best practices Archives

Will You Still Love Me Tomorrow?

November 18, 2013 By Arnold Tijerina

Salespeople often get frustrated and discouraged by their inability to reach online customers that submit a lead. Many have processes in place that send auto-responders, templates, schedule tasks and impose time limits. Despite the time and effort spent creating quotes, emailing and attempting to reach customer, frequently there is no response. The customer does not answer the phone or return the call.

Why?

Let’s examine this from the customer’s perspective. They’re at some point in the buying process. Whether they’re just beginning their research or are ready to buy, they’ve either landed on your website, or any of the countless car shopping portals and microsites which have calls-to-action for price quotes and information. They submit their information with certain expectations. There is an expectation of reciprocity on the part of the customer. They’re giving you their information in return for you providing them a price quote or answering their questions. They don’t know that their information is being sent to 4 dealerships. Very quickly, auto-responders from these dealerships that contain generic messages explaining why they should buy a car from them bombard their e-mail inboxes. Sadly, most of the time these e-mails don’t contain the actual pricing or answers they were seeking.

Shortly thereafter, their phone starts ringing. These calls are continuous throughout the day, from dealerships calling all-hours of the day, regardless of appropriateness of the timing, such as right in the middle of dinner or at 8:00am. The consumer receives a string of voicemails from salespeople asking for return calls. In the beginning, they may plan on returning some calls. However, as the voicemails continue along with an overwhelming flow of manual e-mails sent by the salespeople and automatic e-mails sent by the dealer’s CRM, they start to get annoyed. Occasionally, they get the answer or price quote they were seeking. However, it’s buried amongst a barrage of e-mails so is easy to miss. Frequently, the questions are not answered and pricing never sent. What they do get, however, is a ton of irrelevant e-mails, invitations to come to the dealership and voicemails from salespeople. Most templates (manual, automatic and automated) are written as if they were sent by the ISM so to the customer, it looks like this salesperson is continuously e-mailing them yet never providing the information they requested or answering their questions. They get frustrated in the process.

Imagine if you had submitted a lead to a company you wanted information from and suddenly started getting bombarded by e-mails and phone calls, but received no actual information or answers. Wouldn’t you get annoyed?

In no way am I implying that you shouldn’t attempt to call a customer. Of course you should. You just need to be aware of the time of day and what normal people may be doing at that time. Ensure your timing is appropriate. Yes, you should respond quickly to leads. I’ve found that responding to a customer in less than 2 hours can increase your closing ratio. However, turn off your auto-responder and make your first e-mail one that is personal and includes either the quote or information they requested. By doing this, you’ll immediately stand out from the pack. Customers will appreciate it and be more receptive to you. When you leave a message, tell them that you just sent them an e-mail with the pricing or answers they requested and would like to verify they received it. That you would like to know if they need additional information instead of a generic “Call me” type message.

When a customer is on your lot, is the first step in your sales process to tell them how wonderful your dealership is? No. It’s typically to meet and greet them. Why would it be any different online?

In today’s age of transparency and easily accessible instant information, car dealerships are the one retail business that doesn’t conform. Change the way you interact with your potential customers and be different then your competition. You’ll see more responses, build rapport faster and see your closing ratios increase.

[Update 11/19]: This comment was made when someone shared my post. I thought it was relevant to hear an actual consumer chime in.

All Salespeople Are Liars

May 9, 2012 By Arnold Tijerina

For almost 3 years, I have been posting a comic every day on my Facebook account. I do this because I like to think I bring a smile to at least one person a day. I look through comics every morning in my attempt to share a “good” one. Yes, believe it or not, I do put effort into choosing which comic I post. I’ve started noticing a disturbing trend. Many comedians use reality-based comedy and it seems this also translates into comics. Syndicated comics, by their very nature, are designed to be funny and appeal to the masses. I see comics like these below on a regular basis and, personally, I do not find them funny. In fact, quite the opposite.

