There was a time in the automotive business where cash was “king”, but that kingdom has long been overthrown. Back in the late 1970s and most of the 1980s, interest rates were at an all-time high[1] and lenders were staggeringly more stringent on approving loans. What that meant for the automobile industry was, if you walked into the showroom looking for a monthly payment there was a legitimate chance you were not going to get approved. If, however, you came in with cash, the only roadblock was… well, in that time there were no roadblocks. You were going home with a car whether you wanted to or not! :P

Today, the scenario is quite the opposite: 0% financing is commonly stretched to 96 months and beyond, and if you can fog a mirror, chances are someone will finance you. More importantly, this means paying cash is no longer desirable to a dealership. Unfortunately, someone forgot to explain this to the general population, causing a major disconnect during the negotiation process.

Many customers still believe paying cash is the best way to negotiate to the lowest price. At least once a day I will see a lead saying something to the tune of, “Give me your best offer and I will pay cash!” The customer assumes I’m running to drop my pants, when in fact I’m pouring another strong shot of whiskey lamenting in frustration. I kid – actually, if I have the opportunity to speak with a “cash only” customer one-on-one, it is one of the easiest closes in the book, and here is why/how.

In addition to the customer believing offering cash will get them the biggest discount, they also believe that monthly payments are inherently evil. That we, as dealers, play the numbers like a game of three-card shuffle and steal their wallets from their pockets. Searching for “How to Negotiate a Car Payment” will bring up countless examples of how the customer should ONLY negotiate with cash:

Dealer Trick #1: Negotiating on Monthly Payments

When the salesperson starts talking about monthly payments, watch out.

Clever salespeople want you to focus only on low monthly payments because it gives them room to inflate other variables, such as the loan interest and length. This increases the dealer’s profit — while you spend thousands more on the car overall.[2]

If it’s online, then it must be true, right?

It is no secret that negotiating via monthly payments can make for a smoother process and allows for more flexibility on offering back-end products. However, it also has benefits for the consumer that are often forgotten.

For example, ask a cash-only customer where they are actually getting the cash from. Unless they have a vault full of gold coins like Scrooge McDuck[3], likely they are borrowing the money from the bank. As of today, Bank of America is offering auto loans as low as 2.34 percent[4].

“And why would you want to pay 2.34 percent when we are offering zero percent financing, Mr./Mrs. Customer?”

This isn't a surprise to us in the auto industry; we handle cash customers all the time. We are well versed in the benefits of leasing, GAP insurance, only paying for what you use, etc., etc. Yet these are not the best tactics when dealing with a cash-only customer. The close I use is right under your nose, and it may surprise you.

I didn’t notice it at first either. It wasn’t until I needed an upgraded version of the Adobe Creative Suite when it hit me. If you are not familiar with it, Adobe makes a line of design software that is used in advertising, web development, etc. It’s not cheap, either: just ordering Photoshop alone used to set you back upwards of $1,000. When I went to order the latest version, there was no option to “buy” the software, you can now only rent it with a monthly plan. What was normally a one-time fixed expense is now a monthly payment of $29/month[5].

It’s not just Adobe that has switched to the software plan platform. I also pay Microsoft $9.99/month for Microsoft Office[6], $5/month for Evernote[7], $9.99/month for Dropbox Pro[8] and $5/Month for my SurfEasy VPN.

Under the cover of darkness the software industry has switched platforms from one-time expenses to a monthly payment system. In a way, it makes sense: buying a subscription allows you to always have the latest upgrades and content. Additionally, it’s a lot easier to swallow a monthly payment than a gigantic lump sum, increasing the conversion ratio for large programs. However, it’s not just the software industry that has gone this route; media has as well.

Remember when you bought movies? Unless you are hitting the DVD discount bin at your local Walmart, it’s actually quite difficult to purchase a movie these days. Instead, the most common platform is a subscription service like Netflix. Instead of paying $25 for a single movie, you can get access to thousands of movies and television shows for $7.95/month[9]. Or, if you want something seemingly more tangible, you can buy permanent access to media through iTunes or the Google Play store. However, in none of these scenarios are you actually purchasing a product – you are only paying for the access to the product. At any time, the media you purchased access to could disappear.

Music is no different; the days of buying the latest album from your favorite artist are gone. If you tasked me with purchasing a CD today from a store, I don’t know where I would even begin to shop. I do know that I can buy access via iTunes, or I can subscribe to an online streaming service like Spotify for $9.99/month[10]. Same goes for books and magazines – you are only buying the access to the content and not the actual content. For only $9.99/month[11] you can access all the magazines you want with your phone or tablet, and books are easily downloaded to your e-reader. It certainly is saving a lot of trees, but isn’t it interesting that entire industries have moved to a leasing-only platform and everyone seems to be cool with it? Yet, when you offer monthly payments to a customer purchasing an automobile, they suddenly reject the idea.

See where I am going with this? Right under our noses, every other industry switched to a monthly payment platform and we all have blindly followed like a horde of zombies. Let’s look at some other examples:

• How did you pay for your cellphone? Did it come packaged in your monthly plan?
• What about Internet, is that paid monthly as well?
• Do you still have a cable bill? Monthly, right?
• Home insurance, auto insurance, life insurance, pet insurance – obviously monthly?
• Taxes – monthly or semi-monthly?
• Mortgage is monthly?
• Costco member? Have you tried that new kale mix salad? That stuff is heavenly. Yeah, it’s yearly, but I hear they are planning to re-brand to monthly.
• Video games? Which, Xbox or PlayStation? Yeah, now PlayStation has a monthly online fee too.
• Gym membership? Yeah, I should probably use mine more as well. Monthly, right?
• Electric bill, gas bill, water bill – monthly, monthly and monthly?
• Retirement contribution? I know, it stings now but it’s necessary, right? Monthly?
• Got little ones? Day care, how did it get so expensive? Monthly?
• Do you support any charities? Did they hook you on the monthly contribution?
• Credit card payment is due monthly, obviously? I know, this past January I nearly fainted when I saw mine.
• Any social clubs? I myself am thinking of joining an axe-throwing league. It’s only a couple of bucks monthly. Yes, axe throwing, you should try it.[12]

“So Mr./Mrs. Customer, it seems that most of your expenses are in a monthly payment format. It appears this is your preferred method of payment. Therefore it would make the most sense to also pay for your vehicle needs in the same way, correct?”

The media and software industries have done the automotive industry an insurmountable favour. They have succeeded in transforming the North American consumer into a monthly payment junkie. Additionally, seemingly without the consumer’s knowledge, they have also transitioned them from a purchaser to a leaser overnight. All we in the auto industry need to do with a cash-only customer is remind them their entire life is now lived by leasing everything with a monthly payment.

Here is a sample of how the process works:

“But I want to OWN my car, I don’t want to pay to use it,” said Mr./Mrs. Customer.

“Not a problem, but may I ask, you have a Netflix account, correct?” asked the salesperson.

“Yes I do.”

“As do I. May I ask, how much would it cost to buy physical copies of all the movies and televisions shows you watch on Netflix?”

“Why, it would cost an awful lot,” replied the customer.

“So you would agree, paying a monthly fee for the use of these movies and shows is a better option, even though you don’t OWN them, correct?”

“Well, I guess,” replied the customer.

“And, back in the day when you did buy CDs and DVDs, how much did you spend on your collection?”

The customer looks up, and thinks for a few moments.

“A lot.”

“And, may I ask, where is that collection now?”

The wheels begin to turn in the customer’s head. 

“I gave most to Goodwill, and some are in a box in the basement,” replied the customer. They frown. Look down. Fumble with their hands.

“So that wasn't the best… investment, was it?”

“I guess not.”

“And, back in the 2000s, if Netflix existed, you probably would have used it instead of buying all those movies and shows, right?”

“Probably. Yeah.”

“Leasing a vehicle is no different, Mr./Mrs. Customer, there is just more money involved. Can I ask you another question?”

“Sure,” replied the customer.

“What happened if one of those CDs or DVDs got scratched? Would the value go down?”

“Of course.”

“And you would be at a financial loss. Same goes if you purchase a vehicle and, God forbid, it gets into a fender bender. Even if someone dings it in the parking lot while you are shopping, you lose money on the re-sale. With leasing, providing you opt-in for GAP insurance, you wouldn’t find yourself at a financial loss when the vehicle value diminishes after an accident.  Providing you have adequate insurance, of course.”

“Really?”

“Yes, really. So Mr./Mrs. Customer, since you already are well invested in monthly payment services like Netflix, let’s look at how a lease can also easily fit into your monthly budget.”

To get technical, why this works so well is that you are using their own lifestyle against them. It is very difficult to discredit something when so much of your life is already involved in it. People are naturally influenced to continue with what they have already committed to. Since they are already committed to so many monthly subscriptions and payments already, the transition from paying cash for a vehicle to paying monthly makes all the sense in the world.

Think about it yourself. How much of your life is paid for in monthly lease agreements? You may surprise yourself.

