Asking The Right Questions:

Identifying customers who are more likely than average to buy is one of the things Business Intelligence can do for a dealer. It’s a simple question: who are your customers and why do they buy? Most of the time dealers will identify customers through a lead source and drop leads sources that don’t produce deals.What about the thousands of service customers and past customers who are looking, or could be looking to buy? Analyzing the customer base it was found that repeat customers were twice as likely to buy once they passed 60,000 miles. The lease customers were twice as likely to get another lease if they were in the second year of their lease and they had greater than $1000 in mileage penalties. These facts help target the dealership’s marketing efforts getting the most bang for the advertising buck.

Planting The Seeds:

Using our example we see that several customers are just below 60,000 miles on their vehicle. Sending a free oil change coupon with an offer of a free appraisal done in the service department is a great way to “prime the pump”. Lease customers would get an oil change coupon and a reminder how that if they lease a new car mileage penalties on their current lease will be forgiven. The advertising dollar spent with a high probability of return is the dream of every General Manager. Instead of an expensive mailer or print ad that “shotguns” a low probability customer base the dealer selectively contacts fewer customers with a higher probability of buying.

Tender Loving Care:

If you know who are likely to become a repeat customer your Service Department can begin communicating with them early and often making sure they get every service special, car loaner, or a van pickup when their car is in the shop. That is not to say that all customers should not get VIP treatment but a dealer’s focus should always be on a deal.

Organizational Transformation:

Business Intelligence gets the right information to the dealership decision makers letting them concentrate on those things that work and shedding activities that have a low return on dollars and effort. The organization becomes leaner and meaner as better information drives organizational focus. Selling more cars and while spending less money is just the smart thing to do.

The first question I had for the panelists was also be tied to the ZMOT study. This is a must read for retailers. Here is a slide for those only interested in the summary:

According to Google, all purchases start with a stimulus. In the case of an auto purchase, the stimulus could be a Tier 1 spot that the prospect watches. Once the stimulus initiates action, 80% of people will then use a search engine and the potential purchaser typically uses 10.4 sources of information. One source may be AutoTrader.com and a second source may be a dealer website.  The Zero Moment of Truth is a situation when the prospect is conducting a search for a product, or they talk to friends about the product, or they comparison shop online.

These ZMOTs shape the decisions of the shoppers, according to Jim Lecinski, managing director, U.S. Sales & Service for Google, who is the author of ZMOT. Lecinski reports that 70% plus of the prospects will read reviews and watch videos. The prospect then ends up at the shelf to buy the product off the “shelf.” The shelf could be a grocery store, or Target, or your dealership. A key point referenced in this book is the importance of both testimonials and video content to create a stronger moment of truth. It is the impression that a consumer gets that will move that person down the sales funnel.

In preparing for the Digital Dealer panel discussion, one of my panelists forwarded a white paper from Lauren Freedman, president of the e-tailing Group. Freedman has worked in e-commerce for 15 years.  Freedman’s research revealed five key points tied specifically to video:

1. Consumers set the pace: they want, expect and watch video.
2. Video plays a multi-faceted role and is ideal for building consumer confidence.
3. Video quality matters.
4. Many website locations merit video integration.
5. Beyond site experience, target shoppers want video in all places where they spend their time: e-mail, social and mobile.

Here is a sample of the companies engaged with video referenced by Freedman with her research: Belk, L.L. Bean, Kendall Jackson, Dell, AutoZone, Crocs, Toys R Us, Babies R Us, Moosejaw, Golfsmith and Verizon.  Why would these companies use video to promote their products and their value proposition? I would suggest that they had metrics supporting the impact of video long before Google published the ZMOT study. Freedman’s website is: http://www.e-tailing.com/thegroup/freedman.html

Your reaction to this may be, Fortune 200 companies can afford to have a video strategy, but applications for auto dealers simply don’t apply. You may wonder if dealers are tracking results because of a video strategy. Is video a phase? Is a video strategy simply producing VIN specific walk arounds?