We all know that the history of sales (especially car sales) has earned us a bad and, some would argue permanent, reputation amongst consumers as being deceitful, manipulative and… well.. liars.

I think everyone can agree that, as an industry, there have been a lot of changes in how car dealers do business. Some of these perception-shifts have been due to the fact that consumers not only have more access to information but also because they have access to more dealers. In the past, consumers were limited to dealers in their local area. The number of dealers they could realistically get prices from and shop was limited by how many they could physically visit and how much time they had on their hands.

The increase in the amount of information available to consumers brought the ability to access more dealers in less time. It has also brought consumers a quick and easy way in which to analyze not only different prices via internet quotes but also to identify who they want to do business with. There have been many debates and opinions over time in various automotive industry forums on how dealers should interact with customers and how much information they should share as well as hostility towards consumers, vendors, OEMs and websites for sharing information which effects a dealer’s ability to profit from a sale. In my opinion, this only fuels the stereotype. Consumer’s have access to this information and it isn’t going away. Attempts to take it away and/or make it less available only serve to promote the negative image. Consumers already don’t trust dealers. Hiding (or reducing) the amount of information available to consumers will only make them trust dealers less.

No matter what you do, you will not be able to change this stereotype for our industry as a whole. You can, however, change how you do things at your store… which is a step in the right direction.

Here is my opinion on best practices:

Be transparent. If a customer asks for information, give it to them. It doesn’t matter if they ask you in person, over the phone, via an e-mail or via a 3rd party lead submission. Chances are they already know the answer. Any attempt to dodge, evade or avoid answering the question will make the customer think you have something to hide.
Establish and maintain a solid online reputation. Yes, consumers are increasingly looking at the various review sites and using that information to help decide whether to do business with you.
Give consumers “real” numbers up-front. Many consumers already know most of them anyways. Don’t try to undervalue trade-ins or manipulate numbers on a pencil. The days of “scraping them off the ceiling” are over. This is an “old-school” mentality and its only outcome is detracting from your dealership’s integrity. They may still buy the car but they won’t leave with a great impression of your salespeople or dealership. Of course consumers are looking for a “good deal” but, I believe, they appreciate honesty.
Get rid of bad apples. If you have salespeople or management staff who lie to customers, play games, or fudge numbers or information. Fire them. They will only hurt you in the long run. Customer don’t have loyalty because you didn’t earn it from them.
Take care of your customers. Your customers are your life-blood. Dealerships have more income potential in fixed-ops than in sales. Treat them like royalty and they will come back.
Pay attention to your customers. Many dealerships never contact customers post-sale until the dealer believes they may be in-market again. Follow-up processes should not simply be about selling them another car. It should be about appreciation. Call them on their birthdays and anniversaries. You have a better shot at selling them another car by not trying to sell them another car.
Stop treating salespeople as expendable. Most customers don’t expect their salesperson to work at your dealership long. Be a company people want to work for. Reward and encourage employees to stay around. Get rid of managers that are quick to replace salespeople. Customers will notice.
Engage your customers. Don’t just pop in and out of their lives to tell them about your upcoming sale. Once you’re in their lives, stay there. Use social media, blogs, newsletters, customer appreciation events, and any other tools you can to remain not only in their lives but in their minds.

While doing these things won’t change the perception of our industry as a whole, it CAN change the perception of the most important person in existence….

Your customer.

Tip: Selling Cars using eBay Motors Local Market

January 24, 2012 By Arnold Tijerina

In my experience, I’ve heard many dealers complain about eBay Motor’s Local Market service for dealers. For those who don’t know what it is, it’s NOT a typical auction-style listing service. It will post your entire inventory on eBay and offer shoppers two choices on your vehicle page on eBay – “Make an Offer” or “Contact Seller”.

One of the coolest things is that, different from a normal eBay message from an interested buyer, you actually get full contact info for the consumer as they have to be logged into eBay to complete the action and eBay passes along this information to you straight into your CRM. So if someone contacts you and asks you a question, you have the ability to follow up with them just like any other lead.