[1] United States Average Monthly Prime Lending Rate | 1950-2015 | Data | Chart. (n.d.). Retrieved from http://www.tradingeconomics.com/united-states/bank-lending-rate
[2] 4 Car Dealer Tricks You Need to Know Before You Buy a Car. (2014, November 21). Retrieved from https://smartasset.com/personal-finance/4-car-dealer-tricks-you-need-to-know-before-you-buy-a-car-3
[3] Scrooge McDuck and Money. (n.d.). Retrieved February 10, 2015, from https://www.youtube.com/watch?v=bEmjiCoZ6e4
[4] Auto Loan Rates & Current Car Loan Rates at Bank of America. (n.d.). Retrieved February 8, 2015, from https://www.bankofamerica.com/auto-loans/auto-loan-rates.go
[5] Adobe Creative Cloud. (n.d.). Retrieved February 8, 2015, from https://creative.adobe.com/plans?single_app=photoshop?store_code=ca
[6] Choose your Office. (n.d.). Retrieved February 8, 2015, from https://products.office.com/en-us/compare-microsoft-office-products
[7] Evernote. (n.d.). Retrieved February 8, 2015, from https://evernote.com/premium/
[8] Dropbox - Upgrade to Dropbox Pro. (n.d.). Retrieved February 8, 2015, from https://www.dropbox.com/upgrade
[9] Watch TV shows & movies anytime, anywhere. Plans from $7.99 a month. (n.d.). Retrieved February 8, 2015, from https://www.netflix.com/us/
[10] Premium. (n.d.). Retrieved February 8, 2015, from https://www.spotify.com/ca-en/premium/
[11] Next Issue Canada | Unlimited Access to Over 100 Top Magazines. (n.d.). Retrieved February 8, 2015, from https://www.nextissue.ca/en/
[12] BATL - The Home of Axe Throwing. (n.d.). Retrieved February 8, 2015, from http://www.batl.ca/

There was a time in the automotive business where cash was “king”, but that kingdom has long been overthrown. Back in the late 1970s and most of the 1980s, interest rates were at an all-time high[1] and lenders were staggeringly more stringent on approving loans. What that meant for the automobile industry was, if you walked into the showroom looking for a monthly payment there was a legitimate chance you were not going to get approved. If, however, you came in with cash, the only roadblock was… well, in that time there were no roadblocks. You were going home with a car whether you wanted to or not! :P

Today, the scenario is quite the opposite: 0% financing is commonly stretched to 96 months and beyond, and if you can fog a mirror, chances are someone will finance you. More importantly, this means paying cash is no longer desirable to a dealership. Unfortunately, someone forgot to explain this to the general population, causing a major disconnect during the negotiation process.

Many customers still believe paying cash is the best way to negotiate to the lowest price. At least once a day I will see a lead saying something to the tune of, “Give me your best offer and I will pay cash!” The customer assumes I’m running to drop my pants, when in fact I’m pouring another strong shot of whiskey lamenting in frustration. I kid – actually, if I have the opportunity to speak with a “cash only” customer one-on-one, it is one of the easiest closes in the book, and here is why/how.

In addition to the customer believing offering cash will get them the biggest discount, they also believe that monthly payments are inherently evil. That we, as dealers, play the numbers like a game of three-card shuffle and steal their wallets from their pockets. Searching for “How to Negotiate a Car Payment” will bring up countless examples of how the customer should ONLY negotiate with cash:

Dealer Trick #1: Negotiating on Monthly Payments

When the salesperson starts talking about monthly payments, watch out.

Clever salespeople want you to focus only on low monthly payments because it gives them room to inflate other variables, such as the loan interest and length. This increases the dealer’s profit — while you spend thousands more on the car overall.[2]

If it’s online, then it must be true, right?

It is no secret that negotiating via monthly payments can make for a smoother process and allows for more flexibility on offering back-end products. However, it also has benefits for the consumer that are often forgotten.

For example, ask a cash-only customer where they are actually getting the cash from. Unless they have a vault full of gold coins like Scrooge McDuck[3], likely they are borrowing the money from the bank. As of today, Bank of America is offering auto loans as low as 2.34 percent[4].

“And why would you want to pay 2.34 percent when we are offering zero percent financing, Mr./Mrs. Customer?”

This isn't a surprise to us in the auto industry; we handle cash customers all the time. We are well versed in the benefits of leasing, GAP insurance, only paying for what you use, etc., etc. Yet these are not the best tactics when dealing with a cash-only customer. The close I use is right under your nose, and it may surprise you.

I didn’t notice it at first either. It wasn’t until I needed an upgraded version of the Adobe Creative Suite when it hit me. If you are not familiar with it, Adobe makes a line of design software that is used in advertising, web development, etc. It’s not cheap, either: just ordering Photoshop alone used to set you back upwards of $1,000. When I went to order the latest version, there was no option to “buy” the software, you can now only rent it with a monthly plan. What was normally a one-time fixed expense is now a monthly payment of $29/month[5].

It’s not just Adobe that has switched to the software plan platform. I also pay Microsoft $9.99/month for Microsoft Office[6], $5/month for Evernote[7], $9.99/month for Dropbox Pro[8] and $5/Month for my SurfEasy VPN.

Under the cover of darkness the software industry has switched platforms from one-time expenses to a monthly payment system. In a way, it makes sense: buying a subscription allows you to always have the latest upgrades and content. Additionally, it’s a lot easier to swallow a monthly payment than a gigantic lump sum, increasing the conversion ratio for large programs. However, it’s not just the software industry that has gone this route; media has as well.

Remember when you bought movies? Unless you are hitting the DVD discount bin at your local Walmart, it’s actually quite difficult to purchase a movie these days. Instead, the most common platform is a subscription service like Netflix. Instead of paying $25 for a single movie, you can get access to thousands of movies and television shows for $7.95/month[9]. Or, if you want something seemingly more tangible, you can buy permanent access to media through iTunes or the Google Play store. However, in none of these scenarios are you actually purchasing a product – you are only paying for the access to the product. At any time, the media you purchased access to could disappear.

Music is no different; the days of buying the latest album from your favorite artist are gone. If you tasked me with purchasing a CD today from a store, I don’t know where I would even begin to shop. I do know that I can buy access via iTunes, or I can subscribe to an online streaming service like Spotify for $9.99/month[10]. Same goes for books and magazines – you are only buying the access to the content and not the actual content. For only $9.99/month[11] you can access all the magazines you want with your phone or tablet, and books are easily downloaded to your e-reader. It certainly is saving a lot of trees, but isn’t it interesting that entire industries have moved to a leasing-only platform and everyone seems to be cool with it? Yet, when you offer monthly payments to a customer purchasing an automobile, they suddenly reject the idea.

See where I am going with this? Right under our noses, every other industry switched to a monthly payment platform and we all have blindly followed like a horde of zombies. Let’s look at some other examples:

• How did you pay for your cellphone? Did it come packaged in your monthly plan?
• What about Internet, is that paid monthly as well?
• Do you still have a cable bill? Monthly, right?
• Home insurance, auto insurance, life insurance, pet insurance – obviously monthly?
• Taxes – monthly or semi-monthly?
• Mortgage is monthly?
• Costco member? Have you tried that new kale mix salad? That stuff is heavenly. Yeah, it’s yearly, but I hear they are planning to re-brand to monthly.
• Video games? Which, Xbox or PlayStation? Yeah, now PlayStation has a monthly online fee too.
• Gym membership? Yeah, I should probably use mine more as well. Monthly, right?
• Electric bill, gas bill, water bill – monthly, monthly and monthly?
• Retirement contribution? I know, it stings now but it’s necessary, right? Monthly?
• Got little ones? Day care, how did it get so expensive? Monthly?
• Do you support any charities? Did they hook you on the monthly contribution?
• Credit card payment is due monthly, obviously? I know, this past January I nearly fainted when I saw mine.
• Any social clubs? I myself am thinking of joining an axe-throwing league. It’s only a couple of bucks monthly. Yes, axe throwing, you should try it.[12]

“So Mr./Mrs. Customer, it seems that most of your expenses are in a monthly payment format. It appears this is your preferred method of payment. Therefore it would make the most sense to also pay for your vehicle needs in the same way, correct?”

The media and software industries have done the automotive industry an insurmountable favour. They have succeeded in transforming the North American consumer into a monthly payment junkie. Additionally, seemingly without the consumer’s knowledge, they have also transitioned them from a purchaser to a leaser overnight. All we in the auto industry need to do with a cash-only customer is remind them their entire life is now lived by leasing everything with a monthly payment.

Here is a sample of how the process works:

“But I want to OWN my car, I don’t want to pay to use it,” said Mr./Mrs. Customer.

“Not a problem, but may I ask, you have a Netflix account, correct?” asked the salesperson.

“Yes I do.”

“As do I. May I ask, how much would it cost to buy physical copies of all the movies and televisions shows you watch on Netflix?”

“Why, it would cost an awful lot,” replied the customer.

“So you would agree, paying a monthly fee for the use of these movies and shows is a better option, even though you don’t OWN them, correct?”

“Well, I guess,” replied the customer.

“And, back in the day when you did buy CDs and DVDs, how much did you spend on your collection?”

The customer looks up, and thinks for a few moments.

“A lot.”

“And, may I ask, where is that collection now?”

The wheels begin to turn in the customer’s head. 

“I gave most to Goodwill, and some are in a box in the basement,” replied the customer. They frown. Look down. Fumble with their hands.

“So that wasn't the best… investment, was it?”

“I guess not.”

“And, back in the 2000s, if Netflix existed, you probably would have used it instead of buying all those movies and shows, right?”

“Probably. Yeah.”

“Leasing a vehicle is no different, Mr./Mrs. Customer, there is just more money involved. Can I ask you another question?”

“Sure,” replied the customer.

“What happened if one of those CDs or DVDs got scratched? Would the value go down?”

