AutoSuccess Sep06

September 2006

Let’s Step It Up

866.386.7050Experience real Case Studies that can help your dealership immediately.

Dean EvansVice President, Field Marketing,

The Cobalt Group

You will learn:- Internet Marketing that

generates high-quality leads- Maximizing lead generation

from your Web site- Maximizing third-party

automotive sites- Metrics that matter: Focus on

return on investment

David KainPresident, Kain Automotive Inc. Internet & BDC Training

Specialist

You will learn:- Mapping out the best Internet

sales process- E-mail templates for the best short and long-term

communication- Phone script elements that turn

leads into appointments- Recruiting, hiring and

compensating for results

SeanWolfi ngton

Owner, BZResults.com

Case Study: How to use BDC/Internet departments to sell 100

- 500 extra cars a month.

You will learn:- How to set up a successful

BDC/Internet department- Use the Web to promote all your

profi t centers- Use the Web to drive showroom

& phone traffi c- Sell old stock, vehicles & parts

inventory- Use e-mail marketing to drive

more traffi c for zero cost

Chip PerryCEO and President,

AutoTrader.com

Internet Advertising Best Practices

You will learn:- How AutoTrader.com’s top performing dealers get their

outstanding results- Take home examples of

effective merchandising you can put to

immediate use

Scott JosephPresident & CEO,

J&L Marketing, Inc.

Case Study: New marketing strategy focuses on steady long

term growth. Dealership’s market share increases from 8% to

32% and grows net profi ts from $170,000 to over 2.2 million in

just two years

You will learn:- A growth strategy to grow your

profi t a minimum of 33% per year- New promotions strategy using

personalized Web pages and direct mail

- How to increase your fl oor traffi c during your slowest days

of the week

Call today to register. Seating is limited. toll free: 866.396.7050 web: www.autosuccessonline.com

Tuesday and Wednesday, November 7th and 8th 2006, at the Venetian Resort and Hotel, Las Vegas, NV.

Dealers & Managers Only!

Two days of intense learning. Dramatically improve your results.

Limited Seats,Register Today!

Case studies from successful dealerships across the country.

Classroom styles seating only $595. Special Venetian room rates for $209 per night.

Speakers and times subject to change

VSUMMITBEST PRACTICES

LEADERSHIP • INTERNET • CRM • MARKETING • BDC • SALES

Ralph PagliaCRM/eBusiness Director,

Courtesy Chevrolet

Case Study: How Courtesy Chevrolet’s business and CRM teams grew to over 400 vehicle

sales per month

You will learn:- How to grow your CRM and

Internet teams- What to measure, and how to collect the data...Performance

metrics that matter- Create a true CRM Profi t Center

- Manage your own SEM and online ad campaigns

- Use your BDC as a safety net for the Internet sales team

Roy ReutterSheehy Auto Stores

Case Study: Sheehy.com increases leads from 400 - 2400

per month

You will learn:- How to increase leads and sales

volume without increasing lead expense

- Improve sales and reduced cost per sale at the same time

- Improve profi tability by improving the quality of leads through your

own site- Increase closing ratios and

average gross profi t with profi t improvement

- Sell old stock units via the Web

Tony RimasRed McCombs

Case Study: Grow your Internet department through a defi ned process, effi cient staffi ng, and

strategic advertising

You will learn:- How to structure and staff low

volume of high volume dealership locations

- Create a process to support your customers and staff effi ciently

- Increase ROI through inventory selection and lead allocation

- Streamline online advertising to maximize Web site conversion

Mark TewartPresident, Tewart Enterprises

You will learn:- How to engage customers

intelligently while learning how traditional “meet and greet” strategies can reduce sales

- How to increase professionalism, write-ups and sales by eliminating

“Deal Killer” questions- How to defi ne and implement 5 universal laws that increase sales- How to improve gross profi ts by

implementing better proposals- How to reduce customer confl ict

and increase sales and gross profi t through better handling

of price, payment and negative equity objections

David Thomas

Owner, Subaru of Dallas

Case Study: How I lowered my advertising expense and increased my market share

You will learn:- About ‘Mooch Marketing’- Ways to advertise for free

-Low-cost marketing ideas that get noticed

- How to run events that get you noticed

- How to generate car reviews in your local paper

AutoSuccess Magazine is published monthly at 3411 Pinnacle Gardens Drive, Louisville, Kentucky, 40245; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or [email protected]. Subscription rate is $75 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 inwhole 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 thatnames be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3411 Pinnacle Gardens Drive, Louisville, Kentucky 40245.

8101112141617182021222627283031323637384042

Investing the Fundamentals, Part 3

10 Keys to a Winning Product Presentation

Addressing Client Concerns

It’s Still About Selling

Give Your Worries Up

Monopolizing on Search Engine MarketingDomestic Dealers Sell 300 - 500 Units With Search Engine Marketing

Marathons and Races: Which One Are You Running

Five Keys to Successful Automotive Marketing

Web AuditLeverage Customer Insight to Maximize Lead Generation and Accelerate Sales

100 Percent Turn Over to the Business Office

The Importance of Payments, Part 2: The Internet

Leadership Coming to Serve, Not to be Served

An Internet Department or an Internet Dealership

Generating Energy

Telling is Not Selling

Key Performance Indicators, Part 2

Where’s Your URL

1212

JimmyVee & TravisMiller

PaulAccinno

BrianTracy

SeanWolfington

CharlesArrambide

JesseBiter

TonyDupaquier

DavidKain

SeanWolfington

AllenCheek

PattiWood

TimShea

ZigZiglar

TomHopkins

RaquelSmith

MarkTewart

God is the source of all supply

RichardLibin

JeffMorrill

Reward for Improved Performance

MikeParsons

DavidJohnsonThe Internet Sales Process

How to Average $3,000 to $4,000Gross Profit per Vehicle Sold

HeatherConary

Are They LyingWhy It’s Hard to Tell and How You Can Become More Accurate

Resolving Disputes Without Going to CourtHow Binding Arbitration Can Help Reduce Risk

MichaelYork

Job 27:6

I will maintain my righteousness and never let go of it; my conscience will not reproach me as long as I live.

Courtney Paris, Sales-improvement Strategist [email protected]

Brian Ankney, Sales-improvement [email protected]

Brian Balash, Sales-improvement [email protected]

Charlie Tierney, Sales-improvement [email protected]

Toni Stephens, Sales-improvement [email protected]

3411 Pinnacle Gardens DriveLouisville, Kentucky 40245

toll free: 877.818.6620 facsimile: 502.588.3170 web: www.SellingSuccessOnline.com

Patrick Luck, Editor & [email protected] Susan Givens, Vice [email protected] Thomas Williams, Creative [email protected] Dave Davis, Creative Strategist & [email protected]

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Addressing Client Concerns

TomHopkinssts fos ls ms sf fi s

sales and training solution

8 www.sellingsuccessonline.com

The way you address client concerns will have a powerful impact on your overall success level. In many

cases, once concerns are addressed, the sale is made. You can go straight to asking for their approval on your paperwork. The foundation of addressing client concerns is a simple, six-step process that I’ve taught for many years: Step #1: Hear Them Out Let the client talk and talk and talk until you know as much as they do about their concern. If you try to address the concern before hearing all of what they have to say, you may end up answering a concern they don’t feel is all that important and/or bring up another concern they hadn’t even thought of. I’m sure you’ve had clients who tend to ramble when bringing up concerns. They may start in one direction with a concern, but end up somewhere else. You see, raising concerns is a defense mechanism for them. They react to the urge to go ahead by slowing things down with a concern. So, let them get it all out before attempting to address any point they’ve raised. I’ve had clients who talked themselves right through and out of their initial concern. I didn’t have to address it at all. If you feel they’re not telling you everything, encourage them to talk with phrases such as, “I see. Is there anything else that concerns you about this decision?” or “What concerns do you have about this…?” You want to know all the bad stuff, all the reasons for hesitation they have before you move on. If you don’t, you may fi nd yourself back at this point again with this client.

Step #2: Feed it Back Simply re-state the concern in your own words. “So your concern, John, is…” This accomplishes two things. First, you demonstrate that you really listened to the client. Second, you have the opportunity to get confi rmation from them that you understand their concern. Having someone understand you makes you feel closer to him or her. It creates a bond or common ground of sorts. It warms them up to accepting your advice on the subject at hand. Step #3: Question the Importance ofthe Concern This step can be tricky if not handled properly. You must gently ask if this concern would keep them from making the decision to go ahead if it cannot be overcome. It could be this concern is not all that important and the client will dismiss it when they consider if it would keep them from the benefi ts of your product. If it would stop the sale, you then proceed. Step #4: Answer the Concern Depending on the concern, you may be able to do this quickly or you may have to do a little research on behalf of the client. Either way, you need to demonstrate, above all else, a sincere desire to help them. You’re working for them at this point. You’re the industry expert and the research consultant at their disposal. This could also be a good time to ensure them that you wouldn’t want them to make a decision without having all the facts, or a decision that might not be exactly right for them. In answering the concern, you must consider it as you would a close. You have to appeal to their logic, yet close them emotionally. You’re helping them to rationalize the importance of the concern and the value of your answer.

Step #5: Confi rm the Answer Once you see signs that they’re agreeable to your answer and that it makes sense to them, make a simple statement of that fact. You could say, “That makes sense, doesn’t it?” If they agree, the concern is now behind you. If they show any hesitation at all, you must go back to Step #4 and come up with a better answer. If you feel there’s more they haven’t told you, warmly ask, “Obviously, there’s a reason for your continued hesitation. Would you mind sharing it with me?” It could be they’ve just come up with another concern and are uncomfortable telling you since they already told you above that it was their real fi nal concern. Always, always give your potential clients opportunities to save face if you see that they’re feeling hesitant or uncomfortable in any way. Step #6: Change GearsOnce the concern has been satisfactorily addressed, it’s time to move on. The simplest method I’ve ever used is the phrase, “By the way…” Then, I move onto the next area of discussion, changing gears so-to-speak to move on to the close or the next decision that must be made before closing. P.D.R. (Practice, Drill and Rehearse) these steps until they become natural to you. Try them with your spouse or children the next time a concern is raised. Then, you’ll be ready with enhanced skills when you meet your next future client.

World-renowned master sales trainer Tom Hopkins is the chairman of Tom Hopkins International. He can be contacted at 866.347.6148, or by e-mail [email protected].

The Driving Force Behind Automotive Advertising 866-665-5507

CALL FOR A FREE MARKET REPORT. EVENT SPECIALISTS ARE STANDING BY

Copyright © 2006 Turn-Key Events and it’s licensors.Market Exclusive

Dear Mr. Seimer,

Congratulations on another great sales event. I’m glad to hear that you’re very happy with the 62 units delivered and a gross profi t of $201,748.00. The best part is that you did it on your own, without a staffi ng company. This saved you $50,437.00. I’ll see you in a few weeks. Thanks again.

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10

Generating EnergyBrianTracy

sts fos ls ms sf fi s


You may have a thousand different goals over the course of your lifetime, but they all will fall into one of four basic

categories. Everything you do is an attempt to enhance the quality of your life in one or more of these areas:

The First Category is Your Desire forHappy Relationships.You want to love and be loved by others. You want to have a happy, harmonious home life. You want to get along well with the people around you, and you want to earn the respect of the people you respect.

The Second Category is Your Desire for Interesting and Challenging Work.You want to make a good living, of course, but more than that, you want to really enjoy your occupation or profession.

The Third Category is Your Desire for Financial Independence.You want to be free from worries about money. You want to have enough money in the bank so that you can make decisions without counting your pennies. You want to achieve a certain fi nancial state so that you can retire in comfort and never have to be concerned about whether or not you have enough money to support your lifestyle.

The Fourth Category is Your Desire For Good Health.Be free of pain and illness and to have a continuous fl ow of energy and feelings of well being.

The common denominator of these four goals, and the essential requirement for achieving each of them, is a high level of energy. The achievement of even a small amount of success in any one of these areas

requires the development and expenditure of energy. Energy is a critical fuel and the one ingredient without which no other accomplishment is possible.

Building and sustaining your energy level is imperative. Since your energy is central to everything you accomplish, you should be very sensitive to things that either build or deplete it. Here are six keys to building and maintaining a high level of energy and vitality:

1. Proper Weight. Carrying extra weight on your body is

like carrying a pack loaded with bricks on your back — uphill. Excess weight tires you out. It taxes your heart, lungs and muscles. Extra weight forces your body to burn up more energy than it normally would just to maintain life and proper functioning.

2. Proper Diet. The foods you eat have a tremendous

impact on your energy level throughout the day. Changes in your diet can make you feel fresher, more alive, more alert and fi lled with greater vitality than you can imagine.