One of the biggest complaints I hear from dealers are that they continuously get ridiculous offers for vehicles – like an offer of $1,000 for a $10,000 vehicle – and they don’t want to waste their time. They believe there is little value in having their inventory on eBay because their perception is that all they get are stupid offers and little else.

What I ask dealers when they make this complaint is “If you had someone in your showroom making you an offer of $1,000 on a $10,000 car, what would you do? Would you tell them to hit the pavement?” The typical answer is “I’d sit down with them and work the deal starting off with explaining why that offer is not realistic.”

Keep in mind that, despite their unrealistic offer, these are people, first and foremost, shopping for cars. On top of that, out of the millions of cars listed on eBay, they happened to land on yours. Not only did they land on your vehicle, they took the time to contact you and/or make an offer on that vehicle – realistic or not.

Anyone offering you any amount of money for a vehicle is, in reality, starting negotiations. I’m sure you get unrealistic offers all the time from showroom customers in the box with your salesperson. You ask your salespeople to get a commitment when filling out the initial foursquare and, sometimes, those offers are unrealistic. These leads aren’t any different except for the fact that they aren’t in your showroom.

If you get an unrealistic offer on eBay, instead of looking at it like a waste of your time, realize that, chances are, this person is farther down the funnel than most of your internet leads. They may be higher maintenance and require more work than your typical internet lead but by making the effort instead of just declining their offer and dismissing them as a “jack”, you’ll find that you’ll be able to convert some of those ridiculous offers into sales.

Who Is Tapping YOUR DMS?

January 5, 2012 By Arnold Tijerina

There is a lot of controversy in the automotive industry regarding which vendors are pulling data (customer or transactional) from a dealer’s DMS and then re-selling it to vendors like TrueCar and others. (I guarantee you that TrueCar is not the only vendor that’s using your data against you, FYI)

[Note: For non-automotive industry readers: DMS stands for Data Management System and is what contains all customer, financial, vehicle and transactional data (ie. all that information on the credit application you filled out when you bought that car). There are dealer vendors (website companies, 3rd party services like TrueCar.com, Edmunds.com, Cars.com, etc.) that are given access to this information for various reasons.]

Consumer privacy laws and red flag compliance keep getting stricter and stricter when it comes to customer personal information and how it needs to be protected. This is all well and good but I’d argue that most consumers don’t care about their personal information. They may say they do but actions speak louder than words.

An industry acquaintance shared a website yesterday that assists people in seeing, and cleaning up, which apps and websites are accessing your various social media accounts. (You can find it at http://mypermissions.org/ )

As I played around with it, there wasn’t much in there that surprised me but I’m also very diligent about which apps I allow to access my information and I periodically monitor them to remove permissions for apps or websites I no longer use. Even though I do that, there were a few in there that I was surprised to see. I guarantee you that a normal consumer has way more apps and websites accessing their personal information than I do – games, iPhone apps, websites with social media log-ins, plug-ins etc. Most require (or ask) to access your personal information to use their service. How convenient is it to use Facebook Connect? It’s super-easy but, every time you do, you are giving yet another website or app permission to access your personal information – essentially trading your information for convenience and/or the ability to utilize that particular website.

As I thought about this collection of different social media sites – Facebook, Twitter, G+, LinkedIn, etc. – it started to feel more and more to me like this was MY OWN PERSONAL DMS.

These accounts – singly and collectively – contain more personal information about me than any other source including the government.

Those social networks are free to use, but are they really? In one sense, they do exactly what your vendors are doing to your dealership’s DMS – selling your personal information for profit. Most consumers know this on some level and have chosen to allow that access in exchange for their information on some level. Sure, there are times when a consumer outcry occurs – say when Facebook changes a privacy setting – but those quickly go away mostly because the consumer modifies the permissions again (ie. who can see your posts or other activity on Facebook).

So consumers do care about protecting their information, posts, etc. from people on an individual level, what they’re not shielding themselves from or thinking about is what companies are getting their personal data (either from the sites themselves or from outside apps and websites that they’ve allowed access) and what those companies are doing with it.