“Of course.”

“And you would be at a financial loss. Same goes if you purchase a vehicle and, God forbid, it gets into a fender bender. Even if someone dings it in the parking lot while you are shopping, you lose money on the re-sale. With leasing, providing you opt-in for GAP insurance, you wouldn’t find yourself at a financial loss when the vehicle value diminishes after an accident.  Providing you have adequate insurance, of course.”

“Really?”

“Yes, really. So Mr./Mrs. Customer, since you already are well invested in monthly payment services like Netflix, let’s look at how a lease can also easily fit into your monthly budget.”

To get technical, why this works so well is that you are using their own lifestyle against them. It is very difficult to discredit something when so much of your life is already involved in it. People are naturally influenced to continue with what they have already committed to. Since they are already committed to so many monthly subscriptions and payments already, the transition from paying cash for a vehicle to paying monthly makes all the sense in the world.

Think about it yourself. How much of your life is paid for in monthly lease agreements? You may surprise yourself.

[1] United States Average Monthly Prime Lending Rate | 1950-2015 | Data | Chart. (n.d.). Retrieved from http://www.tradingeconomics.com/united-states/bank-lending-rate
[2] 4 Car Dealer Tricks You Need to Know Before You Buy a Car. (2014, November 21). Retrieved from https://smartasset.com/personal-finance/4-car-dealer-tricks-you-need-to-know-before-you-buy-a-car-3
[3] Scrooge McDuck and Money. (n.d.). Retrieved February 10, 2015, from https://www.youtube.com/watch?v=bEmjiCoZ6e4
[4] Auto Loan Rates & Current Car Loan Rates at Bank of America. (n.d.). Retrieved February 8, 2015, from https://www.bankofamerica.com/auto-loans/auto-loan-rates.go
[5] Adobe Creative Cloud. (n.d.). Retrieved February 8, 2015, from https://creative.adobe.com/plans?single_app=photoshop?store_code=ca
[6] Choose your Office. (n.d.). Retrieved February 8, 2015, from https://products.office.com/en-us/compare-microsoft-office-products
[7] Evernote. (n.d.). Retrieved February 8, 2015, from https://evernote.com/premium/
[8] Dropbox - Upgrade to Dropbox Pro. (n.d.). Retrieved February 8, 2015, from https://www.dropbox.com/upgrade
[9] Watch TV shows & movies anytime, anywhere. Plans from $7.99 a month. (n.d.). Retrieved February 8, 2015, from https://www.netflix.com/us/
[10] Premium. (n.d.). Retrieved February 8, 2015, from https://www.spotify.com/ca-en/premium/
[11] Next Issue Canada | Unlimited Access to Over 100 Top Magazines. (n.d.). Retrieved February 8, 2015, from https://www.nextissue.ca/en/
[12] BATL - The Home of Axe Throwing. (n.d.). Retrieved February 8, 2015, from http://www.batl.ca/

I just returned back from a trip to an all-inclusive resort in Ocho Rios, Jamaica where it rained for the entire duration of the trip. When I say rain, I don’t mean a little drizzle. It was an unrelenting monsoon. I took a video from my balcony to document just how bad it was:  

As much as the rain dampened the trip (pun intended), it also offered some very interesting observations on customer service.

The rain began as we approached the resort and continued throughout the first night and into the following day. The weather report for days 3-7 called for sun, so it appeared that it would prove a mere inconvenience. Unfortunately, Day 2 revealed more rain.  Day 3, again, more rain.  Day 4, more rain—and this was when things really started to fall apart. The ceiling inside our room began to collapse, and the TV got an unexpected shower. The resort was beginning to flood; multiple sections became unusable, and the staff was attempting to use beach towels as sandbags. The plaster ceilings everywhere were coming down in chunks, including in the rooms, dining areas, and lobby. Water was flowing freely into wind-facing rooms. All excursions were cancelled, and all guests were confined either to their rooms or the one indoor bar. Day 5, inconceivably, more rain. They were evacuating neighboring towns, the medical centre was shut down due to flooding, and local residents were marooned in certain areas. It was a nightmare.

You can imagine this would have been an extremely trying situation for the resort staff. Keep in mind that they had to deal with the rain as well. Imagine working a twelve-hour day dealing with depressed and angry guests at a resort that is literally falling apart, and you get to celebrate all this by walking home in the rain on a dirt road. Only to walk back to work in the rain a few hours later.

Yet, despite all of this, every single resort employee had a smile on their face as wide as the coastline.  Every employee said “hello” or “yeah mon” to you as you walked by, and then asked how you were doing and made an honest attempt to brighten your day. It was near impossible to speak with a member of the staff, and not have your rainy frown turned upside down. It was a miraculous thing to experience.

The attitudes of the staff single-handedly took a nightmarish situation and made it pleasant under some of the worst vacation circumstances possible. I made a point to speak to them personally and thank them for all their hard work during this trying situation.  It was during these conversations that the gravity of their efforts truly came to light.

After thanking a member of the staff, I would say, “This must be really hard for you, with the rain and the guests and all.” Each reaction was the same; they all for a brief moment released the façade, and their true self came out. Some would sigh, others would show a quivering smile, and some even appeared to be holding back tears.  But just as quickly as it began, you could watch their surprise at their own reaction, and they would quickly revert back into “happy resort employee mode.”

These humanizing moments allowed me to see what the true driving force of their superb customer service was. It’s not “just for the tips” as many may assume, rather it is pride that fuels their passion for creating the ultimate customer experience.

Imagine how my vacation experience would have differed if half of the staff succumbed to the depressing rain and only focused on their immediate tasks.  In fact, if even a handful of resort staff grimaced instead of smiling it would have had a compounding effect on my experience.  Even one negative experience can spoil a platoon of positive experiences, especially during a monsoon.

It was the efforts of the entire staff as a whole that created the All-Inclusive Experience.  If every resort staff member did everything they could to enhance the customer’s experience, they would all equally benefit. Even if you factored “tips” into the equation, if everyone provided exemplary service equally, the monetary payback would work itself out in the wash.

Now, I am aware that the concept of “providing the best customer experience” in your dealership is by no means a new one, but what I am suggesting is changing the context of that message. Often, we forget that we live in the automotive bubble and that the more we learn to separate our perspective the better we can adapt, improve, and adjust to changing market conditions and ideas. I suggest, instead of preaching the concepts such as, “smile and greet every customer,” “acknowledge everyone within 10 feet of you,” or one of the many broad descriptions such as “creating excellent experiences.” Think of how you, as an individual and as a leader, build a culture of providing an all-inclusive vacation type experience at your dealership.

Start by imagining if you could buy a vehicle while vacationing at an all-inclusive resort. What would that experience be like? [Tweet This] Imagine that scenario, and then compare it to the process in your store; does it stand up?

Does everyone on your staff take a moment to speak with every customer they walk by? Do they ask if they are having a great day? If there were an unmitigated weather disaster, would your staff maintain the same demeanor?

Or if you really want to get creative, hold your store accountable to the same level of scrutiny of a Trip Advisor review.

• What is the quality of food / coffee at your store?
• Are your bathrooms immaculately clean?
• Can a customer get their shoes shined?
• Are there noticeable scuffs, dents or dings on the walls?
• What is the quality of the waiting room entertainment?
• How attentive are your staff?
• How fast is the Wi-Fi connection? Is it easy to access?
• What is the ambiance of the waiting area? Volume level? Pleasing scent? Décor?
• Is the showroom easy to navigate?

Customer experience doesn't limit you to being compared to other dealerships; it compares you to every experience a customer has. You aren't just competing with the dealer down the road; you are competing with the coffee shop, grocery store, doctor’s office, and all-inclusive resort. Why, just the other day, the woman at the McDonalds drive-thru window addressed me by name when returning my credit card, “Thank you Mr. Karbaum. Here is your coffee. Have a great day!” My mind was blown. I briefly considered tipping her as the window shut. Later that evening the pizza delivery man did the same thing. Upon opening the door, he greeted me by name; after all it was on the receipt. He proceeded to open the box in my doorway to ensure the order was correct, a product presentation of the pizza that I ordered.

Every industry is stepping up their customer experience game, and we especially in the automotive industry must do the same.  The next time you walk into your store, imagine you were walking into an all-inclusive resort and judge accordingly.  Heck, walk in wearing flip-flops and a bathing suit if you really want to create the total experience—and surely alarm your fellow staff members—but use this opportunity to transform your relationship with your customers.

Have some other tips to share? How does your store do things differently to excel in Customer Experience? 

Share in the comments below!

I just returned back from a trip to an all-inclusive resort in Ocho Rios, Jamaica where it rained for the entire duration of the trip. When I say rain, I don’t mean a little drizzle. It was an unrelenting monsoon. I took a video from my balcony to document just how bad it was:  

As much as the rain dampened the trip (pun intended), it also offered some very interesting observations on customer service.

The rain began as we approached the resort and continued throughout the first night and into the following day. The weather report for days 3-7 called for sun, so it appeared that it would prove a mere inconvenience. Unfortunately, Day 2 revealed more rain.  Day 3, again, more rain.  Day 4, more rain—and this was when things really started to fall apart. The ceiling inside our room began to collapse, and the TV got an unexpected shower. The resort was beginning to flood; multiple sections became unusable, and the staff was attempting to use beach towels as sandbags. The plaster ceilings everywhere were coming down in chunks, including in the rooms, dining areas, and lobby. Water was flowing freely into wind-facing rooms. All excursions were cancelled, and all guests were confined either to their rooms or the one indoor bar. Day 5, inconceivably, more rain. They were evacuating neighboring towns, the medical centre was shut down due to flooding, and local residents were marooned in certain areas. It was a nightmare.

