The 2009 Synergy Sessions - Details on page 19

June 2009

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pg18marketing solution

sales & training solution

leadership solution

feature solutionJune 2009

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By DalePollak

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Are you looking forcustomers who aren’tthere?

DougBurkert 24 MAXIMIZE MARKETING DOLLARSLocal Charity Golf Tournaments Reach Important Target Markets

DrakeBaerresen 26

WEB MERCHANDISING:Let’s Get Emotional

TimJames 22

PeterMartin 32

STILL STANDING: WHAT DO YOU DO NOW?

USING GOOGLE ANALYTICS WITHE-MAIL MARKETINGIncrease Reporting Capabilities and Boost Relevancy and Response, Part 2

SteveCottrell 36 START REBUILDING RELATIONSHIPS

SeanStapleton 10 SELLING OUT OF A RECESSION

ROIIs the Lemon Worth the Squeeze?

MichaelThomas 16

DavidBook 18

EIGHT WORDS TO HELP YOU NEGOTIATEMORE EFFECTIVELY

KirkManzo 17SALESPERSON QUIZ:How Does Your Staff Measure Up?

MarcSmith 28 WHAT WAS THEIR NAME AGAIN?

SeanV.Bradley 30 CAR SALESMAN MAKES $200,000 INTHIS ECONOMYInternet Sales 20 Group XVII

8TH HABIT LEADERSHIP:Leading the Whole Person

StephenR.Covey

14 LEAPING TOWARDS THE TOP:How a Houston Internet Department Jumped 45 Spots inNational Rankings

An Interview WithJoeHealy

08SURVIVE OR PERISHPaulCummings 09

BEWARE OF FALSE PROFITSTomBear 25

MOVING THE NEEDLE TOWARDS POSITIVEMOMENTUM

MattBaker 34

TIME IS UP. THE RED FLAG RULE IS HEREPatrickColbert 27

www.autosuccessonline.com

StephenR.Covey

8TH HABIT LEADERSHIP:Leading the Whole Person

08

A few issues ago, I said that too many

managers are still stuck in an Industrial Age mindset that treats people as things.

Many think we put the Industrial Age behind us. Many think we’re in a new “Age of the Knowledge Worker.” Many think the bad old days of robotic workers and hierarchical mindlessness are over.

But these damaging attitudes persevere — in some ways worse than ever. Consider these instances:

• The fast-food worker whose cash register blinks “too slow” if she takes too many seconds on an order

• The nurse required to wear a “locator badge” that rings every few minutes even when he is trying to calm a patient or put a child to sleep

• The required “annual performance review” system that creates division, destroys morale and motivates people to leave

During the Industrial Age, a worker at least had a supervisor to talk to. In many cases today supervision is done digitally and at long distance.

Contrast this kind of dehumanizing management with the kind of leadership that truly leverages the worker as a whole person — who values the minds, hearts and spirits of his people:

• The pizzeria manager who huddles with his employees once a week and asks, “What could we do this week that we’ve never done before?”

• The Navy captain who interviews each sailor to fi nd out about his or her most cherished dreams in life

• The division head who deeply understands what each of her people are really good at — and capitalizes on it

8th Habit Leadership starts with a deep understanding of your people as whole people.

Many leaders make minimal use of the capacity of their people, seeing them as “job descriptions.” They fail to see each person as a unique and precious asset, loaded with untapped potential.

By contrast, great leaders treat their people as whole people — not just as “human resources.” The whole person has four dimensions: the body (physical capability), the heart (passion), the mind (knowledge and skills), and the soul (meaning and purpose).

A leader who neglects any of these four dimensions inevitably treats people as things. If she neglects the hearts of her people, she will never engage their passions in their work. If she neglects their minds, she will never capitalize on the innovative ideas they could bring her.

Every great leader attends to all four dimensions of the whole person if she hopes to truly lead them — and to leverage their great capacities.

Captain Mike Abrashoff exemplifi es a great “8th-Habit” leader. He inherited a ship that was sinking — fi guratively. When he took command of the USS Benfold, the Navy warship had the worst performance record in the fl eet. Within a couple of years, the Benfold turned in the best performance record in the fl eet.

How did he do it? By getting to know his people— deeply and thoroughly. He interviewed each sailor, asking about their hopes, dreams, frustrations, goals, likes and dislikes. He found that many wanted college degrees; he arranged for long-distance learning opportunities. He found they hated painting the ship; he modifi ed the deck plating to cut back on painting. He got their brains working on doing things differently, better, faster.

To become an 8th Habit leader, you must practice the 8th Habit: Find your voice and help others fi nd theirs. Hear their voices.

Ask them about the four dimensions of their lives — at least once, and maybe often. Ask:

The Body• Is your “economic engine” in good

shape? • Are your family’s needs being met?

The Heart• What have you always loved doing?• What job-related opportunities are you

passionate about?

The Mind• What are you really good at?• What opportunities do you see for

growth and development?

The Spirit• Do you have peace of conscience? • What contribution would you love to

make here — something of real meaning to you?

Think of the power of a leader who knows these things about her people — about their untapped passions and skills. A leader who doesn’t know the answers to these questions is like the farmer who doesn’t know he is scratching out a living on top of an acre of diamonds.

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

leadership

solu

tion PaulCummings

leadership

solu

tion

SURVIVE ORPERISHWhat separates those dealers who survive

and thrive from those who panic, pullback and ultimately perish? In my opinion, the answer is simple. Dealers who still have that twinge of excitement in their stomach when they get up everyday will make it through these troubled times. Dealers who wake up with a feeling of fear in their gut and worry in their mind will make decisions that will lead them down a disastrous path. Which dealer group are you in? This is a tough — but fair — question for you to ask yourself.

Earlier this year we hosted an amazing event at the House of Blues in New Orleans. More than 1,700 dealers, automotive vendors and manufacturers attended our event. I had many conversations with clients and industry-related people who all wanted the answer to the same question: What do you think is going to happen to our industry? Uncertainty has the ability to foster doubt and drain people of their confi dence. When times like this slap us in the face, people look for hope and search for solutions.

So where do dealers fi nd the hope they need to push through their doubts? Where do they fi nd the confi dence they need in order to continue to believe in their business when the bad news is swirling all around them? How can they prevail when so many around them fall and fail? Where will they fi nd the inspiration they need in order to make the right decisions in the coming months? How can they drive their business forward when they fi nd themselves in the midst of continual predictions of doom and gloom?

I have been on the road since the House of Blues Event visiting with our clients. I have talked with people at every level of the business. My conversations have been full circle … from porters, service writers, receptionists, sales professionals, department managers and dealer principals. As we talked and discussed their current business results and future plans, I was encouraged at what I uncovered. It was a simple and clear distinction. Where there is leadership and positive expectancy, I found hope, enthusiasm, excitement and energy. I also found positive results.

I believe with every ounce of my being that I know the answers to all of the questions in this article. In fact, I know for certain that success leaves evidence. I found such evidence during my travels over the last 100 days. We must bring an end to an era where greed rules over common goodness.

We must devote ourselves to a bigger and better purpose than profi t above all else. The trappings of success have created a fl awed approach where the money mattered more than people. An era, in fact, where we were lulled into complacency by the shimmer and shine of our own achievements. We must realize that activity without accomplishment is meaningless.

We need a fundamental change of perspective and attitude. A change like this starts with you and cascades consistently through your people to your customers into your community. Yes, we must rekindle our spirits and relentlessly pursue our goals and dreams with a renewed level of passion. We must drive ourselves to a new level of commitment. We must make a commitment to do “whatever it takes” to win without sacrifi cing our integrity and character. We must make a commitment to invest in our people even while we build our investment accounts. Yes, we must commit to becoming real “difference makers” to others. Why? Because the truth is simple: If we want to make a difference in this world and in our communities and to our people, we can.

We must have the spirit of the pioneer. We must have the curiosity and ingenuity of the inventor. We must have the strength and resolve of the farmer. We must have the same willingness to fail and continue to try again and again of a great scientist. We must have the initiative and drive of the world-class athlete. Most importantly we must individually and collectively have passion for and pride in what we do. We must love the automobile business, the people we lead and the customers we serve.

Yes, the times are tough, but we are tougher. It is in our moments of decision that our destiny is shaped. What decisions will you make? Do you have the courage to reinvent your business model because you need to? This era is a brave new frontier that is begging for a brave new approach. Bob and Betty are gone. They have been replaced by a generation of socially aware, Internet savvy, discerning, demanding, highly educated consumers. What will you do? How will you do it? When will you get started?

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

the #1 sales-improvement magazine for the automotive professional

09

“Every great

leader attends to all four dimensions of the

whole personif she hopes to truly lead them — and to leverage their great capacities.”

www.autosuccessonline.com

10

SeanStapleton

SELLING OUT OFA RECESSION

marketing

solu

tion

New car sales trends are lower than industry

expectations for months now and consumer confi dence continues to be very low, but dealers across the country are holding their own by committing a larger share of their marketing budgets to fi xed operations. This re-allocation of marketing dollars is critical because of fewer new car sales. Independent dealers and independent repair centers have had to become more aggressive in the market place, which puts more pressure on dealers to focus on fi xed operations. Remember: Your best customer is the independent repair center’s No. 1 target.