3. Proper Exercise. The more regularly you exercise,

the more energy you have, the better you feel and the longer you will live. Regular exercise enhances your digestion, reduces the number of hours that you need to sleep, and increases your vitality in the physical, mental and emotional realms.

4. Proper Rest and Recreation. On average, you need seven to eight

hours of good, solid sleep each night. Some people can get by on less. But you should plan and organize your evenings

so that you are “early to bed and early to rise.” Remember, nature demands balance in all things. If you are going to work hard during the day, you must take time off to rest and recuperate in the evenings and on the weekends.

5. Proper Breathing. By breathing, I mean deep diaphragmatic

breathing, where you fi ll your lungs to the count of 10, hold to the count of 10, and then exhale to the count of 10. If you do this seven to 10 times, two or three times per day, you will be amazed at how much fresher and more relaxed you feel.

6. Proper Attitude. Positive mental attitude seems to go

hand-in-hand with great achievement and success in every walk of life. The more positive you are, the more energy you have. The more positive you are, the happier you are. The more positive you are, the more positive are the people and situations you attract into your life. The more positive you are, the easier it seems for you to get the cooperation of other people. The more positive you are, the more effectively you perform.

Everything that you do counts in some way. Nothing is neutral. Everything either helps you or hurts you. Everything either adds up or takes away. Everything either propels you toward your goal or moves you away from it. Everything counts.

Brian Tracy is the chairman and CEO of Brian Tracy International. He can be contacted at 866.300.9881, or by e-mail at [email protected].

www.sellingsuccessonline.com

Telling is Not SellingZigZiglar



MarketView360 is a fast growing, leading-edge, multi-channel marketing solution

that is designed to more effectively and efficiently reach your customers through

various mediums, including Target Email, Target Voice, Target Text Messaging,

Target Mail, and much more. The result is the deployment of highly personalized,

powerful and targeted communications at the right time with the right medium.

Call 1.866.591.4238 or visit www.marketview360.com

to find out more about Marketview360

Have you Text Messaged Your Customers Today?

The Most Intelligent Multi-channel Marketing System On The Planet

11september 2006

As a sales professional, do you spend more time telling or more time asking? If you were to record your sales interview, you’d

probably fi nd you are spending more time talking than asking questions and listening.

During a sales interview, you must identify the needs, issues and concerns of the customer. The best way to achieve this is to ask questions. Then connect the answers to the needs and wants of the customer to your product.

Questions are the sales professional’s most valuable tool. We need to be reminded to ask the right question and ask the question right.

There are several questioning types and techniques. Let’s cover four types of questions that you can implement today. They are the C.O.R.D. questions. This stands for Closed questions, Open questions, Refl ective questions, and Direct-agreement questions.

Closed QuestionsThese are questions that have one-word or “closed” answers. At the beginning of the sale call, these should be seldom used. When using these, the sales person is not giving the customer an opportunity to expand on the answers. Let’s say you are trying to identify the buying criteria of a customer. You can ask: “In purchasing a car, are monthly payments important to you?” The answer may be “yes.” You may have to ask another question to identify other important criteria. It may be better if you had asked an open question.

Open QuestionsThese questions solicit “open” information. You not only gain facts, but also information. These questions usually begin with who, what, why, when, where and how. For example, when trying to identify buying criteria, you may want to use: “What are the top criteria you need when making this type of purchase?” The answer to this question gives you insights into why these criteria are important.

Refl ective QuestionsThese are questions that refl ect on previous answers. In the above conversation, the customer mentioned a “good, quality service department” in one of the answers. You can now go back and gain additional information with a refl ective question. For example, “what did you mean by good, quality service?”

Direct Agreement QuestionsThese questions gain agreement from the

customer. These should be used when you are sure of the answer. They are usually answered with one word … and that word is usually “yes.” For example, “Mr. Customer, if we can meet your demand for fair trade in amount, will we have a deal?”

Questions are a sales professional’s best asset.

Learn to ask the right question in the right way.

Zig Ziglar is the chairman of the board of Ziglar Training Systems in Dallas, TX. This article was reprinted with permission. All rights reserved. He can be contacted at 866.873.0026, or by e-mail [email protected].

12 13

fs feature solutionSeanWolfi ngton

Understanding the GameWould increasing your online sales from 40 vehicles per month to more than 500 vehicles per month get you excited? Red McCombs Automotive Group in San Antonio, Texas, did just that by implementing an Internet marketing strategy alongside a Search Engine Marketing (SEM) program to increase their monthly sales while reducing advertising expenses.

“We realized that in order to increase our sales, we needed to increase our traffi c,” said Tony Rimas, director of eCommerce for Red McCombs. “To accomplish that, we changed our marketing strategy and implemented an SEM program to attract more quality traffi c for less cost. Our new strategy drives more traffi c, generates more sales, is easy to measure, and actually costs less than the traditional advertising methods we were previously using.”

Your MoveWhat is all the excitement about Internet marketing? The Internet offers unique opportunities to create real-time, trackable interaction with customers and prospects, developing an understanding of their individual needs and concerns from the beginning of their online search.

• Special offers can be directed towards customers with specifi c interests.

• Pricing strategies can refl ect best customer buying habits and loyalty patterns.

• Detailed online product/service information can shorten buying cycles.

Ralph Paglia, eCommerce Director for Courtesy Chevrolet in Phoenix, Ariz., shifted marketing dollars from newspaper to online marketing. “I took a look at how much we were spending on conventional advertising and tracked that for a few months before making the decision to transition away from print, TV and radio and move toward digital marketing,” Paglia said. “Our return on investment has gone up, our cost per sale has dropped and our traffi c and incremental sales have skyrocketed.”

The Rules of the GameSearch engine marketing should be part of any dealership-marketing program. Research confi rms that over 80 percent of prospective Web customers begin by using search engines to locate products, services or information. Ensuring that your Web site is found when a consumer uses a search engine is a complex and time-consuming effort. Because the vast majority of consumers now use a search engine to fi nd what they are looking for, being on the fi rst page of the search results is imperative if your dealership wants to see a return on your investment. The two most popular ways to advertise Web sites are through search engine optimization (SEO) and pay per click (PPC) advertising. The goal of each of these methods is to attract consumers searching for vehicles onto your dealership’s Web site.

Search Engine Optimization (SEO)SEO involves the ongoing process of creating, developing and coding your dealership’s unique Website in order to to maximize the chance that its pages will appear at the top of the “organic” or “natural” search engine results. SEO is a gradual process that can take weeks or months to achieve.

Search engines determine your ranking in the organic search results primarily by analyzing your Web site for the following:

• Keyword relevance—how relevant the keyword phrase is used in your Web site’s copy

• Link popularity—the quantity and quality of third-party sites that link to your Web site

Pay Per Click (PPC)One of the most cost-effective and most immediate ways to advertise on the Internet today is to use Pay Per Click (PPC) marketing. PPC advertisements are the boxes usually shown on the right hand side of search results and

are displayed when a searcher types in the key phrases which you have selected. The ads work by bidding on keywords and phrases; the more you agree to pay per click for that keyword, the higher your site will rank in the paid results. The higher the bid, the higher your ad is placed. Since you pay only when someone clicks on your site, you are able to set up thousands of key phrases to increase the probability of attracting consumers. Your strategy should utilize a combination of SEO and PPC advertising to gain maximum impact.

Dealers are becoming more educated on advertising techniques that require less money and generate a higher return from “more targeted” leads that they own exclusively. The smart dealers are generating their own “pure” leads and fi nd that they are easier to close, generate more profi t, and are less expensive.

Pure vs. Impure LeadsEvery lead is not a good lead.

Dealers are becoming more educated on advertising techniques that require less money and generate a higher return from “more targeted leads” that they own exclusively. The smart dealers are generating their own “pure leads’ and are fi nding that they are easier to close, generate more profi t, and are less expensive.

Impure LeadsAn aspect of “impure” leads, leads that are hard to close or generate little gross profi t,

is that they can be potentially devastating – even business ending. Impure leads have the potential to be on a federal or state “do not call list” and you can fi nd yourself facing fi nes of up to $11,000 per call if you process these leads. Whether you’re a small dealership or a large dealership group, if you’re buying leads, the question boils down to whether you are in the legal “safe harbor.” These impure leads, as defi ned by recently passed federal laws, states if a person is on a “do-not-call” registry and you have neither an existing business relationship nor their express written permission for you to call them, you could face huge penalties; it is best to steer clear of these impure leads.

Pure LeadsThe solution is getting your own “pure” leads generated internally through SEM. The most successful dealers have realized they can generate their own leads with a higher return if they go direct to the customer by appearing on top of their local search results for the vehicles they sell. The best dealers in the country have created their own regional buying service by marketing their site through search engines and multi-media e-mail campaigns so they can generate more profi table sales at lower cost.

Building Your Own Monopoly:

The Regional Buying ServiceBecoming your own automobile regional buying service involves having online digital marketing Web sites and SEO marketing strategies that drive people to your dealership Web site. Here are the steps to use to transform your dealership into a consumer regional buying service center using SEM strategy:

• Know your market and compile a list of the most popular search phrases in your market.

• Create and design alluring ad copy to entice consumers to click on it.

• Bid the right amount on the right position for the each phrase.

• Adjust your bids daily to ensure you outperform your competition.

Search Engine MarketingSEM allows you to reach the majority of the buyers in your market for a fraction of the cost of buying leads, and for much less than traditional advertising. In addition, the leads that are generated are not sold to other dealers so the closing ratio and average gross are higher than leads you and other dealers buy from third parties. The good news is that you pay for positive results only, and it is the most measurable marketing medium in the history of advertising.

E-mail MarketingTo establish an effective e-mail marketing strategy, the fi rst step is to generate a list of pure leads. “We use multimedia informational mailings to communicate to our customers through targeted campaigns that communicate the right message at the right time during our customers’ life cycle,” said Tony Rimas, director of eCommerce for Red McCombs. “Our CRM tool equips us with a campaign and customized template for every scenario, such as price, trade, payments and availability. The templates we use increase the speed and professionalism of our responses, and a bonus is that they set the stage for our employees to make the initial phone call.”

Online MarketingPaglia said Courtesy Chevrolet uses targeted banner campaigns as an effective online marketing medium that allows Courtesy Chevrolet to market directly to people living within the geographic areas around their dealership. “Our main goal is to be where our customers are and try to capture them before they fall trap to third party lead providers who sell our leads to competitors,” he said. Courtesy Chevrolet also allows prospects to register for a promotional offer that allows the customer to be eligible to redeem the coupon at the dealership. “It allows us to treat these prospects just like a phone up,” Paglia said. “Our business development center specialists are amazing at converting these telephone leads into appointments.”

Templated Web Site vs. Lead Generating MachineSo, your Web site looks great, but is your site a generating profi t or is it just a hyped-up brochure? “What makes our Web site stand out in front of our competitors is that it is customized to our specs, not just one of those out of the box, cookie-cutter

template sites,” Rimas said of Red McComb’s site. “Within a matter of a few clicks, we can update specials and incentives.” In addition to creating sales leads, the goal of the Web site is to market the whole dealership. Step one is to help sell a car today, but step two is to promote all the other profi t centers (service, parts, subprime, etc.) and to become a marketing center, rather than just an information source.”

Tools Red McCombs.com offers many opportunities to generate leads and cultivate new opportunity. “Our CRM tool identifi es our most successful campaigns and tracks conversions,” Rimas said. “Additionally, it automatically follows up on our customers from six months all the way to six years, while communicating to our customers though out all phases of the buying, follow-up, and service experiences. In defi ning our marketing strategy, our management team needed to know where the most profi table Web traffi c and customers were coming from. By using our CRM, we were also able to track this important statistic.”

People, Process, & PricingEvery successful dealership includes a team of individuals who are passionate about what they do. Paglia of Courtesy Chevrolet said, “We look for people who love to serve the customer. Once we fi nd the right people, I make it my mission to create an environment that they’ll never want to leave, because we all know the cost of employee turnover. We’ve also learned that it’s not enough to fi nd the right people; you must have easy processes in place for them to follow.

“It is equally important to have a pricing philosophy that every employee understands and ensures there is fair profi t into every vehicle. It’s imperative to involve every member of the leadership team to ensure you create a strategy that everyone can buy into, because the power is in the belief.”

Cornering the MarketDesiring to achieve dominance in the automobile industry, smart dealers have discovered that building and branding a Web site, coupled with an effective SEM strategy will generate awesome results at reduced costs per unit. “We reduced our cost per sale down to about $150 per vehicle while increasing sales by 80 to 180 units each month,” Paglia said. “Our results are a sign of our success and presence in the market. It’s only a matter of time before other dealers do the same.”

Sean Wolfi ngton is the owner of BZResults.com. He can be contacted at 866.645.7730, or by e-mail at swolfi [email protected].