You can imagine this would have been an extremely trying situation for the resort staff. Keep in mind that they had to deal with the rain as well. Imagine working a twelve-hour day dealing with depressed and angry guests at a resort that is literally falling apart, and you get to celebrate all this by walking home in the rain on a dirt road. Only to walk back to work in the rain a few hours later.

Yet, despite all of this, every single resort employee had a smile on their face as wide as the coastline.  Every employee said “hello” or “yeah mon” to you as you walked by, and then asked how you were doing and made an honest attempt to brighten your day. It was near impossible to speak with a member of the staff, and not have your rainy frown turned upside down. It was a miraculous thing to experience.

The attitudes of the staff single-handedly took a nightmarish situation and made it pleasant under some of the worst vacation circumstances possible. I made a point to speak to them personally and thank them for all their hard work during this trying situation.  It was during these conversations that the gravity of their efforts truly came to light.

After thanking a member of the staff, I would say, “This must be really hard for you, with the rain and the guests and all.” Each reaction was the same; they all for a brief moment released the façade, and their true self came out. Some would sigh, others would show a quivering smile, and some even appeared to be holding back tears.  But just as quickly as it began, you could watch their surprise at their own reaction, and they would quickly revert back into “happy resort employee mode.”

These humanizing moments allowed me to see what the true driving force of their superb customer service was. It’s not “just for the tips” as many may assume, rather it is pride that fuels their passion for creating the ultimate customer experience.

Imagine how my vacation experience would have differed if half of the staff succumbed to the depressing rain and only focused on their immediate tasks.  In fact, if even a handful of resort staff grimaced instead of smiling it would have had a compounding effect on my experience.  Even one negative experience can spoil a platoon of positive experiences, especially during a monsoon.

It was the efforts of the entire staff as a whole that created the All-Inclusive Experience.  If every resort staff member did everything they could to enhance the customer’s experience, they would all equally benefit. Even if you factored “tips” into the equation, if everyone provided exemplary service equally, the monetary payback would work itself out in the wash.

Now, I am aware that the concept of “providing the best customer experience” in your dealership is by no means a new one, but what I am suggesting is changing the context of that message. Often, we forget that we live in the automotive bubble and that the more we learn to separate our perspective the better we can adapt, improve, and adjust to changing market conditions and ideas. I suggest, instead of preaching the concepts such as, “smile and greet every customer,” “acknowledge everyone within 10 feet of you,” or one of the many broad descriptions such as “creating excellent experiences.” Think of how you, as an individual and as a leader, build a culture of providing an all-inclusive vacation type experience at your dealership.

Start by imagining if you could buy a vehicle while vacationing at an all-inclusive resort. What would that experience be like? [Tweet This] Imagine that scenario, and then compare it to the process in your store; does it stand up?

Does everyone on your staff take a moment to speak with every customer they walk by? Do they ask if they are having a great day? If there were an unmitigated weather disaster, would your staff maintain the same demeanor?

Or if you really want to get creative, hold your store accountable to the same level of scrutiny of a Trip Advisor review.

• What is the quality of food / coffee at your store?
• Are your bathrooms immaculately clean?
• Can a customer get their shoes shined?
• Are there noticeable scuffs, dents or dings on the walls?
• What is the quality of the waiting room entertainment?
• How attentive are your staff?
• How fast is the Wi-Fi connection? Is it easy to access?
• What is the ambiance of the waiting area? Volume level? Pleasing scent? Décor?
• Is the showroom easy to navigate?

Customer experience doesn't limit you to being compared to other dealerships; it compares you to every experience a customer has. You aren't just competing with the dealer down the road; you are competing with the coffee shop, grocery store, doctor’s office, and all-inclusive resort. Why, just the other day, the woman at the McDonalds drive-thru window addressed me by name when returning my credit card, “Thank you Mr. Karbaum. Here is your coffee. Have a great day!” My mind was blown. I briefly considered tipping her as the window shut. Later that evening the pizza delivery man did the same thing. Upon opening the door, he greeted me by name; after all it was on the receipt. He proceeded to open the box in my doorway to ensure the order was correct, a product presentation of the pizza that I ordered.

Every industry is stepping up their customer experience game, and we especially in the automotive industry must do the same.  The next time you walk into your store, imagine you were walking into an all-inclusive resort and judge accordingly.  Heck, walk in wearing flip-flops and a bathing suit if you really want to create the total experience—and surely alarm your fellow staff members—but use this opportunity to transform your relationship with your customers.

Have some other tips to share? How does your store do things differently to excel in Customer Experience? 

Share in the comments below!

Content is king, and there is nothing more regal than video content.  Problem is, great video content takes time and resources.  After all, we are not ad agencies; we are dealers and sometimes it is difficult to see past the month's sales target. So, to make creating great video content a little easier I put together a list of ideas for video content that you can use today.  So grab your phones and your cameras and get going!  

New Vehicle Features

It seems that every new model off the line has a plethora of new features that never existed before. For example, the 2015 Lexus NX that launches this fall in North America comes with:

• Wireless Charging Tray
• Full Color Heads-Up Display
• New Remote Touch Interface with Touchpad
• G Meter and Turbo Boost Gauge
• Active Sound Control

These features are brand new, and it’s guaranteed that customers who purchase the all-new 2015 Lexus NX will be searching for how to operate these features. No matter what the manufacturer, there is always a new stream of tech updates that you can create walk-around and how-to videos about.  [Tweet This]

Child Seats

Often a new bundle of joy requires a new vehicle, and most new parents have never installed a car seat. Creating a video on how to safely install and remove a car seat in each of your available models will be a great resource to your customers.  

Emergency Service Questions

If the average person is in an emergency situation such as getting a flat tire or an overheated engine, the first place they will look for information is on their mobile device. Creating a video series surrounding roadside emergencies can provide much-needed assistance to customers when they need it the most. With the proper branding, you can encourage customers to come to you even when they aren’t stuck on the side of the road. Here are some examples:

• How to change a flat tire?
• How to boost a vehicle with a dead battery?
• What does smoke under the hood mean?
• My car won’t start, what do I do?
• What does a warning light on the dash mean?

Second Opinion Service Questions

When a customer walks away from a service advisor, likely they will look for a second opinion before agreeing to the work. Then, when they refuse critical work and something goes wrong, we aren’t allowed to say, “I told you so.” Creating a suite of videos to alleviate their suspicions and bolster confidence in your services can increase your average customer pay. Here are some examples:

• Why do I need an alignment service?
• Is a new air filter a waste of money?
• Why do I need to change my oil so often?
• Do I need to rotate my tires?
• Can I use all-season tires in the winter?

PDI / Admin

Most dealerships charge some form of administration or pre-delivery Inspection fees, and most customers either do not know what they are for, or believe they are scams. Creating a video series of what these services include can easily overcome their objections during the negotiation process.  

Rewards Programs

Many dealership rewards programs are undervalued simply because they are not marketed correctly. Often there are too many benefits that are all crammed into a tiny pamphlet, and customers get lost attempting to read it. Why not create a video series on all the benefits of your rewards program, so you can adequately represent its value? If you partner with local businesses, this is also a great way to cross-promote your marketing efforts. A terrific example of this concept is MGM Resorts International’s M life TV showcasing their M life rewards program. M life TV includes countless videos both available online and in-room that reveal all that the M life Rewards Program has to offer. I have found myself watching the channel for hours in my hotel room learning about things to see and do in Las Vegas.

Tires

One of the biggest retention tools in our business is tires, but tires are also one of the hardest items to sell. A lot of this is a result of customer misinformation about how important tires really are. Creating a video series that details the importance of tires can increase your tire sales and your long-term customer retention. [Tweet This] Here are some examples:

• Do I need winter tires?
• What is the difference between Winter and Summer Tires?
• What are performance tires?
• Can I buy used tires?
• Should I store my tires at the dealership?

Certified Pre-Owned Programs

Telling a customer that you offer a 151/201/259 point inspection is good, but showing them a video of all the inspection points is phenomenal. Imagine the value you can build in your certified program with a video series showing how much thought and care is put into every certified pre-owned vehicle on your lot. It’s a lofty goal, but once completed, you can use it for years to come.  

Vehicle Walk-Around’s

This is not a new concept, but few dealers see the value in these videos. If you make a point of creating a 15-20 minute walk-around video for each model every year, you will have soon have an entire library of fantastic content. What is even more valuable is that years later, you can use ALL of these videos to showcase your pre-owned inventory. If you are part of an automotive group with multiple manufacturers, you can share this pre-owned vehicle content across all of your divisions. Many birds with one stone.  

Salesperson Profiles

People buy from people they like, know and trust.  What better way to expedite the process by having a video series that showcases all your salespeople and why a customer should buy from them.  Including personal details about their likes, interests, and passions makes them more approachable, and more trustworthy. These videos are great for a website, but even better for customer follow-up.  Suddenly a customer isn’t being contacted by a salesperson, they are being contacted by Jerry who likes long walks on the beach, small animals and volunteers at a homeless shelter on weekends.  