In the past, dealers had the luxury of focusing on short-term results with their advertising and marketing dollars. We are now experiencing uncharted economic conditions that require a focus on the long-term cost of losing a current customer, and the high costs of acquiring new customers. If it takes $10 to recruit a new customer, it should only take $1, spent correctly, to keep an existing customer. If you are not sustaining the average new car revenue you did 12 to 18 months ago, look at different areas of your dealership and different ways to make up this gap. Most dealerships don’t have to look too far to fi nd untapped incremental revenue opportunities. One critical area of opportunity that typically gets overlooked is customer retention. Customer retention has always been important, but the recession has compounded the signifi cance of retaining your current customers. Statistics show the average customer retention with customers that have conducted a transaction with your dealership in the past 12 months is greater than 60 percent. Dealerships that aren’t attaining customer retention of 60 percent or better can signifi cantly impact their bottom line by improving this percentage by as little as one percent.

So how do you sell out of a recession? First and foremost, it doesn’t make a lot of sense to quit spending marketing dollars all together. In fact, with OEM issues impacting Tier 1 advertising budgets, there is more pressure on individual dealers to bridge the gap. Instead of drastically cutting your marketing dollars, refi ne what you do with those budgets and re-allocate them to other revenue-producing opportunities in your dealership.

Devote more attention to targeting and a higher level of effort in developing relevant messages to your targeted customer. For

example, studies show that 70 percent of customers stop servicing their vehicle at the dealership they purchased from after the warranty runs out. Targeting past customers who have an expiring warranty with a relevant message is a huge revenue opportunity for the average dealership. However, you must approach this opportunity with a “help me, not hunt me” message and communicate that your offer has tremendous benefi t for them.

Selling out of a recession requires getting a better handle on the customer lifecycle. The average fi rst-year customer represents less revenue-producing potential than the customer in their third year of ownership. Do you know where each and every customer in your DMS is at in their lifecycle? The following is a sample checklist to determine how well you know your customers. Which of your customers:

• have a warranty expiring in the next 3 months?

• purchased a warranty at the time of purchase?

• are repeat sales customers?• have a lease expiring in 3 months?• buy a new vehicle every two years, three

years, etc.?• referred a new sales customer to you that

purchased a new vehicle?• are due for a major service?• are repeat service customers?• have transitioned into your service

department following the purchase of their vehicle?

If you don’t have the answers to those questions readily available in a format that is easy to understand, utilize and track, it will be extremely challenging to tap into those huge revenue-producing opportunities. It makes good business sense to run a diagnostic on your DMS and turn it into an intelligent resource that enables you to make effective daily marketing decisions.

Want to make a huge impact on your revenue? A Deloittle and Touche automotive study showed that a fi ve percent increase in customer loyalty in the service department can mean a 25 percent increase in revenue for the entire dealership. Develop a customer loyalty program for your dealership — 80 percent of customers who participate in a rewards/loyalty program say their membership impacts their purchasing decisions. Loyal customers drive higher profi ts, are more likely to refer a friend or family and are more likely to purchase more

vehicles from your dealership. A loyalty program is a tremendous resource for:

Data Collection — A loyalty program is a great way to capture an e-mail address for regular, permission-based marketing. Building A Brand — A loyalty program is your way to differentiate your dealership from the competition for new customers, and the competition from independents for your current customers. Increased Customer Communication — A loyalty program keeps your customer engaged and willing to accept your communication methods. Maintaining Profi t Margins — A customer loyalty program helps you get away from discounting for a better bottom line. Understanding your customers spending habits — A loyalty program can even help you dictate your customers spending because you are tracking when and what they spend their money on.

A customer rewards/loyalty program must be done right. Make sure it always adds and builds value. It has to be easy to use, not only for the customer, but for your entire staff.

Also, a quality customer reward/loyalty program is backed by a fully adopted cultural change in the dealership. You can’t just talk about being different; you have to be different. You have to be willing to invest time, money and change to develop long-term customers. Long-term customers are the most profi table customers and that is the best formula for selling out of a recession.

If this information sounds overwhelming, it really isn’t. You may need some expert help, but in the long run, selling out of a recession is a simple process of adjustment, not an overhaul. You can’t change the economy, but you can change your approach to the way you look at your business and do more than just survive. The adjustments mentioned are things that will help your dealership prosper in a down economy and thrive in a good economy. Don’t just to survive, make the necessary changes to thrive today and in the future.

For a customized analysis of your DMS, please contact me for further details.

Sean Stapleton is the executive vice president of business development for Visible Customer. He can be contacted at 866.406.6337, or by e-mail atsstapleton@autosuccessonline.com.

featuresolution

12

13

A Northwest import dealer told me today he had just re-signed with AutoTrader.com after giving them the boot earlier in the year.

He had suspended his contract after concluding that he just wasn’t receiving a suffi cient return on his investment to justify the expense.

But he decided to renew his contract after acknowledging that, in fact, he bore much of the responsibility for the site’s under-performance — low quality photos, rote-like vehicle descriptions lacking value-focused comments, and inconsistent pricing.

This dealer’s lack of attention to his online merchandising fundamentals is all too common at dealerships across the country. While many fully understand how to properly position, polish and present used vehicles on their store’s physical front line, they fall well short of applying sound retailing principles to their online inventories. In fact, many do not even know — let alone use — the basic metrics vendors provide to identify and fi x online merchandising missteps.

Simply stated, far too many online inventories are just fl at-out eyesores. It’s no wonder prospective online buyers simply scroll on past and buy elsewhere.

A Dose of RealityFrom my observations and work with dealers and used vehicle managers across the country, I have come to realize that there are two primary reasons why many dealerships are missing the mark with their online merchandising.

Reason 1: Dealers and used vehicle managers lack the timeand/or the knowledge to follow the painstaking, detail-intensive best practices that yield the results that attract today’s online used vehicle shoppers.

I would put the Northwest import dealer in this category. He understood the importance of the Internet, but fell short on crafting the necessary compelling online presentation for his vehicles. In his case, it happens to be largely a question of time because he has near-sole responsibility for his entire online inventory.

“Many dealers think if they’re on the Internet, they’re in the game,” said Howard Polirer, director of industry relations for AutoTrader.com. “Unfortunately, that’s just not true.”

AutoTrader.com, Cars.com and other third-party sites know what it takes to be in the game. The “must haves” include quality photos, compelling descriptions and a transparent, direct purchasing process

— these are the essential ingredients for online merchandising success. Video clips (60 to 90 seconds) are becoming increasingly popular as well.

And, as my Northwest import dealer friend acknowledges, “The beauty of the Internet is that you can measure everything in order to know what is working and what isn’t.”

Reason 2: Dealers and used vehicle managers fail to “inspect what they expect” from their online merchandising efforts.

This problem results from a lack of awareness and understanding of the key metrics that really matter. It’s not enough for used vehicle managers, even dealers, to say “I need to ask my Internet guy” when asked about page views and detailed page views and why they are important. Dealers need to understand these for themselves.

The Northwest import dealer does understand these metrics. He knows his monthly detailed page views run about 1,800. He also knows — or at least suspects — why that number goes up or down and what it means for sales.

But this is way more knowledge than exists at most dealerships. So the question becomes what should dealers and used vehicle managers do to bone up on these fundamentals?

First, they should start by taking the time to really understand the metrics that third-party vendors already deliver. Next, they need to ask for help assessing the metrics in order to understand how they apply to online merchandising. The vendors have representatives that are trained to be able to help with the “deeper-dive” needed to pinpoint defi ciencies (e.g., missing photos, prices or descriptions) that may be costing you lost leads and sales.

vAuto’s recently released Live Market Merchandising tool is an outstanding resource for more effective audit and management of online used inventory. The tool provides a comprehensive “virtual” view of the dealer’s online used vehicle inventory and merchandising across all dealer-owned and third-party sites at both the site and individual vehicle level.

Successful dealers are using this to identify and correct online merchandising shortcomings—missing units, inaccurate odometer readings, inconsistent or non-existent pricing, incorrect equipment/trim packages, and incomplete or missing photos and descriptions. The tool allows you to “walk” your online inventory with the same circumspect eye you take to your lot every day.

Joe Pistell, marketing director for UsedCarKing.com, recently used the tool to investigate a 20 percent drop in leads coming fromCars.com. After comparing the status of his online inventory across

all of his third-party sites, Pistell found the culprit — about 185 vehicles lacking photos and inconsistently priced across sites.

“The merchandising tool found a signifi cant problem (which I didn’t know existed),” Pistell said. “Then, after it uncovered this problem, the tool saved me hours of time fi xing it. That’s ROI that I can understand.”

OK. Enough selling. The broader point remains. You ultimately can and should control the effectiveness of your online used vehicle merchandising.

Successful Online Merchandising GoesBeyond Page ViewsEffective online used vehicle merchandising is far more complicated and nuanced than good pictures and descriptions for every vehicle in your inventory.

When I talk with dealers and used vehicle managers who have found online success, our conversations don’t linger on such specifi cs. We also focus on broader Internet retailing trends and what they mean for our business.

Here are a few salient “take-aways” to help with online used vehicle merchandising:

Competitive Pricing is Critical. “I can make 15 price changes and sell those vehicles tomorrow,” said Craig Belowski, general sales manager at Acton Toyota of Littleton, MA. “The question is whether I want to do that or not.”

Belowski’s comment carries a far deeper understanding of today’s business than his “mark-down” oriented quote might initially suggest. What he’s really saying is that for every vehicle in his inventory, he knows how to position it “price-wise” in relation to his competition, while simultaneously being mindful of his potential online buyers and profi t expectations. Belowski’s knowledge of prevailing market prices means he can move metal when he needs to, and only beat the competition when he must. That’s powerful insight for any retailer. His comment is also a nod to the vast majority of potential online shoppers — they all know a thing or two about a good price in today’s Internet marketplace.

