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When Ed Tonkin made the decision to look for a new inventory management system, he wanted something powerful enough to support and optimize his greatest asset —  his people. Provision® was the only tool that delivered a consistent methodology his whole team could uphold. Now Ed and his 10 used vehicle managers use Provision to find, appraise, price and merchandise their inventory across every location. In about two years, they saw a 15% increase in used vehicle sales volume across all 10 rooftops, and an 8% increase in profit per used vehicle sale. With Provision, the Tonkin group is making consistent, proper appraisals, turning faster than ever — and closing more deals.

— �Ed Tonkin, Vice�President�of�the�Ron�Tonkin�Family�of�Dealerships,�Portland,�Oregon

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Provisioning Appraising Pricing Merchandising RealDeal

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“The Big Money’s NOT In SELLING Cars. It’s In SELLING SOLUTIONS.And That Discovery Can Change Your Life.”How a POWERFUL SYSTEM evolved from a simple idea to

become a complete marketing revolution that helps dealers explode sales and income without cutting prices.

If you’re selling fewer cars and making less money than you’d like, and you’re willing to admit it, we can help. MUST READ

rlando, FL—Here’s the dirty little secret about making great money in the car business: it doesn’t have a whole lot

to do with how good of a job you do. You can offer excellent customer service, have a front line packed with the hottest selling vehicles, offer the lowest prices in town, have all of your inventory online, and be set up with the most aggressive sub-prime lenders in the business and still starve to death—waiting for ups to show up on your lot.

You’re busy one week and lonely the next and always worrying about where your next sale is coming from—and afraid to make a decent gross for fear of losing the one good customer you have to a competitor. Most dealers stubbornly believe that being good ought to be good enough and that by getting better at the technical aspects of running a dealership they will sell more cars. Wrong.

We’ve also seen hundreds of dealers nearly going broke copying the ways everybody else seems to get their customers—wasting money on all kinds of dumb advertising or trying the “lowest price approach” (which is actually the worst thing you can do). You may scrape by with a few sales from walk-ins, a lucky break from an online lead, and maybe a referral or two—nervous-nellie, trying to make your whole month in one week.

But two discoveries changed our life. They might change yours, too.

HOW TO SELL MORE CARS EACH WEEK THAN YOU NOW STRUGGLE TO SELL IN YOUR BEST MONTH, DO IT EASIER THAN

YOU CAN IMAGINE AND EVEN TAKE A FEW DAYS OFF IN THE PROCESS

The first discovery was that hardly anybody in the car business has any background, education, or savvy in marketing, so everybody copies everybody else—the blind leading the blind... doing everything the hard way. Our turn around started when we began ignoring just about everything else we saw other people doing in this business and went in an entirely different direction, (that direction, by the way, was into what’s called Gravitational Marketing®)—with breakthrough results: like helping a middle-class used car dealer in Texas with a fledgling new car franchise (it was more a curse than a blessing) go from selling less than 10 cars a month to 38 cars after 30 days then 104 cars after 60 days; like a very simple strategy that drives a steady flow of ups every single week like clockwork; like five small changes made to an ad that more than doubled response (without increasing spend); like a different way to position a dealership that made the competition look minor league (without offering low prices).

That was discovery #1.The second discovery was a 100% paradigm

shift. We realized dealers must change from selling cars to providing solutions to real people’s problems that are keeping them stuck in a car they hate. And that’s when we saw the big changes happen. Like a small franchise dealer in Pennsylvania go from selling about 80 new and used per month to now over 250

each month. Or an independent dealer from Kentucky who is actually able to take Saturdays off while still grossing over $500k per month.

Dealers using our SYSTEM who are willing to work harder can jump up to even bigger results. And already successful, larger operations can instantly increase revenues AND profits by 100% or more.

WHEN YOU LEARN AND IMPLEMENT A TRUE MARKETING SYSTEM LIKE OURS, YOUR STORE WILL BE CROWDED EVERY SINGLE DAY WITH REALLY GOOD, DESIRABLE NEW CUSTOMERS

We have invested the last 15 years and tons of cash to test, prove and hone an entire collection of advertising, marketing, profit improving, lead generating, dealership building and referral stimulation strategies. If you get your hands on ‘em, you’ll instantly be light years ahead of all your competitors. Many of our strategies are “bargain-bin” marketing strategies—that’s because many of the smaller dealerships we’ve proven them on haven’t had much money to spend. Bottom line: we’re not asking you to spend a lot of money here. Most of our strategies are simple, because we’re not rocket scientists—we’re just maverick marketing guys. Most of the strategies can be put to use quickly and effortlessly. And here are a few of the biggest benefits you’ll get from our SYSTEM:1. How to “target” certain types of desirable

customers and get them to call you2. Raise the results of every ad you run by

200% or more (whether it’s direct mail, radio spots, TV, email, or any of the little-known NEW ways of reaching "hidden" enthusiastic prospects)

3. How to remove yourself from the commodity pricing game, escape price competition and avoid the “lowest price battle”

4. The one way to make an ad that will terrify your ad reps, but thrill prospects, sending them stampeding to your lot with open wallets

5. How to create a ravenous fan base that sells for you (absolutely free)

6. A basic equation that tells you exactly what ad media to use for your store

7. The 10 most important things you must put in every ad if you want people to respond and buy

8. The one element that is missing from almost every advertisement and why you really can never sell at peak-performance without it

9. How to immobilize tire kickers and spin them into raving fans after they’ve paid more for the car than they could have somewhere elseTHE NEXT STEP IS PAINLESSLY SIMPLE,

100% FREE AND GUARANTEEDAre you happy with “business as usual,”

things as they are? (If so, ignore everything we’ve said up to this point and the offer we’re about to make.) If you ARE somewhat frustrated, then you need to choose what kind of business you want to be in: one that’s really

just “a job,” a daily grind that you have to force yourself out of bed in the morning to go to—or an exciting, highly profitable, rewarding business that you can’t wait to get to every day? If you are open minded toward, and ready for something that can make a difference in your dealership right away, then we have a remarkable guaranteed free offer for you.

First, at your request, with no obligation, we’ll schedule you with one of our Senior Strategists for a FREE Customer Attraction Strategy Session. We will also rush you a copy of our newest, controversial book, Invasion Of The Profit Snatchers. To get this FREE book and schedule your Customer Attraction Strategy Session, visit www.DealerStrategySession.com or call our office at 888-253-4148 and ask for Janet. If you get this book, read it, and honestly can say that reading it was a waste of time, write and tell us, and we’ll send you fifty bucks OR we’ll send one hundred dollars to your favorite charity, your choice. We guarantee that reading this book will NOT waste your time!

Yes, it takes some pretty big balls to make that kind of an offer to tens of thousands of car dealers. It could bankrupt us. But we know from experience it won’t, because of the reactions we’ve gotten from other people who have read our previous books. (Wait until you see what they have to say!)

Look, we charge $25,000.00 a day for consulting. But you don’t have to shell out a single penny to get a good, hard look at our SYSTEM.

Just call and get our free book. Still, a whole lot of folks will read this and won’t take us up on our offer. Why? Stubbornness, Laziness, Apathy, Skepticism, Resistance to Change. Consider this: Keep doing what you’ve always been doing and you are certain to keep getting only what you’ve been getting. In fact, the definition of insanity is doing the same thing over and over again, but hoping for a different result. Well, it’s up to you.

Why not investigate what all this can do for you? Request your FREE Customer Attraction Strategy Session. Just call 888-253-4148 and ask for Janet, one of our Senior Strategists.Or visit www.DealerStrategySession.com. Don’t procrastinate though, this offer won’t last forever.

PS: It doesn’t matter whether you’re a “little guy” on a dirt lot with a 3 car front line or a good-sized operation selling well over a hundred cars per month. We’ve helped mom-n-pop’ers as much as triple their incomes in a single quarter. We’ve also worked with big operations to dramatically improve profits. OUR SYSTEM is valuable whether you’re a used car dealer or a franchise store. It works anywhere, anytime, any market for anybody in the car business. PERIOD. Proven. And we’ll show you PROOF on the Customer Attraction Strategy Session. For more information, visitwww.DealerStrategySession.com.

O

Travis Miller Jimmy Vee

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marketing solution

leadership solution

sales & training solution

10

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16

the perception vs. the reality of internet leadsscottPechstein 24

the critical differences between vendorsand partners

seanv.Bradley 40

automotive sales management training: sell the car, not the deal

markTewart 28

robertWiesman 18 a mobile strategy is not just for the dealership– it’s for you, too

five keys to choosing the right digital marketing consultant for your dealership, part 1

tracyMyers 16

susanGivens 08 differentiating your dealership in changing times

budAbraham 22 buffer swirls in the paint:a problem confronting dealers are swirls in the paint finish after detailing

dealerPanel 30 team, training and technology, part 3

do your vendors have what it takes to keepyour data secure?

russellGrant 42

marshBuice 14 pick a side

jimmyVee &travisMiller 20 the four ways to bring your dealership

back to life, part 2

dalePollak 26 three best practices to manage usedvehicles as investments

employing white hat seo methods and search content marketing

paulAccinno 34

alanBird 36 online shopping: embrace the new reality

ajLeBlanc 44 integrating video into your marketing strategies

johnTraver 10 the business of buying leads

digital marketing is still marketingglennPasch 38

Join the more than 2000 dealers who trust SCI to help turn their leads into their customers. Want the full story?

Visit our site.

scimarketview.com

One Dealer’s Lost Lead Is Another Dealer’s Customer.

08 autosuccessonline.com

SusanGivens sales & training solution

differentiating your dealershipin changing times

General Manager Mike Hills Acton Toyota of Littleton

www.jandlmarketing.com/bLinked800.346.9117 | bLinked@jandlmarketing.com

Scan for the solution now

We’re selling 20 to 45 units

per month with bLinked.It’s the best thing

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M A R K E T I N G

wilkinmarketing.com866-513-6685

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The car buying landscape is evolving rapidly, making it more difficult for consumers to distinguish one dealership from another in the shopping process. There are a number of factors contributing to this trend:• The proliferation of lead-generation syndicators is giving consumers more direct access to

inventory listings, creating a commodity effect. It is easier than ever for a customer to locate and price the same vehicle at any number of dealerships.

• Mobile technology has exploded, exponentially increasing the availability of vehicle information to shoppers. Not only are these customers well-informed, sometimes even more so than the sales consultant, but now they can (and do) access reviews, OEM sites and other sources while shopping in the dealership.

• While Apple and other companies have re-shaped customer shopping expectations, the in-store experience at many dealerships is stagnant, utilizing the same presentation techniques that have been in play for decades.

As inventory and vehicle information become more commoditized, the dealership experience becomes the real differentiator. An examination of your position and reputation in both your local and extended markets can show you how you need to evolve. There are three key factors that can help you stand out more effectively:1. Branding – How do you want customers to think about your store? When you define your

brand based on the dealership experience you provide, you are offering your customers more than just a vehicle that they could purchase anywhere. Give them a reason to come to your dealership, and make sure it is consistently communicated on your Website and throughout the store; it should be embodied by everyone on your sales team. Consumers respond strongly to multimedia, so create and post a video about what makes your store special.

2. Mobile Technology – iPads are increasingly being used in the sales process. Customers expect it, some OEMs require it and it speaks volumes about how progressive your dealership is. So the question is not if you are using iPads, but how you are using iPads in your store. Customer engagement is the goal. Use features such as “how-to” videos to make complex technology easier to understand.

3. Value – Where do you fall on the price/value continuum? The more you focus on price, the harder it becomes to differentiate your store. Make sure you are delivering value by establishing yourself as a professional, trustworthy expert within your local market. Take a consultative approach and tailor your presentations according to customer needs, rather than one-size-fits-all. Vehicle comparisons (to other models or trims under consideration) filtered from the customer perspective can help to reinforce value.

Mark Barton, general manager of Daniels Long Chevrolet, said, “As the Internet puts every dealership across the street from us, it is critically important to differentiate ourselves. Using iPads in our sales process helps us to stand out, and gets a hugely positive response from our customers. Some of the things we have put in place are showing DealerRater to the customer during the meet and greet, going over the customer benefits of our dealership and incorporating videos of each sales consultant their customers will watch before going into F&I.”

Jim Hughes, co-founder of IntellaCar, the iPad selling system used by Daniels Long Chevrolet, said, “We continue to see that dealers who provide a more credible, enjoyable, efficient process by leveraging iPads are reaping the rewards. They create an experience that is worth telling friends and online reviews about. Now that creates a powerful brand, regardless of the syndicated inventory.”

Susan Givens is the publisher of AutoSuccess. She can be contactedat 877.818.6620, or by e-mail at sgivens1@autosuccessonline.com.

M A R K E T I N G

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General Manager Mike Hills Acton Toyota of Littleton

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10 autosuccessonline.com

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Photo by Marc Rosebeck

The lead-buying binge continues to swell in our automotive industry. In 2011, more than $3.24 billion was spent on purchasing automotive leads. The forecast for 2015 is $5.8 billion. That’s some serious marketing dollars being spent.

When you look at the advertising cost per unit sold over the last 10 years, we have really added pressure to the front-end of the dealership. Just over 12 years ago, NADA reported a $325 per vehicle advertising cost. The same source reports a $628 dollar per vehicle advertising cost for 2012. Considering the 2015 projected continued increase in lead buying, one must wonder where this ride stops and the people get off.

As I hear from many strong retail automotive professionals every week, there is a growing concern over the cost — and the effectiveness — of buying leads. About six years ago, the average lead sold for $18 to $23 per lead. Today, you can still buy some types of lead for that figure, but apparently leads have morphed, because today there are dealerships paying $55 to $75 for leads.