To answer some of these questions, I will introduce Beth VanStory. Beth is principal for Thinkout Consulting.  She consults to auto dealers and helped Toyota Sunnyvale become one of the top online Toyota dealerships. Beth launched and led OfficeDepot.com to profitability in one year. Earlier she led the new media group at The Weather Channel, bringing weather.com to one of the most visited sites on the web.  Beth believes in the power of video for driving visibility with Google and creating a stronger first impression on the sites of the dealerships that she consults with. I have met others who have migrated to the retail automotive world with impressive corporate backgrounds. The strategies being used by Toys R Us or Weather.com should be studied by the retailers to understand how to drive traffic to the website and how to create a wow moment when the consumer first looks at the website.

Let’s go back to some of the questions that I listed:

Question 1: Is a video strategy simply producing VIN specific walk arounds?

Answer 1: No

Question 2: Can I afford a video strategy?

Answer 2: Yes. Give up on some of the dated traditional advertising approaches not gaining traction and focus on a video strategy.

Question 4: How much do I need to get started?

Answer 4: $1,200 per month with the right company can get you into the game.

Question 5: What should I be focused on?

Answer 5: A home page player to showcase video content, monthly sales and service specials, new model content, content tied to the service department, customer testimonials, “how to” videos and high quality VIN specific video walk arounds.

Question 6: Why should I pay attention to the ZMOT book?

Answer 6: If you gain knowledge of how Google operates and apply it, you will sell more cars.

Question 7: What can a video strategy do for me?

Answer 7: It can help gain ZMOTs. Google places a higher value on relevant video. A video strategy will help differentiate your website. A video strategy will slow a consumer down and drive the time on site metric. If time on site increases, your website conversion rate will increase. 

Question 8: What are some good retail sites to review?

Answer 8: Visit the Jim Ellis stores, Mile One, Toyota Sunny Vale, Germain Cadillac of Easton, Hoffman Honda, Jeff Wyler Florence Honda, Ed Morse or O’Hare Honda for some ideas. All of these are high performing operations.

Question 9: How do I come up with ideas?

Answer 9: Get your management team involved and identify a point person who has a creative side. 

Question 10: Have we figured out all the applications for video?

Answer 10: We are only beginning to understand opportunities for online video. The key is to jump into the game. You can’t grow unless you are participating.

I recently had a meeting with John Peifer from Suburban Chevrolet in Minneapolis. John summarized his marketing focus this way: “My marketing efforts need to accomplish the following in this order: drive showroom traffic, get the phone to ring, drive emails and drive traffic to my website.”

John stated, “The retail game is an easy one to figure out.” I believe that the retail game may be easy to understand, but it is very hard to master. I would add that retailers must be willing to adapt to the advertising game. John embraced video seven years ago, long before the statistics or studies proved that it was a good investment. John also focused a higher percentage of his ad spend on the digital side compared to other dealers in his market. What about you? Are you embracing video as an opportunity?

Unfortunately, your advertising will always be at least a little bit suspect. No one expects you to say anything but positive things about your business. If you could make a claim that could be verified or if you stated factual information (i.e. “The Tri-state’s Biggest Truck Dealer”), then you gain a bit of credibility. Certainly if you offer up customer testimonials you could project a customer’s perspective, but as long as it was produced and presented by you, for you, there is still a shadow of doubt.

Cone Communications recent 2011 Online Influence Trend Tracker (August 2011) found that “80% of consumers have changed their minds about purchasing a recommended product or service based solely on negative information they found online.” This figure is a significant increase from 2010’s 67%.

People simply attribute more objectivity to an opinion that doesn’t appear to be influenced by the subject of the comment, so they look for those opinions when they are unfamiliar or uncertain about their choices.

It is becoming increasingly easy to find online reviews, comments, complaints (and praise), and blog entries about most products and services, and the companies that deliver them. Some can be found on your own social media and your website.  That is why you need to do all you can to make sure that your happy customers have opportunities and encouragement to praise your great products and services online.

Women are even more likely than men to turn to online sources to reaffirm their purchase decisions before they make them.  And they’re also quite likely to turn to the web and other media to offer their opinion of their buying experience afterwards, so make that experience great.

Your job is to incorporate feedback opportunities into your interactions with your customers, and to make that feedback available to prospective customers. Your website should have be a forum for customers to comment, hopefully positively. (If you get negative feedback then address it immediately and openly. An unhappy customer has many places to complain online other than your website or Facebook page.)