Get Creative

Overall you need your video content to stand out. If it doesn’t turn heads, it won’t translate into views. There are some rock stars already doing this; Elise Kephart is a fantastic example of keeping things fresh, fun and informative. Even Justin Timberlake says so:  

​

What ideas have I missed? What has worked well for you? Share your ideas in the comments!

Robert Karbaum arguably has the best name in the automotive industry. His combined experience over the past decade in E-Commerce and the automotive industry has allowed him to master the art of “AutoSpeak”; the ancient language that bridges the gap between internet geeks, the showroom floor and everything in-between. He manages the E-Commerce, Social and Digital Marketing operations at Weins Canada Inc. (formerly Don Valley North Automotive Group); a prestigious automotive group in Canada which includes the #1 volume Toyota and Lexus dealerships in the country. 

Catch him on Twitter (@karbaum) or DroppinBaums.com.

Content is king, and there is nothing more regal than video content.  Problem is, great video content takes time and resources.  After all, we are not ad agencies; we are dealers and sometimes it is difficult to see past the month's sales target. So, to make creating great video content a little easier I put together a list of ideas for video content that you can use today.  So grab your phones and your cameras and get going!  

New Vehicle Features

It seems that every new model off the line has a plethora of new features that never existed before. For example, the 2015 Lexus NX that launches this fall in North America comes with:

• Wireless Charging Tray
• Full Color Heads-Up Display
• New Remote Touch Interface with Touchpad
• G Meter and Turbo Boost Gauge
• Active Sound Control

These features are brand new, and it’s guaranteed that customers who purchase the all-new 2015 Lexus NX will be searching for how to operate these features. No matter what the manufacturer, there is always a new stream of tech updates that you can create walk-around and how-to videos about.  [Tweet This]

Child Seats

Often a new bundle of joy requires a new vehicle, and most new parents have never installed a car seat. Creating a video on how to safely install and remove a car seat in each of your available models will be a great resource to your customers.  

Emergency Service Questions

If the average person is in an emergency situation such as getting a flat tire or an overheated engine, the first place they will look for information is on their mobile device. Creating a video series surrounding roadside emergencies can provide much-needed assistance to customers when they need it the most. With the proper branding, you can encourage customers to come to you even when they aren’t stuck on the side of the road. Here are some examples:

• How to change a flat tire?
• How to boost a vehicle with a dead battery?
• What does smoke under the hood mean?
• My car won’t start, what do I do?
• What does a warning light on the dash mean?

Second Opinion Service Questions

When a customer walks away from a service advisor, likely they will look for a second opinion before agreeing to the work. Then, when they refuse critical work and something goes wrong, we aren’t allowed to say, “I told you so.” Creating a suite of videos to alleviate their suspicions and bolster confidence in your services can increase your average customer pay. Here are some examples:

• Why do I need an alignment service?
• Is a new air filter a waste of money?
• Why do I need to change my oil so often?
• Do I need to rotate my tires?
• Can I use all-season tires in the winter?

PDI / Admin

Most dealerships charge some form of administration or pre-delivery Inspection fees, and most customers either do not know what they are for, or believe they are scams. Creating a video series of what these services include can easily overcome their objections during the negotiation process.  

Rewards Programs

Many dealership rewards programs are undervalued simply because they are not marketed correctly. Often there are too many benefits that are all crammed into a tiny pamphlet, and customers get lost attempting to read it. Why not create a video series on all the benefits of your rewards program, so you can adequately represent its value? If you partner with local businesses, this is also a great way to cross-promote your marketing efforts. A terrific example of this concept is MGM Resorts International’s M life TV showcasing their M life rewards program. M life TV includes countless videos both available online and in-room that reveal all that the M life Rewards Program has to offer. I have found myself watching the channel for hours in my hotel room learning about things to see and do in Las Vegas.

Tires

One of the biggest retention tools in our business is tires, but tires are also one of the hardest items to sell. A lot of this is a result of customer misinformation about how important tires really are. Creating a video series that details the importance of tires can increase your tire sales and your long-term customer retention. [Tweet This] Here are some examples:

• Do I need winter tires?
• What is the difference between Winter and Summer Tires?
• What are performance tires?
• Can I buy used tires?
• Should I store my tires at the dealership?

Certified Pre-Owned Programs

Telling a customer that you offer a 151/201/259 point inspection is good, but showing them a video of all the inspection points is phenomenal. Imagine the value you can build in your certified program with a video series showing how much thought and care is put into every certified pre-owned vehicle on your lot. It’s a lofty goal, but once completed, you can use it for years to come.  

Vehicle Walk-Around’s

This is not a new concept, but few dealers see the value in these videos. If you make a point of creating a 15-20 minute walk-around video for each model every year, you will have soon have an entire library of fantastic content. What is even more valuable is that years later, you can use ALL of these videos to showcase your pre-owned inventory. If you are part of an automotive group with multiple manufacturers, you can share this pre-owned vehicle content across all of your divisions. Many birds with one stone.  

Salesperson Profiles

People buy from people they like, know and trust.  What better way to expedite the process by having a video series that showcases all your salespeople and why a customer should buy from them.  Including personal details about their likes, interests, and passions makes them more approachable, and more trustworthy. These videos are great for a website, but even better for customer follow-up.  Suddenly a customer isn’t being contacted by a salesperson, they are being contacted by Jerry who likes long walks on the beach, small animals and volunteers at a homeless shelter on weekends.  

Get Creative

Overall you need your video content to stand out. If it doesn’t turn heads, it won’t translate into views. There are some rock stars already doing this; Elise Kephart is a fantastic example of keeping things fresh, fun and informative. Even Justin Timberlake says so:  

​

What ideas have I missed? What has worked well for you? Share your ideas in the comments!

Robert Karbaum arguably has the best name in the automotive industry. His combined experience over the past decade in E-Commerce and the automotive industry has allowed him to master the art of “AutoSpeak”; the ancient language that bridges the gap between internet geeks, the showroom floor and everything in-between. He manages the E-Commerce, Social and Digital Marketing operations at Weins Canada Inc. (formerly Don Valley North Automotive Group); a prestigious automotive group in Canada which includes the #1 volume Toyota and Lexus dealerships in the country. 

Catch him on Twitter (@karbaum) or DroppinBaums.com.

Keeping up-to-date with changes to Google’s business platform is a full-time occupation. Every time you turn around, Google has either radically updated or completely changed their services. Just in the last short while we have gone through Google Places, Google+, Google+ Local and now Google My Business. Each step along the way, things got more confusing, as both Google Places and Google+ operated quasi-independently. However, with the launch of Google My Business, it appears they have finally fixed this (monumentally frustrating) problem and amalgamated everything into one system.

So as Google begins to market this product and buzz hits the Internet, I wanted to summarize why you should care (or not care) about the new updates and how they will (or won’t) affect your dealership.

For Veteran Users:

If you are a longtime Google Business/Places/+ Local user you will be overjoyed that you no longer have to manage two competing Business Services lists. And, that’s about it.

Existing veteran users will log in and say, “This is all the same. What am I missing?”

They would be right. Those already accustomed to trekking their way through the murky waters of Google+ Local will see basically the same thing. The ONLY difference I can discern is that it is easier to manage your online reviews. Previously, you had to sneak in through the back door to respond to your Google+ reviews. Now, they have moved the door to the front of the building with a big neon sign.

Should You Care?

Not really, other than knowing Google Places is now gone you may continue about your day and wait until Google changes this platform again. Call this a mulligan of sorts. 

For Basic Users:

If you have gotten to the point where you have registered your business with Google and maybe uploaded a photo or two, these changes will affect you more significantly.   

The new platform is a lot more user-friendly. Everything is split between six categories: My Business, Reviews, Business Insights, AdWords Express, Google+ and YouTube. Here is where to start.

First, if you haven’t already, claim your connected Google+, Google Analytics and YouTube accounts. These are intrinsically tied to your Google My Business profile and are crucially important towards your Organic Search Rankings.

My Business

The core of the system where you can update your business information including website, location, phone numbers, photos, categories, description and hours of operation. When you first jump in, you may want to comb through this to ensure all the information is correct. Having a customer show up at 7 a.m. after driving for 3 hours for a test drive appointment is a heatscore you want to avoid. Trust me, I’ve been down this road before :P.

Furthermore, what you enter into your My Business section will be spread across all accounts including AdWords. It will also affect how your business is viewed on Google.

Reviews

Google now has quick access into your Reviews Management, where you can not only view all the reviews posted about your dealership, but reply, flag and analyze your reviews. With its Review Analytics feature, at a glance you can see how many reviews your dealership has received from ALL review sources. That’s right, all of your Dealer Rater reviews now have made their way into Google’s algorithms. You can separate by source or time period, and as an added bonus, Google provides direct links to each and every review. 

Business Insights

Insights is comparable to a bolt-on air intake for your Google Analytics. It affects change on its own, but it is part of a larger system. The main purpose of Insights is to give you a snapshot of your Dealership’s Google+ Organic Performance.

Business Insights is split into three subsections:

• Visibility: Where you can see the number of views, clicks, and can then discern your conversion ratio.
• Engagement: Where you can see the Reach and Actions of your Google+ activity on an item-by-item basis.
• Audience: Where you can see the metrics of your Followers such as increase/decrease numbers, and demographics.

All of this information is great, if you have a very active Google+ profile. (Hint, you should have a very active Google+ profile.) The fact that Google is tracking your Google+ reach is an indication that they are watching, and expecting you to participate in their little “+game.”