There are so many lead sellers and re-sellers that I stopped counting when I reached 50. What I have been told by some dealership personnel is they are concerned because not buying the leads basically means their competitor will buy them. That’s a difficult position to make a business decision.

leads definedA “lead,” in the context I am talking about, is essentially the name of a prospect with an e-mail and, hopefully, a phone number. Taking into

consideration the cost of that lead, there is still a considerable amount of money to spend before you can see that “lead” on your showroom floor or, better yet, driving one of your vehicles.

The cost of follow-up and the business development pursuit comes with a price tag, and that process is one I believe in wholeheartedly. My concern with this strategy, however, is the conversion rate of these leads.

There are issues dealerships are concerned about, including buying leads that are also sold to other dealerships. There are studies that have been conducted every year for the past six years that show that only about 10 to 15 percent of these third-party leads actually buy from the “intended” dealership. The rest are purchasing their vehicles somewhere else.

The issue here is that with such a high percentage of third-party leads buying elsewhere, the impact on the cost of sale ultimately will continue to go up. And, as we all know, there just isn’t that much gross profit in the average transaction to support these costs long term.

planning aheadThis trend is an obvious one. Selling leads seems to be a great business. Buying them, however, doesn’t seem to be as profitable. Some dealerships have been giving guaranteed “best” pricing on the Web as a way to increase the conversion of the leads they are trying to convert into a sale.

Other dealerships would rather not pay for “leads.” Instead, they want to pay for sales. That will be quite the evolution of leads — if it ever comes to fruition.

Innovation is the name of the game. And, in order to innovate, you really need to pay attention to this trend with regard to leads. It might be eating your profits faster than you think.

By improving your lead conversion processes, you can increase the conversion rate of the leads you are already buying. And there are some very good “lead conversion” solutions available in the automobile industry. This potentially allows you to reduce the amount of leads you are buying, or perhaps target your most productive lead sources.

It starts with how you handle the “in-market” leads you are getting. Those are your hottest leads. You need to have a well-executed process for maximizing these leads. This is where you should spend your money — on any process that legitimately can be tracked to increase the conversion rate of the leads you are getting on your Website and on your incoming sales calls.

Then, seal the process with proper follow-up practices. This means having the right information so you can reach these prospects as they work their way through the buying cycle. And it means having intelligent conversations when you do reach them in an effort to bring them back to the dealership.

Most dealerships have high monthly goals for each department — and goals are needed. I also know this one thing: This area requires more than a goal. It requires growth. Your dealership will need a consistent process that raises the bar in lead conversion to be able to compete in the coming years. The sooner you start looking for a solution, the sooner you will see growth.

JohnTraver marketing solution

the business of buying leads

John Traver is the CEO of Traver Connect. He can be contacted at 866.685.5725, or by e-mail at

jtraver@autosuccessonline.com.

podcast in

terv

iew

ee

http://www.autospinusa.com

Dealer PainsA day in the life of John Doe, the General Manager of ABC Motors is not always an easy one. He receives a large amount of data about his dealership from multiple sources every week. With so much information from so many departments to analyze, John struggles to keep track of it all. Unhappy with his current reporting process and the information available to him, John starts looking for new options that will allow him to complete all of his tasks and make his life easier.

John enters a search into Google, and stumbles upon ActivEngage’s reporting dashboard. He clicks the “Chat Now” button on the company’s Website and connects with Brian, a product specialist. Brian tells him about ActivDashboard, a robust reporting platform that will allow John to view multiple sources of data under one login. John will be able to see his marketing efforts in a more useful and easy-to-read compilation. This platform also offers the next steps John can take in order to make his dealership more profitable and efficient. John is interested in the product, and decides to try it out.

By looking at the dashboard, Lisa knows the store has received at least four leads this month from Twitter and two from Facebook that have converted to a vehicle sale or service visit. She can only imagine how many more quality leads they could receive if someone was focusing on social media for 40 hours a week. Lisa shows John the same dashboard reports that allowed her to trace specific leads to their sources. John is still a bit leary about social media, but is interested to see what Lisa can produce with this new position.

Social Media InfluenceLater that day, Lisa, a BDC Manager and John’s most recent hire, comes to John. “I really think we should invest in a specialist to handle our social media accounts,” she says. Lisa has been working on ABC Motors’ social media presence for the last few months, and it has started to interfere with her regular managerial duties. It is time-consuming to draft content for these sites and to keep up with all the posts and feedback. John really doesn’t see the value in social media and asks Lisa to provide some evidence of why this new position is needed.

Donna, his new customer success manager, immediately reaches out to John and his third-party vendors to ensure all data is captured within John’s dashboard. Within a week, John is up and running. Donna has already shown him where to log in, the different reports and information he can access and how he can use this platform to make better business decisions.

Manage All Your Digital VendorsMonday morning, two days before end of month, John begins to review the same information in his dashboard that he had to manually pull from a hundred different reports during the previous month. These new reports are excellent for tracking lead conversion as well as determining which third-party lead providers are producing the most sales for ABC Motors.

After lunch, John calls the Internet manager, Steve, into his office. John noticed earlier on ActivDashboard that their financing form conversion was low and says “We have to start testing and optimizing these forms so we can get a good return on this tool. Get with our form provider about this today.”

John also shows Steve the Website analytics and a few other reports available to them. Steve is impressed with the amount of detailed information within this new tool. He asks John if he can have a login to the dashboard as well. John responds, “Of course! I should probably get all of our managers a login. Let me call Donna to get everyone set up right away.”

Manage Your ReputationAround closing time, George, the parts manager, calls John about a customer complaint. The customer was not satisfied with the time it took for the part to arrive at the store. John took care of the customer, and then remembered there is a reputation management section of the dashboard which could identify any trending issues with store personnel or internal processes. John also wanted to know what consumers are saying about his dealership on review sites and how the store is being rated.

Different Strokes for Different FolksAfter John gets off the phone with Donna, Roberto, his service manager, stops by John’s office to discuss this month’s service report. Instead of discussing the old Excel reports, John gives Roberto a login for his own personalized ActivDashboard account. This way, he’s able to pull the reports specifically for his department and analyze them throughout the month to ensure everything is in working order. Roberto’s reports are more specific and detailed to his department than John’s. John knows the system was built to equip all levels of management with the data they need to make better business decisions, and hopes Roberto can utilize this tool to drive more appointments to his service bays.

Benchmark Your PerformanceNow that John has a ton of information at his fingertips about his store, he wants to know how they are doing in comparison to other stores that carry the same brand and are in his region. Within the dashboard’s benchmarking tab, John has the ability to compare his store to others, either by geographical region or by brand. John runs a report that shows how many unique visitors his Website receives compared to other stores with the same brand throughout the country. He also compares how many Website or digital advertising leads he has been receiving to that of other stores in his geographical region.

Knowing that the average dealership in his region receives 10 percent more leads from their digital advertising each month than John does, John now has a goal to strive for and works out a plan to increase lead conversion. He also reviews some of the tips available to him through the dashboard that outline the next steps he can take toward reaching his goal.

Empowerment for SuccessNext week, John plans to take a trip to Hawaii with his family. Thanks to the mobile ActivDashboard App, John can keep track of all his dealership’s activities and maintain accountability of his employees while he is out of the office. He will know instantly if any problems arise while he is away.

Because of John’s ability to track his entire digital business within one platform, John’s Website form conversions are on the rise, the new social media specialist has increased their social media leads by 30 percent, John has set three benchmarking goals that the store should reach by the end of the quarter, and the management team at ABC Motors is empowered to make better business decisions with minimal oversight from John. ActivDashboard makes John’s job much more simple and stress-free, because he has confidence in the information he is using. ABC motors is now on its way to being the most successful dealership in the region.

See ActivDashboard in Action and Start Making Better Business Decisions.

Call 888.972.0477

John found that, over the past two months, their reputation had been taking a hit due to poor parts reviews. They had recently hired George as the new parts manager, and his name had been mentioned in a few of the not-so-good reviews. John immediately calls George in to go over these reviews and discuss what can be done to improve their in-house processes and online reputation. John points out the reviews within ActivDashboard that say George’s customer service skills need some work and many parts orders were delayed. John suggests that George complete some training available within the dashboard from industry leaders regarding best methods for dealing with customers and time management. John will follow up with George in a month to discuss his progress.

Dealer PainsA day in the life of John Doe, the General Manager of ABC Motors is not always an easy one. He receives a large amount of data about his dealership from multiple sources every week. With so much information from so many departments to analyze, John struggles to keep track of it all. Unhappy with his current reporting process and the information available to him, John starts looking for new options that will allow him to complete all of his tasks and make his life easier.

John enters a search into Google, and stumbles upon ActivEngage’s reporting dashboard. He clicks the “Chat Now” button on the company’s Website and connects with Brian, a product specialist. Brian tells him about ActivDashboard, a robust reporting platform that will allow John to view multiple sources of data under one login. John will be able to see his marketing efforts in a more useful and easy-to-read compilation. This platform also offers the next steps John can take in order to make his dealership more profitable and efficient. John is interested in the product, and decides to try it out.

By looking at the dashboard, Lisa knows the store has received at least four leads this month from Twitter and two from Facebook that have converted to a vehicle sale or service visit. She can only imagine how many more quality leads they could receive if someone was focusing on social media for 40 hours a week. Lisa shows John the same dashboard reports that allowed her to trace specific leads to their sources. John is still a bit leary about social media, but is interested to see what Lisa can produce with this new position.

Social Media InfluenceLater that day, Lisa, a BDC Manager and John’s most recent hire, comes to John. “I really think we should invest in a specialist to handle our social media accounts,” she says. Lisa has been working on ABC Motors’ social media presence for the last few months, and it has started to interfere with her regular managerial duties. It is time-consuming to draft content for these sites and to keep up with all the posts and feedback. John really doesn’t see the value in social media and asks Lisa to provide some evidence of why this new position is needed.

Donna, his new customer success manager, immediately reaches out to John and his third-party vendors to ensure all data is captured within John’s dashboard. Within a week, John is up and running. Donna has already shown him where to log in, the different reports and information he can access and how he can use this platform to make better business decisions.

Manage All Your Digital VendorsMonday morning, two days before end of month, John begins to review the same information in his dashboard that he had to manually pull from a hundred different reports during the previous month. These new reports are excellent for tracking lead conversion as well as determining which third-party lead providers are producing the most sales for ABC Motors.

After lunch, John calls the Internet manager, Steve, into his office. John noticed earlier on ActivDashboard that their financing form conversion was low and says “We have to start testing and optimizing these forms so we can get a good return on this tool. Get with our form provider about this today.”

John also shows Steve the Website analytics and a few other reports available to them. Steve is impressed with the amount of detailed information within this new tool. He asks John if he can have a login to the dashboard as well. John responds, “Of course! I should probably get all of our managers a login. Let me call Donna to get everyone set up right away.”

Manage Your ReputationAround closing time, George, the parts manager, calls John about a customer complaint. The customer was not satisfied with the time it took for the part to arrive at the store. John took care of the customer, and then remembered there is a reputation management section of the dashboard which could identify any trending issues with store personnel or internal processes. John also wanted to know what consumers are saying about his dealership on review sites and how the store is being rated.

Different Strokes for Different FolksAfter John gets off the phone with Donna, Roberto, his service manager, stops by John’s office to discuss this month’s service report. Instead of discussing the old Excel reports, John gives Roberto a login for his own personalized ActivDashboard account. This way, he’s able to pull the reports specifically for his department and analyze them throughout the month to ensure everything is in working order. Roberto’s reports are more specific and detailed to his department than John’s. John knows the system was built to equip all levels of management with the data they need to make better business decisions, and hopes Roberto can utilize this tool to drive more appointments to his service bays.

Benchmark Your PerformanceNow that John has a ton of information at his fingertips about his store, he wants to know how they are doing in comparison to other stores that carry the same brand and are in his region. Within the dashboard’s benchmarking tab, John has the ability to compare his store to others, either by geographical region or by brand. John runs a report that shows how many unique visitors his Website receives compared to other stores with the same brand throughout the country. He also compares how many Website or digital advertising leads he has been receiving to that of other stores in his geographical region.

Knowing that the average dealership in his region receives 10 percent more leads from their digital advertising each month than John does, John now has a goal to strive for and works out a plan to increase lead conversion. He also reviews some of the tips available to him through the dashboard that outline the next steps he can take toward reaching his goal.

Empowerment for SuccessNext week, John plans to take a trip to Hawaii with his family. Thanks to the mobile ActivDashboard App, John can keep track of all his dealership’s activities and maintain accountability of his employees while he is out of the office. He will know instantly if any problems arise while he is away.

Because of John’s ability to track his entire digital business within one platform, John’s Website form conversions are on the rise, the new social media specialist has increased their social media leads by 30 percent, John has set three benchmarking goals that the store should reach by the end of the quarter, and the management team at ABC Motors is empowered to make better business decisions with minimal oversight from John. ActivDashboard makes John’s job much more simple and stress-free, because he has confidence in the information he is using. ABC motors is now on its way to being the most successful dealership in the region.

See ActivDashboard in Action and Start Making Better Business Decisions.

Call 888.972.0477

John found that, over the past two months, their reputation had been taking a hit due to poor parts reviews. They had recently hired George as the new parts manager, and his name had been mentioned in a few of the not-so-good reviews. John immediately calls George in to go over these reviews and discuss what can be done to improve their in-house processes and online reputation. John points out the reviews within ActivDashboard that say George’s customer service skills need some work and many parts orders were delayed. John suggests that George complete some training available within the dashboard from industry leaders regarding best methods for dealing with customers and time management. John will follow up with George in a month to discuss his progress.