Monopolizing on Search Engine Marketing

Domestic Dealers Sell 300 - 500 Units With Search Engine Marketing


14

Resolving Disputes Without Going to CourtHow Binding Arbitration Can Help Reduce Risk

CharlesArrambidests fos ls ms sf fi s

leadership solution

When you think of tools for reducing risk in sales and F&I, binding arbitration may not come to mind. It can, however, be an

excellent risk-reduction tool. When properly implemented, binding arbitration provides a fair and effi cient forum for resolving legal disputes.

Arbitration is an alternative to going to court. It is binding when people agree in a contract to arbitrate disputes and waive their right to traditional litigation.

If there is a dispute, one party begins the arbitration process by fi ling a claim with the arbitration administrator. During the arbitration hearing, the parties present their arguments and evidence to an independent and neutral arbitrator. The arbitrator, usually a retired attorney or judge, weighs the evidence and makes a decision based on substantive law. The decision, called an award, is legally enforceable and as binding as a court ruling.

The Benefi tsBinding arbitration can benefi t all parties. Privacy is probably the most important benefi t, as the arbitration process is private in all jurisdictions. In addition, because professionals make decisions in arbitration cases, the risk of an extreme award is lower.

Arbitration is typically less expensive and faster than resolving a dispute through the courts. On average, arbitration cases are resolved in less than nine months, while the average civil case takes more than two years.

Enforceable Agreements You must use a properly drafted and implemented arbitration agreement. Otherwise, it may not withstand courtroom challenges. Typically, a court will look at fi ve general areas when determining whether an agreement is enforceable:

• Affordability – The agreement should not impose unreasonable fees that prohibit a customer from fi ling a claim.

• Accessibility – The agreement should not impose undue burdens such as lengthy or unreasonable travel time on the customer.

• Ease of use – The agreement should be written in plain language that customers can understand.

• Balance of fairness – The agreement should not require the consumer to

arbitrate more claims than the dealer or fi nance company.

• Obvious presentation of the agreement – The arbitration section should be obvious in the agreement and not written in a smaller font than other important provisions in the same or accompanying document.

Work with your legal counsel to ensure that your binding arbitration agreement has the best chance to withstand any courtroom challenges.

Presenting Binding Arbitrationto Customers Binding arbitration agreements can be included in the buyer’s orders.

If you use or plan to use binding arbitration, be certain your sales and F&I people know how to present it properly. State that, “It means that if you have a dispute with the dealership, you agree to go to a third party to resolve it instead of going to court.” Then give the customer a brochure providing detailed information.

At a minimum, your employees should be able to tell customers what binding arbitration is and answer basic questions. Use a frequently asked questions and answers document to aid your employees. Keep a supply of brochures on hand for customers who want detailed information.

Will I Lose a Sale? Some dealers fear that binding arbitration agreements will cause them to lose sales. I have talked with many dealers who use binding arbitration and lost sales are not an issue.

Occasionally, a dealer tells me about a customer who refused to sign a binding arbitration agreement. Many dealers have developed a standard business practice of obtaining a signed binding arbitration agreement with every transaction. If the customer refuses to sign the binding arbitration agreement, there is no deal. Tell the customer you are sorry that you will not be able to do business with them and ask the customer to come back if he or she reconsiders.

Binding arbitration may not be right for every dealership. If you are thinking about using a binding arbitration program, give it careful consideration and talk with your legal counsel.

Successful Implementation If binding arbitration is right for your dealership, use these tips for implementing it successfully: 1. Educate yourself. Be aware of your

state’s legal environment concerning arbitration.

2. Educate your legal counsel. Be sure they are up to date on the Federal Arbitration Act as well as any state arbitration law.

3. Educate employees. Make sure your sales and F&I employees know about your binding arbitration program and that it is a consistent practice in sales and F&I. They should know how to present binding arbitration to a customer and be able to answer basic questions.

4. Educate customers. Give customers a brochure that defi nes binding arbitration, describes the process and lists its benefi ts.

5. Establish binding arbitration as a business practice. Make it a consistent business practice in your dealership. Tell your employees: “This is the program, this is how we are implementing it and we will use it on every deal. Monitor your program and follow up on non-compliance.”

Protect Your LegacyConsider whether binding arbitration is right for your dealership. Weigh the pros and cons, and talk to your legal counsel. If it is right for you, use a properly drafted agreement. It may be just the tool you need to help protect your legacy.

What’s ahead?Next month I will recap some of the risk management measures you can implement to become compliant and reduce risk.

This information is presented for risk management purposes only. It is not to be construed as legal advice or legal opinions. Consult your legal counsel for assistance. Universal Underwriters Insurance Company, its affi liates, agents and employees assume no responsibility or liability for making this information available.

Charles F. Arrambide is assistant vice president and associate risk offi cer for Universal Underwriters Insurance Company. He can be contacted at 866.347.5019, or by e-mail at [email protected].


We need them. They need us. We need you.

It’s that simple.

®

®

Nothing can wreak havoc on an individual or an organization like stress. In the fast-paced business world in which we live,

there never seems to be enough hours in the day. The convenience of e-mail and mobile phones oftentimes makes it even worse. Co-workers, customers, and managers have all come to expect an instant response, adding even more pressure to our already-hectic workday. What can a leader do to keep stress to a minimum and protect the overall well-being of an organization?

The most important thing to understand in combating stress is that no matter what challenges you may face, you are not alone. God is all around us, even in the workplace. It is your choice to worry. God does not want us to have to suffer from anxiety. God wants you to come to Him and provide you with peace. All you have to do is ask.

“Humble yourselves, therefore, under God’s mighty hand, that He may lift you

Give Your Worries UpJesseBiter


leadership solution

up in due time. Cast all your anxiety on Him because He cares for you.”1Peter 5:6-7

An easy way to lower your stress level while at work is to make a small adjustment to your daily calendar. Just as meetings and conference calls are part of your day-to-day schedule, set aside a few moments to connect with God during the workday. You can schedule time to be in God’s presence through prayer, meditation or simply reading a few passages from the Bible. A brief spiritual connection can do wonders to help you relax and ward off the negative effects of stress. Jesus Himself would often withdraw from the crowds to pray and He encourages us to do the same. Let go of stress by letting in God’s peace.

Contrary to popular belief, it is actually okay to not always be in control. It’s truly a humbling experience to know that there is something out there that is larger than us all. Regardless of your position in the organization, you will fi nd yourself more relaxed and ultimately more productive

in your work when you allow God to take control.

“Come to me, all you who are weary and burdened, and I will give you rest.” (Matthew 11:28)

Remove the useless clutter from your life and schedule. Say “no” to certain tasks to avoid over-extending yourself. Forgive yourself and be positive about yourself. Each of us is uniquely made by God for some special purpose. Low self-esteem only makes it harder to deal with stressful situations. Forgive others too. Stored resentment can only breed more stress.

Life demands changes, whether you like them or not. Pray for the courage of acceptance and the ability to adapt. And if it is hard to see the positive, ask God for His peace and wisdom. Give your worries up to God.

Jesse Biter is the president and CEO of HomeNet, Inc. He can be contacted at 866.239.4049 or by e-mail [email protected].


offer, and then invite you to the Web site for details.

Once you make marketing your URL a consistent strategy, you can incorporate it into any length or format. A simple formula is the “rule of thirds.” In the fi rst third of the spot announce your event or offer, in the second third of the spot briefl y explain your offer and in the fi nal third, drive them to your Website for details.

“Don’t miss the Thomas Ford truckload of savings event this Thursday, Friday and Saturday. The area’s largest selection of Ford cars, trucks and SUVs. Shipments of our hottest selling models are arriving daily and prices are slashed to rock bottom. We’ll even show you the invoice. Plus, get up to $5,000 factory cash or zero percent fi nancing. Visit buythomasford.com for details. You’ll fi nd every new Ford in our truckload event, with detailed information and photos in an easy to use format. The Ford truckload of savings event, going on now at buythomasford.com.”

And as long as you are doing that, you might as well show your Web site, show the vehicles, and show them how robust your site is. Bottom line: There is always room or time to market your Web site. Just make sure you sit down with your ad agency and explain to them that it’s not an afterthought; it’s critical.

Paul Accinno is the president and CEO of WorldDealer Inc. He can be contacted at 866.319.6284, or by e-mail [email protected].

Where’sYour URL

PaulAccinnosts fos ls ms sf fi s


17september 2006

All traditional marketing efforts (TV, radio, print, outdoor, direct mail, etc.) should include the dealership’s Web

address, or URL.

To illustrate the importance of getting your URL in all your advertising, think of it this way: No matter how big, how long or how many times you run an ad, you cannot fi t your entire inventory in an ad. The only place where you have all your new and used vehicles available is on your Web site. Also, when you run in general media, you have competition. Your newspaper ad is right next to the ad of the dealer down the street. Dealers are all over the radio and commercial breaks on TV. The only place where you have no competition is on your Web site.

So how do you fi t your URL in your advertising? The simplest way is to add “dot com” every time you say your dealership name in your advertising. See fi gure 1 and 2.

“Now during the Year End Clearance at ABCMotors.com we have our lowest prices of the year. Save like never before on every car, truck and SUV in stock. For complete details and to view our entire inventory of new and certifi ed pre-owned vehicles visit ABCMotors.com”

Another way to market your URL is to create ads that are specially designed to drive traffi c to your Web site. One technique is to use a “Small Space Web Driver.” These ads are inexpensive to run and are not much bigger than a business card. They simply make an

Figure 1 Figure 2

10 Keys to a Winning Product Presentation

JeffMorrillsts fos ls ms sf fi s


18

The more value and excitement you build during the walk-around, the more momentum you’ll have during closing,

when you need the prospect to want the car more than he wants to keep the $15,000 or $25,000 that the car costs.

1. Know What Your Prospect Wantsin a Vehicle Use the information learned during the investigating step to tailor your product presentation (walk-around). If you didn’t ask the following question during your investigation, ask before you begin the walk-around: “What’s the most important thing to you in a vehicle?” Always follow up with “What does ________ mean to you?” because “safety” or “performance” or “image” mean different things to different people.

2. Know the Difference Between aFeature and a Benefi tA feature is the thing and a benefi t is what the thing does for the prospect. “Mr. Prospect, this six-disc audio unit keeps your hands safely on the wheel instead of fi ddling with CDs….” You don’t need to tell someone what a power window does, obviously, but the benefi ts of a feature such as all-wheel-drive are lost on most folks who think that it’s benefi cial only in snow.

3. Move Clockwise Around the CarI like to start at the front of the car, offering a peek at the engine. For a Subaru, I talk about the benefi ts of the boxer engine and symmetrical all wheel drive. Moving to the passenger side, I talk about airbags and interior creature comforts. In the rear, I talk about utility and cargo capacity. I fi nish with the customer in the driver seat for a seamless transition to the test drive (just put on a plate and go).

4. Engage the Prospect in a Conversation No one likes lectures. Ask questions that help you understand the amount of knowledge they have about the product (“So, what do you know about Subaru?”) and also how they intend to use it (“What kind of cargo will you carry back here?”). Ask questions that allow the prospect to take mental ownership (“Do you think your golf clubs would lay fl at back here or do you imagine we would need to fold the seat down?”)

5. Let the Customer Feel and Touchthe VehiclePoint out the latch and let him open the tailgate himself, let him close the doors and feel the solid “thunk.”

6. Tactfully Compare Your Product/Dealership/Experience to OthersBeware of criticizing other dealerships or products. For those you know are comparing your product to one elsewhere, politely point out the advantages of buying from you. “Mr. Prospect, you can’t go wrong with a Toyota RAV4; they build a great vehicle. However, my customers who drive the RAV4 after driving a Forester almost always come back to buy the Forester. Here are a few reasons why….”

7. Get Excited A few steps down the road to the sale, you’re going to ask your prospect to part with tens of thousands of dollars - all at once or over 60 months. If you’re not excited about the car, how will he be? Our moods and state of mind are contagious. Make sure you know enough about your product to have a few things you think are really neat. If you believe everybody should have all-wheel-drive, for example, then your enthusiasm will infl uence your prospect.

8. Know Your Stuff The more you know about your vehicles, the

better, obviously. If you’re new, then learn a few characteristics about the brand that are consistent across the model line, so you can talk about the same features/benefi ts regardless of the vehicle you’re showing. For Subaru, these might be all-wheel drive and the boxer engine. If you’re a veteran, use your down time to expand your knowledge about competitors’ products by reading reviews. Beware of being a know-it-all, though, and match the complexity of your presentation to the prospect. The goal is not to impress the prospect with your knowledge, but rather to excite and educate.

