Dealers Marketing Network
We’re Not Mediocre, We just look that way.
Nobody starts out their business or career and says, “I want to strive to be a mediocre success.” The initial goal sets a target for a higher level of achievement, profitability, and implementation of some great marketing tactics to connect with and build an audience of loyal followers.
When a business is in its early stages the founders are looking for ways to stand out and make a difference in the market. They push the envelope and try new and exciting things; mainly because they have little to lose at that point. As a company grows, becomes profitable, and creates a corporate hierarchy ; the creativity, the ingenuity, and the appetite for risk starts to fade.
Think about break out businesses. Look at Snapchat, Facebook, YouTube, Twitter, Instagram, Tesla, or Oculus Rift. How many of these were created by large entrenched corporations? NONE! It was the true entrepreneur(s) who said, “Hey what if we . . . . ,“ and then they went and did it.
Today most dealers are at a point where they are playing it safe. Owners, managers and employees seem satisfied with just doing enough to get by. Yes some customers leave happy or satisfied . . . but most are not excited. The customer experience was okay, but not stellar. Some of this can be attributed to the markets where dealers operate.
A majority of dealerships (about 11,800 rooftops) sell 62 new units a month or less. 8,300 dealers sell 33 new units or less per month (NADA 2015 Data). Clearly many of these dealers don’t have a large advertising budget and rely on the standard (mediocre resources) of the OEM and their co-op approved vendors who lock down software and only allow what the OEM wants.
OEM rules mean many dealer websites look like every other dealer website; in other words- mediocre. I am not saying this is bad or good, only that the OEM and dealer have chosen a mediocre marketing solution. If every dealer website looks the same then prospects and customers think every dealer is the same; and it’s hard to argue with that logic. The better dealers don’t stand out in the market.
Here are a few ways to tell if a dealership is mediocre:
- The dealership uses the OEM website with little or no modification and looks like every other website from the same OEM.
- The dealership doesn’t use localized or promotional URL’s and landing pages to create, market, and track various programs or coupon offerings.
- The website About Us page talks about vehicles, includes a lot of local cities, but little or no information about the background of the business, their people, or place in the community.
- The website inventory has a “Call for Internet Price” or just a “Call for Price” button
- No staff page on the website, or if there is a staff page there are missing photos or those annoying silhouettes that just say to the visitor, “this person is not important enough to warrant a photo.”
- If one of the first questions a dealer/manager asks a prospective vendor is “Can I co-op your fees with my OEM?” When price trumps value to the business you insure mediocre results.
- If the dealership does not use their CRM software consistently every day and make sure every manager does too.Lack of following a process dooms you to mediocrity.
- If all the testimonials on a website are positive. No one is perfect and if you only show perfect reviews you have just confirmed you cannot be trusted to be open and honest. Good dealers don’t hide behind manipulated reviews.
- If the manager/owner wants information on a product or service and asks the vendor to call back early next week, instead of setting a specific day and time for a phone appointment.Would you drop in on your lawyer or doctor without an appointment? Setting and keeping appointments shows a level of professionalism not found in mediocre dealers. Doesn’t a dealership strive to set appointments for their prospects?
- When the Owner/GM doesn’t create an environment where all employees are comfortable bringing new ideas on generating more business to them each week.An incentive for ideas that get better than average results should be implemented to encourage more ideas.
Being a smaller volume dealer puts additional pressure on management to watch the pennies and also time constraints on what they have the resources to accomplish in a day. When you are too busy running your business you don’t have time to grow your business. Dealer principals and their General Managers who want to break out from mediocrity need to carve out time each week to focus on how to stand out in the market, grow community support, and how best to drive more traffic to their showroom. If their best suggestions are direct mail and inflatable gorillas, they need to bring in a marketing catalyst (outside person) to put some new life back into the store.
There are resources available that are very cost effective and it’s not a question of can you afford a virtual VP of Marketing; it’s a question of can you afford not to hire someone to help with marketing. This is not an expense; it’s an investment in future growth. And it will put the dealership on a path to rise above mediocrity.
Dealers need to look into marketing and advertising co-ops that provide big city promotional ideas, and local dealers can pick and choose from a menu of services and budgets for top tier marketing and engagement promotional activities. This gives a dealer the opportunity to break from mediocre marketing programs and often budgets can be $5,000 a month or less.
Mark Dubis is a car guy and appreciates and respects the 3,000 new car auto dealers who focus on really taking care of their customers, employees, and communities. His focus is helping them stand out in the market. He believes the best solutions are simple and neighbor friendly. www.dubisgroup.com
Dealers Marketing Network
Things No Customer Said, Ever!
There is no doubt that auto dealers today have a dizzying array of challenges and marketing channel confusion. More media channels, the pressure to maximize digital marketing, and to buy-into the next shiny VDP traffic promise is all very alluring. The trend I see in most stores is an adaption of the “inertia marketing strategy.” That is dealers, rather than wade into some new uncharted waters will stick with what they’ve been doing for the last thirty years.
While there is no shortage of “experts” telling dealers how they need to run their business on this site and other auto networking sites, until you are actually in the shoes of an owner or general manager you really don’t understand the pressures they deal with every day. I just want to share what my previous boss called, "A blinding glimpse of the obvious."
Let’s just look at things from the perspective of the customer and glean some insights that might help us build better relationships and grow our revenues.
No Customer Ever Said: “I shopped around at a few dealerships but this one had the largest inflatable gorilla, so I bought the car here.”
No Customer Ever Said: “I was just stopped in to pick up a brochure, but when I smelled the popcorn, I just had to buy a vehicle.”
No Customer Ever Said: “No I didn’t mind pressing “1” if I was a new customer or “2” if I was an existing customer, I’m sure you have your reasons for treating people differently.”
No Customer Ever Said: “The service department is okay, but I really bring my truck in for service because the coffee at the dealership is so good!”
No Customer Ever Said: “I was so happy to see that their website looked just like every other website I visited; it just made me feel comfortable and I knew I would have an average car buying experience.”
No Customer Ever Said: “I was just driving by and saw this inflatable tube type wavy arm guy and just had to stop in and buy a vehicle.”
No Customer Ever Said: “I went to their website and saw all 5 star reviews, so since everybody loves them, and they’re perfect, I thought I would buy there too.”