Accountability.Reputation.

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14 autosuccessonline.com

MarshBuice sales & training solution

Marsh Buice is the sales manager of Mark Dodge, Chrysler, Jeep. He can be contacted at 866.535.5006, or by e-mail at mbuice@autosuccessonline.com.

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pick a side

“It’s OK to be down; it’s not OK to be out. Confusion fights to keep you off track; clarity nudges you back on.”

Legendary Green Bay Packers Coach Vince Lombardi used to say, “It’s hard to be aggressive when you are confused.” It’s no secret that our industry can be chaotic. In the middle of a product demonstration the vehicle’s check engine light comes on, breaking the rhythm of your sale. Last night, you were the David Copperfield of the blacktop, magically transforming a reluctant shopper into a buyer, saving not only the day, but also your month; this morning, it’s a rollback. While your thin-iced customers are barely signing in finance, you’re broken down at the gas station in their new car; the hard work of your deal has likely vaporized. Mr. and Mrs. Jekyll turned into The Hydes, abruptly canceling negotiations and demanding their keys back after you show them what their trade is worth. From coast to coast, we’ve all got familiar stories like these that could literally fill volumes.

In our business, every day is Night at the Improv; without a moment’s notice, we have to be ready and adaptive for anything. Those who excel in sales have clarity, even in the midst of chaos. When things go awry, unsuccessful sales consultants ask, “Why? Why did this happen to me?” Successful sales consultants, on the other hand, ask, “What?” Instead of “whying” in bed at night and “whying” themselves to sleep, those who are successful ask, “What’s my next move? What am I going to do with the next up, lead or phone call? What could I do better the next time I’m faced with this same situation?”

Confusion sets in when you have no clarity and no clear direction — and when you have no clear direction, you’ll net victim-like results. Victims of the blacktop receive the scraps of success called “mediocrity”; they’re so busy defending the reasons of why it’s no fault of their own that they’re walking away with break-even draw checks, whereas culprits of success have clearly defined their daily, monthly, yearly and beyond goals. Because of their clarity, they can then work aggressively in pursuing their goals. In spite of the delays, setbacks and adversities, they continue to push to the front of the line of excellence.

We’re all leaders — whether it be of one or many. Great leaders have the ability to silence the externals and crank up the internals. With a few ticks left in the game, quarterbacks move their team methodically down the field to score; with the seconds of life slipping away, doctors work to stabilize the patient; facing severe wind shear, pilots maneuver their flaps and land hundreds safely. When you’re facing an abysmal month, draw on the internal resources of clarity to help see you through. The truth is, we’ve all been in dire situations — teams were close, yet still lost; doctors worked furiously but reached sad outcomes; pilots maneuvered, yet Mother Nature had other ideas. You’ve pulled some months out, while other months you simply ran out of time — and that’s OK. It’s OK to be down; it’s not ok to be out. Confusion fights to keep you off track; clarity nudges you back on.

No matter the circumstances, don’t let the chaos of the moment or the calamities of the uncontrollable ever interfere with your clarity. Clarity of who you are and what you are capable of draws comfort out of the chaos. Those tagged with nerves of steel and seem to have ice water running through their veins are people who have clarity.

Pick a side. Clarity crowns champions; confusion enshrines cowards. The choice is yours. I’ll see you next time on the blacktop.

http://www.interactive360.com

16 autosuccessonline.com

Few auto dealers have the time and resources to become experts in all the strategies and technologies of Internet sales and digital marketing, as these are changing constantly. Yet the growing importance of online channels means getting the right guidance and advice about the best way to profit from the Internet in your dealership is crucial. Hiring an outside Internet sales trainer or digital marketing consultant may well help you get better results, but it’s important to make the right choice.

Being the owner of several successful car dealerships and having assisted many other dealerships in their quest to be “the best” over the past 18 years, I believe there are five key attributes you should look for before taking on an Internet sales trainer or digital marketing consultant:1. previous experience: What have they done before and what have they done lately?When you hire any kind of consultant, you are paying for their past experience.

That experience can come through the work they have done as a consultant/trainer, or it may be from previous roles. That’s why you want to know as much as possible about what they have done — who they have worked with, what projects they have completed and what results they have obtained. For example, you should ask how many Internet sales departments they have been responsible for creating or managing.

Ask about their involvement in setting up the processes and technologies that help dealers in the sales, parts and service areas of their business. Find out about the successes and the failures, as each of these can help them get better results for you.

The more experience the person has, the more valuable they are to you. As well as their consultancy or training experience, look for someone who has a background in sales and management in dealerships before they became a trainer or consultant. Someone who has spent several months as a trainer or consultant, working in many different dealerships, will have built up expertise that would take much

longer working in just one business. But having practical experience in sales and management themselves gives them a better understanding and perspective of the issues involved. The more experience they bring to the process, the greater the chances of them being able to help your dealership get better results.

To give you an example from my own perspective, I installed one of the first used car dealership business development centers (BDCs) in the country back in 1999. Over the 12 years since I was initially involved in that install, I know what processes we used to be successful, and have identified the common elements in design and implementation which contributed to its success. Equally, I have identified the common elements in its processes, design, set up, staffing, location and management that failed, and have drawn important lessons from that. Therefore, when a dealership hires me today to set up a BDC, they would benefit from all that knowledge and experience I have built up.

So, in hiring someone to assist with your Internet sales and digital marketing strategies, you want to find someone who has extensive experience working with a wide range of dealerships around the country. The broader their experience, the more likely they are to be familiar with the issues in your dealership. Someone who has broad experience is less likely to implement processes in a fixed, robotic way. The issues that arise in every dealership are different, and you need advice that is flexible enough to find the right solutions for your situation. An experienced trainer or consultant will find the best way to achieve your objectives, and will not just rely on one fixed way to get things done.

2. persuasion and influence skills: Can they help you get the best out of your team?One of the most powerful benefits an outside Internet sales trainer or digital marketing consultant can bring to your dealership is the ability to convince your existing team to make changes. That means being able to convince them that the changes introduced as a result of this process will benefit them as well as the dealership.

A trainer or consultant who can do that will be passionate about their message. This will resonate with your team so that they also become enthusiastic about doing things differently. You want someone who can communicate effectively with a range of different people in your dealership. They need to be able to persuade the team that the changes they are bringing in are not a threat, but can help them do their job more effectively as well as serving customers better. They need to be able to explain things in a way that motivates people to take action and do what needs to be done.

You will learn a lot about the trainer or consultant’s communication skills in your discussions with them. They have to be able to persuade you that they can persuade the team.

But make sure you check out their skills in other ways — watch their videos and read their articles. How effective are they at getting their message across? Will it work with your team? Ask for copies of their training materials and have them explain something to you the way they would do so with one of your marketing managers, sales managers or salespeople. This will help you decide if they have the communication skills needed to deliver change in your dealership.

Next issue, we’ll look at the remaining keys in choosing an Internet sales trainer or digital marketing consultant, along with one last secret to make this path successful for your dealership.

Tracy Myers, C.M.D. is a noted small business marketing and branding solutions specialist, best-selling author, speaker, car dealership owner and entrepreneur. He can be contacted at

866.860.0029, or by e-mail at tmyers@autosuccessonline.com.

five keys to choosing the right digital marketing consultant for your dealership

TracyMyers leadership solution part 1

thenextup.com 714.408.4222

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18 autosuccessonline.com

DealerRater.com/CDP • 800.266.9455GET CERTIFIED TODAY

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Competitive AdvantageCertified Dealers had a 23% greater increase in sales compared to non-certified dealers.

a mobile strategy is not just for the dealership - it’s for you, too

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eeRobert Wiesman is an automotive professional

at Massey Hyundai, in Hagerstown, MD. Hecan be contacted at 866.667.0919, or by e-mail

at rwiesman@autosuccessonline.com.

It’s no secret that smartphones have become a part of everyone’s daily lives — and when I say everyone, I mean everyone. From senior citizens to first graders, it seems that everyone is rocking the smartphone.

I know what you dealer principals, GMs and other industry “big wigs” are saying: “We know, we know, we need to have a mobile strategy.” Well, you’re right. But this article isn’t for you. This is for the automotive professional who is on the front line, hopefully building his or her business.

Sales pros, the smartphone is a major step towards running your own business — towards being a entrepreneur and a showroom executive.

Some quick mobile/smartphone statistics:• Mobile now accounts for 10 percent of Internet usage worldwide. This

has more than doubled over last the past 18 months.• 7.96 percent of all Web traffic in the U.S. is mobile traffic.• 39 percent of instances where a consumer walks out of a store without

buying were influenced by smartphones.• According to Hubspot, 91 percent of mobile Internet access is for

social activities, versus 79 percent on desktops. U.S. consumers spend almost one in every 10 eCommerce dollars using a mobile device.

• More than a third of Facebook’s users access Facebook Mobile; 50 percent of Twitter’s users use Twitter Mobile.

• QR code scans increased 300 percent in 2011, compared to 2010.• There was 103 percent growth in Website traffic from smartphones

from 2011 to 2012.

This trend is venturing over to car buying. People aren’t just using their phones to login to Facebook or check their e-mails. eBay Motors, a division of eBay Inc., did a study of millennials (the younger generation), and found that more than a third used their mobile phone to help research pricing and other factors while on dealer blacktops. That’s compared to 19 percent for other age categories.

So what does this have to do with being an automotive professional? Well, people buy from people. These days, you need to somehow get in front of your prospective buyer. There are a few ways to do that:1. Advertise to get new prospects (online, television, radio, etc.)2. Keep a good relationship with customers to build repeat business.3. Get existing customers to refer you to their friends, families, co-

workers, etc.

The cheapest way of getting extra business is by building up a good relationship, providing great service and showing your customers that you care. The question is, how do you get in front of them? Well, if you have done a good job of building relationships, then your existing customers will refer you to their friends. Usually, they hand out a card, or maybe its just word of mouth and the prospect is left to look up your number.

Well, here’s an idea: Get a premium, mobile-friendly Website that works on any phone or device that can access the Internet. On the business cards you hand out, have a QR code that someone can scan that links them through to a video of you right there on your mobile Website.

It can have tap-to-call and tap-to-e-mail feature, as well as a map of where the dealership is so they know how to find you. It can be loaded with hundreds of photos of your customers, along with video testimonials from existing customers telling prospects what it’s like dealing with you and why they would recommend you. It can also have video walk arounds of you doing a review on a number of cars and a contact form so that people can send you their details and comments.

They can share your site to Facebook, Twitter and or e-mail it to a friend — which is much better then sending a business card. It can have other photos albums of new cars with videos of those cars and their specs. The ideas are endless of what you can do with a mobile Website. When you think about it, who doesn’t have a phone these days? With the younger generation, they are all over it with Facebook, Instagram, Twitter, etc. That’s where you want to be. You want to be in front of their eyeballs. Your premium mobile Website is like an interactive business card that you can keep updating and getting circulated.

To see what a premium mobile Website looks like, you can check out mine at http://m.yourhyundaiguy.com. Take a look, get some ideas and then, with your own imagination added to it, you will have the best marketing tool to crush it. Not all mobile Websites are the same, just like not all cars are the same. With mobile, you want something that is gong to work on all devices and is designed with the latest mobile technology.

Mobile is your next big move as a “showroom executive.” If you do not already have your Website up, you need to knock that out before you kick your mobile strategy into high gear.

888.431.6928 | sales@eleadcrm.com | www.elead-crm.com© Data Software Services, L.L.C. 2010-13

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20 autosuccessonline.com

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eeJimmy Vee and Travis Miller are founders of The Rich Dealers Institute and the

authors of Gravitational Marketing: The Science of Attracting Customers and Invasion of the Profit Snatchers. They can be contacted at 866.867.9618, or by

e-mail at jt@autosuccessonline.com.

the four ways tobring your dealership back to life

Is your dealership a bit zombified — deprived of energy or vitality? What about you personally? Are you worn-out? Is the life being slowly drained out of you, one blood-sucking vendor at a time? Time to fight back! Regain the control you need to have fun in the car business again.

Over the past 15 years, we’ve identified four core areas that require intense focus for any dealership looking to avoid a “zombified” existence: leadership, culture, process and marketing. By taking control in these areas, you will gain the clarity you need to breathe new life into your dealership.

Last month we discussed leadership and culture, and now we’re digging into the final two essentials, process and marketing. Small changes in each area compound to create big results at the end — it’s an exponential effect. So dig deep and fight the zombie apocalypse at your dealership today.

core essential no. 3: processMany dealerships have no processes, or even worse, multiple processes that are in shambles. You must have strong, solid processes in order to operate your business at its most profitable and enjoyable level. As you know, there are plenty of process people, products and services available for your dealership. Instead, we recommend you follow a proven process to avoid wasting time and money on things that just don’t work, and to avoid the frustration and loss that come along with that trial and error.

Many dealers look for marketing gimmicks, Internet thingamajigs and the latest high-tech savior to solve their process problems. In reality, these are just distractions. Get back to the basics. Go back to thinking about the car business as a people business, where you sincerely care about helping your customers.

Focus on your customers and their problems, and you will begin to experience significant results. You should start every customer interaction by trying to uncover their problem.

Also, as you refine your processes, remember that process improvement that’s devoid of

leadership, and not tied into your

culture, is practically meaningless. People need to understand why they are doing what they are doing. When they understand “the why,” the process to go along with it will be better received. Assess and refine your processes and clearly communicate so everyone on your team can embrace “the why,” and you will soon experience stability, predictability and peace of mind — along with increased profits.

take the process Quiz:• Are your processes congruent with your culture?• Does your team know “the why” behind your processes?

core essential no. 4: marketingEffective marketing is the quickest path to selling prospects and clients who are properly positioned to be sold — without actually having to sell them. That’s why dealers come to us looking for more customers. We provide the process they need to take control of the traffic flow into their dealership and speak directly to their ideal prospects — high-profit customers who are drawn to their store as if by a natural force.

