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2011
JULY
The Pre-Owned Price Check                                      The Pre-Owned Price Check




                                                                         Customers trust the
                                                                        RealDeal Ref to show
                                                                            them a fair price.




                              RealDeal from vAuto
                            helps us make deals,
                                       not concessions.
                                                                        — Randy Wise, President
                                                                          Randy Wise Auto Team
                                                                          Flint, Michigan




         RealDeal is the industry’s first pre-owned price check for dealers. Show your customers how
         your price compares in your live market. Prove you have a fair price and protect your margins.
         With RealDeal, the latest innovation from vAuto, negotiate less and close more sales.

         Call 1.877.988.7648 today or visit www.vauto.com/realdeal to schedule a live demo.
AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccessonline.com.
                                                  THE #1 SALES-IMPROVEMENT MAGAZINE FOR THE AUTOMOTIVE PROFESSIONAL
                                                                                                                      Subscription rate is $69 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its
                                                                                                                      contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing
                                                                                                                      in this magazine or in respect of the content of any other magazine to which this magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a
                                                                                                                      Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or
                                                                                                                      services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220.
  2300 Hurstbourne Village Dr, Suite 1200 Louisville Kentucky 40299 | p 877.818.6620 / f 502.588.3170 | AutoSuccessOnline.com                                                                                                                                                                                                                                                                                                                                                                                                                                                            | info@autosuccessonline.com
  Susan Givens, Publisher                                                 Thomas Williams, VP & Creative Director                                                Dave Davis, Editor & Creative Strategist                                                                                                                                                                                         Brian Ankney, Account Manager                                                                                                                                                                                                                              Susie Horne, Account Manager
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       John Warner, Sales-Improvement Strategist
  sgivens1@autosuccessonline.com                                          design@autosuccessonline.com                                                           ddavis@autosuccessonline.com                                                                                                                                                                                                     super6@autosuccessonline.com                                                                                                                                                                                                                               shorne@autosuccessonline.com
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       jwarner@autosuccessonline.com
feature solution




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              marketing solution
                                                                                                                                                                         leadership solution



                                                                                                                                                                                                                                                                                                               sales & training solution
                                                                                                                                                                                                                    social media in The workplace: are you proTecTed?




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               direcT mail, TexTing, TelemarkeTing and any oTher
                                                                                                                                                                                                                                                                                                                                                                                                                                                              how To geT The feedback you didn’T wanT To hear




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         maTching your experTise To your perfecT markeT




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            leveraging The voice of The cusTomer To gain
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               whaT everybody oughT To know abouT e-mail,
                                                                                                                                                                                                                                                                                                                                                                                 how many phone calls can and should your




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         The new digiTal paradigm: Three equals one
                                                                                                                                                                                                                                                                        5 sTeps To sTop “under delivering” in The




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   inTerneT sTar alignmenT deTermines The
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   dealers find mobile apps help capture and retain customers

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                craigslisT Top 10 faqs for car dealers
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           how closing your mouth can help close more sales
                                                                                                                                                                                                                                                                                                                                           7 Tips To handle The issue of price



                                                                                                                                                                                                                                                                                                                                                                                                                            The ‘pr’s’ of greaT salespeople




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 understanding the new ecommerce model
                                                                                                                                                                                                                                                                                                                                                                                 inTerneT deparTmenT make?




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               direcT markeTing sTraTegy

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   success of your business
                                                                                                                                                                                                                                                                                                                                                                                                                                                              (buT really need To know)




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          car dealer promoTions:
                                                                                                                                                                                           beware of The drp Trap




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               more Than angry birds




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            compeTiTive advanTage
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               accelerate your sales success
                                                                                                                                                                                                                                                                        service deparTmenT
                   an interview with nickiAllen




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                silence pays




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SusanGivens           marketing solution



                    more Than
                    angry birds
                    dealers find mobile apps help capture and retain customers
A mere 12 months ago, if your dealership           As more people continue to migrate from a         Approximately 78 percent of people planning
had a mobile Website designed for multiple         standard mobile phone to a smartphone (40         to buy a vehicle in the next 12 months will use
technology platforms such as iPhone, Android       percent of the U.S. population owned at least     some sort of touch smart Web device (iPhone,
and Blackberry, and if your dealership employed    one smartphone by the end of 2010), app usage     iPod Touch, Android) during the purchase
texting in its marketing, you confidently could    will continue to skyrocket.                       process, according to a recent study by mobile
say your store was cutting edge.                                                                     ad platform GreyStripe.
                                                   It’s not just Angry Birds or other popular
But if that’s all you got today, you’re already    games designed for smartphones driving app        The study also shows 48 percent of people who
behind. Mobile Websites and texting are            usage. At least 78 percent of smartphone          say they will use a mobile Web-enabled device
yesterday’s news when it comes to mobile           owners use their device for shopping,             in their vehicle search will use them to conduct
strategies.                                        according to an Ipsos Study at the end of last    initial research into vehicles, 44 percent will
                                                   year conducted for Google.                        compare prices of different dealerships while on
The latest technology development dealers                                                            the lot, 32 percent will find a dealership using
should jump all over is mobile apps. Mobile        “It’s happening faster than all of our internal   their mobile device and 23 percent will actually
apps are compact software downloaded to the        projections,” Google Chairman Eric Schmidt        use their mobile device to contact a dealership.
smartphone that perform specific tasks. Why        noted at the Interactive Advertisers Bureau
are mobile apps important to your dealership?      Leadership Conference in April of this year.      Cars.com, which developed a mobile
Because they are becoming more important to                                                          application four years ago, gets 18 percent of its
your customer.                                     By 2015, more than $119 billion in commerce       traffic today from mobile devices – and much
                                                   will be conducted over mobile devices, says       of that on the weekends, which indicates people
App usage jumped a whopping 90 percent in          investment firm Morgan Stanley. Several           are using the application for actual car shopping.
2010, and as of the fourth quarter of last year,   studies show much of that commerce will
68 percent of smartphone owners used apps.         happen in automotive.                             AutoTrader.com, meanwhile, is getting




08          autosuccessonline.com
Salespeople quickly can access product
                                                                                                       benefits that are tailored to the customers’
                                                                                                       hot buttons (safety, performance, comfort,
                                                                                                       convenience, etc.), walk-around videos,
                                                                                                       pictures, videos about the dealership, certified
                                                                                                       programs, leasing, finance products and
                                                                                                       accessories, along with introducing the
                                                                                                       customer to the service department.

                                                                                                       “When used properly in the sales process,
                                                                                                       these showroom apps help salespeople increase
                                                                                                       their closing ratios, average gross profits and
                                                                                                       CSI because they can answer questions quickly
                                                                                                       while also building value in the dealership
                                                                                                       and the products they sell,” said Bruce Polkes,
                                                                                                       Hughes’ partner at IntellaCar.