No Customer Ever Said: “Honey, I never saw so many balloons on cars. We have to buy a car right now.”
No Customer Ever Said: “I love spending time in the customer lounge and the smell of tires doesn’t give me a headache anymore.”
No Customer Ever Said: “As soon as I walked in the showroom I knew it would be a great customer experience.” (Note: This is the “About Us” boilerplate text on a gazillion dealer websites.)
No Customer Ever Said: “Hey Ralph, lets buy a car here, the salesman said he wanted to earn our business.”
No Customer Ever Said: “I just had to buy a car here. Your TV commercial with that fat guy yelling about all your deals just got me so excited I rushed right down to buy a new car.”
No Customer Ever Said: “I enjoy reading all your helpful and informative posts on Facebook, and knew you were the place where I wanted to buy a car.”
No Customer Ever Said: “I was sure I had the lucky number to win that 60” Television, but since I didn’t, and I’m here, I may as well buy a car.”
No Customer Ever Said: “I used your contact form on the website and enjoyed spending 15 minutes to enter all my personal information just to ask you a simple question. And no I didn’t mind those 25 follow up calls from your salesman.”
No Customer Ever Said: “Sure, I don’t mind waiting 40 minutes while you try and find the keys and get gas for the car I want to test drive. I’ll just have some more of your wonderful coffee.”
No Customer Ever Said: “It’s nice to see all new sales people every three months. I guess it keeps things fresh.”
Putting ourselves in the customer’s seat gives us some amazing and obvious insights. Improvements to a business location or process are oftentimes very simple to implement and there are a great number of resources to help dealers on limited marketing budgets to expand their business and avoid the clichés of the past. Just because you might be a small town dealer doesn’t mean you have to be locked into small town thinking.
Just tap into some new or sometimes old fashioned strategies to build relationships and expand your business.
Mark Dubis
14 Comments
Impact Marketing & Consulting Group, LLC
And, "I am so comfortable driving up and seeing 5 sales folks in a circle smoking and watching me drive in". "So welcoming".
CDK Global
Love the article - it's important to look at the dealership experience from a customers point of view. A number of reports are showing the experience is becoming more and more important and by 2020 may be more influencial than pricing. I'd like to add a few more "No customer ever said" from a long list I have about websites:
Awesome, a QR code on their website - let me go get my phone, find the right app and see what it does! Wow - it goes right to the page I'm on, perfect!
I wish there where more chat pop-ups.
Dang, no specials. I guess I'll wait a few weeks and check back.
I wish there was more stuff on this homepage, it doesn't scroll enough.
CDK Global
I do have to admit though that a local Seattle dealer had a large inflatable Seahawk in front of their dealership and my kids wanted to take a photo with it. It did get me to look at a loaded Genesis AWD that looked awesome sitting behind the inflatable. To make the story short, my kids love the new Genesis and I couldn't be happier with it either. So maybe there is something to having the RIGHT inflatable outside the dealership.
Hawkins Chevrolet
You are right that no customer ever "said" any of those things. However, SOME of the things you listed can and do influence a purchaser and can tip the scales. I will guarantee you that having my reviews on the VDP pages of my website has made it easier for people to choose our vehicle...because we have been told so. Not saying that the intent of our article isn't right...but you seem to be discounting the effect of some of the tools you listed (except maybe the inflatable stuff).
CarGirl, Inc.
Seems that most dealers don't think beyond getting their attention. Now what? Are we selling the car, the dealership, the experience. Too many dealers using too many marketing avenues with no strategy or designed message.....just noise.
Coastal States Automotive Group
So you're saying that Tesla has the right business model then?
Balloons never sold a car but, as Tom says above some of those things do create comfort...donty knock it until you've tried it and it actually worked. : )
Dealers Marketing Network
Tom Hawkins- You are correct that some of the items I mentioned can be an influence on some customers. Also many dealerships now offer great amenities and offer comfortable lounge areas and great coffee and muffins. It's all about hospitality and making folks feel comfortable. The next big influencer of sales volume will be down-home basic engagement marketing and finding ways to highlight your good neighbor status in your marketing messages.
Dealers Marketing Network
Allyn Hane: My post did not say that Tesla or TrueCar were the future or a better business model only that they offered a disruption to the status-quo. I do not believe that manufacturers can effectively sell and service vehicles directly without an agent to assist the process. Some disruptors to the auto retail process will have varying degrees of success due to the fact that when it comes to the cusotmer experience; 60% of auto dealers are mediocre at best, 20% really suck, and the other 20% do an awesome job. The steps to move from mediocre to awesome are not hard to implement, it's just that owners and managers are comfortable with the status-quo.
CBG Buick GMC, Inc.
Great read Mark. This is something that our SM's son shared with me yesterday. "To have uncommon things you have to do uncommon things." How true is it that, like Mark said, are comfortable with the statu-quo, or even worse complain about the business being down but aren't willing to try something new. They are too stuck on the "way things have always been done" and don't push to be different. There are lots of things on that list, and some that others mentioned (my favorite being the QR code), that can really be a waste of time and though the concepts look great and wonderful don't really drive the experience for the customer. I often have to remind myself to K.I.S.S. (keep it simple stupid) the customers when they are in. Basic southern hospitality, giving them what they ask for as much as possible. Always remembering what I would want my car buying experience to be like if I were them.
Dealers Marketing Network
Trump Candidacy: Lessons for the Auto Industry
After a rocky start announcing his candidacy for the Presidency of the United States, Donald Trump has amazed the pundits and blew away a field of Republican candidates that brought an extensive track record to the race for the White House.
Every time Donald said something politically incorrect, the media anticipated he would implode and lose his followers. It never happened. While Trump is not without his flaws, the public knows he performs, has accomplished some incredible business goals on a global basis, and will speak his mind. Yes, the Donald has had some big failures too, but in the real world if you don’t take risks you’ll never fail. Even Steve Jobs had his failures; remember the Apple Newton and NeXT computers?
Let’s recap: Within less than one year a wealthy businessman, reality TV star, and someone who has never held elected office, is on track to become the Republican candidate for President of the United States.
