Sales Tips

Google+ for Dealership Salespeople

When I sold cars in 1979, I never dreamed there would come a day when I could instantly turn the news of the day into store traffic with a high preference for my product, my store, and myself. Google+ is extremely easy to use and will become an powerful tool in the hands of savvy salespeople.

If a recall notice comes in on the 2008 Camry, you can instantly post the information to people you sold a 2008 Camry to. You'll probably want to include some information about the new Camry and any specials you have going on. By creating a circle for your 2008 Camry buyers within Google+, you are ready to communicate with the right people at the right time. You probably have the email addresses of many of your previous customers. It's worth the time to re-engage them with Google+. This is especially true if they already have a Google account, but don't limit your effort to just customers with a Gmail address.

When a new lease deal is rolled out, you can instantly sent it to the shoppers you leased a vehicle to several years ago. It is possible to have a circle for each future month when leases expire. Customers you've stayed engage with can be located in the appropriate circle corresponding to their lease termination month. This is very different than an email program to customers with expiring leases. This is the salesperson who got them into the lease staying engaged with them throughout their ownership period with relevant information. But he also knows when to reach out to that circle of lease holders facing expiration.

That same customer might also be in your "Truck Buyers" circle. When a new accessory or new model comes out, you can let your truck customers know about it as easily as you post to Facebook today, but without sending that message out to people you sold cars or vans to.

There has never been a better time for individual sales people to take responsibility for their own success. The old Facebook style of social engagement was broadcasting out the same message to the same group of friends. Now, you can organize the shoppers and buyers you continue to engage with into circles that make it easy to send the right information to the right person at the right time. The more and longer you engage your shoppers with advanced social media like Google+ the faster your book of business will grow through loyalty and advocacy.

With Google+, there is no need to worry about comingling your business life and personal life. You may very well want to share some personal things with the customers you engage, but you can expose some messages exclusively to family members or friends within the same system. With the social media tools available today, there is no reason why any salesperson should continue to take ups after their first year. The potential for fantastic loyalty and advocacy from your friends, family, and former customers is great than it has ever been.

What FaceTime and Google Talk mean to Auto Dealers

Currently, consumers have four options for migrating from interactions with automotive websites to interactions with a human at the dealership: chat, phone, email, and walking in. Video conversations through Apple's FaceTime, Google's Talk, and other video chat solutions offer a great deal of promise for a fifth method of migration, but this is not something dealers absolutely must adopt over the next six months.

Here is how the five methods of migration stack up in terms of communication and circumstance:
Phone – quick back and forth interaction, tone of voice as well as words, no transcript for consumer, causes noise
Chat – quick back and forth interaction, words only, transcript for consumer, silent
Email – slow interaction, words only, transcript for consumer, silent
Walk-in – quick back and forth interaction; tone of voice combined with facial expressions and body language as well as words; no transcript for consumer; ability to take immediate action to buy
Video Chat – quick back and forth interaction; tone of voice combined with facial expressions and body language well as words; recording is possible on either end; causes noise

Clearly, video chat is the closest thing to having the customer in the store. It allows the sales person to better enhance preference for the vehicle, the dealership, and themselves. Video chat will never fully replace chat, because it can only be performed where the shopper is comfortable talking. Currently, chat is not cannibalizing email – the other silent alternative – but eventually it will. Similarly, video chat will eventually cannibalize phone call, but the immediate impact will simply be more consumer contact with the store.

Many stores perform a video walk around using a video camera, posting the result to YouTube, and sending the shopper a link. Imagine the increased effectiveness of taking the shopper through the video walk around live! The shopper can ask questions and ask for specific demonstrations and close-ups. This will make it possible to move the shopper much closer to purchase and will increase the percentage of shoppers willing to commit to a deposit before seeing the vehicle. It will also put increased importance on reputation management. Trying to pull the wool over the eyes of shoppers via video chat will be deadly to dealership reputations.

More consumers are traveling further for their vehicles than ever before, and the video chat will expand the shopping radius even more. Exotic vehicles will be the first to benefit. Those shoppers have the farthest shopping radius and are often early adopters to new technology. Even if they don't know how to use the technology, they often have close access to someone willing to help them. This is where video chat needs to begin.