The more independent the opinions are, the more validity they have. Of course, the more people that contribute their opinion, then the more objective that consensus is. That’s one thing that makes awards a useful marketing tool, especially those that determine their award winners through public opinion polls.

As tempting as it may be to plant glowing feedback to counter that of unhappy customers, it is unwise to do so. If it is uncovered, the repercussions can be more trouble than the complaint. It is better to encourage happy customers to post their praise so that a balanced perspective is available.

Do what you can to let customers both on and offline know that you are doing wonderful things to keep them coming back. That’s the WomenCertified Way!

Regardless of which type of first contact we made with our prospects, be it via live chat, a phone call, a lead or as a guest on our property, it is imperative that we understand and master commonality based rapport building. What I mean is, when there is always enough money in the emotional and mental bank, you can consistently make the proper withdrawals. This creates the commitment that leads to the art of closing. By closing I am referring to selling on a much greater scale than one person, or one couple, in front of us at a time. Your vision must be from the beginning to not just sell them a vehicle, but to become their quote, “I gotta guy.”

Humanizing the conversation, sharing rather than telling and following through with strong “pacing” statements explaining why we understand and why things aren’t a problem. Include your own personal experience as well, i.e. I have kids too. This solidifies commonality, which is ultimately the rapport that you need to have the strongest ROR.

You establish value in the sale.

ROR, mental ownership and a commitment from your sales consultant help people feel good about buying the right thing and give the ultimate perception that they didn’t pay too much. It is essential to adjust the steps and ensure that the psychology of human instincts and personality types are addressed from the first contact. Do it the right way every time, even when nobody is looking.

You become their ‘I gotta guy.’

Referrals happen more often because of the stimulus and validation of liking someone, positive recall of their experience and fundamentally how we made them feel. It is a cycle. The timeless saying “people don’t care how much we know, until they know how much we care” has never been more true. How many people reading this very article is someone’s “I gotta guy”? No matter the length of time in the industry, we develop a “Friends and Family program.” Imagine multiplying that by the number of sales consultants and business development representatives you have representing your company. Facebook and other social media will also expand your referrals as your customers’ “I gotta guy.” Catching a photo of your customer with their new vehicle, happily standing with their sales consultant and immediately uploading that photo to their Facebook account from their smartphones (no signatures or paperwork needed), will produce more customers and positive reputation for your business than word-of-mouth referrals ever have in the past.

You have a diverse evidence manual.

When returning from the test drive you need to relax the customer, take a service walk and then take them to the “buyers pending” area. I must say, now is when you will make or break your deal. Where have all of the evidence manuals gone? Would you rather have your customers sitting, waiting for your “pencil” being distracted by their cell phone, reading others emails, listening to voicemails and shopping online? Or would you rather they be reading a very presentable book that might have a picture of a little boy titled, “The Top 10 Reasons to Buy from My Dad.”

The point is, an evidence manual will solidify that they have made a good choice. In the first aspect, it validates that they are buying from good people through our “About Us,” community involvement and charities. In the second aspect, by providing expert write ups from magazines, detailed consumer reports and comparisons on the vehicle of choice, as well as various other supporting evidence, you assure them that they are buying the right thing. It should include all of the thank you notes, pictures of happy customers, social networking posts, reviews and lastly, pictures of you outside of work with your family, your hobbies and your interests. It doesn’t matter if it is fishing or pictures at the beach that will bring commonality between you and the customer. Perhaps you include some pictures of a local area they might recognize. The point is to have them viewing you as a neighbor, as a peer, as a friend, as someone they can trust, all of which should be true anyway.

Remember your body language speaks volumes. It is over 60% of communication and their decision process is being made based on how well you are presenting the options. Be it one price or negotiation, be it Four Square or going over the numbers and introducing them to finance, the key is to not just say thank you and shake their hand. When, not if, they say yes, validate. Tell them what a good choice they have made, what a pleasure it has been and how much you are looking forward to them being a part of our Friends and Family program.

Your CRM notes are thorough.

CRMs are only as good as the notation that goes in. Be quick to notate all that you have learned about your customer. It won’t be long until you are making a taillight call, picking up the phone, staying in touch and developing a relationship. Leave no question or pause to how they will react whenever they learn of anyone they know in need of a vehicle. Of course this is the same timeless response that you would give someone in any other industry that you know trust and enjoyed working with.