How did it happen? The answer is simple! The political systems in our country and our elected officials have shown a blatant disregard for the principles that our country was founded on. Their ineptness, disregard for the taxpayers, and burdensome regulations and taxes on business caused a frustration level in the American public not seen since the days when we dumped King George’s tea in the Boston Harbor. Make no mistake; the revolution has begun to take back our country.
Auto Retailing in a Fishbowl
What does all this mean for our industry? Many consumers are tired of the traditional auto buying process, crass advertising, insincere auto sales people who say they want to “earn our business,” high pressure finance office practices, and a service department process that rewards people for selling customers products and/or services they may not need or want. Dealers like politicians in Washington D.C. need to listen to and observe the trends and shifts going on in the industry and respond to them in order to remain relevant. The internet has made everything transparent so dealers are operating in a fishbowl where very little remains hidden. Every consumer now has a voice!
Auto dealers are not in a comfortable spot. The OEMs have goals that are often vastly different from their dealers. The OEM customer is the dealer who purchases their vehicles, parts, and other services. While OEMs advertise their products on TV and other media channels they are not focusing on helping or maintaining profitability for any one dealership. The Volkswagen issue highlighted the fact that profits come before ethics. Now the damage is not only a financial loss, but a loss of trust from consumers toward the brand.
The Disruption Continues
Third party solutions like TrueCar and other start-ups are working to devalue the many services provided by local car dealers. Tesla is riding the level of consumer frustration to bypass the franchise system and sell directly to the public. Watch for more disruptors to emerge this year.
Danger of the Status-Quo
When a consumer goes to virtually any new car dealers’ website it says they put the customer first; however surveys still show that 90% of the public do not trust auto dealers. Why the disconnect? Clearly most dealers have not changed their sales strategy in the last 20 years. Except for adding a Facebook page and an OEM provided website with missing content and a “call for internet price” button things are still the same.
Most dealers ignore these warning signs and trends on social media, because for many, sales are up and profits continue to roll in month by month. Their attitude is “business is good” why change anything? Yes it is good, for now, but like folks in Washington found out, the winds of change are coming.
Make the Tough Choices
We need to recognize the changing landscape and adapt our business processes and marketing to bring in customers and retain employees for more than 6 months. While having a presence on social media channels is a fact of life, spending inordinate amounts of time and money on Facebook, Twitter or Instagram will not help you build your sales and brand on a local level. They will only drive you away from connecting with your core customers that are right in your own backyard.
Implement engagement marketing programs, leverage local and regional relationships, re-engineer your sales and service team hours and compensation, and treat everyone with respect. Initiating these steps along with utilizing technology will insure many more years of growth and profits.
I encourage dealers to take these steps, and remember that your happiest customers are not the mini-deals but folks where you made a good profit. And since that's the case why are you still focusing on price?
Become a good neighbor and you'll have more happy customers.
Mark Dubis
Carfolks.com
8 Comments
Internet Dealer Solutions, Ltd.
The needed changes are just under the surface. Good thinking here, thanks,
Push22
Good article, although Trump got off to a great start. When he talked about building a "yuuuge Wall" and sending the illegals back home right out of the chute, he shot to the top of the polls. He defied conventional wisdom and he's now the presumptive nominee. Good for him, and you're right, now it's time for the auto industry to stop being so predictable and stale w/their industry marketing and business model.
AutoStride
It's happening on the left as well, with Bernie. Both are disrupting the status quo and frankly, I think it's healthy.
VinAdvisor
Very insightful. I think you are spot on comparing disenfranchised voters and car buyers. The biggest difference between the two segments is the role of the media (4th Estate). Trump's greatest strength and tragic flaw is his ability to create valuable, albeit not very tasteful, content from the bottom up. While the thought Trump waging an all night twitter battle with Putin, Kanye and Joaquin Phoenix from the White House is beyond frightening, his strategy has captured more media coverage than any campaign in history. They post his tweets on every type of TV show!
Dealerships being local businesses, even the Autonation's and Sonic's, can replicate this tactic to engage consumers with bottom up social media strategy that will get TV & radio to cover it. Social media posts should be all about your customers - no one wants to see a post from a tech saying, "10th LOF of the morning...killing it!" - on Facebook.
Want to limit your pain from Yelp? Get all your customers to post on your dealership FB page so they can defend you when a "gator" (angry customer) wants to YELLL AT YOU ONLINE! Your good customers will intercede - priceless - to authentically support all that you do .
ROBBINS NISSAN
Thanks for sharing, Mark. Our industry MUST be on the cutting edge.
Dealers Marketing Network
Future Headline: Disney and Google Partner to Buy 100 Auto Dealerships
(I recently entered a time warp which took me two years into the future. While there I read this article in the March 2016 issue of Automotive News and wanted to share it with you.)
This week Google and The Walt Disney Company announced their partnership to establish a new company which has arranged to purchase 100 new car dealerships in five states. They plan on announcing these locations over the next month as legal documents and filings are completed.
The franchises include domestic, Asian, and European brands and are located in large markets or within 30 miles of metro areas. Disney long known for their focus on the customer experience saw an incredible opportunity that auto dealers failed to capitalize on, even though many dealers completed the Disney Experience Training programs.
Don Duckhouser, Chief Communications Officer for Disney said, “In our opinion it was pretty clear that the majority of auto retailers were hiding behind technology and not focusing on extending relationships to build networks of customers and prospects. Their high employee turnover and lack of respect for their associates indicated to us that implementing a “Disney Process” could retain the best employees, provide a great work environment and still provide personalized service to the auto buying public.” He continued, “If we can get folks to pay $100 a day to ride a few roller coasters and have them wait in line for an hour for a four minute ride, then selling cars and trucks and providing them with a stellar experience is a no-brainer.”
Ken Searchwright from Google Automotive Marketing division shared his vision of the new stores; “We have designed a simple, friction-free, transparent process that will excite customers, attract a new class of employees, and restore the reputation of auto retailers. Our marketing will be local, organic, socially conscious and not reliant on price or promoting ridiculous trade-in values.”
He continued, “While our operations rely on the latest technology the work environment will be very attractive to employees, offer a powerful home/work balance, and create generous incentives for revenues from repeat customers, their friends and family members. A ramped up level of networking will replace most of the traditional advertising and all media messaging will be consistent across all channels.”
