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August 2008
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6. August 2008
BUILDING YOUR BUSINESS THROUGH REFERRALS
8 TomHopkins
Colossians 3:15
10
STOP THE BLEEDING Let the peace of Christ rule in your hearts, since
PaulD.Cummings
Four Fail-Safe Solutions That Will Limit Turnover as members of one body you were called to peace.
CHANGING THE DNA OF THE LEAD MARKETPLACE
With Premier Lead Exchange 12 MikeSpadafore address:
3834 Taylorsville Rd.
Building A, Ste. 1B
ARE YOU GOOD ENOUGH FOR YOUR JOB?
Social Networking Has Changed the Requirements for All Salespeople 14 DaveHein Louisville Kentucky 40220
phone / fax:
THE E3 FORMULA
(Evaluation + Education = Elevation) 16 JoeCala 877.818.6620 / 502.588.3170
web:
8TH HABIT LEADERSHIP
Part 1 20 StephenR.Covey AutoSuccessOnline.com
AutoSuccessPodcast.com
OH NO! NOT AN INTERNET CUSTOMER
Redefining Today’s Internet Strategies and Immediately Improving Our Results 22 DarrenHaygood team:
Susan Givens
DIAMOND AUTO DRIVES TRAFFIC AND CAPTURES NEW
SALES WITH VIRTUAL DEALERSHIP AND UPDATED 26 AnjanJ.Shah Publisher
sgivens1@autosuccessonline.com
INTERNET STRATEGIES
Thomas Williams
28
IT’S EASIER TO MAKE MONEY NOW FranTaylor VP & Creative Director
THAN EVER BEFORE design@autosuccessonline.com
29
VEHICLE INVENTORY OR MARKET’S DAY SUPPLY DalePollak Dave Davis
Editor and Creative Strategist
ddavis@autosuccessonline.com
INTERNET SALES 20 GROUP VIII
30 SeanV.Bradley
Brian Ankney
Sales-Improvement Strategist
FIVE ROCK-STAR WAYS TO BRAND YOUR DEALER’S
INTERNET SALES DEPARTMENT 32 JeffKershner super6@autosuccessonline.com
Scott Schaeffer
MANAGEMENT 101:
Knowledge is Only a Rumor Unless it Changes Behavior 34 JohnBrentlinger Sales-Improvement Strategist
sschaeffer@autosuccessonline.com
PART OF LIFE’S JOURNEY
36 D.J.Harrington general information:
info@autosuccessonline.com
FIRST, SOME REALLY BAD NEWS
37 JimAdams eNewsletter:
enews@autosuccessonline.com
LEAD NURTURE
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MANAGERS, GET IN THE DEAL EARLY
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IT’S SERIOUS MONEY, GET SERIOUS
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8. STS
TomHopkins
sales&trainingsolution
BUILDING YOUR BUSINESS
THROUGH REFERRALS
How much of your After the paperwork for the purchase is 5. Ask the customer to call and introduce
current business is approved by your new happy clients, bring you to the referral.
based on referrals? If it’s anything less than up the topic of referrals again. “John and 6. If the customer shows nervousness or
50 percent, you’re missing out on a lot of Mary, do you recall me asking you awhile refuses to call, ask if you can use the
sales. ago about referring others to us if we were customer’s name when you contact the
able to satisfy your needs? Well, now would referral.
Too many salespeople avoid asking for be a good time to get that done. Who are the
referrals for several reasons: first people you’ll be showing your new car Don’t fret over Step 5. Most untrained
• They just haven’t made it a natural part to?” salespeople would stop right there and
of their selling process. not even try the strategy. I’ll tell you right
• They’ve asked a few times, not gotten This is Step 1 in getting referrals. Don’t ask now, there’s a very good reason for Step
any, and stopped asking. “do you know anyone…?” That question 5. It’s setting the stage for the next step.
• They aren’t comfortable asking. In other makes a lot of people’s minds go blank. Ask Few people will be comfortable calling to
words, they don’t know the right way to very specifically who they’ll show the car to. introduce you, a relative stranger, to their
do it that the pros have mastered. Their minds will picture those people right friends or relatives. What happens though
away. Then, ask about people they know is they’ll be so relieved you offer them Step
If you fall into any of those categories, in other groups they may have mentioned 6 that they’ll jump on it. If you had gone
let’s change your thinking and increase the such as folks they volunteer with, others directly from Step 4 to Step 6, you may not
number of clients you serve the easy way they may carpool with, parents of their kids’ have gotten the same response.