So how do you go about attracting these model customers? Before anybody will buy a car from you, there is a basic question that must be answered: “Why should I buy from you?”

Sounds simple, right? But most dealership marketing fails to answer this simple little question. Realize that all dealers say they have low prices, good selection and great service. Well, keep this in mind: Same is lame. If you look the same and sound the same as the other dealers around you, then your results are probably the same, too — lame. Most dealers are selling a lot fewer cars than they were a few years ago. So why copy them?

Instead, you should start thinking about what makes you different and start communicating that to your prospects. Begin by developing a positioning statement that guides your business and dealership culture during the marketing process. This will naturally attract customers to you — it’s the hook in everything you do. This is just one way to start the positive flow of traffic to your store.

Today, there are so many ways to make money in the car business without competing on price. Focus your marketing on why you are different and people will gravitate to your store in droves. Tell the right story and soon you will have mastered this core essential.

take the marketing Quiz:• Do you feel you have all the traffic you need to hit your sales goals?• Do you have a consistent method for reliably driving a steady stream of qualified leads to your store every day, week, month and year?• Do you track and measure the effectiveness of all your ad/lead sources?

By leveraging proven systems and sound principles, you will soon gain control of the core essentials — leadership, culture, process and marketing — and your results will get better over time. Taking control in these four areas provides stability, predictability and peace of mind. Your life and business can, and should, be ESP — Enjoyable, Simple and Prosperous.

For the eBook, 4 Ways To Bring Your Dealership Back To Life, go to www.ZombieAwaken.com, or contact us at the address below.

JimmyVee & TravisMiller leadership solution part 2

http://www.lead2show.com

22 autosuccessonline.com

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BudAbraham leadership solution

buffer swirls in the paint:a problem confronting dealers are

swirls in the paint finish after detailing

Bud Abraham is the founder and president of Detail Plus Systems. He can becontacted at 866.205.8499, or by e-mail at babraham@autosuccessonline.com.

The reason for buffer swirls in paint finishes is simple: lack of knowledge on the part of the detailer, and lack of proper tools, pads and compounds to do the work. The tools and procedures for paint finishing are probably the most misunderstood aspect of detailing.

polishing is an “action”All paint surfaces have minute imperfections that are mostly invisible to the naked eye. It is difficult to see these individually, but together they work to make the surface dull. To get the surface shiny, these imperfections must be removed or reduced as much as possible.

compoundsDetailers should use a compound to eliminate paint finish problems. All compounds have abrasives in them. The abrasives range from coarse to ultra fine. If the detailer uses too aggressive a compound, they will create more damage than they will correct.

polishesPolishes, on the other hand, are formulated with mild abrasives that will remove swirls put in by a cutting pad and compound. When removing imperfection in a paint finish, you will actually remove a small amount of film.

abrasivesMany detailers are ignorant of the different types of abrasives and are often afraid to use them, or use them improperly. Because of ignorance, they damage the paint and do not properly correct the problem. If a paint finish becomes heavily oxidized or dulled, more

abrasive compounds are required which will, of course, remove some of the paint film. This, however, is the only alternative when the paint is in a poor condition. Compounds or polishes are used for cleaning the surface, in a sense, and smoothing it out. The polish can be a first step on a good finish. It should be used as a swirl remover after the compound to provide a smooth finish and maximum gloss.

the toolsCompounds and polishes can be applied with either the traditional rotary buffer or the newer dual action buffer for maximum results. Care has to be taken when using a heavy compound with a rotary buffer, because it is possible to cut right through the film.

wax or paint sealantA true wax or paint sealant should have absolutely no abrasives in the product. They are not formulated to remove scratches, imperfections or dirt and grime. They can help to fill in those micro-scratches in a paint surface, but they cannot remove them.

That is often a problem for dealers because the detailer will use a compound and put swirls in the paint and, instead of using a polish/swirl remover to eliminate the swirls, they jump right to the wax/sealant and fill the swirls. After a few washes, the swirls are back. A wax or paint sealant is a protective coating that is applied on a paint finish that has been compounded. These products seal the paint and protect it from the damaging effects of the environment.

Many waxes will contain natural carnauba. While pure carnauba is an excellent natural wax, modern technology has been able to duplicate carnauba wax, called microcrystalline wax, and it is actually more durable than pure carnauba.

The best paint sealants will contain “amino functional silicones” which have a cross-linking molecule that will bond to the finish. They can also contain some wax. They last longer than waxes and are easier to apply and remove. Many detailers prefer sealants to wax for these reasons.

Never believe the chemical companies when they claim you will “never wax your car again” or they “guarantee the finish for two or three years.” In reality, they do not last more than four to six months without a re-application. Of course, dealers make a great deal of extra revenue selling “guaranteed” protection packages. Just know what you are selling.

Hi, my name is Mark Tewart. I may have had the honor of coming into contact with you through my seminars, association meetings, NADA or NIADA conventions, articles in AutoSuccess or other magazines, my old Automotive Satellite Training Network shows or you may have read my best-selling book How To Be A Sales Superstar.

Whether you know me or not, you may be wondering what allows me to be able to make such an outrageous claim. The answer is simple: If a client follows my no gimmick, no BS, full-proof and proven methods, the results are as predictable as the sun coming up every day. That may sound arrogant to some of you, but to me and my select clients it’s just reality.

Every year I have many dealers who ask me to work with them to help improve their sales and pro�ts. I reject most of them. I only choose a few each year to work with on such a large scale. There are a few reasons why I carefully hand pick who to work with.

The �rst reason is that it’s easy for you to say you want to improve but most people don’t want to do the things necessary to make it happen. This isn’t some magic-button, pie-in-sky fad. These are real-world and proven methods for massive pro�t improvements. It takes hard work and lots of commitment.

The second reason for me being picky about who I work with on these projects is that frankly I don’t have the time. To create the massive results that you and I are looking for requires a great deal of my time and e�ort. Because of my time restraints, I refuse to spend time and e�ort with uncommitted dealers. I only align myself with passionate people committed to winning.

The third and �nal reason for me being selective is my reputation. I can’t write ads like this and make such incredible guarantees unless I can bring the results. My reputation is beyond solid.

By the way, the $250,000 bottom line improvement is just an example. I have had some dealers increase their bottom lines by more than $1,000,000. Look at it this way; I don’t take $10,000 guarantees lightly. I put my money where my mouth is.

You Are GUARANTEED to Increase YourBottom Line in 1 Year by $250,000 or More...

or I’ll Pay You $10,000!

Mark Tewart,President of Tewart Enterprises, Inc.

Author of the Best-Seller‘How to be a Sales Superstar’

Call my 24 hour Dealership Success Hotline to receive your “Dealership Success Check List” –Call Now at 888 612-5884 Ext. 90001 or Go to www.dealershipsuccess.com

***Dealers or General Managers Only***Sincerly, Mark Tewart Info@tewart.com | 888 2 TEWART - (888 283 9278)

P.S. There is one very simple thing most dealers aren’t doing that you can do to unlock an additional 7 �gures worth of pro�t with no extra risk in the next 5 years. I know it sounds too good to be true, but you can see for yourself. Call my 24/7 Dealership Success Hotline at 888.612.5884Ext. 90001 or Go to www.dealershipsuccess.com

24 autosuccessonline.com

In the February 2013 issue of AutoSuccess, we discussed the importance of redefining your competition and the need for understanding online buying behaviors. This is especially critical considering how, more than 50 percent of the time, consumers will buy a different brand than their initial quote request/lead, and how often they swap new for used, or used for new, near the very end of the online car buying process.

Let’s step back for a moment and compare the in-dealership experience versus the Internet experience when it comes to customers and the salespeople who service them.

Before the advent of the Internet and the vehicle transparency it offers, consumers were required to visit a dealership to learn about a vehicle and its features, advantages, benefits and pricing. Good salespeople would perform a thorough product walk-around to ensure the customer understood how great the brand was. This point was further reinforced by in-store banners, trophies, brochures, signage and article reprints.

It was the dealership’s responsibility to convince consumers who were considering another brand that this brand was the best brand for them.

Beyond that, a good salesperson would provide a customer with options — in this case, other models or trim levels in line with a person’s key buying motivations — while walking the lot to showcase the store’s available inventory (new, used and/or CPO), highlighting a multitude of models, trim levels, options and colors.

By sheer virtue of being present on a lot or in a showroom, consumers were constantly being “sold” on the brand, with every model displayed in all its glory and with every salesperson actively communicating to customers that this was the perfect time and place to buy the perfect vehicle. If a line of communication and trust was successfully built between the salesperson and the customer, there was a good chance “be backs” would indeed be back to buy their car.

Now let’s focus on the traditional approach to third-party Internet leads.

The perception? Once a quote request is submitted, online consumers have already made up their minds about the make and model they’re interested in buying.

The perception is that they’ve done their homework online, researching price, reviews, photos and videos ahead of time. They’ve compared makes, models and trim levels and have settled on a specific vehicle. They’re far down in the traditional Internet buying funnel and what’s left is for the dealership to convince the customer why they should “buy from me.”

The reality? The Internet buying funnel we once knew no longer exists.

Today, numerous studies have shown that consumers consider more brands deeper and deeper into the purchase process, and the majority are still undecided as to which brand to buy up until the last week before they actually sign on the line.

There are many factors that contribute to this behavior, including brand/product parity, the shift in demographics among in-market consumers and social media’s significant influence on car buyers. But the reality is that more than 50 percent of consumers who submit a quote request (lead) ultimately buy a different brand. That’s a staggering statistic.

Does this mean that Internet customers aren’t ready to buy? No.Does this mean that Internet customers are still doing research high in the purchase funnel? No.What this means is that they’re still shopping, and you are one of the brands/dealers they’re considering.

Internet consumers can’t physically feel, touch and see the different models and trims you offer. They don’t have the opportunity to spend a few hours with you while you explain the benefits of your brand, your store and your vehicles. You can’t give them an actual product walk-around (although offering a link to a video walk-around is a great place to start). They didn’t physically drive onto your lot to see rows and rows of quality inventory on display.

The best approach is for dealers to treat today’s Internet customers like they treated yesterday’s in-store customers — by reinforcing the brand in all e-mail and phone communications, by highlighting special industry awards the brand has garnered, by speaking to a vehicle’s key technology highlights, by outlining special incentives and then by delving into the “Why Buy from Me” story.

Below are a few simple steps you can follow to get back to the basics with your Internet customers:1. Reinforce your brand.2. Communicate the “Why buy from Me” story.3. Respond to their vehicle of interest.4. Show another trim, model or CPO that is approximately 10 percent lower in price.5. Tell them how many other used/CPO vehicles are on the lot (and some of the brands you offer

besides your own).

Steps 2, 3 and 4 have been defined as “best practices” in managing Internet leads (along with a rapid response). But what a dealer really needs to do is to bookend the process with Steps 1 and 5. No matter how you accomplish Steps 2, 3 and 4, if the consumer is not 100 percent ready to buy your brand, you risk losing the sale. And while some OEM reps probably won’t like the approach of Step 5, it’s important to ensure your customers know the depth of your used car inventory, whether that’s your brand or others.

The bottom line: Treat every lead as if he/she just walked into your showroom and you’ll ultimately get more consumers to actually walk into your showroom.

ScottPechstein sales & training solution

the perception vs. the reality of internet leads

Scott Pechstein is the vice president of sales at Autobytel. He can be contactedat 866.423.9019, or by e-mail at spechstein@autosuccessonline.com. p

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

three best practices to manage used vehicles as investments

DalePollak leadership solution

I’ve long advocated that dealers manage their used vehicles as investments — their No. 1 goal should be to maximize their return on investment (ROI) within the shortest amount of time and the least amount of risk.

This investment-driven retailing strategy is harder for some dealers to accept (and in some cases, acknowledge) than others. The reason: Dealers are not accustomed to managing their used vehicle inventories with the degree of discipline and rationality that true-blue investment managers would apply to their client portfolios.

There are two clear examples where dealers seem to lose their investment perspective:1. “Cars are cheap now, so I’ll stock up.” This often happens in the spring and early summer. And, just as often, this speculative move leads to aged cars and less-than-expected gross profits.

2. “I can’t replace the car for what I’ve got into it. I’m better off holding on to it.” I hear this from dealers all the time — and mostly when they’re explaining why they’ve let a car age beyond its most profit-productive retail life.

Neither of these scenarios happens with regularity for dealers who manage their used vehicles as investments.

Here are three best practices dealers use to manage their used vehicles as investments: 1. Follow a firm 45-day investment time horizon. My financial advisor believes that retirement-oriented investments require at least a three-year minimum horizon; anything less, he believes, invites fear- or greed-driven speculation. In used vehicles, the opposite is true — a short-but-firm retail time horizon of 45 days is the maximum window today’s market allows for used vehicles. By definition, this investment time period focuses a dealer on the principal investment goal of maximizing ROI in the least amount of time and risk.

2. Maintain at least half your used vehicles below 30 days of age. This inventory age standard ensures dealers focus their attention on cars when they’re fresh and stand to deliver

the best ROI and profitability potential. For most dealers, the difference between the gross profit averages for fresh cars runs five to 10 percent higher than the average for older-age units. This is why investment-minded dealers seek to consistently capitalize on retailing fresh units fast, rather than “holding out” for a gross profit that probably won’t materialize.