Existing media properties and online channels of Disney and Google will feature interactive advertisements promoting these dealerships; and other tie-ins will be rolled out over the coming year. Naturally Google's team will handle the search optimization and online ads.
When this reporter spoke to auto industry executives many would not speak on the record, but one individual shared, “For years we have tried to encourage, push, and cajole our retailers to improve their sales process and employee retention. Many just didn’t seem to want to move in that direction, so as manufacturers with a brand to protect we are aligning with companies that value the customer experience and transparency.”
Article written by Mitch McFly (mcfly@autonews.com)
(note- this email will not exist until two years from now)
14 Comments
Premier Performance Group
Great stuff! We have seen Paradigm shifts in the auto industry for years now and the question remains, "How well do you embrace change (and technology)? Thanks for the great article.
Impact Marketing & Consulting Group, LLC
Brilliant Mark. Great word picture for what is going on currently and where it should be heading. Thanks for the article.
Automotive Digest
One might say that the existing automotive distribution system or channel will have to change dramatically for Google or Disney to bother with buying dealerships. However, dealerships may not be dealerships in the next 5 years. Then their involvement could be significant. There is nothing innovative in automotive marketing for G or D at present in automotive distribution but we perhaps should watch what Tesla is doing and how technology and data from Google and other big data companies is changing and is going to change the franchise model and how it operates.
Storytailer LLC
Now, THIS should scare a bunch of dealerships! (were it true) Love this!
Kijiji, an eBay Company
I think if either Google or Disney got into the game it would be subscription base autonomous vehicles. Both businesses excel in selling services, not products. For Disney, they could also input a "glitch" where you are locked in the vehicle as it drives directly to the nearest theme park.
Auto Buyer Consultants
Okay, so it took 15 years, but now everyone knows what that dude meant when he kept saying, "The Future is an Amusement Park". Disney and Google, what a sensational combination...
Dealer InLine
I agree with Duckhouser's comment that customers are looking for a relationship when purchasing anything. What brings someone back is the relationship with the staff and the business and if you can instill this into the culture of the business you can create that environment that people look forward to visiting again and again. Nothing is more powerful than a positive referral
Auto Industry
Many dealers completed their Disney course, as well as many folks from GM. They learned how to get rave reviews from people who paid a LOT of money to stand in line for hours surrounded by screaming kids. To my knowledge, NO ONE from Disney attended auto retail training where they could learn how to sell cars to consumers, few of whom have "fast track" credit, many who have negative equity in their trade ins, who have to sign upwards of 46 documents, disclosures, disclaimers, etc., many of which are mandated by lenders and regulators, to get the deal done, while still achieving a 90 percent plus CSI score. Funny how people with NO auto retail experience have a better idea how to run our business than the people doing it. Disney needs to send THEIR people to auto dealerships.
Auto Industry
Customers used to be looking for a relationship when buying large ticket items. These days, Millennials in particular don't care. They are ruthless. When they move out of their parent's basement we'll take them more seriously.
Auto Industry
http://www.adweek.com/news/advertising-branding/millennial-male-not-who-you-think-he-152929
Dealers Marketing Network
Dave thanks for your insights; as usual you are very observant and make some great points. Yes, many people outside the industry think they can do it better. Most of the time they are wrong (eg. the original AutoNation superstore concept). Then an outsider and retail team from Circuit City came along and started CarMax using a non-confrontational selling process. Their net income last year was $434.3 million and their total revenue was $10.9 billion. Pretty good for non-car experts. As for Millenials not caring about relationships, I do not believe that is true in most cases. Remember they grew up in an age where government politicians, companies and many people in leadership roles proved they could not be trusted; so naturally they are reticent when it comes to relationships. Car sales people are certainly on the list of people not to trust, and that is the reason why my premise of a company like Disney entering auto retailing becomes that more real. As for Disney's skill in navigating what it takes to put a “car deal together” remember they run television networks, amusement parks, animation studios, and numerous cable companies while employing 144,000 employees (2009 figure). I certainly think they have the expertise and can figure out how to handle negative equity on an auto buying transaction. Dealers and third party vendors have trained younger consumers that a lowest price is the best deal. Dealers that continue to pay lead providers promoting low prices hundreds of dollars for closed sales are short sighted and compromising long term viability for short term gain. And in many cases dealers are devaluing everything they have built that is truly important like their reputation in the community and the reputation and professionalism of their salespeople and managers. They have made their product just a commodity. It would not take long for a customer focused, financially disciplined, well-managed company to quickly get up to speed on running a customer friendly dealership that would be incredibly profitable. Virtually every dealer has the ability to improve their operations, but in this environment (making big $$$) most don't have the will to change anything. I wrote this article hoping that some dealers and OEMs would see the value in really improving their way of doing business and rebuilding the good reputation of auto retailing. The reality is, if we don't initiate the change, someone else will!
Kijiji, an eBay Company
As a Millennial myself (top end) and spending the majority of my life around other Millennials I concur that I, nor anyone I know, cares much at all about a relationship when purchasing a product. If the product can be purchased in an efficient manner, and the cost/value is correct that is all that matters. So, if something can be purchased online, delivered to my home, and returned just as easily if need be, then I am sold. I don't care if it is from a faceless machine, or from my buddy the Car Salesperson. Now, if things are supper efficient, and there is a relationship that is a plus. But efficiency and price/value are paramount. Just my two cents on Millennials.
Storytailer LLC
I would buy a car from Disney simply to say I bought a car from Disney. That's just my Disney freak side making an appearance though. They already have an automatic debit on my checking account for stock purchases every month. I wonder if I could buy a house from them? hmmm.. (Oh, and yes, you can buy a house from them. Just saying.)
AutoStride
Makes sense... Look at Warren Buffet. He is going to combine the data he has from home buyers (Berkshire Hathaway Realty) and combine that with automotive. Powerful data, indeed! Berkshire Hathaway completes Van Tuyl acquisition http://www.autonews.com/article/20150310/RETAIL07/150319987/berkshire-hathaway-completes-van-tuyl-acquisition
Dealers Marketing Network
Future Headline: Disney and Google Partner to Buy 100 Auto Dealerships
(I recently entered a time warp which took me two years into the future. While there I read this article in the March 2016 issue of Automotive News and wanted to share it with you.)