9. Present For a Minimum of 10 Minutes Oreck retail salespeople present for 10 minutes to sell a $500 vacuum cleaner. You’re looking for tens of thousands of dollars. Your presentation should cover at least seven features/benefi ts. I’ve seen our best salespeople give 30-minute presentations - and if you are excited, know your product, involve the prospect with questions, and ask him to operate parts of the car, then 30 minutes isn’t too long. Of course you need to adjust the length of the presentation to the prospect’s attention span, level of interest, etc.

10. Trial CloseAsk trial closing questions throughout, such as “Do you think this vehicle has what you’re looking for?” and “Would you feel more comfortable/cool/safe in this car compared to the one you’re driving now?” These questions help your prospect take mental ownership and give you the feedback you need to make sure you fi nd the right car that fi ts his budget.

Jeff Morrill is co-owner of Planet Subaru in Hanover, Mass., and Planet Chrysler Jeep in Franklin, Mass. He can be contacted at 866.872.8699, or by e-mail [email protected].


The Importance ofPayments, Part 2: The Internet

RaquelSmithsts fos ls ms sf fi s


IMN Loyalty Driver™ is a turnkey e-marketing service thatdrives interest, sales and customer loyalty. Customized, trackable email communications provide tangible results for dealerships across the country. A couple of examples:

• 15 test drives scheduled within the first hour afteran IMN Loyalty Driver e-newsletter was sent.

• 90 phone calls in a month as a direct result ofone IMN Loyalty Driver e-newsletter.

Looking for results like these? Call 866.964.6397, ext. 214 or email [email protected].

Drive customers in…For sales, for life.

866-964-6397 imnLoyaltyDriver.com

> Matt Lamoureux, Acton Toyota

“Our website traffic spiked

to2.5

times its normal rate.”


The Internet is here to stay and is going to be bigger than we can imagine. Current estimates are 80 to 90 percent of today’s

car buyers use the Internet. With wireless technology, most Americans will possess a laptop or notebook computer that they will use to access the Internet anywhere or anyplace they go. The cars we drive will soon have computer monitors in the same places we now see DVD screens. An after-hours shopper can now access the details of your used cars online with his laptop as he walks the lot or drives by. The secret is how do we get these buyers who prefer to shop online to visit our dealership, and not that of the competition.

To get these Internet shoppers to visit your dealership, begin by marketing and designing a sales-orientated Web site. The majority of buyers who visit your Web site will simply get in their car and drive to your lot if they see something that interests them. Approximately one out of 10 will actually

submit a request online as a lead for you to follow up on (provided your site is lead-generation oriented). An average closing ratio of these leads is about 20 to 25 percent, so by producing only 200 Web visits a month, you should get about fi ve additional sales per month and generate about $100,000 additional profi t per year ($1,750 avg. gross). If you could get another fi ve customers a month to drive into your dealership and purchase a vehicle because they saw a great special, or liked your promotional messages and offers you had included in your Web site, you could generate another $100,000 additional profi t per year.

The other way dealers are attracting online shoppers is with third-party Web site companies. Third-party Web site companies are asking online shoppers for their phone numbers and e-mail addresses in order to receive pricing, trade in and fi nancing information that will help the consumer make a car-buying decision. Currently, you can buy leads from these companies (including your own manufacturer) for approximately $15 to

$20 per lead, but it is estimated that they soon could rise to $40 per lead. At $40 per lead they would still be worth buying provided your staff could close the leads at a 20 percent closing ratio (only $200 cost per sale).

With a little ingenuity and creative marketing you can generate leads from your own Web sites in the same way these third-party companies do, only at a fraction of the cost. There are exciting ways to generate traffi c to your own Web sites. For example, if your car lot is visible to drive by traffi c, put an eye opening payment and your Web address on a vehicle and park it out front of the dealership. Passengers driving by with a wireless connection will be able to access more information right from their vehicle, or type in your Web address when they get home.

If you have a hard to spell or remember Web site address, there are new ways designed to generate traffi c to your Web site without anyone having to know or type in your Web address, or look it up on a search engine where your potential customers may get swiped by a third-party company who will then turn around and try to sell you back the leads. You may think this is unfair, but frankly it is a needed service for many dealers because their own Web sites are not capable of generating leads. Most dealer Web sites do not have any specials listed under the specials tab. The fi rst thing a customer wants to look at are the specials. If no one at your dealership knows how to build a specials page on your Web site, there are companies who can provide this low-cost service for you, so your Web site shoppers always have access to current specials designed to get you leads and sales.

Do the maintenance required for a professional web presence, and you can increase sales. Attract people to a Web site with up-to-date specials with prices and payments and pictures and features that today’s buyers want.

Remember, cars are like haircuts: Sooner or later everyone’s got to get one. Stick to the basics and be consistent to increase market share. Marketing and advertising is the fun part of the business. Loosen up, have fun, be creative, get your message out in front of your buyers, and let’s sell cars.

Raquel Smith is the vice president of sales and marketing for ILikeThatPayment.com. She can be contacted at866.386.5982, or by e-mail [email protected].

AllenCheeksts fos ls ms sf fi s


21september 2006

Dealership Web sites are a powerful self-marketing tool. Get insight from your customer’s point of view to stand out from

your competitors. Gaining market intelligence from your customer base will increase lead generation and accelerate sales.

The evolution of the Web fi rst started with the basic need to exhibit information via the Internet. Then, sites evolved to become more interactive and graphically appealing, and eventually developed as a communication link between the customer and dealership. The cutting edge Web sites now realize the importance of evaluating the design, functionality and usability from the eyes of the user, versus an exclusive view from the dealership and/or Web developer.

Your Web site should include collaborative customer viewpoints and compelling messages that are important to them. For instance, do they want to take a virtual test drive? Access a chat bulletin board? Do they want to see the potential trade-in value of their vehicle? Do they want to pre-qualify for fi nancing before they ever step foot in the dealership showroom? It’s vital to fi nd out what’s important to your customers and mold your site to match what’s most important to them.

A successful evaluation of your Web site requires a view from different angles. To invigorate your site, you not only have to evaluate the technical effi ciency, but, just as importantly, conduct a usability review. If a site is slow to load, there are broken links or it is diffi cult to navigate, we immediately leave it; there are many more fi sh in the sea.

A personalized Web evaluation can be custom-tailored to maximize the use of your Web site to generate leads and accelerate sales. Components of this evaluation may include:

• Gap Analysis – Does the objective and mission of your Web site meet customer expectations? Are there areas of importance to your customer that you are unaware of?

• Usability Review – Is your site easy to navigate? Can your customers

effi ciently locate their desired results? What components of your site do they frequent most often and why? How many clicks does it take to get to highly visited areas of your site?

• Design Review – Do the characteristics of your site match the branding of your dealership?

• Technical Review – Is the performance of your site optimally tuned? Are there broken links and unsecured data? Can customers easily locate your site?

More than ever, we regularly read the success of Internet sales leads. For some, what originally started out as 100-200 leads per month now report exponential increases monthly. This is not happening by luck. It happens by making a committed effort to keep your Web site dynamic and including customer insights about subject matter that is essential to them.

Web AuditLeverage Customer Insight to Maximize Lead Generation and Accelerate Sales

Research has shown that dealerships are now spending less on print advertising than they did only a few years ago. I’m not implying this medium is going away any time soon, but I am suggesting dealerships realize the value of getting qualifi ed leads from their Web site. Plus, think about having someone make an online inquiry. This allows you to follow-up by phone, qualify the lead and schedule an appointment. Making the commitment to evaluate your Web site from a customer’s viewpoint makes sense to maximize its use. Done correctly, you’re well on your way to creating a self-marketing tool that increases lead generation and accelerates sales.

Allen Cheek is the president of CLARITY oms. He can be contacted at866.611.0998, or by e-mail [email protected].

Key PerformanceIndicators, Part 2

HeatherConarysts fos ls ms sf fi s

marketing solution

In last month’s edition of AutoSuccess, I began a series of articles on Key Performance Indicators (KPIs). These are gauges you

can use to determine how well your Web site is performing.

To calculate these KPIs, you will need a set of your statistics from your Web site. There are many different statistics providers out there (Urchin, CoreMetrics, WebSideStory, even proprietary solutions.) If you need help fi nding the measurements referenced in my article in your own statistics package reports, feel free to e-mail me.

Hits vs. VisitorsOne of the most common misconceptions in the practice of analyzing Web traffi c is the concept of hits versus visitors.

If the main page of your Web site has four graphics, it is counted within the statistics package as fi ve hits (one for the page itself, and one for each graphic), even though it was only one visitor.

Visitors are a more accurate count of traffi c to your site, as it counts each request to a page only once. Depending on your statistics package, it may also be referred to as “Sessions” or “Visitor Sessions.”

Visitors are one of the easiest KPIs to track. The drawback is that the measurement isn’t specifi c.

A decreased visitor count from your last calculations may indicate:

• Your site may have experienced some down-time during that time period

• Increased travel (and decreased computer time) by potential customers due to a holiday

An increased visitor count may indicate:• A marketing piece (brochure, TV or

newspaper ad, etc.) may have driven increased traffi c to your site

• Your staff is doing a better job at directing customers to your site

Some methods to increase your visitor count (and usage of your site):

• Make sure your Web site address (URL) is included on every document that represents your dealership, including letterhead, business cards, TV and newspaper ads, interior signage, etc.

• Add calls to action to your invoices – for example, on each service repair order, add a standard paragraph that directs customers to your Web site to schedule their next appointment

• Train your staff to sell the features on your Web site as a useful, time-saving tool for your customers

Average Page Views per VisitorIt is a commonly accepted maxim that a Web site has mere seconds to make an impression on its visitors whether to stay or not.

To calculate this metric, you need the following measurements:

• Visitors• Page Views

Visitors ÷ Page Views = Average Page Views per Visitor

(Some more advanced statistics packages may include this measurement already calculated.)

To get an idea of what your average should be, take a “walk” through your site. If you want someone to schedule a service appointment, how many pages do they have to view to do it? Assume from your homepage, someone has to click to the Service page, then on to an appointment form. This involves three pages to complete a task. Do this for each task you want visitors to perform on your site. Some other tasks include ordering parts, submitting leads on inventory, or reserving rentals.

If you have a low measurement, it typically indicates that visitors didn’t feel your site would have the information they were looking for, or your site made it diffi cult to fi nd the information your visitors wanted.

Some methods to increase Average Page Views include:

• Adding new content, such as informational articles

• Changing what features you have linked from your homepage

• Changing how many steps it takes visitors to fi nd features they would look for (such as inventory listings or appointment forms)

A metric that goes hand in hand with the Average Page Views per Visitor is the Page Abandonment Rate.

Page Abandonment RateThe page abandonment rate is the rate at

which visitors to each page on your site are leaving it. You can measure this solely for your homepage, for each individual page on your site, or as an average of all pages on your site. It is also commonly referred to as the Bounce Rate.

To measure the page abandonment rate, you need to fi nd the following measurements for one page (usually the main page of your site) in your statistics:

• Page Views• Exits from the Page

Exits from the Page ÷ Page Views = Page Abandonment Rate

(Some more advanced statistics packages may include this measurement already calculated.)

A high abandonment rate may indicate:• Visitors didn’t fi nd the information they

were looking for on your page• Your site took too long to load and the

visitor got impatient

Some methods to decrease your abandonment rate include:

• Working with your Web development company to decrease your load time for each page on your Web site

• Verify that each link on your page leads to the information your customers are looking for

• Provide more information for each page (for example, verify that you offer pricing, or at the very least MSRP, on your inventory listings)

Keeping TrackIt is best to run your statistics reports for each period that you’ve decided on, and maintain copies of previous periods. One of the easiest ways to accomplish this is to set up a Microsoft Excel report that performs the calculations for you and compares it to the previous months. If you need help setting up an Excel spreadsheet, feel free to e-mail me. Remember, there is no industry standard for measuring statistics; the only competition you have is yourself.

Next Month: More of using your KPI analysis to make improvements to your Web site based on good decisions.

Heather Conary is a Web developer at Downeast Toyota-Scion-Buick. She can be contacted at 866.386.4914, or by e-mail at [email protected].


The Internet customer, much like the butterfl y, doesn’t fl y in a straight line from point A to point B; they fl utter

about lazily like they have all the time in the world, soaking up the sun and your time. But, like the aforementioned butterfl y, if you have the proper tools and are patient, they can be easily caught.

Dealerships that don’t have an Internet presence, or lack the proper processes, are fond of saying, “You can’t make any gross off of an Internet customer.” That couldn’t be further from the truth, but you must have the proper processes in place in order deal with them. The Internet scene can be pretty competitive, with the customer able to send out quotes to a multitude of dealers with just the click of a button. Most dealers know that you must respond to an Internet customer quickly, but a vast majority of these contacts are just an e-mail lacking any real substance and throws invoices at the customer. This is no way to hold gross, and it forces the customer to look for best price; they typically give bad CSI and aren’t loyal.