AdWords Express

Part of the magic surrounding Google’s world dominance is how they encourage the average user to advertise on their network by educating them on how to do so. However, AdWords Express (previously Google Boost) was designed to make it infinitely easier for Google to take your money.  
Basically, you choose what site you want to promote, and how much you want to promote it for monthly and voila!

On the other side of the coin, Express also significantly limits the amount of data you can view as well, so you definitely get what you pay for. It’s akin to advertising in the local newspaper. It’s not a lot of effort, and you kind of know it’s working, but that’s about it.

Google+

If you are still new to Google+, you are beginning to fall behind the average. Most progressive dealers are at least aware, if not posting social updates and delivery photos on the regular.

Instead of rehashing the obvious, Mashable has a great article you can read: “The Beginner’s Guide to Google+”

For the basic Google+ user, as I mentioned above, part of the My Google Business platform is Google+ Insights. If you haven’t already, focus on expanding your Google+ connection network, and then work on delivering captivating content to those connections. It’s not as easy as it sounds, so here are a few tricks to get you started:

How to get quick Followers on Google+

• Search out and add other OEM-related dealerships, OEMs themselves, vendors and consultants to your circles. Most will add you back.
• Include links to “Follow” your Google+ profile on e-marketing and website content
• Reach out and add local businesses, and share as much content as you can. The savvy ones will happily do the same in return.
• Entrepreneur has a great article to dig a little deeper: “21 Simple Ways to Get More Followers for your Google+ Business Page”

YouTube

This is where things can get tricky. When Google chose to merge YouTube and Google+, there wasn't an easy way to keep an existing account and transfer it. In some cases (like mine) it was impossible. One of our dealer pages had over 250,000 views that had to be abandoned in order to link with Google+. We looked at every possible angle and eventually bit the bullet.

You may find that you have to do the same thing if you click through the YouTube link and it asks you to create a new account.

However, on the positive side, when everything is connected, your stats cross platforms and from the Google My Business dashboard you can see how everything is trending. Most importantly, the more you intertwine your business with Google, the more prominence you will receive within its search rankings. I've witnessed it firsthand each time I follow Google down its rabbit hole.

Should You Care?

Yes. Everything you need to do is more or less in one easy-to-use space, so there is no excuse not to get your dealership hooked up to the Google matrix. If you have any questions, please feel free to ask me, or just comment below!

For the Basic, BASIC Users:

If you are an owner, dealer principal, or general manager and you KNOW you are "deep in the weeds" on this one, do yourself a favour and hire an E-Comm manager/director.  Even if you are a tiny little store in Akron, Ohio, you will need someone in-house that understands all this "techy stuff". At the end of the day, bringing in a young tech "kid" and teaching him/her the "car game" will cost you monumentally less than handing over wads of cash to a third party time and time again.  Yes, vendors and consultants can be a valued assset but don't look to them to control your entire operation.  After all, would you have a vendor/consultant sell on your showroom floor? Or service your customer's vehicles in the shop?

Should You Care?

Yes. A thousand times, yes. The automotive industry is past the point of "changing" – it's changed, and will continue to change at a faster pace each day. If you are just jumping into the waters, you need to catch up real fast. Hook your fishing line to a killer whale and hold on tight. You'll be all right.

Do You, the Reader, Care?

What are your thoughts on the new Google My Business?

What did I miss?

What are you going to do next?

Let's get the comments going! 

Robert Karbaum arguably has the best name in the automotive industry. His combined experience over the past decade in E-Commerce and the automotive industry has allowed him to master the art of “AutoSpeak”; the ancient language that bridges the gap between internet geeks, the showroom floor and everything in-between. He manages the E-Commerce, Social and Digital Marketing operations at Weins Canada Inc. (formerly Don Valley North Automotive Group); a prestigious automotive group in Canada which includes the #1 volume Toyota and Lexus dealerships in the country. 

Catch him on Twitter (@karbaum) or DroppinBaums.com.

Keeping up-to-date with changes to Google’s business platform is a full-time occupation. Every time you turn around, Google has either radically updated or completely changed their services. Just in the last short while we have gone through Google Places, Google+, Google+ Local and now Google My Business. Each step along the way, things got more confusing, as both Google Places and Google+ operated quasi-independently. However, with the launch of Google My Business, it appears they have finally fixed this (monumentally frustrating) problem and amalgamated everything into one system.

So as Google begins to market this product and buzz hits the Internet, I wanted to summarize why you should care (or not care) about the new updates and how they will (or won’t) affect your dealership.

For Veteran Users:

If you are a longtime Google Business/Places/+ Local user you will be overjoyed that you no longer have to manage two competing Business Services lists. And, that’s about it.

Existing veteran users will log in and say, “This is all the same. What am I missing?”

They would be right. Those already accustomed to trekking their way through the murky waters of Google+ Local will see basically the same thing. The ONLY difference I can discern is that it is easier to manage your online reviews. Previously, you had to sneak in through the back door to respond to your Google+ reviews. Now, they have moved the door to the front of the building with a big neon sign.

Should You Care?

Not really, other than knowing Google Places is now gone you may continue about your day and wait until Google changes this platform again. Call this a mulligan of sorts. 

For Basic Users:

If you have gotten to the point where you have registered your business with Google and maybe uploaded a photo or two, these changes will affect you more significantly.   

The new platform is a lot more user-friendly. Everything is split between six categories: My Business, Reviews, Business Insights, AdWords Express, Google+ and YouTube. Here is where to start.

First, if you haven’t already, claim your connected Google+, Google Analytics and YouTube accounts. These are intrinsically tied to your Google My Business profile and are crucially important towards your Organic Search Rankings.

My Business

The core of the system where you can update your business information including website, location, phone numbers, photos, categories, description and hours of operation. When you first jump in, you may want to comb through this to ensure all the information is correct. Having a customer show up at 7 a.m. after driving for 3 hours for a test drive appointment is a heatscore you want to avoid. Trust me, I’ve been down this road before :P.

Furthermore, what you enter into your My Business section will be spread across all accounts including AdWords. It will also affect how your business is viewed on Google.

Reviews

Google now has quick access into your Reviews Management, where you can not only view all the reviews posted about your dealership, but reply, flag and analyze your reviews. With its Review Analytics feature, at a glance you can see how many reviews your dealership has received from ALL review sources. That’s right, all of your Dealer Rater reviews now have made their way into Google’s algorithms. You can separate by source or time period, and as an added bonus, Google provides direct links to each and every review. 

Business Insights

Insights is comparable to a bolt-on air intake for your Google Analytics. It affects change on its own, but it is part of a larger system. The main purpose of Insights is to give you a snapshot of your Dealership’s Google+ Organic Performance.

Business Insights is split into three subsections:

• Visibility: Where you can see the number of views, clicks, and can then discern your conversion ratio.
• Engagement: Where you can see the Reach and Actions of your Google+ activity on an item-by-item basis.
• Audience: Where you can see the metrics of your Followers such as increase/decrease numbers, and demographics.

All of this information is great, if you have a very active Google+ profile. (Hint, you should have a very active Google+ profile.) The fact that Google is tracking your Google+ reach is an indication that they are watching, and expecting you to participate in their little “+game.”

AdWords Express

Part of the magic surrounding Google’s world dominance is how they encourage the average user to advertise on their network by educating them on how to do so. However, AdWords Express (previously Google Boost) was designed to make it infinitely easier for Google to take your money.  
Basically, you choose what site you want to promote, and how much you want to promote it for monthly and voila!

On the other side of the coin, Express also significantly limits the amount of data you can view as well, so you definitely get what you pay for. It’s akin to advertising in the local newspaper. It’s not a lot of effort, and you kind of know it’s working, but that’s about it.

Google+

If you are still new to Google+, you are beginning to fall behind the average. Most progressive dealers are at least aware, if not posting social updates and delivery photos on the regular.

Instead of rehashing the obvious, Mashable has a great article you can read: “The Beginner’s Guide to Google+”

For the basic Google+ user, as I mentioned above, part of the My Google Business platform is Google+ Insights. If you haven’t already, focus on expanding your Google+ connection network, and then work on delivering captivating content to those connections. It’s not as easy as it sounds, so here are a few tricks to get you started:

How to get quick Followers on Google+

• Search out and add other OEM-related dealerships, OEMs themselves, vendors and consultants to your circles. Most will add you back.
• Include links to “Follow” your Google+ profile on e-marketing and website content
• Reach out and add local businesses, and share as much content as you can. The savvy ones will happily do the same in return.
• Entrepreneur has a great article to dig a little deeper: “21 Simple Ways to Get More Followers for your Google+ Business Page”

YouTube

This is where things can get tricky. When Google chose to merge YouTube and Google+, there wasn't an easy way to keep an existing account and transfer it. In some cases (like mine) it was impossible. One of our dealer pages had over 250,000 views that had to be abandoned in order to link with Google+. We looked at every possible angle and eventually bit the bullet.

You may find that you have to do the same thing if you click through the YouTube link and it asks you to create a new account.

However, on the positive side, when everything is connected, your stats cross platforms and from the Google My Business dashboard you can see how everything is trending. Most importantly, the more you intertwine your business with Google, the more prominence you will receive within its search rankings. I've witnessed it firsthand each time I follow Google down its rabbit hole.

Should You Care?

Yes. Everything you need to do is more or less in one easy-to-use space, so there is no excuse not to get your dealership hooked up to the Google matrix. If you have any questions, please feel free to ask me, or just comment below!