This week Google and The Walt Disney Company announced their partnership to establish a new company which has arranged to purchase 100 new car dealerships in five states. They plan on announcing these locations over the next month as legal documents and filings are completed.
The franchises include domestic, Asian, and European brands and are located in large markets or within 30 miles of metro areas. Disney long known for their focus on the customer experience saw an incredible opportunity that auto dealers failed to capitalize on, even though many dealers completed the Disney Experience Training programs.
Don Duckhouser, Chief Communications Officer for Disney said, “In our opinion it was pretty clear that the majority of auto retailers were hiding behind technology and not focusing on extending relationships to build networks of customers and prospects. Their high employee turnover and lack of respect for their associates indicated to us that implementing a “Disney Process” could retain the best employees, provide a great work environment and still provide personalized service to the auto buying public.” He continued, “If we can get folks to pay $100 a day to ride a few roller coasters and have them wait in line for an hour for a four minute ride, then selling cars and trucks and providing them with a stellar experience is a no-brainer.”
Ken Searchwright from Google Automotive Marketing division shared his vision of the new stores; “We have designed a simple, friction-free, transparent process that will excite customers, attract a new class of employees, and restore the reputation of auto retailers. Our marketing will be local, organic, socially conscious and not reliant on price or promoting ridiculous trade-in values.”
He continued, “While our operations rely on the latest technology the work environment will be very attractive to employees, offer a powerful home/work balance, and create generous incentives for revenues from repeat customers, their friends and family members. A ramped up level of networking will replace most of the traditional advertising and all media messaging will be consistent across all channels.”
Existing media properties and online channels of Disney and Google will feature interactive advertisements promoting these dealerships; and other tie-ins will be rolled out over the coming year. Naturally Google's team will handle the search optimization and online ads.
When this reporter spoke to auto industry executives many would not speak on the record, but one individual shared, “For years we have tried to encourage, push, and cajole our retailers to improve their sales process and employee retention. Many just didn’t seem to want to move in that direction, so as manufacturers with a brand to protect we are aligning with companies that value the customer experience and transparency.”
Article written by Mitch McFly (mcfly@autonews.com)
(note- this email will not exist until two years from now)
14 Comments
Premier Performance Group
Great stuff! We have seen Paradigm shifts in the auto industry for years now and the question remains, "How well do you embrace change (and technology)? Thanks for the great article.
Impact Marketing & Consulting Group, LLC
Brilliant Mark. Great word picture for what is going on currently and where it should be heading. Thanks for the article.
Automotive Digest
One might say that the existing automotive distribution system or channel will have to change dramatically for Google or Disney to bother with buying dealerships. However, dealerships may not be dealerships in the next 5 years. Then their involvement could be significant. There is nothing innovative in automotive marketing for G or D at present in automotive distribution but we perhaps should watch what Tesla is doing and how technology and data from Google and other big data companies is changing and is going to change the franchise model and how it operates.
Storytailer LLC
Now, THIS should scare a bunch of dealerships! (were it true) Love this!
Kijiji, an eBay Company
I think if either Google or Disney got into the game it would be subscription base autonomous vehicles. Both businesses excel in selling services, not products. For Disney, they could also input a "glitch" where you are locked in the vehicle as it drives directly to the nearest theme park.
Auto Buyer Consultants
Okay, so it took 15 years, but now everyone knows what that dude meant when he kept saying, "The Future is an Amusement Park". Disney and Google, what a sensational combination...
Dealer InLine
I agree with Duckhouser's comment that customers are looking for a relationship when purchasing anything. What brings someone back is the relationship with the staff and the business and if you can instill this into the culture of the business you can create that environment that people look forward to visiting again and again. Nothing is more powerful than a positive referral
Auto Industry
Many dealers completed their Disney course, as well as many folks from GM. They learned how to get rave reviews from people who paid a LOT of money to stand in line for hours surrounded by screaming kids. To my knowledge, NO ONE from Disney attended auto retail training where they could learn how to sell cars to consumers, few of whom have "fast track" credit, many who have negative equity in their trade ins, who have to sign upwards of 46 documents, disclosures, disclaimers, etc., many of which are mandated by lenders and regulators, to get the deal done, while still achieving a 90 percent plus CSI score. Funny how people with NO auto retail experience have a better idea how to run our business than the people doing it. Disney needs to send THEIR people to auto dealerships.
Auto Industry
Customers used to be looking for a relationship when buying large ticket items. These days, Millennials in particular don't care. They are ruthless. When they move out of their parent's basement we'll take them more seriously.
Auto Industry
http://www.adweek.com/news/advertising-branding/millennial-male-not-who-you-think-he-152929
Dealers Marketing Network
Dave thanks for your insights; as usual you are very observant and make some great points. Yes, many people outside the industry think they can do it better. Most of the time they are wrong (eg. the original AutoNation superstore concept). Then an outsider and retail team from Circuit City came along and started CarMax using a non-confrontational selling process. Their net income last year was $434.3 million and their total revenue was $10.9 billion. Pretty good for non-car experts. As for Millenials not caring about relationships, I do not believe that is true in most cases. Remember they grew up in an age where government politicians, companies and many people in leadership roles proved they could not be trusted; so naturally they are reticent when it comes to relationships. Car sales people are certainly on the list of people not to trust, and that is the reason why my premise of a company like Disney entering auto retailing becomes that more real. As for Disney's skill in navigating what it takes to put a “car deal together” remember they run television networks, amusement parks, animation studios, and numerous cable companies while employing 144,000 employees (2009 figure). I certainly think they have the expertise and can figure out how to handle negative equity on an auto buying transaction. Dealers and third party vendors have trained younger consumers that a lowest price is the best deal. Dealers that continue to pay lead providers promoting low prices hundreds of dollars for closed sales are short sighted and compromising long term viability for short term gain. And in many cases dealers are devaluing everything they have built that is truly important like their reputation in the community and the reputation and professionalism of their salespeople and managers. They have made their product just a commodity. It would not take long for a customer focused, financially disciplined, well-managed company to quickly get up to speed on running a customer friendly dealership that would be incredibly profitable. Virtually every dealer has the ability to improve their operations, but in this environment (making big $$$) most don't have the will to change anything. I wrote this article hoping that some dealers and OEMs would see the value in really improving their way of doing business and rebuilding the good reputation of auto retailing. The reality is, if we don't initiate the change, someone else will!
