Replies to This Discussion

Permalink Reply by NANCY SIMMONS on August 25, 2010 at 10:15am

Fran, wow! You are so right! I really appreciate your 2 cents on this! Advertising is one of those things that is really frustrating dealers right now...what works? what doesn't work? The dynamics of the social media world is changing so rapidly...Facebook is replacing email, Internet is replacing newspaper and evening news... Texting is replacing the traditional phone call.... What a great opening to a whole other avenue..... Return on Involvement vs. Return on Investment.... Looking for everyones "2 cents" on this matter.....

Thanks Fran...You are an expert in so many ways!

Fran Taylor said:

I believe it is about percentages. If you stay on a fixed budget you ususlly stay the same year after year and wait for the economy or a selling season. I have nothing against advertising people. How ever radio , tv, and news paper doesn't work like it did five or ten years ago. What are the odds that a dealer can pick a day,time, and a station that a buyer is going to be listaning or watching a tv show. Slim to none. I know dealers that spend less than $10,000 a month on one promotion and sell 25 to 50 units a month like clock work. They do other advertising as well.I know of a way that if a dealer has 15 sales people they can sell 15 a month without spending a dime. It's not how much you spend it's where. I helped a dealer go from 45 to 196 cars in 20 months. The Toyota store only spent $22,000 that month on advertising. Thats $112 per car that month. I ended up doing an article about them in Auto Success Magazint. All I can say is if you aren't happy look for a new way that has a proven record and go for it. There is an advantage traveling around the USA doing training . You get to see what is hot and what is not. That's my two cents. Want to know more just ask and I will be happy to help. Good luck to all.

NANCY SIMMONS said:

Thanks again Agustin,

Let's take them into consideration one at a time.... Let's talk about advertising first....What works? What is our actual return on investment? Are we looked into agreements with advertising agencies? Are we in contract with the right advertising agency that fits our needs. Are they in touch with the dynamics of our particular store, location, demographics, community, sales trends, niche markets, etc..? There is a lot here to talk about! Thanks Agustin! Have a great day!


Agustin Vasquez Jr said:

After buttoning up the mail process... Controlling your inventories, employee compensation, and your advertising are the next biggest expenses that your dealership will have.

Permalink Reply by Rob Hagen on August 25, 2010 at 11:10am

Social media is the future but currently dealers are struggling to find the right fit. Most don't have the manpower to implement a proper social media strategy and are using social media as an extension of their offline advertising. This approach can actually do more harm than good. Imagine your sitting around with friends and someone you didn't know hopped in and tried to pitch you their product. Would you listen or would you get aggravated? Now imagine a friend of yours says I just started selling cars, what will you response be? What kind? Where? You will want more information.

Return on involvement is going to be a measuring stick in the future because statics show that there is a direct correlation between amount of involvement and lead generation. The more content you create and share the more people want to get to know you better, the more you are seen as an authority.

Calculating a true return on investment can be hard sometimes in social media but if you set goals and implement programs designed for those goals, you will increase your bottom line. With social media, targeting increased service business is usually the best place to start because you can typically have a faster effect. As an example, we implemented a plan to focus on Google reviews from service customers with one of our clients and in the plans first full month, the shop gross went from on average of $90k per month to $143k that month. Now I am sure it is not all contributed to the program we implemented but how can you deny it making a difference?

Permalink Reply by NANCY SIMMONS on August 25, 2010 at 11:32am

Rob, You blew me away with this response! I agree with you 100%. In today's economy dealers are looking for the "quick fix" with "immediate results".... Be patient...Engage yourself with Social Media...Sit back...Strap yourself in... and hang on for dare life...because the ride you will be on along with your thousands of new "friends" (clients) will be more thrilling and exciting than you could have ever imagined!!!!!

Rob is the CEO of Next Generation Dealer ... If you have not considered implementing a Social Media tool in your dealership or you have with poor results, consider outsourcing to the experts.... You will have results in thousands of new "Raving Friends"!
Rob Hagen said:

Social media is the future but currently dealers are struggling to find the right fit. Most don't have the manpower to implement a proper social media strategy and are using social media as an extension of their offline advertising. This approach can actually do more harm than good. Imagine your sitting around with friends and someone you didn't know hopped in and tried to pitch you their product. Would you listen or would you get aggravated? Now imagine a friend of yours says I just started selling cars, what will you response be? What kind? Where? You will want more information.

Return on involvement is going to be a measuring stick in the future because statics show that there is a direct correlation between amount of involvement and lead generation. The more content you create and share the more people want to get to know you better, the more you are seen as an authority.

Calculating a true return on investment can be hard sometimes in social media but if you set goals and implement programs designed for those goals, you will increase your bottom line. With social media, targeting increased service business is usually the best place to start because you can typically have a faster effect. As an example, we implemented a plan to focus on Google reviews from service customers with one of our clients and in the plans first full month, the shop gross went from on average of $90k per month to $143k that month. Now I am sure it is not all contributed to the program we implemented but how can you deny it making a difference?