FaceTime can only take place between two users of Apple FaceTime. Google's Talk is much more versatile; however, the vast majority of shoppers are not using any form of video chat at this time. Those who are certainly don't expect their dealer to be using it yet. The need to help shoppers migrate from websites to the store through video chat will become ubiquitous within a few years. For now, there is still at least six months to a year for most dealers to plan and prepare.

AutoNation's Move Signals a Trend for All Durable Goods Sales

Monday, Lindsay Chappell broke the story in Automotive News that AutoNation will provide information on competitor's vehicles and price within the store. Using iPads loaded with inventory information from both AutoNation stores and competing stores, AutoNation will be providing the same level of market transparency within the store that shoppers already have on their computers and smart phones. Here is how I see it for dealers: The complete answer to mobile is not just having a mobile capable website but having an alternative to mobile functionality built into the in-store shopping process.

The move is consistent with AutoNation's philosophy about information transparency. The effort is led by Garry Marcotte, Senior Vice President of Marketing. Gary was a pioneer in automotive internet and is known to be something of a visionary. However, I think he would acknowledge this move is not very far out in front of the industry and actually behind the consumer.

Whether you sell cars, motorcycles, ATVs, boats, trailers, RVs, or planes, shoppers already have information about your competitor's products in their purse or pocket via smart phones. The question is whether you want shoppers running away from the salesperson to secretly check the information on their phone or work with your salesperson. By discovering the competitive options with a sales rep can point out differences in the offerings. Differences might include:
1. Difference in use: miles, hours, visible wear
2. Difference in certification or warranty
3. Different trim package
4. Different options

Of course, the sales person is going to highlight the importance of features his unit has that the competitors does not, and minimize the importance of features not found on his unit. However, this sort of service will ultimately enhance the retailer's status as a trusted advisor. I suspect some shoppers will begin abandoning their online shopping earlier, knowing they can get the same information from within the store with no dirty looks or having to be secretive about looking for it on their smart phone. It's really this simple: Shoppers in your store can have access to your competitors through the private use of their small screen or in conjunction with your salesperson on a larger screen. One or the other is going to happen, and latter is better for both parties.

Social Media, It's Still About Buying and Operating Vehicles

Last week I saw a very popular trainer post on Facebook that he needed just 50 more followers on Twitter to make the 15,000 milestone. This week I watched another prominent figure encourage group members to help her get to 1,000. I've seen dealers do this sort of thing too. Internally, these milestones should be celebrated, for about 15 seconds. For dealers and trainers, the trophy case that matters is the one your bank keeps for you in a vault, and your customers sure don't see any benefit to them in your milestone accomplishments.

The point here is just how easy it is to start communicating to your audience about your success or your goals instead of providing them information that is useful to them. Those car buyers who do like, follow, or friend an auto dealer generally don't do so with the same interest one follows a sports team or celebrity. They aren’t voting for you for MVP or Dancing with the Stars. They buy and operate vehicles and you sell and service them. That is the primary connection, and it is the only connection you profit from.

With advanced electronics and safety features, there is so much to talk about today. Subtle mentions of success can reassure your audience they are dealing with a winner, but taking the focus from what's in it for each individual customer as a follower or friend to some quantification of your popularity is a bad marketing move. It's great that your momma likes your store on Facebook, but she is not the target audience.

Friday Freebie: CarFolks

This is the first in my series of Friday Freebies, highlighting products available for dealers or salespeople at no cost. Others are welcome to add comments – positive or negative – regarding how they make money with the same opportunity or found it not worth their time and effort.

CarFolks is designed to be a dealer-friendly rating service. Individual sales people can sign up on CarFolks at no cost, whether their dealership has elected to buy into the system or not. In other words, every salesperson in the store can use the product for free, even if the store itself does not pay to participate.

Progressive salespeople are sending their customers to CarFolks and asking them for a positive rating, even comments. They then link to this information in their social media and email lead responses.

Increasingly, shoppers consider two or more vehicles of roughly the same value. They may be considering a new car and several used vehicles, but to them the value appears to be about the same. Often, the sale goes to the salesperson who can best demonstrate they are the right salesperson, and their store is the right organization to buy from. In these instances of value parity, ratings and testimonials from an independent third-party can prove to be powerful documentation.

With millions of vehicles listed on any number of automotive websites, instances of value parity are far more common than they once were. With the widespread adoption of tools like vAuto and FirstLook encouraging market pricing, it will become increasingly common in the future.