So, while we’re in an uproar about what vendors are getting access to customer data and what they are doing with it, keep in mind that you also have your own personal DMS and, just like you should care who has access to your customer’s information, you should care about who has access to your own.

Fantasy Guru’s Social Media Fail

December 23, 2011 By Arnold Tijerina

My brother is a fantasy sports freak. He especially gets into football. Every Sunday, you can find him firmly planted in front of my TV watching my Sunday Ticket subscription with his laptop in his lap cycling through his many teams refreshing his fantasy football scores. You’d think he was in the stadium sometimes as he yells (or cheers) at the television. He’s also hyper-competitive.

We play in one league together and, at any point in time, he knows, off the top of his head, all the league’s statistics. Who’s in first place..Who has the most points..Playoff scenarios..etc. He’s made 74 roster changes whereas the rest of a 12 team-league has made a combined average of 11 moves (and that’s with my above-average 37 moves included). I stopped checking Yahoo for my scores and info. I just ask him now.

He’s been a fan of, and subscriber to, a premium fantasy football website named FantasyGuru.com run by John Hansen who has been affiliated with major companies and personalities including hosting a radio show, SiriusXM Fantasy Sports Radio with FoxSports.com’s Adam Caplan which was so popular that it became a seven-day-a-week program during the NFL season which included senior writers Matt Camp and Joe Dolan. He’s participated in celebrity drafts including Ashton Kutcher, has published on ESPN.com, and has appeared on television in projects with NFL.com, NFL Network, DirecTV, ComCast SportsNet, and even a cameo on an episode of FX’s The League.

This week my brother is particularly passionate as he’s playing his big brother (me) in our league’s playoffs. He uses the advice and statistics from this website to help him analyze players, waiver wire pickups, and to assist him in choosing his lineup each week.

He’s not a social media person. That being said, he does have a Twitter account. It has only 1 follower (me) and he’s tweeted only 4 times. The ONLY reason he has a Twitter account is to watch the tweets of @Fantasy_Guru to get up-to-the-minute injury reports and news.

So, in this weeks projections, one player – Donald Brown of the Indianapolis Colts – was projected to do well on a combined list of running backs and wide receivers. Long story short, the player hardly played at all and ended up with low points.

Because of his passion and the desire to win against his big brother and advance to our league’s championship, he tweets this out to the Fantasy Guru twitter account:

Keep in mind that this guy (@Fantasy_Guru) has over 25,000 followers. He gets mentioned and/or tweeted to continuously. My brother is square in the middle of his demographic – hyper-competitive people passionate about fantasy football. It’s hard to believe that his analysis isn’t challenged or critiqued by other people via Twitter. The guy isn’t always right but I don’t think anyone really believes he has a crystal ball.

For whatever reason, he took exception to this particular tweet and sent this direct message in response:

My brother only followed him and has only 1 follower. @Fantasy_Guru has 25,009 followers and follows only 266 and (obviously) doesn’t follow my brother. I understand that. He follows sportswriters, teams and players to get information which he then passes along to his subscribers/followers and he does it very well.

First, seeing as this person runs a BUSINESS in which he charges ~$30 per year, you’d think he’d be more careful alienating and lashing out at people. Notice that he chose to direct message my brother rather than reply publicly. This was particularly frustrating to my brother since he couldn’t respond to the message since @Fantasy_Guru doesn’t follow him. That’s certainly not a way to treat paying customers and a poor choice on his part. My guess is he chose to direct message because by replying like that publicly would make him look bad.

Little did he realize that my brother has been a subscriber of his for 11 years and has referred many people to also subscribe to his service. While $330 in income may not mean anything to John Hansen, it is definitely a luxury to my brother. The amount of money doesn’t excuse abusing your customers.

It took him about 10 seconds to destroy a loyal customer. Not a smart business decision.

Now my brother follows nobody.