For the Basic, BASIC Users:

If you are an owner, dealer principal, or general manager and you KNOW you are "deep in the weeds" on this one, do yourself a favour and hire an E-Comm manager/director.  Even if you are a tiny little store in Akron, Ohio, you will need someone in-house that understands all this "techy stuff". At the end of the day, bringing in a young tech "kid" and teaching him/her the "car game" will cost you monumentally less than handing over wads of cash to a third party time and time again.  Yes, vendors and consultants can be a valued assset but don't look to them to control your entire operation.  After all, would you have a vendor/consultant sell on your showroom floor? Or service your customer's vehicles in the shop?

Should You Care?

Yes. A thousand times, yes. The automotive industry is past the point of "changing" – it's changed, and will continue to change at a faster pace each day. If you are just jumping into the waters, you need to catch up real fast. Hook your fishing line to a killer whale and hold on tight. You'll be all right.

Do You, the Reader, Care?

What are your thoughts on the new Google My Business?

What did I miss?

What are you going to do next?

Let's get the comments going! 

Robert Karbaum arguably has the best name in the automotive industry. His combined experience over the past decade in E-Commerce and the automotive industry has allowed him to master the art of “AutoSpeak”; the ancient language that bridges the gap between internet geeks, the showroom floor and everything in-between. He manages the E-Commerce, Social and Digital Marketing operations at Weins Canada Inc. (formerly Don Valley North Automotive Group); a prestigious automotive group in Canada which includes the #1 volume Toyota and Lexus dealerships in the country. 

Catch him on Twitter (@karbaum) or DroppinBaums.com.

LinkedIn is rapidly becoming the Facebook of the white-collar worker and you can benefit IF you use it to your advantage. When LinkedIn first began it was comparable to a large conference not serving alcohol; most people just stuck to themselves in the corner and handed out business cards under the table. The Consultants saw this opportunity and used it as a platform to share how “awesome” they were. LinkedIn fought back with groups, Celebrity Influencers, and Pulse to try and keep the content streamlined towards business. It worked, kind of.

Today, the majority of the content you find will either be:

• motivational quotes
• people liking each other’s new profile photo
• job postings
• the same news story shared by 15 percent of your list
• and of course the consultants, still showing off their awesomeness

However, this content makeup isn’t a bad thing; at least there are no baby photos yet! Even though the content is changing, the legitimacy of LinkedIn remains. This means, the more people who use it as their dominant social stream, the more you can do as a salesperson to turn it into your personal CRM.

Now, let me apologize to GMs, DPs and sales managers, as this information will likely go against everything you are trying to do. For the rest, here is why LinkedIn is the best sales CRM:

First Steps

If you don’t have a LinkedIn profile, wake up. Whatever hang-ups you have about being social online are irrelevant. As of May 1, 2014, there are over 300 million members on LinkedIn, 100 million in the US alone. Every second, two new members are added [i], putting you further behind the curve. Unless you’re a C-suite executive, sooner or later you will lose out for not participating if you haven’t already. 

Your Online Professional Profile

Trust is an essential component of the sales equation; customers are very hesitant to open their wallet when there is a feeling of uncertainty. Building trust also takes time – time you should be spending on building value in the product and your brand. Like with a referral, the ideal situation is to have a trustworthy persona established before you even meet a customer for the first time. One vital first step on your way to being trustworthy is to manage your reputation online. This isn’t just for businesses, but salespeople as well. Whenever I meet a new person the first thing I do is search for them online. Your customers are doing the same, whether you know it or not. Having zero presence is certainly not a positive thing; it puts you in the “faceless” category where all the “bad salespeople” exist. 

LinkedIn not only allows you to showcase your professional achievements, but it also acts as a perceived independent third-party advisory to your character. If you are open and honest online, it lends to the belief you are the same in real life, say in a negotiation situation, for example. Even without recommendations, endorsements or shared connections (more on that later), having a profile shows a customer you are accessible, accountable, and most importantly, trustworthy.

Once you have a profile up and running, during your meet-and-greet it should become habitual that you ask if you can connect with your customers on LinkedIn. Remember, over 100 million people in the US have LinkedIn, so roughly one of two people over the age of 18 have it. Best practice is to have the customer add your profile, so when you leave your office to check availability, the first thing they will do is stalk your profile and hopefully add you. Secondly, if they are busy looking you up, they won’t be price-shopping your competitors. :)

Third, it begins to build trust from a third-party source, fortifying the impression you have given off during the greeting process. If they don’t add you right away, you have another opportunity before the customer leaves, or when they purchase the vehicle. You may be surprised that a customer may be more willing to add you on LinkedIn than to give out their email address. The average person is more vain than you think; everyone wants to hit that 500+ followers mark.

The more customers you have in your wheelhouse, the more beneficial the other aspects of the LinkedIn CRM will be.

Recommendations

Online reviews are all the rage right now, and business rely on them more than ever. More often than not however, the reviews benefit the store more than they do the salesperson. Yes, services like Dealer Rater offer individual salesperson reviews, but what would happen if you ever switched jobs? Building your personal reputation on the back of a dealership is like building a house on an iceberg; it may seem sturdy now but if it ever melts you lose everything (more on that later).

Don’t get me wrong, reviews with the dealership are also essential for yourself as a salesperson, but don’t put all your eggs in one basket. Using LinkedIn’s Recommendations allows you to diversify your testimonial portfolio while increasing the trust level of your profile. Any recommendations you receive are connected to someone else’s profile, with a picture, i.e., a tangible, real-life person that was so thrilled with your performance they attached themselves to you. Reviews like this far outweigh anything written by a faceless “John S.” Most customers will believe LinkedIn recommendations more feverously than photocopied pages in a “Why buy here” book because there is accountability of a third-party source.    

Furthermore, recommendations solidify many of the other aspects of the LinkedIn CRM system; best practice is to ask for a LinkedIn Recommendation from every customer you sell a vehicle to. Wayne Gretzky said it best: “You miss 100 percent of the shots you don’t take.”

Keep Your Contacts

As I alluded to earlier, for a salesperson the number one issue with a dealership’s CRM is that if you were to ever leave, your contacts stay with the company. Your (hopefully) hundreds, if not thousands of customers are locked away while you get shipped off the island. 

Keeping a separate copy of your customers in your permanent possession allows you the freedom to travel, if you so wish. The days of the loyal customers following the salesperson are quickly fading away; it is up to the salesperson to maintain contact and not wait for the customer to come to you.

Referrals

The “Introduction” system built into LinkedIn was originally designed for those in the job search, but it is far more effective in generating your own referrals. The larger you grow your network, the more potential customers you are able to reach out to in the 6 Degrees of Kevin Bacon. For example, my connections put me within arm’s reach of over 10 million professionals on LinkedIn.

Now, if you have made an excellent connection with a customer, especially if they have written you a LinkedIn recommendation, they will have no problem bridging the connection. The end result is a potentially infinite wheelhouse of referrals at your fingertips. Can your dealership CRM do this for you?

Customer History + Keep In Touch

An integral part of any CRM is to keep track of communications with current and potential customers. LinkedIn provides the same functionality; for every connection you are able to keep notes on their Contact and Relationship, information all kept within your profile.

The system allows you to create notes, set reminders, create custom tags, note how you met, and most importantly, if you tie it into your other systems (i.e. Twitter, Facebook, Outlook, etc.), it will also keep a chronological history of all your interactions.

You can then view all of this information in an expanded view of all your connections within the Keep in Touch section where you can sort by Contact Info, Last Conversation, Tag, Company, Location, etc, etc. The possibilities are endless, and quite frankly has practically the same functionality as any dealership CRM out there.

As an example you could use “Keep in Touch” to sort by Last Conversation and reconnect with those whom you haven’t spoken to in the longest period. Or, as another example, you can sort by Company when you hear of a public acquisition, and target all the employees who likely have received a cash buyout. The ones you don’t have direct connections with, you can use Introductions to get them into your wheelhouse as well.

Updates

Several times a week I get an email from LinkedIn telling me who got a new job, or who is celebrating a work anniversary. It also updates me of who has new connections, and who has been looking at my profile. To the untrained eye, this information may seem trivial, but with the LinkedIn CRM you can use this information to sell more cars.

For example, when someone gets a shiny new promotion or job, what is one of the first things they do? Upgrade their vehicle! It’s very easy to congratulate them on their accomplishment, and soft sell them on your services. If you get a conversation started, you can also ask if anyone they know is looking for a vehicle. Prospecting has never been this easy!

Same goes for a work anniversary. If someone is celebrating their 20th year at Company X, or celebrating their 50th birthday, likely they are feeling the need for a “change.” What is a great way to spice up your life? That’s right, a new car!

The LinkedIn CRM does a fantastic job of notifying you of your contact’s big life changes, and allows you to step in and prospect new sales and new referrals. It’s almost criminal if you are not doing this already! :P

Build Your Personal Brand

Once you have accumulated a healthy contact base, built trust with recommendations and are prospecting regularly, the last piece of the LinkedIn CRM is to build your personal brand with content. Just as a good dealership does with their webpage, you can do the same with the LinkedIn CRM.

Whether you create the content yourself (ideal) or are sharing great content from DrivingSales, your gentle touch (shhhh…buy a car) is spreading itself across all your connections. Every time someone interacts with that content, it spreads to their connections (shhhh…buy a car). The more interactions, the more prominence it is given on the site (shhhh…buy a car). The more prominent content, the more your profile is advertised across your 10,000,000+ connections and sooner than later, you get a message saying, “Hey, I have some questions about buying a car. Billy said I should message you.” 