My recommendation is to print out your CarFolks profile and keep it in a folder with other documentation about you and your store. Consumer comments found on an independent site like CarFolks carry more weight than the same comments on your website or in your store. Have your profile in the favorites of your computer or know how to get to it quickly. Every deal has a deal jacket demonstrating the full value of the vehicle. That's not always enough. Every salesperson should have a folder full of credible evidence showing they are the right person and the right store to buy from. If you are worth enough to tip the scales on a buyer's decision, back it up with documentation.

If you know of a freebie to dealers or salespeople you'd like me to write about, just send me a note through "contact the guru" or directly at DennisGalbraith@gmail.com. Your link to this week's freebie is http://carfolks.com/join.

Demonstrating the Value of New Cars

Regardless of how you price your new vehicles, the sales team must be able to demonstrate the value of them. This is one of the many ways the internet has changed floor sales.

If the customer wants a BMW 328i Sedan, you have lots of them with varying packages and options. Some of these features may be must-haves and some may be things the shopper definitely does not want. However, some of the vehicles in the shopper's consideration set will undoubtedly come with features that add to the price yet the shopper is not certain they need. The benefits need to be explained in order to help the shopper determine which vehicle is the best value for them.

This seems so obvious, yet I can't find a single BMW dealer whose website facilitates this decision making. Additionally, I'm sure I can walk into any store and find a salesperson that functions as little more than a query tool, "Do you want this or do you want that?" Of course this inevitably leads to the customer finding that the color they want comes with an option or package they already said they don't want, leading to the desire to keep looking for the perfect vehicle at other stores.

If your website and your salespeople cannot demonstrate the value of each package and option, you simply are not selling as many vehicles as you could be. Maybe the sport steering wheel with paddles is not worth $100 to the customer. However, if you can demonstrate at least some value in the fancier steering wheel, it may not be worth additional shopping to find the perfectly configured vehicle.

It's important to know how each feature can enhance quality of life and contribute to resale value. When resale value is considered, most shoppers are not paying full price for the options they receive full benefit from. If the customer is considering a lease, it is important to be able to discuss options, packages, and accessories in terms of what they add to the lease rate and how they benefit the shopper.

In the age of transparency, sales people cannot go around making this stuff up on the fly. When I began selling cars in 1979, the store was the information source. The shopper had very few alternatives from which to gather information. That is far from the case today. If you want to sell cars, you've got to be able to demonstrate the value of them, every little piece of them.

Value Anchors

Cargo Nets: A Case Study on Selling Accessories

The theme for this week’s High Octane Minute podcasts is selling accessories. Tagging onto that, this post is a deep look at one accessory. I have chosen the small cargo nets for pickup trucks; they hold smaller cargo against the front of the truck bed. My hope is that those selling pickup trucks will benefit directly, and others will learn how to take a deeper look at any accessory they sell.

Cargo nets are great for holding things in one place. Think of all the things you would not want in the cab of your truck or the seating area of your SUV, yet you don’t want bouncing around loose either. Here are a few for the pickup truck:
1. Balls – these little devils were made to roll and bounce around. You don’t need that going on in the cab while you drive, and you sure don’t want to risk making a no-look pass to another vehicle by leaving it loose in the truck bed. Slam dunk it into the cargo net and you score a safe trip home.
2. Sweaty clothes – Exercise is a wonderful thing for the body and the mind. But after a long game, hike, bike ride, etc. that exercise residue may not be welcome in the cab of your new truck. The car behind you probably doesn’t appreciate your Under Armour on her windshield either. Just stick it in the net for a safe and smell-free ride home.
3. Muddy shoes or cleats – Motorcycle and hunting boots are likely to stay where you put them in the truck bed, but children’s shoes can get just as dirty and bounce around the back of your truck.
4. Just about any light thing made of metal – I wish I had a dollar for every seat punctured by a loose screwdriver. If it is made of metal, chances are it can cause damage to your interior. Bed liners help protect the appearance of the bed from scratches, but that doesn’t stop things from bouncing around. The last thing anyone needs is loose metal gaining velocity in back of their truck.
5. An empty crock pot coming back from a potluck. Might as well put the serving spoon in there too.
6. Plastic beach toys – light enough to fly out of the truck bed, sandy enough to make you want to jump out of the cab when junior starts banging them around.
7. Picture frames – the corners are perfect for scratching up the interior, but they ride flat up against the front of the bed when held in the net.
8. Trash from a picnic or family outing. You did the right thing by bringing the trash bag and carrying out what you brought in, but it’s too light to just stick in the bed and you sure don’t want it in the cab.
9. The bonus - Anything you want to keep away from the kids while you are driving. You can honestly tell them it is in a safe place.

