be run over by it. So here are a few ideas to help you embrace it.
   1. Use SMS short codes on your window stickers. Better than QR code because customers are more used to it and because you get to capture the cell number of the customer and have a possibility to continue the conversation.
   2. Use QR codes to direct customers to Google places to review your dealership and see your reviews. On your Repair receipts, on your envelope the license plates the customer gets, on posters in your showroom and just about any other correspondence you have with customers. It will pick up reviews. While you’re at it use QR to direct them to a mobile coupon as well, might as well get the service business there’s a little bit of money there.
   3. Remember people do things with mobile not research so much so help them do those things. If they want to compare on your floor have an SMS short code that gives them a special discount or incentive and links to other prices…Remember they are on your showroom, you’ve got home court advantage and they’re going to do it anyway might as well direct the process to your advantage.
3. The day of the “Big Lot” is coming to an end. I can foresee a day in the not too distant future where there are small retail dealerships in high traffic down town locations where you pick out your vehicle; it is stored in a central much cheaper storage facility outside the city but it goes much deeper than that however. I can see this going to mass customization where you pick the car, and the paint job and the electronics package, the wheels, tires, ground effects etc. and there is an assembly line type factory on the storage facility site that customizes that car for you in a few days then delivers it to your house. I would love to see someone try this on a small scale it would shake up the car world.

These are a few thoughts that come to my head as I watched the video above, let’s here yours.

See the full comScore report here.

An interesting report from comScore and I think some premonitions for retail automotive.

1. Could FREE shipping break open real eCommerce for automotive? I think it is certainly a big hurdle right now logistically and monetarily. Taking away the monetary factor may go a long way toward opening this up. Of course there are still some logistics involved and there is the tactile factor. The need to touch and feel the vehicle is diminishing slowly and logistics can be overcome… Thoughts?
2. Pricing in the palm of the customers hands. Like it or not that part of eCommerce is upon us, the whole TrueCar mess may have brought it to our attention on a large scale but it was going to get there anyway. It’s not yet main stream but customers walking around your showroom with iPhones in hand comparing your cars, dealership and prices is coming like a freight train. If you try to fight it you’ll just be run over by it. So here are a few ideas to help you embrace it.
   1. Use SMS short codes on your window stickers. Better than QR code because customers are more used to it and because you get to capture the cell number of the customer and have a possibility to continue the conversation.
   2. Use QR codes to direct customers to Google places to review your dealership and see your reviews. On your Repair receipts, on your envelope the license plates the customer gets, on posters in your showroom and just about any other correspondence you have with customers. It will pick up reviews. While you’re at it use QR to direct them to a mobile coupon as well, might as well get the service business there’s a little bit of money there.
   3. Remember people do things with mobile not research so much so help them do those things. If they want to compare on your floor have an SMS short code that gives them a special discount or incentive and links to other prices…Remember they are on your showroom, you’ve got home court advantage and they’re going to do it anyway might as well direct the process to your advantage.
3. The day of the “Big Lot” is coming to an end. I can foresee a day in the not too distant future where there are small retail dealerships in high traffic down town locations where you pick out your vehicle; it is stored in a central much cheaper storage facility outside the city but it goes much deeper than that however. I can see this going to mass customization where you pick the car, and the paint job and the electronics package, the wheels, tires, ground effects etc. and there is an assembly line type factory on the storage facility site that customizes that car for you in a few days then delivers it to your house. I would love to see someone try this on a small scale it would shake up the car world.

These are a few thoughts that come to my head as I watched the video above, let’s here yours.

See the full comScore report here.

One of my most favorite sayings in the world goes like this:

One of my most favorite sayings in the world goes like this:

I love reading Jim Ziegler’s articles there is a lot of hard core truth in what he writes, most of all you can bet he is passionate and believes and lives every word. While reading this latest article “Coffee’s for Closers” it floored me that we still see this connection between the “PRICE” and the close. What’s even more ironic is that is that what actually “CLOSES” a car sale is as old school as it gets and hasn’t changed in the last 50 years.

You all know what I am talking about…To put in James Carville terms “It’s about the relationship…stupid”

Now I am certainly not going to say that price isn’t a concern, you will address, it but I will say… IT AINT THE CLOSE and I will go even further and say… IT NEVER HAS BEEN.     

Back in march of last year after South By Southwest I wrote a post called “The Currency of Trust” in this post I shared my ideas on how trust was built in a car sale before the introduction of the internet and social media and how the internet and social media is redefining the building of trust today, and therein lies the CHANGE in the sales pr

ocess.

It’s not a change in human behavior for the last 30 years people have been shopping for a car salesperson not a car. It’s a change in how long we now have to engage with customers a change in the channels we engage with those customers in and the way in which customers are starting to use the internet to formulate their opinions of how trustworthy your dealership really is.

This is a part of the “Old School” sales training I received from a set of Clint McGee Auto Sales Training tapes back in 1984 when I first started selling cars…yes I am that old.

The premise of this graphic was that if you took the time with the customer to get to know them, answer their questions, sell yourself, the dealership and the benefits of that car for their needs the “Close” would be relatively short and you would make more gross profit.