If there is anything in this article I want you to remember, it’s this: The Internet customer will do business with a dealership they like, know and trust. That’s it. It’s that simple, and if you look closely you’ll notice it does not say, “who has given them the best price.” Evaluate your process. Does it build trust with the customer? Does it allow the customer to like you? Does it show the customer who you are? If what you are doing now doesn’t allow you to say “yes” to these questions, then its time to change your process.

So what should your process be to be able to answer “yes?” First, you must take a look at your e-mails. Do they brand who you are? If they don’t, they should. Do you see your logo and links back to your Web site for further research? If you don’t, you should. Do you see just plain black and white e-mails? If you do, you shouldn’t. Take another look at your e-mails; do they get your message across?

DavidJohnson

Okay, now that I have all of that, I should still send invoice price, right? WRONG. You should send an e-mail with a range of pricing, since most Internet customers end up purchasing something totally different anyway and hardly ever at the same trim level. This also gives them a reason to return e-mails and phone calls. In your fi rst auto responder set up the fact that you are sending a range of prices but you will be calling them with questions to narrow down the options they are looking for. In the price range e-mail that follows, make sure to let the customer know that the prices you are giving are just a range of prices, and that they will be getting an Internet discount price along with all rebates and incentives. Again, let the customer know that you will be calling them to set up a time to view the vehicle or vehicles they are interested in.

Once you get the customer on the phone, you should qualify them, set the appointment and let the sales fl oor worry about pricing. Using a good script and some standard closes, you can get more customers in the door and be able to hold more gross. Once on the phone, you can open up the customer’s mind to more options - maybe an off-lease vehicle, a certifi ed pre-owned or a demo. This shows the customer that you care enough to take the time to ask these questions in order to save them money and thus build trust, the single biggest factor in why a customer buys from a specifi c sales person. The phone call, along with brand-building e-mails, sets you apart from the competition and increases your chances of successfully landing an appointment with the Internet customer. If you need any examples of these types of e-mails or need any further information on this subject just shoot me an e-mail, I would be more than happy to help.

David Johnson is the Internet sales manager at Orville Beckford Ford Mercury in Milton, Fla. He can be contacted at 866.347.2379, or by e-mail [email protected].

The InternetThe InternetSales ProcessSales Process

26

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SeanWolfi ngton

Leadership Coming to Leadership Coming to Serve, Not to be ServedServe, Not to be Served


leadership solution

What is leadership? Leadership is a process of infl uence. Whenever you fi nd yourself attempting to infl uence

the thoughts and actions of others toward the achievement of a specifi c goal, you are engaging in leadership. Taking that one step further, if you fi nd yourself infl uencing others in such a way that the benefi t of those you are leading takes precedence over your own self-interest, you are taking on characteristics of a servant leader. Seeking to become an effective servant leader will embark you into a journey of personal exploration that will challenge you to engage your heart, your mind, and your daily actions in your leadership role.

The Heart When reviewing the heart of a matter, what matters is the heart. If the intentions in your heart are pure and untainted with self-serving agendas, then your faith and persistence to succeed will be great enough to move mountains. In examining the motives and intentions in our objectives or goals that we strive to achieve, we are able to identify those egotistical or self serving characteristics or fl aws that become obstacles to achieving our greater purpose in life. Emptying ourselves of selfi sh motives will enable us to perceive our fellow co-workers in a different light. This inner self-cleansing makes room for virtuous leadership traits such as compassion and concern for the well-being of others. We are promised that if we seek goodness and righteousness for the sake of others, we shall have all these things added unto us.

The Head Thinking is a continually evolving process. Since we are what we think, we must constantly seek to improve our thoughts which, in turn, improves our performance and our behavior. Having the right mindset can turn adversity into advantage, and will ultimately set our inner compass in the direction of true success. Not only must we empty our hearts of self-serving interests, but our minds must be cleared of counter-productive clutter. Our eyes are lamps to our innermost beings. To keep a lamp burning, we must continuously put oil in it, so we

must constantly seek to set our sights on things of a higher nature. We must shun thoughts of worldly distractions such as pride and material possessions that cause us to lose focus of the pursuit of good things. How we view others is a valuable measure of a servant leader. A respected leader truly values the opinions of his followers and has genuine concern for their well-being, even to the point of sacrifi ce.

The HandsActions speak louder than words, and servant leadership is fi rst and foremost an act of service. The journey from good intentions to right thinking inevitably leads outward when the fruit of the heart and the mind manifest into action. The values of a servant leader are evident in the normal day to day activities. Let your life be an example of what you desire from those who follow you. In the words of Blessed Mother Teresa of Calcutta, “In this life we are not called to do great things, but to do small things with great love,” and “Be faithful in small things because it is in them that your strength lies.” We experience servant leadership in many natural aspects of our lives. One illustration is in the relationship between a parent and a child. For example, a father serves his son out of love by creating him and sustaining life. This a father does for the sole benefi t of his children. The son reciprocates his love and serves his father by honoring him and living his life in a manner that is pleasing to his father. This the son does, not for his own benefi t, but out of respect for his father. The father selfl essly loves the son, and the son selfl essly loves the father.

Effective leadership begins interiorly with a hand in the heart, and ends exteriorly with your heart in your hands. Servant leaders live their lives not for themselves, but for the benefi t of others. In doing so, they inspire and create enthusiastic and loyal servant leaders around them.

Sean Wolfi ngton is the owner of BZResults.com. He can be contacted at 866.802.5753, or by e-mail at swolfi [email protected].

27september 2006

“Call metoday!You’lllike theresults!”

Dealers usingthe “I Like

ThatPayment”

programare doing

awesome!”

RAQUEL SMITH, VP SALES/MARKETING

28

JimmyVee & TravisMiller

A typical problem in the a u t o m o t i v e industry is that an ungodly amount of cash

is thrown into the advertising or marketing arena. And the results? A silent telephone and an empty lot.

What does it take to get the phone to ring and the ups to show up? What does it take to sell the number of units your store should be selling? What does it take to stop throwing your money away when it comes to advertising or marketing your dealership?

Here are Five Keys to Successful Automotive Marketing

Success Key 1: Understanding what “marketing” actually is.Marketing is one of those terms defi ned in a lot of different ways. Dictionary.com defi nes it simply as, “to offer for sale or to sell.” This defi nition is misleading because marketing is a multi-step process that ultimately should lead to sales. But defi ned that simply it does not give us any information to learn from.

Here is a good defi nition for marketing: The quickest path to selling prospects and clients who are properly positioned to be sold - without actually having to sell them.

That may sound confusing. To make it easier, let’s defi ne the difference between sales and marketing.

Sales: What you do with a person once they are in front of you or on the telephone. A prospect or customer on the lot or on the phone needs to be given a sales presentation. Everything you or your sales people do in front of a prospect is a presentation and should be treated as such and executed systematically and dynamically.

Marketing: What you do to get prospects and customers on the lot or on the phone.

In a sense, marketing is pre-selling and positioning. You want to set the stage for your presentation. You are the director of a mega-profi t-producing production. You want to get people excited about what you are going to show, demonstrate and tell them. You want

them to have a certain perception about you and your dealership before they ever step foot on the lot or call on the phone. You want to be perceived in advance as a welcomed guest, a valuable resource, an asset - not an unwelcome, product-pushing pest.

Success Key 2: Having an effective marketing system to sell your service.Most people handle their marketing in a way we like to call “spray and pray.” Just spray it all out there and pray something happens as a result. It’s usually not very well thought out and is done with no real rhyme or reason. It just is what it is. Separate pieces of a puzzle, always changing, never measured and defi nitely not orchestrated into a proven system.

Your marketing should be like a musical score - written out in advance, with movements and rests and harmonies exactly as they are to be performed every time. The composer knows how the different parts will affect the thoughts, emotions and perceptions of the listeners like clockwork.

The music sets the mood and the tone and so should your marketing set the mood and tone of your sales presentation and your dealership experience.

Most dealers we meet are tossing spaghetti on the wall when it comes to their marketing – desperately trying to fi nd what sticks, then riding that gimmick till it stops working. Then they toss more spaghetti in order to fi nd the next new gimmick.

This doesn’t make your marketing job, or your life, very easy or fun, nor does it create a duplicable system that produces ongoing results for you, making your dealership impervious to changes in market conditions and ultimately recession-proof.

What you need to create a powerful and systematic marketing system that pre-sells and pre-positions your dealership is all based on response-oriented direct marketing. Using direct marketing, you can sell yourself in advance and make the job of closing signifi cantly easier.

Instead of just using your marketing to say, “Here we are, we’re getting our name out there, here’s how long we’ve been here and here’s

our number in case you want to call us,” you really want to use education-based marketing strategies to get people to take immediate action and then be persuaded to come to the conclusion on their own terms that you are the best, and only, choice for them.

Notice we haven’t said anything in here about vehicles. Selling vehicles puts you in the commodity game and we will discuss that issue in some future article.

You want to use strategies such as making prospects call a 24-hour, pre-recorded hotline message; visit an information-based, permission-gathering Web site; or request/read an educational sales letter or consumer awareness guide.

These are the type of marketing steps that educate, pre-sell and position you as an expert in your fi eld and in your market. This is the kind of thing that can help you overcome traditional negative industry stereotypes and give you an unfair advantage over all your competition.

Plus, there are many new methods of distributing your education-based marketing material that cost very little and are consumer-sexy, such as the Internet, e-mail, blogs, RSS feeds and podcasts.

How can you integrate some or all of these education-based direct marketing strategies into a systematic marketing plan that gets proven and consistent results? That’s the question you need to be pondering and creating answers to if you want to crush the competition and recession-proof your dealership. Next month we’ll cover two more Keys of Successful Automotive Marketing. In the meantime you can learn more about these strategies and others in our FREE Special Automotive Business Advisory For Car Dealers and Managers, a 32-page industry bulletin titled, How To Uncover The Hidden Wealth In Your Used Car Dealership. To get your free copy e-mail us.

Jimmy Vee and Travis Miller are the founders of Used Car MarketingCenter. They can be contacted at 866.852.0145, or by e-mail atJ&[email protected].

Five Keys to SuccessfulAutomotive Marketing


marketing solution


It’s Still About SellingMikeParsons



Last month, we took a look at asking the customer from an Internet lead the right questions, and how to earn the right to ask for

an appointment. Now you have demonstrated your concern for fi nding the right car for the customer and you are working with their best interest in mind.

Set the appointment and be prepared. Have vehicles selected, clean and ready for demonstration. When the prospect arrives at your dealership, do the best walk around, presentation and dealership introduction you have ever done.

Before you started in Internet sales, remember the people you spent the most time with prior to the negotiation phase? I’ll bet in most cases those were the people who were the happiest customers. I’ll also venture to

say they made you the happiest sales person because you probably made the most gross on them.

It’s true in business or personal relationships, the more you sincerely invest in someone, the greater your return.

Two more quick points: First, “no” means “maybe” and “maybe” means “yes.”

Statistically, 60 percent of all customers say “yes” after the fi fth “no.” Keep overcoming objections and asking for the sale, whether you are selling the appointment or the car.

Second, people don’t buy on price alone. They buy benefi ts from people they like and trust. Discover the needs of your prospect, demonstrate how the benefi ts of your product meet those needs, and always work with the best interests of your customer in mind.

Remember, even though we use the Internet and technology, it’s still about people. It’s still about selling. As Napoleon Hill said, “Think and Grow Rich.”

Mike Parsons is the director of eCommerce at Asbury Automotive Group, Southeast Region. He can be contacted at 866.446.7143, or by e-mail [email protected].


...the more you sincerely invest in someone, the greater your return.

TonyDupaquiersts fos ls ms sf fi s

f&i solution

31september 2006

In too many dealerships, giving every customer the opportunity to meet the business manager at the time of commitment is

a problem. Why is this? In some cases, it is not the dealership’s policy, and in others, the sales team does not see the need to have every customer see the business manager.

The business offi ce, though, is the single most important department within a dealership. The business manager secures the deal and protects the gross. Without seeing the business manager, the dealership does not have a deal. Does your sales department know this? They should.

Does the sales department tell you that their customers do not want to go to the fi nance or the F&I offi ce? Of course customers might be hesitant to visit these offi ces if they do not understand the functions of the department. They will, however, be more willing to go if they know that is where all the title and registration paperwork is handled.

Make sure your sales department refers to this offi ce as the “business offi ce,” not “fi nance,” “the box,” or “the dungeon.” Remember: Our industry revolves around the words and phases we use. If customers hear the wrong words or phrases, it can and will be detrimental to business.