Remember there is zero downtime in the car business. Consistently practice and utilize all of the continuing education material at our disposal. I am baffled how the NextGen Automotive sales professional representative could ever be bored. We found more than enough to keep busy long before there ever was the Internet. Contact us with any questions in regards to these techniques, the basics or how in fact SMS, MMS, headshots, reverse TOs, Facebook uploads and all of today’s technologies help with the classic steps to the sale. We are happy to talk about it. Good selling my friends.

Hi Jack,

Best regards,

Reader

Dear Reader,

Good to hear from you.

You are asking one of the hardest questions there is. Because the answer is much deeper than you might think. A guy can buy a Hyundai anywhere, but this is the only place he can buy it from you. A lot of salespeople end up getting “No’s” from customers because they spend too much time trying to get the order instead of being different. I think the easiest way to do that is to take a genuine interest in what the customer has to say. Not about the car, they may know more about it than you, but about themselves. Does he have kids? A wife? Do the kids play sports? What kind? Are they any good? Where is he going on vacation?

Most salespeople think these are just obvious qualifying questions, so they know what type of car to stuff the customer into. But it is much more than that. To go deeper into your success or failure at auto sales, here is my question to you.

Why do you sell cars? To make a living? Sure. If you make a comfortable living, selling 15 units a month and making $4,000 a month, what are you going to do with that money? Buy a bigger house, a fishing boat or take your kids to Disneyland? If you can answer those questions, then you will take a genuine interest in your customers’ life, because if you have aspirations to take your kids to Disneyland this summer, wouldn’t it be interesting to talk to customer who has just been there? Of course it would. So the only way you can get closer to a customer is to show that you care and mean it. The only way you will ever do that is to set goals for yourself. Have dreams and your customers will make them happen. In my book, on my website, in my blogs and all the training I have ever done, I demanded (OK, demanded is a little strong). I encouraged my students and readers to have a reason to get out of bed in the morning. Have a reason to take an interest in your customers on a deeper level than just the money.

I sold more cars to people while talking about their kid’s baseball tournament than any talk about the legroom of an Acura Integra in cubic inches. (Of course if the guy is 6’5” tall that will certainly be part of the conversation…) I did that because I had kids and we could relate. It was a lot more fun for both of us to talk about that than talk about car specs. I always say if you want to regurgitate specs, hand the guy a brochure, if they even have those anymore, staple your business card to the front of it and send him on his way. You will never be as thorough as that brochure. But, the truth is if you can equate the trunk space to fitting his baseball gear and get him talking about himself, you will get less, “no’s.”

And here is the hardest part of listening… shutting up. I’ll bet 90%, no…99% of salespeople love to hear themselves talk. So as soon as the guy says, “Yeah, we went fishing last weekend,” the salesperson starts telling his story about his fishing trip. At which point the customer has left, mentally first and then physically as soon as he gets the chance. Remember, the one thing a customer will never do when he’s talking is leave.

So here is your call to action. In the next sales meeting have the staff write down why they are there. Most of them will write down: sell cars, make money and blah, blah, blah. Then have them write down the “what.” What do they want out of life? It’s simple, but so important, I spend the first quarter of my book going into great detail on goal setting and attainment.

It is the “what” that will dictate the success or failure of your entire sales staff.

Good luck and great selling.

I’ve talked to used car managers who are traveling further distances, attending more auctions and paying more than they ever have before. Unfortunately, used car managers don’t have a lot of control in terms of what comes available at auctions and what the market demands they pay for good inventory.

What they do have control over, however, are the processes within the dealership that determine how leads for used cars are handled. Implementing the following best practices in the Internet Sales department may help alleviate some of the pain felt due to current lack of inventory:

1)   Encourage Flexibility. Experts agree that when the price of a used car reaches 60% of a new car, often times the consumer will opt for a new car instead. So when an Internet leads comes in for a used vehicle and you don’t have the inventory to match it, highlight new vehicles in the same style and price—or even more important, payment—range, as the used vehicle requested. Expanding the selection of vehicles and providing side-by-side price comparisons may change the customer’s mind.