Transparency. “It’s not uncommon for my customers to drive in from three hours away and buy when they get here,” said dealer Jon Whitman of Whitman Ford in Temperance, MI, who’s tripled his monthly used vehicle volume after getting smart about online used vehicle merchandising.

Whitman said it’s essential that online customers view him as the best source for used vehicles. So, his online merchandising includes eye-catching photos, competitive prices, access to title histories, warranty information, credit applications and other features — all intended to create a clean, hassle-free experience.

“Today’s customers are more likely to do business with the dealer who’s transparent online rather than the guy who makes it diffi cult,” he said.

Don’t count on your brand for customers. Today’s online customers are loyal fi rst and foremost to themselves. They want the vehicle that best fi ts their price and lifestyle. They’re less likely to stick to a single brand or a local dealer when they fi nd the vehicle that matches what they want and need.

The implication of this reality is profound: At his Finish Line Ford dealership in Peoria, IL, dealer Bill Pearson’s inventory runs roughly 50/50 between franchise and off-brand vehicles. It’s a necessity to maintain his 300-unit monthly volumes and it refl ects the fact that no single brand has the used vehicle market cornered. This new reality for stocking used vehicle inventories also means some fun, profi table surprises.

“We’ll try anything new if the market will support it,” Pearson says. “My Ford store is becoming a go-to source for Mercedes and other luxury vehicles.”

Your “market” knows no bounds. Pearson estimates about half of his customers travel from more than 75 miles away to buy from his store. He also views large, online retailers as many as 1,000 miles away as his chief competition. “There’s no doubt the Internet has dramatically expanded the playing fi eld,” he says.

The Internet is a gift that keeps giving. For all the challenges the Internet creates for dealers and used vehicle managers, none of the dealers I speak to regularly want to go back to the old way of business.

These dealers will share knowing smiles: The Internet gives them a steady stream of customers who cost less to acquire than from any other merchandising medium. They’ve turned this power to their advantage and they are enjoying the rewards.

My Northwest import dealer friend wants a piece of all this action. Even though he’s not through wrestling with low-quality pictures and page views, he’s already hatched a broader online merchandising strategy. And, with his clearer understanding of how to look a whole lot better online, he’s taking the bull by the horns.

Dale Pollak is an author and the founder of vAuto. He can be contacted at 866.927.3966, or by e-mail atdpollak@autosuccessonline.com.

DalePollak

www.autosuccessonline.com

14

An Interview with JoeHealy

LEAPING TOWARDSTHE TOP:How a Houston Internet Department Jumped 45 Spots in National Rankings

leadership

solu

tion

Although he didn’t start his career in the

automotive fi eld, Joe Healy has led his team to make a mark in the industry.

Healy, Internet director of Houston-based Lone Star Chevrolet, and his Internet sales team recently rocketed up 45 spots, from 99 to 54 in the Ward’s Dealer Business’s seventh annual e-Dealer Top 100 list. The list, available at wardsdealer.com/reports/2008/edealer100, ranks dealerships across the country based on sales related to the Internet. The dealership appeared on the list for the fi rst time in 2007, and is shooting for a top-50 showing in 2009, a goal Healy believes is well within his team’s grasp.

AutoSuccess sat down with Healy and talked about his dealership, his role as leader of his Internet department, and how his team achieved this success.

AS: Describe your department.JH: I have fi ve guys in new car sales, four guys in used, and one guy we call the marketing rep, who helps keep the Web site up to date with pictures, seller’s notes and other items. Right now, we’re responsible for about 37 percent of the store volume; we do about 135 a month in sales. We’re averaging right about 14 percent in closings.

AS: How do you see your role as director?JH: I spend the bulk of my time coaching and training our guys — everything from phone skills to how to write a good template to basically taking care of business.

AS: What are the Ward eDealer rankings based on?JH: For us, they come right out of our ADP system, so it’s not pie in the sky. I looked at the numbers last year, and I think some of them obviously just put in all their sales. Ours, we just put Internet sales — those that truly came from the Internet — so it’s direct. As for the rankings, we moved from 99 in the nation to 54, and we actually showed a sales increase in a down market, so our numbers

actually went up this year. I don’t think there’s any dealer in the entire nation that showed the increase that we did, so we’re blessed to have those results.

AS: You moved up 45 spots in one year, and weren’t even on the list the year before that. What do you credit as the major factors in your success?JH: We defi nitely did a few things differently. One of the initiatives we had was to put video cameras on each of our guys desks, and now they do a lot of communications via video e-mail. Most of our competitors don’t have that advantage, and we’ve taken it a step further where now all our salespeople have Flip video cameras, where they can do a walkaround of a car and e-mail it to prospective buyers. That’s especially useful in used car sales.

We use the video to strengthen customer relations, as well. When someone buys a new car, we immediately send them a video, saying “Hey, you were really a lot of fun to work with. We hope you enjoy that new Silverado. If you have any questions, I’m here for you before, during and after the sale, and, by the way, you’re going to be getting a survey from General Motors, and that’s my personal report card. If you have ANYTHING you’re not satisfi ed with, here’s my cell phone number, you can call me 24/7.” And those videos are viewed six or seven times, because people get them when they are the most excited they will ever be about their new car, and inevitably we know they show them to other people, because the views are six or seven within fi ve hours.

AS: How did your team react to the jump in the rankings?JH: They’re proud. I told them to start using the Ward’s number, that we’re in the top 54 and our goal is to get in the top 50. We’re not that far behind. If we can just add another 15-20 units a month, we’ll go from 54 to about 40. We know the market is challenging right now, but we’re up. We’re having an absolutely fantastic April and we’re crushing

last year’s numbers. We’re going to be up almost 22 percent at today’s pace, which is unheard of in today’s environment. I branded the words “Best Internet Team in Texas” for this department, and they’re very proud of that. I hear them say it to people.

AS: How do you keep people coming back to the dealership?JH: We do a good job of communicating with our customers, and we’re not interested in just the single sale. In fact, 40 percent of our business is repeat and referral, and we work really hard for that. Part of it is that we do work with integrity and don’t rip people off. I’m proud to work here. If I go out to dinner after work, I never take my name badge off. When someone talks to me about the dealership, it’s always positive. You never hear bad stuff. It’s a team effort, and it’s that way throughout. We deal with success principles that make us different from other dealers.

AS: What advice would you give to someone in your position who wants to see the kind of success you’ve achieved?JH: I hate when I meet someone and they say “Take it easy,” or “Don’t work too hard.” I think today that’s bad advice. I spend probably 65 hours at the dealership, go home, have dinner with my family, then go upstairs and go back to work. I’m always researching. You don’t move up 45 spaces without hard work. I have a driving passion and burning desire to be the No. 1 Chevy dealer in the nation. It’s not just because of what I’ve done, but you lead by example. When I came here a little over a year and a half ago, we weren’t even in the top 15. Now we’re No. 3, so we’re making strides. It’s defi nitely a team effort.

Joe Healy is the Internet director of Lone Star Chevrolet. He can be contacted at 866.901.2082, or by e-mail atjhealy@autosuccessonline.com.

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www.autosuccessonline.com

16

the #1 sales-improvement magazine for the automotive professional

17

MichaelThomas

ROIIs the Lemon Worth the Squeeze?

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When it comes right down to it, it’s all

about the Return on Investment, or ROI. How much do you have invested in your operation? How much is that creating in return? How much net are you able to realize? What amount of effort, time, money and emotional/mental stress and strain is it taking to keep the needle moving? After you take all of it into consideration, is the lemon worth the squeeze?

Let’s hit the high spots of the retail operation. You have income streams that you have created through various lines of inventory, as well as pre-owned; and then there is the fi xed operation side of things with income streams in parts, service and, for some, body shop. All of these are in motion, and hopefully they are moving toward profi t or more profi t , a.k.a ROI. What if they are not? What if they are not producing what they need to, or what you want them to? Is it more energy? More advertising? Usually the reaction in tough times is to hit the lead generator button to get more people through the door. There are a vast number of factors that affect ROI. Let’s focus on a basic, like vehicle sales, as it relates to volume and gross.

The essence of sales is to effi ciently create volume and gross. When sales are threatened, the traditional response is to put more money toward lead generation. Today, we have the incredible lead generation machines, such as Internet applications, customer management systems and business development processes. “Old school” certainties, like repeat and referral business still exist, but many do not remember or effectively encourage these. The additional cash demand toward lead generation normally means greater costs per customer, or CPC. How much money were you spending fi ve years ago to bring customers through the door? How many were you bringing in then? How many did you convert to sales and, more importantly, how many did you deliver?

There it is. How many did you deliver? Was the lemon worth the squeeze? Is it worth the squeeze now? How much is each delivery costing you? What is your ROI? How can you improve your ROI without spending one more dollar in advertising/

lead generation? Focus on effi ciency of delivery, or effi ciency of conversion. What if you could invest 10 percent of the average cost of a new vehicle and create 100 percent ROI? What if that also could drastically reduce your fl oor plan costs for new vehicle inventory and in turn create more gross and more volume in your new sales at the same time? What if your advertising dollar could be extended to include every customer you currently reach and actually affect the market, make the sale, deliver the car? These are just a few ideas that we would like to entertain to increase your ROI. Would that lemon be worth the squeeze?