                                                                                                       At one dealership, sales consultants using
                                                                                                       IntellaCar’s app sold at least four more
                                                                                                       vehicles per month while averaging 30 percent
                                                                                                       higher monthly gross. The team of five sales
                                                                                                       consultants return on investment was 2,676
                                                                                                       percent. Not only did sales and profit increase,
                                                                                                       their CSI jumped 47 percent.
nearly a million hits a month with its mobile       enhances the ownership experience. They use
application. Mobile users are most interested in    the app to deliver service reminders, recall       Dealers are also giving service customers access
finding vehicles for sale and locating a dealer,    notices, lease end tutorials, equity alerts and    to these apps on iPads in the service lounge
versus some of the more in-depth auto reviews       specials that bring the customer in more often     where they can view videos about additional
and “research and compare” functionality. Like      for service, repeat sales and referrals.           services like car detailing, dent removal and
Cars.com, much of its traffic occurs on the                                                            even new and used vehicle specials.
weekends.                                           By far, the most popular tool on
                                                    DealerAppVantage’s app is the ability to           Consumer Driven Solutions developed two
“Industry studies show approximately 17             schedule service, says Ed Louis, co-founder of     apps that help customers in the shopping
percent of the U.S. mobile audience are             the company. “It’s also easier for the customer    process — Car Factor and GroupCars.com.
“auto-intenders” — people who will buy a            to get to the dealer’s mobile site,” he says.      Using Car Factor, consumers can build and
new car over the next six months,” said Sean        “Customers aren’t typing the dealer’s URL into     compare vehicles, view vehicle reviews and
Wolfington, owner of www.Tier10Marketing.           the mobile browser anymore. Instead, they’re       obtain pricing.
com. “With 20 million auto-intenders in the         using the app to get there.”
mobile universe, and one of three of them                                                              It’s proving to be popular with customers.
using a mobile device at some point during          Selling customers on the advantages of             Car Factor is the No. 1 most downloaded
their vehicle search process, car dealers need to   downloading a dealership app to their mobile       automotive app in the world and has a four-star
capture this market.”                               device is easier than it was trying to obtain      user rating, the highest consumer rating of any
                                                    e-mail addresses a few years ago, Louis says.      automotive app in the App Store.
A well-designed mobile app can help dealers
capture those customers using their phones in       “One, you can put signs up all over the            GroupCars.com, lets consumers scan the bar
their shopping process.                             dealership promoting the app,” he says.            code on a vehicle’s MSRP sticker to obtain
                                                    “Service advisors can promote it, or the new       an immediate guaranteed low price on every
Hundreds of dealers have started providing          car delivery person can do it. There are a         vehicle in the dealer’s inventory.
apps to their customers following the               number of ways. You can even promote it to
purchase or service of a vehicle in the last        people who visit the dealership but aren’t ready   “Dealers can advertise that they can provide
few months. DealerAppVantage has created            to purchase by showing them how it can help        Instant Guaranteed Low Price quotes in 60
an app that’s been downloaded by more than          them in the shopping process.”                     seconds or less,” said Chad Collier, president
160,000 customers since last year. Using the                                                           of Consumer Driven Solutions. The
app, customers can schedule appointments,           IntellaCar, meanwhile, developed an app            GroupCars.com app will be available to the
get roadside assistance, find gas stations          for the iPad and other mobile apps to help         60+ million Costco, AAA and Navy Federal
with the cheapest gas, buy accessories, view        salespeople promote the dealership, vehicles,      Credit Union members through their auto
their owner’s manual, find their vehicle in a       finance, accessories and service. “Since most      buying programs that sold more than 300,000
crowded parking lot and receive alerts when         customers research online before visiting          vehicles last year.
the parking meter expires or when their kids        a dealership, they often know more than
are going beyond the speed limit.                   most salespeople about the vehicle they are
                                                    considering, and this knowledge gap can hurt       Susan Givens is the publisher of AutoSuccess.
Savvy dealers found the app improves                a salesperson’s credibility,” says Jim Hughes,     She can be contacted at 877.818.6620, or by
customer satisfaction and loyalty because it        co-founder of IntellaCar.                          e-mail at sgivens1@autosuccessonline.com.


                                                                the #1 sales-improvement magazine for the automotive professional                09
ChadPolk          marketing solution


                    craigslisT Top 10 faqs
                    for car dealers
Craigslist has been an incredible source of          4. i’ve been banned from craigslist.                  IP address. Your IP address can provide
leads and revenue for car dealers, but doing         how can i continue listing on the site?               the geolocation of your network. Now that
business with the site hasn’t come without           Assuming you have been banned in every way            craigslist knows your geolocation information,
peril. There are a multitude of posting issues:      (IP Address, MAC Address, craigslist account,         it can serve up the nearest city and know pretty
over-posting, posting too quickly, listings get      and duplicate content), you will need to create       accurately where you’re located. Don’t believe
flagged, accounts get banned, certain computers      a new craigslist account with a new e-mail            me? Go to www.whatismyipaddress.com and
get blocked, entire dealerships get banned from      address and then post from a different location       see for yourself.
posting… and the list goes on and on. The            (a different computer on a different network).
bottom line is that craigslist was not created for                                                         9. who can i call at craigslist to
commercialization, but instead as a community        5. can i post my cars directly to the                 talk about my issues?
service — so they have absolutely no desire to       site without a template?                              Nobody. Amazingly enough, there aren’t
cater to businesses using their Website.             Yes. In fact, it is a good practice to vary your      any service agents for you to speak with.
                                                     listings so you don’t get flagged for “duplicate      Earlier this year, I tried calling the phone
So how do you conduct regular business on            listings.” After logging in, simply click the         number listed on their WHOIS information
craigslist? I’ve unpacked the top 10 Frequently      “post to classifieds” link and follow the wizard.     for craigslist.org. After navigating the auto
Asked Questions about craigslist from our            It is a bit more work to copy and paste content       attendant for an hour, I finally got a billing
dealers to help you make craigslist a successful     and then upload photos, but it’s well worth the       person on the phone, who then sent me to
part of your marketing efforts (and ideally,         diversification of listing templates.                 “some guy” who told me exactly “we have less
drastically increase your sales).                                                                          than 30 people working here and don’t have
                                                     6. how can i post to multiple                         time for this phone call. Click.” True story.
1. how come i can post from home,                    cities on craigslist?
but not from my dealership?                          We get this question all the time from dealers,       10. is there a better time of
Craigslist has either blocked your dealership’s      but even still, we do not recommend this              day to post?
IP address or MAC address. An IP address is a        strategy. The best strategy is to post in your        No one has reliable data to show that certain
numerical label assigned to any network device       specific (or nearest) city and play within the        times of day are better to post. Prior to the
(a computer or network router, for example)          policies of craigslist. If you want to try to beat    April 22, 2011, changes made by craigslist,
and is used for communication on the Internet.       the system and try multi-city posting, then           much of the monitoring of the site was
Generally speaking, every computer inside            you’ll need to use a unique e-mail address for        manual or done by the community. The theory
your dealership network goes out to the              each account. Make sure that each account             was that posting earlier in the morning was
Internet with the same external IP Address. If       is always tied to the specific e-mail address         advantageous, because most of the site police
your IP address has been blocked, then any           associated with it. You’ll also be better             volunteers were on the west coast. As of the
computer using that IP address will be unable        off posting to each city from different IP            update on April 22, we now believe that many
to post to craigslist.                               addresses.                                            of the monitoring and security measures have
                                                                                                           been automated, so posting at certain times to
A MAC address is a unique identifier assigned        (Note: Multi-city posting is the fastest way to       avoid manual detection is no longer relevant.
to your computer for communication on a              get banned from craigslist. They do record the        Our recommendation is to diversify your
network. If your MAC address has been                location of your IP Address for each post, so         listing times (morning, afternoon and night).
blocked, then that specific computer is banned       eventually they will detect the over-posting.
from craigslist. The monitoring technology           It’s like playing a clam shell game — you             I can sum up all of these issues with one
used by craigslist can detect abuse and block        might get lucky a few times, but in the end,          question: “Why is it so difficult to work
either (or both) options.                            you’ll lose.)                                         with craigslist?” The answer: craigslist is
                                                                                                           an online classified community. The biggest
2. i could post earlier today,                       7. why are my listings getting flagged?               misunderstanding that dealers have about
but now i can’t post. why?                           Several conditions can contribute to your             posting is that craigslist simply doesn’t care
Craigslist issues temporary bans on accounts         listings getting flagged, but the two main            that you are there — period. The site deems
without notice. They don’t send you an e-mail        contributors are most likely other community          itself a “community service” for individuals,
or call you; you’ll just suddenly wonder why         members flagging your listings (because they’re       not companies, so they don’t care about
you can’t post listings. In many cases, this         trying to keep companies off the “community”          making it easy for you to post.
is brought on by over-posting or posting too         Website) or a competitor is probably flagging
frequently.                                          your listings to reduce competition. Best             If you’re already using craigslist, these
                                                     practices to avoid flagged listings are to not post   guidelines will help you improve your listing
3. why aren’t my listings showing                    the same vehicle twice in less than seven days,       strategy, and if you’re not using craigslist, this
up on craigslist?                                    randomize your posting template, and not to           list will help you drastically boost your sales.
In most cases, craigslist will take 15 to 20         post 100 percent of your inventory every day.
minutes to add a new listing to the site. If         Your best option is to post less than 15 percent
your listings don’t appear after 20 minutes,         of your inventory each day, with no more than
then something is going on. They’ve probably         10 cars posted daily.
placed a temporary ban on your account, but
they continue to let you post on the site. Our       8. how does craigslist know                           Chad Polk is the CEO of AutoRevo. He can
recommendation is to take a break from listing       what city i’m in?                                     be contacted at 866.873.0031, or by e-mail at
today and try again tomorrow.                        Whenever you post, craiglist records your             cpolk@autosuccessonline.com.


