The Dealerist's Blog helping dealers get the most out of social media

16Jun/100

AT&T Customer Service vs. Verizon

Image credited to The Joy of Tech www.joyoftech.com

Forget the debate about whose network cover more people in more places, though I often am very thankful that I am with Verizon.  No today, I'd like to talk about AT&T's customer service or lack thereof.

About four years ago I too was with AT&T (then Cingular) but after several run ins about bad reception and service I took my plan to Verizon.  My wife however stayed with AT&T for one reason, the rollover minutes.  She just loved the thought of those minutes piling up as though we'd her or the kids would ever use them.

She was recently laid off and had to send the company iPhone back and so the kids were going to get her a new iPhone for Mother's Day.  A good friend said to wait since the iPhone4 was to be released soon so we did.

Yesterday AT&T's website crashed and was down almost the whole day.  Today she finally got a hold of someone and was told to drive down to the store (about 20 miles from our rural house) and they would get her pre-order completed.  She gets down to the store and was told by the AT&T representative that they could no longer take any pre-orders.  WOW can we roll that over too?

So yet again, I am reminded why I love Verizon and left AT&T years ago.  It seems that you can put lipstick (iPhone) on a pig (AT&T) but it will always be a pig.

I just really have to wonder why Apple continues to allow this absurd treat of really is Apple's customers?  Just a thought..anyone have any AT&T disaster stories?  I'd love to hear them.

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4May/100

Change, Uncomfortable but Necessary

Change for the Better

The past few months have been challenging not only for the nation and our industry, but also for me personally.   Shortly after the New Year began, I left my previous company and began a new adventure with a longtime friend at iMagicLab.  I simply was ready for something new.  It’s been a bit uncomfortable at times getting re-acclimated in a new company, but I believe with all my heart that tit was truly time for a change and so believe that it will all be for the best.

This is true for our dealerships as well.  There are many times that we know in our hearts that we need to do something different but still resist.  Many of us have websites that we know no longer market our stores the way we need them to.  Others are using outdated CRMs that we know no longer help us retain our own customers.  In almost every store across the nation there are items that we know we need to change but have resisted for various reasons.

Today stop and take a minute and look at the things you know you need to change in your life and at your dealership.  Yes, change can be uncomfortable, but in the end when you’ve made that change, and you’re starting to hit your new stride, you can look back and be glad that you changed.  I know I am glad that I made the changes I made.

So what changes do you want to start today?

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1Feb/100

Toyota uses Social Media for discussion

Toyota COO and President Jim Lentz

As part of the campaign to get in front of the accelerator pedal recall Toyota COO Jim Lentz fielded questions today on Twitter.  While it's not really earth shattering news, it does demonstrate that Social Media plays a vital role in the new marketplace.  

Customers want transparency from companies that they deal with.  It reassures them and shows what they can expect should any problems arise in the future.  So while Toyota did not sell any cars directly during today's Q&A session, I  have no doubt that they convinced more than a few people that will be buying soon,  that Toyota  is easy to deal with.

Dealerships can apply the same principle.  Don't use sites like Twitter to try and sell cars, rather use them to sell your dealership.  Show current and prospective customers that you are open, transparent and easy to deal with.  You will find big dividends in retention and new customers as well.

As always, please feel free to contact if you have any questions how you can use Social Media as part of your overall online strategy.

the.dealerist@gmail.com

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30Dec/090

Will 2010 be a great year for your dealership?

2010 clickerNew Year’s Eve will you stay up to watch the New Year come in or make sure the old one leaves? 

While 2009 has certainly been trying, I will stay up to watch 2010 arrive.  I am confident that this year will be one of the best ever.  Business is starting to come back again and dealers today are better equipped to meet the demands of today’s buyers. 

On a personal note I have completed my move from Southern California back to Kentucky and am ready to face the exciting challenges of helping TK get a better foothold in the Southeastern market. 

My series of articles about each of the OEM’s will begin next week and we will start with Chrysler.   I hope that these articles will help you sell more cars by showing you what the OEM’s are doing with Social Media and what some of the brightest in our industry think is the best way for you to use it at the dealership level.