Kijiji, an eBay Company
As a Millennial myself (top end) and spending the majority of my life around other Millennials I concur that I, nor anyone I know, cares much at all about a relationship when purchasing a product. If the product can be purchased in an efficient manner, and the cost/value is correct that is all that matters. So, if something can be purchased online, delivered to my home, and returned just as easily if need be, then I am sold. I don't care if it is from a faceless machine, or from my buddy the Car Salesperson. Now, if things are supper efficient, and there is a relationship that is a plus. But efficiency and price/value are paramount. Just my two cents on Millennials.
Storytailer LLC
I would buy a car from Disney simply to say I bought a car from Disney. That's just my Disney freak side making an appearance though. They already have an automatic debit on my checking account for stock purchases every month. I wonder if I could buy a house from them? hmmm.. (Oh, and yes, you can buy a house from them. Just saying.)
AutoStride
Makes sense... Look at Warren Buffet. He is going to combine the data he has from home buyers (Berkshire Hathaway Realty) and combine that with automotive. Powerful data, indeed! Berkshire Hathaway completes Van Tuyl acquisition http://www.autonews.com/article/20150310/RETAIL07/150319987/berkshire-hathaway-completes-van-tuyl-acquisition
Dealers Marketing Network
Life Lessons from Navy SEAL Training
Few would dispute that training to become a Navy SEAL is one of the most rigorous and challenging processes in the world. Adm William H. McRaven recently gave a commencement address highlighting the life lessons from that training. Here are some of the highlights, a few which I have adapted for this audience, but I would like to invite you to read the full article to see all his comments. http://bit.ly/navyseallessons
Life Lessons Highlights from Navy SEAL Training
- If you want to change the world, start off by making your bed. If you can't d
o the little things right, you will never do the big things right. And if by chance you have a miserable day, you will come home to a bed that is made—that you made—and a made bed gives you encouragement that tomorrow will be better.
- If you want to change the world, find someone to help you paddle. You can't change the world alone—you will need some help—and to truly get from your starting point to your destination takes friends, colleagues, the goodwill of strangers and a strong coxswain to guide them.
- Nothing matters but your will to succeed. Not your color, not your ethnic background, not your education and not your social status. If you want to change the world, measure people by the size of their heart, not the size of their flippers.
- Sometimes, no matter how well you prepare or how well you perform, you still end up on the losing side of the situation. It's just the way life is sometimes. If you want to change the world, don’t focus on the failings but keep moving forward.
- Life is filled with consequences and crappy outcomes. You will fail. You will likely fail often. It will be painful. It will be discouraging. At times it will test you to your very core. But if you want to change the world, don't be afraid of those failures.
- If you want to change the world sometimes you have to find new solutions to old problems. Take the risk; it might work out well.
- There are a lot of bullies and hurdles (sharks) in the world. If you hope to complete the journey and reach your goals you will have to deal with them. So, if you want to change the world, don't back down from these hurdles.
- Every SEAL knows that at the darkest moment of the mission, is the time when you must be calm, composed—when all your tactical skills, your physical power and all your inner strength must be brought to bear. If you want to change the world, you must be your very best in the darkest moment.
- If I have learned anything in my time traveling the world, it is the power of hope. The power of one person—Washington, Lincoln, King, Mandela and even a young girl from Pakistan named Malala—can change the world by giving people hope.
- Quiting is a simple process, you can walk away anytime. If you want to change the world; quitting is not an option.
Suceeding in auto retailing is certainly not tougher than being a Navy SEAL team member, but if you and your dealership really want to compete and win, there are lessons here we can all learn.
1 Comment
Remarkable Marketing
Amazing LIFE lessons here. Many of them I follow close to my heart! Especially the "You have to fail to succeed concept" Thanks Mark for posting such an inspiring article!
Dealers Marketing Network
Life Lessons from Navy SEAL Training
Few would dispute that training to become a Navy SEAL is one of the most rigorous and challenging processes in the world. Adm William H. McRaven recently gave a commencement address highlighting the life lessons from that training. Here are some of the highlights, a few which I have adapted for this audience, but I would like to invite you to read the full article to see all his comments. http://bit.ly/navyseallessons
Life Lessons Highlights from Navy SEAL Training
- If you want to change the world, start off by making your bed. If you can't d
o the little things right, you will never do the big things right. And if by chance you have a miserable day, you will come home to a bed that is made—that you made—and a made bed gives you encouragement that tomorrow will be better.
- If you want to change the world, find someone to help you paddle. You can't change the world alone—you will need some help—and to truly get from your starting point to your destination takes friends, colleagues, the goodwill of strangers and a strong coxswain to guide them.
- Nothing matters but your will to succeed. Not your color, not your ethnic background, not your education and not your social status. If you want to change the world, measure people by the size of their heart, not the size of their flippers.
- Sometimes, no matter how well you prepare or how well you perform, you still end up on the losing side of the situation. It's just the way life is sometimes. If you want to change the world, don’t focus on the failings but keep moving forward.
- Life is filled with consequences and crappy outcomes. You will fail. You will likely fail often. It will be painful. It will be discouraging. At times it will test you to your very core. But if you want to change the world, don't be afraid of those failures.
- If you want to change the world sometimes you have to find new solutions to old problems. Take the risk; it might work out well.
- There are a lot of bullies and hurdles (sharks) in the world. If you hope to complete the journey and reach your goals you will have to deal with them. So, if you want to change the world, don't back down from these hurdles.
- Every SEAL knows that at the darkest moment of the mission, is the time when you must be calm, composed—when all your tactical skills, your physical power and all your inner strength must be brought to bear. If you want to change the world, you must be your very best in the darkest moment.
- If I have learned anything in my time traveling the world, it is the power of hope. The power of one person—Washington, Lincoln, King, Mandela and even a young girl from Pakistan named Malala—can change the world by giving people hope.
- Quiting is a simple process, you can walk away anytime. If you want to change the world; quitting is not an option.