From this list we can put together a list of trigger words that would indicate a need for the accessory is likely. When we hear these triggers we think of the accessory.
1. Kids – dirty shoes and toys
2. Soccer, baseball, basketball, volleyball, or football
3. Hiking, biking, hunting, fishing, and other outdoor activities
4. Picnics
5. Potlucks
6. Tailgate parties
7. Beach activities
8. In a hurry (toss things in the net)

We can start to formulate some softly probing questions that might release trigger words.
1. What are some of your favorite outdoor activities?
2. Are any of your kids involved with sports?
3. Do you ever have a need to transport food for things like picnics, potlucks, or tailgate parties?
4. Do you like the beach?

You can work on your own methods of setting up the opportunity to ask softly probing questions. A common method is to point to how you or someone else uses the product and then ease into the shopper’s situation. Another method is to ask them what they have planned for the weekend, or if they have a big trip coming up. This can help ease them into telling you about their lifestyle. From there you can better match the shopper’s needs to the accessory.

How active the shopper is today is not important. You are selling them a vehicle that will help make their life better and make them more confident. Give them all the accessories they need to live the life they want, which is not necessarily the life they have. Explain benefits in terms of what they will be able to do. Don’t limit the discussion to what they do now. No one needs a cargo net to watch Wheel of Fortune. But you are greatly enhancing their life if you sell them a product and a vision of themselves that provides greater happiness than a night in front of the TV.

Be ready to overcome objections. “I’ll just buy it later” can be answered with a negative eliminator, “I’d hate to have your new-truck experience shattered by something getting scratched inside or bouncing out of the bed and causing an accident. Let’s get you what you need to get going with your active lifestyle.” Remind them of the negative they face without the cargo net and show them how having the net eliminates that negative.

Another method of overcoming objections is with positive providers. Remind them of the positive improvement they want and that is only comes from adding the accessory. “A truck brings freedom to enjoy an active, healthy outdoor lifestyle. It frees up your body to go where you want to and bring all your cherished toys and gear with you. Having a proper and safe place to put everything brings peace of mind and let’s your emotional side worry less while your body takes it on a vacation.”

Selling accessories can be fun, easy, and rewarding. A simple cargo net can add to both the utility of the vehicle and the vision the shopper has for themselves. They may see themselves as more responsible, and more organized. They will definitely enjoy their outings more and have fewer problems wondering where to put things. These benefits don’t just happen because someone makes a product like the cargo net. They happen because sales professionals enhance their customers’ quality of life.

Where Does Negotiating Power Come From?

The primary source of your negotiating power comes from you BATNA, Best Alternative To a Negotiated Agreement. The better you can make your next best alternative, the more power you have. Alternatively, the more superior you can make your offering appear to any other choice the other party has, the less power they have.

If I know that $5.00 per widget is a better price than my customer can buy them for anyplace else and a better decision than going without, then I feel no need to lower my price. What the product costs me to produce is irrelevant, my solution to the customer’s problem is already a better value than any other choice they have.

Usually, we don’t have perfect information about the other party’s BATNA, but we can know what our BATNA is. If I know I can sell out my widgets for $4.75 each, then I am not going to sell any of them for a price lower than that.

If you only have an estimate of what your BATNA is, then use your estimate and stick to it. It is easy to get wrapped up in the desire to close a deal and forget about your BATNA, but don’t. I find it is best to walk away from the negotiation and think about it before reassessing whether my assumptions about my BATNA were valid. Remember, your BATNA is based on information that had nothing to do with the other party. It is what you could do instead of working out an agreement. Is there really anything they have shared with you that changes that?

Try to strengthen your BATNA before you go into negotiations. By strengthen I mean both a better BATNA and a BATNA you are more confident in. Doing your homework to find out what your alternatives are put you in a much more powerful position at the bargaining table.

Start Your Day with Three Positive Things