Automotive Advertising Agency

One of our biggest success strategies is promptness. We're always chasing after it. More speed equals more action which creates more results. But speed doesn't means always performing the things in faster manner. Sometimes the most speed can be acquired from opting the best place to focus your time, energy and dollars. We call this... looking for the Closest Money.

We are constantly working and refining success strategies and promoting ideas like these to help our private clients and members get more done and have a business and life that more ESP - Enjoyable, Simple and Prosperous. Nowadays we don't expect you to spend all your precious time in marketing and refining the success strategies which we do it in the regular basis. BUT we do expect you to take the suggestion we give you because we're boiling it down for you and hopefully making you think about things you wouldn't have thought about otherwise, challenging you to do things you wouldn't normally do and making your brain work in ways it doesn't naturally.

The Closest Money Strategy is something so simple and so critical to your car dealer marketing and sales success but we don't know if we've mentioned here in this column before. We at least identify we haven't made a BIG enough deal about it here. We are only going to be scratching the surface of this concept here... but today it is essential and if you aren't doing this you need to start immediately leveraging this opportunity for speed!

What we've identified recently is a honey-hole for dealers that quite possibly could be the closest money for you. So I'm certain you're asking yourself... "Jim & Travis, what are you talking about??"

We're talking about successfully and methodically collecting your prospects' and customers' contact information-including email address and leveraging it fully. That means MEANINGFUL communication dispatched regularly so you can build authentic relationships with your customers.

Many of the people who market over the internet understands this concept. But many sellers we encounter do not get the power of this. You need to be actively creating & using a database. Your database is GOLD! Most dealerships collect their customers' contact info when they buy something and some do a good job at keeping it current and in a usable state but most don't even do that. But just as vital as maintaining your customers' data you also need to keep your prospects' information.

If a lead calls up on the telephone or an up shows on the lot you must have a system that collects their information. Ever notice how whenever you buy anything at RadioShack they always ask for your full address? They collect the information vigorously. At the very smallest amount you want a prospect's email address and their permission to send them stuff in the future... It is imperative and can quadruple the effectiveness of your marketing and drastically impact your bottom-line. At best, you want full contact information so you can mail, email and phone them.

So here's the big question...

How do you get all the info? You ought to have a system dedicated to itself which enables you to get at least the mails of the persons who calls up or else who comes into your location. You need something to exchange for their authorization to market to them in the future... No one is really going to give you their most precious possession (their attention and time) for nothing.

So if you are going to have a opportunity at getting them to give you their contact info and in turn their attention and permission to create an open dialogue and relationship you better have something they want. We recommend using valuable information and the concept of giving value first. We've all heard of added value after the transaction right? We think that is NONSENSE... You are rewarded for the value you deliver to the marketplace in conjunction with what you do potentially better than anyone else. And you have to deliver that value FIRST - Before a sale is ever made.

Now, that's how you get people's attention and the permission to create the relationships and the customers for life. That's how you create raving fans that recommend you and talk about you to others. That's how you get more referrals than you can handle and that's how you can harness the power of that elusive, best-marketing-on-the-planet-because-it's-free, Word Of Mouth Promoting. But it all starts with aggressively pursuing and making it TOP priority to collect the contact info (especially email) of all the prospects you ever come in contact with. With email you can market to them for free in the future.

Somewhat about 10 years later the automobile business has reached a fork in the road. The industry was challenged by a newly (or soon to be) informed and empowered client base. From that point forward dealers have been faced with a choice: hang on to those old school sales and automotive marketing techniques or join the ranks of the next generation dealers who rely on a "more sophisticated" approach... a kinder, gentler car business.

This option is still facing thousands of dealers who've yet to "choose a side"... but time and distance have now created the opportunity to look back and ask, "Are those 'old school' techniques really out of date?"

In an effort to simplify (but at the risk of generalizing), let's examine some of the elements of the "old school" approach:

* Higher-pressure promoting environment
* Dealer-controlled selling procedure
* Less price/margin simplicity
* Emphasis on front-end revenues
* More reliant on traditional advertising like print, radio, television or direct mail
* "Hook" based marketing post
* Customer's vehicle choice influenced by profit potential and bank advance
* Bigger push for substantial down payment
* Pre-qualification transported toward front of sales process
* Sales are created in person, on the spot, on the lot

Now let's take a glance at the "more sophisticated" new way of doing things:
* Low-pressure selling market
* Customer prohibited buying process
* Completely clear pricing and profit margin
* Emphasis on achieving money in the long term and willingness to forgo immediate profit
* Focus on quick turn, high volume
* Less reliant on traditional advertising
* Price-based marketing messages
* Customer's vehicle choice uninfluenced
* Little or no pre-qualification
* Sales procedure exists in large part in email, on the web, on the phone

So which is better? Which do you think we think is better?

Of course, there's no correct answer. At last dealers should always prefer to do the business in the same way that which they feel most comfortable... and find to be the most efficient way.