Permalink Reply by Rob Hagen on August 25, 2010 at 11:51am

Thank you for the kind words Nancy! On of the things we see all the time on our clients social media platforms are comments like "Your the best service department in the SE" or "My next car will be bought from you" or "Your the best". How do you put a price tag on something like this? A recent study showed that a positive review was equivalent in exposure to 200 traditional media placements. Imagine how much more a dealer can put on the NET line when done properly! As Nancy said, it is not a quick fix but over time, it will prove to be a great use of marketing dollars.

NANCY SIMMONS said:

Rob, You blew me away with this response! I agree with you 100%. In today's economy dealers are looking for the "quick fix" with "immediate results".... Be patient...Engage yourself with Social Media...Sit back...Strap yourself in... and hang on for dare life...because the ride you will be on along with your thousands of new "friends" (clients) will be more thrilling and exciting than you could have ever imagined!!!!!

Rob is the CEO of Next Generation Dealer ... If you have not considered implementing a Social Media tool in your dealership or you have with poor results, consider outsourcing to the experts.... You will have results in thousands of new "Raving Friends"!
Rob Hagen said:

Social media is the future but currently dealers are struggling to find the right fit. Most don't have the manpower to implement a proper social media strategy and are using social media as an extension of their offline advertising. This approach can actually do more harm than good. Imagine your sitting around with friends and someone you didn't know hopped in and tried to pitch you their product. Would you listen or would you get aggravated? Now imagine a friend of yours says I just started selling cars, what will you response be? What kind? Where? You will want more information.

Return on involvement is going to be a measuring stick in the future because statics show that there is a direct correlation between amount of involvement and lead generation. The more content you create and share the more people want to get to know you better, the more you are seen as an authority.

Calculating a true return on investment can be hard sometimes in social media but if you set goals and implement programs designed for those goals, you will increase your bottom line. With social media, targeting increased service business is usually the best place to start because you can typically have a faster effect. As an example, we implemented a plan to focus on Google reviews from service customers with one of our clients and in the plans first full month, the shop gross went from on average of $90k per month to $143k that month. Now I am sure it is not all contributed to the program we implemented but how can you deny it making a difference?

Permalink Reply by Heather Wirtz on August 25, 2010 at 12:37pm

This is a fantastic discussion. I truly enjoy learning all the different perspectives here, so much insight!

I know the common quote with advertising is, "Half the money I spend on advertising doesn't work, I just don't know which half..." Like Rob said, getting all of your positive testimonials in one place is priceless and will help you build that repore with the next customer. When you open the posting gates, you have to make sure you have the sales team to keep them positive, because negative can come too. Word of Mouth, even in 2010 is still the most positive tactic of all.

As we watch our world and industry evolve so quickly and see traditional media strategies change overnight, it can feel daunting to know how to increase your business. The industries we are currently in - automotive dealerships and the agencies who advertise for them - are in a conundrum of a boat together. The trust levels and sales tactics used out there by dishonest business people create a lack of trust for us all. Those of us who are passionate about what we do and the integrity we have continue the uphill battle of gaining that trust that is needed for longevity in relationships. I feel like I go out there fighting the good fight of how wonderful a partnership can be. And successful.

Wendall had an excellent point that I agree fully with. Partnership. You have to feel confident that your partner is innovative yet consistent. Always moving socially to the correct media, yet always keeping your identity consistent. Creative yet efficient - you wouldn't want them to create the best plan ever but give you a price tag that sells the farm. The biggest factor is trust and results. You have to trust that your agency wants you to succeed, and that they can give you the results you deserve. A true ROI cannot exist unless you work together.

In my business, we launch hypercasting, which is a site dedicated to lead generating sales using effective media drivers to it. The internet is where 90% of everyone go before a car purchase so we are there 24/7 with variable video telling the compelling reasons to buy from our client. Thanks to the success of it - I can show stats backwards and forwards. I can tell you what second they watched the video until, or when they filled out the form, or who clicked on and the didn't fill the form.... etc etc. But, if I don't know how many cars you sold, I don't have true ROI. And I love ROI. For the clients that do share this, it makes me feel so happy for them, that we could assist in their success.

Permalink Reply by NANCY SIMMONS on August 25, 2010 at 1:19pm

Heather~

I have to say WOW to you as well... Thank you so much for this eloquent and very informative commentary! You and I share the exact same mind set when it comes to a trusting relationship...Isn't that the most inportant thing in any business or personal relationship as well? Please stay engaged here as your observations are so current and actual....would love to hear more!!!!

Have you joined the group Where Oh Where have the car salespeople gone? I started a discussion there as well today regarding integrity and changing the perception of the car folk... Please join in...would love to hear from you!



Heather Wirtz said:

This is a fantastic discussion. I truly enjoy learning all the different perspectives here, so much insight!

I know the common quote with advertising is, "Half the money I spend on advertising doesn't work, I just don't know which half..." Like Rob said, getting all of your positive testimonials in one place is priceless and will help you build that repore with the next customer. When you open the posting gates, you have to make sure you have the sales team to keep them positive, because negative can come too. Word of Mouth, even in 2010 is still the most positive tactic of all.