You had 3 days to do this over the phone and most of it was accomplished on the lot.

The “New School” and the fool here is the one that ignores this:

The customers process starts earlier because they have access to more information and with that access most feel very uncomfortable if they don’t at least do some research before they buy.

Make no mistake the customer shops for the car first and the dealership a distant second, but now the process of shopping for a dealership can involve multiple channels and there is a lot more opportunity for a lot more “Second Basemen” to be involved in that dealership shopping process.

Ease of access to information about your dealership and the ability to engage remotely has stretched the time a customer is willing to take to shop for a dealership & what used to take place in 3 days can now take as much as 90 days.

Why?

Because the customer CAN…

So what do you do about it?

You do what GOOD salespeople have done for over 50 years.

Listen and help the customer with THEIR needs

Be responsive to information on the customer’s timeline

Be transparent with the information you provide

Be authentic and genuine in your desire to get the customer the best buying experience for them

This again hasn’t changed in 50 years.

So… “Excuse Me” but “One Price”… “No Haggle” these are just tactics they are not sales skills and for that matter neither is “negotiation”.  You wanna be a good salesperson be good at the above, be prepared to a talk about your price what the customer gets and why they should want to pay that amount and buy from you. In many ways you have to be a better salesperson if you are a “One Price” store.

That’s my $0.02 cents…what say you?

I love reading Jim Ziegler’s articles there is a lot of hard core truth in what he writes, most of all you can bet he is passionate and believes and lives every word. While reading this latest article “Coffee’s for Closers” it floored me that we still see this connection between the “PRICE” and the close. What’s even more ironic is that is that what actually “CLOSES” a car sale is as old school as it gets and hasn’t changed in the last 50 years.

You all know what I am talking about…To put in James Carville terms “It’s about the relationship…stupid”

Now I am certainly not going to say that price isn’t a concern, you will address, it but I will say… IT AINT THE CLOSE and I will go even further and say… IT NEVER HAS BEEN.     

Back in march of last year after South By Southwest I wrote a post called “The Currency of Trust” in this post I shared my ideas on how trust was built in a car sale before the introduction of the internet and social media and how the internet and social media is redefining the building of trust today, and therein lies the CHANGE in the sales pr

ocess.

It’s not a change in human behavior for the last 30 years people have been shopping for a car salesperson not a car. It’s a change in how long we now have to engage with customers a change in the channels we engage with those customers in and the way in which customers are starting to use the internet to formulate their opinions of how trustworthy your dealership really is.

This is a part of the “Old School” sales training I received from a set of Clint McGee Auto Sales Training tapes back in 1984 when I first started selling cars…yes I am that old.

The premise of this graphic was that if you took the time with the customer to get to know them, answer their questions, sell yourself, the dealership and the benefits of that car for their needs the “Close” would be relatively short and you would make more gross profit.

You had 3 days to do this over the phone and most of it was accomplished on the lot.

The “New School” and the fool here is the one that ignores this:

The customers process starts earlier because they have access to more information and with that access most feel very uncomfortable if they don’t at least do some research before they buy.

Make no mistake the customer shops for the car first and the dealership a distant second, but now the process of shopping for a dealership can involve multiple channels and there is a lot more opportunity for a lot more “Second Basemen” to be involved in that dealership shopping process.

Ease of access to information about your dealership and the ability to engage remotely has stretched the time a customer is willing to take to shop for a dealership & what used to take place in 3 days can now take as much as 90 days.

Why?

Because the customer CAN…

So what do you do about it?

You do what GOOD salespeople have done for over 50 years.

Listen and help the customer with THEIR needs

Be responsive to information on the customer’s timeline

Be transparent with the information you provide

Be authentic and genuine in your desire to get the customer the best buying experience for them

This again hasn’t changed in 50 years.

So… “Excuse Me” but “One Price”… “No Haggle” these are just tactics they are not sales skills and for that matter neither is “negotiation”.  You wanna be a good salesperson be good at the above, be prepared to a talk about your price what the customer gets and why they should want to pay that amount and buy from you. In many ways you have to be a better salesperson if you are a “One Price” store.

That’s my $0.02 cents…what say you?

You know for last few months I have been hearing a lot about leadership in our industry, about education and how there needs to be more of both, I ABSOLUTELY AGREE!

I met up with Bill Playford at SWSXi (South By Southwest Interactive) for those not familiar with the acronym. We talked about this very thing. I found myself getting very excited at some of the ideas we were discussing, so much so I was writing curriculum in my head as I was driving back to Houston Friday afternoon.

On the way home I made several calls that to be frank…were a total buzz kill on the subject. I was quickly reminded of the agendas of some of the broadcasters, large vendors with money, resources and a voice and the influencers in our industry and the task of bringing true leadership and honest education seemed to be almost too daunting a task for anyone to take on.

This morning I wake up still thinking about this subject and as I going through my normal morning reading ritual and I ran across this post by Seth Godin. Seth has a way in of summing up a topic in very few words I hope to someday master that for now I am not doing very well.