However, we strongly recommend against flatly rejecting either "old school" or "new school" techniques and instead give confidence dealers to become self-determining thinkers and operators who are agreeable to take the best and most effective elements of any tactic and use it in their establishment.

The real risk is in the vast assumptions that have been developed about the "new economy" and the "new consumer." There's a sense in the business that all customers are knowledgeable and all informed consumers will claim the lowest price and reject any form of pressure. These assumptions are simply not true.

In reality, To be frank customers still have the similar lizard mindsets which they had a decade ago. And as nifty as it would be if the Internet could speed up the pace of evolution, it can't and it hasn't. Individuals still have desires, which are fulfilled by owning a nicer, newer car. They still have anxieties or doubts, which avoid them from entering the buyer's circle. An effective dealer's job is to influence the desires and overcome the doubts.

The idea that consumers in 2010 are data-driven drones who make only purely logical decisions is false and will harm this business. You would be wise to reject that notion and prevent it from damaging your business.

Tactics vs. Intent

Nowadays the generalizations are made with respect to the dealers who utilize some tactics. For instance, we've heard dealers who think themselves part of this newer generation accuse other dealers who proceed to make extremely high front-end profit using "old school" tactics of being somehow unethical.

The broad philosophical question: Is making a profit unethical?

That's for you to decide. But for the reasons of this article, let's assume we all agree that making a profit is ethical. This is, after all, the car business... not the car foundation.

In fact, dealers provide a valuable service to the public by finding, sourcing and arranging for the transportation of vehicles to their location, inventorying those vehicles so that customers can browse multiple options, helping customers find and arrange for financing of their chosen vehicle, providing the opportunity to service the vehicles, etc.

Atleast for that the services dealers deserve a profit. (As an aside, nobody questions or criticizes grocery stores, or clothing stores, or electronics stores for making a profit. Why should making a profit at a car store be any different?) How much profit is the right profit? As much profit as the market will bear, one customer at a time.

That aside, the question becomes: Is the use of "old school" tactics wrong?

We submit that the tricks used are far less vital than the intent of the dealer utilizing them. A dealer whose mission is to help as many people as possible satisfy their emotional desires by helping them own a nicer, newer car is not a bad person. Can we agree on that?

Then it should generally follow that whatever tactics are utilized to make a sale, as long as the tactics are not dishonest, regardless of "old school" or "new school", are good and reasonable. And a dealer should find and execute any and all tactics that help secures sales that they feel comfortable with.

"Old School" Plus "New School"

Makes the Most "Profitable School" In The Industry

In our view, "old school" tactics are wrongly demonized and cast beside by an increasingly contemporary-minded industry simply because they're old.

Additionally, "new school" tactics are rejected by dealers who refuse to embrace new technology, simply because they're new.

But such polarity doesn't need to exist. This isn't Washington! What good do partisan-style, ideological, intra-industry politics do for a dealer? None. The reality is the handful of approach is a hybrid approach.

"New School" Dealers should realize:

* The Internet has not reinvented the car business. It is actually a tool which is to be used and leveraged, not a savior.

* There's much more to Internet marketing than just listing vehicles and prices (in fact, that may be the worst thing you can do). People are looking for information online beyond just prices.

* Traditional advertising still works and limiting your marketing to the Internet is a dangerous proposition. You're easily leaving money on the table if you ignore traditional media.

* While more informed, Clients are also emotionally motivated as ever.

* Lowest value is not the only, or best option (it's simply the easiest option, chosen by lazy and unimaginative marketers... that's a topic for a different article).

* Making a profit is not wrong... even in 2010.

* While earning a profit long term is important, your business will grow faster and better if you can also turn a profit immediately. The larger profit you make on the front, the more you can invest to acquire new customers. The more wealth you invest to acquire the new clients, the better you grow.

* Dealers offer a valuable service, and should strive to provide that service to as many people as possible.

* It is entirely possible to sell a decent volume and make a decent profit. High margin does not directly equate to lower volume.

* Applying stress for a customer to make a buying decision is not wrong or evil. In fact many customers are anxious for someone to help them finalize their decision, and a little nudge from you is all they need.

* As of this texting, people still buy cars in person. We don't see customers entering in their credit card online and having their car delivered by UPS. Until that becomes the norm, the car business is still a brick and mortar business.

"Old School" Dealers should realize:

* You're being talked about on the Internet whether you like it or not. You can join and direct the exchange or you can be a victim of the conversation that occurs without you.

* Many clients now a days are moving towards Internet for more updated information. If you're not there, you will be hidden to those people.

* Making money in the short run is important. But long-term profit and the existence value of a customer are at least equally as important.

* Because of the proliferation of information, many buyers will know more about your vehicles than you do. Now you need to go beyond features, and start talking about profits and helping buyers realize how this car will make them feel good.

In the final analysis, the most successful and stable dealers are those who provide high value in exchange for high profit and utilize all the tools and techniques available to them, regardless of age, to accomplish that. Like the dealer who has a video blog AND a radio campaign, or uses a trade hook AND an opt-in form. Old and new are not mutually exclusive and should coexist for best results at your dealership.