3. Align pricing to the market and each car’s ROI/profitability potential. Investment-minded used vehicle pricing is not, nor has it ever been, about pricing vehicles below the market from Day One to sell cars quickly and reinvest the proceeds in another unit. Such an approach would unnecessarily undermine the profitability potential in every car. Investment-minded dealers know if/when the market suggests a car merits go-for-gross pricing right away. They also monitor the market to make precise pricing adjustments as a vehicle ages to balance a unit’s waning market appeal and its remaining ROI/profitability potential.

There’s no question these investment-focused best practices require a greater deal of pricing and process discipline. However, as my friend and used vehicle consultant Tommy Gibbs likes to say, “you can either suffer the pain of discipline or the pain of regret.”

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talented PeoPle = dealershiP successIn today’s extremely competitive retail automotive market, what is the most critical factor in determining your level of success? The obvious answer is, “Your People!” But with all the competition for the limited number of truly talented automotive professionals, how do you effectively build the right team?

recruiting oPtionsNewspaper and internet advertising and the “who do we know” process have been the usual methods. All of these can identify candidates, but they are time consuming and are not likely to reach the most desired professionals. Why base your success solely on these “hit or miss methods?

Fortunately, there is a more targeted option. Auto Dealer Talent specializes in identifying and recruiting the most talented automotive pros in the industry. We have been assisting dealers hire and retain the best available candidates to maximize their results and fit their organizations’ cultures since 1989.

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I have known Dan for a number of years. He has always provided me with a number of opportunities to meet with great candidates. I’ve always felt like he had my best interest in mind. He truly wants to find a great fit rather just placing a candidate for the sake of placing someone.

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I started using Auto Dealer Talent for several projects at our dealerships in Minneapolis, MN and Madison, WI. I have been very pleased with their professionalism and the quality of candidates presented.

ric saatzer, area Vice President upper MidwestPenske automotive groupI live over a thousand miles from Dan, yet he always

delivers quality candidates from my market, as well as, other markets. Distance is not a factor. Dan’s performance and character are the reasons I do business with him. I would recommend him to my closest friends (just not my closest competitors).

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28 autosuccessonline.com

THEDEALER PANEL

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AutoSuccess & DealerELITE are both designed to keep the view from the sales floor front and center in everything we do, and we've come up with an exciting new way to accomplish this.

Our new Dealer Panel gives voice to dealers, GMs and sales professionals to share their experiences — sales techniques, new technologies and ways to motivate staff — giving our readers the benefit of their experiences.

see page 30

There is a plague spreading among car dealerships. I call this affliction “deal’itis.” In the last month, I have been in many dealerships working side by side with managers and salespeople. I began to quickly notice the results of this sickness. Those results are things such as lower sales, low closing ratios, low gross profits and low customer satisfaction.

Just like a good doctor should do, I began to look for the symptoms of this sickness and what could be causing this illness. With a complete diagnosis, I knew it would be much easier to hone in on a possible cure.

In my quest for a diagnosis, I noticed a whole new breed of managers. This new breed of managers did not have any commonality in age, experience or anything other than some bad habits. These bad habits had created a wrongful mindset that now had manifested into a full-blown misguided belief system that caused and perpetuated the sickness. The bad habits and belief system formed very bad cases of deal’itis.

Here is what I witnessed: salespeople buying into a fear-based, scarcity mentality and then inflicting willing managers with the same. I witnessed salespeople who had worked leads from organic sources, third-party sources or just plain walk-ins. These leads were worked through e-mail, phone or in person and, because of a lack of training, process and proper understanding, had morphed into deals worked with potential customers as victims. You see, deals are based upon numbers, and numbers alone do not take into consideration hearts and minds. These deals are not emotional, flexible and rarely contain value or salesmanship.

Deals are worked to the bottom of profit potential quickly, and the goal becomes to see who can give things away the fastest. Little is done to establish what the customers keywords are that describe what they truly desire and what would be their HFG — Hope for Gain. Little to nothing is done to establish an apple-to-oranges selling process that gives customers possible alternatives and ideas that might satisfy their greed, dreams or anything else. Salesmanship is jettisoned and salespeople quickly resemble a lower form of McDonald’s order takers.

Deals are not offered an emotional presentation based upon a real show. Deals are not given test drives, let alone 20-mile test drives to establish rapport, where the leverage of persuasion is used utilizing the skill of reciprocation/obligation. Deals are not given three options of vehicles, packages or new-to-used comparisons. Deals are not directed to their trade-ins first to create a better rapport, deeper understanding, investigation and role reversal. There is no time for that today. Deals must be sold and done.

Get ready for the truth: Deals are as fictitious as fairy dust. Deals do not exist. They never have and they never will. People still buy from people, and very few just buy deals alone. If you are a manager and you allow salespeople to skip all forms of selling, excitement, persuasion, masterful presentations, demo drives and anything that involves skill and talent, then shame on you. Stop being great at dealer track and start being great at leading your team to be salespeople, not “deal workers.”

Sell the car and help the people, instead of trying to sell deals. It does not work. This affliction is not about new school or old school, but really about no school. Managers: Change your faulty belief system. Retrain yourself and retrain your team. This is not happening to you; you are allowing this to happen. Get out from behind your desk. You are not chained there. You are and should always be the top salesperson. Greet the customers in the front of the deal and not the end when you are working deals.

The late, great blues guitarist Luther Allison said it best, “Leave the ego, love the people, play the music.” Take a cue from Mr. Allison and put a little music into your selling soul.

For a free Special Report “10 Things Successful Managers Do,” e-mail me at the address below with “Successful Managers” in the subject line.

MarkTewart leadership solution

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Mark Tewart is the president of Tewart Enterprises, and the author of the best seller, How To Be A Sales Superstar. He can be contacted at 866.429.6844, or

by e-mail at mtewart@autosuccessonline.com.

automotive sales management training:sell the car, not the deal

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AndrewDiFeoTony Provost

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Brian BenstockChris Saraceno

DEALER PANEL

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For the past two months on the AutoSuccess and DealerELITE.net Dealer’s Panel, we’ve looked at what goes into our panel’s hiring decisions and what makes up their training programs. In this month’s final installment on this topic, we’ll examine how their dealerships handle changing technology and changing customer behavior. We spoke with Chris Saraceno, vice president and partner of Kelly Automotive Group in Pennsylvania and Florida; Brian Benstock, vice president and general manager of Paragon Honda and Acura in New York City; Tony Provost, president and dealer principal for Nissan of Bourne in Massachusetts; and Andrew DiFeo, general manager of Hyundai of St. Augustine in Florida.

autosuccess: how has technology changed the consumer’s behavior, and what’s been the most challenging aspect of this for you and your people?brian benstock: Consumers have embraced technology as a tool to help them make purchase decisions. This is not different than any other industry. I believe one of the toughest aspects for our team is to put themselves in the customer’s place to ensure that customers are getting the transparency that the industry now can offer. Often, consumers have researched details about the car they are purchasing, and I believe that, as a salesperson, it’s important to understand what the customers needs are. If you understand how a customer has used technology, and let them know you embrace it, the transaction is much smoother.  

andrew difeo: The consumer is a lot more confident because they have all this information in front of them. We can contact them on their time in the method they want, instead of us trying to force them to respond, saying, “You must reply to this e-mail,” or, “You must respond to this phone call.” It has made it less confrontational, because now everyone’s on the same level playing field with the same information — with the caveat that sometimes the information isn’t the same. Go to 10 different Websites and you’ll get 10 different invoice prices for a new or pre-owned car, 10 different finance packages based on your credit score, and so on. So, sometimes the inconsistency of the information makes it difficult for us. We’re transparent; I’ll send someone the invoice on the car, plus my accounting cost, and they still might not believe me.

chris saraceno: The biggest change for us has been with used vehicles. Customers can now go to AutoTrader.com or Cars.com, and can look at vehicles in a 10-, 50- or 100-mile radius and see the pricing. When we look at the day’s supply of a vehicle, and we price it on market value, we can see an immediate bump in traffic walking in the door, phone calls and Internet leads. With TV, radio and newspaper, this was never the case. The other big change we’ve seen is the online customer ratings. As soon as you do something good or bad, people post it. Everything is out there today. Whatever you do bad is magnified tenfold, and whatever you do good is posted, but not quite as quickly.

tony provost: The most challenging part is that people know what they want 90 percent of the time before they get here. You’ve got to listen to what they say, but that doesn’t necessarily mean that what they want still fits in their budget. We have people come in and say they want to

see a specific car; we always show them that car, along with the next model down. Therefore, we can save face in the deal, instead of getting down to the point where it comes down to the money, and the car they are looking at cost more than they want to spend.

We’ll give them five or six payments with the model up and five or six payments with the model down. Works like a charm.

as: what’s the most exciting technology you’ve put in place at your dealership, or have seen and want to work with?bb: We have been very happy with the results of our mobile app. This is high-value item for the customer and it is great for us, as it allows us a way to communicate with the customers quickly. For example, if a snowstorm is coming, we can run a special on tires and push this to all users of the app within minutes. We also are excited about many of the advertising technologies that are becoming available within Facebook and Google. Ensuring we’re delivering the right message at the right time to our customers has proved to be extremely successful for Paragon. 

cs: Fortunately, everything we want to put in place, we end up putting in place. The way we look at it, the only way we can stand out is if we have the tools. In the past three years, we’re implemented three things that have helped us. The first is vAuto. That has changed the way we price our vehicles, because it’s given us knowledge that we didn’t have before. The second is our recruiting agency, Hire The Winners. They use “sales simulator” technology, and we are constantly getting better candidates than we’ve ever had before. The third product we ended up using is Service Turn, which lets you know about a customer’s equity in their vehicle when they come into your service department. Before, it was a punishment to have to work the service department as a salesperson. Today, everyone is fighting for it, because they know who’s coming in, what car they have, what their payments are and which cars on the lot would equal or better their payment. Our company has embraced these things, and it’s given us a competitive advantage.

tp: All our people have iPhones, and I paid for their upgrades to iPhones, so if customers are ever looking for anything specific on the lot, instead of running back and forth, they can find it right away — that’s worked well. We can present the customer with information right then and there, or with something that Nissan has come out with in the past week or two. Eighteen months ago, we could have never done that, and it’s giving the salespeople a lot of flexibility. We’re always talking about our product and not getting into price or payments on the lot, because it’s too confusing for the customer.

ad: I wouldn’t necessarily call it cutting edge, but we’re using texting from our CRM system, and that was kind of an “ah-ha” moment for some of our salespeople. They were amazed how quickly people got back with them. They could actually get in touch with their customers, whereas with e-mail, you just don’t know. Did it go in their junk folder? All texts make it through to the other person’s phone. They might not respond, but you can be sure it’s on their phone. We’re also excited that we’re going to be piloting a program with Hyundai, who partnered with IntellaCar to use iPads in the sales process. From guest information gathering, product demonstrations, credit application, trade appraisals, product comparisons, vehicle delivery videos…, all that’s going to be done on an iPad. We’re anxious to see if it’s just cool to say we’re doing it, or does it actually sell more cars, improve CSI, improve transaction time, and the other proposed benefits of the program.

If you have questions or are a dealer who would like to be considered for the panel, please contact us at thepanel@autosuccessonline.com.

The company that invented the automotive Internet reinvents itself to help dealers drive sales.

More than a Lead Provider,Not Just a Vendor —a Meaningful Dealer Partner

After careful analysis, Dealer Synergy had the amazing privilege of being selected to train the entire Autobytel national sales team at its national sales event in Huntington Beach, California. Dealer Synergy has trained over 7,000 Automotive Sales Professionals from Sales Consultant to Dealer Principals and has worked with numerous State Dealer Associations, Digital Dealer, JD Power & Associates, NCM, NADA and the Internet Sales 20 Group.

I have to say I’m really proud of the company and the work it’s doing to help dealers sell more cars more often, and be more profitable doing it. Autobytel wanted to be more than the best 3rd party lead source provider in the industry. They didn’t want to just sell the best quality leads. They wanted to be a true partner and asset to their dealer clients.

Every Autobytel sales consultant, account manager and regional manager was there, as well as the company’s VP of Sales, Scott Pechstein. I also had the pleasure of meeting with Autobytel’s CEO, Jeffrey Coats.

The company has been holding annual sales events each year since its inception in 1995 when it pioneered the automotive Internet, so its most recent event wasn’t particularly unique in that regard.

From my perspective, what made this event so unique is the renewed focus among the entire Autobytel team to help dealers best meet the needs of today’s online car buyers—a commitment across the entire sales and dealer ops staff to assist dealerships in closing more Internet leads and ultimately increasing sales better than any other lead provider in the industry.

During the course of the eight-hour workshop I conducted for the Autobytel group, I learned many of the company’s national sales team members actually worked in

dealerships, with extensive experience in auto retail sales, fixed operations and management…a critical ingredient in understanding what it’s like to work in the trenches, to go through the grind of the daily dealership experience, and to truly relate to dealership employees who work “bell-to-bell.” Autobytel’s sales team is a hybrid of dealership and corporate veterans who bring multifaceted expertise to the digital automotive industry and the nearly 4,000 dealer clients they service.

Before the workshop, Scott Pechstein gave me specific instructions. He said “Sean, I want you (Dealer Synergy) to train my national team like you train your clients (car dealers).” So I went hard, packing 14-plus years of successful automotive Internet sales experience into an eight-hour workshop.

Together, we tackled the fundamentals including:

All current, important, relevant and useful automotive Internet stats, data, trends and details

Today’s car shopper/buyer profile…their wants, wishes and expectations

The most effective strategies in developing, managing and evolving a successful automotive Internet sales/business development department

The “4Ps” of the Dealer Synergy philosophy (Products, People, Process, Promotions)

The Science of Communications

PROCESS details

The monitoring of four actual client phone calls (two good and two bad, for perspective)

The analysis of a joint Dealer Synergy/Autobytel client’s CRM system, identifying all holes, leaks, dropped balls and weaknesses that could potentially turn into a lost opportunity (similar to the way a trauma surgeon at a university hospital teaches medical students during a live operation)

Role playing tactics to demonstrate Dealer Synergy’s award-winning Internet Sales/Phone Sales process, offering powerful tips and advice to help Autobytel dealers guarantee more appointments, more appointment “shows” and ultimately more sales

I spent half the day training the Autobytel team as if they were part of an actual dealership, then transitioned them into the Dealer Synergy training process from an Internet sales consultant’s perspective. I demonstrated the ways they can accurately analyze their dealer clients to develop a SWOT assessment—Strengths, Weaknesses, Opportunities, Threats—to be more than just a “lead slinger” and more than just a vendor. I demonstrated the ways they can be actual sales consultants to their dealer body, to help dealers evolve in their Internet processes.

In addition to covering a lot of ground, I learned a lot about Autobytel that day.

I learned just how deep Autobytel’s lead data is, particularly when tied to actual vehicle registrations/sales. What that data shows are the leads consumers submit and to whom, and then what they ultimately purchase (and from where)—insight that’s as deep as you can get in the Internet sales cycle.

I learned that this data, coupled with Autobytel’s experienced sales and operations teams, helps dealers effectively pinpoint lost opportunities by revealing actual online car buyer behaviors. Let’s face it. It’s not about what people are “shopping for” online, it’s about what people ultimately “buy” after they’ve shopped online. If they didn’t buy your brand, what did they buy? If they didn’t buy from you, where did they buy?

I learned a lot about online car buying behaviors based on this data, which will go a long way in helping me enhance the services I offer my own clients. What Autobytel is doing is strategic and tactical. The company is in the same position as virtually every dealership in this country. Owner retention is more profitable and more powerful than a fresh up. As dealers, you know it’s more critical (and profitable) to have strong repeat and referral business. NADA data tells us that fresh ups represent an 18-20 percent closing ratio versus repeat customers who represent a 65 percent closing ratio. When it comes to companies like Autobytel, this same rule applies!

It’s simple really.

You’re more likely to continue to do business with autobytel if you sell more units by doing business with autobytel.

It makes perfect sense, then, that Autobytel strives to be more than a mere lead provider. It makes perfect sense that Autobytel strives to be a true consultant—a partner—to increase client retention and revenue by helping dealers increase client retention and revenue. Talk about a win/win. Imagine a vendor calling your for other reasons besides an “upsell” or a “set up for the upsell.”

The end result here is a national Autobytel sales team gathering essential field

intelligence and proactively sharing that intelligence with its vast network of dealers. An experienced team of former dealers and industry veterans analyzing what’s working for dealers (and what isn’t working) and proactively providing advice and feedback to owners and managers. Beyond your standard sales professionals, the end result is a team of consultants who act as dealers’ “best practices partners” to help boost sales and drive engagement.

From monitoring and evaluating client calls to analyzing the reasons behind lost opportunities, to conducting webinars and national training seminars and offering dealers the deepest lead data in the business, Autobytel’s renewed commitment to improving Internet dealer ops mirrors my fundamental philosophy—successful sales strategies start with relationships. Build relationships first and sales will follow.

Congratulations Autobytel. I should have expected nothing less from the company that invented automotive Internet sales nearly 20 years ago.

contact sean Bradley: (267) 319-6776contact scott Pechstein: (866) 589-5498

34 autosuccessonline.com

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Paul Accinno is the president and CEO of WorldDealer Advertising. He can be contacted at 866.319.6284, or by e-mail at paccinno@autosuccessonline.com.

Matt Cutts, head of Webspam at Google, in reference to the release of the “Penguin” algorithm update, recently said, “We’ve always targeted Webspam in our rankings, and this algorithm represents another improvement in our efforts to reduce Webspam and promote high-quality content. While we can’t divulge specific signals because we don’t want to give people a way to game our search results and worsen the experience for users, our advice for Webmasters is to focus on creating high-quality sites that create a good user experience and employ ‘white hat’ SEO methods, instead of engaging in aggressive Webspam tactics.”

If you read between the lines of Cutts’ statement, deploying “black hat” SEO methods will drastically impair your Website’s ability to rank well. You might instantly see well-ranking results, but Google will eventually catch up to black hat SEO methods and de-rank or potentially blacklist your site. It’s just not worth the risk. Google’s latest major algorithmic update, and its related minor releases, has fortified the requirement for white hat SEO methods. According to most, Google will not be notifying the public of future algorithmic updates; instead, it will be incorporating them into their entire indexing process.

content is king, but it has to be executed correctlyThe dynamic face of SEO has changed, and will continue to evolve. It’s not that content has failed to be an essential part of solid

SEO strategies; it’s become even more of a vital SEO component today. The impact of content marketing done right is irrefutable and, in today’s competitive digital marketing environment, quality content publishing is critical.

One of the most significant components of any healthy Website and potent digital marketing strategy is the incorporation of an on-site, seamless blog — not a blog that links out and does not “live” on your Website. A good blog is not only unique and targets a specific audience; it provides informative and relevant content that can be syndicated. Building content within your blog that engages will help your other important pages such as inventory, specials and the homepage itself rank better organically. Sometimes, providing content your audience wants to see first can lead to a better overall conversion rate. Educational, entertaining, customer experience and community-focused content all engage well.

Additionally, sharing quality blog content on social networks is a good way of promoting your products and services. It’s widely accepted to have an 80/20 split, with 80 percent of your updates not self-promotional and 20 percent self-promotional. If you use the 20 percent self-promotional updates to share links to your blog content, you’ll give your audience something more valuable to read than a product or service sales page.

sell, discover, deliver and report on highly converting keywordsA well-planned content publishing strategy will serve you well. It’s imperative to understand your target audience and the keywords that truly convert. That’s not only based upon discovery of sheer market search volume and demographics, but what your customers have to say. Find out what problems and challenges they have, and customize your site accordingly. That’s the type of evergreen content Google respects the most. It’s useful, it’s helpful, it’s relevant and your customers will find it and keep coming back for more.

Next month, we’ll take a look at ways to optimize your content marketing, including inbound and backlinking strategies, social signals and tracking and measuring your SEO efforts.

PaulAccinno marketing solution part 1

AlanBird sales & training solution

36 autosuccessonline.com

Hey, we’re all human. To some degree it’s in our nature to be slow about acknowledging change — and maybe more than a little bit of procrastination figures into it, as well. It’s not that we have our heads in the sand. We just sometimes want to hang out in our comfort zone a little bit longer before we roll up our sleeves and move on to the inevitable next thing. But, eventually, we do it. The figurative 8-tracks in our lives give way to cassettes, which give way to CDs and so forth.

Take the relatively new phenomenon of online shopping. We’ve all known for quite some time now that it’s where the mainstream shopping experience is headed. A reoccurring declaration in casual conversation has been that someday soon, it will make the leap from “novelty” to “normal,” from the exception to the rule, and ultimately it will become the standard that drives everything else.

Well, once again, it’s time to bid farewell to another comfort zone and move on. It’s time to stop thinking of online shopping as the “next big thing,” because there’s no “next” about it.

Online has officially traded the future in for a brand new model — the present. Online shopping is now king. That’s the new reality.

And the sooner we wrap our arms around it at the dealership level, the sooner we can start tapping into its potential — a potential that, by all indications, is huge.

Numbers tell the story. Let me share with you a couple of startling

statistics from a recent online lead-management seminar prepared for dealers. The statistics generally apply to all of North America — after all, the Internet isn’t limited by national borders. Let’s start with this from our source at Google:

On average, car shoppers use 18 different online information sources before deciding to buy.

I know; when we first read this one, we thought it was a misprint. But it’s true. That means your customers come to you already armed to the teeth with relevant information on what you’re selling. In fact, more than half of them will choose their dealer (hopefully, that’s you) based on what they’ve researched, studied or just stumbled upon surfing the Internet. Hold that thought, and consider the one-two punch of this next one:

The average dealership dedicates 10 percent of its staff to the Internet. Yet, 90 percent of its customers originate online.

So let’s, as they say, do the math. On one hand, dealers clearly acknowledge the Internet as being a part of today’s buying and selling dynamic. On the other hand, it isn’t given nearly enough attention. There’s no way so few can handle so much without losing potential sales along the way. This goes back to my initial point: The sooner we all catch up to this reality, the better it’s going to be for our collective bottom line.

So here’s the good news: Adjusting to a more-balanced focus on digital and online strategies can happen quickly, and with some fairly immediate results. In many dealerships, recently added online strategies account for up to 35 percent of their total sales.

Several of our clients tell us they started seeing results just from designing more customer-intuitive, responsive elements into their Websites. And it only got better from there — especially when they added digital programs to capture and manage their leads along their entire journey from first click to showroom.

One client puts it this way: “The way it’s set up now, my Website is a virtual hub of lead activity. It’s like having an extra employee on my staff who handles lead forms, traces phone numbers, initiates click-to-call functions, integrates shopping tools, manages trade-in and black book appraisal and more. And it doesn’t even take lunch breaks.”

What’s also good news is the fact that there are viable options for both large and small dealerships. We’re seeing smaller dealerships able to adapt without staffing up, while some of the larger operations have successfully staffed whole new departments dedicated to the Internet end of their business. In all cases, thumbs go up when we ask how these adaptations affect sales.

So where does it all go from here? Will the old-tech offline ways disappear completely? Not anytime soon. What has always worked on the floor (effective use of questions, product knowledge, etc.) still works when adapted to Internet communication. Meanwhile TV, radio and print still play a valuable secondary role. And while online chat is closing the gap, the telephone is still unequaled as a one-to-one appointment setting tool.

But points are ultimately scored on the playing field. And for today’s car shopper, we need to be clear on where that is. The Internet. Welcome to the new reality.

Alan Bird is president and CEO of SCI MarketView. He can be contacted at 866.869.0094, or by e-mail at abird@autosuccessonline.com.

online shopping:embrace thenew reality

38 autosuccessonline.com

GlennPasch marketing solution

digital marketing is still marketing

Glenn Pasch is the CEO of PCG Digital Marketing and a national speaker and trainer. He can be contacted at 866.611.0998, or by e-mail at gpasch@autosuccessonline.com.

Too many times, when marketing managers or sales managers begin to focus on digital marketing, they become confused with what they have to do. Their first thought is that all of their previous experience in sales or marketing has to completely change in order to be successful online. In my opinion, this is the wrong assumption.

You are still marketing. You are still following a sales process. What has changed is that you now have a new medium to push out your message. I have previously discussed that if you do not have your message clearly defined, you cannot craft an online message that ties into all of your

traditional marketing. Your overall marketing becomes a patchwork of ads that do more to confuse your customers than add value each time they see your message.

I recommend that everyone who begins the digital journey should utilize someone to help guide him or her through the multitude of changes on the Web. They need someone to help them understand the similarities and differences the Web presents in terms of marketing or lead handling. One of the first things that new online marketers need to embrace is that we are using another company’s product (search engines) and there are inherent rules that need to be followed.

One of the questions we are constantly asked in terms of marketing your message is the age-old question of quality versus quantity.

My answer has not changed. Context always is important — that’s Marketing 101.

Here are the three things you need to ask yourself:What are you saying?Why are you saying it?What do you want your audience to do?

This seems simple, but it is even more important right now.

There is such a glut of choices and options that people look to engage with great content.

To get good results on Google, some companies tried to game the system by throwing together volumes of online content. For many, it worked — to a degree. It may have gotten them to the top of Page One, but when someone read the content, was it impactful enough to get him or her to click or engage? By changing their ranking algorithm, however, Google has now forced the issue to make everyone focus back on the basics of good quality content.

Your goal as a marketing manager is to create a message that can stand out because it is well thought out and fits with who you are as a company. Create as much great content that supports your message and, in turn, fill your sales pipeline with interested consumers.

Remember, utilize your social networks to amplify your message. Create a great message that people will want to share. If your content isn’t high quality, your network will tire of you asking them to put their reputation on the line by sharing substandard content.

Remember: Quality content has always reigned supreme. It is even more necessary now.

http://www.strutmasters.com

40 autosuccessonline.com

Lost Sales

Lost Profits

Drowning in Rebate Confusion?

Hang in There.

www.aisrebates.com/as866.390.6358

There is a huge difference between a “partner” and a “vendor.” One of the biggest differences is that “vendors” often sell dealers products they don’t need, they don’t properly set them up, (which leads to chaos) or, as soon as they make the sale, they go Missing in Action. What I want dealers to be aware of is the difference between “partner” and a “vendor.” One is an asset to the dealership, and the other is a liability — there is no in-between. For example:• Vendors just sell you a product or service

without gathering “field intelligence.” They do not identify your wants, wishes, expectations and needs. They just sell.

• The vendor takes your calls when they’re courting your business, but as soon as they close you, they disappear! It is next to impossible to get them to return your calls.

• The only time they come to your dealership is to either up-sell you on a new or different product or service, or to try to unwind a cancellation. In fact, some of these vendors have special teams with the sole purpose of unwinding cancellations. (Where are these people with their powers in helping the dealership sell more cars?)

• These vendors employ people who have never worked in a dealership before, who have no idea what goes on in a dealership or how to add value to a car dealership. I’m not saying that all vendors need to have 100 percent of their staff have automotive sales or service experience. I am saying that someone in their company must have automotive sales and/or service experience or, at the very least have extensive dealership training to truly support their customers “after the close.”

• Vendors overstep their boundaries and try to get involved in things that have nothing to do with their areas. For example, a Website development vendor tries to give you advice on phone process, follow up protocol or department infrastructure. That is like me getting advice from my dentist on pains I am feeling in my chest.

Now, on the flip side, lets take a look at what a real dealership partner looks like:• Dealership partners actually “Seek first to understand, then to be understood.” They don’t rush

to sell you anything and everything. They first qualify you and your dealership the right way, and then identify your wants, wishes, needs and expectations.

• Dealership partners are actually available after the sale.• Dealership partners proactively research their client partners and identify their Strengths,

Weaknesses, Opportunities and Threats (SWOT). • Dealership partners gather and share field intelligence with their clients on both the dealership

and the dealership’s competition (As long as there is no conflict of interest).• Dealership partners have automotive sales and service experience — front line experience, in-

depth dealership sales and service training or both. • Dealership partners are always trying to provide dealership clients with examples of successful

dealers, best practices and advice that will enable their clients to sell more cars, more often and more profitably. But, they focus on information and education that is relevant to their expertise. They do not confuse their clients or accidentally throw them off with wrong information.

• Dealership partners conduct dealership visits on a monthly basis or, at the very least, provide Webinars or GoToMeeting training to help educate their dealer clients.

• Dealership partners work with their clients to customize their products and/or services to fit their individual client’s needs. For example, they might create custom reports if they are a CRM partner.

• Dealership partners will also share global data with their clients. For example, third-party lead source providers gather tons of data, including what vehicles prospects in a particular market are looking for. This data can assist the dealership in pricing trade-ins or influence the used car manager or buyer on what vehicles to find and secure from auctions, etc.

I can go on and on about this subject, but I think I’ve made the point that there is a huge difference between a “vendor” and a “partner.”

I have a preferred list of strong dealership partners versus vendors. If you have any question about this article, or if you would like my list, please call or e-mail me.

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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.

SeanV.Bradley leadership solution

the critical differences between vendorsand partners

http://www.profitsnatchersbook.com

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Data security is a critical issue — and with good reason. Data is your most valuable and, potentially, most vulnerable asset. Our industry, however, has not yet established a standard for policies, processes and procedures to ensure data security and protect consumer information privacy. The financial industry, however, has: SSAE-16 Certification, developed by the American Institute of CPAs. Already proven effective, these best practices can serve as a solid foundation for the automotive industry.

ssae-16 certification Before partnering with a vendor and granting them access to your DMS, you’ll want to make sure they’re capable of protecting and securing your data. Asking if the vendor is SSAE-16 Certified is a way to begin your due diligence.

A vendor with SSAE-16 Certification will have policies in place that cover access to data, networks and facilities; passwords; firewalls; anti-virus and anti-spam protection; equipment monitoring; data encryption and systems backups; and a recovery plan, in case of a disaster.

Just as important as the policies are the people who will have access to it. SSAE-16 Certified organizations are known to have rigorous hiring practices. Before an employee is hired, they will have been thoroughly screened and gone through a number of background checks, including drug, criminal, credit check and references. Plus, new hires are customarily asked to sign a confidentiality agreement.

choosing a vendor There are two critical issues you will want to discuss with a qualified vendor before entrusting them with your data: nondisclosure and business purpose.

nondisclosure My company works with thousands of dealerships a year — and only 20 percent of them ask for a nondisclosure agreement. Now, I know my company won’t share or sell their data, but they don’t. I strongly recommend you

have vendors you share your data with sign a nondisclosure agreement. Also, it’s wise to have vendors sign off on a data security checklist.

business purpose After deciding on a vendor, you need to establish guidelines that limit the use of your data. You should be clear on what information will be made available to the vendor and how it will be used. Your data is protected under the Gramm-Leach-Bliley Act, which restricts the purposes for which vendors can use a client’s data. Under this act, vendors must use the data to benefit you, and they are not permitted to use it for their own marketing purposes.

terminating a vendor relationship I suggest that you keep a spreadsheet of all vendors with access to your DMS — including the employee names, user names and passwords — so you are aware at all times of who has access to your data. When a contract expires or a partnership ends, make sure you terminate the account and disable all of the user names and passwords associated with it.

For an easy-to-follow checklist that guides you through the process of ensuring the vendors you partner with are up to the task of providing the data security your business demands, contact me at the address below.

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Russell Grant is the vice president of sales for J&L Marketing. He can be contacted at 866.503.8397, or by e-mail at rgrant@autosuccessonline.com.

RussellGrant leadership solution

do your vendorshave what it takesto keep yourdata secure?

http://www.dealer.com

integrating video into your marketing strategies

AJLeBlanc marketing solution

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AJ LeBlanc is the co-founder of Car-Mercial.com. He can be contacted at 866.795.9094, or by e-mail at aleblanc@autosuccessonline.com.

44 autosuccessonline.com

For this month’s video marketing profile, I interviewed Ralph Paglia, whose automotive digital marketing career started back in 1981. Ralph has helped more than 3,600 dealerships implement strategies, and served as ADP Dealer Services’ first director of digital marketing solutions when the company created the ADP Digital Marketing Group in January 2007. Prior to his ground-breaking role at ADP, Ralph served Courtesy Chevrolet during their run up to become the No. 1 GM dealership in the world. Ralph also served in various roles at The Reynolds and Reynolds Company, including OEM partnership executive and Reynolds consulting services practice leader. For more than 25 years, Ralph has provided the auto industry with thought leadership and new and ever more effective sales, marketing and operational strategies, along with the hands-on tactical skills development that new strategies require. aj leblanc: can you give us a brief overview of your basic marketing strategy and philosophy?ralph paglia: For more than 20 years I have been developing, implementing, monitoring and consulting car dealers and OEMs about what I describe as technology-enabled “Integrated Marketing and Sales Strategy.” As much as it may seem like common sense to us, the auto industry needs to improve and streamline the functional areas that serve up communication to consumers so there is both a greater coordination of message content and the targeting of audience who receives such messaging. As simple as it can sound, the strategy of delivering the “right message” to the “right customer” at the “right time” using multiple media channels seems to elude too many dealerships and car companies. Digital marketing has accelerated and shined a spotlight on the need for better integration across multiple media channels. In the early days of online marketing, there were shockingly disparate messages and themes bombarding customers depending on whether the media was offline or online. Thankfully, we seem to be well past those times, yet there is still a deep need for dealers to better realize the efficiencies of digital marketing and place digital channels at a higher priority, allocating budget to offline channels on the basis of what is left after digital channels have been optimized.

aj: what type of marketing efforts do you feel should be implemented in the stores on a consistent monthly basis?rp: Digital first, simultaneously with social media and reputation management. In the digital channels, the use of video and images

dramatically improves results, yet there is very little additional cost in this day of photo- and video-enabled smartphones, combined with online hosting channels such as YouTube, Vimeo, Facebook, Twitter, Pinterest, Instagram and others. Dealers should always focus their “Job 1” marketing tasks on the creation of assets that can be multi-purposed and used in a variety of channels. Today, dealers should be creating photos and videos on a daily basis to supplement and enhance their written content creation. Consumer-generated content such as dealership reviews, ratings and commentary are now well established, with a level of credibility eclipsing sponsored message channels. This level of credibility, combined with the increasing practice by car shoppers of seeking out a dealership’s reviews and customer ratings, has now elevated reputation management from the “nice to have” category to a “must get handled” priority. Video testimonials provide the greatest impact from many perspectives. Video is an SEO powerhouse, the testimonials are extremely credible and each video is likely to appear in organic search results as its own listing.

aj: why is it important to have video as part of an overall marketing strategy?rp: Video is to the Internet like TV was to radio. Just as TV changed “broadcast media” from a one-dimensional medium to a multi-dimensional experience, video, combined with the wide deployment of broadband Internet access, has transformed the average car buyer’s online experience so that the average number of dealership visits by consumers for each car they buy has dropped. Many people like to say “Google loves video,” but nothing could be further from the truth. People like video, and Google serves up search results based on what people like the most in the form of online content. Video is absolutely a mandatory part of any car dealer’s marketing. One of the aspects of video production that seems to intimidate many dealers is the cost of professional services. My guidance is to combine a reasonable amount of professionally produced video content with self-generated video content. Integrating a dealership’s YouTube channel with their Facebook, Google+ and Twitter accounts makes it easy for videos uploaded by dealership employees to instantly be syndicated. This sort of “guerrilla marketing” by dealership resources is especially effective when supplemented by more professional service providers.

aj: how have you seen video marketing change over the years within dealership advertising strategies?rp: The biggest changes I have seen revolve around production and distribution. With the ease of producing decent video content, combined with the emergence of solution providers, an effective multi-channel video component within a dealership’s Integrated Marketing Strategy is now both reasonable in cost and easily achievable. The other aspect of video marketing that has been refreshing to watch is the increasing awareness of its impact by car dealers. I have seen many dealers emerge and grow from their deployment of vehicle presentation videos (VPV) to the point where the majority of their most profitable sales are directly attributable to their use of VPVs. Douglas VW and Infiniti in New Jersey is a classic example of a dealer which has leveraged the daily production of VPVs along with broad-based distribution of those videos to a level where most of the dealership’s gross profit in the sales department is directly attributable to their video marketing.

aj: lastly, what do you think the future holds for automotive dealerships and online video marketing strategies? rp: It is inevitable that more and more dealers will adopt video marketing strategies to follow the leaders and early adopters who are already using video for competitive advantage. In competitive markets, a dealer’s video marketing execution will be a major factor determining their success. Customers expect to find VPVs and other types of video online from dealers; if they do not, that dealer is eliminated from consideration.

Start using video marketing today to help your dealership gain additional exposure online to in-market automotive buyers. To contact Ralph with any questions, you e-mail him atrpaglia@autosuccessonline.com or visit www.automotivedigitalmarketing.com.

Join the ActivEngage sales team! The largest automotive chat software and web analytic provider is actively seeking regional sales professionals. If you have automotive industry experience and a pre-existing account base, send your resume to jobs@activengage.com to join our growing success.

We offer competitive salary, great benefits, and We offer competitive salary, great benefits, and commission plan. Learn more at www.activengage.com/careers.shtml.

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Success StorySuccess Story Success Story

Jeff Haas Mazda

Up 26% in Sales, Jeff Haas Mazda Starts the Year Strong, Landing a Top 10 Spot for Mazda Nationally in February

How is it that some dealers appear to have an advantage over their competitors in the marketplace? Don’t most dealers face similar challenges? Like how to effectively reach the right customers with the right message, bring those customers into their showrooms and service bays, and keep them coming back again and again?

As consumer shopping habits continue to change from traditional mass media platforms like TV, print and radio, toward more targeted and digital mediums that are more personalized and accessible like targeted direct email and mail, internet, mobile and social, dealers must also make a change.

Dealerships that fail to recognize the value in targeted and digital marketing become disadvantaged against their competitors. They continue to see diminishing returns with traditional mass marketing that remains costly, not to mention extremely difficult to measure.

Today, the most successful dealers are using targeted and digital mediums that are less expensive, more measurable and give a better return on investment than traditional

LEARN MORE ÆÅ READ FULL STORYÅ CONTINUED INSIDE

Jeff Haas Mazda

• Definetheirideallocalmarketbyfindingtheperfectcustomersandprospectswiththehigheststatistical probability of buying and/or servicing with their dealership now and in the future.

• Create dynamic, cohesive campaigns that consistently speak to their customers throughout the 60-month lifecycle of their vehicle.

• Consistently target in-market same-brand prospects, and consumers who drive off-brands with a historical trend of crossing over to the brands they sell.

• Driveconsumertraffictoacustomcampaignconversionsitethatpromotesalltheirsalesandservice

offers to help increase their internet sales and service leads.

• Establish a sales-in-service program to sell vehicles from their own service bays for in-equity customers before they shop the competition.

• Work with a marketing partner like www.TeamVelocityMarketing.com to implement an integrated targeted

anddigitalmarketingstrategyacrossmultiplemediumsthatpromotealltheirprofitcenters,new,used,finance,serviceandparts.

IN A NUTSHELL

Up 26% in Sales, Jeff Haas Mazda Starts the Year Strong, Landing a Top 10 Spot for Mazda Nationally in February

“We’ve seen a noticeable improvement in our trade pattern. Since switching strategies we’ve brought in 50 percent more late model trades.”

TODD CRABTREEGENERAL MANAGERJEFF HAAS MAZDA

Success Story

Jeff Haas Mazda

IN A NUTSHELL Up 26% in Sales, Jeff Haas Mazda Starts the Year Strong, Landing a Top 10 Spot for Mazda Nationally in February

mass marketing. Although, combining multiple ad mediums can present its own challenge; as the average dealer works with multiple vendors to execute their marketing strategy often resulting in different messages and designs that too often are not integrated with one another. The key is to integrate all targeted and digital advertising into one cohesive campaign to maximize results.

Jeff Haas Mazda, serving the greater Houston area, jumped into the No. 8 spot for Mazda nationally in February and has kept its momentum going by implementing an integrated targeted and digital marketing strategy across multiple mediums using one marketing partner to attract, sell, service and retain more customers for less cost than traditional mass marketing.

“Our sales are up 26 percent YTD, but we’re actually up 70 percent within our top-selling zip codes since more clearly definingouraudiencewithinourprimarymarket,” said Todd Crabtree, General Manager of Jeff Haas Mazda. “We sold almost 1,000 new Mazdas for 2012, this was a big goal for us because it hasn’t happened in the Houston market in over 12 years.”