— through referrals. friends, relatives and neighbors. Don’t grill
them. Just ask about a few of these groups in I usually lead them into this by saying,
To get more referrals than ever before, learn a conversational tone. With each name they “Thanks so much for the referrals, John. I
to set the stage early in your presentation. give you, ask a couple of non-threatening know since you are so excited about this new
Once you start to feel your current clients questions about those folks and why they opportunity, you are probably chomping
warm up to you, say these words, “John, came to mind. It could very well be that at the bit to share it with your family and
Mary, like any good business, ours grows those people had mentioned needing a new friends. Why don’t you start now by calling
primarily through referrals. If we are vehicle as well. Or, they could have an older Jim and sharing your good news with him?
fortunate to satisfy your needs with a new model of the same car you just sold. Then we can work on arranging a time for
vehicle and truly make you happy with him to come into the dealership.”
our service and financing, would you have Once you have a little information about
any objection to referring your friends or those folks, ask the best way for you to If your client is fine with that, then good,
relatives to us?” contact them. Then, promise your new start dialing. But if they hesitate or act
clients that you will contact these people. uncomfortable, take the pressure off
At this point of the sale, you’re a nice guy immediately. Some people may not know
or gal. They’re excited about the potential of Here are the steps in outline form for you to the referral all that well, or they may feel
owning. You’ve just talked with them about memorize: uncomfortable making the call. If this is the
the “after purchase” timeframe when they’re 1. Isolate faces for your customers to case, let them know you understand their
happy owners of a new vehicle. They’re not envision. hesitation, but ask if you could use their
likely to say “no” if they’re truly qualified 2. Write referrals’ names on your notes. names when you contact the people they
and planning to make a purchase. Once you 3. Ask qualifying questions about the referred you to. Most people will be relieved
get their agreement, drop the subject and referrals. to be let off the hot seat and be more than
proceed with your presentation and close 4. Ask for the referrals’ contact happy to give you permission to do so.
the sale. information.
Hopefully, you’ll understand the power of
this strategy and start applying it with your
very next client. What have you got to lose?
Not much. On the other hand, you stand
to gain a tremendous amount of referral
business.
World-renowned master sales trainer Tom
“...let’s change your thinking and Hopkins is the chairman of Tom Hopkins
increase the number of clients you International. He can be contacted at
serve the easy way — through referrals.” 866.347.6148, or by e-mail at
thopkins@autosuccessonline.com.
8
www.autosuccessonline.com

10. STS
PaulD.Cummings
sales&trainingsolution
STOP THE BLEEDING
Four Fail-Safe Solutions That Will Limit Turnover
Why is turnover are your scoring standards for hiring? The 20 Minute Daily Solution
such a major issue How many days a week do you teach and
for the sales departments in our industry? The Remedy: The fact is the more educate your people? What does your
It’s not like the problem is a new issue on difficult you make the hiring process, the on-going training program require of the
the horizon. The brutal truth is that this higher quality recruit you will attract and student? Is the program pre-planned, well
issue has been a topic of discussion for the ultimately hire. You must slow down the prepared and powerfully delivered? Is the
entirety of my 24-year-career as a teacher. process and create a defined recruiting content assigned based on the individual
Dealerships all over the world still struggle plan. In our leadership programs, we teach needs of students? Are you a learning
with turnover, especially in the sales side of dealers and managers a new recruiting organization from top to bottom? Do you
their business. Turnover - the loss of talent process that serves to limit “mis-hires” and coach around the processes you have
- is a hidden activity-based cost that is improve final candidate selection. Raise taught? Are you providing guidance and
more expensive than people want to accept. your recruiting standards and never settle feedback regarding each student’s progress
There is no line on the financial statement because you are short of people. or lack thereof? If not, there is a solution.
that measures the expense, but I promise it
is costing you a fortune. The good news is Create a 12-Week Campaign The Remedy: Schedule 20-minute-a-
there are four solutions that will limit your What currently happens at your dealership day practice, drill and rehearse sessions
turnover and increase your sales department when a new group of sales candidates designed to develop and improve the
profitability. show up for their new career in sales? knowledge, attitude, skills and habits of
What strategies do you have in place that your recruits. Each daily session should
Our current approach to the problem is will allow you to properly direct their have specific content designed to close a
flawed from almost every angle. As an career path from Day One in a successful perceived gap. The Rules: Start and end on
industry, our tendency is to recruit fast, train manner? Is there a “90-day process plan” time, don’t combine the teaching sessions
seldom, never coach and fire slow. Let me at your dealership with check points with a sales meeting, have fun and teach
pull the curtain back on this game plan: It along the way? Does each new hire have like there is no tomorrow.
does not work. The days of hiring in groups a defined game plan for growth, targeted
and throwing the “new hires” on the floor to their individual point of need? The Stay True To Your Standards
to see who sticks are gone. Letting poorly odds are you just said “no.” The solution The brutal fact is that we hang on to
prepared people practice on real customers requires hard work and daily diligence, but people far too long who are not a fit for our
is insanely ineffective and expensive. This the results are amazing. organization. There are many reasons why
approach is a “band aid on a cut” mentality we make the mistake. The key is to commit
at best. Have you really solved anything The Remedy: You must create a 12-week today to stop making this costly mistake.