2)   Actively Solicit Trade-ins. Tag every email correspondence to customers with an offer to buy their trade-in vehicle—whether they buy from you or not—to drive traffic into your showroom and help boost your inventory. If you use a trade-in tool on your website, such as Kelley Blue Book’s Lead Driver, aggressively pursue the vehicles that match your inventory needs, offering hope that what you will pay often exceeds the online estimates.

3)   Don’t Give Up. Instead of closing out leads that you couldn’t help due to lack of inventory, start a “want list” of vehicles requested and provide it to the used car manager weekly.

4)   Hold Firm on Prices. Used vehicles are turning quickly and hard to replace right now, which reduces the amount of potential substitute vehicles in the market and makes the ones you have even more valuable.

What other best practices do you recommend to address the used vehicle inventory shortage?

Spirit is the ‘soul’ of your brand.  The foundation of your core belief system.  The force that defines your depth of commitment to service, satisfaction and trust.

When I was a young boy I remember my Dad buying a used station wagon.  Just a few days after delivery the transmission went out.  I went with my Dad to the dealership.  I remember the manager telling my Dad there was nothing they could do.  Their responsibility ended at the curb.  At 10 years old I made a silent pact with myself that not only would I never do business with Leader Chevrolet on Memorial Avenue in West Springfield, but that I would use every opportunity presented to dissuade others from doing so.

I also remember acts of kindness of businesses that went far beyond warranties implied that benefited my parents and their four children.  It helped to form bonds of loyalty with those businesses for all of my adult life.

Yesterday, while watching Fox News, I heard the story of a Vietnam Vet who had purchased a ticket on Spirit Airlines in Tampa, and then, under doctors orders was unable to take the flight because of esophageal cancer.  The airline refused to consider any kind of refund despite the medical condition of this veteran.  This from an airline with the name ‘Spirit’?  I’ve never flown Spirit.  And now, I can say quite confidently that I never will.

You may offer a great choice of the most popular models, low prices, great deals, exceptional service, etc.,   But does your business have the most defining branding dimension?  A soul.  A Spirit?

Let’s take a step back. Recently I was approached by one of my “partners” who has lost the ability to track his ROI. He is a very progressive dealer who has learned that success does not come to those that wait. With this mindset, when he was presented with the newest tool to hit the market he jumped on it. As he added each piece he has seen growth. However, as he signed on his 28^th vendor, he came to realize that he does not have a clear way to track the individual strength and impact of each of the tools. They have become one large conglomerate. This put him in a situation to have to question whether it is one of the products he put in place that has been causing the growth and success or is it a combination of a group of services and if so which ones? If it’s one, should he cancel the others and get an even larger ROI? If it’s a combination, which ones? Where does he go from here?

Clearly many of these vendors are indispensible and certainly you would expect CRM’s to track ROI (they all say they do). In fact many have fantastic graphics and charts to break down every ad/lead source. We are fooling ourselves if we think for one minute that everybody’s calling on a specific toll-free number and not your original land line. Those don’t get tracked the same as the vanity numbers. Remember the quality of our notation and dialogue with consumers is essential for tracking. Vetting said ad/lead source is precisely the backup plan required in today’s fast moving next generation professional automotive sales.

Being spread thin among multiple vendors keeps you from seeing the true strength and benefits of each. To untangle these services and to determine the ROI, it is essential to trace them back to the beginning. Now, with this many vendors, know that the determined results can and will overlap and this is okay. It is essential to eliminate the things that are not showing results first, then break down the rest. To do this you need to first gather information on each of your vendors, specifically what the service was designed to accomplish and then determine how closely the results are matching these intentions.

By no means am I saying that this is an easy process. It takes a little pencil sharpening and can require outside consultations and input. It is key, however, to clean up what you have before you throw more money on the fire. Eliminate anything or anybody holding you back and start implementing specific tracking on everything that you start from this moment forward.

As my dear partner hangs on the walls of every one of his stores “Vision is defined as the precise, clearly defined goal with a detailed plan and timetable for achieving that goal.” Have we all truly clarified said vision for each and every one of the services, leads and products that you are paying for every month, because when, not if, it is precise and clearly defined with a timetable we can have undeniable expectations and ultimate accountability?

Looking forward, one of our most recent “partner’s” approach in the implementation of our training and consulting services was right on the mark. Before taking the step forward we detailed all of the key components that were trackable to help determine that the changes we were about to launch would provide the tangible results that they were seeking. We detailed what their intentions were with the program, including consistency, growth and increased results.