Suceeding in auto retailing is certainly not tougher than being a Navy SEAL team member, but if you and your dealership really want to compete and win, there are lessons here we can all learn.
1 Comment
Remarkable Marketing
Amazing LIFE lessons here. Many of them I follow close to my heart! Especially the "You have to fail to succeed concept" Thanks Mark for posting such an inspiring article!
Dealers Marketing Network
Digital Dealer 16 - Highlights to Make You a Super Salesperson or Manager
If you could not attend Digital Dealer 16 in Atlantic City this year, let me sum up what the attendees learned at this year’s event. Here are the main tips and advice that many paid thousands to hear. I have also thrown in a few tips their professional speakers may have missed.
- Treat customers with respect
- Guide customers through the sales process and solve their transportation and financial issues
- Provide social proof you can deliver a great customer experienc
e
- Never ask a customer to post a review for you while in the dealership. If they liked you to that point, standing over their shoulder while they type the review will blow it for you.
- Stop being sexist and treat women fairly in the sales and service departments
- Sales people need to be online and build their personal brand
- People like watching videos. Use them to inform and educate prospects and customers.
- Everyone is on mobile devices to be sure to be present in this new mobile environment
- Use SMS-Text messaging but be sure to have a software solution that keeps you compliant as the penalties for non-compliance are huge
- Keep your website updated. Empty staff pages, boilerplate About Us pages show visitors you do not care about them. It’s your site; make it the best you can.
- Do not require a complete dossier before someone can submit a contact form on your website
- All they need is name, email and/or phone number
- Managers need to publicly recognize employees that do a good job. It keeps them engaged and boosts morale
- Avoid the candy machine in the dealership as much as you can
- Managers: Never ask an employee to do something you would not do yourself
- Never use slang, derogatory terms, or curse in the dealership as it shows you are either ignorant, rude, stupid or all of the above. Act like the professional you hope people believe you are.
- Drink lots of water. Hydration is good and you can use the bathroom breaks too
- Use technology to enhance relationships not to take the place of them
- Use and depend on your CRM system. It is the foundation for professional success.
- Use, do not abuse social media channels like Facebook and Twitter. Be a good neighbor online.
- Try not to spill catsup on your shirt when you eat at the local burger joint, and if you do have a spill, keep a spare shirt in your car or truck
- Tell people your dealership guarantees NOT to meet or beat any price. They will look at you in awe and then you can explain that at your dealership there is more to making a customer happy than the price. Then tell YOUR story!
- Don’t look for gimmicks to bring in those extra ten deals a month.
- Don’t promise anything you cannot deliver!
- Work Hard, Be Nice to People.
The rest is all common sense stuff that you already know. And by the way if you can save up the money I highly recommend attending these events. You will learn as much if not more from conversations in the hallways than you will from the presentations. I ought to know because I organized and coordinated the first two Digital Dealer Conferences in Nashville way back when and they have only improved since then.
No Comments
Dealers Marketing Network
Digital Dealer 16 - Highlights to Make You a Super Salesperson or Manager
If you could not attend Digital Dealer 16 in Atlantic City this year, let me sum up what the attendees learned at this year’s event. Here are the main tips and advice that many paid thousands to hear. I have also thrown in a few tips their professional speakers may have missed.
- Treat customers with respect
- Guide customers through the sales process and solve their transportation and financial issues
- Provide social proof you can deliver a great customer experienc
e
- Never ask a customer to post a review for you while in the dealership. If they liked you to that point, standing over their shoulder while they type the review will blow it for you.
- Stop being sexist and treat women fairly in the sales and service departments
- Sales people need to be online and build their personal brand
- People like watching videos. Use them to inform and educate prospects and customers.
- Everyone is on mobile devices to be sure to be present in this new mobile environment
- Use SMS-Text messaging but be sure to have a software solution that keeps you compliant as the penalties for non-compliance are huge
- Keep your website updated. Empty staff pages, boilerplate About Us pages show visitors you do not care about them. It’s your site; make it the best you can.
- Do not require a complete dossier before someone can submit a contact form on your website
- All they need is name, email and/or phone number
- Managers need to publicly recognize employees that do a good job. It keeps them engaged and boosts morale
- Avoid the candy machine in the dealership as much as you can
- Managers: Never ask an employee to do something you would not do yourself
- Never use slang, derogatory terms, or curse in the dealership as it shows you are either ignorant, rude, stupid or all of the above. Act like the professional you hope people believe you are.
- Drink lots of water. Hydration is good and you can use the bathroom breaks too
- Use technology to enhance relationships not to take the place of them
- Use and depend on your CRM system. It is the foundation for professional success.
- Use, do not abuse social media channels like Facebook and Twitter. Be a good neighbor online.
- Try not to spill catsup on your shirt when you eat at the local burger joint, and if you do have a spill, keep a spare shirt in your car or truck
- Tell people your dealership guarantees NOT to meet or beat any price. They will look at you in awe and then you can explain that at your dealership there is more to making a customer happy than the price. Then tell YOUR story!
- Don’t look for gimmicks to bring in those extra ten deals a month.
- Don’t promise anything you cannot deliver!
- Work Hard, Be Nice to People.
The rest is all common sense stuff that you already know. And by the way if you can save up the money I highly recommend attending these events. You will learn as much if not more from conversations in the hallways than you will from the presentations. I ought to know because I organized and coordinated the first two Digital Dealer Conferences in Nashville way back when and they have only improved since then.
No Comments
Dealers Marketing Network
What Happens When Sleaze Meets Stupidity
I just read this review on a dealership's website. It upset me at two levels. One, I'm wondering how could this salesperson sleep at night and Two, how stupid is this consumer to not read the paperwork he is signing. I would like to hear your thoughts.
My wife and I went in to buy a 2014 (Vehicle Name) at XYZ Motors in Fort Myers, Florida we looked at a few cars and the salesman said he had just the car we wanted.was a 2013. They arranged the car insurance for me through my agent I thought they were being nice but did they do it to keep me from seeing the car was a 2013? The arranged my loan through my Credit Union was this to keep me from seeing it was a 2013? A week later when I realized the car was a 2103 at the LeeWay car pass office when they read off the car registration it was a 2013. This is the first time I realized the car was a 2013. When I called the Salesman, he said you signed the paper work! It’s my fault I just signed the papers where they told me to I did not read them. I thought they were honest people. Another lesson learned at age 65. I want to warn others as to how this dealership works. They took advantage of me and my wife and never said the car was a 2013 I want to let others know buyer beware.