by plugging a group of new people into the education program designed to enhance the
same flawed approach? The answer is “no.” individual’s opportunity for success. Each The Remedy: When you have provided the
week you must assign specific learning person every opportunity to be successful
Recruit Slower to Get Better Recruits objectives and hold the new recruits and they simply don’t have the knowledge
How do you get a job in automotive responsible for the successful completion of or possess the skills, demonstrate the
sales? Show up for the interview. If it is those objectives. The only way to advance attitude or possess the winning habits
really that easy to get a position in sales at to Week Two is to complete the assignments required to be successful, don’t be hesitant
your dealership, you are approaching the from Week One and the same should be true in your decision. The key is to support your
recruiting process incorrectly. If the sales of each subsequent week during the first team and fire rapidly and stop the bleeding.
position is so easily filled, what does it 90 days. Let me share a business fact with
say about the value of the position? What you: A sales professional is a person who
is your interview process? How many works on themselves every day. Individuals
Paul D. Cummings is president and
people interview the potential who prove themselves unwilling, early CEO of Paul D. Cummings World Wide
candidates? Have you created a in their career, to work on their personal Enterprises. He can be contacted at
“talent indicator” standards development will not enhance your 866.865.3171, or by e-mail at
evaluation process? What dealership or team. pcummings@autosuccessonline.com.
10
www.autosuccessonline.com

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12. FS
Changing
provides the
featuresolution
automotive
lead marketplace
with its first real lead
the
purchasing innovation
in more than a decade.
DNA
All participants — lead
generators, lead consolidators,
OEMs, Dealer Groups and
individual dealers — will derive
significant benefit.
Buyer Benefits
As a Buyer there are really two key
benefits:
of the
• Buy the 10’s
MikeSpadafore • Pay what the lead is worth
Lead Marketplace
An analysis of more than 2.5 million leads business model is inefficient and does not of those consumers generating one or more
has clearly demonstrated that all leads help the Seller or the Buyer. The Seller Internet leads — dealers have to make sure
With Premier are not equal relative to which leads are will present their leads to the marketplace they are closely managing this key aspect
Lead Exchange most likely to close. In fact, a lead scoring
statistical model used to score a typical
in what is typically termed a “waterfall”
method. The lead is presented to the
of their business. In the current economic
downturn, Internet leads have become
group of leads offered through the Premier Seller’s highest-priority Buyer, and, if not the new “showroom up” and arguably
Lead Exchange will show significant purchased, the lead “falls” down to the the most cost-effective and critical aspect
Every now and then, there is a change that How It Works receiving and paying fair market value differentiation — the leads scored a “10” Seller’s next highest-priority Buyer. This of the dealership’s marketing and sales
really matters — something that comes Advanced exchange technology enables for all of the leads transacted through the being five times as likely to close as the continues on down the Seller’s specific activity. Traditionally, dealers have simply
along and radically impacts the way we lead generators and wholesalers — the exchange. leads scored a “1”. Said another way, for waterfall of Buyers until the lead is either tried to obtain as many leads as possible.
live, work or play. Sellers — to present their leads on the each “10” that a dealer follows up with and purchased or is simply left unsold – the Some dealerships are also concerned
exchange for sale to any of the exchange’s Polk Lead Scoring, based on automotive closes, that dealer would have to follow latter of which results in an intolerably with the quality of the lead, where quality
The Premier Lead Exchange is the buyers. Sellers are able to specify a intelligence and advanced analytics, up with five “1’s” just to make a sale. bad consumer experience reflecting poorly has a limited definition based on contact
something that is going to dramatically minimum price for which they are willing allows a “score” to be placed on every Five times the labor for the same result. on lead generators, OEMs and associated information completeness and accuracy.
improve the way you acquire Internet leads to sell their leads. Lead consolidators, lead predicting how likely the lead is to Dealers who are able to leverage this kind dealerships. The most advanced dealerships have begun
and increase the number of vehicles you OEMs and dealers themselves — the purchase a new or used vehicle. The score of intelligence when it comes to purchasing to try and determine what the optimal
sell. That broken process we call the “Lead Buyers — are able to review all the leads is a ranking from 1 to 10, with a 10 being leads will have a significant advantage over A Buyer’s priority in a Seller’s waterfall number of leads is — too many and the
Marketplace” will never be the same. presented on the exchange, specify a price the most likely to purchase. The Polk Score, their competitors. is based on various factors, but generally salesperson is overwhelmed, and actually
the Buyer is willing to pay for a given lead, which has been validated in the industry is fixed — independent of the likelihood closes less; too few, and the number of
Dealers obtain their leads from three and then “bid” on the lead in a real-time to truly predict likelihood to purchase, The Premier Lead Exchange, at the very for that lead to close (as indicated by the Internet deals decreases.