10          autosuccessonline.com
Search Engine Optimization • Social Media • Reputation Management • BDC Marketing

                                      • Leads by 50%
                                      • Sales by 20%
                                      • Your Online Reviews
                                      • ROI of Your Ad Budget
                                      • Your Digital Skills


 Tune-Up Your Sales & Digital Marketing




 September 21            Seattle

                                        The PCG Pit Stop® format is 1.5 days and designed to give dealers the
                                        opportunity to invest in educating their sta . The Saturday/Sunday
                                        dates are designed to minimize time out of the o ce.




                                       (888) 697-4167
“Serious buyers don’t just drive to car lots to randomly look
                             anymore. They know what’s there before they go. Your online
                             Web presence is critical to your dealership’s success.”

                           Nicki Allen, of Classic Mazda and Classic Chrysler Dodge Jeep
                          of Denton, Texas (in the Dallas/Ft. Worth area), knows that the
                          behavior of the car-buying public has changed; those who are
                         willing to adapt and stay ahead of the game will reap the rewards,
                         while those who continue to do “what’s always worked in the past”
                         will find themselves irrelevant or even extinct in the near future.

                         “I think that 100 percent of my Mazda customers have had some
                        contact with us online,” Allen said. “From the information we track,
                       I’d say close to 70 percent of my overall sales come from Internet
                      sources monthly.” Classic has a strong Internet presence and Nicki
                      understands the key to success is the sales processes. “I believe we’re
                     currently fifth highest in the nation for our Mazda close ratio with
                    between 32 and 37 percent closing average. We put a lot of focus on
                    using our technology to provide a consistent message.”

                     While the Internet numbers from her Chrysler/Jeep/Dodge dealership don’t
                    currently add up to that level because of the consumer target audience of
                   those models (“Dodge customers will still pick up a newspaper,” she said),
                  it still makes up about 40 percent of total sales with this number climbing.
                 “Our used sales are about 30 to 35 percent Internet driven, but again, I’d say
                that 100 percent of those had at least touched us online in some way, shape or
               form,” she said.

                 While Allen has only been in the industry full-time since 2006, she’s seen how
                it has evolved through her entire life. “I grew up in the automotive industry,”
               she said. “My grandfather was a dealer and my father has been very successful
              as a dealer, winning several Presidents’ awards along with serving on dealer
             councils. I swore I would never join the business, I hated the hours, the stresses
            and the ups and downs I saw my family go through for so many years.” Nicki and
            her father discussed the changes in the industry and how technology was going
           to be the key. “He basically said, ‘This is your opportunity if you want to get in
          the car industry and make a difference.’ I was determined to make car selling and
         buying an easier, more efficient road to navigate and endure. I started in finance, and
         I’ve done a little bit of everything throughout the store since then.”

        The Classic Auto Group has been in a state of change ever since. “We built the Mazda
        building in October of 2006, and were the first ‘Retail Revolution’ store (a Mazda-
       led program that empowers the customer) in Dallas/Ft. Worth,” she said. “We also
      revamped and remodeled our Chrysler, Jeep, Dodge and Ram building that added 4,000
     square feet, which we completed this February.”

     It wasn’t long after Nicki got into the business that the global recession chilled the entire
    industry. Fortunately, she said, her auto group rode out the storm. “The market is turning
    back around and everything is falling back into the normalcy of what it used to be,” she
   said. “We are doing about 175 to 200 a month between all three buildings.”

  While sales might be returning to “normal,” the way those sales are conducted are different
 from the way it was done in past generations. The Internet has been a game changer, and the
 customers coming to the dealership now are a different breed from those who came before.

“When I first got into the automobile industry, it kind of amazed me that the industry, as a
whole, seemed to be about seven years behind the trends of other retail          completely different experience from what most customers have, and
verticals,” Allen said, “There really was this ‘good ol’ boys’ club that         that’s why they always come back to us.”
everyone refers to. So many times people do things just because it used to
work. When I came in and started to take a closer look at things, we began       Really understanding what customers are looking for has proven
to make decisions based on return on investment and managed what it was          to be vital to the dealership’s sales process. “Everyone thinks that
actually costing us to sell vehicles. We started to base it on what makes        customers are just looking for the bottom price,” Allen said. “They
sense, and busted up that ‘good ol’ boys just doing stuff to do it’ attitude.    don’t necessarily do that — they will pay for a better experience. The
Being a female and being a dealer, I have two huge targets on my back,           online experience, especially with Mazda, is just enormous. Customers
so it’s been interesting to dig in deep and get to know people and see how       want to communicate in the way most convenient and relevant to
they think with the goal of changing those perceptions and bringing them         them, and trying to fight that just doesn’t work the way that it used to.
up to speed where needed in catching up our processes.”                          Customers are taking control of the situation, and that’s good — it’s
                                                                                 the second largest purchase they’ll probably make.”
Leveraging technology and the Internet as a tool to its fullest was one of
the key ingredients of stepping into the modern retail age, Allen noted.         Allen found that one way to make sure that customers are treated
“Our Website is strong,” she said. “We dominate our area with SEO, but           well, and treated consistently, was to make sure the sales process
our presence is also felt in surrounding states. In the past year our Internet   was smooth and uniform and their digital system helped that to
traffic has more than quadrupled and we are continually monitoring               be the case. “Everything goes into our CRM; it’s the backbone
the behaviors to improve the shoppers’ experience. We do SEM along               of the entire company,” she said. “Every call gets logged. We
with social media and online reputation management, and leverage                 do Website tracking, leads, service, appointment scheduling,
what’s currently going on out there with the market, customers and the           all the reporting…. It’s literally the pulse of everything we
manufacturers. It’s about providing a good experience and building a             do. It takes out so much of the clutter and the way we used to
relationship with customers through e-mail, video or text messaging as           do things. Removing that waste gives us the time to actually
their preferred method of contact — the same way you would if they were          produce an amazing experience for our customers and really
right there in front of you.”                                                    make us stand out. We’re not running around scatterbrained
                                                                                 — we know everything about a customer right there. It’s an
Both streamlining what did work and dropping what no longer worked               enormous help.”
proved to be an effective combination. “I stopped advertising for Mazda
in the newspaper — that saved me $50,000 a month and our cost per sale           This low-pressure culture works on both sides of the table;
decreased 38 percent,” Allen said. Finding the right digital provider was        a casual dress code and lack of unnecessary drama help
key for getting their online operations smoothed out, and Classic went with      Classic’s staff work the system the way it’s designed to
VinSolutions. “When we brought in VinSolutions and their one-source              be worked — to help the customer. “Customers just feel
integration for CRM, and were able to eliminate so many other products           more at home with us,” Allen said. “They choose to
we were using — that was a huge win,” she said. “We had one person               service with us because of that. We sell so much out of
doing one thing and another doing another in the sales process. After Vin        our market into our competitor’s markets because we
came in, we were able to set those up automatically to make sure that            make a huge difference with the experience. We put the
customers got the same experience every time.”                                   customer first and take care of them. We’re not worried
                                                                                 about how much money we’re going to make or
“Customer experience,” Allen said, “is crucial to building a sustainable         anything like that; we want to build a repeat customer
business.” Classic’s tag line — “Relax and Enjoy the Difference” has been        for life, not just focus on the one-time car purchase.
changing the way people buy cars in the Dallas/Fort Worth area for around        I like to tell dealers that and they kind of laugh at
two decades and sums up that philosophy.                                         me, but our closing percentages have gone from the
                                                                                 traditional levels to 26 percent on average.”
“(That phrase) means everything to our employees and to me,” she said.
“We really do business in a different way and we carry a very good
reputation. About 80 percent of our customers are return customers.”
Eliminating high-pressure pitches was one of the first things done to
bring their motto to life in the dealership. “When people come in, our           For more information about Nicki Allen or
salespeople don’t work interest rates on the floor, and they don’t work          Classic Mazda and Classic Dodge, visit
                                                                                 www.classicofdenton.com.
payments on the floor — none of that,” she said. “When a customer
comes in, the salesperson’s responsibility is to provide them with product       For more information about VinSolutions,
knowledge on the vehicle, to find the right vehicle for the customer that        contact the CSO, Sean Stapleton. He can be
fits their needs and to listen to the buyer to ensure they’re making the         contacted at 866.240.1996, or by e-mail at
right choices. The finance department then takes care of payments. It’s a        sstapleton@autosuccessonline.com.
MarkTewart           sales & training solution