-----end of review-----
Is this kind of activity acceptable at your dealership or in our industry?
Do we just have to accept this as part of the status quo of auto retailing?
13 Comments
Apple Chevrolet
Sleaze and stupidity are good words for this type of activity.
Scholtes Auto World
There is not looking at the paperwork, which is what all of my customers do because they trust me and then, really not looking at any of the paperwork. People never read the backside of a finance contract, but they certainly see or look at the description on the top page, you know the very first page that says what you are buying? I'm thinking this is a made up story. I always start by stating what they are buying, then the price, then any options or taxes, the total, interest rate, payments, etc. How can a car be delivered without stating the basics, forget the government BS and the backside legaleize. Did this guy just say, please sign here ! without a word about the transaction. Must be a Florida Thing. "Just Sign Here Folks and you can drive away!" This guy should put on a magic show!
Dealer Inspire
It is kind of mind boggling that the customer didn't look at the paperwork as they were signing it. It is a bigger shame that this salesperson and sales manager let the customer think it was a 2014. That is very deceptive. I'm guessing if they took this to court, the customer will win this fight with a good attorney.
DrivingSales
That dealer doesn't seem very concerned with repeat business. While it's true that it wasn't too bright on the customer's part to not read a contract, they did do something right:they they left a review, which will haunt the dealer when individuals (and potential customers) like Mark find it so easily online.
Heritage Chevrolet
Just a thought. Did you interview the dealership to get their side if the story?
Heritage Chevrolet
Of course, the actual reply online speaks for itself: Business Response On behalf of everyone at ABC Motors, we would like to extend our most sincere apologies for your experience. We strive for 100% customer satisfaction and we're sorry to hear that your recent visit did not meet your expectations. Your feedback will help us ensure that this experience doesn't happen again and we would like the opportunity to resolve this matter to your satisfaction. Please contact Jane Doe at 555-555-1212 so we can discuss options with you.
Preston Automotive Group MD/DE
I have been involved in at least a hundred deals in which we arranged credit union financing, and I always called in the insurance as a service and to ensure the lender was protected in case it slipped the buyer's mind. The ONE THING I did NOT read here is that the buyer was TOLD it was a 2014. OF COURSE it is possible that the customer was intentionally misled, but a good friend hangs his hat on his best selling performance, in which his (very happy) customers asked, "what did we buy, again?". So buyers aren't always listening to the conversation in their excitement or apprehension. An error was made on both sides. Hopefully the dealership takes reasonable action to rectify the situation. The true measure of customer service is not being perfect, but HOW YOU RESPOND when a mistake is made...
Preston Automotive Group MD/DE
Out of curiosity, WHY are we hiding the dealer name, if this actually happened?
Dealers Marketing Network
Why hide the name of the dealer? I have learned over the years that most auto dealers do a good job of taking care of customers, and a few bad reviews are not a reason to "call-out" a dealer. For every negative review there are 50 happy customers so I saw no need to name this dealership. Did I contact the dealer to get their side of the story? No, the Internet doesn't work that way. Consumers will read reviews and choose to accept what they want to accept. It is incumbent on the dealer to make sure their customers share their experiences in a forum where the dealer can respond. In this case the dealer is using "canned" responses for virtually every negative review they get. (See Josh's post above).Dealers using these "blanket responses" do more harm to their reputation by showing the customer wasn't worth a personal response. If the post was not accurate, the dealer should have "delicately" posted a response to clarify what happened. We all know some customers have buyers remorse, are forgetful, and sometimes are just plain stupid. In our industry we need to constantly have a CYA process.
Premier Performance Group
A Google search for the phrase: " They arranged the car insurance for me through my agent I thought they were being nice" only found this post on Driving Sales and not on any dealer review sites? When Sleaze Meets Stupidity | Mark Dubis | DrivingSales www.drivingsales.com/permalink/205380/ 22 hours ago - They arranged the car insurance for me through my agent I thought they were being nice but did they do it to keep me from seeing the car was a .
Lower Dealer Cost
Hello Jay Prassel: I did a google search for a different phrase in his comments " When I called the Salesman, he said you signed the paper work! It’s my fault I just signed the papers where they told me to I did not read them. " and it DID bring me to a dealer site in Fort Myers, FL. So, I'm thinking he did complain. I have no way of knowing if they mislead him or what but it does appear to have happened there.
Dealers Marketing Network
Thanks Mike for validating the posting of the review for Jay Prassel. Just curious Jay, why you thought this was a bogus posting? I like to think I'm a straight shooter, and that's why I adopted the Cowboy Code for our company's policy. http://ilovemycustomer.com/the-code/
Premier Performance Group
@Mark, sorry, I did not mean to insinuate that you made up the post, but after reading it again, I understand. I shouldn't respond or post while getting on a plane. Thanks to Mike for finding it. Mark corrected the spelling of "arrange" to the correct verb of "arranged", which is why my Google search failed. Since I moved to Florida 18 months ago, I am stunned and disappointed by what I see for advertising by dealers along with some poor business practices. Just wait until the FTC and CFPB make a visit here. Some interesting articles: http://www.dealerbusinessjournal.com/articleview.php?id=422-83284 http://oncars.blogspot.com/2014/01/car-dealers-of-south-fla-beware-ftc-is.html https://www.youtube.com/watch?v=YPY-s_cjL7o Thanks to Mark and your efforts to help dealers.
1 Comment
Ken Gregson
DrivingSales
What's the old saying Mark? "Good is the enemy of Great." Your article reinforces that. You make many excellent points. Fortunately there are many dealers really breaking out of the mold. Take a look at the Walser group in Minnesota or Lexus of Lehigh Valley in Allentown.
Breaking out of mediocrity is also about finally giving the customers the experience they've been asking for. Less hassel or how about no hassel. Time saving instead of time wasting. Your questions might include the following:
Lot's of way to break out of the staus-quo, wich perpetuates mediocrity.
Ken