Let’s make this simple by walking through one deal. The average new car costs you approximately $25,000. Take that $25,000 and purchase 10 units each at $2,500, and create $2,500 per unit income all on a dealer-funded program. That is $25,000 in income, profi t. That is not 20 percent, or even 50 percent — that is 100 percent ROI. What else could you invest in today that would create 100 percent ROI?

Obviously, fi nding 10 units at $2,500 that would readily retail (be in mechanically strong enough condition) would be tough. That is not the issue; the issue is that reducing the average inventory costs to lower than even $7,000 increases your ROI exponentially, as well as your volume. Focusing on reducing your average cost of inventory under $10,000, or at least a large portion of your pre-owned inventory for higher volume and gross, is the new imperative.

By doing this you will also have seven, eight or maybe even 10 times the inventory and selection. The more inventory and selection that you have, the more people you can sell — volume. Now, that you have greater inventory selection, your advertising dollar spent to bring in those customers can be recycled! That CPC begins to shrink when you are able to convert customers to deliveries. This effectively lowers your CPC, and ultimately can dramatically reduce the monies spent on advertising/lead generation, as you realize more effi cient production.

It is critical to capture monies that would be spent in advertising/lead generation and use

dealer-funded programs, which will create immediate ROI and grow your market base. This increases your gain to greater than 100 percent ROI as you convert more customers off of the same dollar spent in lead generation.

There are approximately six times as many used cars sold every day in the United States as new, and that number is moving steadily upward. I know that there is a glut of “fi re sale” new car inventory hitting the market; we know how that works. It will affect the immediate market for six months or so, but will be short lived. Even with that, there will still be four to fi ve times as many used cars sold in the market than new. So, the demand is greater and, therefore the need awareness or potential for gross is much greater, in used versus new.

Take the Wolfe Organization, based in Kansas City, with multiple points in various cities. They pulled the ultimate coup by shutting down all of their Saturn locations in March and April 2009 and converting them to pre-owned car stores. They sent over $13 million in inventory back to GM before the silent bankruptcy became effective. They have done exactly what had to be done — removed the glass basement from the new car store, lowered average costs per vehicle, lowered fl oor plan demand, and adopted some sort of dealer-funded program to effi ciently convert customers to deliveries.

ROI in franchise dealers in the last year was down across the country, while dealer-funded programs did not suffer the same fate. There is a force pushing, driving and bullying the market toward dealer-funded programs and the ROI that is associated with them. To say that the market is going this way is an understatement. The ROI, which is what it is all about, is exponentially better. The properly structured dealer-funded program, with lower average cost of inventory and correctly managed, defi nitely makes the lemon worth the squeeze.

Michael Thomas is president of Prime Eagle. He can be contacted at866.895.5155, or by e-mail atmthomas@autosuccessonline.com.

Day in and day out, we all negotiate

something, whether at home with our spouses and children, or at the dealership with our co-workers and, of course, ultimately with our customers.

In each encounter, preparation is the key. Knowing what you want and need to say before you need to say it will be the difference between success and failure. After all, words are the choice jewels of a salesperson, so choose them wisely.

Let’s consider the following scenario. Some error has occurred at the dealership. Upon realizing this has happened, the three individuals involved are asked to come in and discuss what occurred. The supervising manager tells Jackie that she is “mistaken.” Charlie is informed that he is “wrong.” Meanwhile, Marty is told that he is “lying.”

Clearly the implications for the three words — mistaken, wrong and lying — are very different. When Jackie is told she is mistaken, the weight of the word is much lighter. The implications are minor at best. When Charlie is informed that he is wrong, you can feel the severity of the consequences escalating. And to tell Marty he is lying will surely illicit a very strong reaction.

The idea is to communicate clearly and in a non-threatening manner when negotiating with your customers. Your response must be sincere and authentic. Some of these strategies will require practice prior to

applying them “live” with your prospects.

There are eight words to help you stay on track when negotiating. The fi rst word to add to your negotiations vocabulary will be “High.” Example: “Mr. Customer, you are requesting $7,800 for your car. Boy, you sure seem high!” Then wait for a response.

No, not really. You don’t tell them they seem high, you tell them their number seems high.Next, when you are discussing either monthly payment or down payment, use this refl ex response. “You want a monthly payment of … or a down payment of …That number really seems low. Low. Low. Low.” By the way, it’s OK to say things more than once for emphasis. Remember this is a statement, not a question.

When negotiating, rather than asking, “How much?” it is always better to ask, “How close?” The follow-up response to the customer’s offer would then be, “It sounds like you are going to be a little short. How short do you think you are going to be?”

It is important to communicate with your customer in a way that helps them understand the need to improve their initial offer in order to be able to purchase this vehicle. There is no reason to antagonize them in the process. Use words that are neutral and do not attack them personally, only the numbers they are offering.

“Mr. Customer, let’s be fair. I’m sure my manager will work with us.” “Mrs. Customer, what fair and reasonable amount

KirkManzo

EIGHT WORDS TO HELP YOU NEGOTIATE MORE EFFECTIVELY

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were you thinking?”

Once your customer has made an offer, and you have reacted initially with “that number seems high/low” as appropriate, then you must bump their initial offer. Why? Because people do not appreciate what they are given, but rather what they earn. You must make them work for each concession to fully appreciate them. This makes for a happier buyer and higher CSI scores. Remember — value is merely a perception.

So when working to bump up monthly payments and down payments, apply the following words: “Mr. Customer, could you be a little fl exible?” or “Mrs. Customer, if you needed to, could you stretch?”

All these responses can help improve your ability to handle the next negotiation, whether at home or work.

In summary, the easiest way to remember these eight words is to put them in pairs. High and Low. Close and Short. Fair and Reasonable. Flexible and Stretch. So the next time you get ready to leave the sales manager’s desk to return and work with your customer, repeat the eight words out loud so they will be fresh in your mind and on the tip of your tongue. Think LIFO —last in, fi rst out.

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

www.autosuccessonline.com

18

It may feel like the auto industry is

changing, and it is. However, some things never change. The skills that successful salespeople need today are nearly the same as they were 20 years ago. If everyone in your sales staff can’t answer “yes” on all 10 questions below, your dealership is in trouble, just like it would have been 20 years ago. Ask each of your staff members these simple questions....

1. Do you want to be average or above average?This may seem like a no-brainer. However, you would be surprised at the number of folks that are satisfi ed with mediocrity. Look at it this way: If you’re not above average, you’re not helping the store succeed. Some help, some hurt; if you are hurting your dealer, fi nd a new gig.

2. Are you ambitious? Lazydoesn’t work.Claiming to be too busy to meet someone on the lot when sales are down 50 percent everywhere is a total joke. You do have the time, and you don’t have an excuse. Go sell something already!

3. Do you utilize your specialized sales skills?You have spent hours and hours in the “training closet” watching videos, reading books, fl ipping through product knowledge materials and learning how to sell like a professional. If you are not implementing these valuable skills, you’re not selling. Understand objections (and why they are good), question customers until you know what’s best for them, and then help them solve their problems.

4. Do you set and track your goals?If you don’t know what you are trying to accomplish, how will you know if you did? Trust me — you probably didn’t,

if you don’t set and track your goals.

If I were your boss, I would ask to see your written goals and results before I wrote your paycheck.

5. Are you self-supportive?How many salespeople have you worked with who are needy and high-maintenance? Zero bars on the cell-phone, rain without a umbrella, and a Red Sox loss are annoying. A co-worker that can’t take care of themselves, unlock cars or blow-up balloons is downright frustrating. Solve your own problems and don’t create new ones for others.

6. Do you know how to use a computer, basically?Typing is not a specialized skill (unless dialing a telephone is, too). E-mailing is not a specialized skill (unless licking stamps is, too). Figure out how to use the darn thing in the most basic form and stop worrying about becoming a geek like me; nerds are sometimes the best salespeople. Yes, I’m laughing.

7. Do you get along with everyoneat work?If you answered no to No. 5, you already failed the quiz and shouldn’t be thinking about this anyway. You don’t have to be buddies with everyone at work, but you do have to learn to get along with everyone in your organization. Don’t get me wrong, there will be people you genuinely don’t like; we all know the No.5’s. But, this doesn’t mean you shouldn’t work very hard at becoming easy to get along with yourself.

8. Do you smile, always?You should be smiling at work, not because you’re having a great day or anything, but because it’s your job. Your dealer doesn’t pay you to frustrate customers, and nothing is more frustrating for a customer than to see a disgruntled employee. Fake it if you have to, but smile at work; good things happen when you do.

9. Do you know what your dealer expects?Understanding what your dealer expects of you is no simple task. But, fi guring it out is the only way to be sure you are doing well for the dealer. Reminder: You are an employee — your job is to do what your dealer expects. If you perform like a professional, he’ll write paychecks with professional numbers on them. If you perform like an amateur, he’ll write numbers with teenager numbers on them. If you’re making minimum wage in the car business (lots do), you’re either way too far along in this quiz, you’re lying, or you’re wasting your time.

10. Do you know more about your products than your customers?If not, why do you expect them to ask you for help? For sure, customers have access to loads of information that they only dreamed of a few years ago. So do you. If you are not willing to take the time to learn the ins-and-outs of each and every product you sell (there are not that many, really), you may as well put “order taker” on your business card (order takers don’t get paid very well in most industries).