So here’s to a great 2010 may each of you be blessed this year.

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3Dec/090

2009 LA Auto Show Observations and Opinions

logo

As Press Days wind down at the LA Auto Show I thought I would stop and share some of my observations and opinions.  I attended to the show to see how each of the OEMs are approaching Social Media and what their future strategy might be. 

From a purely Social Media point of view Ford was the clear winner of the show.  Their use of Social Media savvy “Agents” was brilliant and with more than 80,000 people expressing interest in a car that has yet to be shown to the public, they have proved that Social Media Marketing can be wildly successful when done right.

While Ford clearly “get’s it” several OEMs still have a lot to learn.  We asked each manufacturer’s representatives who was the point of contact or who was in charge of their Social Media initiatives.  Far too many times we had to explain in greater detail what we meant by Social Media.  Many of the OEMs don’t have anyone that specifically handles their Social Media activities.  In the coming weeks I am setting out on a mission to profile each OEM vision for Social Media usage in 2010.  So stay tuned to my blog.

It was also very interesting to see how the OEM’s presented their press information at a show where “Green” was definitely a theme.  Some had kits that were very slick and contained CD’s with photos and documents.  Others used high tech USB devices that contained the materials.  I thought that the most creative and eco-friendly were the ones that simply presented you with a card that had a URL with a username and password. 

Speaking of eco-friendly Hybrids were the stars at nearly every display.  The Chevy Volt had a big introduction and will make its entry in the California market in 2010.  Chevy will distribute 100 Volts to the electric companies and will get their assistance in building hundreds of charging stations throughout the state. 

Overall I really enjoyed the press days at the LA Auto Show.  I am looking forward to discussing Social Media plans for 2010 with each of the OEMs and profiling each on my blog.   As always if you have any questions feel free to call me at 502-689-5370 or contact me at Twitter, I am @dealerist.

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21Oct/090

The road to the sale then and now

 

This month I have been talking about how the ten step sales process or road to the sales has transformed.  I was going through some boxes and found an article that I wrote in the Spring of 2004 for a workshop I did in Raleigh-Durham, NC.  The article was about what I believed to be the ten steps to selling an Internet customer. 
 
So as you read this article keep in mind that it was written in 2004.  I will review and see how we can update even more to take advantage of known trends and technological advances since then:
 
Everyone that's been in the car business for any length of time has been introduced to the ten steps or road to the sale.  It's fundamental for success.  Where the traditional road to the sale was written for and counts on face to face interaction, the Internet process relies on your process and communications skills.  Where your image and personality helped to make a good first impression on the lot, the speed and message of your responses set the stage for the Internet process.
 
Throughout the process on the Internet your ability to communicate via phone and email will directly impact your ability to make the sale.  Simply put, the lot customer is already there and presumably to buy a car.  With an Internet customer you have essentially the same process, however, you have the added steps of getting the customer the requested information and getting them in the store where the two processes merge.  So let's take take a look at what i believe are the steps involved in the Internet sales process.
  1. Receive and Respond
  2. Sell - Self / Process / Dealership
  3. Determine Want / Need
  4. Select a Match
  5. Send / Present a Quote
  6. Follow-Up
  7. Sell / Set the Appointment
Receive & Respond:  As stated earlier the speed and content of your initial response sets the stage and "is" the first impression the customer gets of you and your dealership.  Let's start with speed of response.  Knowing that most Internet customers will submit several requests when shopping for a car, you want to make sure that your response stands out. 
 
While auto responders are perfect for a quick initial reply there are a couple ground rules that you need to follow.  First, keep it brief and to the point.  Second, let them know it's an auto responder.  Just let them know that you received their request and that you will be contacting them very soon.  Even though an auto responder was sent the clock is ticking since Internet customers have become accustomed to immediate information.
 
The content of your real initial response is very important.  For example, if you use a template for your initial response that ask for more information and send it to a customer that submitted a very specific request you  lose all credibility. 
 
Sell - Self / Process / Dealership:  Without face to face interaction you will need to establish rapport and build trust with your timeliness, phone skills and your dealerships process. 
 