primary sources — third-party lead auction process. The Buyer who bids is currently in use at a number of large least, ensures that every consolidator, OEM score), current market demand for the
providers, OEMs and the dealer’s own Web the highest price for a lead — which is dealer organizations, and is generating and dealer can identify and attempt to “Buy particular type of lead, or the Buyer’s This exchange solves these issues by letting
site. The majority of purchased leads come greater than the Seller’s minimum sales considerable buzz in the marketplace. the 10’s” in their market area — again, specific needs. The Premier Lead Exchange the dealer purchase the best leads in his or
from the third-party lead providers and price — receives the lead. This highly a huge competitive advantage. And, of enables all of these factors to come into her area and move as far into the balance
some OEMs. The problem is that dealers efficient “market driven” process ensures Combining the market-driven efficiency of course, there is no need to stop there. A play during the lead transaction process of the leads as the dealership can handle.
purchase the leads as if every lead is of that Sellers and Buyers are respectively the exchange with advanced lead scoring Buyer on the Premier Lead Exchange — this ensures that the Seller will receive Most importantly, the dealer can leverage
the same quality, with the same likelihood should purchase other leads in addition to a premium for high-quality leads, while the exchange to make sure that every high-
to close — this simply is not the case. The the 10’s — the 9’s, 8’s, 7s, and 6’s — still providing a fair price to the Buyer. scoring, highly likely to close (five times
Premier Lead Exchange will enable dealers which close at a proportionally high rate, as In fact, every Seller should automatically more likely) lead for the dealer’s brands
to buy the best leads in the dealer’s market well. Because the Premier Lead Exchange present all of their leads into the Premier and in the dealer’s area is purchased by that
area, and pay a price based on the lead’s allows the Buyer to bid and pay market- Lead Exchange with it positioned at the dealer. Stated more simply, there is no way
likelihood to close. driven prices — prices that are essentially very top of the Seller’s waterfall. In this — especially in this tough market — that
established based on the highly predictive way, the Seller’s best leads will sell at a a dealer should let a “10” go through the
To make this a reality, Detroit Trading buy rate score — the Buyer will pay the fair, albeit premium, market-value price, Premier Lead Exchange without making
Company and R. L. Polk & Co. have appropriate price for 1’s through 5’s. and any leads that do not sell will move a bid for that lead. It is really very simple:
combined their core competencies to deliver Again — paying what the lead is worth, down the waterfall into the standard lead It’s either you or your competition — who
an efficient, transparent and buyer/seller rather than some arbitrary price specified marketplace. Those leads will then be is it going to be?
friendly lead exchange integrated with by a lead provider working outside of the purchased by lead consolidators, OEMs
highly predictive lead scoring. Together, Premier Lead Exchange. and dealers who are not participating in
these competencies create the Premier Lead the Premier Lead Exchange for prices not
Exchange, which is certain to change the Seller Benefits accounting for a lead’s likelihood to close.
way automotive leads are bought and sold. In order for any lead exchange to Mike Spadafore is the director of global
ultimately serve the marketplace, it must Direct Dealer Impact strategy at R. L. Polk & Co.
Now dealers can buy the best leads in the provide benefit to both Buyers and Sellers.
The exchange provides benefit on behalf of
Internet leads have been steadily increasing
in importance to dealers for the past
For more information, contact Jeff
Raab with DTX. at 866.922.0617, or
dealer’s market area and pay a variable price Sellers, in that the exchange ensures a fair, 10 years. With more than 85 percent of Brad Korner with R. L. Polk & Co. at
based on the lead’s likelihood to close. market-driven price for a Seller’s high- consumers using the Web to research their 866.922.0667. You can also e-mail them
13
12
quality leads. The current lead marketplace next vehicle purchase — and the majority at dna@autosuccessonline.com.
DTX is a registered trademark of Detroit Trading Company.

13. MS
DaveHein
marketingsolution
ARE YOU GOOD ENOUGH
FOR YOUR JOB?
Social Networking Has Changed the Requirements for All Salespeople
For years, we have the customers. When they walk out the door, see, and it costs you nothing.
learned from our the sales person is off looking for the next
20 Groups and practical experience that conquest, not working their unsold (or sold) When someone has a less-than-excellent
word of mouth (referrals) is the most customer lists to further build relationships experience with a staff member at
effective way to build business. Most and ask for more opportunities. your dealership, it is that member’s
dealers today grew up on the sales floor, responsibility to fix it and make the
working with customers and building The introduction of social networking in customer completely satisfied. If they
long-term relationships that were centered the automotive space is forcing a change to do not, your staff member (and your
on providing ongoing customer service to all of this. Like it or not, customers today dealership) both have a negative mark
those customers as they drove their car, are going online and leaving comments in on the Internet for anyone to view. Now,
which lead to more business from those blogs, video sites and ratings sites about one negative comment here and there is
customers and their friends. their experience with the dealership and the not going hurt a business; in fact, it often
people they work with in those dealerships. helps in that it shows customers what they
Today, most salespeople are focused on That’s right; they are leaving comments already know, everyone makes mistakes.