                   7 Tips To handle The
                   issue of price
Tip no. 1: Avoid the Myth — “Salespeople          Tip no. 4: Set the Stage — How do you              buying patterns and preferences. You will
create numbers and managers create gross.” This   address price? Are you practicing stone-age        create role reversal in the selling process and
statement is a myth. How well a salesperson       sales techniques? Do you actually believe, as      discover how the customer communicates.
establishes a relationship with a customer        many sales trainers teach, that you can avoid      The customer will explain what their “hope
and asks questions that uncover wants,            the issue of price? Notice I said the “issue.”     for gain” is by communicating their dominant
needs, emotions, previous buying patterns,        You would not stand for old-school “avoid          keywords. About 95 percent of your customers
communication styles, the customers HFG (hope     and evade” techniques, and neither will your       will have one or two keywords that they repeat
for gain) and more will determine gross profit    customers. Try setting the stage for price         over and over that will communicate what is
more than anything a manager can ever do.         by addressing how you and your dealership          most important to them.
                                                  handles price. There’s an old saying that “You
A salesperson must create a buying                can’t sweep crap under the rug and expect the      After you first greet a customer and begin to
environment and experience that transcends        stink to go away.” Address the issue of price up   communicate, tell them the following, “Let’s
price. The price pendulum works. When value       front and with confidence. You will notice the     walk over to your vehicle for a quick second
exceeds price, people buy. The value can be       trust and comfort you create with customers        for two reasons. One reason is I can get all the
perceived in many forms and channels. Value       because of this.                                   information about your vehicle so when the
can be perceived in the 3M’s: Money, Me                                                              market value is being determined I will have
and Machine. Value can be communicated            Tip no. 5: What do you say? — Don’t wing           all the information necessary and that will save
emotionally, logically, experientially,           it. Know exactly what to say to a customer         you a bunch of time. Secondly, as I am getting
conceptually, fear based, happy based, product    when the customer asks you what your best          the information I want to ask you a couple of
based, salesperson based and more.                price is. Competence = Confidence. When            questions about the vehicle and from this I
                                                  you are competent in handling the question,        usually come up with a few ideas to save you
Tip no. 2: Sell Apples to Oranges — What          your confidence goes up and the customer           some money, fair enough?”
is different about your sales process that        will follow you anywhere and do anything.
creates “WOW?” What makes your process            Example: “Absolutely! I will get you pricing       Notice I am anchoring in two things: saving
so much better that price becomes less of an      on anything you want. The price on every           time and saving money. Your customers all
issue? Create “apples to oranges” choices         vehicle on the lot will vary somewhat because      want to save time and money. Perception is
and distinctions on Money, Me and Machine.        of the following: Time in inventory, supply        reality. You are setting the perception of reality
Example: Use a different meet and greet such,     and demand of the vehicle, current factory         to save time and money. You are talking the
as “Hi, folks, welcome to ABC Motors. Are         programs and dealership promotions. Let me         language of the buyer.
you out beginning to look and shop around?”       get you the correct price based upon on those
This takes the traditional response of “I’m       factors. By the way, so I can get you the best     Tip no. 7: Practice Give/Get — Never give
just looking” away but does so in a positive      price, let me ask you…”                            something without asking to get something in
manner. If you receive an e-mail contact, then                                                       return. This establishes value in your price,
use video e-mail to contact the customer back.    step 1 – Listen                                    your proposal of the price and you. You are
You will be unique from all other dealerships     step 2 – Agree (“Absolutely!” “Sure!” “You         also establishing some pain to the practice
who reply back to the customer. First             bet!”)                                             of the customer asking. If you give without
impressions count.                                step 3 – Address (use a word track like the        asking for something in return then you are
                                                  one above)                                         rewarding the act and associating the emotion
Tip no. 3: Walk the Wheel — Draw a circle         step 4 – Segue (bridge from the addressing of      of pleasure to the act of asking. Like Pavlov’s
and draw a series of lines coming out of the      the question to redirecting using a phrase, such   dog, what gets rewarded gets repeated.
circle all around the circle. On one side of      as “By the way...”)
the line, you have one option. As an example,     step 5 – Redirect (ask questions about car         To receive the free special report “Increasing
you could have “financing,” and then on the       buying and car trading)                            Sales and Profits by Handling Objections”
other side “leasing.” You could have a line                                                          e-mail me at the address below with the word
with “long-term financing” and then “short-       Tip no. 6: Dig Deeper, Dig Deeper, Dig             “Objections” in the subject line.
term” on the other. Keep doing this until you     Deeper — Most salespeople go skin deep
exhaust every possible scenario you can think     with customers, but you could and should dig       Mark Tewart is the president of Tewart
of. When you think of better options, the issue   deeper. Go deeper by going to their trade-         Enterprises, and the author of the best seller,
of price will become lesser in consideration.     in first. When you go to the trade-in first,       How To Be A Sales Superstar. He can be
Your competition will often be very narrow in     you are going to their comfort zone. When          contacted at 866.429.6844, or by e-mail at
their focus.                                      you go to the trade-in first, you unlock their     mtewart@autosuccessonline.com.




14          autosuccessonline.com
DaveDunn         leadership solution



                   beware of
                                                                                                 work in the door, plus exposure to customers
                                                                                                 they previously had no relationship with.



                   The drp Trap
                                                                                                 The down side
                                                                                                 There is, however, a real downside to consider.
                                                                                                 Once the insurance company starts directing
                                                                                                 large amounts of work to you, they inevitably
                                                                                                 start exercising some control over pricing and
All too often, dealer bodyshops think that the answer to their problems is chasing and signing   operations, as well. The pricing pressure can
up as many DRPs (direct repair programs) as possible. Certainly there can be some positives      be severe, and all of a sudden your margins
that come from having work directed or referred to your shop. For one, the average consumer is   suffer. Additionally, employee morale can be
fairly easy to steer or intimidate into going wherever the insurance company recommends. Since   affected as the insurance directions may not
the average consumer only visits a bodyshop once every seven or eight years, they are often      always be the best way to properly repair a car
ambivalent as to whom they choose for crash repairs. The upside for the dealer shop is more      in the eyes of your technicians. The pressure
                                                                                                 to use generic parts rather than OEM parts is a
                                                                                                 real source of frustration to many on the repair
                                                                                                 side of things. The dealer should be selling

    Is Business Falling Through the                                                              their own parts, rather than chasing all over the
                                                                                                 country for used or aftermarket parts.