7 Questions For Leaders

1. Do you let the facts get in the way of a good story? Think about that for a second beyond the obvious. What is a good story? It’s a vision right? Are you letting the fact that something isn’t that way right now or that something is hard get in the way of a good story / vision being told? If you are you are killing creativity and innovation in our business…Stop It!

2. What do you do with people who disagree with you…do you call them names in order to shut them down? THIS ONE YOU REALLY NEED TO PAY ATTENTINON TO! Who do you know that is doing this regularly? Get away from that person, this is happening all too often and on some blogs more than others. Bottom line we should be welcome disagreement and healthy debate, when that debate is constructive. People are allowed to have opinions and you are allowed to have yours. In today’s world we are all allowed to express them and there is nothing wrong with this process. It goes wrong when you start the name calling and the personal attacks in an attempt to belittle that person. You have an opinion express it…don't be offended if someone else has a different one, don't expect someone else just to roll over if you disagree. STOP BELIVEING AND READING YOUR OWN PRESS. Cars are gonna get sold with or with our any of us.

3. Are you open to multiple points of view or do your demand compliance and uniformity? Too many of us are not we go beyond constructive debate and defending our position to the point of my way is the only way.

4. Is it ok if someone else get the credit? – Think about that… is it really?

5. How often are you able to change your position? – None of us knows it all is it possible that someone has a piece to the puzzle you don't is it possible that you could be wrong? This doesn't mean you don't have conviction or believe in your position, it doesn’t mean you shouldn’t defend it. Just make room for the possibility and keep your mind open.

6. Do you have a goal that can be reached in multiple ways? – Fact is every goal can be reached in multiple ways. There is no one best way to anything anymore. Just because your goal has to change to include others doesn’t mean it can’t be reached it’s just another path to get there.

7. If someone else can get us there faster, are you willing to let them? Are you? How often do you stand in the way of someone because you don't like them or think you don't? Do you even know them?

There is no doubt that we need more leadership that can take these 7 questions above to heart and really work to improve the industry and thereby improving their business along with it. We all need to ask ourselves these questions and honestly answer them.

Larry Bruce @pcmguy

You know for last few months I have been hearing a lot about leadership in our industry, about education and how there needs to be more of both, I ABSOLUTELY AGREE!

I met up with Bill Playford at SWSXi (South By Southwest Interactive) for those not familiar with the acronym. We talked about this very thing. I found myself getting very excited at some of the ideas we were discussing, so much so I was writing curriculum in my head as I was driving back to Houston Friday afternoon.

On the way home I made several calls that to be frank…were a total buzz kill on the subject. I was quickly reminded of the agendas of some of the broadcasters, large vendors with money, resources and a voice and the influencers in our industry and the task of bringing true leadership and honest education seemed to be almost too daunting a task for anyone to take on.

This morning I wake up still thinking about this subject and as I going through my normal morning reading ritual and I ran across this post by Seth Godin. Seth has a way in of summing up a topic in very few words I hope to someday master that for now I am not doing very well.

7 Questions For Leaders

1. Do you let the facts get in the way of a good story? Think about that for a second beyond the obvious. What is a good story? It’s a vision right? Are you letting the fact that something isn’t that way right now or that something is hard get in the way of a good story / vision being told? If you are you are killing creativity and innovation in our business…Stop It!

2. What do you do with people who disagree with you…do you call them names in order to shut them down? THIS ONE YOU REALLY NEED TO PAY ATTENTINON TO! Who do you know that is doing this regularly? Get away from that person, this is happening all too often and on some blogs more than others. Bottom line we should be welcome disagreement and healthy debate, when that debate is constructive. People are allowed to have opinions and you are allowed to have yours. In today’s world we are all allowed to express them and there is nothing wrong with this process. It goes wrong when you start the name calling and the personal attacks in an attempt to belittle that person. You have an opinion express it…don't be offended if someone else has a different one, don't expect someone else just to roll over if you disagree. STOP BELIVEING AND READING YOUR OWN PRESS. Cars are gonna get sold with or with our any of us.

3. Are you open to multiple points of view or do your demand compliance and uniformity? Too many of us are not we go beyond constructive debate and defending our position to the point of my way is the only way.

4. Is it ok if someone else get the credit? – Think about that… is it really?

5. How often are you able to change your position? – None of us knows it all is it possible that someone has a piece to the puzzle you don't is it possible that you could be wrong? This doesn't mean you don't have conviction or believe in your position, it doesn’t mean you shouldn’t defend it. Just make room for the possibility and keep your mind open.

6. Do you have a goal that can be reached in multiple ways? – Fact is every goal can be reached in multiple ways. There is no one best way to anything anymore. Just because your goal has to change to include others doesn’t mean it can’t be reached it’s just another path to get there.

7. If someone else can get us there faster, are you willing to let them? Are you? How often do you stand in the way of someone because you don't like them or think you don't? Do you even know them?

There is no doubt that we need more leadership that can take these 7 questions above to heart and really work to improve the industry and thereby improving their business along with it. We all need to ask ourselves these questions and honestly answer them.

Larry Bruce @pcmguy