Imagine that you're a customer and have submitted requests to four different dealerships.  Of the four only three even respond and two send emails asking when you can stop by the store.  However, one send you a copy of the invoice and and shows you two others car they have that are similar and could save you some money.  Experience tells me that a majority of the time the guy that offered more information will win. 
 
Your emails should not only provide more information but tell how your store's process will save the customer time as well as money. 
 
Determine Want / Need:  You begin to work on this step with your first response.  Each subsequent email should continue to do this until you have established exactly what they are looking for.  This step is fairly basic and simply asking the right questions to get to know them and what they are looking for. 
 
Select a Match:  This is where your morning lot walk pays off.  Knowing your inventory and keeping an accurate inventory list on hand or readily available will help tremendously. 
 
Send / Present Price Quote:  There are many different thoughts on sending a price quote.  Many say absolutely not until they're on the lot, others will only do it on the phone.  If you're reading this then your dealership hired me to help show you how to sell more cars online.  Therefore i am going to focus on what has worked for me. 
 
In eight years of selling to Internet customers I have tried just about everything.  In doing so I have determined that Internet customers are not looking exclusively for the best price.  I believe the majority are looking for a convenient and hassle free process.  They are trying to avoid the old school showroom method.  It was when I started sending out informative price quotes that my sales really took off. 
 
Pick out a car that you have in-stock and that you feel is close match and send them and email with the installed options and your Internet price.  The customer is more like to respond if you have provided them with the options and pricing.  You can also include a car higher and lower to give them options.  If it's not what they want they will let you know. 
 
Follow-Up:  This is where most dealerships fail.  A consistent follow-up plan will do more for your sales than just about anything else. 
 
Remember that Internet customers start looking earlier in the sales process than traditional customers so a follow-up plan is absolutely fundamental to your success. 
 
Sell / Set the Appointment:  I know that there cases where you sold a car to someone out of state  and did the paperwork by mail and had the car shipped.  Those are the exceptions and not the rule.  Most of the time you still have to get the customer in store and we've all heard the expression "that you never get what you don't ask for."
 
In each of your emails and calls always ask for the appointment.  Then send reminders a day or so before the appointment.  
 
At the time there was a distinct difference between what we called an "Internet" customer and a traditional lot customer.  Today that line has blurred so much that it hardly exist anymore.  Today nearly everyone has done some research online.  So for all intents and purposes everyone is just a customer.  
 
Today it's even more important to have a process and with Social Media's increasing influence it's actually easier. 
 
 
Just a thought...

Posted via email from Joe's posterous

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4Oct/090

The power of social marketing

Talk about a bad week, first Toyota recalled 3.8 million autos in what could cost as much as $100 million and then they get sued for "Terror Marketing."  Akio Toyoda even referenced the book "How the Mighty Fall" by Jim Collins, saying that his company was grasping for salvation. 
 
Let me start by saying that this is NOT a bash Toyota article.  What I took from all of this was how Social Marketing has become a primary means of reaching buyers.  In this case Toyota and Saatchi got it wrong in a classic what were they thinking moment.  As a dealer you could use Social Marketing in a less dramatic and more effective way. 
 
Like I said the other day, I would use Social Marketing as today's version of the Meet & Greet. Paul Rushing recently said on his blog that you should look at social sites very much like a cocktail party.  You wouldn't run around a party asking what kind of a car everybody is looking for, and you shouldn't do that on Facebook either.  If you were at a party you would probably just tell people what you do and hand out a few cards.  If someone were looking for a car they would take the conversation further.  That's the way to use social sites.
 
So think about your dealership's efforts from that perspective, are you pitching non-stop?  Social sites and social marketing have the potential to really take your sales to a whole new level, they also have the ability to humble giants.
 
Just a thought...
 
 

Posted via email from Joe's posterous

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1Oct/090

If I had…

I was talking with a friend the other day and both of us use to work in dealership's not too long ago.  We were discussing how awesome it would be to have a store or group today as compared with just a few years ago.
 
Today, most Dealers and GMs not only "get" the Internet many even understand what an important role it plays in the store's overall marketing plan. 
 