the here and now. They are looking 10 about every member of your customer In the instance where a member of your
feet in front of themselves, not four years service team (front-line sales and service team regularly receives negative remarks,
down the road. As the result, many people staff). They are doing this to help other and does nothing to fix the problems for the
in a sales role today see every opportunity in-market buyers of vehicles and service customers, however, in-market shoppers
to do business as a conquest rather than find the employees of a dealership that are will see that this is a person to avoid.
an opportunity to build long-term sales going to deliver an exceptional experience
increases. In viewing customers as for them. If customers think poorly about someone
conquests, there is little or no effort spent that is employed in your business, what do
on building rapport and making friends with
This is great news for our industry. While they think about the business that would
some front-line keep that person on-staff? Likewise, when
staff within a dealership works to insure they have
a dealership staff members who consistently receive
may see this glowing reviews from customers, it tells
as a threat, the market that this is a dealership worthy
it is a great of more business and therefore more
opportunity for referrals walk into the showroom asking
every dealership for staff by name.
YOU HAVE CUSTOMERS today. Your
front-line staff As a management tool, these dealership-
AND PROSPECTS. members are
(or should be)
rating services that rate individual staff can
be an invaluable tool. They help to identify
customer service customer service issues long before the CSI
professionals. survey is sent out, they can show in-touch
Their job is managers and coaches trends of successful
WE HELP YOU GET to engage
customers and
people and quickly identify people whose
actions can negatively affect the reputation
A LOT MORE MILEAGE help them to
make the best
(and the revenue stream) of the dealership.
OUT OF THEM. decision to meet
their individual
In a day where manufacturers are looking
to reduce the number of retailers in every
needs. In doing market, it is likely that customers will
this, they create
Let’s roll. loyal customers
strongly influence the decision on which
operators make the cut by reviewing
who want to tell the scores of dealerships, which will
everyone they demonstrate the longevity of businesses
know about the in today’s world of user-generated content
great experience and social media.
they had. Today,
those customers
866-964-6397 imnLoyaltyDriver.com are going online
and putting Dave Hein is the CEO of CF Media Group,
these comments Inc and co-founder of CarFolks.com. He
in front of the can be contacted at 866.893.9428, or by
14
entire market to e-mail at dhein@autosuccessonline.com.
www.autosuccessonline.com

15. LS
JoeCala
leadershipsolution
THE E3 FORMULA
(Evaluation + Education = Elevation)
Evaluation to consider: correspondingly on the understood
To “evaluate” • Leadership Appraisal knowledge to make the necessary changes
means to ascertain or fix the value or • Work Appraisal found in our evaluation. This is true
worth of something - to examine and judge • Emotional Appraisal education. Knowledge + Corresponding
carefully. Another word for “evaluate” • Physical Appraisal Action = Education. When we are truly
is “appraise.” Now there’s a word I’m • Spiritual Appraisal educated in an area, we are no longer
familiar with. In the car industry, we use • Social Appraisal ignorant in that area. We have the know-
this word when we appraise or evaluate a • Management Appraisal how to fix, change and adjust ourselves into
customer’s trade. What are we doing when • Sales Appraisal a higher place than where we were without
we do this? Besides making our customers that education. This is called elevation.
upset about what we appraise their trade Now, if we were to just do an evaluation
for, we are examining, evaluating and and leave it at that than we’d all be Elevation
looking over the trade carefully to see the depressed and in pretty bad shape. To “elevate” is to move or rise to a higher
condition, mileage and real-time value of However, the evaluation is necessary to place or position; it is to lift up. To rise
it. The appraisal shows us the trade as it expose to us our current condition right to a higher state, rank or office; exalt;
is valued in the condition we see it. Now, now so we can fix, correct and adjust promote. The end result of Evaluation +
if the trade has a dent in one door, is over the value of what we see. This is where Education = Elevation. This is always
mileage and has a cracked bumper, the education comes in. the result of someone who practices these
value of the trade will decrease. There will principles in any area of life. Whether it
be deductions made for each area. But if Education is the workplace, the sale, the close, life,
the bumper is not cracked, the mileage To “educate” means to provide with leadership, management, relationships or
is under by 5,000 miles and there are no knowledge or training in a particular area anything else, this formula will hold true.
dents at all on the vehicle, the trade will be or for a particular purpose. Once we have
valued higher. The appraisal reveals to the done our evaluation, now we can fix, As you focus on making it a habit to
one evaluating it — and the one who owns correct and adjust the necessary areas we evaluate and educate yourself in every area
it — not only the actual value of it in the have discovered. of life, you will experience being elevated
condition it’s in now, but also the reasons to new positions, promotions and higher
why it’s worth what it’s worth. “The great aim of education is not levels of responsibility.
knowledge but action.”