OK, say every one of your salespeople took the quiz, and everyone failed. You may be asking yourself, “None of my gang can score a perfect 10 on these questions — you’re kidding me, right?” No, I’m not kidding. I’m a fi rm believer that a dealer is better off with no help rather than horrible help. If your salespeople can’t score a 10 for 10 on this simple quiz, your customers are better off without them and so are you. The ultimate question is this: Now that you know who does not have the basic skills required by all salespeople to succeed, what are you going to do about it?

David Book is a technology professional and partner at MyGoalTracking. He can be contacted at 866.901.2082, or by e-mail at dbook@autosuccessonline.com.

DavidBooksale

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SALESPERSON QUIZ:How Does Your Staff Measure Up?

www.autosuccessonline.com

22

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WEB MERCHANDISING:Let’s Get Emotional

Every day, thousands upon thousands of

consumers shop online for a car that might be sitting on your lot, but is never seen because you still haven’t created an ad for that vehicle to distribute to the Web. Sure, you may have sent some photos and vehicle information, but if all you are doing is uploading information about your inventory to your Web site and online classifi eds, you have to hope that you have the exact vehicle someone wants, when they are ready to buy. However, when you create emotionally charged ads for each individual vehicle, you motivate online consumers to want the cars that you have.

How do you create emotional ads for the Internet? First, if you are responsible for creating the ads, you should know your inventory better than anyone else. You should personally walk the lot and touch every car, learning what is unique about each car so you have the information necessary to write a truly emotional advertisement. To you, a vehicle in your inventory may be just another car; however, this is a very emotional purchase for the consumer, and to the consumer, every car is different. Learning to maximize that emotion, the same way you do on the lot, will greatly enhance your conversion rate and generate signifi cantly higher sales. It is impossible for you to write the emotional ads necessary for your dealership to have the best vehicle ads on the Internet if you don’t know the details of every car.

Next, let’s prioritize the elements and goals needed to be successful:

1. Create an emotional ad for every vehicle on your lot:• Photos — The biggest mistake dealers make is having the same nine to 12 photos that every other dealer in town has, and that are shown on every other car in your market. Every vehicle is not the same and it is the

unique features of a car that builds value, justifi es price, creates urgency and sells the car. If you would “sell” a feature of a car to a consumer on the lot, photograph it and make it a part of your online ad.

• Vehicle Description — Again, highlight what is unique about each car. If you took a photo of it, talk about it. Don’t just tell the consumer about the car; sell it to them.

- Describe “their” car, not “the” car.- Stress the features that fi t the consumer

based on the type of vehicle: Minivan: Family, Safety, Room, Convenience, etc.Sports Car: Performance, Reliability, etc. Sedan: Comfort, Reliability, Practical, Fuel Mileage, etc. Luxury: Comfort, Status, Ego, Performance, etc.

Pickup: Power, Performance, Toughness, etc.

- Create mental ownership: Remember, emotion sells! What would you say to the consumer if you were standing beside them trying to sell them that same vehicle on the lot? Write it down and make it a part of your online ad.

- Create urgency: Use “Was - Is” pricing (“Just Arrived - Won’t Last Long,” “Manager’s Special,” etc.) The same phrases “call to action” that you use on the lot.

- Create trust & reliability: Use terms like “Low Miles,” “One Owner,” “Non-Smoker,” “Certifi ed,” “Warranty Information,” etc.

• Price — In the consumer’s mind, “no price = highest price”; however, being the “highest price” isn’t bad if you have created value.

- Utilize tools that help you compare your prices to similar vehicles on the Internet and in your market.

- Create urgency with was/is and special pricing!

2. Create this ad quickly, with “the day it hits the lot” as your minimum goal. Besides the fact that you pay your Web site provider and online classifi eds a lot of money, thousands upon thousands of consumers are visiting the Internet in your market every day looking for vehicles to purchase. Every day that you have a car sitting on your lot without a good emotional ad for it on the Internet cost you a lot of money. Fact: more consumers could see your online ad for one of your vehicles in just one day than could see the car on your lot in an entire week/

3. Distribute the emotional ad to all online media as quickly as possible.Now that you are creating emotional ads, getting those ads distributed to each of your marketing partners can be time consuming. Utilize a centralized inventory system so that you only do this work one time for each car. Remember, each marketing partner may have different times in which they update their fi les, and some may even offer real-time updates. Find an inventory management partner that can get your ads updated multiple times a day if possible. Remember, the closer you can get to real time, the better.

The days of the Internet manager are over; now is the day of the Internet marketing manager. The skills needed in the Internet department have entered a new era and the dealerships recognizing these facts will be the clear winners in conversion ratios and sales volume.

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

www.autosuccessonline.com

24

the #1 sales-improvement magazine for the automotive professional

25

DougBurkert

MAXIMIZE MARKETING DOLLARSLocal Charity Golf Tournaments Reach Important Target Markets

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With any business in this market, you

must fi nd ways to maximize your return on marketing dollars. In the auto industry, each dealership is competing with every other dealer for the same customers: people who still have disposable income, individuals who are buying a new car every two to three years or those who have a new driver in house. Successful dealers need to fi nd a new and more effi cient way of marketing to those prospective clients. With fl uctuating inventories, limited marketing dollars and time, you want to be sure that you are getting your name and product in front of willing and able decision makers when it comes to buying a new vehicle. You need to get your vehicles in front of the right people. How do you do this? Simple — meet buyers at the golf course!

By sponsoring local charity golf tournaments, you directly reach an important target market. There are plenty of benefi ts: You receive free publicity from the event organizers to potential buyers during their player solicitation, whether the invitation is made by mail, newspaper, radio or television news reports made prior to the actual event. During the event, you get additional mileage in your advertising by placing a little “showroom” at the golf course and letting golfers dream about winning your prize. After the event, you might receive the players’ list for a follow-up or by having the tournament distribute a fl yer in their goodie bag. Best of all, you can get this for an unbelievably low cost per impression. A great feature of this type of program is that you get to select the advertisement that best

fi ts the tournament. With some tournaments, you may benefi t the most by placing a luxury automobile, while others you may prefer trucks or maybe a hot hybrid. To reduce costs further, you could offer a lease or you may offer the prize as a down payment on a vehicle the customer selects from your inventory. You can fi t the prize and the cost to the audience.

What are other additional opportunities can dealers do to get the best return for their marketing efforts, and drive more people to their showrooms? First, sponsor more then one tournament a year; we see several dealerships sponsor more than 50 tournaments and many more than 30 a year. They also sponsor other golf contests like shootouts, putting contests or “closest to the pin” competitions.

On the day of the tournament or contest, they:

• Bring the vehicle out and place it by the hole for the contest making sure that it is clean and has a full tank of gas.

• Bring out business cards and literature to give to the participants and gallery.

• Have a salesperson by the car during the tournament to talk about the vehicle; the dealership and give test-drives in the parking lot.

• Collect names and numbers to go back to the dealership to use as hot leads.

• Work the registration desk to also have access to the names and numbers of the participants.

• Play in the tournament and meet the golfers.

• Give out free oil change and/or discount

service coupons to the participants from your dealership

• And, most importantly, they team up with a prize insurance company who will pay for the vehicle if the ball goes into the hole.

Making it WorkAllen Cadillac GMC, a 61-year-old family owned Dealership in Laguna Niguel, California has been doing all this and more for more than 10 years. They sponsor more than 40 tournaments a year. Scott Allen, co-owner with his brother Mitch, said, “We’re in an area where there are golf tournaments 12 months a year.” By doing this, it plays right into Allen’s business model, which includes a heavy dose of community involvement. Allen adds a special twist to participating in the tournaments by going a step further with a former salesperson whose interest and expertise are in community outreach. “He comes down to the dealership before each tournament, gets a car, takes it to the event and helps out at the desk where everyone checks in,” Allen explains. “Then he’ll go to the hole during the tournament and talk to everybody, telling them their second best drive of the day will be when they drive the car home.” He answers questions, engages potential buyers, and boosts interest in the dealership and its products and services. The goodwill generated is tremendous and breaks down barriers to going to the lot.

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

TomBear

BEWARE OFFALSE PROFITS

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In this latest series of 20 Group meetings,

there have been discussions on cost cutting, rightsizing for the current volume, inventory control and other tough decisions that owners/operators are having to make in today’s environment. These conversations are timely and lively discussions.

One of the most interesting — and probably the most controversial — conversations has been regarding the recording of fl oor plan and advertising credits. This topic, for the most part, consisted of “We have done it the way the factory wanted us to do it.”

The factory has trained us well, and they even penalize the controllers/offi ce managers if the credits are not shown properly on the fi nancial statement.

When we had better control of our new inventory, and the days supply was at 75 to 90 or less, the way we recorded our fl oor plan and advertising credits did not really matter. We had a fairly consistent inventory level, and credits were at approximately the same level from month-to-month. Inventory in and inventory sold were about the same. We had consistency.

Now, jump to today’s market. Inventories are the highest we have seen in years. We have stopped taking, or reduced the number of vehicles we are receiving monthly on a consensus/allocation. Our new vehicles are aging and our inventories are growing. Compound this with the fact that the fl oor plan interest being paid out monthly is increasing. Then compound this with the fact that we do not have the credits to offset the additional interest.

Therefore, the topic of “Beware of False Profi ts.”

Take a look at the number of new vehicles you currently have in your inventory. You have taken the fl oor plan credits, advertising credits, internal profi ts on accessories (pro packs, pin stripes, paint sealing, clean up, nitrogen, bed liners, etc.) and any other adds you put on your new vehicle inventory.

Your year-to-date bottom line profi t includes all the above and more. If you have hard packs on your new vehicles, some of this hard pack has probably landed on your bottom line.