As we watch our world and industry evolve so quickly and see traditional media strategies change overnight, it can feel daunting to know how to increase your business. The industries we are currently in - automotive dealerships and the agencies who advertise for them - are in a conundrum of a boat together. The trust levels and sales tactics used out there by dishonest business people create a lack of trust for us all. Those of us who are passionate about what we do and the integrity we have continue the uphill battle of gaining that trust that is needed for longevity in relationships. I feel like I go out there fighting the good fight of how wonderful a partnership can be. And successful.

Wendall had an excellent point that I agree fully with. Partnership. You have to feel confident that your partner is innovative yet consistent. Always moving socially to the correct media, yet always keeping your identity consistent. Creative yet efficient - you wouldn't want them to create the best plan ever but give you a price tag that sells the farm. The biggest factor is trust and results. You have to trust that your agency wants you to succeed, and that they can give you the results you deserve. A true ROI cannot exist unless you work together.

In my business, we launch hypercasting, which is a site dedicated to lead generating sales using effective media drivers to it. The internet is where 90% of everyone go before a car purchase so we are there 24/7 with variable video telling the compelling reasons to buy from our client. Thanks to the success of it - I can show stats backwards and forwards. I can tell you what second they watched the video until, or when they filled out the form, or who clicked on and the didn't fill the form.... etc etc. But, if I don't know how many cars you sold, I don't have true ROI. And I love ROI. For the clients that do share this, it makes me feel so happy for them, that we could assist in their success.

Permalink Reply by Nicolas Warren on August 25, 2010 at 3:48pm

I agree with you, Nancy. Rob is someone who "Gets It."

It seems as though most GMs have a 30 day attention span and the owners that are the ones truly concerned with the next season, next year, next economic swing. However, GMs have their finger trigger and I know, without a doubt, that today, in 2010, social media is overtaking nearly all other forms of traditional media.

Every thing has a cost, but how do you put a dollar VALUE on a Facebook group? What about a CRM? It would be remiss to not allocate the proper funds to technology, social media, and fun. These are the trends that will be driving the future of business and used to acquire new loyal customers.

Permalink Reply by NANCY SIMMONS on August 25, 2010 at 4:08pm

Nicholas...Right on....I can see Rob is not the only one that "gets it"~ You, I am certain, are a superstar!!! Thanks so much for the comment!

Nicolas Warren said:

I agree with you, Nancy. Rob is someone who "Gets It."

It seems as though most GMs have a 30 day attention span and the owners that are the ones truly concerned with the next season, next year, next economic swing. However, GMs have their finger trigger and I know, without a doubt, that today, in 2010, social media is overtaking nearly all other forms of traditional media.

Every thing has a cost, but how do you put a dollar VALUE on a Facebook group? What about a CRM? It would be remiss to not allocate the proper funds to technology, social media, and fun. These are the trends that will be driving the future of business and used to acquire new loyal customers.

Permalink Reply by Mark Ragsdale on August 26, 2010 at 11:26am

I would like to see dealers focus more on reach and frequency numbers in their electronic media. Since traffic measurement proves to be more fiction than fact in most stores, dollars invested to purchase quantifiable reach and frequency numbers measured against sales is the quickest way to put a finger on your advertising effectiveness IMHO.

Blessings,
Mark

Permalink Reply by NANCY SIMMONS on August 26, 2010 at 11:34am

Awesome, Mark!

Thanks and many blessings to you as well!
To think all those years we worked so close to each other, demographically, and Walter and your dad were such good friends, we never really met! I would have loved to network with you through the years...I would be way ahead of my game now, if I had!

Thanks!

Permalink Reply by Mark Ragsdale on August 26, 2010 at 11:50am

I am betting the other way.... If only I had YOU for a CFO when I was chasing those stores !!!

NANCY SIMMONS said:

Awesome, Mark!

Thanks and many blessings to you as well!
To think all those years we worked so close to each other, demographically, and Walter and your dad were such good friends, we never really met! I would have loved to network with you through the years...I would be way ahead of my game now, if I had!

Thanks!

Permalink Reply by Craig Lockerd on August 30, 2010 at 4:44pm

As most of you know I/We are a vendor to Dealerships across the U.S. ,Canada and Puerto Rico.Nancy I can so relate to the "sell one more car" thinking,we both used it to sell dealers what we do and also jusify spending, "Heck its just one more recruiting/training campaign" and as you said when this amazing opportunity called "recession" came about we as a company needed to turn ourselves upside down and inside out.Reinvent who we are as a company. "Do we truly have to have a water cooler?" Heck I used to have a massage therapist come in on Fridays and give everyone in the building shoulder and neck massages....geez, just thought of that one.
Point is NOW I open every piece of mail,I ask those questions of everyone almost everyday,Kept every key,must have employee,they do more than "just their job"
Expenses cut 50% from 07 and back,revenue off 40%...do the math. 2010 nut will be covered by end of Sept!

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