You could share news about the latest concept vehicle, or create a FAQ article about how to keep your car door locks from freezing. As long as you are sharing relevant, high-quality content, your reach will continue to grow. Again, yet another thing your dealer CRM can’t do for you.

Apologies

Again, to the DPs, GMs, and SMs, I apologize for sharing this information, but think of the positive. If your salespeople are prospecting customers and selling more vehicles, how much is there really to be worried about? At the end of the day, we all want the same thing: to sell more cars and make more money.  

Have you tried using LinkedIn as a CRM? What experiences have you had? Are you going to try it? Share your answers in the comments:

LinkedIn is rapidly becoming the Facebook of the white-collar worker and you can benefit IF you use it to your advantage. When LinkedIn first began it was comparable to a large conference not serving alcohol; most people just stuck to themselves in the corner and handed out business cards under the table. The Consultants saw this opportunity and used it as a platform to share how “awesome” they were. LinkedIn fought back with groups, Celebrity Influencers, and Pulse to try and keep the content streamlined towards business. It worked, kind of.

Today, the majority of the content you find will either be:

• motivational quotes
• people liking each other’s new profile photo
• job postings
• the same news story shared by 15 percent of your list
• and of course the consultants, still showing off their awesomeness

However, this content makeup isn’t a bad thing; at least there are no baby photos yet! Even though the content is changing, the legitimacy of LinkedIn remains. This means, the more people who use it as their dominant social stream, the more you can do as a salesperson to turn it into your personal CRM.

Now, let me apologize to GMs, DPs and sales managers, as this information will likely go against everything you are trying to do. For the rest, here is why LinkedIn is the best sales CRM:

First Steps

If you don’t have a LinkedIn profile, wake up. Whatever hang-ups you have about being social online are irrelevant. As of May 1, 2014, there are over 300 million members on LinkedIn, 100 million in the US alone. Every second, two new members are added [i], putting you further behind the curve. Unless you’re a C-suite executive, sooner or later you will lose out for not participating if you haven’t already. 

Your Online Professional Profile

Trust is an essential component of the sales equation; customers are very hesitant to open their wallet when there is a feeling of uncertainty. Building trust also takes time – time you should be spending on building value in the product and your brand. Like with a referral, the ideal situation is to have a trustworthy persona established before you even meet a customer for the first time. One vital first step on your way to being trustworthy is to manage your reputation online. This isn’t just for businesses, but salespeople as well. Whenever I meet a new person the first thing I do is search for them online. Your customers are doing the same, whether you know it or not. Having zero presence is certainly not a positive thing; it puts you in the “faceless” category where all the “bad salespeople” exist. 

LinkedIn not only allows you to showcase your professional achievements, but it also acts as a perceived independent third-party advisory to your character. If you are open and honest online, it lends to the belief you are the same in real life, say in a negotiation situation, for example. Even without recommendations, endorsements or shared connections (more on that later), having a profile shows a customer you are accessible, accountable, and most importantly, trustworthy.

Once you have a profile up and running, during your meet-and-greet it should become habitual that you ask if you can connect with your customers on LinkedIn. Remember, over 100 million people in the US have LinkedIn, so roughly one of two people over the age of 18 have it. Best practice is to have the customer add your profile, so when you leave your office to check availability, the first thing they will do is stalk your profile and hopefully add you. Secondly, if they are busy looking you up, they won’t be price-shopping your competitors. :)

Third, it begins to build trust from a third-party source, fortifying the impression you have given off during the greeting process. If they don’t add you right away, you have another opportunity before the customer leaves, or when they purchase the vehicle. You may be surprised that a customer may be more willing to add you on LinkedIn than to give out their email address. The average person is more vain than you think; everyone wants to hit that 500+ followers mark.

The more customers you have in your wheelhouse, the more beneficial the other aspects of the LinkedIn CRM will be.

Recommendations

Online reviews are all the rage right now, and business rely on them more than ever. More often than not however, the reviews benefit the store more than they do the salesperson. Yes, services like Dealer Rater offer individual salesperson reviews, but what would happen if you ever switched jobs? Building your personal reputation on the back of a dealership is like building a house on an iceberg; it may seem sturdy now but if it ever melts you lose everything (more on that later).

Don’t get me wrong, reviews with the dealership are also essential for yourself as a salesperson, but don’t put all your eggs in one basket. Using LinkedIn’s Recommendations allows you to diversify your testimonial portfolio while increasing the trust level of your profile. Any recommendations you receive are connected to someone else’s profile, with a picture, i.e., a tangible, real-life person that was so thrilled with your performance they attached themselves to you. Reviews like this far outweigh anything written by a faceless “John S.” Most customers will believe LinkedIn recommendations more feverously than photocopied pages in a “Why buy here” book because there is accountability of a third-party source.    

Furthermore, recommendations solidify many of the other aspects of the LinkedIn CRM system; best practice is to ask for a LinkedIn Recommendation from every customer you sell a vehicle to. Wayne Gretzky said it best: “You miss 100 percent of the shots you don’t take.”

Keep Your Contacts

As I alluded to earlier, for a salesperson the number one issue with a dealership’s CRM is that if you were to ever leave, your contacts stay with the company. Your (hopefully) hundreds, if not thousands of customers are locked away while you get shipped off the island. 

Keeping a separate copy of your customers in your permanent possession allows you the freedom to travel, if you so wish. The days of the loyal customers following the salesperson are quickly fading away; it is up to the salesperson to maintain contact and not wait for the customer to come to you.

Referrals

The “Introduction” system built into LinkedIn was originally designed for those in the job search, but it is far more effective in generating your own referrals. The larger you grow your network, the more potential customers you are able to reach out to in the 6 Degrees of Kevin Bacon. For example, my connections put me within arm’s reach of over 10 million professionals on LinkedIn.

Now, if you have made an excellent connection with a customer, especially if they have written you a LinkedIn recommendation, they will have no problem bridging the connection. The end result is a potentially infinite wheelhouse of referrals at your fingertips. Can your dealership CRM do this for you?

Customer History + Keep In Touch

An integral part of any CRM is to keep track of communications with current and potential customers. LinkedIn provides the same functionality; for every connection you are able to keep notes on their Contact and Relationship, information all kept within your profile.

The system allows you to create notes, set reminders, create custom tags, note how you met, and most importantly, if you tie it into your other systems (i.e. Twitter, Facebook, Outlook, etc.), it will also keep a chronological history of all your interactions.

You can then view all of this information in an expanded view of all your connections within the Keep in Touch section where you can sort by Contact Info, Last Conversation, Tag, Company, Location, etc, etc. The possibilities are endless, and quite frankly has practically the same functionality as any dealership CRM out there.

As an example you could use “Keep in Touch” to sort by Last Conversation and reconnect with those whom you haven’t spoken to in the longest period. Or, as another example, you can sort by Company when you hear of a public acquisition, and target all the employees who likely have received a cash buyout. The ones you don’t have direct connections with, you can use Introductions to get them into your wheelhouse as well.

Updates

Several times a week I get an email from LinkedIn telling me who got a new job, or who is celebrating a work anniversary. It also updates me of who has new connections, and who has been looking at my profile. To the untrained eye, this information may seem trivial, but with the LinkedIn CRM you can use this information to sell more cars.

For example, when someone gets a shiny new promotion or job, what is one of the first things they do? Upgrade their vehicle! It’s very easy to congratulate them on their accomplishment, and soft sell them on your services. If you get a conversation started, you can also ask if anyone they know is looking for a vehicle. Prospecting has never been this easy!

Same goes for a work anniversary. If someone is celebrating their 20th year at Company X, or celebrating their 50th birthday, likely they are feeling the need for a “change.” What is a great way to spice up your life? That’s right, a new car!

The LinkedIn CRM does a fantastic job of notifying you of your contact’s big life changes, and allows you to step in and prospect new sales and new referrals. It’s almost criminal if you are not doing this already! :P

Build Your Personal Brand

Once you have accumulated a healthy contact base, built trust with recommendations and are prospecting regularly, the last piece of the LinkedIn CRM is to build your personal brand with content. Just as a good dealership does with their webpage, you can do the same with the LinkedIn CRM.

Whether you create the content yourself (ideal) or are sharing great content from DrivingSales, your gentle touch (shhhh…buy a car) is spreading itself across all your connections. Every time someone interacts with that content, it spreads to their connections (shhhh…buy a car). The more interactions, the more prominence it is given on the site (shhhh…buy a car). The more prominent content, the more your profile is advertised across your 10,000,000+ connections and sooner than later, you get a message saying, “Hey, I have some questions about buying a car. Billy said I should message you.” 

You could share news about the latest concept vehicle, or create a FAQ article about how to keep your car door locks from freezing. As long as you are sharing relevant, high-quality content, your reach will continue to grow. Again, yet another thing your dealer CRM can’t do for you.

Apologies

Again, to the DPs, GMs, and SMs, I apologize for sharing this information, but think of the positive. If your salespeople are prospecting customers and selling more vehicles, how much is there really to be worried about? At the end of the day, we all want the same thing: to sell more cars and make more money.  

Have you tried using LinkedIn as a CRM? What experiences have you had? Are you going to try it? Share your answers in the comments: