Check out our New Classifi ed Section on page 37

October 2009

The J.D. Byrider franchise model is a winner, proven from coast to coast. And, with that national brand name comes a prominent national face to endorse it: Champion Race Driver, Tony Stewart.

We’re committed to helping our franchise partners succeed. If you’re the right individual, you could be in for the ride of your life.

For more information go to www.jdbyrider.com or call 800-947-4532.

“Losing sucks. Go with a winner.” – Tony Stewart, NASCAR Sprint Cup Champ & J.D. Byrider

Team Owner/Driver

DO YOU HAVE WHAT WE’RE LOOKING FOR?“ I was particularly impressed by how much money can be made from an

individual store.” – Vince Keller, J.D.Byrider Dealer

HIGH NET WORTH PROVEN TRACK RECORD OF BUSINESS SUCCESS COMFORTABLE ASSOCIATING WITH TYPE-A

PERSONALITIES

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marketing solution

sales & training solution

leadership solution

feature solutionOctober 2009

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By TimJames

JasonLancaster 36 SEO 101 - BASIC SEARCH ENGINE OPTIMIZATIONFOR AUTO DEALERS

SteveBrazill 26 THE MERCHANT

ChuckPatton 28 E-MAIL MARKETING FOR SERVICE DEPARTMENTS - KEEP YOUR FOCUS ON RESPONSE

QUALITIES OF TOP PRODUCING SALESPEOPLE

KirkManzo 14

HOW MANY CRM SYSTEMS DO I NEED?MattWatson 16MattBaker 20 IF YOU DON’T START BUYING, WHAT

WILL YOU SELL?

PaulSnider 34 WHY CUSTOMER INTERVIEWS ARESO VALUABLE

THE POWER OF COMPLETED STAFF WORKStephenR.Covey 08

GeorgeDans 21 THE CLIMB TO SUCCESS STARTS WITH HONESTY

A RECESSION IS A TERRIBLE THINGTO WASTE

GrantCardone 24

WITH PROPER TRAINING, THE ECONOMY WON’T MATTER

FranTaylor 18SYNERGY SESSIONS 2009, ATLANTA GEORGIASeanV.Bradley 32

VOLATILITY AND VELOCITYDalePollak 30

WHY DEALERS NEED A SOCIAL MEDIA AND REPUTATION MANAGEMENT STRATEGY, PART 1

RalphPaglia 15

TRAINING IS TOO EXPENSIVE...OR IS IT?PaulCummings 10

Have you ever felt like you were mak-ing little mistakes that are costing you tons of money at your dealership? Do you feel like there are hidden pro ts in your dealership that are just waiting to be uncovered? If you are like most dealers, the honest answer is, YES, Absolutely!

It’s a shame for YOU not to make more money, when these dealers do it so easily…

Just one thing that Mark showed us made us over $200,000 in prof-its in 90 days

Franklin Greene, GM Montgomery Ford LM

Our grosses went up 30% on the front end, and we added almost 50% in the back end. The best part of that is that our sales also increased over 25% and continue to increase.

Gary Minneman Jr, GMSunshine Toyota

Working with Tewart Enterprises is different from other consultants and trainers. We are getting results with very satisfi ed customers. In addition, Tewart Enterprises Inc is helping us to make our entire business more sound. With years of successful ex-perience, this team is innovative and up-to-date presenting fresh ideas to keep up with our ever-changing business. I would recommend Tew-art Enterprises Inc. to anyone who wants to improve their business.

– Doug MathersRusswood Auto Center, Lincoln, NE

My name is Mark Tewart and I am the President of Tewart Enterprises Inc. For almost two decades I have been helping dealers nd hidden pro ts and correct-ing little mistakes that were costing those dealers hundreds of thousands of dollars. These almost-magical solutions turn little mistakes into instant cash machines of bot-tom-line pro t.

Because I have not met you and do not know anything about your dealer-ship, I can’t say how much money is being left unrealized at your dealership. How-ever, I can say FOR CERTAIN that the number of dollars is substantial and would shock you, if you knew.

There are a few things that every dealer should be doing to make money, especially in this economy. The Great News is that I have identi- ed those little mistakes and have big

solutions for them. NO BS, just real measurable results that start happening immediately and I guarantee those results.

• Sell more vehicles without spending $1 more on advertising• Increase your gross pro ts any-where from $300 to $800 a vehicle

• Make an extra $100,000 or more in your service pro ts in 90 days or less• Double and even triple your sales and service customer retention• Double your appointments and sales conversion from Internet leads, Web site leads, third party leads

• Increase your F&I Product pen-etrations by 25% immediately• Discover the one secret that will make your dealer-ship an additional million dollars or more over the next ve years — We

have several clients who have already experienced this

and it will make the hair stand up on your neck when you hear this.

Call 888 2 Tewart (888 283-9278) or e-mail info@tewart.com to schedule a private and con dential interview.

***We will share candid and speci c information that will prove to you without a doubt what I am saying is true. You will see real dealer examples that support these results. Because of time constraints, there will only be a limited amount of dealers accepted into this program.

P.S.: Please, only Dealers or General Managers may respond.

I can’t say how much money is being left unrealized at your

dealership. However, I can say FOR CERTAIN

that the number of dollars is substantial and would shock you,

if you knew.

DougBurkert 22 LITTLE ROCK DEALER JUMP STARTS SUMMER SALES WITH ‘LET IT RAIN’ EVENT

www.autosuccessonline.com

08

StephenR.Covey

THE POWER OF COMPLETED STAFF WORK

leadership

solu

tion

Over the years I have talked to tens

of thousands of executives, secretaries, managers and professionals who say that their greatest challenge is not being able to get everything done with the time and resources they have.

Given the average person’s struggle, can you imagine what it must be like for a secretary of state or a minister of foreign affairs? The demands are unbelievable — working at all hours of the night, attending meetings across the world, seeking understanding, negotiating and making decisions that impact entire nations. How on earth do they manage?

Years ago I learned something very important from the example of Henry Kissinger, a lesson that I believe can be applied by anyone in any position. When serving as secretary of state in the Nixon and Ford administrations, Kissinger instilled a principle known as “completed staff work,” a concept which I think is the key to managing high demands, developing effectiveness in yourself and in others, and getting it right.

Simply, completed staff work requires individuals to give their best thinking, their best recommendations and ultimately their best work.

When given a recommendation from his staff, Kissinger routinely asked: “Is this the very best you can do?”

Often his staff replied, “Well, no. We could strengthen our recommendation with more analysis and detail.”

After they’d reworked it and resubmitted it, Kissinger would again challenge his team: “Is this your very best recommendation? Is there any room for improvement?”

Of course, the team always found ways to correct and improve their recommendation. With added responsibility for their best thinking and judgment, they would deliver their fi nal recommendation and be able to say, “We have been absolutely thorough with our thinking, clearly identifying the alternatives, an action plan and the end results.” Kissinger then replied, “Good, now I’ll read it.”

Clearly he understood that, if he wisely delegated important responsibilities to his staff and empowered them to perform their completed staff work, they would fulfi ll their highest potential and make a greater contribution.

Unfortunately many in the workplace have not learned to trust the principles of delegation and empowerment. They take it all on themselves, convinced that only they themselves can do it right. Ultimately they burn out and, meanwhile, the organization reaps only marginal thinking and marginal results.

Consider your situation at your dealership and all its demands and pressures to get things done right. Ask yourself how you can begin to delegate and empower others through the principle of completed staff work, and apply the following concepts for greater effectiveness and effi ciency:

1. Know What You Want,And Say SoEstablish a defi nite understanding of desired results, a psychological contract stating clear expectations between yourself and those you lead and supervise. Help employees to understand that they will be called upon to give their best thinking in

solving problems, making decisions and formulating recommendations. Identify criteria to be included in recommendations.

2. Ask QuestionsAs a manager or co-worker, ask staff members, “What is your recommendation? How would you solve this problem or how would you implement this policy?” Get in the habit of soliciting ideas and buy-in — psychological investment in the successful outcome of your project — from others. Be careful, however, to give credit and recognition to others for their contributions. Otherwise you will seem to be exploiting others and their best thinking for your own recognition or benefi t.

3. Clarify AssumptionsWhen working with others in the dealership as a supervisor, supervisee or co-worker, remember to clarify all parties’ assumptions as to the premise of the work, the required format, the criteria, the timelines and so forth. Often different assumptions can lead people to go off on different tracks, resulting in frustration and loss of buy-in.

4. Give People The Tools They NeedProvide necessary resources, time and access to information. Nothing is more frustrating to people than to be expected to do completed staff work without the necessary information and resources. Be accessible when necessary to give information and feedback.

5. Provide A Setting For SuccessSchedule a time for presentation and review of the completed staff work. Give people a chance to make an effective presentation of their work. Respectfully ask questions with positive feedback before recommending improvements and identifying next steps.

The principle of completed staff work is not a panacea. It’s simply an effective means of teaching people to do their own thinking and put their best work forward. My experience is that most people welcome the chance to study things out and to show what they are capable of.

If executed well, completed staff work saves everybody’s time in the long run and produces higher-quality results by tapping into people’s talents and potential.

Stephen R. Covey, Ph.D., is co-founder of FranklinCovey, and is the author of The 7 Habits of Highly Effective People. He can be contacted at 866.892.6363, or by e-mail at scovey@autosuccessonline.com.

www.autosuccessonline.com

10

PaulCummings

TRAINING IS TOO EXPENSIVE...OR IS IT?

leadership

solu

tion

Over the last 12 months, we have

provided education content to hundreds of businesses and thousands of individual users worldwide. Our students have watched hundreds of thousands of content specifi c episodes and passed exams that verify material comprehension, all without leaving their place of business. The great news: Business owners have been able to provide world-class education for pennies on the dollar compared to traditional methods of training delivery.

We live in an age where education is truly just a click away. The explosion of Web-based learning systems have made it possible for businesses and individuals to receive world class, role-based content in a non-threatening, positive and cost-effi cient manner.

Imagine the ability to educate 100 percent of your people on a monthly basis for less than the cost associated with one person attending one three-day workshop. Imagine the ability to provide content that is specifi c to the individual needs of every one of your valued team members. Imagine knowing that the training your people receive is perfect every time. Imagine granting them access to the information 24 hours a day, seven days a week, 365 days a year. Sound too good to be true? Welcome to the world of e-Learning.

Online learning is more affordable, more convenient, more effi cient, and more effective for the dollars invested, and provides any business owner the opportunity to do something they could not possibly do in any other training format. They can educate 100 percent of their people with content targeted to meet an individual’s specifi c needs. They can have

true measurement and real accountability at the tip of their fi ngers. They can communicate directly with all team members and know that their message is consistent and accurate. They can reduce the current man-hours needed to deliver training to key members of their organization.

Let’s examine why e-Learning has emerged as the No. 1 method of training and educating employees. We live in a fast-paced world where time is at a premium; online learning is simply more effi cient. The convenience and fl exibility of e-Learning affords the user the ability to educate herself during the time that is best for her. Online learning removes the stress of trying to accommodate an entire organization around one schedule.

The second most important reason for online learning is cost. The incremental cost of Web-based training quickly trends to zero. The incremental cost of live training always results in a cost increase. Here’s a great example: If you send 10 people to a live event that costs $795 per person, your cost would be $7950, plus travel, time away from work, and the loss of productivity. If you have an e-Learning system that is $795 per month with 10 users, your cost per user is $79.50 per month.

In addition, you are able to customize training to individual needs at a much lower cost. We are able to verify that learning takes place through testing, which is not possible in a live event format. Another valid point is that you — as an organization, business owner or individual — have the ability to repeat learning with no incremental cost whatsoever.

Now let’s look at the simplicity and ease of e-Learning: If it can be recorded it can be

delivered. With e-Learning, you can deliver the content whether your organization is in need of motivation, sales training, leadership development, human resources training, new-hire orientation or service training. Unlike traditional methods, that would require you to go to multiple locations and use multiple providers, e-Learning allows the ease of having all of your education content in one location 24/7/365. More importantly, you can take that location with you to every location you go. If you can get online you can get on with the process of educating yourself. It doesn’t get any easier than that.

In my travels, managers and leaders consistently ask me about accountability and measurement. E-Learning provides a simple but powerful solution to this pressing problem. Watch a video, take a test, create a report. With e-Learning you know who watched the training, when they watched it, and more importantly how they performed, all in real time. As a leader you can actually measure the progress of multiple locations, multiple departments, and an unlimited number of users through a quantitative and qualitative dashboard reporting system. It doesn’t get any easier than that.

Twitter, Facebook, YouTube, Google, LinkedIn, and now e-Learning have proven one thing: Web-based is the way to go. Get on the e-Learning train. It doesn’t get any easier than that.

Paul Cummings is president and CEO of Paul Cummings Enterprises. He can be contacted at 866.865.3171, or by e-mail at pcummings@autosuccessonline.com.

12

Over the last couple of years, we have seen individuals — both those new to the auto industry and industry veterans alike — defy the conventional wisdom that “the best you can do is survive in this economy” and skyrocket their dealerships into top performers. So we’ve sat down with a few of these superstars and searched out some of the fundamentals that seemed to be common to each.

Start With the End in MindThere are a lot of places and ways to list your cars online these days. There are so many cool gadgets out there to plug into your Web site for this, that or the other. The fact is that it is easy to lose track of what we are really trying to accomplish. The Internet, like television or radio, is simply another means of communication. People connect to the Internet looking for information or entertainment, just like they do when they turn on the TV or radio. This has created new media sources that provide consumers with the information or entertainment that they desire (some being more popular than others), and thus create the opportunity for you to advertise your inventory.

So where does that leave you? The same place you’ve always been. Your goal is to create ads for your inventory that get people to your lot. The great thing about it is that your own Web site and inventory display pages, if used properly, are also “media sources,” and can now be included in the “channel guide” (a.k.a. search engines) to drive even more people directly to them.

We know that the more information and emotion we have in our ads, the more likely it is they will rank high on the search engines, and the more likely it is that they will satisfy the consumer’s search for information. If this is the case, they will generate more emotional response from the consumer, and this will make your Web site a trusted source of information. The consumer will more likely come back to your Web site later in the buying cycle.

So before adding any new products or services, you need to ask yourself the following questions:

• Does this add (or make it easier to add) more information to my ads?• Does this add (or make it easier to add) more emotion to my ads?• Can I accomplish the same results with the resources and tools I

already have?

“A couple of years ago, online advertising was a luxury; now it’s a necessity,” said David Metter, chief marketing offi cer of MileOne. “I think that everyone talks about online advertising being cheaper.

Online advertising really is more effi cient. It’s certainly more on-demand than anything else. With other media, you hope and pray that people see what you’re doing. Online is great because, whether it’s 2 a.m. or 6 p.m., you have the ability to be in front of the consumer when they want it.”

Joe Healy, the Internet director of Houston-based Lone Star Chevrolet, knows how important using effective online advertising can be. “We’ve moved up to be the No. 3 Chevy dealer in the nation, and part of it is we’ve changed our media mix,” he said. “We still do some branding with newspaper ads and television and a little bit of radio, but we’ve placed probably 300 percent more emphasis on the Internet. There’s no billboard department here. There’s no newspaper department here. But there is an Internet department. We’re able to measure those results very quickly. It’s grown for us rapidly; about 37 percent of our overall business is done through the Internet with only nine salespeople. I have about 18 percent of the sales force, and we’re doing 37 percent of the business.”

The ability to use a number of photos also is a huge selling tool, Healy said, and one that many dealerships don’t take advantage of. “Most of our competitors show nine or 10 photographs. We have a bare minimum of 36 photographs,” he said. “ On eBay, we’ll do up to 70 photographs. The customer likes full disclosure, especially because we may ship the car out of the country, so we’ll identify even a minor scratch. We’re proud of the product we put out there, so we’ll take the pictures. Basically, we’re selling the emotion. We want to put that customer in the car.”

Measure Twice, Cut OnceStarting with the end in mind, you now know that your goal is to create ads for the Internet that drive more traffi c to your Web site and more consumers to your lot. Once you invest your time in creating the best ad that you can create for each and every car, you can focus the majority of your time properly following up on leads and selling cars. This means the more you can automate the process for creating the information and emotion of your ads, the more time you have to sell.

Your goal should be to create business rules — the same business rules that are already in use at your dealership — into your inventory management system to automatically create information and emotion in your ads. The data for those ads can then be integrated throughout your online media and marketing partners’ platforms to create content-rich and highly emotional ads that you can incorporate into your vehicle display ads, manufacturer incentives, vehicle specials, parts and service

specials, consumer reviews, video presentations, vehicle test drive videos, text marketing, mobile Web site displays, window stickers, online credit applications, CRM-driven follow-up and life cycle marketing campaigns and so on. Ideally, if you do the work one time, and do it correctly, you can let the technology do the rest for the best results.

“Having one message across your media just makes sense,” Metter said. “It makes it easier for the consumer to remember your brand name or whatever you’re pushing. It’s somewhat subliminal. They walk past the TV and they see your message. They go online and they see the same message. They’re listening to their radio and hear the same message. You can’t help but to be in their consideration when you do that and you do it well.”

Emotion SellsIt’s too easy to forget how emotional the auto purchase process is for the consumer. We sell hundreds of cars a month, but the average consumer will only purchase a handful of cars in their entire lifetime. It is equally easy to get caught up in “information overload” by repeating vehicle features over and over, and not create unique emotional content to sell the consumer. To the consumer, every car is different. We must create ads that highlight (with photos and dealer comments) all that is unique and different about every car, thus increasing our ability to justify the value, create trust and urgency, and inspire mental ownership.

“Dealers have one of two choices,” Metter said. “Either we can treat our inventory as commodities, or we can really try to build emotion around the car. Customers, as a rule, are emotional about their car purchase. The car is an extension of a someone’s personality. If we really build the story around the car, and how that car might make someone’s life better — whether it’s work or family or whatever — I think certainly helps.”

Healy has seen what emotion can do to move specifi c vehicles. “I have a brilliant marketing guy, Stuart Russell, who uses a lot of emotional words in our advertising,” he said. “That’s what differentiates us from a lot of dealers. I look at dealers’ ads throughout the country, and a lot of people just use the basic descriptions. Stuart examines every car and personalizes each and every ad. He incorporates a lot of great words and phrases, like ‘exhilarating performance,’ or ‘ice-cold air conditioning,’ and that emotion gets a lot of people to read and look at all the details of that particular vehicle.”

Video can greatly increase the emotional response from the consumer by turning your static, site-based ad into a dynamic, visual ad, provided the video contains the same rich content and emotion needed to “sell” the car vs. “tell” about it. “Trying to ‘three dimensionalize’ the car for the customer makes it easier to make a decision on a certain vehicle,” Metter said. “Again, if that differentiates that car over a competitor’s car, that certainly gives us an advantage.”

Time Is MoneyThe world moves at supersonic speed today. You can create an ad for a vehicle and have that ad live on multiple Web sites (and in front of thousands of potential buyers) within minutes. More importantly, the data contained in that ad can be used to drive even more traffi c to your Web site or any destination that you desire. You spend $5,000, $10,000, maybe even $100,000 per month to advertise on the Internet. Why would you let a car sit on the lot for even one day without being online, let alone a week to 10 days? Think of all the potential buyers who are searching the Web in your market every day, and how many you miss out on when you don’t have your ads online.

Healy said that his dealership makes sure a vehicle is put online as soon as it has been detailed and ready for sale. “Obviously, the quicker we can get it online, the quicker we can sell the vehicle through AutoTrader, Cars.com, our Web site, etc.,” he said. “It cuts down the number of days the car sits in inventory, plus obviously, the car is never going to look as good as it does right after it’s been detailed.”

Tim James is the director of sales with HomeNet, Inc.He can be contacted at 866.924.6573, or by e-mail attjames@autosuccessonline.com.

By TimJames

www.autosuccessonline.com

14

Success leaves clues. After more than 25

years of selling, managing sales teams or coaching clients, the patterns of high performers become evident. Following are seven keys to developing the mindset and routines they implement on a daily basis.

Top Performers Understandthe Numbers GameThe most-often discussed formula for success in our business tells us that for anyone to be a top performer, they must get in front of enough people to achieve their sales goals. 4 – 3 – 2 – 1 is a hard benchmark to ignore. Top sales people realize that in order to consistently sell 20 cars a month, they will need to work with approximately 80 people a month.

Top Performers Prospect EverydayThey understand that the dealership is not in a position to provide them with the quantity or quality of ups needed to be consistent

month in and month out. For this reason, top performers understand that managing their time is critical to their success. Scheduling prospecting time to be on the telephone an hour per day, e-mailing past customers updates on new product offerings and investing time outside the dealership to attend networking functions at least once a week are all part of their routine.

Top Performers Love What They DoSalespeople come and go from this industry on a daily basis. Many new hires, when asked why they decided to sell cars, say “Well, the dealership ran an ad,” “My old job just was not working out,” “The company I was with closed,” or even, “My mom always said I was a born salesperson.” Top performers know why they sell cars and have a mindset that selling is their choice. They do not see this as something to do while they wait for the next best thing. If you’re in, then don’t put your toe in – dive head fi rst into the deep end of the pool.

Top Performers Believe in the Product They SellIt really does not matter what brand you represent; what matters is do you believe in the brand. The fi rst sign of belief appears in your own driveway at home, meaning if you sell Hondas, do you drive a Honda, or do you drive a Nissan to the dealership each morning? Often, in F&I courses, I will ask the managers to report their numbers by product sales for their stores. When penetrations are very low, often the F&I manager does not really believe in the product and —

your guess is correct — they do not have the product on any of their own vehicles.

Top Performers HaveShort MemoriesThe glory days of the past stay where they belong — in the past. Last month’s success or sales slump are left in the graveyard of yesterday. You must look at the present, and the rest will take care of itself. Top performers understand the past can’t be altered. Their mindset is that last week’s great performance is not an excuse to take your foot off the accelerator.

Top Performers Understand it is Not About ThemCustomers really need to feel they can trust you in order to do business with you. Top performers understand that, in the end, people want to do business with someone they like and trust. In order to establish that relationship, they focus on their customer’s circumstance to understand their situation fully before proceeding with vehicle selection and presentation. Well-honed questioning and listening skills make establishing rapport effortless. Their natural interview style represents a well-rehearsed conversation, not the Spanish Inquisition.

Top Performers Maintain FocusIn order to get the most out of each day, top performers fi ll their schedule with high-value activities. Time spent in front of a prospect and developing sales skills to increase their abilities fi ll their days. By constantly keeping their focus on customers and fi nding new ways to communicate the value of their product, top performers continue to grow themselves and their business.

You, too, can become a member of this exclusive club. An invitation to join is not required. There is, however, an initiation fee and dues are not paid monthly, but rather they are paid daily. To ensure your ticket to entry, your mindset must be that implementing and maintaining the principles listed here are not optional — they are mandatory. Your previous background is not an advantage, nor is it a limitation. To participate, only your commitment to do the work is needed.

Kirk Manzo is the president of The Manzo Group. He can be contacted at 800.858.6903, or by e-mail atkmanzo@autosuccessonline.com.

KirkManzo

QUALITIES OF TOP PRODUCING SALESPEOPLE

sale

s&tr

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Social Networking: An Introduction

I’ve been selling cars for more than 28 years, and using digital marketing to do it for 23 of them. I fi rst started using digital marketing in 1986 by posting “liner ads” on defense contractor Bulletin Board Systems (BBS) while working at a Volkswagen dealership in San Diego. Car guys who have known me for any length of time know that almost everything I have predicted over the years in regards to how the Internet would affect selling cars has come to pass, and within the time frames I predicted. So, here’s what I know is coming at us right now, without any hedging of bets or wavering.

Social media is changing the way people get their information. It’s moving customer information sources further away from marketers and their advertising channels (that would be you), and closer to the people that they relate to and interact with in their online communities. Social networks, user-generated content (UGC) sites, and all their variations make up what people call “Web

2.0.” This Web-empowered social evolution is building up to a tsunami-sized wave, and the impact will make any previous infl uence the Internet has had on the car business during the past 14 years look mild in comparison. Over the next few issues, we’ll be looking at how to harness these new tools to build more business.

Before we go any further, consider these words of caution: For many dealers, this type of social media initiative will attract the attention of customer segments that your sales and management teams may have had very few previous opportunities to deal with. Because many of these customer segments have not been interacting with your sales people in recent years, your team will need to develop some new skills and get used to communicating in different ways if they want to successfully engage with them.

What is Social Media Marketing?I have learned that, for car dealers, “social marketing” is essentially whatever tactics can be used to engage automotive consumers

in a positive way when they are spending time in various social networks and UGC sites. This can be as simple as placing an advertisement on Facebook that targets people in the dealer’s local market, providing an invitation to join the online community of like-minded consumers that is sponsored by the dealership. In this community, there are no ads, and it is free to local owners of the dealer’s brand.

Today, automotive consumers spend far more time online visiting their social networks and UGC sites like YouTube and Flickr than anywhere else on the Internet. The amount of time automotive consumers spend here dwarfs the time they spend looking at Google search results, automotive Web sites or any other type of online site. This means that social marketing is fi shing where the fi sh are. More on that next issue.

Ralph Paglia is the director of digital marketing at ADP Dealer Services. He can be contacted at 866.883.9250, or by e-mail at rpaglia@autosuccessonline.com.

RalphPaglia

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WHY DEALERS NEED A SOCIAL MEDIA AND REPUTATION MANAGEMENT STRATEGY, PART 1

15

the #1 sales-improvement magazine for the automotive professional

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16

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MattWatson

HOW MANY CRM SYSTEMS DO I NEED?

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Over the past few years, CRM usage

in dealerships has greatly increased and is still a big priority for most dealerships. As Internet leads became more and more important, it has became increasingly more important to have CRM solutions that were designed to effi ciently handle those leads. The problem a lot of dealers have is that their CRM doesn’t do a very good job of handling Internet leads. To remedy this problem, dealers purchase an Internet Lead Management (ILM) solution, which is more or less a second CRM solution. ILM software, unlike traditional CRM software, is typically Web based, since it is designed to handle Internet leads.

ILM solutions are great for your Internet department and have special functionality that makes it easy to handle Internet leads. Some of these special functions include:

• Distributing and routing leads to your Internet sales staff

• Sending text messages to alert your staff about the new leads

• Allowing your staff to respond to leads on mobile devices to improve response times

• Sending automated e-mails to customers to confi rm their leads were received

• E-mailing vehicle details, brochures, photos and videos to customers

• Managing follow-up processes by specifi c Internet lead sources

ILM software solutions can help take care of defi ciencies in your CRM software. The problem, however, is that your dealership is no longer working together as one team. It is important to have your showroom and your Internet department working together on the same CRM system.

Here are some of the downfalls of having a separate CRM and ILM in your dealership:

• ILM-only solutions don’t show you the full sales and service history the customer has had with your dealership.

• Separate ILM and CRM solutions create “skating” problems between the showroom and Internet department.

• When an Internet customer comes in, you have to additionally log them into your CRM to desk the deal and do unsold follow up.

• Reporting to see what is going on in your dealership becomes more diffi cult.

• There can be confusion if your Internet department doesn’t do sold and unsold follow up in both the CRM and the ILM.

• The ILM has powerful e-mail functions that are not available to your showroom salespeople, but all your salespeople need to e-mail their customers.

Automotive CRM solutions have evolved over the last few years to better handle Internet leads. All good CRM solutions are now Web based to better handle these Internet functions; it is no longer necessary to have a separate ILM solution. If you have to purchase a separate ILM, then you are really paying more money to make up for problems with your current CRM. You would be much better off purchasing a new CRM that was designed to handle Internet leads as well as handle all your CRM needs.

If you are stuck in a CRM contract and desperately need a separate ILM to properly run your Internet department, by all means do so. When you pick a new ILM system, however, pick one that also has full CRM capabilities. Doing so allows you to try out the new vendor, and will make the CRM switch a lot smoother when your current CRM contract is up.

If you are considering purchasing a new CRM solution, here are some of the

advantages to Web-based CRM systems:• There are no expensive servers to

purchase or manage in your dealership• It’s less likely to have contracts (they

typically use a pay-as-you-go model)• CRMs are available securely from

anywhere via a Web browser, with no software to install

• The software is enhanced more often, since the vendor can update it in one place

• It’s the ideal solution for dealer groups who need reporting and BDC functions across stores

• The enhanced e-mail features easily allow sending vehicle details, brochures, photos and videos

• They allow mobile access from your Blackberry, iPhone or other smart phones

As if having a separate ILM and CRM wasn’t bad enough, some dealers even have a third CRM or BDC solution to handle the follow up of their service department. There are now good CRM solutions available that can handle your showroom, Internet and service department together. Tying it all together lets you see a customer’s complete history and value to your dealership from one place.

It is important to have one CRM solution to keep track of all aspects of your customers and keep everyone in your dealership connected. Having one CRM with all the information in one database also allows you to do some amazing reporting and marketing campaigns.

Matt Watson is the chief technical offi cer for VinSolutions. He can be contacted at 866.626.8489, or by e-mail atmwatson@autosuccessonline.com.866.626.8489, or by e mail atmwatson@autosuccessonline.com.

www.autosuccessonline.com

18

An Interview By FranTaylor

While many give the “Cash For Clunkers”

program credit for jump-starting the industry, for one dealership in Williamsport, Pennsylvania, the government’s stimulus project had the unexpected effect of getting in the way.

“Cash for Clunkers actually hurt us that month,” said Eric Guerrisky, sales manager of Blaise Alexander Nissan. “We couldn’t go over sticker because we couldn’t go below actual cash value on the trades like our training taught us to do. We could have made more if it hadn’t been for Cash for Clunkers. We did well, but we could have done better without it. We couldn’t work the deals the right way.”

While other dealerships were panicking and making bad deals to move metal, Alexander Nissan rode out the economic downturn by spending the money early on to train their staff into making the right deals, and making more on them. “Our owner, Blaise Alexander, looked at the way the year was going to go and said ‘If sales are going to be down, we’re going to have to concentrate on making more profi t,’” said General Manager Mike McRae. “He said, ‘If we’re going to sell 80 cars instead of 100, I want to make more money on those cars.’”

I recently sat down with Mike and Eric and talked with them about the value of training your staff, and yourself, to make the most of each sale in lean times and still fi nd great success.

Fran Taylor: Guys, how did you get started with training?Mike McRae: First, we were lucky enough to have an owner who’s not afraid to spend money on the right training. It got everyone pumped up and on the same page, from how we’re desking deals to how we’re dealing with customers – our whole process.

FT: Did you meet with any opposition?Eric Guerrisky: We met resistance immediately when we told them they’re going to start selling cars for full gross or above, and new cars for full sticker plus. When we started, we probably did fi ve in the fi rst week. It wasn’t a heavy week by any means, and we saw the training was working. Mike and I said, “This is it. It’s not a request – it’s a requirement.”

MM: The biggest thing we did, we got on board and embraced it 110 percent, and it’s

really made a difference. We followed a new daily schedule on how to train and what to do – that was a major part of our success. We had some doubters on the sales fl oor, but now we have guys thanking Eric and me every day, and we have guys thanking the trainer because they’re getting paychecks they’ve never seen before. We learned unbelievable prospecting techniques that got each salesperson’s name to the public several million times a year without spending money on advertising. As managers, we had never heard any of this before. We got excited and bought in quickly. In a nutshell, spending money on training is the best thing we have ever done.

EG: The guys started to see the results right away, but only because we made them. When we started writing the grosses on the board every morning, and some of the guys started seeing how much success the others were having by following the program, they all started buying in.

FT: Can you share some of your results?EG: I’ve tracked the commissionable gross front end, and I guarantee we’re $100,000 higher this month than we would have been. We’d be lucky to make $200,000 front commissionable gross, and we’re well over $300,000 this month. We’re making more now when we sell 80-90 cars than we did last year when we were selling 120.

MM: It’s made a huge difference in our bottom line, and in our salespeople’s paychecks.

FT: Describe the process thatstarted improving the grosses.MM: In a traditional dealership, the salesman compares what they do to what other dealerships in the area are doing. They say “I went down the street and they’re getting this interest rate for 72 months, they want this for the trade, and that’s what we have to beat.” Our new training taught us to do is ignore all that. He gave us a different kind of information sheet than we had ever seen before to fi ll out you need to fi nd out what the trade is, how much cash they are putting down, and what payment they want to have. It helped us qualify much better to put people in the right vehicles to start.

FT: Besides the extra income, what’s been the best thing about the training?MM: It got everyone on the same page, and we’re penciling all the deals the exact same way. Whether I’m on the desk, Eric’s on the desk or one of the other guys is fi lling in, things are done the same way – it’s a system. The guys know what to expect. Also, we’re having positive meetings and paying out cash bonuses, and the guys are excited to be here at work. They’re having fun. Everyone should have a system like this if they’re serious about making more money.

EG: We’ve got the guys making money for us in the businesses now who weren’t making gross. It’s not just the young kids. We’ve seen immediate results. I honestly believe that, by continuing our training, we will keep focused and on the right track. As long as they present it the way the we were taught, it works. These deals are closed before they go in.

MM: You hear a lot about how horrible the economy is. With these new prospecting techniques, it’s guaranteed that we get more customers coming back. We’re going to have our best year ever, profi t-wise, as a Nissan dealership. Not sales-wise, but profi t wise. You have to spend money to make money, and we were just fortunate to spend it with the right trainer, with awesome results. We have nine different locations, with domestic stores and import stores, and it’s working in all of them. Anyone can do this, if they’re willing to pay the price.

Fran Taylor is the president and CEO of Taylor Techniques. He can be contacted at 866.848.9864, or by e-mail atftaylor@autosuccessonline.com.

WITH PROPER TRAINING, THE ECONOMY WON’T MATTER

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866.848.9864, or by e-mail atftaylor@autosuccessonline.com.

Mike McRae, General Manager at Blaise Alexander Nissan;Eric Guerrisky, Sales Manager at Blaise Alexander Nissan

www.autosuccessonline.com

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the #1 sales-improvement magazine for the automotive professional

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MattBaker

IF YOU DON’T START BUYING, WHAT WILL YOU SELL?

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In its wake, “Cash for Clunkers” has

left dealers to ponder over some hefty inventory issues. While manufacturers race to replenish new cars, efforts to stock used units are plagued in part by a decrease in available supply. Wholesale prices have been steadily increasing over time due to manufacturers cutting lease programs, rental companies holding on to units for longer, and most recently the decrease in sales creating a drop in the overall number of trades. As a result, dealers are now left to satisfy an increase in demand for pre-owned vehicles with fewer units. This supply vs. demand curve is driving current auction prices up and will continue to do so, as many analysts predict, through 2010. These price problems are being felt by every dealer nationwide, leading many to believe that taking risks on the auction block will bear no reward.

However, choosing to give into intimidations by sitting patiently on the sidelines will not win you the game either. Making the decision

to “hold off” on purchasing additional inventory brings its own set of risks. Lack of used inventory puts the dealership at a disadvantage when trying to appeal to used car consumers who are in search of variety. With fewer customers coming in due to limited selection, dealership sales people often resort to desperate sales techniques, which, in turn, lower profi t margins. A decrease in dealership profi tability means a decrease in sales staff pay and morale, thus causing the best sales professionals to seek employment elsewhere.

The truth is that while book vs. market values may not currently be equal, they will once again balance out just as they have in the past. Yes – the sudden spike in prices is much ado with reduction in supply thanks to the economic effects stated above. However don’t forget that this increase is also a sign of growth in the number of serious buyers in the marketplace. This new infl ux of consumers is hungry for variety and will choose to buy from the dealer in their area who offers

them the greatest selection.

Just as car dealers are having issues fi nding pre-owned units to sell, today’s consumers are having problems fi nding pre-owned units to buy. However, consumers looking to purchase a used car today may not be aware of the change in market value. Consumers who price shop against book value will soon fi nd out that today’s price is what today’s price is. In my personal experience facilitating sales for dealers over the past few weeks, there is some silver lining here. Believe it or not, banks and credit unions are still buying despite the gross difference in book vs.

market value. Of course, some are still more aggressive than others, which is why it is in your best interest to nurture relationships with your strongest lenders and search out others who may better fi t the current needs of your market and inventory.

In a way, this auction-price predicament is a blessing in disguise. After all, isn’t a growth in demand what everyone in the automotive retail industry has been waiting for? Sure, the situation may not be “perfect,” but it is a testament to the fact that market share is out there and is up for grabs. So how do you, as a concerned dealer, make the most of this opportunity? It’s simple. Do what your competition is not doing.

Since many dealers have chosen to sit on the sidelines, those who decide to get in the game by purchasing cars now will reap the greatest fi nancial reward now and in the future. In order to sell more cars, a dealership has to have more units on the lot to sell. While the initial investments may seem steep, they are far outweighed by the monetary rewards if the dealership is willing to change their mindset and revaluate their strategy. In this case, determining whether or not a dealer’s high inventory will sell for a profi t is greatly dependent on the dealer’s advertising presence. As an unfortunate circumstance of the automotive recession, many (if not most) dealers have spent the last year tightening their ad budgets. For those who choose to amp up advertising, they will attract more customers and likely generate a greater gross per unit simply because no one else is out there to distract the attention of serious buyers. This situation poses an unbelievable opportunity for dealers to increase their share of the market, but only for those who are willing to take the fi rst step.

The truth is, no one knows when prices on used units may stabilize. Don’t let fear of loss distract you from your business’ ultimate objectives. Staying profi table can’t happen if there are no cars at the dealership to sell. Reevaluate your current strategy to account for the new changes in market conditions and take advantage of opportunities to increase your advertising presence. You may be surprised by how successful you’ll become.

Matt Baker is the vice president of sales for G&A Marketing. He can be contacted at 866.618.8248, or by e-mail atmbaker@autosuccessonline.com.

Who are you, what are you and where are

you now? If you are honest with yourself, you gain freedom. People normally do two things with truth; they either fl ee it or face it. Life is like that, and it’s pretty much black and white. Sales is the same way — you either win the sale or lose the customer.

Sales are tough in any economy; it’s tougher today only because if your game isn’t on, you’re most likely going to strike out. So how do you get through this? The fi rst thing you have to do is refuse to participate in misery — turn your attitude around. That’s where it always starts, isn’t it? It’s so easy to say, but it can be so hard to accomplish. I have several tips for you, and one of my best tips is to set some clear defi ned goals. Sales is an activity-based career.

If you don’t forecast your activities, then you will base your decisions on your moods, circumstances and feelings. The cost is deadly to most salespeople and dealerships. Life is about having a compass and path to follow, and sales is the same way. Your

compass is being truthful to yourself and tracking and knowing your numbers. If you attempt to guess your way to your goal, most likely you will fail by default. Play the numbers, and you win the game.

Do more then what is expected and you will get more back. I know sometimes it seems like you do more than expected but you don’t see the returns. It will come back if you give it; that, my friend, is the law of the universe. Don’t be like the lottery players in life who seemingly only want to spend a buck and make a million. Give what you have, and life will never deny success to you. Life doesn’t owe you anything; you owe it to life. Selling is the same way — when you give your prospect more then they expect, you will most likely close your sale.

Treat every customer like they are the most important person on this planet. Yeah, but what if they are a joke, or somebody who really isn’t qualifi ed to buy? Treat them with respect. Its amazing how credit scores assess what a person is worth. There are good people with bad or challenged credit.

Treat people with respect and it will come back to you.

George Dans is the chief motivational offi cer for the World’s Greatest Closer organization. He can be contacted at866.861.5169, or by e-mail atgdans@autosuccessonline.com.

GeorgeDans

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THE CLIMB TO SUCCESS STARTS WITH HONESTY

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By the time the CARS Act of 2009 — or

“Cash for Clunkers” — was signed into law, the Gwatney Automotive economic stimulus program was well underway. Showrooms were hopping, sales reps were making deals and customers were excited — and hoping for rain.

The program generating this traffi c, business and enthusiasm wasn’t some government scheme. It was the Gwatney dealerships’ “Let It Rain” promotion, which took place through the month of June at the fi rm’s three Little Rock Arkansas area locations.

“Gwatney Automotive is a family dealership that’s been doing business in central Arkansas for more than 50 years,” said Ralph Eubanks, senior account supervisor at Heathcott Associates, the Little Rock-based advertising agency that serves Gwatney Chevrolet in Jacksonville, 15 miles northeast of Little Rock; Gwatney Pontiac Buick GMC in Sherwood, a close-in northeast suburb; and Gwatney Pontiac Buick GMC in West Little Rock.

“We set up the promotion so that, if a customer bought a new vehicle from one of the dealerships in the month of June and it rained a certain amount on July 4, we’d pay off the buyer’s loan balance, up to $15,000,” Eubanks said.

Gwatney, the state’s top GM new car dealership, wasn’t on the hook, though. To underwrite the promotion, it tapped a prize insurance company to protect the dealership. The contract spelled out the details, which Gwatney’s sales staff shared with many

buyers. Specifi cally, the sales promotion hinged on 1.25 inches of rain falling at the Little Rock National Airport weather station between noon and midnight on July 4.

This is the third time Heathcott Associates has worked with Gwatney and a prize insurance company on a month-long June “Let It Rain” promotion. “The Gwatney Group came to us a few years ago and said they’d like to try it,” Eubanks said. “They threw the ball in our lap and said, ‘Go fi nd someone we can trust who can do this for us.’”

The June 2009 promotion was a repeat of “Let It Rain” events Gwatney hosted in 2006 and 2007. “We laid back last year,” Eubanks said. “We didn’t do it in 2008. That gave us a good indication of the promotion’s impact. When we came back with it again this year, sales were dramatically higher for that period. It really helped.”

The ad agency used a combination of newspaper ads, radio spots and in-store banners to promote the event. “We ran quite a bit of radio on six or seven top-rated stations, and we ran weekend newspaper ads throughout the month, promoting the event,” Eubanks said. “We also used huge four-color banners at all of the stores promoting it, as well.”

Along with the radio buy, the dealership hosted live remotes at a couple of the dealerships. “We did one on a Friday and one on a Saturday afternoon as the month was winding up,” Eubanks said. “We wanted to pump a little extra life into the promotion and to present a sense of urgency. We explained that June 28 would arrive before people

knew it, and if they wanted to get in on it, they better get in to the showroom quickly and purchase a new vehicle.”

The event got people in the door. The dealership was responsible for selling cars and making sure customers understood program details. “It’s important that customers know the rules,” Eubanks advises. “You don’t want to disappoint anyone.” Despite their best efforts, one dealership fi elded calls from people who said it rained at their homes on July 4 and asked about the payoff. “It just took a reminder that the promotion hinged on the amount of rainfall at the airport during that certain time period, and they understood,” Eubanks said.

“Let it Rain” fi t nicely into the dealership’s promotion calendar. “We do seasonal promotions throughout the year — for all major holidays and in conjunction with big events like NASCAR,” he said. “Holding the prize qualifi cation this time of year worked well because summer rains are common in central Arkansas and the payoff date would come soon after the promotion ends. Also, it’s a day when people are off work. On the one hand, they’re hoping for good weather, but they’re willing to endure a deluge to get the prize.”

Eubanks is exploring other promotions, including golf events with the prize insurance company. “We’re always interested in fresh ideas that can help our clients make more money by increasing sales,” he said.

Doug Burkert is the president of the National Hole-In-One Association. He can be contacted at 866.859.6407, or by e-mail at dburkert@autosuccessonline.com.

DougBurkert

LITTLE ROCK DEALER JUMPSTARTS SUMMER SALES WITH‘LET IT RAIN’ EVENT

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“A recession is a terrible thing to waste,

so make the most of it,” is what I say. No one in their right mind would ask for this severe of an economic contraction, as they prove so painful and infl ict so much fi nancial damage (as already has been proven). While no one would ever wish this, even on his best competitor, the reality is there are many benefi ts and opportunities created by them:

• Your competitors can get so involved in the problems that they couldn’t see a solution if it walked in and laid down.

• Your competitors might try to advance by retreating (always brilliant logic).

• The playing fi eld is evened out, so “deep pockets” down the street can no longer afford to just plain out-spend you.

• Lowest price sellers who depended on volume won’t make it, because they

don’t know how to hold gross necessary to make up for the loss in volume.

• Anyone who hasn’t been working on the basics of real salesmanship, genuine customer satisfaction (the kind that has to be earned, not bought) and training and motivation of staff will not make it through two quarters without blowing through their entire sales and management team.

That is why I say, “A recession is a terrible thing to waste,” as it creates many opportunities. As I am sure all of you have experienced in your own life, there is always something that comes out of even the most trying and diffi cult challenges in life. And there will be great things created out of this time for those who are able to adapt and make the adjustments necessary to the changing marketplace. And clearly this is a “game changer,” with some people

having to start over from scratch. Those who have good work ethic, endurance and can maintain the positive attitude of “make the most of it” will survive, come out stronger and seize market share.

Pass on the good news, “A recession is a terrible thing to waste — so make the most of it!” Just remember where you heard it fi rst. After this article, you might hear this somewhere else in marketing schemes and publications. But even that is good because it forces me to just keep creating and producing new products, services and solutions to separate myself from the pretenders.

Grant Cardone is an author and the CEO of The Cardone Group. He can be contacted at 866.865.3175, or by e-mail at gcardone@autosuccessonline.com.

GrantCardone

A RECESSION IS A TERRIBLE THING TO WASTE

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SteveBrazillm

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My Merriam-Webster’s Collegiate

Dictionary tells me that a “merchant” is “a buyer or seller of commodities for a profi t (a trader),” or “the operator of a retail business (a storekeeper).” Both defi nitions apply to car dealerships. The ability to trade commodities for a profi t — usually a newer vehicle in exchange for an older one (or a motorcycle, boat or almost anything of value) — has been central to successful dealership operations from the earliest days of the industry. And while we don’t commonly think of ourselves as storekeepers, we certainly are.

Set your standard self-image aside for a few minutes and think of yourself not as a dealership manager but as a merchant. You might fi nd it feels a bit different. If all this strikes you as inconsequential word play, consider the value of using the right words in a sales presentation versus the wrong words. Or think of the perceptual differences between “inheritance tax” and “death tax,” even though both refer to the same part of the tax code. Words matter, if for no other reason than they cause us to perceive people, things and events with different fi lters.

Thinking of yourself as a “merchant” might lead you to place greater importance on your merchandising efforts. As a storekeeper, you should be effectively displaying your merchandise (service managers — your merchandise is often intangible but no less important). Your store should be clean and orderly; a place where people want to shop.

The next time you are at your local mall, evaluate the storekeepers you encounter. They are merchants. Look at the meticulous attention to detail in their window displays. Notice how those displays are designed to entice shoppers to enter the store, how displays in the front of the store lead customers deeper within. Observe how frequently those displays are changed to present a fresh appearance.

Most of those merchants operate with a fraction of a dealership’s advertising budget, but they out-merchandise many dealers.

If you want to upgrade your merchandising efforts, consider these simple measures:

• Change your front line at least weekly.• Every lot has high-visibility spots,

usually at corners and next to entries from the street. Rotate those vehicles daily. (Consider putting a lot porter in charge. Provide guidance as to models and bright colors, praise good choices and allow for some selections that might not match what you would do.)

• If you run an ad that features specifi c vehicles, move them into high-visibility spots, accessible for demoing. It should go without saying that they are clean, gassed for test drives, radios off, tires infl ated and look ready for delivery.

• Organize brochures and sales materials.• Video and electronic sales aids are clean

and actually work. No one wants to touch something that looks like a health threat, even without H1N1 in the news.

• Parts and accessory displays should be rotated weekly. Do you really want to sell the stuff, or are you just giving people more places to donate fi ngerprints?

• Restaurants update their menus regularly and highlight what’s new. When’s the last time you updated your service menu? Do the models match your current offerings? If you use a wallboard or laminated displays at write-up, are they free of grease, dirt and fi ngerprints?

• A picture is worth a thousand words. Consider displays that place worn brake pads next to a set of new ones, a vial of used coolant next to a vial of new, etc.

• Put signs near all entryways directing customers to all important locations in the dealership. Storekeepers know that customers who wander and browse are more likely to spend money than customers who slip in and out.

Your customers spend their money at many establishments and encounter a variety of experiences. They may not be able to articulate the characteristics that distinguish the best merchants from the rest of the pack, but they can feel the difference and they know how to keep score. Don’t you want them wondering why the other merchants in their lives don’t live up to your standards?

Steve Brazill is the chair of automotive marketing for Northwood University, Texas Campus. He can be contacted at 866.861.1515, or by e-mail atsbrazill@autosuccessonline.com.

THE MERCHANT

www.autosuccessonline.com

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marketing

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tion ChuckPatton

E-MAIL MARKETING FORSERVICE DEPARTMENTS - KEEP YOUR FOCUS ON RESPONSESeveral years ago, I attended NADA’s

digital dealer conference and found it to be wildly informative. It was the best of the latest and greatest all under one roof to introduce the capabilities of technology in today’s automotive market. Every business owner needs to stay on the cusp of technology to explore how it can improve the way they do business, and that is why I was there.

My real passion was to learn more about the specifi cs of e-mail marketing and how it can affect a dealership’s approach to gaining and retaining clients for their service departments. I knew it would fi ll a niche, but I was looking to see how huge this “wave of the future” was projected to grow. E-mail is targeted, able to be tracked, interactive, dynamic and variable. Based on the conference, l left with the impression that it could do almost anything but service the vehicle itself. The big question, though: Did it work?

Can we associate a specifi c e-mail message with specifi c repair orders (ROs) generated? The purpose of this column is to show how to make e-mail marketing work for your service department, how to effectively cut costs without jeopardizing return on investment and how you can measure the results with confi dence.

How Do You Determine if it Will Work at Your Store? Service marketing is all about driving in customer ROs so your writers can reach their potential. You can track many e-mail elements — such as open rates, click-throughs and opt-outs — but there is no evidence within these reports that tie directly into an RO. You need to track which e-mails were sent that can be directly associated with a repair order. Most e-mail marketing programs do have valuable analyses of the results, but fail to show responses that affect your bottom line. If you don’t know what marketing messages

motivate your clients, then you cannot evaluate the true effectiveness of e-mail.

What is the Right Strategy for E-Mail in the Service Departments at Dealerships?The right strategy means e-mail and any other marketing vehicle must be incorporated into a much larger communication plan and not serve as a single leg that holds up the entire table. E-marketing is a strong lure for those fi sh that want to swim in the technology pond. However, just because you have an e-mail address does not mean you have an e-mail responder. What works is determined on a customer-by-customer basis — which customer will respond to messages in their e-mail inbox and which will respond to messages in their physical mailbox.

A Quick Reference Guide to Do’s and Don’ts:Do’s:

1. Continue the brand — Use e-mail to support any of your other marketing messages. Since direct mail and e-mail are the predominant advertising mediums for service departments, make sure the offers and the messages complement each other.

2. Extend an exclusive discount to e-mail consumers — Give special discounts to drive in customers during slow times of the day and/or week to fi ll slots where you need cars. Discounts gain validity when the customer buys into the reason for the discount. This drives up redemption of the offer.

3. Create a strong-enough message to drive the customer to your Web site — If they interact with your site, they are much more likely to generate a repair order.

Don’ts:1. Don’t replace your direct mail with

e-mail just to save a few pennies — You will not even come close to having enough coverage of the total opportunity. E-mail should only

replace direct mail when it matches its effectiveness in driving in RO dollars. Simply put: Only omit the names of customers from your direct mail if they responded to your e-mail marketing.

2. Focus on ROI and not just on response rates — E-mail is a low-cost alternative, but only when it is effective. It will cost you a fortune in lost opportunity if the customer is not coming in. You must demand performance in response, and not just in cost cutting.

3. Do not make the message too complicated — If you create an elaborate message about something the customer does not want a lot of detail on, then the message will be lost.

4. Talk about you and make it relevant to the customer — Talk about local events, local charities and specifi c issues on their vehicle models. Here is just a reminder: your competitor is the aftermarket. Talk about the dealership’s value, convenience and competitive pricing.

E-mail marketing is a smarter way to market to some segments of your database and increase your return on investment, but you must be sure it tracks how many customers came in compared to how many you e-mailed. If they respond to e-mail, then de-dupe them from your mailing list to help cut your direct mail costs and improve your ROI. If they don’t respond to your e-mail, be sure they are continuously re-categorized and accounted for within your total marketing strategy. Keep in mind you have a great deal at stake because each repair order generated brings you an average of $160 to $228. For a dealership generating 1,500 repair orders a month, you can make a six-fi gure mistake in a matter of months.

Chuck Patton is the founder and CEO of Traffi c Builders Inc. He can be contacted at 866.859.8520, or by e-mail atpatton@autosuccessonline.com.

www.autosuccessonline.com

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DalePollak

VOLATILITYAND VELOCITY

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On a recent visit to one of the country’s

fi nest dealer groups, I sat with the used vehicle manager and other top executives in their main store to examine why the store’s used vehicle volumes have dropped by about 50 percent and why, after months of effort, they still hadn’t been able to move the sales needle.

On the surface, the dynamics at this store are the same as many dealerships across the country — even with the store’s enviable West Coast location and reputation: New sales had dropped for the store’s domestic franchise brand, sapping trade-ins that normally fueled the used vehicle department. Likewise, the store had trouble fi nding vehicles it could purchase at auction, given an upward swing in wholesale values due to greater competition among buyers in the auction lanes.

But a deeper examination revealed other problems that, when taken together, amounted to a “stand still” in their used vehicle department:

• The store still emphasized its franchise brand, with 80 percent of its used inventory refl ecting the nameplate. As we reviewed marketplace dynamics, the store had virtually none of the off-brand highline models that were selling like hotcakes, nor did it stock enough of off-brand, “plain Jane” units that, while not as exciting as sports cars and other snazzy units the store preferred to stock, were selling at faster rates.

• The store’s average days in inventory ran well above 100 days. Its retail asking prices were, on average, 10 percent above the market, if not more. Both of these, I learned, were symptomatic of a dealership goal of generating $3,000 gross profi t per unit.

• The store did not show any wholesale losses on the books. I was mystifi ed,

although a deeper discussion revealed that “packs” and “moving money around” likely masked the true wholesale loss picture.

• The store had not taken any steps to acquire inventory beyond a local auction or two — despite acknowledging that more aggressive sourcing was likely needed.

As I discussed these dynamics, it became clear that the dealership’s desire to achieve its gross profi t goal on every vehicle was undermining its ability to become a more effi cient and market-attuned used vehicle retailer. In addition, the management practices that masked the true costs of their ineffi cient processes also inhibited the store’s ability to transform to a new used vehicle management model.

So while this store stands still, here’s what’s happening in the fast-moving, more effi cient marketplace that surrounds it:

Wholesale Value VolatilityAt the time of writing, the wholesale values of used vehicles are increasing, not falling as they had been the previous year. Manheim Consulting says the reversal is the result of a drop-off in new vehicle sales, diminished supplies of used vehicles at auctions and greater demand for vehicles from wholesale buyers.

Lender VolatilityThe rise in wholesale vehicle values is contributing to a pincer-like effect on deal-making at dealerships. Lenders, who are retrenching from losses and recalculating risk, are less likely to pay as much advance on deals, and they’re far less likely to absorb any negative equity than they did in deals just a few years ago. This dynamic, which I view as another sign of marketplace volatility, means dealers and used vehicle managers must be attuned to the vehicles

and customer credit profi les that can and will get the ultimate OK from lenders.

Consumer VolatilityToday’s consumers are more circumspect than in the past about spending money on big purchases like used vehicles. What’s more, their interest in buying is more erratic: If gas prices are going up, they move toward fuel-effi cient vehicles. If gas prices stabilize, the market for SUVs and trucks picks back up.

These market nuances are lost on traditional dealers and used vehicle managers like my West Coast dealer friend who effectively stocks and sells “what they know” versus determining the vehicle segments where demand bubbles are building and breaking.

The key take-away: An effi cient market, with its innate volatility, creates risk for dealers and used vehicle managers. The longer a vehicle stays in a store’s inventory, the greater the chance that wholesale value changes, shifts in consumer preferences and other factors will impede a vehicle’s ability to sell and produce an acceptable ROI. Likewise, the longer a vehicle remains in inventory, the longer a dealer’s investment is tied up in a unit that may be a less-effective retailing proposition than another.

Meanwhile, a velocity-based approach to managing used vehicle operations by its “from money to metal, money to metal” nature, reduces risk by enabling dealers and used vehicle managers to effi ciently track marketplace dynamics and sell vehicles in a shorter time to minimize exposure to the market’s volatility, thus avoiding the “stand still.”

Dale Pollak is an author and the founder of vAuto. He can be contacted at 866.867.9620, or by e-mail atdpollak@autosuccessonline.com.

www.autosuccessonline.com

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SeanV.Bradley

SYNERGY SESSIONS 2009, ATLANTA GEORGIABy the time you read this, Synergy Sessions

2009 in Atlanta is in the history books! This was the Fourth Annual Synergy Sessions. Last year’s event was absolutely amazing in New Orleans, and the results from this year’s event is sure to surpass that one. This year’s event featured John Ferber, CEO of USO Networks, as the keynote speaker. Ferber was the owner of the world’s largest digital marketing company, Advertising.com, and sold that company in 2004 to AOL for almost 500 million dollars. It is currently worth approximately 10 billion dollars today, so, having Ferber as the keynote speaker is truly an honor. “He had discussed digital marketing as well as stats and research points that are great to consider for any digital marketing fi eld,” said Stan Sher, Internet director of Teddy Nissan. This man can offer some powerful insight to our industry, and can guide dealers as to where to properly allocate their advertising dollars to maximize ROI in a downed market.

There were more than 13 nationally acclaimed vendor sponsors for the 2009 Synergy Sessions:

• Dealer Synergy• AutoSuccess Magazine• Dealer Marketing Magazine• Royal Administration• Synergized Media• AutoTrader• CarsDirect• VinSolutions• TK Carsites• DealerOn• FranklinCovey• vAuto• CarFolks• Bird Dog Club• Widestorm

Synergy Sessions had the absolute elite of elite national experts on hand for some powerful workshop presentations. This was not a timeshare pitch. Speakers understood that the automotive industry is at a critical

state, and that the economy still is not in good shape. So, the Synergy Sessions speakers came with it. I personally created the instructional design and curriculum design as an expert consultant and trainer. I found expert speakers in each of the selected topics who could deliver powerful training content, packed with a lot of take-away ideas so dealers could hit their stores hard immediately with strategies and best practices for an instantaneous incremental increase in volume and gross. “My store is going to start using this program in the next few days and I am pumped for it,” said Sher of the presentation by vAuto’s Darin Cantu, who spoke about new products and best practices. That is what the Synergy Sessions are about — tangible and immediate results.

Some of the national leading experts in the automotive industry that spoke at this year’s event:

• Sean V. Bradley and Karen M. Bradley (Dealer Synergy) – “Video Search Engine Optimization” and FranklinCovey’s “7 Habits of Highly Effective People Associates Course”

• Jim Rucker (TK Carsites) — “Understanding Social Media and How to Use it for Your Dealership (The Right Way)”

• Ralph Paglia (ADP) — “Free Resources to MacGyver your Internet Department”

• Sean Stapleton (VinSolutions) — “CRM”

This year’s event was also amazing because we had so many wonderful companies and entities behind us. It was not just a Dealer Synergy and AutoSuccess Magazine event. This year we also had Dealer Marketing Magazine as a host, who promoted and endorsed this event as “the event to go to this year.” We also had two major contests that ran on the two biggest and most relevant blogs in our industry… Automotive Digital Marketing and DealerRefresh.com. We gave away two full VIP trips to the 2009 Synergy Sessions event — our winners were Jesie

West and Mitch Gallant. As a matter of fact, one of the winners we fl ew all the way from Canada to Atlanta.

As in the previous Synergy Sessions tradition, we had an amazing VIP party on the 25th fl oor of the downtown Renaissance Hotel with a breathtaking view of Atlanta. “It was great because I had a chance to network with speakers and people I have not seen in a long time as well as people from other dealerships,” said Sher.

We will be posting all of the amazing pictures and tremendous amount of video content to the www.synergysessions.com Web site very soon. Here is what you can expect to see online shortly:

• Interviews with both contest winners from DealerRefresh and Automotive Digital Marketing

• Interviews from event hosts Susan Givens (AutoSuccess) and Sean V. Bradley (Dealer Synergy)

• Interviews from the amazing speakers and sponsors of the 2009 Synergy Sessions

• Interviews with Karen M. Bradley (Dealer Synergy & FranklinCovey trainer)

• Testimonials from a ton of attendees• And of, course, highlights of the entire

workshop, including all of the Speaker’s presentations…

• Behind-the-scenes looks at Synergy Sessions 2009

• VIP Networking event

I seriously hope you did not miss the event of the year… but if you did, you can catch highlights for the event online, and we only have 11 more months to next year’s event!

Sean V. Bradley is the founder and CEO of Dealer Synergy, a nationally recognized training and consulting company in the automotive industry. He can be contacted at 866.648.7400, or by e-mail at sbradley@autosuccessonline.com.

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www.autosuccessonline.com

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PaulSnider

WHY CUSTOMERINTERVIEWS ARE SO VALUABLE

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Those of you who have been in the

business long enough to have attended the Ryan or ADR F&I training classes, or those of you who have attended more recent training, understand the importance of a proper customer interview. Every outstanding fi nance manager that I have known — whether traditional or non-traditional — understands the importance of conducting a well-prepared customer interview. With credit quality dropping, the interview now becomes one of — if not the — most important parts of the entire process. Let’s take a look at the various types of interviews:

Phone InterviewMany of you reading this have tried interviews over the phone. My advice is that, if you attempt to do this, make sure you keep the questions short and don’t dive too deeply into credit issues. Why? If a customer feels interrogated on the phone, they may not show up for your appointment simply for fear of embarrassment.

Last month, I spent time at a well-managed dealership that processes thousands of leads each month. Their method is simple: Make the customer feel comfortable and verify pertinent information from leads (i.e. name, address and accurate phone numbers). Next,

they explain to the customer that they can help them; however,

they need to show up for the appointment, bring the necessary documents to complete a loan (such as drivers license, pay check stub, power or phone bills). Then they confi rm the appointment and assure the customer that they have made a wise decision. When too much information is given over the phone, it either leads to more questions or makes the person unsure if they can get fi nanced. The goal in this interview is to verify they placed the application and get them to show up.

In-Person Interviews for Credit-Impaired CustomersGood interviews include the “SAW” method —Stability, Ability and Willingness to repay the loan. Conducting a proper interview should only take between fi ve and eight minutes. First, explain what you do, and how your job is to help. Then, explain how the process works (this will put the customer at ease). Next, go over the application to verify everything is correct, and ask questions about why their credit went bad so you can discuss it with your fi nance company.

For example: “Mr. /Ms. Customer, my job at the dealership is to help customers obtain fi nancing and take delivery of their car. The banks I work with understand credit issues and specialize in helping people obtain fi nancing they can afford. The process works like this: Every item on your application must be verifi ed, which means you’ll need proof of income, job

and residence. Next, they will determine what percentage of your income they will approve for an auto loan and return that information back to me so that, together, we can pick the best vehicle that suits your needs. Let’s get started by reviewing your application….”

Recently a former colleague and good friend, who is now a senior underwriter for a major fi nance company, told me that “dealers I work with, who know how and conduct proper interviews, consistently have higher approval ratios and experience

quicker funding.” The reason for this is simple: Proper interviews provide all the information we need to convince our underwriter this is a bankable deal plus, when customer is aware of what will take place and you collect necessary stipulations up front, the package can be funded more quickly.

How many times have you received an approval, only to fi nd out the customer could not prove income, job time or residence? This leads to wasted time, a frustrated customer and no sale or slow funding for your dealership, all of which could have been avoided by spending a few minutes with customer to fi nd out if their application was accurate. An even worse situation is when you have inaccurate information and are forced to bring the customer back in and recontract or switch vehicles after they have taken delivery. This can be avoided.

In-Person Interviews for the Non-Credit ImpairedIf you are a traditional fi nance director, this quick and simple process allows you to put the customer at ease and learn more about their needs, which, in turn, will help when you present your menu of products. Many times, we are too quick to present products without knowing the customer’s needs, therefore leaving valuable revenue on the table. Keep in mind this customer has been on guard since fi rst walking in; now they have decided on which vehicle to purchase and they want a fi nancial person to help them complete the transaction. I often see fi nance people take short cuts and not establish early rapport, which can lead to a defensive customer, as opposed to those who take time to put the customer at ease and ask positive questions before presenting the menu.

In closing, interviews are designed to put customers at ease, establish common ground and gain valuable information and trust. An interview makes the process quicker, more effi cient and eliminates issues after the fact. The time invested in proper interviews will always pay off. Remember — it’s the little things you do that make all the difference when it is too late to do anything else.

Good Selling!

Paul Snider is the president and CEO of Voisys. He can be contacted at866.492.9209, or by e-mail at psnider@autosuccessonline.com.

Every dealership has a sales process, and

every Saturday morning one of the sales managers will inevitably talk to the sales staff about “bringing it back to basics.” This pep talk is universal because it works — talking to your salespeople about the basics reminds them that sometimes they make selling cars more complicated than it needs to be.

Internet marketing is a lot like car sales — some people make it more complicated than it needs to be. Slick Web sites with all the pretty bells and whistles might make a dealership feel good about itself, but it’s the basics that give a dealer a real competitive edge. And the most important foundation of any Internet marketing program is the quality of its search engine optimization. You may look good online, but if no one sees your site, what does it matter? A dedicated SEO initiative ensures that your site will rank well and be presented to prospects searching for cars online. Most potential customers search by car, NOT by dealership, so it’s important to program your site to respond to these search requests. If you’re not paying attention to SEO, it’s time to get back to basics. Follow these recommendations to maximize your Web site investment:

1. SEO Starts With Good StructureIs every page on the Web site being indexed by the search engines? Does every page have unique title and meta description tags? Does every page have unique content? Does the Web site have a good URL structure that contains keywords? Many companies that provide dealership Web site systems provide these services — the trick is making sure they’re actually doing it.

2. Give Them a MapSearch engines rely upon little computer programs to follow every link on your Web site and fi nd each and every piece of information. These programs — called “bots” or “spiders” — sometimes need help fi nding all the information your Web site has to offer. Give them a map by incorporating an XML sitemap fi le into your site. This sitemap should be updated as you add and subtract inventory.

3. Remember That Content is KingWhen I was a green pea salesperson, I learned the famous “Cash is King” trial close (I even remember carrying a little laminated card around in my pocket). When it comes to SEO, Web site content is king. Good Web site content is unique, informative, and useful. While auto dealer Web sites must focus on displaying vehicle inventory, there’s no reason that they can’t also contain some useful content that consumers will appreciate. Examples of good content include offering specifi c information about factory warranties, describing common maintenance tasks, tips for building good credit, and more.

4. No Web Site is an IslandMany Web site owners are opposed to linking out to other Web sites. The rationale is that linking to other sites will cause visitors to leave. But it’s important to recognize that all Web site visitors leave at some point — whether you give them a link or not. Secondly, it’s important to understand that search engines place more trust in Web sites that link to other sites than those that don’t. Finally, there’s nothing that says outbound links can’t open in another window (so the visitor doesn’t have to actually leave your Web site). By placing outbound links on your dealership’s site, you should see a boost in search engine ranking relatively quickly.

5. Privacy and Security Build Trust Google, king of the search engines, harps on the concept of “giving the user the best experience.” By focusing 100 percent on the user, Google has become a juggernaut in the world of Internet advertising. Logically, Google’s search engine takes a similar approach when ranking dealership Web sites. Google’s search engineers have determined that Web sites with clearly visible privacy policies tend to be a better user experience — so they rank sites with privacy policies higher than sites without. The same goes for site security measures. If your dealership Web site collects information that could be considered private — like credit or job applications — make those pages secure. These minor steps show your dealership’s commitment to a good user experience and often coincide with an

increase in search engine rankings.

6. Make Your Web Site a BrandThe main challenge of any search engine is to differentiate between great content and content that’s just OK. Sometimes the difference isn’t very big — a great Web site and a mediocre one can have basically the same content and the same information. In this case, search engines tend to emphasize the Web site that behaves as a brand. Branded sites behave differently than OK sites. Branded sites issue press releases. Branded sites have a blog. Branded sites have an active profi le on all of the major social networking sites. Branded sites have videos on popular video sharing sites like YouTube. If your dealership is struggling to rank ahead of a close competitor, boosting the brand of your Web site can move you ahead.

7. Build Links Every DayIf search engine optimization success begins with structure, it ends with building links that point to your Web site (aka inbound links). If two sites are equal in most respects, the site with the most quality inbound links will rank higher. Note that the emphasis is on quality – 1,000 links from 1,000 spammy Web sites aren’t nearly as helpful as two or three links from good-quality sites that are relevant to your dealership. Good-quality links aren’t a result of advertising, and they’re not the result of an exchange. Good quality links come from Web sites that genuinely want to link to your dealership site because they want people to check it out. While there are hundreds of link-building tips, the most important tip is that you should always be thinking about link building.

As Google and other search engines continue to evolve, based on technology and user trends, the specifi c techniques for search engine optimization will change. By remembering these SEO basics, you can rest assured your dealership’s Web site will remain relevant — and visible.

Jason Lancaster is the founder of Spork Marketing. He can be contacted at866.380.9305, or by e-mail atjlancaster@autosuccessonline.com.

www.autosuccessonline.com

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JasonLancaster

SEO 101 - BASIC SEARCHENGINE OPTIMIZATIONFOR AUTO DEALERS

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Dealers looking to take their online leads to the next level.

• Automatic posting to 26 websites• 300+ leads/mo from YOUR inventory

• NO third party leads • Sell 15-20 units/mo.• Average $6 - $9 per lead

contact Matt Tobin 1-866-285-9986 x6136 or trafficmax@hotmail.com

NO CONTRACT

Do you want to be a part of one of the fastest growing software companies in the retail automotive market? vAuto’s pricing, appraisal, stocking and merchandising tools are an evolutionary step forward for used car departments.

If you have strong retail automotive and/or technology solution provider experience in the dealership industry, then we want you to be part of our tremendous growth. Send resumes to: vautocareers@autosuccessonline.com.

Learn more at www.vAuto.com.vAuto is an Equal Opportunity Employer.

Protective is seeking a Divisional Vice President – Sales within our Asset Protection

Division responsible for the Northeast Region of the U.S. Excellent opportunity within

an industry-leading company providing financial security through our suite of F&I

products. Candidate must be able to manage dual distribution sales network; manage,

mentor, coach recruit & train a direct employee sales force; capable of delivering

annual revenue & profitability improvements; recruit and manage an independent

agent distribution network; develop client accounts; create new client relationships;

administer regional affairs. Candidate must possess 5-7 years sales mgmt. exp. in an

auto environment; bachelor’s degree preferred & strong focus on customer service.

Have excellent listening, oral & verbal communication; negotiation/conflict resolution;

problem solving, presentation, organization & planning skills. We offer a comp.

salary with unlimited income potential; 401k w/matching co. contribution; cash based

pension; medical/dental/vision.

For more information call 866.478.9241 or visit www.protective.com/jobs.asp

866.380.9305, or by e-mail atjlancaster@autosuccessonline.com.