Social media is a powerful medium. No matter what size your business is, customer service matters. Do you think Southwest Airlines or Ford would ever think about responding to a customer this way?? Imagine this DM coming from Southwest: “You set up a Twitter account just to complain? Go fly another airline.” Not going to happen. Any employee who did that would be fired instantly. Ask Scott Monty or Christi McNeill.

As the old saying goes, “A happy customer tells 10 friends, an unhappy one tells everybody.”

Now thousands of people will know that he apparently doesn’t value his subscribers.

[UPDATE: Apparently Matt Camp read my article. His response was to make fun of a math mistake (which I’ve since edited). I guess he values his audience just as much as John Hansen does.

[UPDATE 2: I guess John Hansen got annoyed with my tweets as he’s decided to block me. Can’t take the heat?]

Can Your Dealership Be Too Social?

November 16, 2011 By Arnold Tijerina

I hope dealerships realize that a social media presence is necessary these days. Hopefully, there is someone at your dealership handling this. More likely than not, this task has been assigned to someone which this is NOT their primary responsibility.

That being said, is there a thing as being “too social”?

There are many social networks out there and new ones popping up everyday. In a perfect world, dealers would have a dedicated person that could keep up with and manage them all by posting new content (preferably original) via blogs and all the social networks with their listening ears on. Most dealers, however, don’t have the budget for this type of person. It’s hard enough for ME to keep up with them all much less to ask a dealer to.

Would it be better if a dealer picked a few and concentrated on being really good at those instead of spreading themselves so thin that they aren’t managing or maintaining an active presence on them all? It’s not enough just to have a Facebook page or G+ page or Twitter account, you have to engage and keep fresh content on it.. nurture it.

Right now we have Facebook, Twitter, G+, Google Places, LinkedIn, YouTube, … and the list goes on. Now Microsoft is about to enter the game with Microsoft Socl.. yet another social network to maintain. Right now, there are 205 websites listed on Wikipedia as “social networking sites” (Yes, I counted them). You can’t effectively manage all of them (and most of them wouldn’t apply either) but you do still have to figure in managing your online reputation through sites like Yelp, DealerRater, etc as well as the location-based services out there like Foursquare.. Oh, and don’t forget about blogging!

It’s exhausting to think about, isn’t it? I promise it’s just as exhausting to actually do.

My advice: If you don’t have (or can’t afford, or don’t want to afford) a person that can actually manage this full-time, pick a few sites mixing up social, reputation management, location-based and a blog… and be good at them.

Consumers Want Video Walk-Arounds. Here’s Proof!

October 27, 2011 By Arnold Tijerina

In my days with HomeNet Automotive, a new feature was released that allowed our customers to upload live video into their inventory for distribution to the third-party websites that would allow it.

Being in sales, I wanted to have a real video in which I could show potential clients the possibilities and an actual example of what one would look like so I enlisted help from a friend of mine who’s a GM at a nearby dealer group to allow me to video one of his employees doing a walk-around.

After filming it, I used it here and there when showing a demo of IOL Pro, HomeNet’s core inventory management software. After I left HomeNet Automotive, I promptly forgot about it.

Recently, I came across it in my YouTube video list and was ASTONISHED to see that it had almost 12,000 views in about 21 months! That’s an average of 570 views per month! This is without ANY exposure or publicity whatsoever. It was not on a blog post or anywhere. I can only guess that these 12,000 people came across this video via keyword searches either within YouTube or via a Google search. I did a quick keyword search and was astonished to see that my non-distributed or promoted video ranked 2nd in Google organic search results!

Imagine if this video had actually been a part of that dealer’s actual inventory on their website as well as all the third-party sites. Given that this was a new vehicle, it could have been added to all of the listings for this model and year vehicle in their inventory. They could DOMINATE Google searches for their brands.

The proof is in the pudding. I highly doubt the people watching these videos decided randomly to watch a video walk-around of a Toyota Venza. It’s more likely that these were consumer’s interested in that vehicle.

This is advertising GOLD and cost them absolutely nothing.

If you want to watch it, here’s the video: