If you have been paying attention the last few months to all the noise about social justice you have heard that many big advertisers pulled their ad programs from Facebook, Instagram, and other online social media channels.

These companies included Coca-Cola, Starbucks, Hershey Companies, Levi Strauss & Co., Honda, Verizon, Unilever (which includes brands Dove, Hellman’s, Lipton, Surf, Ben & Jerry’s, Q-tips, and others), Eddie Bauer, and North Face to name a few. 

They say they pulled their ads to support the “Stop Hate for Profit” campaign because Facebook allowed posts that the liberal left found objectionable. What doesn’t the left find objectionable?  This article is not to debate the philosophies of our political parties, but to highlight the challenges of participating in and advertising on social media channels. 

I can assure you that pulling their advertising because of “hate speech” was NOT a big consideration in their decisions. The truth was they recognized the dollars spent, the conversion and branding of their products and services did not meet any of their minimum ROI requirements. They leveraged the “social justice” mantra as a cover to pull ads from underperforming channels.  They saw the waters getting murky and got the hell out.

Many marketers and vendors will tell you that you HAVE TO BE ON FACEBOOK.  Well, my answer to that is “maybe you do” but don’t blow your budget on these channels. 

Lady Gaga appeared on the Jimmy Kimmel show and he questioned her about some activities in her personal life, which she said were false. When asked where he heard these rumors, he responded on social media sites.  She responded with one of my new favorite quotes, “Social Media is the toilet of the Internet.” 

If you have any gray matter left and a smidgen of common sense you know there is a lot of truth in her statement. As it’s been said before, social media has democratized the bullhorn. Everyone is “shouting out their thoughts, exposing their vitriol, and touting their manifestos as if we cared about what they have to say.”  It’s just too much egotistical pablum. Ask yourself, how visible do you want to be in the “toilet?” 

Now for good news. I’ll admit many of your customers and prospects are out on Facebook, Instagram, or Twitter keeping in touch with their friends or family and sharing birthday wishes. Yes, you can engage followers but don’t forget the critical elements on social media. Focus on quality content and look for connections to your audience. Ask yourself:  Are you sharing anything worthwhile or compelling?  If not, please reconsider your postings. Remember the words of Ben Franklin, "Speak of what benefits others."

It takes more than a snapshot of a customer standing in front of their new vehicle to get attention and engage visitors. If you’re going to build a social media strategy focus it around people and personalize it for your customers too. 

Shooting a selfie-video while screaming like a carnival barker about the options on the car behind you can get old quickly. Sure it’s free to post it, and only took a few minutes to shoot, but is it showing you or your dealership in the best light?   Or is it confirming the old perception of a slick-talking car salesman? 

Exercise Caution – Look for Alternatives

Please continue to allocate marketing dollars to digital marketing but target those channels that offer some conversion or solid branding opportunities for your dealership. 

Alternatively, you can initiate some local marketing tactics and have your customers, neighbors, and media highlight your “out of the box” advertising promotions.  Folks right outside your doors are looking to buy vehicles; you just have to let them know you’re a dealer who will treat them right and provide a great buying experience. 

Recommended Reading:  This is Marketing - By Seth Godin (Barnes & Noble or Amazon)

While the world is going digital there is a growing segment that still enjoys reading “real magazines” printed on paper. The experience is different from reading a blog and content including text and images have more time to “sink in” and can easily be shared.

Undoubtedly you’ve heard of content marketing; well producing your own custom magazine is the ultimate in content marketing. Your dealership gets to control all the content, select the images, advertisements, the features, and most importantly the cover story.

Every OEM has their magazines for their vehicle owners and they tout their new products and establish a connection with their readers.  All this is now within the grasp of any auto dealership.

Making a sale is about building a relationship with the customer and extending connections in the community also builds your brand and highlights a commitment to your city or town.  While the magazine would certainly include content to highlight the dealership, its people and its customers, it could also feature content about community activities, groups sponsored by the dealership, and highlight various charities. The content possibilities are endless.

Distribution would be in all departments of the dealership, especially in the customer lounge where customers can leisurely read through the publication.  Other distribution could be through vendors, suppliers, and local shops and restaurants in the area.

And by utilizing digital publishing and production, having a custom magazine is within reach of just about every dealership in the country.  Pricing depends on the number of pages, quantity, and size of the magazine, and there are also ways to subsidize the cost by getting partners, vendors, or suppliers to pay for advertising in the magazine.

I encourage dealers who are looking for ways to stand out in the market to explore producing their own publication. One caveat is to make sure your editing and production team do not violate any copyright laws and obtain releases for any images of individuals featured in the publication.

Auto dealers with one or two locations in secondary markets are often short of marketing resources, including staff to execute strategies and budgets to raise the visibility of the store and drive more showroom traffic. Now a company has come up with a solution to help these dealers generate more visibility in their communities via traditional, digital, and social media marketing programs.

Dealers Marketing Network’s suite of marketing solutions benefits local dealers in several ways. They offer a choice of programs covering local promotional events, social media activities, reputation marketing, proprietary video channels, and consulting time to develop community-specific programs.

Dealers also have the option to leverage a service that identifies vendors and vets them to ensure their programs are beneficial for that particular market.

According to CEO Mark Dubis, during the onboarding process, Dealers Marketing Network conducts an audit of the dealer’s current marketing activities, vendors, and campaign results. Then Dealers Marketing Network develops a strategy specific to the dealership for an initial deployment. Examples of what this could involve include digital and social media tactics, a blog, and showroom point-of-sale materials.

The Dealers Marketing Network plan creates promotions and engagement strategies on a market exclusive basis. Simply put, when a dealer signs onto the program, it will be the only dealer in its market area with access to the Dealers Marketing Network programs.

“Auto dealers benefit from our network similar to how a local television station benefits from being an affiliate of ABC, CBS, FOX, or NBC,” said Dubis. “Our clients have access to exclusive programming that is hard to compete with because it is well researched, targeted, and strategically planned,” he explained.

Dealers Marketing Network expects to build out across the country. As the network grows; so will the resources to develop cutting-edge marketing solutions, videos, and customer events for their member dealers.

Above the standard services, member dealers have the opportunity to initiate other programs and boost their visibility and brand even further. A compelling aspect of the program is the fact that the member dealer controls the monthly ad budget and the promotions it wants to roll out in its market.  They can boost their ad-spend on a seasonal basis and can turn the marketing faucet on a little or a lot.

Dubis further explained that the Dealers Marketing Network team provides the work product for each initiative. If the project requires point-of-sale materials or other external costs, the dealership covers those additional costs.  Over the past few years, technology has often been a two-edged sword for auto dealers. Now dealers in the network will be able to leverage creative talent and technology to generate more sales and service business and build relationships for future sales too.

Dealers can read more about the program at www.dealersmarketingnetwork.com  or call (216)712-6712. 

As the cost of vehicles goes up, leasing is making a strong rebound in the market.  OEM and dealer advertising are putting a strong focus on their lease programs. And with extra money in their pockets (tax breaks, increased salaries, etc.) consumers are looking to upgrade their vehicles.  All this is good news for auto retailers.

The issue from a transparency viewpoint is the “low monthly payment and big down payment” advertising to lure consumers into the dealership.  At this point let me acknowledge the reasonable payment and “0” down programs, but we can come back to them later.

Let’s look at a popular sedan that promotes a $199/mo for 36 months lease.  Cash due at signing is $ 2439.  So effectively the “real” monthly payment is $266.75 once you divide the $2439 by 36 mos. and add it to the advertised price.  This particular manufacturers Internet ad did not even show the consumer how many miles per year was included in the lease. 

Their disclaimer:  Security deposit waived, taxes, title, and license fee extra. . . Not all buyers will qualify for the [OEM lease program]. Payment may vary, dealer determines price. Cash due at signing is after $3,750 Customer Cash. …Take new retail delivery from dealer stock by [date]. See dealer for qualifications and complete details. Vehicle shown may have optional equipment not included in payment.

I think the $266 price is still an awesome price for this vehicle but clearly, the OEM wants to “play the low payment game.”  

Let’s look at another offering for this OEMs Sports Utility Vehicle that promotes a $289/mo for 36 months lease.  Cash due at signing is $ 3458.  So effectively the “real” monthly payment is $385.00 once you divide the $3458 by 36 mos. and add it to the advertised price.  Again this manufacturers’ advertisement did not show the consumer how many miles per year was included in the lease. 

Remember leasing is just renting a vehicle, keeping it in good condition and then giving it back to the “rental company” after the term is complete.  It’s a great concept and a wonderful way for consumers to drive a new vehicle for a few years. 

Now let's look at the transaction from a different perspective.

Let’s say you’re out looking to rent a nice luxury apartment and have enough funds for the first month's rent and a deposit.  You see a beautiful apartment and the advertisement says $700 a month.   WOW, you can afford that.  Then the fine print says $6000 down payment required up front.  Ouch.   Have you ever seen an apartment rental ad worded like this?  Of course NOT.  People are RENTING an apartment, not making a down payment on a house. 

Dealers should consider changing up their positioning and offer lease tiers to their customers.  Start with the OEM advertised price but promote letting the customer pick their payment and/or down payment (cap cost reduction).

An example might look like this:

Our (enter a model name here) is available for lease and payments start at $199 a month but you have the option to choose another payment and eliminate any down payment for our 36-month lease program. 

Our dealership lets you:  Choose the payment that fits your budget, Choose the down payment or trade-in equity that works best for you, and Choose the annual mileage allowed.   Call our lease specialist today.  

Then provide the fine print/disclosures for the original offer to meet advertising and federal guidelines.   The headline can be:  Great Lease Programs, & You Can Pick the Payment!

While the OEM lease programs meet Federal disclosure guidelines they are “deceptive” to the consumer because of tight credit guidelines, unreasonable low annual mileage, and ridiculous down payments. 

There are still some OEMs that offer zero down or sign and drive lease programs, so consumers with no real cash available will migrate to those vehicles if dealers aren’t able to offer something comparable.  C’mon dealers get creative and make that happen while putting folks in new vehicles at “budget-friendly” monthly rates. 

------------------------------------

Mark Dubis is the President of Dealers Marketing Network and provides services to the smaller community and rural auto dealerships with cost-effective engagement and digital marketing solutions. He previously worked as a marketing executive for two major banks in the mid-west and owned a leasing company in South Florida for eight years. He can be reached at
(216-)712-6712  or at http://dealersmarketingnetwork.com 

Here is a list of 24 items offering advice, guidance and tips on how sales people and dealerships can succeed, grow revenues, and create a great work environment.

Our industry benefits from some great trainers, consultants, and access to blogs, conferences, workshops and boot camps.  And while good information is shared at these events and websites, many of our peers can’t pay the high price to attend these sessions, so I am sharing the main points that are talked about at all of these venues here for free.

After you read this list I suggest you print it out and post it on your wall or in your cubicle to review regularly when enjoying your morning or afternoon beverage.   

1. Treat customers with respect.

2. Guide customers through the sales process and solve their transportation and financial issues.

3. Provide social proof you can deliver a great customer experience.

4. 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.

5. Stop being sexist and treat women fairly in the sales and service departments.

6. Sales people need to be online and build their personal brand in respectful fashion. This doesn’t mean posting your inventory on Facebook.

7. People like watching videos. Use them to inform and educate prospects and customers.

8. Everyone is on mobile devices to be sure to be present in this new mobile environment.

9. Use SMS-Text messaging but be sure to have a software solution that keeps you compliant as the penalties for non-compliance are huge.

10. 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.

11. 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.

12. Managers need to publicly recognize employees that do a good job. It keeps them engaged and boosts morale.

13. Avoid the candy machine in the dealership as much as you can. Not good for your waistline or your teeth.

14. Managers: Never ask an employee to do something you would not do yourself.

15. Never use slang, derogatory terms, or curse in the dealership as it shows you are either ignorant, rude, stupid or all of these. Act like the professional you hope people believe you are.

16. Drink lots of water. Hydration is good and you can use a few bathroom breaks too.

17. Use technology to enhance relationships not to take the place of them.

18. Use and depend on your CRM system. It is the foundation for professional success.

19. Use, do not abuse social media channels like Facebook and Twitter.  Be a good neighbor online.

20. Try not to spill ketchup 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.

21. 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!

22. Don’t look for gimmicks to bring in those extra ten deals a month. 

23. Don’t promise anything you can’t deliver!

24. Work Hard, Be Nice to People.

The rest is all common sense stuff that you already know.  As Zig Ziegler says, “Help your customers get what they want, and you’ll get what you want.”   We all want happy customers and more sales.

Dogs are Man’s best friend.  They get excited when we come home, they want to hang out with us, run along a path, and play fetch.  When we are watching football games on Sunday, who is on the sofa right next to us?  Yep, your dog is right there sharing your chips and burgers (unless your significant other calls first dibs).

Dogs can be trained to do difficult or fun tasks and tricks like rollover or play dead, but they are horrible at math.  They can’t even add 2 + 2. Sure we could force them to watch videos about math on YouTube, but somehow I don’t think it will do any good.  You could spend lots of time, money and effort to teach a dog simple arithmetic but at the end of the day, it ain’t happening.

If you read this far, you fell for the “clickbait”.   You know it’s those curious, annoying, or engaging website stories with an enticing, lurid, or questionable headline.  They fall under the category of sponsored stories or content. 

One featured a photo of Korie Robertson, the wife of Duck Dynasty star Willie Robertson.  The headline was, “Duck Dynasty wife makes no apology for online photo”. Of course, curious voyeurs wanted to see how or if she was misbehaving; but turns out she just posted a photo of herself on Instagram with no makeup.  Shocking, I know!  Why do we fall for these?  We know they are a big time waster and designed to push lots of ads to us before we get to see how Brooke Shields has aged over the years.

Regardless of the reason a good portion of them draw traffic.  If that’s the case why aren’t more dealers using this strategy to bring more folks to their websites.  Instead of standard vehicle price ads, lets get creative in drawng more traffic to dealer websites and highlight the majority of good dealers out there that offer a wonderful buying and service experience.   Also be careful when using these tactics as Facebook is implementing a process to block many of them. 

We love helping dealers so I asked our marketing team to come up with just a few ideas to prime the creative pump for dealers and their digital marketing companies.  Remember if you want to stand out in the market, do something different. 

These ads are samples and are not representative of actual ads by these dealers and are not meant to infer any business relationship with these dealers.

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:

1. The dealership uses the OEM website with little or no modification and looks like every other website from the same OEM.
2. The dealership doesn’t use localized or promotional URL’s and landing pages to create, market, and track various programs or coupon offerings.
3. 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.
4. The website inventory has a “Call for Internet Price” or just a “Call for Price” button
5. 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.”
6. 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.
7. 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.
8. 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.
9. 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?
10. 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.

In today's society there are only two things people talk about: the bad and the outstanding experiences. Companies who are mediocre don’t garner media attention or stand out in the industry. They have a consistent team, keep plugging away, and most of them run at a profit. They just choose to operate in their comfort zone and not push the marketing or customer experience envelope.

In 1982 there was a best seller called, In Search of Excellence. It sold 3 million copies in its first four years. It explored the art and sciences of management techniques used by companies who the authors believed were on a path to excellence in how they conducted business. Back then, excellence was something you strived for, people were proud of their achievements, and being successful was something that didn’t embarrass people.

I highly doubt the book would have the same cache today.  Instead, I believe the new bestseller would be, Mediocrity, Our New Achievable Business Goal.  Just stop in any mall chain store, department store, restaurant, or other service business, and the odds are you will encounter mediocre service during your visit. You’ll encounter sales clerks that ignore you, treat you like an inconvenience, or sometimes just display plain rude behavior. 

Here might be a typical conversation about a dining experience:   Hey Fred, Linda and I went out to eat last night at that new gourmet burger place.  The menu was okay and had a few nice selections; the wait for a table wasn’t too long, and rather than giving us one of those buzzers, they just yelled our name 4 times over the public address system. I think everyone in the county knew we were having dinner there. The waitress seemed a bit distracted but after about 15 minutes she did get around to taking our order and the busboy did come back to get rid of the sticky spots on the table underneath our silverware.   To their credit I must say the food was mostly warm when we got it but I had to pick off the onions that I told them not to put on my burger. Linda asked for a small Coke. They brought her drink in one of those quart size plastic glasses. She couldn’t comfortably hold it, but I guess it makes it easier for the staff so they don’t have to come back and give refills. You really should check this place out!

Is this a restaurant you would be rushing to visit?  I don’t think so.  Not a horrible experience, but not a great one either. Unfortunately this is the new normal.

It seems in our schools, our government, and in business we’ve become accustomed or satisfied with mediocre experiences.  The desire to be really good or even excellent doesn’t seem to be worth the effort in many instances.  Any readers care to talk about their stellar experience at the DMV?

What causes a business to be mediocre? Is it apathy, a lack of commitment, a management team that’s afraid to take some risks and work toward providing a superior customer experience, or a lack of training? In the case of a dealership, it could be they have fallen into a “nanny state” where the dealer is happy to let the OEM do their thinking and vendor selection for them? Or could it be a combination of all of the above?  

Let me be clear, I am not saying being a mediocre dealer is a bad thing. You can be a mediocre dealership and still be profitable and do things right every day. It’s just that as stated in the first sentence, no one talks about a mediocre experience.  If your operation is comfortable in that zone, then by all means continue what you are doing.  There are worse places to be than mediocre and in the current environment you can still be very profitable.

For the 60% of new car dealers out there who are mediocre there are steps you can take to improve performance, skills, and the culture in the store. In the next two parts of this series I’ll share insights on how to tell if you are mediocre, look at how we have come to accept this situation, and what the future might hold for dealers who continue to do business they way they’ve always done business.   

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

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