Some of the key elements we were able to provide and track over their six month initial agreements were analysis of where they currently were in regards to attitude, current levels of success and failure in customer contacts, appointments, shows and sales. Next, we assisted in setting clear goals for the next 30, 60, 90 days, etc. The measurements included how each salesperson is using to their advantage the tools we provide, such as the national mentor line, daily warm up and practice, monitoring of progress and retention levels through assessments and quality care calls. As their assistant coaches we are able to use the tools they have on hand and show them, rather than tell them, what is working and what needs adjustments.

This approach is not only effective for training programs, but with all vendors. Before you sign any more agreements know how to use your marketing dollars to maximize their effectiveness. Remember nobody bats a thousand, but getting ahead today requires avid faith in your people and in your process. It must be clearly defined, there must be diligence and most importantly any plan without a backup is still just a wish.

In this series of blogs I am addressing common processes within a dealership that present challenges that are not easily solved. In my last blog I talked about how important it is to track how long it takes to get trade-ins out to the front line.

In this blog I’d like to address the issue of finding cars. For many large dealerships, one of the hardest things to do is to find a car. How many times are your customers left standing while a salesperson goes off searching for a vehicle? This is not a great way to get the customer into a buying mood, let alone the fact that it’s a very unproductive way for your salespeople to be spending their time.

One dealer I know has locator beacons on every car. Another dealer bar-coded every car and every parking space. One of the largest Chrysler dealers in the country uses Radio Frequency Identifcation (RFID) tags on every car, then has employees drive around in golf carts reading the tags with a wireless device, which then updates the database with the location of the vehicle.

These are examples of some high-tech solutions available, but unfortunately they are also very expensive solutions. What if you don’t want to–or aren’t able to spend that kind of money? Can you think of any low-tech, or analog solutions?

When I was a general manager at a large, multi-line dealership, we had four lots for about 600 cars. Once a salesperson got into the right lot, usually they could find the vehicle pretty quickly. But knowing which lot a car was parked in was always a problem. It could take anywhere from 45 minutes to an hour to find a car.

Our solution was to color code the lots and then buy little round stickers of each color: red, blue, orange, yellow. Then, whenever somebody parked a car, they would take note of the lot color and put the appropriate colored sticker on the key box in the key machine. Knowing which lot the car was parked in dramatically cut down the time necessary to find the vehicles, in a very low-cost manner.

Before you decide on an expensive technology solution, have you considered if there’s a low-cost, analog solution? I always suggest getting several employees together on a cross-functional team to brainstorm ways to solve a problem. Cutting down the time involved with finding a car is critical if you’re trying to increase efficiencies in the sales process and keep your customers happy.

What about your dealership? Do you have a process in place that enables salespeople to find cars easily? What has worked and what hasn’t?

What was that? Did you just say that was stupid David? I agree, it is stupid. Stupid because the phone is needed for business, the phone is needed to make sales. I can make the same claim with the internet, with Facebook and Twitter, with LinkedIn and blogging. If used the right way, if used with a specific plan of action, it can be used to develop leads, it can be used to create sales. Why then are you blocking these sites from company computers?

Again, what was that? Oh, you can’t trust them to work, you’ve caught them playing on Facebook one too many times so you had your IT department block certain sites? Who do these salespeople work for…

I’ve had this conversation with Craig Lockerd, CEO of Automotive Recruiting and Training, and he told me that it’s important to inspect what you expect. That if you, from the very beginning, tell your salespeople what you expect from them, train them the right way, and then continue to develop them that you shouldn’t have anything to worry about.

I agree! They do work for you don’t they? Sure, they’re going to be a few that don’t get it. That don’t understand that through the use of social technologies you can create a powerful brand that will influence both word of mouth and customer loyalty. Yes, they can implement an inbound marketing plan, one that pulls people in, one that will equal incremental sales for your dealership, why aren’t you teaching them how to do it?

Prospecting pioneer Fran Taylor, CEO of Taylor Techniques, goes into great detail on how a salesperson can use specific prospecting tools to really drive sales and referrals. Social network ssuch as Facebook, Twitter, LinkedIn, and others are other such tools. Tools that can be used to showcase the authority of your salespeople and make them the obvious choice in your market. Of course, they must be used the right way. So, stop making excuses for your salespeople. Stop saying they won’t get it or they will abuse the freedom. Teach them, show them, create a specific plan of action that will get results.