Today, there is no need to have a "Floor" sales team and an "Internet" sales team.  Nearly everyone has at some point been online and looked at your website before walking on your lot.  So you should just simply have Sales Consultants.
 
Today, we can do amazing things with the website and inventory.  With a small, inexpensive, video camera you can have short videos about each car online in minutes.  If I were selling cars today, I would have one of these cameras on me at all times.  I would send EVERY prospect I had at least 2 videos. 
  • The first would be me describing the process and why they should buy from me. 
  • The second would be a quick informative, and hopefully entertaining, video walk around. 
 Remember the road to the sale?  Even though there are many versions, nearly all had at or near the top "Sell Yourself."  The first video helps you sell yourself and your store.  The second video addresses arguably one of the most important, yet almost forgotten, part of the sale;  The Presentation.
 
When I first started selling to Internet customers in 1998, the medium did not allow for these critical elements so we as an industry let them slide.  Back then what separated you from the others was if you even responded to their email.
 
Today, if you want to sale cars you had better learn or relearn the New Road to The Sale.  I will be addressing what I believe to be today's version this month. 
 
The recovery seems to be picking up steam so follow all of my post in October to help you get ready to sell.  Their gonna buy a car, might as well be from you...
 
Just a thought...
 
As always if you have any questions please do not hesitate to call me 714-937-1239 x280. 

Posted via email from Joe's posterous

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27Sep/090

Demographic Differences Between Facebook and MySpace

Wow, I just read an article on Mashable that had some very interesting information.   
 
First thing that caught my eye was that "On-Line Ad Spend" across all sites was down 26% for the automotive sector...wow.  I don't think that I am alone in thinking that it was up because dealers and OEMs have been scaling down their traditional ad spend.  But get this, Ad Spend on "Social Network" sites was up 178% for the automotive sector. 
 
The other thing that caught my eye was title of a referenced article "The More Affluent and More Urban are More Likely to use Social Networks" that reported that Facebook users have a largely upscale profile. In fact the top third of lifestyle segments relative to affluence were 25% more likely to use Facebook than those in the those in the lower third.
 
The bottom third segments related to affluence were 37% more likely to use MySpace than those in the top third. 
 
Additionally the report showed that users of Facebook were also much more likely to use LinkedIn, a network geared towards business and professional networking, than those who use MySpace.
 
Another referenced study by iStrategyLabs reported that Facebook's userbase is quickly getting much older.  The number of Facebook users aged 25 to 34 has grown over 60% and the number of users 35 to 54 has grown a whopping 190%.  Comparatively, the number of users aged 18 to 24 increased only 4.8%.
 
As the article clearly states "Facebook, simply put, is not a young site anymore."  The article stated that to a site like Facebook that lives on advertising this is a big deal.  I think it's a huge WAKE-UP CALL to dealers across the country. 
 
This economy is arguably the toughest we may see in our lifetime, and technology has rapidly changed the way we inthe car business reach customers.  The articles and studies referenced above should clearly signal that the Internet has truly become the primary means of reaching today's buyers.  The good news is that it's easier and more cost effective than any other method and according to many it is clearly where the buyers are. 
 
In conclusion dealerships that find a way to integrate Social Networks into their marketing plan will be poised to reap the rewards that the upcoming recovery will most certainly bring.
 
Just a thought...

Posted via email from Joe's posterous

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25Sep/090

Magic Bullets?

Another day has come and gone and reading the late news stories I see all kinds of articles but one that really jumped out is by Phil Sura on Digital Dealer. 

Phil rightfully pointed out that;  “This is similar to the Internet manager or general manager looking for the one idea that will take their Internet department to superstar status. That one idea doesn’t exist. The market is too complex.”

He went to say that;  “retail leaders in the automotive Internet space are constantly making adjustments to modifying their approach since the market is evolving. You may have the perfect SEO strategy one day and Google changes the analytics and three dealers across town jump ahead of you with the key searches. I would suggest that it is research and time on the “course,” which leads to a better understanding of the game, which leads to a stronger scorecard. “

Great advice Phil.  Start out with a plan, work the plan and adjust as you measure your results. 

Just a thought…


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