It is also important to stress to sales people the fact that the business offi ce is in charge of the dealership’s cash fl ow. Therefore, all checks should be written in the business offi ce. All cash down payments or transactions must be done in the business offi ce, in front of the business manager. There are severe legal ramifi cations that can occur if a transaction takes place and a FIN/CEN 8300 form is not fi led.

Do all of your sales people and managers truly understand what the products sold in the business offi ce do for customers? They should.

These products protect a customer’s ability to buy in the future. The No. 1 reason for repossessions is when a mechanical breakdown occurs and the customer does not have the ability to pay for repairs and make

payments at the same time. In these instances, the customer will allow the vehicle to go back to the lender. However, just because a person calls the lender to return a vehicle does not mean that person’s credit will not be affected. Instead it means the customer will have an R8 on his or her credit bureau, which is considered a repossession. The business offi ce sells a product to protect against this: the vehicle service contract.

The third major reason for repossessions in this country occurs after a customer is unable to work due to an illness, injury or medical condition. The business offi ce has a product for this, as well: credit disability insurance and now, in some states, a vehicle return program. The sales team should have a full understanding of what this coverage does for customers and how it can benefi t the dealership.

Although it is important for the sales people to be properly educated on the importance of the business offi ce’s products, sales people should not attempt to sell any of the products. All that is needed is an opportunity to present the products to each and every customer. Sales people have an opportunity with every customer who walks on the lot, and business managers deserve the same opportunity.

If the sales team sees no value in the products and benefi ts the business offi ce offers, educate them on the legal obligation to offer every product to every customer. The burden of proof to demonstrate that a store has done this falls on the shoulders of the dealership itself. Failing to meet this requirement has proven to be a costly mistake for many dealerships.

In your next sales meeting, explain all the benefi ts the business offi ce has to offer. If everyone at the dealership, from the sales people to the general manager, has a good understanding of the duties of the business offi ce, the turnover will become an important part of the deal rather than an inconvenience.

Tony Dupaquier is the director of F&I Training for the Automotive Training Academy. He can be contacted at 866.856.6754, or by e-mail at [email protected].

100 Percent Turn Over to the Business Offi ce

How to Average $3,000 to $4,000 Gross Profi t per Vehicle Sold

MarkTewartsts fos ls ms sf fi s


There are only fi ve ways to increase the bottom line of a business: Sell more vehicles, practice price elasticity (get more

gross profi t per sale), create more repeat customers, increase the speed of the buying cycle for your current customers, and create continuity programs by getting the customer to continually do business with you (service, add-on selling etc.). Although all are important, one can be obtained instantly and with a huge impact - price elasticity and the ability to increase gross profi ts.

There are four critical areas to increasing your gross profi t. The fi rst stage is in the sales process. There is an old saying that “sales people control numbers and managers control gross profi ts.” I defi nitely disagree with that saying. You must create rapport, fi nd the customer’s real or perceived problem, identify the customer’s hot buttons, communicate and listen to the customer, fi nd the right vehicle, give a tailored presentation/demonstration that creates an emotional bond, encourage a proposal and have a positive and enthusiastic attitude towards your customer and the sale before gross profi t can occur. The best manager cannot help a sales person create gross profi t if those things have not occurred.

The manager must act as a check point to make sure that all these things occur before giving a proposal. Have you ever been in a meeting where the manager is talking about selling value and not price? I’m sure you have been in one of those meetings where, after you left, the fi rst thing you were asked when you brought a customer proposal sheet to the manager was “What payment do they want to be at?” and “How much money do they have down?” Obviously these questions are based upon money, not value.

Try developing 10 questions that double check the sales process before you discuss fi gures. The following is a potential list:

1. Has the customer driven the vehicle?2. What does the customer like or dislike

about the vehicle?3. Does the customer live/work near

here?4. Has the customer done business here

before? Service or Sales?5. Describe the customer’s trade-in6. What does the customer like or dislike

about their current vehicle?7. Does the customer have a current or

past payment on the vehicle? If there is or was a payment, how much? If the customer paid cash for the vehicle, how much did they pay?

8. If the customer has a payoff, how much is it and how many payments are left?

9. What is the customer’s Hope For Gain (HFG) in this purchase?

10. Who is the primary driver? Are there any secondary drivers? If so, will the secondary driver be involved in the selection?

The second way to create higher gross profi ts is in the deal proposal stage. Disclose all fi gures to the customer: price, trade, difference, payoff, total balances, payments, down payments and terms.

Preferably, you should show three payment options for every customer. You may give two payments at the same term but with different down payments and then one payment as a lease or with a different term. This proposal will allow a perfect alternative choice close at the end that allows the customer to save face if they don’t like either of the proposals. This will also allow customers to focus on what matters to them most. For most customers, this is their budget.

Difference negotiating, trades or price leads to lower gross profi ts and lots of negotiating on things that won’t ultimately matter to the customer. When you negotiate solely on price, trade or difference, often the customer is not really closed even after agreeing on a fi gure because the budgets aren’t agreeable.

When you give a proposal using budgets, make sure you are asking at least 25 percent down for one of the proposals. Down payment is a key to deal structure, gross profi ts and getting deals approved. People also will react better if you show down payment amounts and relate that to percentages. Percentages allow people to understand where the fi gures come from. Remember that between price, trade, down payment, payment or term, down payment is the only one that the customer controls 100 percent.

The third area that will improve gross profi ts is to understand what to do at the customer’s fi rst objection. You must know what to say and write when the customer objects to price, trade, down payment, payment, term or anything else. You must be prepared to the point that you don’t have to think or blink about what to do next.

When the customer objects, never ask them what they were thinking or what fi gure they would like to be at. At best, this lowers gross profi t but usually keeps the customer from buying because it creates a shopping mentality in the customer. When you ask a customer to give you a fi gure they will buy at, they either give you a low-ball fi gure or tell you that you are the sales person and you should tell them. At fi rst objection, you must always verify and validate your original proposal. Otherwise, you invalidate yourself, your dealership and your proposal.

Used vehicles are also the key to increasing your overall gross profi t. Most used cars are under-priced from the beginning. Practicing price elasticity allows you to ask more than you currently are asking and fi nding that you almost always under-price your vehicles versus what people will pay. Gross profi t is a state of mind, and price cutting is a self-infl icted wound.

Creating higher gross profi t also becomes much easier with good lender relations and a thorough knowledge of each lender’s buying parameters. Knowing which bank to send the deal to, how to structure it and asking the bank for maximum values are essential.

The ability to obtain higher gross profi ts is part science and part art. You must understand the mechanics, but you must have the belief system to support the mechanics. One without the other will lead to the failure to obtain higher gross profi ts.

To fi nd out how Tewart Enterprises averages over $4,000 per vehicle per sales event, e-mail me with $4,000 in the subject line.

Mark Tewart is the president of Tewart Enterprises. He can be contacted at 866.429.6844, or by e-mail [email protected].


Are You Looking fora New Way to MerchandiseYour Pre-Owned Inventory?

Dealix Drives Success.

Call Dealix today at (800) 717-8079, or visit www.dealix.com.

Dealix Drives Success.

Introducing Dealix’s Used CarAdvertising and Leads Program

Call Dealix today at (800) 717-8079, or visit www.dealix.com.

Investing theFundamentals, Part 3

TimShea

36

Over the past few months I have introduced three of fi ve critical factors for success in subprime auto sales. The fourth

of those success factors is: Having effi cient business systems to enhance the success your dealership enjoys, keep in mind the following suggestions:

• Use a central log to track the dealership’s subprime traffi c separate from your A and B traffi c.

Keep a log. A log acts as a tool to help you measure and manage your critical tasks. If sales is a numbers game, then your closing ratio is the solution to an equation. To increase sales, you must fi rst increase your number of prospects. If you are proactively generating leads directly to your subprime staff, they are responsible to make initial contacts and set appointments. From shown appointments, you also must make lender submissions and get approvals. Your approvals will dictate your prospect’s vehicle selection which is tied to your inventory. Therefore, your closing ratio is directly related to your success at managing each of the components or critical tasks. Improve one and it has a multiplying effect through the entire sales process.

• Foster the ability to capture and keep customers involved solely in a credit decision until you are ready to move them to a product decision.

When are your subprime prospects engaging in product decisions? Is it when you advertise? Possibly when they arrive at your lot? Maybe it’s during the initial interview process? Or is it after you and the lender have determined which vehicles are “fi nance appropriate” and you’ve provided a selection for them to choose from? The sooner your prospects enter into that product decision, the lower your chances are of delivering a unit and maximizing gross. To excel in subprime sales you must work your prospects “backwards” through the sales cycle. Keeping control

of the timing of product decisions is your responsibility and following are some steps you can take to improve control.

First, look at your advertising. Target subprime prospects with your advertising and drive them directly to your subprime staff. This allows the appropriate staff to control the sales process and achieve a greater success rate than “front end fl ips.” Consider using “blind” advertising as a signifi cant component of your marketing plan. Blind ads engage customers in a “credit,” not a “product” decision. Advertising that identifi es your dealership name and make has a place. Remember, however, it does ask your prospect to fi rst make product decision and may drive some prospects to a competitor.

Second, separate the process of initial customer interviews from the sales process. The use of toll-free numbers is an effective way to do this. Use a service to answer those toll free numbers because live operators provide a better ROI than Interactive Voice Response systems.

Finally, create a credit-counseling culture within your subprime fi nance and sales staff. Their responsibility is to help customers re-establish credit or secure the credit necessary to purchase a vehicle that meets the customer’s needs. Your staff needs to control the process. If your subprime prospects arrive on the lot and are allowed to go pick the vehicle of their choice before you evaluate credit, you are missing the mark.

• Keep in mind the 100/50/25/10 rule – also referred to as subprime metrics: For every 100 workable leads, you should be presenting approximately 50 percent of them to your lenders. Of the 50 percent presented to lenders, you should be seeing an approval rate of approximately 50 percent. Of the net 25 percent approved, you should deliver between 40 to 60 percent resulting in a net 10 to 15 percent delivery ratio.

Tracking these metrics will also allow you

to identify areas of improvement for your subprime sales effort. If you miss the net 25 percent approval ratio it points toward a need to improve either the quality of your lead fl ow, the depth of your lender mix or the aggressiveness of your staff in working your prospects. If you are achieving a net 25 percent approval ratio but are not closing the right percentage, it most often points to a problem with inventory, the process by which you’ve let the customer select a vehicle or your closing skills. A little bit of discipline tracking these metrics will again provide a huge return to your bottom line.

• Create prioritized systems and processes to work the customer: initial callbacks, setting appointments, interviews, stip collection, income verifi cation and more.

Establish systems and processes to complete your work detail and make sure your staff is familiar with them. Just knowing where to look for information brings a phenomenal increase in productivity. Your systems and processes should be known and accessible by everyone that touches your subprime sales. For instance, if notes are taken regarding a particular customer, make sure they are accessible to all. Your work detail is dynamic, so there is no question that an electronic solution will work best. Not quite sure where to start? E-mail me and I’ll be glad to provide you with some free ideas.

As the metrics above show, successful dealerships close between 10 to 15 percent of their subprime traffi c. What about the other 85 to 90 percent of the prospects? Not all are deliverable but effi cient business systems will help you fi nd those that are and allow you to move beyond successful to phenomenal. If you would like to receive the “49.5 ways to SUPERCHARGE your SubPrime Sales and Profi ts,” e-mail me.

Tim Shea is the president of Great Direct Concepts. He can be contacted at 866.853.0223, or by e-mail [email protected].

sts fos ls ms sfs fi s

special fi nance solution


October 24th & 25th - Irvine, CA

Reward for Improved Performance

RichardLibinsts fos ls ms sf fi s

leadership solution

Annually, automobile dealerships spend millions to draw foot traffi c into their stores. Increasing close ratios requires a consistent,

positive attitude that emanates from the top and that is nurtured with fair, inclusive motivational practices.

How does management instill positive attitudes and keep them that way? How do they motivate every sales person to view each individual who comes into the dealership as a prospect who wants to drive away in a new vehicle? Motivation and incentives.

Take the daily sales meeting. Hold motivationalmeetings. Bring bagels, cream cheese and coffee to get the day started. Talk about the positive aspects of the dealership. Don’t single out individuals; focus on the team. Give everyone – not just “stars” – tickets to a local movie. These small investments make a huge difference. Motivational meetings set the stage for nurturing a positive attitude and

provide the tools that help sales people sell.

Typically, sales people are judged on how many units they sell. Sales contests are set-up to reward top performers. Commissions are paid based on the number of units sold, and additional “incentives” are based on volume. Take, for example, a contest where the winning sales person who sells 20 cars in the month of September may win a plasma TV. The sales person who sells a combined 40 cars in September and October wins a mini-vacation.

Design sales contests based on the current performance level of every team member and that reward for improved performance. To establish a performance baseline, the dealership needs an accurate traffi c count. Let’s look at “Joe” and “Bill.” In one month, Joe talked to 150 prospects and sold 20 cars. Bill worked 40 prospects and sold 8 cars. Most would agree that Joe performed better because he sold more units. In reality, Joe missed sales opportunities with 130 prospects, closing only about 13 percent, while Bill only missed

32 opportunities and closed 20 percent. Who actually did a better job?

Only when units sold is put in the context of traffi c count can management gain an accurate measure of performance and structure sales contests that motivate the entire team by rewarding true performance measured in improved closing ratios.

Motivation and incentives are powerful tools that can improve performance and add to the bottom line when used effectively. To create a positive attitude that encourages sales people to see every person who comes to a dealership as a potential commission or sale, these tools must be applied consistently and fairly. What would one more sale per sales person per month mean for your dealership over the next 12 months?

Richard F. Libin is president of Automotive Profi t Builders, Inc. He can be contacted at 866.450.6853, or by e-mail [email protected].

37september 2006

An Internet Departmentor an Internet Dealership

DavidKainsts fos ls ms sf fi s

marketing solution

38

Based on today’s experience within dealerships, one can make a compelling case that an Internet department is defi nitely

the way to go when it comes to setting up the best structure to increase online sales. At the same time, I want to present a case that setting up an Internet dealership is another option that may actually provide better long-term results. What’s the difference? Let’s take a look at both.

Structure• Internet Department – An Internet department can be as simple as one person or an entire team. This design allows the staff to focus their efforts on one primary source of business – the Internet. By providing a clear focus, the Internet team is typically faster to respond to customer inquiries and to provide a high quality experience. By relying on the Internet as their primary source of revenue, the Internet staff assures continuous improvement and clearer measurements of success.

As sales opportunities grow, the department has to be expanded and this causes the need to either promote from within or hire from the outside. In addition, as the Internet becomes the preferred way for auto shoppers to start the buying process, you could end up with a larger Internet department than the traditional sales staff, which escalates the friction that is likely already in place.

• Internet Dealership – An Internet dealership is set up to take advantage of a structure that is already in place at the dealership. Most dealerships have a dealer/GM role with a sales manager and a sales team. Some, of course, have general sales managers and separate new and used vehicle managers. Typically, the people in these roles are your most experienced at selling and managing people. Most of the time your traditional sales teams are fully acquainted with working with walk-in and phone-in prospects but to a lesser extent are they either asked to or required to work with Internet customers.

Traditional sales teams have been wrongly accused of being too focused on “selling

today” to effectively work with Internet customers. However, most traditional sales people work with “be-backs” everyday and effective sales people condition them to return with follow-up activities, such as phone calls, letters and even e-mails. Imagine your most effective sales people working with Internet prospects in a manner that allows them to use their very best sales skills on customers who want to buy now as well as those who want to think about it. If these traditional sales teams had the structure, guidance and technology in place to guide them along, they would quickly adapt to effectively servicing Internet prospects the same way they do a great job with their fl oor and phone-in prospects.

Management• Internet Department – The manager of an Internet department is typically a person raised in the Internet environment that may or may not have been a traditional sales manager at the dealership. In any case, their role is to grow sales for the dealership through effective online marketing that generates electronic leads, telephone leads and walk-in prospects. By focusing in this area, they typically can be successful in their role.

Where I have seen opportunity for improvement in the Internet department structure is in the development of the people management skills and the business management skills of these key managers. Internet managers that have high-level teaching and business skills will become an increasingly greater asset for the dealerships.

• Internet Dealership – Since most dealerships already have structure in place for managing sales, it seems to make good sense that the management team becomes adaptive to different sales opportunities. Progressive sales managers should actually embrace the Internet leads as those of their sales department, instead of sitting by while another management role is created to manage the fastest growing part of the business.

Imagine the benefi t of having a progressive sales management team that embraces all

customers, despite their method of contacting the dealership. This would mean that walk-ins, phone-ins and Internet leads would all receive the very best treatment.

All automotive shoppers want great service. I feel that you have the greatest potential for sustainable growth when your sales managers are responsible for providing the best-possible buying experience, regardless of the customer path.

Product Knowledge & Process Knowledge• Internet Department – Internet department employees should strive to know as much as possible about their products and services. There are some departments structured with call-center teams that are actually encouraged not to know the products or services they provide. The rationale is that if they do not know it, they will not talk too much to the customer and lose focus on gaining an appointment. In my own personal experience, I found it much easier to sell an appointment to someone who appreciated how much I knew about the products and was drawn to the dealership as a result.

• Internet Dealership – Traditional sales people who have been selling at a dealership should have fi nely honed product knowledge skills that they can use to persuade prospects to consider their brand. The focus in their training for the Internet is on the process of selling the appointment instead of selling the vehicle. Imagine how powerful they can be in working with all prospects when they develop both skills to their full potential.

The good news is whether you are using an Internet department model or building an Internet dealership model, you can have extraordinary results. Choose the path that best fi ts your long-term planning and start pushing for better Internet sales and profi ts.

David Kain is the automotive Internet training specialist at Kain Automotive Inc. He can be contacted at 800.385.0095, or by e-mail at [email protected], or visit www.kainautomotive.com.


40

PattiWoodsts fos ls ms sf fi s


Imagine that you’re talking with a customer, and your gut is telling you that they just lied to you. How can you know for sure? The

general population is only able to detect deception 50 percent of the time. Even people such as police offi cers, lawyers and therapists,

whose occupations require them to ferret out the truth, accurately identify only 50 percent of the lies they hear. That’s the same average you would get from tossing a coin. Most of us don’t want to gamble on something that important. The good news is that research shows if you receive training you can increase ability to spot deception. According to research studies, we may hear as many as

10 lies every hour. Have you ever wondered why it is so diffi cult to detect a lie?

There are two main reasons it’s diffi cult to detect deception. The fi rst reason is because of the “halo” and “devil” effect. In the halo effect we form a fi rst impression that is positive. We might form that halo effect for many reasons, perhaps because the person is attractive or has a nice smile. Unfortunately, unlike our accurate gut impressions based on body language, halo effects create fi rst impressions based on stereotypes formed in the left hemisphere and are only about 30 percent accurate. So if you form one, you’re already at a disadvantage.

But there is an additional problem that affects your lie detection abilities. Once we form the halo, all the person’s subsequent behaviors seem positive to us. In fact, we negate what would otherwise be considered negative behaviors because our halo impression discounts them.

For example, let’s say you interview a happy and enthusiastic candidate for a job in your company and create a favorable halo impression of him. When he hesitates and pauses and stutters as you ask him about why he is no longer at his last job, you discount the nonverbal cues that might alert you to the fact that he is lying or at least has something to hide. Instead, you say to yourself, “He’s a great guy. I bet he is doing that because he is excited or nervous.”

This happens in social situations as well. A man meets an attractive woman at a party. She smiles and laughs when he makes a joke and so he forms a halo impression of her. When he asks for her home phone number, she looks down and pauses before saying, “Oh, my home phone number is not working. Let me give you my cell phone number instead.” If he formed a halo impression of her because she is pretty, he might discount the suspicious cues she gave, that is, looking down and pausing. Those cues might indicate that what she says after them is a lie. Perhaps her home phone number is indeed working, but she’s married and her husband might pick up the phone, so she’s giving the man her cell phone number instead.

Forming a devil effect, which is a quick negative fi rst impression, can actually help you be more accurate at detecting deception. That may seem a rather cynical idea, but research says that people who are skeptical

Are They LyingWhy It’s Hard to Tell and How You Can Become More Accurate


41september 2006

are actually more accurate in detecting deception. Of course having a devil impression can create bias so that you think people are lying merely because you don’t like them. Yet research suggests that merely setting the expectation that a particular person might lie increases your detection abilities.

The second reason we do not accurately identify a lie is that we label the wrong cues as deception cues. The No. 1 cue that we misinterpret involves eye contact. Most people believe that when someone does not look you in the eye, that person is lying. In fact, it’s such a prominent misperception that even police offi cers defi ne a lack of eye contact as a sign of deception. When a police offi cer wearing a black uniform and a gun pulls someone over, comes up to the car window, leans in and asks the driver what he or she is up to, that person is most likely going to avert his or her gaze, not because the trunk is full of stolen fi rearms, drugs or big screen televisions, but because the person is scared. Knowing which cues are questionable and which are true deception cues prevents mislabeling.

So how can you increase accuracy? There are a number of steps you take:

First, get a baseline of normal behavior, both verbal and nonverbal, so you can tell when the person makes signifi cant changes to his or her normal behavior. When I taught interview and interrogation techniques to law-enforcement offi cers, we called this “getting a constant.” Briefl y you want to know things such as how smart the person is, whether he is mad or tired, whether he normally speaks slowly or quickly. In the same way that simple, innocuous questions on a lie detector test give a baseline of how the needle will move up and down on the printout page when the person is telling the truth, you need to get an idea of “normal behaviors.

Second, look at the whole person and all the behaviors. One cue in isolation does not a liar make. What is the rest of the body saying? And if the person’s words sound inaccurate, what about the person’s body language? If he or she seems to not give off deception cues through words and body language, listen to the paralanguage - the way the person speaks (pauses, tone, volume). Paralanguage is one of the most reliable places to detect deception. For example, the prospect may say, “I didn’t do it.” A contraction typically indicates he is telling the truth as liars often don’t use contractions. He can point his fi nger at you, emphatically bouncing it up and down. Liars, unless they are powerful egocentrics such as politicians or sports stars, rarely point while telling a lie.

However, if his voice goes up an octave or two on the word “didn’t,” then he just might be lying as the vocal chords tend to constrict and make the voice squeak out higher than normal when someone is lying.

Finally, search for multiple cues, and ask more questions if you’re not sure. If you see one cue, don’t immediately say to yourself, “That person is lying.” Instead, if you see one cue, search further. You can ask a question that relates to it to see if that cue is repeated or if other cues emerge, look at the other parts of the body for additional cues or sit a bit closer to see if more cues come

out under stress. Don’t settle for one cue to tell you something as important as whether or not someone is telling a lie.

Studying deception cues is fascinating. These steps will increase your accuracy as soon as you begin to use them. In future articles I’ll provide more tools to help you refi ne your lie detection abilities.

Patti Wood, MA, CSP is a professional speaker, author and coach at Communication Dynamics. She can be contacted at 800.849.3651, or by e-mail at [email protected].

continued

Welcome to today’s main event: Your business and your life.

Is your approach and your thinking more like

a marathon or a race? What’s the difference? Big difference.

Think about that one for a second. How many winners in a race? When I ask that question to a live audience, it doesn’t take long for someone to shout, “One!” That’s it, one winner in every race.

How about a marathon? Why do marathoners run? To fi nish fi rst? Some people say a marathon is just a long race (26.2 miles is certainly long). How many winners are there in a marathon? Anyone who competes, certainly anyone who fi nishes, considers it a personal victory. Why is that? That’s great student stuff. There are great life lessons in there somewhere, on preparing, training, focusing, sacrifi cing and fi nishing the course. Do you look at your life, your work, as a marathon, or a race?

I have a friend who is a runner. Jim is a president and CEO of a multi-million dollar company. He is passionate about many things, including his business, and he loves to run. I mean he loves running. He loves thinking about running and discussing running and even preparing to run. He’s a subscriber to all the runner magazines and has runner friends, and really studies the art of running.

Jim has competed in a variety of “runs”, like the Kiawah Marathon outside of Charleston, South Carolina where Jim fi nished fi rst in the over-40 division. And he fi nished 17th overall out of 2,400 runners. Jim told me he trained for seven months, almost every day for that run. He calls it his greatest athletic accomplishment.

This is from an all-conference running back who’s had 90-yard touchdown runs and 400-yard rushing games. He’s also had baseball successes, and has played golf all over the world. But when Jim hurt his back it wasn’t his golf game he missed most, it was his running. I’ll never forget sitting across from him at his desk and listening to his passion in talking about his preparation and his next participation in this activity.

It seems Jim’s always training for his next

Marathons and Races:Which One Are You Running

MichaelYork

run. He is highly motivated to set a personal best in his next marathon. It might be slightly different from a personal best that you or I would consider. His goal? To fi nish 26.2 miles in under three hours. If you do the math on that one, you’ll see that it’s an incredible pace. Something tells me Jim might just get to check that goal off the list one day.

And while that big wooden pelican sits on Jim’s desk marking his accomplishment for that day at Kiawah, there were 2,399 others who by fi nishing, or maybe just participating, also consider themselves winners.

It’s an Amazing Thing to Witness A Marathon First Hand.At fi rst glance you might think “what’s the big deal,” but allow me to share a story with you about one of my marathon experiences - as a spectator, albeit an “active” spectator.

Once upon a time in New York City, on the fi rst day of November… I was in town for a conference, and that Sunday was a free day for enjoying the city. When I realized that this was the day of the famous New York City Marathon, I decided to spend my afternoon exploring a 26-mile adventure that is the ultimate challenge for thousands of runners of all ages, and to do something “uncommon” to capture my special memory of this day.

I had bought a hardcover pictorial book of New York City from a street vendor. After watching some of the runners on the marathon course, I got the idea to get my book from my hotel room and have these marathoners sign it as they came off the course. It was amazing and inspiring, to see these runners from all over the world pushing through the fi nal few hundred feet of this historic course and literally collapse after crossing the fi nish line.

There were many friends and family members there to comfort and congratulate and carry away these combatants, these victors. Each one was wrapped in a thermal blanket and as they passed by me in various stages of exhaustion, I asked as best I could - many obviously spoke no English - if they would sign my book. Sometimes just extending the book and the pen was enough for them to understand what I was asking.

It was their moment. And it was being captured, if only by someone they didn’t even know. You could see their eyes light up, as if

they were being asked for an autograph like some celebrity or sports hero. Many were amazed at the request, but most all signed, happily. It was a fascinating sight. As best I could I asked where each was from….

Atlanta, Boston, Baton Rouge. San Antonio, Brazil, Holland, Venezuela and Mexico.England, Switzerland, Germany, Japan and more.

Many wrote little asides or humorous lines or even an occasional message of inspiration. But the best of the day was from a gentleman who had to be in his sixties, maybe even a member of the over-70 division. Inching along the sidewalk, drawing on every ounce of his strength to make his next step and surrounded by his family who were almost carrying him in their arms, and took my pen to write these words:

‘There is but one freedom: Man running alone. And the courage it takes to be there.”

And then signed his name, which if I could make out I would happily share with you here. I don’t know where he fi nished in the marathon that day in New York, but I will always remember him as a winner.

What a day that was, made a more memorable experience for me because it was shared with all those performers from around the world who rose to this challenge and won.

Don’t fall into the trap of comparing yourself to someone else, on the job or in life. Compare yourself to the potential inside you. To dare. To try. To attempt something incredible, and see it through. Something that you, and others, will never forget. Try becoming better than you are now and see what can happen.

In Life, as in a Marathon, There is noLimit to the Winners. By choosing to participate you have taken a leap from the ordinary into an extraordinary journey. Stay the course; press on.

As I watched those runners come through Central Park on that beautiful autumn afternoon, I thought about so many things. But at the top of the list was this: Life is Good. Drink it up. While we still can.

Michael York is an author and professional speaker. He can be contacted at 800.668.5015, or by e-mail [email protected], or visit www.MichaelYork.com.




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Case Study:

ithin the last year, Harvey Autos has in-creased their online sales by 70-80 addi-tional units per month, a healthy increase from

selling only 5-8 units per month just a few short months ago. This sig-nificant increase is due to the imple-mentation of a new digital market-ing strategy. This small dealership in Bossier City, Louisiana is now on their way to staking claim of being the largest online sales dealership in Louisiana. How’d they do it? In this article we will investigate how Gloria Williams, eCommerce Director at Harvey Autos, helped her dealer-ship achieve this phenomenal success.

WHY DID YOU TURN YOUR FOCUS TO THE INTERNET? We used to be a typical southern small town dealership selling maybe 5-8 In-ternet leads a month. We learned that the majority of our customers were changing their buying initiatives by starting their shopping online. Since our customers were changing their processes, we decided to do the same, and the internet was the obvious solu-tion. We needed to find an effective way to lead our new-age customers to our Website instead of to our competi-tors’ Websites.

HOW IMPORTANT ARE THE PEO-PLE BEHIND YOUR STRATEGY? Having an enthusiastic team to work with is crucial. Kasey Boddie, Mar-keting Manager, eCommerce Director

Laney Wheeler, and I are very excited and confident about the digital market-ing strategy we have in place. General Manager John Harvey is passionate about his support, and it’s contagious. Having wholehearted support from the entire dealership staff has truly driven our success. After trying a number of different approaches to winning with the Internet, the management began research into available innovative so-lutions that would help Harvey Autos build an online marketing presence within our local market. It was de-cided that BZ Results offered the most fully rounded digital marketing solu-tion that included a complete Search Engine Marketing strategy, state of the art website, marketing tools like the BuzzTrak CRM, and a comprehensive onsite training solution.

Success Story

Success StoryWHAT TYPE OF PEOPLE DO YOU STAFF YOUR DEPARTMENT WITH?At Harvey Autos, we have the highest standards. When interviewing pro-spective colleagues, the first thing we look for is self-confidence. Being self-confident means being comfortable with yourself and embracing the value of your own personal strengths. These virtuous qualities are what will help our team build value in Harvey Autos. All of our staff has friendly voices and awesome phone skills geared toward knowing how to set the appointment.

HOW ARE YOUR EMPLOYEES TRAINED?Being a small dealership we are al-ways trying to be resourceful. We had an opportunity to take advantage of State funding to pay for a years worth of training within our dealership for our sales department. Come to find out many states offer grants to further em-ployee training and advancement. After we received the grant money from the state, we teamed up with a BZ Results trainer who visits our store monthly to help us build a training strategy. This partnership with our digital marketing

providers helps us keep our strategy aligned both offline and online, and our trainer helps us by providing new ideas and has even been instrumental in the interviewing of candidates for our expanding department. One of the areas in which we have been the most successful is training our employees to follow scripts. The appointment sellers have become so proficient at setting and selling appointments that they now take all of the incoming calls

since almost 75% of the store’s calls come from the Internet anyway.

HOW DID YOU SET UP YOUR WEBSITE? BZ Results designed and created our site based on the needs and interests of consumers in our region coupled with the knowledge and auto industry ex-pertise of the BZ team. They provided us with a cutting-edge website fully equipped with state of the art features. We used BZ Results tools and training to establish ourselves as the primary internet buying service for our region. Our new website is key to generat-ing internet leads, phone traffic and showroom traffic while promoting all of our profit centers within the dealer-ship from Sales (New, Used) to F&I, and Service & Parts.

HOW DID YOU MARKET YOUR SITE?We took the basic steps like including a simple and easy to remember website address in all of our ad copy. The fea-ture that has really generated the most interest in our site is the “Buzzmail.” We develop specials and marketing campaigns that we mail out to the ad-

Our Search Engine Marketing consultants make sure we dominate page ranking while our customers search for an automobile within our market” Gloria Williams, eCommerce Director

In a Nutshell• Harvey Autos hired BZResults.com to set up their e-marketing system, web-sites, CRM tools & training.

• Harvey Autos uses mass Search Engine Marketing to attract new buyers because it is inexpensive and produces a high return.

•Harvey Autos has trained their people on a successful process to increase their appointments and show ratios.

•Harvey Autos uses a customer management system to manage and measure all of their customer activity.

• Harvey Autos uses their CRM tool to automate their email and follow up activity. This automation ensures communication is sent to customers and allows the salesman to focus on selling cars.

• HarveyAutos.com is the #1 online dealer in Louisiana

• Harvey Autos uses internet marketing to improve their profits in sales & ser-vice departments while reducing overall advertising costs

• Harvey Autos has dominated the search engines and has successfully cre-ated a regional buying service at www.HarveyAutos.com

Success Story

Success Story

we feel that we should be selling the value in the appointment while build-ing the benefits of buying from Harvey Autos. When we do address the price, we ask for a reasonable profit and we also emphasize the unique benefits they receive by buying from us versus our competition.

HOW DO YOU GATHER EMAILS IN THE DEALERSHIP? We’ve trained our sales staff, service writers, and finance directors to col-lect email addresses when writing up deals, closing service RO’s, and completing finance contracts. This is a fundamental part of our strategy because we see the value of contact-ing our customers using this electronic medium. Our digital marketing sys-tem is loaded with opportunities to acquire emails from customers. The multi-media presentations such as Vir-tual Test Drive, Why Buy, Should I Buy or Trade Tutorials, and Personal Website invitations all engage the cus-tomer to complete a form requesting an email address. The gathering pro-cess is fully automated and generates a report for me each morning to review all of our opportunities from the previ-ous day including the type, source, and status of the prospect. In addition to

our internal email-acquisition efforts, we’ve been successful in uncovering hidden email data bases within our dealership. Just recently, we stumbled across a data base that Gulf States Toy-ota was managing on our behalf that was loaded with tons of our customer’s email addresses which we subsequent-ly uploaded into our BuzzTrak system. This has been helpful in building our email marketing data base.

WHAT ARE YOUR PLANS FOR THE FUTURE?

Now that we have a good handle on Internet and incoming phone oppor-tunities, the game plan is to grow ad-ditional opportunities with Search En-gine Marketing and to grow the BDC Team to also focus on Sold and Unsold Follow-up as well as following-up with Service Customers who have recently been in for repairs and have over 50,000 miles on their vehicles. We’re pushing for 100+ units alone from this department and are expanding the department with another staffer this month to help with the load.

Success Story

Success Story

“HarveyAutos.com has helped us sell an additional 70 plus units a month and it is completely different from any other site in the market.” Kasey Boddie, Marketing Manager

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Success Story

Success Story

dresses in our data base every month. These multi-media “mini” commer-cials can be sent out in very little time with just a few clicks. We also take advantage of advanced Search Engine Marketing to promote our website. SEM ensures that we get listed ahead of competitors on the popular search engines. I don’t know exactly how the formula works, but I know it’s ef-fective. We have seen our leads more than double and our phones are ring-ing off the hook.

WHAT DO YOU HAVE THAT IS DIFFERENT FROM OTHER DEALERS WEBSITES?Results are what our website is all about. Our website has consistently converted 5-6 times more visitors into leads over our previous site. Because our site was created by experts who understand the car business, it builds value in our dealership. Another nice feature is “Virtual Test Drive” which gives the consumer a multi-media tour of the vehicle they are interested in. Whether the customer is a high speed or dial-up user, the tours engage the consumers and intimately connect them to the vehicle. Other features that our

customers comment on are the unique “Why Buy” Buzzmails or “Trade In Tutorial” micro websites that can be sent to our customers with links to our specials, coupons and contact forms that keep the customer engaged in the buying cycle. For the credit challenged buyers, the “Fresh Start Finance” fea-ture allows the customer to apply and be approved for an auto loan online, in the privacy of their home. Our entire eCommerce staff enjoys the automated updating of the website which requires little time and attention.

WHAT LEAD PROVIDERS DO YOU USE AND WHY?We began with many 3rd party lead providers, but most had very low clos-ing ratios and high costs per sale. We have narrowed down our 3rd party pro-viders to those who have a nationwide presence in the market like Cars.com and Auto Trader. We capitalize on their exposure while ensuring that our website is a dominating buying service in Louisiana. Our best lead provider is a popup coupon on our BZ website offering a $200 savings if brought into the dealership.

WHAT IS AUTOMATED AND WHY IS IT IMPORTANT?The great thing about automation is that it’s working even when your em-ployees aren’t. What I particularly like about our automation is that whenever someone fills out a form, BuzzTrak instantly follows up with a relevant response. This is particularly handy on Sunday when we’re closed. When a customer visits our website and is looking for information, our auto re-sponders provide an immediate perti-nent response. Our customers appre-ciate this, and when I return to work, the customer has already responded back and the auto responder sets the stage for the initial phone call. An-other import part of our automation is that BuzzTrak complies with the CAN Spam Compliance Act. Our system only sends out permission based email campaigns.

HOW DO YOU HANDLE PRIC-ING?The most important thing is to always respond to pricing with positive state-ments like,” I am sure we can come to acceptable terms.” Pricing can’t always be measured in dollars and cents, and

PERSONNEL PROFILE Gloria Williams, an ambitious 25 year old Northwestern State University graduate living at home with her parents, was working as a telemarketer at a local call center. Desiring to fur-ther herself in the professional field, she noticed an employment opportunity on the LSUS Career Center Website that peaked her interest. What caught Gloria’s eye was an ad posted by Harvey Auto Center looking for a full time Internet Manager to handle incoming calls.

After discussions with the manager, everything about the job interested her with one excep-tion. She would be taking a 30% reduction of her current base pay. General Manager, John Harvey had proposed an incentive program to offset the reduction based on the amount of appointments she would set and bring into the dealership. After much prayer, Gloria took a step in faith and accepted the position.

After 12 short months, Gloria was instrumental in the 500% growth of internet leads that generated an additional 70 units per month in internet sales for Harvey Autos at a reduced cost per unit. Gloria, who is now closing on the purchase of her first home, is excited about stepping out on her own and is eagerly looking forward to her continued growth and success as eCommerce Director at Harvey Autos.

AutoSuccess Sep06

Business

Transcript of AutoSuccess Sep06