Jeff Haas Mazda began with a comprehensive five-year historical analysis of their sales and service transactions to determine customer trends. Those findings were then compared to leading third-party and industry data to establish consumer patterns within the local market. The results enabled Jeff Haas Mazda to identify vehicle owners with the greatest probability of buying or servicing with their dealership, as well as identify same-brand owners who had never visited Jeff Haas Mazda, and off-brand owners with a historical pattern of crossing over to Mazda.

Once Jeff Haas Mazda had more clearly defined their market, they

implemented a comprehensive targeted and digital marketing strategy using variable direct email and mail campaigns that consistently speak to customers throughout the 60-month life cycle of their vehicle with custom messaging that includes: a thank you and welcome message for recent purchasers, maintenance reminders for newer vehicles not yet in-equity but that may be due for recommended maintenance, and ongoing targeted email and mail sales communications to customers in an equity position. Using high-end creative campaigns, Jeff Haas Mazda promotes its best sales offers with custom service offers that reflect the service status of thecustomer’s vehicle. For example, active service customers who routinely come in for service receive a $22.95 “Full Service Oil Change” coupon, but customers who are categorized as lost, or who do not regularly service with Jeff Haas Mazda, receive the same offer but for $9.95 to encourage them to come back.

Jeff Haas Mazda also aggressively targets conquest service customers within their primary marketing area who own Mazdas but did not buy from them. This is unique because

• Definetheirideallocalmarketbyfindingtheperfectcustomersandprospects with the highest statistical probability of buying and/or servicing with their dealership now and in the future.

• Create dynamic, cohesive campaigns that consistently speak to their customers throughout the 60-month lifecycle of their vehicle.

• Consistently target in-market same-brand prospects, and consumers who drive off-brands with a historical trend of crossing over to the brands they sell.

• Driveconsumertraffictoacustomcampaignconversionsitethat

promotes all their sales and service offers to help increase their internet sales and service leads.

• Establish a sales-in-service program to sell vehicles from their own service bays for in-equity customers before they shop the competition.

• Work with a marketing partner like www.TeamVelocityMarketing.com to implement an integrated targeted and digital marketing strategyacrossmultiplemediumsthatpromotealltheirprofitcenters,new,used,finance,serviceandparts.

most dealers use the manufacturer’s service marketing program which often limits a dealer to only communicate with customers that have purchased directly from their store, but also limits the dealer from contacting numerous conquest opportunities within their market. If a dealer only has 30 percent market share, they are essentially missing out on an additional 70 percent of the area’s service market. Jeff Haas Mazda recognized the opportunity to broaden its service marketing program with conquest and has greatly expanded their reach of potential service customers.

Another component to the Jeff Haas Mazda’s strategy is that every outbound targeted email and mail campaign directs customers to an online Campaign Conversion Site that not only displays the featured promotions of the email or mail campaign they have just received, but also shows them every sales and service offer that Jeff Haas Mazda is currently running. If a customer is not in the market for the specific offers they just receivedthey can simply go to Jeff Haas Mazda’s campaign conversion site, www.JeffHaasMazdaOffers.com to findwhatthey’relookingforinjustacouple clicks.

“This site is already proving to be invaluable. It looks incredibly professional, it ties in with all our sales and service promotions and we’ve seen an increase inthecustomertrafficprintingcouponsfrom the site,” says Crabtree. “Plus it’s completely low maintenance for us because it’s updated every month by our marketing company.”

When customers visit the dealership they see POS merchandising throughout the store that validates the advertising message they recently saw online or received in the mail, further building credibility and helping increase the closing ratio.

As part of their overall strategy, Jeff Haas Mazda also recently implemented a unique strategy that specificallytargets vehicle sales within their service lanes. This Vehicle Exchange Program (VEP) focuses on proactively selling to service customers who are in an equity position. When customers bring their vehicles in for service, a VEP Specialist greets the customer and explains that the customer is eligible to upgrade to a new vehicle for the same or lower monthly payment. Rather than wait and hope that customers will buy from them when they’re ready, Jeff Haas Mazda is taking the initiative to sell customers in the service bay before they enter the market and shop the competition.

Success Story

Jeff Haas Mazda

SEE FULL STORY

Ä CONTINUED FROM THE COVER

“The best customer that any dealer can find is one they already havebecause customers who have an active service relationship with a dealership are seven times more likely to purchase with that dealership,” says Budd Blackburn, owner of Team Velocity Marketing, the company that Jeff Haas Mazda uses for their sales and service marketing.

An added benefit to this integratedsales and service marketing strategy is a healthier trade pattern. “We’ve seen a noticeable improvement in our trade pattern. Since switching strategies we’ve brought in 50 percent more late model trades,” said Crabtree.

Success Story

Jeff Haas Mazda certainly appears to have the advantage in their marketplace. They are a 12-time, and counting, recipient of the Mazda President’s Club award that rewards high sales volume and customer satisfaction. They strive to stay ahead of the curve. They know their market and their customers. With their most recent effort to implement an intelligent targeted digital marketing strategy across multiple mediums that serves all their profit centersby attracting, selling, servicing and retaining more customers for less cost, Jeff Haas Mazda is looking forward to closing out 2013 stronger they started.

Success Story

Jeff Haas Mazda

IN A NUTSHELL Up 26% in Sales, Jeff Haas Mazda Starts the Year Strong, Landing a Top 10 Spot for Mazda Nationally in February

mass marketing. Although, combining multiple ad mediums can present its own challenge; as the average dealer works with multiple vendors to execute their marketing strategy often resulting in different messages and designs that too often are not integrated with one another. The key is to integrate all targeted and digital advertising into one cohesive campaign to maximize results.

Jeff Haas Mazda, serving the greater Houston area, jumped into the No. 8 spot for Mazda nationally in February and has kept its momentum going by implementing an integrated targeted and digital marketing strategy across multiple mediums using one marketing partner to attract, sell, service and retain more customers for less cost than traditional mass marketing.

“Our sales are up 26 percent YTD, but we’re actually up 70 percent within our top-selling zip codes since more clearly definingouraudiencewithinourprimarymarket,” said Todd Crabtree, General Manager of Jeff Haas Mazda. “We sold almost 1,000 new Mazdas for 2012, this was a big goal for us because it hasn’t happened in the Houston market in over 12 years.”

Jeff Haas Mazda began with a comprehensive five-year historical analysis of their sales and service transactions to determine customer trends. Those findings were then compared to leading third-party and industry data to establish consumer patterns within the local market. The results enabled Jeff Haas Mazda to identify vehicle owners with the greatest probability of buying or servicing with their dealership, as well as identify same-brand owners who had never visited Jeff Haas Mazda, and off-brand owners with a historical pattern of crossing over to Mazda.

Once Jeff Haas Mazda had more clearly defined their market, they

implemented a comprehensive targeted and digital marketing strategy using variable direct email and mail campaigns that consistently speak to customers throughout the 60-month life cycle of their vehicle with custom messaging that includes: a thank you and welcome message for recent purchasers, maintenance reminders for newer vehicles not yet in-equity but that may be due for recommended maintenance, and ongoing targeted email and mail sales communications to customers in an equity position. Using high-end creative campaigns, Jeff Haas Mazda promotes its best sales offers with custom service offers that reflect the service status of thecustomer’s vehicle. For example, active service customers who routinely come in for service receive a $22.95 “Full Service Oil Change” coupon, but customers who are categorized as lost, or who do not regularly service with Jeff Haas Mazda, receive the same offer but for $9.95 to encourage them to come back.

Jeff Haas Mazda also aggressively targets conquest service customers within their primary marketing area who own Mazdas but did not buy from them. This is unique because

• Definetheirideallocalmarketbyfindingtheperfectcustomersandprospects with the highest statistical probability of buying and/or servicing with their dealership now and in the future.

• Create dynamic, cohesive campaigns that consistently speak to their customers throughout the 60-month lifecycle of their vehicle.

• Consistently target in-market same-brand prospects, and consumers who drive off-brands with a historical trend of crossing over to the brands they sell.

• Driveconsumertraffictoacustomcampaignconversionsitethat

promotes all their sales and service offers to help increase their internet sales and service leads.

• Establish a sales-in-service program to sell vehicles from their own service bays for in-equity customers before they shop the competition.

• Work with a marketing partner like www.TeamVelocityMarketing.com to implement an integrated targeted and digital marketing strategyacrossmultiplemediumsthatpromotealltheirprofitcenters,new,used,finance,serviceandparts.

most dealers use the manufacturer’s service marketing program which often limits a dealer to only communicate with customers that have purchased directly from their store, but also limits the dealer from contacting numerous conquest opportunities within their market. If a dealer only has 30 percent market share, they are essentially missing out on an additional 70 percent of the area’s service market. Jeff Haas Mazda recognized the opportunity to broaden its service marketing program with conquest and has greatly expanded their reach of potential service customers.

Another component to the Jeff Haas Mazda’s strategy is that every outbound targeted email and mail campaign directs customers to an online Campaign Conversion Site that not only displays the featured promotions of the email or mail campaign they have just received, but also shows them every sales and service offer that Jeff Haas Mazda is currently running. If a customer is not in the market for the specific offers they just receivedthey can simply go to Jeff Haas Mazda’s campaign conversion site, www.JeffHaasMazdaOffers.com to findwhatthey’relookingforinjustacouple clicks.

“This site is already proving to be invaluable. It looks incredibly professional, it ties in with all our sales and service promotions and we’ve seen an increase inthecustomertrafficprintingcouponsfrom the site,” says Crabtree. “Plus it’s completely low maintenance for us because it’s updated every month by our marketing company.”

When customers visit the dealership they see POS merchandising throughout the store that validates the advertising message they recently saw online or received in the mail, further building credibility and helping increase the closing ratio.

As part of their overall strategy, Jeff Haas Mazda also recently implemented a unique strategy that specificallytargets vehicle sales within their service lanes. This Vehicle Exchange Program (VEP) focuses on proactively selling to service customers who are in an equity position. When customers bring their vehicles in for service, a VEP Specialist greets the customer and explains that the customer is eligible to upgrade to a new vehicle for the same or lower monthly payment. Rather than wait and hope that customers will buy from them when they’re ready, Jeff Haas Mazda is taking the initiative to sell customers in the service bay before they enter the market and shop the competition.

Success Story

Jeff Haas Mazda

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Ä CONTINUED FROM THE COVER

“The best customer that any dealer can find is one they already havebecause customers who have an active service relationship with a dealership are seven times more likely to purchase with that dealership,” says Budd Blackburn, owner of Team Velocity Marketing, the company that Jeff Haas Mazda uses for their sales and service marketing.

An added benefit to this integratedsales and service marketing strategy is a healthier trade pattern. “We’ve seen a noticeable improvement in our trade pattern. Since switching strategies we’ve brought in 50 percent more late model trades,” said Crabtree.

Success Story

Jeff Haas Mazda certainly appears to have the advantage in their marketplace. They are a 12-time, and counting, recipient of the Mazda President’s Club award that rewards high sales volume and customer satisfaction. They strive to stay ahead of the curve. They know their market and their customers. With their most recent effort to implement an intelligent targeted digital marketing strategy across multiple mediums that serves all their profit centersby attracting, selling, servicing and retaining more customers for less cost, Jeff Haas Mazda is looking forward to closing out 2013 stronger they started.

Success StorySuccess Story Success Story

Jeff Haas Mazda

Up 26% in Sales, Jeff Haas Mazda Starts the Year Strong, Landing a Top 10 Spot for Mazda Nationally in February

How is it that some dealers appear to have an advantage over their competitors in the marketplace? Don’t most dealers face similar challenges? Like how to effectively reach the right customers with the right message, bring those customers into their showrooms and service bays, and keep them coming back again and again?

As consumer shopping habits continue to change from traditional mass media platforms like TV, print and radio, toward more targeted and digital mediums that are more personalized and accessible like targeted direct email and mail, internet, mobile and social, dealers must also make a change.

Dealerships that fail to recognize the value in targeted and digital marketing become disadvantaged against their competitors. They continue to see diminishing returns with traditional mass marketing that remains costly, not to mention extremely difficult to measure.

Today, the most successful dealers are using targeted and digital mediums that are less expensive, more measurable and give a better return on investment than traditional

LEARN MORE ÆÅ READ FULL STORYÅ CONTINUED INSIDE

Jeff Haas Mazda

• Definetheirideallocalmarketbyfindingtheperfectcustomersandprospectswiththehigheststatistical probability of buying and/or servicing with their dealership now and in the future.

• Create dynamic, cohesive campaigns that consistently speak to their customers throughout the 60-month lifecycle of their vehicle.

• Consistently target in-market same-brand prospects, and consumers who drive off-brands with a historical trend of crossing over to the brands they sell.

• Driveconsumertraffictoacustomcampaignconversionsitethatpromotesalltheirsalesandservice

offers to help increase their internet sales and service leads.

• Establish a sales-in-service program to sell vehicles from their own service bays for in-equity customers before they shop the competition.

• Work with a marketing partner like www.TeamVelocityMarketing.com to implement an integrated targeted

anddigitalmarketingstrategyacrossmultiplemediumsthatpromotealltheirprofitcenters,new,used,finance,serviceandparts.

IN A NUTSHELL

Up 26% in Sales, Jeff Haas Mazda Starts the Year Strong, Landing a Top 10 Spot for Mazda Nationally in February

“We’ve seen a noticeable improvement in our trade pattern. Since switching strategies we’ve brought in 50 percent more late model trades.”

TODD CRABTREEGENERAL MANAGERJEFF HAAS MAZDA