We do appraisals for people every day, but — Herbert Spencer Joe Cala is an author, seminar leader
and Internet/Fleet sales manager of
what about ourselves? Now, you might be Gateway Toyota. He can be contacted at
thinking, “I don’t need to do an appraisal Once we receive the knowledge 866.859.6402, or by e-mail at
on my car because I’m not trading it in.” and information, we are to then act jcala@autosuccessonline.com.
But I’m not talking about appraising your
car. I’m talking about you. Have you done
an appraisal on yourself lately? Have you Am I happy with the overall If “no,” state why:
pulled out the “self appraisal” and took condition of myself?
time to evaluate yourself? What about the
“life appraisal”? Have you taken time to
Yes No
evaluate, examine and look over your life
to see the condition, mileage and real-time Is there any exterior damage? If “yes,” list defects:
value of it? Have we been so busy working
Yes No
and evaluating things for everybody else
that we’ve let ourselves fall apart? Take the
time to evaluate yourself today so you can Is there any interior damage? If “yes,” list areas affected and
fix and improve the areas that have caused Yes No the cause of damage:
you to lose self-value in your life. Here is a
sample “self appraisal” for you to do right
now. (see chart) Do I need any bodywork? If “yes,” list areas:
Yes No
This is just a sample, but I trust you get the
idea of how you can use this to evaluate
Have I been in any accidents? If “yes,” list areas:
your present reality, whatever it may be.
There are many other types of appraisals Yes No
16
you can put together. Here are a few more
www.autosuccessonline.com

18. LS
StephenR.Covey
leadershipsolution
8TH HABIT LEADERSHIP
Part 1
I don’t know how more and more people so disillusioned with • People are an expense, while machines
much money has their leaders? Why is the corporation the and buildings are assets.
been spent in our society on what is called least-trusted entity in our society? • The “carrot and stick” motivational
“leadership development,” but it must be philosophy still applies.
in the billions. Few organizations lack a Clearly, we need a new model of
leadership-training program, whether it leadership. We need leaders who can be I have spoken to hundreds of audiences
be a full curriculum or a course at a local trusted to get results. Wherever you find worldwide, and I always ask how many
college. Succession programs often include lasting trust, you will find trustworthiness. agree with the following statement: “The
leadership training that lasts for years. Trustworthiness, in turn, is the product majority of people in my organization
However, we see no real breakthrough in of a simple determination to keep one’s possess far more talent, intelligence,
leadership effectiveness. For example: promises. In its essence, trust is earned capability and creativity than their present
only by people who deliver. jobs require or even allow.” Virtually every
• Only about 13 percent of U.S. public hand goes up.
companies consistently met announced Most companies struggle to keep their
performance expectations in the last promises. A study of corporate performance What kind of leaders will people
decade, according to Profit From the during the 1990s by Bain Consulting volunteer to follow in the 21st century?
Core by C. Zook & J. Allen (Harvard revealed that most companies over-promise Will it be those who continue to manage
Business School Press, 2001). and under-deliver. “Only about one bureaucracies, or those who unleash the
company in eight, or 13 percent, achieved talent, intelligence, capability and creativity
• Only half of U.S. workers say they sustained and profitable growth over a of the people?
trust their leadership, according to decade that many would rank as among the
FranklinCovey’s xQ study of 12,000 best for the world economy…More than 90 We need great leaders. What we will need
U.S. workers in 2003. percent of the companies examined aimed are leaders who practice what I call “The
at returns well in excess of those level” 8th Habit.” These are the truly great leaders
• Only 57 percent of all Americans (Zook and Allen, italics mine). whom people willingly follow and who can
trust corporate leaders to be honest, be relied on to produce great results.
according to The Support Economy by We need leaders people want to follow.
S. Zuboff & J. Maxim (Viking, 2002). We have long since transitioned from the Some time ago I wrote a book called
Industrial Age, when workers did what The 7 Habits of Highly Effective People,
• Two out of three Europeans say they they were told, to the Age of Knowledge which outlined the principles and practices
distrust the leaders of corporations, Work, where workers essentially volunteer that effective people live by. Now I have
according to an April 2002 their efforts and give loyalty to leaders come to believe that there is an eighth
Eurobarometer Survey of the 15 EU they trust. But too many leaders are still habit, practiced by those who are not only
members states. mentally in the Industrial Age. Many of our effective, but move on to true greatness.
management assumptions are part of that What is the eighth habit? Find your voice
In an era when so much leadership mentality: and help others find theirs.
education goes on, why is there no • You have to control and manage
outbreak of great performance? Why are people. Everyone has unique gifts, talents and
capabilities that are only slightly leveraged
in most organizations. Finding your
voice means bridging the painful gap
between possessing great potential and
“Only half of U.S. actually realizing a life of greatness and
workers say contribution. Helping others find their
voices is the key to leadership success.
they trust their Originally ran in CLO Magazine
leadership...”
Stephen R. Covey, Ph.D., is co-founder
of FranklinCovey, and is the author of
the best-selling The 7 Habits of Highly
Effective People. He can be contacted at
20
866.892.6363, or by e-mail at
scovey@autosuccessonline.com.
www.autosuccessonline.com

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20. STS
DarrenHaygood
sales&trainingsolution
OH NO! NOT AN
INTERNET CUSTOMER
Redefining Today’s Internet Strategies and Immediately Improving Our Results
What is the first and an advertising source, not a type of So how do we create a unique buying
thought that comes customer. If used properly, it can bring you experience, while maintaining profitability,
to mind when one of your sales people more qualified customers with better profit without having to change the process just
says they’re working with an “Internet and results than any other department in for your Internet customers? Let’s look at
customer?” I’m guessing it’s not a positive your dealership. it this way: What do we traditionally say
thought. Taking it one step further, about customers who come in on rainy
what comes to mind when I mention And let’s handle this silly perception days? They’re buyers, right?
the “Internet” in general? Does the term that it’s all about price right now. Think
generate positive, profitable thoughts? about it: When was the last time you ran Bull! Think about it: When it’s pouring
Again, most likely not. a newspaper ad without pricing? And can down rain outside, or snowing, or
anyone show me the $4,000 high gross whatever, do we walk the customer around
For years, dealers have viewed the deal in the ad? Of course not; your ads all over the lot looking for a vehicle? No,
Internet customer as a source of are designed to stand out and capture the we bring them inside and sit them down
aggravation, more than a source of attention of the customer, with aggressive — usually offering them something to
potential profit. After all, they’re more pricing, trying to get them to call or come drink, and we’re very cordial (after all, this
educated, just “window shopping,” know in. When they arrive at the dealership, do might be the only customer we see today).
everything about your vehicle right down we really want to sell them the “ad” unit?
to the invoice, and only want your BEST Not really — we will if we have to, but in Then we do this amazing thing — we talk
price right? Well, maybe not. most cases the customer ends up switching to them. Asking them about their wants and
themselves. needs, identifying what it’s going to take to
Going back four or five years ago, I could earn their business right now. Then, instead
make an argument that the customer who Here’s a surprising statistic: Nine out of of showing them three or four different
used the Internet was from a slightly higher 10 “Internet” customers end up purchasing vehicles, we go get one vehicle, pull it right
economic demographic, extremely price a slightly different vehicle than the one up front and walk our one customer out to
conscious and more educated than your they sent in on the original lead. And even their one vehicle. From there, the process is
average “walk-in” consumer. However, more amazing, over two-thirds of new virtually the same. But because we started
today, everyone is online. And we need car Internet customers end up purchasing the process differently, the end result is
to change how we view the “Internet” a pre-owned vehicle. (Source: NADA often a sold deal.
and the customers it helps bring into our 2007). So, if this is the case, then why
dealerships. I would strongly suggest that do we get so caught up on sending our My challenge to you is this: Create the
today, the average consumer is much more Internet customers prices? You don’t have perception of a unique buying process for
informed, but LESS educated. any problem putting your most aggressive your Internet customers and watch your
prices out there for anyone that can read a closing ratio and profits soar. Have a vehicle
Try this exercise: When was the last time paper, but we’re scared to death of sending pulled out front, ready and waiting. Have the
you went through the same thing your prices to our Internet customers? basic paperwork already started, and make
customer goes through to send you an certain a manager greets the customer upon
Internet lead? Go to three different Web Get over it and get aggressive — after all, arrival, thanking them for allowing you the
sites, i.e., Edmunds, Google and your the original pricing and the first e-mail opportunity to earn their business.
factory OEM site (like Chevy.com), and don’t really matter anyway. Two reasons
shop for a vehicle. Pick out the exact same for this: First, more than 90 percent are If you’ve ever been out to dinner, then you
vehicle on each site, and configure it with going to purchase a different vehicle can appreciate the difference between a
the same options and equipment. You’ll be anyway, and secondly — and most good waiter/waitress and a poor one. How
amazed at what you get back. Chances are importantly — they are going to purchase did you tip the good server? A car deal
you’ll get back three different e-mails (all from someone they trust and like. is no different. People will pay you for
too long and wordy) with different prices exceptional service and the perception of
and information. And we wonder why our So how do we become that dealer they a fair deal —which is entirely up to you to
customers still don’t trust us? trust and like? Well, first we need to define.
understand why our customer went online
The technology of today is changing faster in the first place, instead of just walking in So the next time one of your sales people
than any of us can keep up with. What the front door. brings you an Internet customer, embrace
currently seems popular and “hip,” like the opportunity, get out your umbrella and
video e-mails, blogs, etc. will be replaced It’s simply honestly. They want to avoid go to work.