     CRACKS
                                                                                                 The real issues
                                                                                                 The aforementioned issues are real and
                                                                                                 almost always are debated when deciding on
                                                                                                 getting into bed with insurance companies.
                                                                                                 The real issues are more subtle, but perhaps
                                                                                                 more impactful. Bodyshop estimators must
                                                                                                 see themselves as salespeople and not simply
                                                                                                 technicians or order takers. All too often, the
                                                                                                 sales acumen of the estimators in a DRP shop
                                                                                                 becomes soft. The salesman may start feeling
                                                                                                 entitled to the business and be less inclined to
                                                                                                 improve their closing ability. Once this attitude
                                                                                                 creeps in, it is difficult to get the estimator to
                                                                                                 act like a professional salesperson. They often
                                                                                                 stop tracking key performance indicators like
                                                                                                 traffic, new sales and batting average. Should
                                                                                                 the DRP drop you for some reason, you also
                                                                                                 risk losing a large chunk of business in one fell
                                                                                                 swoop. What I see as an even bigger danger,
                                                                                                 however, is when the bodyshop manager pays
                                                                                                 more attention to the demands of the DRP-
                                                                                                 related customer and takes his proverbial eye
                                                                                                 off of the current relational customer who your
                                                                                                 dealership sells cars to. The current relational
                                                                                                 customer should never feel as if he or she is
                                                                                                 being treated as if they were a second fiddle.

                                                                                                 The decision to drp or not
                                                                                                 I am not anti DRP. I am, however, concerned
                                                                                                 at the lost good will and brand damage your

                         Let Us Close the Gap                                                    bodyshop can do to the dealership if these
                                                                                                 priorities are not kept in order. Remember
                                                                                                 to reinforce the importance of salesmanship
                                                                                                 constantly to your bodyshop manager. Above
                                                                                                 all, keep score. Track your traffic, new sales
                                                                                                 and batting average.

                                                                                                 If you respond to this article with full contact
                                                                                                 information at the address below, I will send
                                                                                                 you an electronic sales scoreboard which will
    WEBSITES | MARKETING | CRM | ILM | SEO | TRAINING | CONSULTING                               help you track your sales performance.


   877-319-9035 dealerhosts.com                                                                  Dave Dunn is the founder of Masters School
                                                                                                 of Autobody Management. He can be
                                                                                                 contacted at 866.386.0042, or by e-mail at
                                                                                                 ddunn@autosuccessonline.com.


16         autosuccessonline.com
AutoSuccess July 2011
AutoSuccess July 2011
AutoSuccess July 2011
AutoSuccess July 2011
AutoSuccess July 2011
AutoSuccess July 2011
AutoSuccess July 2011
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AutoSuccess July 2011
AutoSuccess July 2011
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AutoSuccess July 2011

  • 2. The Pre-Owned Price Check The Pre-Owned Price Check Customers trust the RealDeal Ref to show them a fair price. RealDeal from vAuto helps us make deals, not concessions. — Randy Wise, President Randy Wise Auto Team Flint, Michigan RealDeal is the industry’s first pre-owned price check for dealers. Show your customers how your price compares in your live market. Prove you have a fair price and protect your margins. With RealDeal, the latest innovation from vAuto, negotiate less and close more sales. Call 1.877.988.7648 today or visit www.vauto.com/realdeal to schedule a live demo.
  • 3.
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  • 6. AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccessonline.com. THE #1 SALES-IMPROVEMENT MAGAZINE FOR THE AUTOMOTIVE PROFESSIONAL Subscription rate is $69 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other magazine to which this magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220. 2300 Hurstbourne Village Dr, Suite 1200 Louisville Kentucky 40299 | p 877.818.6620 / f 502.588.3170 | AutoSuccessOnline.com | info@autosuccessonline.com Susan Givens, Publisher Thomas Williams, VP & Creative Director Dave Davis, Editor & Creative Strategist Brian Ankney, Account Manager Susie Horne, Account Manager John Warner, Sales-Improvement Strategist sgivens1@autosuccessonline.com design@autosuccessonline.com ddavis@autosuccessonline.com super6@autosuccessonline.com shorne@autosuccessonline.com jwarner@autosuccessonline.com feature solution marketing solution leadership solution sales & training solution social media in The workplace: are you proTecTed? direcT mail, TexTing, TelemarkeTing and any oTher how To geT The feedback you didn’T wanT To hear maTching your experTise To your perfecT markeT leveraging The voice of The cusTomer To gain whaT everybody oughT To know abouT e-mail, how many phone calls can and should your The new digiTal paradigm: Three equals one 5 sTeps To sTop “under delivering” in The inTerneT sTar alignmenT deTermines The dealers find mobile apps help capture and retain customers craigslisT Top 10 faqs for car dealers how closing your mouth can help close more sales 7 Tips To handle The issue of price The ‘pr’s’ of greaT salespeople understanding the new ecommerce model inTerneT deparTmenT make? direcT markeTing sTraTegy success of your business (buT really need To know) car dealer promoTions: beware of The drp Trap more Than angry birds compeTiTive advanTage accelerate your sales success service deparTmenT an interview with nickiAllen silence pays 26 24 20 36 42 18 38 16 14 32 40 10 30 34 08 28 marshBuice mattBaker TracyMyers scottJoseph mattLamoureux daveDunn markTewart JoelleJay skipMurphy brianPasch lonLeneve JohnCarpenter seanv.Bradley dougBurkert susanGivens chadPolk 12 0 6 32 1 1
  • 7.
  • 8. SusanGivens marketing solution more Than angry birds dealers find mobile apps help capture and retain customers A mere 12 months ago, if your dealership As more people continue to migrate from a Approximately 78 percent of people planning had a mobile Website designed for multiple standard mobile phone to a smartphone (40 to buy a vehicle in the next 12 months will use technology platforms such as iPhone, Android percent of the U.S. population owned at least some sort of touch smart Web device (iPhone, and Blackberry, and if your dealership employed one smartphone by the end of 2010), app usage iPod Touch, Android) during the purchase texting in its marketing, you confidently could will continue to skyrocket. process, according to a recent study by mobile say your store was cutting edge. ad platform GreyStripe. It’s not just Angry Birds or other popular But if that’s all you got today, you’re already games designed for smartphones driving app The study also shows 48 percent of people who behind. Mobile Websites and texting are usage. At least 78 percent of smartphone say they will use a mobile Web-enabled device yesterday’s news when it comes to mobile owners use their device for shopping, in their vehicle search will use them to conduct strategies. according to an Ipsos Study at the end of last initial research into vehicles, 44 percent will year conducted for Google. compare prices of different dealerships while on The latest technology development dealers the lot, 32 percent will find a dealership using should jump all over is mobile apps. Mobile “It’s happening faster than all of our internal their mobile device and 23 percent will actually apps are compact software downloaded to the projections,” Google Chairman Eric Schmidt use their mobile device to contact a dealership. smartphone that perform specific tasks. Why noted at the Interactive Advertisers Bureau are mobile apps important to your dealership? Leadership Conference in April of this year. Cars.com, which developed a mobile Because they are becoming more important to application four years ago, gets 18 percent of its your customer. By 2015, more than $119 billion in commerce traffic today from mobile devices – and much will be conducted over mobile devices, says of that on the weekends, which indicates people App usage jumped a whopping 90 percent in investment firm Morgan Stanley. Several are using the application for actual car shopping. 2010, and as of the fourth quarter of last year, studies show much of that commerce will 68 percent of smartphone owners used apps. happen in automotive. AutoTrader.com, meanwhile, is getting 08 autosuccessonline.com
  • 9. Salespeople quickly can access product benefits that are tailored to the customers’ hot buttons (safety, performance, comfort, convenience, etc.), walk-around videos, pictures, videos about the dealership, certified programs, leasing, finance products and accessories, along with introducing the customer to the service department. “When used properly in the sales process, these showroom apps help salespeople increase their closing ratios, average gross profits and CSI because they can answer questions quickly while also building value in the dealership and the products they sell,” said Bruce Polkes, Hughes’ partner at IntellaCar. At one dealership, sales consultants using IntellaCar’s app sold at least four more vehicles per month while averaging 30 percent higher monthly gross. The team of five sales consultants return on investment was 2,676 percent. Not only did sales and profit increase, their CSI jumped 47 percent. nearly a million hits a month with its mobile enhances the ownership experience. They use application. Mobile users are most interested in the app to deliver service reminders, recall Dealers are also giving service customers access finding vehicles for sale and locating a dealer, notices, lease end tutorials, equity alerts and to these apps on iPads in the service lounge versus some of the more in-depth auto reviews specials that bring the customer in more often where they can view videos about additional and “research and compare” functionality. Like for service, repeat sales and referrals. services like car detailing, dent removal and Cars.com, much of its traffic occurs on the even new and used vehicle specials. weekends. By far, the most popular tool on DealerAppVantage’s app is the ability to Consumer Driven Solutions developed two “Industry studies show approximately 17 schedule service, says Ed Louis, co-founder of apps that help customers in the shopping percent of the U.S. mobile audience are the company. “It’s also easier for the customer process — Car Factor and GroupCars.com. “auto-intenders” — people who will buy a to get to the dealer’s mobile site,” he says. Using Car Factor, consumers can build and new car over the next six months,” said Sean “Customers aren’t typing the dealer’s URL into compare vehicles, view vehicle reviews and Wolfington, owner of www.Tier10Marketing. the mobile browser anymore. Instead, they’re obtain pricing. com. “With 20 million auto-intenders in the using the app to get there.” mobile universe, and one of three of them It’s proving to be popular with customers. using a mobile device at some point during Selling customers on the advantages of Car Factor is the No. 1 most downloaded their vehicle search process, car dealers need to downloading a dealership app to their mobile automotive app in the world and has a four-star capture this market.” device is easier than it was trying to obtain user rating, the highest consumer rating of any e-mail addresses a few years ago, Louis says. automotive app in the App Store. A well-designed mobile app can help dealers capture those customers using their phones in “One, you can put signs up all over the GroupCars.com, lets consumers scan the bar their shopping process. dealership promoting the app,” he says. code on a vehicle’s MSRP sticker to obtain “Service advisors can promote it, or the new an immediate guaranteed low price on every Hundreds of dealers have started providing car delivery person can do it. There are a vehicle in the dealer’s inventory. apps to their customers following the number of ways. You can even promote it to purchase or service of a vehicle in the last people who visit the dealership but aren’t ready “Dealers can advertise that they can provide few months. DealerAppVantage has created to purchase by showing them how it can help Instant Guaranteed Low Price quotes in 60 an app that’s been downloaded by more than them in the shopping process.” seconds or less,” said Chad Collier, president 160,000 customers since last year. Using the of Consumer Driven Solutions. The app, customers can schedule appointments, IntellaCar, meanwhile, developed an app GroupCars.com app will be available to the get roadside assistance, find gas stations for the iPad and other mobile apps to help 60+ million Costco, AAA and Navy Federal with the cheapest gas, buy accessories, view salespeople promote the dealership, vehicles, Credit Union members through their auto their owner’s manual, find their vehicle in a finance, accessories and service. “Since most buying programs that sold more than 300,000 crowded parking lot and receive alerts when customers research online before visiting vehicles last year. the parking meter expires or when their kids a dealership, they often know more than are going beyond the speed limit. most salespeople about the vehicle they are considering, and this knowledge gap can hurt Susan Givens is the publisher of AutoSuccess. Savvy dealers found the app improves a salesperson’s credibility,” says Jim Hughes, She can be contacted at 877.818.6620, or by customer satisfaction and loyalty because it co-founder of IntellaCar. e-mail at sgivens1@autosuccessonline.com. the #1 sales-improvement magazine for the automotive professional 09
  • 10. ChadPolk marketing solution craigslisT Top 10 faqs for car dealers Craigslist has been an incredible source of 4. i’ve been banned from craigslist. IP address. Your IP address can provide leads and revenue for car dealers, but doing how can i continue listing on the site? the geolocation of your network. Now that business with the site hasn’t come without Assuming you have been banned in every way craigslist knows your geolocation information, peril. There are a multitude of posting issues: (IP Address, MAC Address, craigslist account, it can serve up the nearest city and know pretty over-posting, posting too quickly, listings get and duplicate content), you will need to create accurately where you’re located. Don’t believe flagged, accounts get banned, certain computers a new craigslist account with a new e-mail me? Go to www.whatismyipaddress.com and get blocked, entire dealerships get banned from address and then post from a different location see for yourself. posting… and the list goes on and on. The (a different computer on a different network). bottom line is that craigslist was not created for 9. who can i call at craigslist to commercialization, but instead as a community 5. can i post my cars directly to the talk about my issues? service — so they have absolutely no desire to site without a template? Nobody. Amazingly enough, there aren’t cater to businesses using their Website. Yes. In fact, it is a good practice to vary your any service agents for you to speak with. listings so you don’t get flagged for “duplicate Earlier this year, I tried calling the phone So how do you conduct regular business on listings.” After logging in, simply click the number listed on their WHOIS information craigslist? I’ve unpacked the top 10 Frequently “post to classifieds” link and follow the wizard. for craigslist.org. After navigating the auto Asked Questions about craigslist from our It is a bit more work to copy and paste content attendant for an hour, I finally got a billing dealers to help you make craigslist a successful and then upload photos, but it’s well worth the person on the phone, who then sent me to part of your marketing efforts (and ideally, diversification of listing templates. “some guy” who told me exactly “we have less drastically increase your sales). than 30 people working here and don’t have 6. how can i post to multiple time for this phone call. Click.” True story. 1. how come i can post from home, cities on craigslist? but not from my dealership? We get this question all the time from dealers, 10. is there a better time of Craigslist has either blocked your dealership’s but even still, we do not recommend this day to post? IP address or MAC address. An IP address is a strategy. The best strategy is to post in your No one has reliable data to show that certain numerical label assigned to any network device specific (or nearest) city and play within the times of day are better to post. Prior to the (a computer or network router, for example) policies of craigslist. If you want to try to beat April 22, 2011, changes made by craigslist, and is used for communication on the Internet. the system and try multi-city posting, then much of the monitoring of the site was Generally speaking, every computer inside you’ll need to use a unique e-mail address for manual or done by the community. The theory your dealership network goes out to the each account. Make sure that each account was that posting earlier in the morning was Internet with the same external IP Address. If is always tied to the specific e-mail address advantageous, because most of the site police your IP address has been blocked, then any associated with it. You’ll also be better volunteers were on the west coast. As of the computer using that IP address will be unable off posting to each city from different IP update on April 22, we now believe that many to post to craigslist. addresses. of the monitoring and security measures have been automated, so posting at certain times to A MAC address is a unique identifier assigned (Note: Multi-city posting is the fastest way to avoid manual detection is no longer relevant. to your computer for communication on a get banned from craigslist. They do record the Our recommendation is to diversify your network. If your MAC address has been location of your IP Address for each post, so listing times (morning, afternoon and night). blocked, then that specific computer is banned eventually they will detect the over-posting. from craigslist. The monitoring technology It’s like playing a clam shell game — you I can sum up all of these issues with one used by craigslist can detect abuse and block might get lucky a few times, but in the end, question: “Why is it so difficult to work either (or both) options. you’ll lose.) with craigslist?” The answer: craigslist is an online classified community. The biggest 2. i could post earlier today, 7. why are my listings getting flagged? misunderstanding that dealers have about but now i can’t post. why? Several conditions can contribute to your posting is that craigslist simply doesn’t care Craigslist issues temporary bans on accounts listings getting flagged, but the two main that you are there — period. The site deems without notice. They don’t send you an e-mail contributors are most likely other community itself a “community service” for individuals, or call you; you’ll just suddenly wonder why members flagging your listings (because they’re not companies, so they don’t care about you can’t post listings. In many cases, this trying to keep companies off the “community” making it easy for you to post. is brought on by over-posting or posting too Website) or a competitor is probably flagging frequently. your listings to reduce competition. Best If you’re already using craigslist, these practices to avoid flagged listings are to not post guidelines will help you improve your listing 3. why aren’t my listings showing the same vehicle twice in less than seven days, strategy, and if you’re not using craigslist, this up on craigslist? randomize your posting template, and not to list will help you drastically boost your sales. In most cases, craigslist will take 15 to 20 post 100 percent of your inventory every day. minutes to add a new listing to the site. If Your best option is to post less than 15 percent your listings don’t appear after 20 minutes, of your inventory each day, with no more than then something is going on. They’ve probably 10 cars posted daily. placed a temporary ban on your account, but they continue to let you post on the site. Our 8. how does craigslist know Chad Polk is the CEO of AutoRevo. He can recommendation is to take a break from listing what city i’m in? be contacted at 866.873.0031, or by e-mail at today and try again tomorrow. Whenever you post, craiglist records your cpolk@autosuccessonline.com. 10 autosuccessonline.com
  • 11. Search Engine Optimization • Social Media • Reputation Management • BDC Marketing • Leads by 50% • Sales by 20% • Your Online Reviews • ROI of Your Ad Budget • Your Digital Skills Tune-Up Your Sales & Digital Marketing September 21 Seattle The PCG Pit Stop® format is 1.5 days and designed to give dealers the opportunity to invest in educating their sta . The Saturday/Sunday dates are designed to minimize time out of the o ce. (888) 697-4167
  • 12. “Serious buyers don’t just drive to car lots to randomly look anymore. They know what’s there before they go. Your online Web presence is critical to your dealership’s success.” Nicki Allen, of Classic Mazda and Classic Chrysler Dodge Jeep of Denton, Texas (in the Dallas/Ft. Worth area), knows that the behavior of the car-buying public has changed; those who are willing to adapt and stay ahead of the game will reap the rewards, while those who continue to do “what’s always worked in the past” will find themselves irrelevant or even extinct in the near future. “I think that 100 percent of my Mazda customers have had some contact with us online,” Allen said. “From the information we track, I’d say close to 70 percent of my overall sales come from Internet sources monthly.” Classic has a strong Internet presence and Nicki understands the key to success is the sales processes. “I believe we’re currently fifth highest in the nation for our Mazda close ratio with between 32 and 37 percent closing average. We put a lot of focus on using our technology to provide a consistent message.” While the Internet numbers from her Chrysler/Jeep/Dodge dealership don’t currently add up to that level because of the consumer target audience of those models (“Dodge customers will still pick up a newspaper,” she said), it still makes up about 40 percent of total sales with this number climbing. “Our used sales are about 30 to 35 percent Internet driven, but again, I’d say that 100 percent of those had at least touched us online in some way, shape or form,” she said. While Allen has only been in the industry full-time since 2006, she’s seen how it has evolved through her entire life. “I grew up in the automotive industry,” she said. “My grandfather was a dealer and my father has been very successful as a dealer, winning several Presidents’ awards along with serving on dealer councils. I swore I would never join the business, I hated the hours, the stresses and the ups and downs I saw my family go through for so many years.” Nicki and her father discussed the changes in the industry and how technology was going to be the key. “He basically said, ‘This is your opportunity if you want to get in the car industry and make a difference.’ I was determined to make car selling and buying an easier, more efficient road to navigate and endure. I started in finance, and I’ve done a little bit of everything throughout the store since then.” The Classic Auto Group has been in a state of change ever since. “We built the Mazda building in October of 2006, and were the first ‘Retail Revolution’ store (a Mazda- led program that empowers the customer) in Dallas/Ft. Worth,” she said. “We also revamped and remodeled our Chrysler, Jeep, Dodge and Ram building that added 4,000 square feet, which we completed this February.” It wasn’t long after Nicki got into the business that the global recession chilled the entire industry. Fortunately, she said, her auto group rode out the storm. “The market is turning back around and everything is falling back into the normalcy of what it used to be,” she said. “We are doing about 175 to 200 a month between all three buildings.” While sales might be returning to “normal,” the way those sales are conducted are different from the way it was done in past generations. The Internet has been a game changer, and the customers coming to the dealership now are a different breed from those who came before. “When I first got into the automobile industry, it kind of amazed me that the industry, as a
  • 13. whole, seemed to be about seven years behind the trends of other retail completely different experience from what most customers have, and verticals,” Allen said, “There really was this ‘good ol’ boys’ club that that’s why they always come back to us.” everyone refers to. So many times people do things just because it used to work. When I came in and started to take a closer look at things, we began Really understanding what customers are looking for has proven to make decisions based on return on investment and managed what it was to be vital to the dealership’s sales process. “Everyone thinks that actually costing us to sell vehicles. We started to base it on what makes customers are just looking for the bottom price,” Allen said. “They sense, and busted up that ‘good ol’ boys just doing stuff to do it’ attitude. don’t necessarily do that — they will pay for a better experience. The Being a female and being a dealer, I have two huge targets on my back, online experience, especially with Mazda, is just enormous. Customers so it’s been interesting to dig in deep and get to know people and see how want to communicate in the way most convenient and relevant to they think with the goal of changing those perceptions and bringing them them, and trying to fight that just doesn’t work the way that it used to. up to speed where needed in catching up our processes.” Customers are taking control of the situation, and that’s good — it’s the second largest purchase they’ll probably make.” Leveraging technology and the Internet as a tool to its fullest was one of the key ingredients of stepping into the modern retail age, Allen noted. Allen found that one way to make sure that customers are treated “Our Website is strong,” she said. “We dominate our area with SEO, but well, and treated consistently, was to make sure the sales process our presence is also felt in surrounding states. In the past year our Internet was smooth and uniform and their digital system helped that to traffic has more than quadrupled and we are continually monitoring be the case. “Everything goes into our CRM; it’s the backbone the behaviors to improve the shoppers’ experience. We do SEM along of the entire company,” she said. “Every call gets logged. We with social media and online reputation management, and leverage do Website tracking, leads, service, appointment scheduling, what’s currently going on out there with the market, customers and the all the reporting…. It’s literally the pulse of everything we manufacturers. It’s about providing a good experience and building a do. It takes out so much of the clutter and the way we used to relationship with customers through e-mail, video or text messaging as do things. Removing that waste gives us the time to actually their preferred method of contact — the same way you would if they were produce an amazing experience for our customers and really right there in front of you.” make us stand out. We’re not running around scatterbrained — we know everything about a customer right there. It’s an Both