While I have always strongly supported internal rates for labor, parts being at full retail rate, and for reasonable hard packs, it may be time to relook at all of these “false profi ts.”

Is it time to take the credits for fl oor plan and/or advertising when you sell the vehicle rather than when you book the vehicle into inventory?

Is it time to look at the accessories, packs and other items you load the new vehicle inventories with?

I am familiar with a dealer group that, in the last couple of years, decided to not record the fl oor plan credits until the unit was sold. Was it painful at fi rst? Absolutely, but it also took away two of the general manager’s reasons for ordering too much inventory — fl oor plan credits as well as advertising credits.

866-964-6397 imnLoyaltyDriver.com

YOU HAVE CUSTOMERSAND PROSPECTS.

WE HELP YOU GET A LOT MORE MILEAGE

OUT OF THEM.

Let’s roll.

One of our clients has talked to his CPA fi rm and, it is my understanding, he is going to reverse all credits on the fi nal statement for 2008, and start taking all of the credits as the units are retailed. Another client has been taking the credits at the time of sale for a number of years.

So this may not be new to the industry, but the dealers who are currently taking the credits up front as the factory has trained us, far out-number those taking the credits at the time of sale for a number of years.

Look at your options. Check with your CPA. There may be a number of advantages for changing the way you are taking your “false profi ts.”

Tom Bear is the executive conference moderator for NCM Associates. He can be contacted at 866.904.4458, or by e-mail at tbear@autosuccessonline.com.

STILL STANDING: WHAT DO YOU DO NOW?

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The Red Flags Rule is here and U.S.

automotive dealers are mandated to comply with the new requirements effective August 1, 2009. The good news is that many of the key solution providers are up to speed on the new regulations, such as compliance software companies, consumer data providers and other industry vendors. But the real question is, are you?

The Bottom LineIn a nutshell — as defi ned by the new regulations — the Red Flags Rule requires fi nancial institutions or creditors (yes, that includes automotive dealers) to develop and implement a written Identity Theft Prevention Program.

I know what you’re thinking — there’s yet another compliance regulation on your radar. But when you consider that the number of identity fraud victims has increased from 8.1 million Americans in 2007 to nearly 10 million in 2008, the Red Flags Rule is a good thing — both for your customers and for your dealership. So aside from our personal feelings about the new requirements, it’s time to embrace the facts and implement a compliance program.

Where to BeginDepending on the relative sophistication of your current fraud and identity theft prevention processes, complying with the Red Flags Rule may or may not be a big undertaking. The Rule is somewhat fl exible and allows you to build on existing requirements, including the PATRIOT Act, so it may be just a matter of coordinating and combining policies and procedures that are already in place. Regardless of where you’re starting from, the compliance approach is the same for everyone. Here’s what you need to do:

1. Organize a Red Flags team2. Learn and fully understand the Red

Flags Rule3. Conduct a risk assessment of current

accounts

Key Elements of an Identity Theft Prevention ProgramIt’s important to understand that there is no specifi c list of Red Flags — defi ned as the pattern, practice or specifi c activity that indicates possible existence of identity theft — which every dealer must address. This means that you are expected to design and implement an individually tailored Identity Theft Prevention Program based on your dealership’s unique profi le of risk.

Your written program must contain reasonable policies and procedures to: Part 1: Identify Red Flags: Your program must consider company-specifi c risk factors — those used to identify Red Flags that are relevant to your dealership.Part 2: Detect Red Flags: Your program must detect relevant Red Flags in the ordinary course of operations. Part 3: Respond to Red Flags: Once identifi ed, Red Flags must be evaluated and resolved. Part 4: Update the Red Flag program: Your program must contain a detailed process for periodic updating to refl ect changes in risk.

Your Red Flag CommitteeOnce you have your Identity Theft Prevention Program outlined, you’re required to obtain approval of the initial written program from either your board of directors, an appropriate committee thereof, or a designated employee at the level of senior management. The committee oversees implementation, reviews compliance reports and approves modifi cations to the Program as necessary to address changing risks.

A report should be submitted to the committee at least annually, which should address program material matters and evaluate the following:

• The effectiveness of the policies and procedures in addressing the risk of identity theft in connection with new and existing covered accounts

• Service provider arrangements• Signifi cant incidents involving identity

theft and management’s response• Recommendations for material changes

to the program

Lastly, an Identity Theft Prevention Program is only as good as the people who implement it. The Rule requires that you train your staff to effectively implement the program and exercise appropriate and effective oversight.

Setting Up Your Program —You’re Not AloneIt seems like a lot, I know. But fortunately there are many reputable vendors out there who have been working hard to develop turn-key product solutions to help you satisfy your obligations under the Red Flags Rule – quickly and easily.

Companies have combined several powerful consumer information solutions and reporting tools to help automotive dealers get on board with Red Flags compliance.

They include:Identity Verifi cation: Helps dealers quickly confi rm their customer’s identity with a simple three-digit numeric score along with easy-to-read explanations for any ID inconsistencies.OFAC Screening: Dealers can automatically screen buyers against the OFAC list of terrorists, drug traffi ckers and money launderers prior to any sale.Credit Reporting Services: Offers dealers a convenient prequalifi cation credit tool that provides FACT Act fraud alerts. Reporting Tools: Dealers access a monthly report that summarizes potential fraud activity and related trends over a period of time for their dealership.Online Compliance Applications: Automated process solutions to help you set up and monitor your Identity Theft Prevention Program.

Patrick Colbert is the senior vice president of First Advantage CREDCO’s Automotive and Specialty Markets Division. He can be contacted at 866.924.9971, or by e-mail at pcolbert@autosuccessonline.com.

OK, you are one of the lucky Chrysler or

GM dealers who did not get a “Dear John” letter. You have a dealership and inventory, but in many consumers’ minds you are still damaged goods. The fi rst actions you need to take involve taking steps to show your community and market that you are alive and well, and looking forward to getting back to focusing on selling, servicing and repairing vehicles.

Creating the hype is important but newspaper and TV ads are much too expensive and not drawing in the volume of customers you need to justify the cost. If you are in a market that has been hit hard by the mortgage crisis, or there’s a local company that had some layoffs, the fi rst order of business is to reinforce your market presence.

I recommend using a holistic process. That means a combination of organic activities and some pro-active high visibility promotions to re-establish your marketing prowess and build more market confi dence in your community.

Organically, you need to be visible at every community function, club meeting and social activity you or your people can attend. Gather all your managers and employees and create a list of organizations they are active with in the area. This means anything from church groups, sewing circles, quilting clubs, bowling leagues, Kiwanis, Rotary or any other civic or volunteer association. Develop a single message for your team to share with their neighbors and associates in these groups.

The message should be something like: “Our dealership is still here, we’re planning for long-term growth, and we have new and exciting vehicles coming in all the time. As a good neighbor, we are offering coupons to invite you to our store for a free car wash, discount on vehicle purchase or service, and for a limited time we are offering a gift

certifi cate at a local restaurant when you test drive and/or purchase a vehicle.” You can come up with incentives and promotions that make sense for your market. Print 4 x 6 postcards (5,000 cost less than $300 to print — artwork is extra) with your messaging and offer, and give every employee stacks of these to handout when they are out in the community.

Dealers should also look for speaking opportunities at civic clubs such as Rotary, Kiwanis, Optimist, Lions and others. Often they invite local business people to speak at lunch or breakfast meetings and this is a great chance to connect with and share what is happening in the auto sector with other members and infl uencers in your area. This takes care of the organic component.

Now, you need to jazz up your marketing to bring some volume of customers in the door. One way many dealers are leveraging this opportunity is with on site advertising sales events to bring shoppers back to the showroom. Plan a “Grand Re-Opening” event and pull out all the stops. Use advertising to really create some visibility for the event. Create excitement, a sense of urgency, and the potential for vehicle shoppers to get really great deals on quality, fuel-effi cient cars and trucks. Spring and summer are the perfect time for advertising super sales and with some signs of employment picking up in various markets consumer confi dence, while still wary, is starting to come back.

GM and Chrysler have ramped up customer incentives to almost obscene levels. Many Chrysler, Dodge and Jeep vehicles have $2,000 to $4,000 discounts. That puts many of these units into the certifi ed pre-owned price range, making it very attractive to contact customers in two- or three-year-old vehicles and bring them back in for a new model.

Auctions are one of the events drawing the biggest crowds. You can utilize a

multi-channel promotion approach that incorporates a Web site to bring in Internet leads, a print component to hit the market area in your local area, and then e-mail and onsite teasers to create excitement. Many times dealers will have a multi-day event and invite prospects in to inspect the auction vehicles before the actual day of the auction. Naturally, you can sell any of these “auction vehicles” if you have a customer that doesn’t want to risk losing the vehicle to another high bidder.

It is also important to get complete buy-in from your team. Make sure all your managers and salespeople understand and really commit to the event. Before you know it, they will all be really jazzed for the big day. Pre-sale training for the event is critical as you want everything to go smoothly.

Then, on the day of the auction event, roll out the red carpet and go all-out greeting each customer when they come on the lot. Reaffi rm that this auction is indeed a big deal. This validates to the customers that the event is legitimate and builds on the excitement you created in your pre-event auction marketing materials.

You should also put some extra incentives out for your salespeople. Consider a spiff on each customer a salesperson registers for the auction and another spiff for converting a prospect into a demo ride. If you have sales teams, maybe a friendly competition with prizes for winning team members could move them to put a little bit extra into the event. The goals are to build traffi c, increase sales, and have fun. Sounds like a solid plan to me.

Drake A. Baerresen is the vice-president of sales and marketing and co-founder of Turn-Key Events. He can be contacted at 866.900.7714, or by e-mail atdrakeb@autosuccessonline.com.

DrakeA.Baerresen

www.autosuccessonline.com

26

PatrickColbert

TIME IS UP. THE RED FLAG RULE IS HERE

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MarcSmith

WHAT WAS THEIR NAME AGAIN?

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How many times have you found

yourself in this situation? Shortly after being introduced, you can’t remember a salesperson’s name. Not to worry; you are not alone. This happens all too often and has a simple solution.

A few years ago, I was running late leaving a workshop in Kansas City. Upon reaching the airport, I sprinted to the airline counter to make them aware that I had arrived, hoping I could still make it to the gate in time.

The agent at the counter smiled and asked, “How can I help you, Mr. Smith?”

I instantly felt comforted. He had called me by name. I thought, “I know I fl y a lot, but they know my name; I think I can slow down.” After checking in, I calmly headed for the gate.

When I arrived, the attendant at the gate said, “Hello, Marc, I’ve been waiting for you.”

I thought, “That’s nice. She called me by name.” Although I’m sure it’s because they notifi ed her I was running late, but that I was on my way there. I thanked her and proceeded down the ramp to the plane.

When I got to the door, the fl ight attendant said, “Hello, Marc. Welcome aboard.”

As I continued on to my seat, I thought again how odd it was for everyone to be calling me by name. After stowing my bag and buckling myself into my seat, I said hello to the person sitting next to me.

The gentleman responded with, “Hi, I’m Bob, and you must be Marc.”

With a look of astonishment, because I knew I wasn’t that famous, I asked him how he knew my name. He laughed and

said, “Because it’s on the name tag you’re wearing.” I began to laugh and quickly removed my tag.

In thinking back to that experience, I remember how it made me feel when people called me by my name, and what a positive effect it must have had on them to be able to call me by my name. If the sales process is all about the customer’s experience, then anything we can do to make the customer more comfortable is worth doing. We want customers to be as emotionally involved in the purchase of their new or pre-owned automobile as possible, with little or no distractions. Having to worry about remembering the salesperson’s name can be stressful for them. Knowing the salesperson’s name makes the transaction more comfortable for the customer, and helps to bond the relationship between the customer and salesperson.

So what’s the solution to a customer not knowing a salesperson’s name? A name badge. It’s such a simple solution, and yet so many dealerships do not require them. I have visited hundreds of dealerships around the country and am sad to report that most do not use them. When I ask why, dealers respond that they used to, but that most of the staff kept losing them. Or, they would say that most employees don’t like to wear them.

What ever happened to accountability, I wonder. If a NASA, CIA or government employee showed up to work without their name badge, do you think they would let them in? I don’t think so. Creating a better work environment can be just as important as creating a better sales process environment. I have to laugh when I think of the many times I have heard managers say that they can’t remember their new employee’s name. Think about how it must make the employee feel every time someone tries to engage them in a conversation without using their name. Or what’s worse,

when simply avoids them altogether because they can’t remember their name. Remember, improving communication skills will always increase productivity. As for comfort, the latest name badges have magnetic backing and are easy to remove without harming your clothing.

Name tags are effective tools to improve both internal and external customer satisfaction. Think about your favorite restaurant, or a place of business that you frequent. Maybe you haven’t been there in a while, but they still remember your name. It sure makes it more comfortable for you when you can easily return the gesture by viewing their name badge and using their name.

It has been said that the greeting is the most important step in the sales process, and that the customer determines the degree of likeability of the sales associate, and if they can be trusted within the fi rst few seconds. What follows the greeting can only be improved by eliminating any diffi culty the customer may encounter in trying to remember a sales professional’s name.

Most places of business today have learned the value of having their employees wear a name badge. If you make the decision to purchase name badges for your staff, remember that quality counts. That badge is as important as the sign in front of the store. A low budget badge will refl ect poorly on the image of the store and the person wearing it. The next time you’ve been introduced to someone and have to ask, “what was their name again?” Think about the power of the name badge. I am wearing mine right now. Are you?

Marc Smith is the president and CEO of Marc Smith International LLC. He can be contacted at 866.665.4479, or by e-mailat msmith@autosuccessonline.com.

www.autosuccessonline.com

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SeanV.Bradley

CAR SALESMAN MAKES $200,000 IN THIS ECONOMYInternet Sales 20 Group XVII

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The economy has had an effect on a

lot of people, from dealerships to the sales professionals that work at the dealerships. I read all of these “Doom and Gloom” news stories — stories of dealerships closing, people getting laid off, etc. This is a different type of story: a story identifying a truly remarkable sales professional who has completely shattered the reality of a recession with his dedication, skill and tenacity.

We are continuing our Interview with Chris Gramlich, Internet Sales Manager from Peruzzi Toyota in Hatfi eld Pennsylvania. Chris is in the top .5 percent of the automotive sales consultants in the United States in annual income generated. Chris made $225,000 in one year, and is on track to make $200,000 this year, when all conventional wisdom is screaming that the sky is falling.

Sean V. Bradley: Do you have a system or a set process? Chris Gramlich: Absolutely. The fi rst thing I do is sit the prospect down and initiate a needs assessment. I want to fi nd out what their wants, needs and expectations are. A lot of times they might not know what they are after, or they may fi nd out what they are after won’t fi t their needs.

SVB: Is there a difference between prospects? Is an “Internet Up” different from a “showroom Up”?CG: No. An “Up” is an “Up.” Obviously, everyone is unique, with different wants, wishes and expectations. But an “Internet Up” is the same as a “showroom Up.” They both breathe the same air, want to buy the same vehicles and both want to be treated fairly, respectively and get a great deal.

SVB: I understand that you work with the Internet Department. Is that the only traffi c you get?CG: Absolutely not. This business is simple. The more you put into it, the more you get out of it. I learned a long time ago not to

just wait for things to come to me. Instead of taking a “reactive” approach to my career, I chose to take a “proactive” approach. For example, I have an assistant who works the service drive every morning prospecting for me; we have an average of 70 ROs a day. Orphan owners get a letter from me introducing me as their sales consultant. There are people who service their vehicles with us who did not buy a car from us and they, too, get a letter introducing me as their sales contact. My previous customers all get a letter from me, thanking them for coming into the dealership to service their vehicle. Every morning from 8 to 9 a.m. (which is the prime time for ROs), my assistant is out there making sure that no one has any questions about their vehicles, seeing if anyone wants to trade them in, and seeing if we can buy them for the used car department. They also get solicited with my card and get entered into my database.

SVB: Your dealership’s pretty big. Do you stand out? CG: Yes. The whole service thing was offered to everyone a year and a half ago. As a matter of fact, it had to be assigned to salespeople, and they had to spend a certain amount of time in there. But it just wasn’t working out. People saw it like a chore, an inconvenience. The owner wanted a sales presence in the service drive. So my assistant spends an hour a day before I get into work, and he is my presence in there. There are people who prospect, but as far as the service drive goes, I am the only one who really handles that.

SVB: Tell me how your career has been selling in this economy.CG: This might sound crazy, but I actually prefer to sell in this economy. Because when someone comes in to buy a car, they are serious about buying a car. They are shopping around (which they always are), but they are “need” buyers. I have worked in times when it was so good out there that some prospects would actually just stop by on a Saturday to see what you can put

them into. Nowadays, people who are buying vehicles need to buy a vehicle. They can tell you that “it’s rough out there,” or “I’m just shopping around.” They can tell you that, but they still are looking for someone to meet their needs. And once they fi nd a value higher than what they’re paying, they will buy from you.

SVB: What is your advice to other sales professionals who are struggling right now in this economy and are reading this and thinking “No way is this real” Or “No way can I do anything about my situation”?CG: They need to get focused and stay positive. It might sound simple, but it really is. The only motivational material in my offi ce says “Stay Positive.” You have to believe you can be successful. Because if you keep telling yourself how bad it is out there, keep blaming the economy, Barack Obama, your manufacturer, your dealership, your co-workers, your spouse, your life… you will never be successful — ever. You have to, fi rst and foremost, believe you can be successful, and that failure is not an option. If you really believe that then you will be successful. Things have to be created twice for them to manifest — fi rst mentally, then in physically.

We’ll conclude our discussion with Chris Gramlich next issue.

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

www.autosuccessonline.com

32

marketing

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tion PeterMartin

USING GOOGLE ANALYTICSWITH E-MAIL MARKETINGIncrease Reporting Capabilities and Boost Relevancy and Response, Part 2

Last issue, we went into the importance

of tracking user behavior on your Web site, using tools such as Google Analytics (freely available at www.google.com/analytics). This month, we’ll look at how to actually get started.

Google Analytics allows you to defi ne and track four key goals. These goals are the end actions that you want your subscribers to take, such as a completed online sale, white paper download, contact or inquiry, demonstration or pricing request, etc. All of your e-mail marketing activities lead subscribers along a path to these

end goals, and conversion tracking is the most important metric for you to measure. But, alone, it does not give you enough information to understand your subscribers.