by the latest trend all too soon. So what the perceived traditional buying process
can we do to simplify the process and and they want a “fair” deal. In my travels Darren Haygood is a national consultant
improve our results? all around the country, the dealers who and trainer with Ziegler
have the most successful Internet sales SuperSystems. He can be contacted at
First, we need to change our thinking. departments understand and execute this 866.902.7379, or by e-mail at
22
The Internet has become a marketing tool process very clearly. dhaygood@autosuccessonline.com.
www.autosuccessonline.com

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23. MS
AnjanJ.Shah
marketingsolution
DIAMOND AUTO DRIVES TRAFFIC AND CAPTURES
NEW SALES WITH VIRTUAL DEALERSHIP AND
UPDATED INTERNET STRATEGIES
Recently, The revamped the dealership’s auto responders. site every day.” Other aspects of the site
Diamond Auto “They’re short and sweet, and we’ve given that are drawing a lot of attention are the
Group of Worcester and Auburn, them personal touches that address what pop-up coupon, the “make-an-offer” page
Massachusetts partnered with a digital the customer is looking for specifically,” and the trade-in page, where customers can
marketing consultant to give their Web he said. To achieve appointment show enter their vehicle’s information and find
site a completely new look, elegant flair and closing ratios, Diamond ensures the value of their trade-in. There’s so much
and in-demand functionality to create that everything they do leads to the to do on the site that more than 42 percent
a virtual dealership. Investing in a new appointment. of the site’s visitors stay for at least five
site, with all the backbone behind it to minutes.
create a compelling virtual dealership, Although Diamond Auto recognizes
has helped Diamond Auto increase Web that automation is important, they also These features, along with a customer-
traffic and sales. understand that “you have to be careful, centric focus, are setting Diamond
because you don’t want to become a Auto apart from the competition. In the
“Our old Web site was very busy, and cookie cutter. You want to be that pink dealership’s local areas, there are 14 Chevy
some described it like the front page of the house on the block,” Cronin said. To that stores, but Diamond Auto’s site is No. 1.
New York Times; too much information end, Cronin studies the nation’s top 10 “Whereas we used to fall into the crowd
thrown all over the home page,” said Mike dealerships in addition to the other dealers with an average Web site, our presence is
Cronin, Diamond Auto’s Internet Sales in his area, then times the Web site e-mails now known in our market,” Cronin said.
Director. The dealership also felt that the to arrive “off-kilter” from the competition. To help drive additional traffic to the site,
previous site was not user friendly and that And, when leads come in, Diamond Auto Diamond Auto advertises on radio and TV
customers had too many options displayed follows a timeline to ensure each lead as well as in the newspaper, and the Web
inconsistently. is handled correctly, from start to finish. address is part of every advertisement.
“We’re definitely a force to be reckoned
But thanks to rebuilding the site, it is now with,” he said. With the success of the new virtual
generating twice as much traffic, hundreds dealership, it might be easy to forget that
of leads and outstanding closing ratios. Currently, Diamond Auto is in the midst people are involved. “The greatest success
“In fact,” Cronin said, “we set about 80 of updating its e-mail database to ensure of Diamond Auto is the accessibility of
appointments from our Web site each even higher delivery and open rates for our owner,” Cronin said. “While he has an
month. And more than 90 percent of the automated e-mails. But rather than office, he chooses to sit at a desk on the
those appointments show up. That ratio is relying strictly on third-party lead sources, sales floor, where he can talk to customers
through the roof.” Diamond Auto has taken a different path. and employees all day long.” Cronin’s
By hosting events in the communities and goal is to have people look at Diamond
Diamond Auto’s Web site attracts about collecting names and e-mail addresses from Auto and see people — “people you can
4,000 unique visitors each month. “From participants, Cronin expects to collect as trust and develop friendships with. Anyone
that traffic,” Cronin said, “we’re able to many as 125-150 fresh e-mails every week can sell a car, but when you sell a car and
capture about 200 leads monthly, with 75 to improve his database. your customer comes back with a friend
to 80 appointments being set from our or family member, then you’ve made a
Web site.” Diamond Auto’s Internet sales Cronin says that Diamond Auto friend.”
closing ratio is more than 54 percent, implemented several features for the Web
which translates into about 30 sales site that have been very popular with its
monthly— on top of the showroom’s sales. customers. “Our site is tailored to meet our
During its best month, Diamond made 55 customer needs, and we update content
Anjan J. Shah is the marketing programs
Internet sales. whenever we think it’s necessary,” he said. manager at ADP Dealer Services. He can
“But our most popular site is the Spanish be contacted at 866.922.0174, or by e-
To achieve these results, Cronin has language version. We sell cars on this mail at ashah@autosuccessonline.com.
26
www.autosuccessonline.com