A Few Examples

Facebook is a great way to connect with your customers. I’ve created a video about it, I’ve been kicking around the idea of redoing it, but the information is spot on. You can watch it HERE. I’m fond of saying that in order to create a life-long customer, you must go past the transaction to create the type of relationships that influence word-of-mouth and customer loyalty. Facebook is a great way to do just that, make sure that you watch the video, I go into detail about what I mean here.

LinkedIn is a great network to connect with the movers and shakers in your community. It’s a great tool that can be used to connect with people of influence. People that can and will send you referrals if you go about it the right way. That is, don’t connect just to connect. Aim for quality over quantity. Make sure that you click on the link in the first sentence of this paragraph for a specific plan of action.

Twitter, while most people don’t get it, can be used to connect with people very easily. It’s easy to find locals to connect with, just check outTwellowHood. From there it doesn’t take a ton of time to build connections and get to know people, but more importantly getting people to  know you.

I can go on and on, there are a lot of different things that can be done with the current state of social technologies, but you have to work it smart. You have to have a plan. I suggest setting aside specific times that your salespeople should be focusing on their social marketing plan. Also, you should appoint a specific person to keep an eye on things to ensure that your salespeople are on track.

Lets say that you have 8 salespeople and that each one sells an average of two units a month from their inbound marketing plan, would an extra 16 unites work for you? I’m sure it would, but remember, train, train, train!

What influences a car buyer? A recent J.D. Power 2012 Avoider Study found that fuel economy is now the most influential factor in choosing – or avoiding – a product, though factors like price and styling are also strongly influential.

My response went like this, and I am paraphrasing.

I am suspect of the validity of the study and what it does to actually help us sell more units for one reason; conflicting stories. I don’t question J.D. Powers, but a story from USA Today titled “High-end pickup sales power upward,” around that same time reported that the sale of full-sized pickup trucks was through the roof and basically a savior for the big three (Ford and Chevrolet for sure and a lessen extent, Dodge and the imports)

And the USA Today story went on to say that not only are trucks selling well, customers are decking them out with more and more features. (I know, I am preaching to the choir here) Relatively speaking, trucks get lousy mileage (in comparison to the 40 MPG cars you can buy.) That opens the question, what is lousy mileage? Ford advertises something like 22 HWY, although that is a 2WD, base model F-150 which, correct me if I am wrong, that we don’t sell a lot of? Since I am not in retail and have to go by the data at hand, I don’t know if you can actually buy a 1/2 ton truck for under $25,000? USA Today stated most sales were over $35,000 and many as high as $43,000.

So back to the issue. What influences a car buyer and ultimately drives customers into your store? Now I know this is probably a story more geared toward one of the marketing gurus and experts that write in this magazine as well as ad agencies across the land. But, if you know what’s working you can better train your sales staff. And on that topic I can speak.

The J.D. Power study says that MPG influences and/or brings people in, but the USA Today story says trucks sell. So what is the truth? After many people in the Internet group commented on the post… okay excuse me as I go off the rails here a little bit. The biggest problem with chat rooms, discussion boards and blogs is that usually after about ten responses the conversation goes off track and many times disintegrates into name calling… and that too is a story for another day. “How can you make the most out of Internet expertise?”

But I digress. The good answers from knowledgeable people in the group talked about what people said when they came into the store and what they actually left the dealership with.

A customer comes in because he likes the looks, has a budget and saw great gas mileage advertised. A truck buyer says he wants great gas mileage, but buys a truck that gets 15 MPG.
What that customer leaves with is a great vehicle that he likes to look at, at a payment he can afford. Mileage becomes a non-factor.

So, are your salespeople selling to what people think they want, think they need, say they want or say they need? My guess is it is a combination of all of that.

So, it all comes down to good qualifying. And with good qualifying you can do a good presentation and with a good presentation you can close a sale.

Whatever got them there is as important to you as who writes the checks for advertising, but it is irrelevant to the salesperson. What they say to the salesperson and how the salesperson interprets that data is what’s all important.
Good luck and great selling.