streamlining what did work and dropping what no longer worked enormous help.” proved to be an effective combination. “I stopped advertising for Mazda in the newspaper — that saved me $50,000 a month and our cost per sale This low-pressure culture works on both sides of the table; decreased 38 percent,” Allen said. Finding the right digital provider was a casual dress code and lack of unnecessary drama help key for getting their online operations smoothed out, and Classic went with Classic’s staff work the system the way it’s designed to VinSolutions. “When we brought in VinSolutions and their one-source be worked — to help the customer. “Customers just feel integration for CRM, and were able to eliminate so many other products more at home with us,” Allen said. “They choose to we were using — that was a huge win,” she said. “We had one person service with us because of that. We sell so much out of doing one thing and another doing another in the sales process. After Vin our market into our competitor’s markets because we came in, we were able to set those up automatically to make sure that make a huge difference with the experience. We put the customers got the same experience every time.” customer first and take care of them. We’re not worried about how much money we’re going to make or “Customer experience,” Allen said, “is crucial to building a sustainable anything like that; we want to build a repeat customer business.” Classic’s tag line — “Relax and Enjoy the Difference” has been for life, not just focus on the one-time car purchase. changing the way people buy cars in the Dallas/Fort Worth area for around I like to tell dealers that and they kind of laugh at two decades and sums up that philosophy. me, but our closing percentages have gone from the traditional levels to 26 percent on average.” “(That phrase) means everything to our employees and to me,” she said. “We really do business in a different way and we carry a very good reputation. About 80 percent of our customers are return customers.” Eliminating high-pressure pitches was one of the first things done to bring their motto to life in the dealership. “When people come in, our For more information about Nicki Allen or salespeople don’t work interest rates on the floor, and they don’t work Classic Mazda and Classic Dodge, visit www.classicofdenton.com. payments on the floor — none of that,” she said. “When a customer comes in, the salesperson’s responsibility is to provide them with product For more information about VinSolutions, knowledge on the vehicle, to find the right vehicle for the customer that contact the CSO, Sean Stapleton. He can be fits their needs and to listen to the buyer to ensure they’re making the contacted at 866.240.1996, or by e-mail at right choices. The finance department then takes care of payments. It’s a sstapleton@autosuccessonline.com.
  • 14. MarkTewart sales & training solution 7 Tips To handle The issue of price Tip no. 1: Avoid the Myth — “Salespeople Tip no. 4: Set the Stage — How do you buying patterns and preferences. You will create numbers and managers create gross.” This address price? Are you practicing stone-age create role reversal in the selling process and statement is a myth. How well a salesperson sales techniques? Do you actually believe, as discover how the customer communicates. establishes a relationship with a customer many sales trainers teach, that you can avoid The customer will explain what their “hope and asks questions that uncover wants, the issue of price? Notice I said the “issue.” for gain” is by communicating their dominant needs, emotions, previous buying patterns, You would not stand for old-school “avoid keywords. About 95 percent of your customers communication styles, the customers HFG (hope and evade” techniques, and neither will your will have one or two keywords that they repeat for gain) and more will determine gross profit customers. Try setting the stage for price over and over that will communicate what is more than anything a manager can ever do. by addressing how you and your dealership most important to them. handles price. There’s an old saying that “You A salesperson must create a buying can’t sweep crap under the rug and expect the After you first greet a customer and begin to environment and experience that transcends stink to go away.” Address the issue of price up communicate, tell them the following, “Let’s price. The price pendulum works. When value front and with confidence. You will notice the walk over to your vehicle for a quick second exceeds price, people buy. The value can be trust and comfort you create with customers for two reasons. One reason is I can get all the perceived in many forms and channels. Value because of this. information about your vehicle so when the can be perceived in the 3M’s: Money, Me market value is being determined I will have and Machine. Value can be communicated Tip no. 5: What do you say? — Don’t wing all the information necessary and that will save emotionally, logically, experientially, it. Know exactly what to say to a customer you a bunch of time. Secondly, as I am getting conceptually, fear based, happy based, product when the customer asks you what your best the information I want to ask you a couple of based, salesperson based and more. price is. Competence = Confidence. When questions about the vehicle and from this I you are competent in handling the question, usually come up with a few ideas to save you Tip no. 2: Sell Apples to Oranges — What your confidence goes up and the customer some money, fair enough?” is different about your sales process that will follow you anywhere and do anything. creates “WOW?” What makes your process Example: “Absolutely! I will get you pricing Notice I am anchoring in two things: saving so much better that price becomes less of an on anything you want. The price on every time and saving money. Your customers all issue? Create “apples to oranges” choices vehicle on the lot will vary somewhat because want to save time and money. Perception is and distinctions on Money, Me and Machine. of the following: Time in inventory, supply reality. You are setting the perception of reality Example: Use a different meet and greet such, and demand of the vehicle, current factory to save time and money. You are talking the as “Hi, folks, welcome to ABC Motors. Are programs and dealership promotions. Let me language of the buyer. you out beginning to look and shop around?” get you the correct price based upon on those This takes the traditional response of “I’m factors. By the way, so I can get you the best Tip no. 7: Practice Give/Get — Never give just looking” away but does so in a positive price, let me ask you…” something without asking to get something in manner. If you receive an e-mail contact, then return. This establishes value in your price, use video e-mail to contact the customer back. step 1 – Listen your proposal of the price and you. You are You will be unique from all other dealerships step 2 – Agree (“Absolutely!” “Sure!” “You also establishing some pain to the practice who reply back to the customer. First bet!”) of the customer asking. If you give without impressions count. step 3 – Address (use a word track like the asking for something in return then you are one above) rewarding the act and associating the emotion Tip no. 3: Walk the Wheel — Draw a circle step 4 – Segue (bridge from the addressing of of pleasure to the act of asking. Like Pavlov’s and draw a series of lines coming out of the the question to redirecting using a phrase, such dog, what gets rewarded gets repeated. circle all around the circle. On one side of as “By the way...”) the line, you have one option. As an example, step 5 – Redirect (ask questions about car To receive the free special report “Increasing you could have “financing,” and then on the buying and car trading) Sales and Profits by Handling Objections” other side “leasing.” You could have a line e-mail me at the address below with the word with “long-term financing” and then “short- Tip no. 6: Dig Deeper, Dig Deeper, Dig “Objections” in the subject line. term” on the other. Keep doing this until you Deeper — Most salespeople go skin deep exhaust every possible scenario you can think with customers, but you could and should dig Mark Tewart is the president of Tewart of. When you think of better options, the issue deeper. Go deeper by going to their trade- Enterprises, and the author of the best seller, of price will become lesser in consideration. in first. When you go to the trade-in first, How To Be A Sales Superstar. He can be Your competition will often be very narrow in you are going to their comfort zone. When contacted at 866.429.6844, or by e-mail at their focus. you go to the trade-in first, you unlock their mtewart@autosuccessonline.com. 14 autosuccessonline.com
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  • 16. DaveDunn leadership solution beware of work in the door, plus exposure to customers they previously had no relationship with. The drp Trap The down side There is, however, a real downside to consider. Once the insurance company starts directing large amounts of work to you, they inevitably start exercising some control over pricing and All too often, dealer bodyshops think that the answer to their problems is chasing and signing operations, as well. The pricing pressure can up as many DRPs (direct repair programs) as possible. Certainly there can be some positives be severe, and all of a sudden your margins that come from having work directed or referred to your shop. For one, the average consumer is suffer. Additionally, employee morale can be fairly easy to steer or intimidate into going wherever the insurance company recommends. Since affected as the insurance directions may not the average consumer only visits a bodyshop once every seven or eight years, they are often always be the best way to properly repair a car ambivalent as to whom they choose for crash repairs. The upside for the dealer shop is more in the eyes of your technicians. The pressure to use generic parts rather than OEM parts is a real source of frustration to many on the repair side of things. The dealer should be selling Is Business Falling Through the their own parts, rather than chasing all over the country for used or aftermarket parts. CRACKS The real issues The aforementioned issues are real and almost always are debated when deciding on getting into bed with insurance companies. The real issues are more subtle, but perhaps more impactful. Bodyshop estimators must see themselves as salespeople and not simply technicians or order takers. All too often, the sales acumen of the estimators in a DRP shop becomes soft. The salesman may start feeling entitled to the business and be less inclined to improve their closing ability. Once this attitude creeps in, it is difficult to get the estimator to act like a professional salesperson. They often stop tracking key performance indicators like traffic, new sales and batting average. Should the DRP drop you for some reason, you also risk losing a large chunk of business in one fell swoop. What I see as an even bigger danger, however, is when the bodyshop manager pays more attention to the demands of the DRP- related customer and takes his proverbial eye off of the current relational customer who your dealership sells cars to. The current relational customer should never feel as if he or she is being treated as if they were a second fiddle. The decision to drp or not I am not anti DRP. I am, however, concerned at the lost good will and brand damage your Let Us Close the Gap bodyshop can do to the dealership if these priorities are not kept in order. Remember to reinforce the importance of salesmanship constantly to your bodyshop manager. Above all, keep score. Track your traffic, new sales and batting average. If you respond to this article with full contact information at the address below, I will send you an electronic sales scoreboard which will WEBSITES | MARKETING | CRM | ILM | SEO | TRAINING | CONSULTING help you track your sales performance. 877-319-9035 dealerhosts.com Dave Dunn is the founder of Masters School of Autobody Management. He can be contacted at 866.386.0042, or by e-mail at ddunn@autosuccessonline.com. 16 autosuccessonline.com