Google Analytics gives you quick and easy access to information that will allow you to build accurate subscriber profi les. With Google Analytics, you can:

• Tie goal conversion back to a specifi c e-mail address or to a link through a specifi c e-mail campaign

• Gather information on the average amount of page views per visit tied to a specifi c e-mail address or to a specifi c e-mail campaign

• Capture overall conversions from a specifi c e-mail send

• Summarize number of total visits across all e-mail campaigns

• Track goal conversions hourly so you can determine the exact time of day that you receive the most traffi c and business on your Web site

E-mail marketing is a step-by-step process that opens the lines of communication between a corporation and its subscribers and it bridges the gap between the subscribers and the corporation’s Web site. As technology expands, the complexities of growing, segmenting and managing your e-mail lists and campaigns are becoming more sophisticated. The more you know about your current subscribers, the more likely you will be to not only add them as customers, but to also fi nd more subscribers that meet the same criteria and potential. To do that, you must understand who your current subscribers are, what their needs are, where they came from, when they subscribed, why they continue to interact with your company, and how they will respond to your e-mail messages. Google Analytics will tell you all of these things.

The more data you have, the more accurate your trending reports will be across multiple campaigns. Combining both your e-mail tracking features and Web analytics data, you’ll gain a complete understanding of your subscribers. Once you know this information, you can use it to create relevant e-mail campaigns that are essential to your subscribers’ needs.

Peter Martin is CEO of Cactus Sky Communications, Inc. He can be contacted at 866.859.8052, or by e-mail atpmartin@autosuccessonline.com.

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After 18 months into this recession, the

continuously gloomy media forecasts have become enough to drive anyone mad. At this point, we are all aware that times are tough, as many watch market share and profi tability steadily decline. However, what is often overlooked is the impact all this bad news has on sales staff confi dence, and we all know that confi dence is key to selling.

So what’s the secret of managing confi dence — even when things get rough? Here are a few points to consider when building positive sales momentum and ensuring your sales people keep moving in the right direction.

No Good News, No Bad News —It’s All Just InformationWhat makes “bad news” so bad? It’s all in how you look at it…

Sure, the fl ood of depressing headlines makes adopting negativism tempting, but what good can come from that? By focusing on the negative we in turn believe, decide, and act negative. While the media will likely keep their focus on dark and dismal headlines, don’t lose sight of the light at the end of the tunnel. Mindset is a powerful tool. How we allow ourselves to perceive situations is what, in turn, fuels our beliefs. If we give up on believing success is possible, we lose the power to swing sales momentum in a positive direction.

To block out the effects of negative media, turn off your TV and ignore the Internet. Instead, redirect your focus to reading positive books. Believe it or not, the mind needs to be constantly fed information that’s empowering to help overcome feelings of distress.

Remember that the speed of the leader equals the speed of the team. By putting faith in an optimistic outlook, you are providing an encouraging reason to help sales people take that fi rst positive step.

Pass Your Negatives Up And Your Positives DownWhile you will still come across some less-than-hopeful information, be mindful of whom you choose to share it with.

Today’s sales professionals are increasingly pressured by the threat of bad news. Since momentum is fueled by attitude, it is

important to keep only positive information fl owing to your sales force. Consider asking one sales person each week to be responsible for supplying a motivational quote of the day, to be shared with the rest of the dealership staff. This not only reminds staff members to think positively, it also keeps sales personnel engaged in the process of shaping the dealership’s overall attitude.

Likewise, keep your superiors apprised of any negative news. In many cases identifying potential problems will help you and upper management strengthen business strategies to overcome obstacles. In the end, these efforts will help achieve shared goals and foster an empowering sense of success.

Try To Motivate With Less Money and More SenseSince attitude is crucial to determining what direction sales momentum will sway, it’s important to consider different options to help keep sales people motivated. While many of us may instantly resort to using money as a means to infl uence ambition, motivation in sales does not always have to be fi nancially driven.

Of course the more they sell, the more they make, but goals like this can’t be achieved without supplying some sensible points to help them get there. Consider closely monitoring daily behaviors. Are your salespeople cutting corners? Have they become so focused on getting a deal that they have moved away from selling to go straight for the close? Make sure to publicly compliment someone who is doing daily activities correctly or is following all of the steps of your sales process.

Moving The Needle TowardsPositive MomentumAs a result, your sales staff will learn to fi nd reward in actions that are not linked to a fi nancial return. Since that which gets rewarded is what gets done, your sales staff will be motivated to complete daily tasks while positively infl uencing sales momentum.

Yet when motivating sales staff — either by sense or by money — understand that you can always compress time frames, but never skip steps. While it may be necessary to achieve certain goals in a shortened period of time, it is no excuse to skip steps in the sales process — no matter how insignifi cant those

steps might seem. Whether in good times or bad, ensure your sales process is always implemented.

Work With Winners. Winning Is An AttitudeFor winners, positive momentum is something that is found, built and maintained at all times. If you chose to subject your staff to the infl uences of negative people or poor accountability, you can’t expect a positive return.

Positive momentum starts with personal attitude. By acknowledging even the smallest of victories, you are reinforcing the belief that success is possible. Remember that “momentum = sales,” which means little bits of improvement, over time, can lead to drastic change.

Look at it this way: Inch by inch, life is a cinch; yard by yard, life is hard. Learn to look for ways to help your staff make small daily improvements to keep them selling confi dently as opposed to desperately.

For some, however, sparking a change in attitude can only be achieved with the help of outside infl uencers. This is where bringing in motivational consultants or a responsible staffed event team can be benefi cial. With fresh perspective, these outsiders can often offer insight into solutions that may have been overlooked by the dealership. During these events, one of two things can happen. Your staff may learn a few new tricks of the trade, or just be reminded of positive things they used to do, but have stopped doing for whatever reason.

In the end, however, we have to acknowledge the fact that momentum often will change directions with even the slightest hint at bad news. While we have no ability to control negative infl uences; we do have the ability to control how we respond to them.

Attitude is everything. Without taking necessary steps to sway sales staff in a positive direction, you can’t hope to reap many positive results.

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

MattBaker

MOVING THE NEEDLETOWARDS POSITIVEMOMENTUM

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www.autosuccessonline.com

36

Dealer closings seem to be the talk of the

day. Chrysler and GM recently announced hundreds of dealer closings; our industry is certainly taking a lot of hits and, for many retailers, the news is not good. For the dealers still standing, this is both a great opportunity and a clear message that it is time to get busy and kick your marketing into high gear. But fi rst, most dealerships need to do some basic house cleaning in their operations area.

For years we have heard about database marketing. All the big consumer companies, banks, credit card companies and mortgage companies go to their existing bank of customers to up-sell more products and services. Auto retailers to some degree have been doing this too, with varying degrees of effectiveness; but, as we are seeing, the old ways of doing business aren’t gonna cut it anymore. Dealers need to be more strategic in their database marketing efforts, and I would like to share some ideas on how dealers can do this now.

Let’s address a basic issue fi rst, and that is cleaning up the bad data in your DMS. Recent economic and technology events have triggered mass changes to information previously entered in your data systems. People are moving to take new jobs and downsizing lifestyles, which is triggering new addresses and phone numbers. The Internet explosion is causing e-mail addresses to change quicker than the mind of a politician looking at poll results. Cheap cell phone plans mean many new cell phone numbers too. Bottom line: If you don’t know where your customers are or how to reach them, it’s impossible to market to them. Start working ASAP to put a plan into effect to clean up this information. Verify your phone numbers and addresses and append customer data with current e-mails, too. There are good, cost effective solutions available, so fi nd a vendor and get moving. OK, now that you have done your list

hygiene, start going after more business.

You’ve just had a customer trade-in appraised and were pleasantly surprised that it has a strong book value. You notice that with this strong book value, combined with all the current incentives, you can offer a payment darn close to or the same as the customer walked in the door with. Hmmm.

Sounds like a deal to me. Now what if you went through your database and found all of your customers who are driving a vehicle the same as the one just traded-in? What if you reached out to them with the message that, if they traded-in that vehicle, you could put them in a brand new vehicle for about the same payment they are paying now for a two-year-old vehicle? This will take a bit work, but could yield incremental sales from your existing happy customers.

If you like that concept but don’t have the resources, don’t worry; there are vendors who can assist you in the process. They take it to a more sophisticated level. The company pulls historical sales data from your system, calculates the current loan

balances on selected vehicles, looks at the current manufacturers incentive programs on their new vehicles and produces a list of customers whom you can invite in to see new cars and share with them that their payments will either stay the same or be just a few dollars more. This program has shown to be very effective in generating repeat sales to existing customers.

Another opportunity is to generate a list of customers who are about to have their basic factory warranty expire. This is a great time for your F&I offi ce to make a call and offer these customers your extended service contract so that “full protection” remains in effect and allows them to offer the next buyer an “in place” service agreement.

You can also leverage a program that looks at the vehicle VIN and mileage of vehicles in your DMS. It then compares that information with a database of manufacturer-recommended services based on the manuals for every vehicle produced since 1984. It reports what services and parts are recommended to be replaced at the next scheduled interval. Dealers can then send a targeted communication such as a postcard or e-mail to those customers with specials and invitations for a specifi c service or parts replacement.

You can also do a simplifi ed version of this yourself by looking at the mileages of selected vehicles, but the offerings will be a bit more generic. Auto retailers are great at selling and maintaining vehicles but often are not profi cient in handling some of these marketing and database items internally. If that is the case at your store, look to establish a relationship with a low-cost, high-effi ciency fulfi llment partner. There are a number of good vendors available to help.

Steve Cottrell is the CEO of DMS Update, a division of Authenticom. He can be contacted at 866.696.4957, or by e-mail at scottrell@autosuccessonline.com.

SteveCottrell

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