Category Archives: best practices

Buying Reviews and Car Dealerships

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In the last few days, there has been national media coverage of a vendor on Amazon who decided to “stack the deck” and buy reviews. The two articles, one on Gizmodo and one in the New York Times, told the story of a company selling cases for the Kindle Fire on Amazon who included notes in the packages asking for positive reviews from buyers in exchange for a full refund of the purchase price they paid.

Within the automotive industry, there have been (and still are) companies that promise to increase your online reviews and, while they claim the reviews are all genuine, people paying attention can easily dissect the fact that they are not. I wrote an article in June of 2011 that investigated one company, Review Boost, that was suspected of doing just this in which I interviewed the owner.

Most dealers do not participate in or knowingly hire any companies that do this.

One statement in those articles, which was included in the letter to consumers who purchased the Kindle Fire case, caught my attention though.

“We strive to earn 100 percent perfect ‘FIVE-STAR’ scores from you!”

Does this sound familiar?

Most dealerships have a time, usually in their delivery process, in which the customer is “educated” that they will be receiving a survey from the manufacturer and how important it is for the dealership to receive top scores in all areas. Some dealerships even get as detailed as having a copy of the survey with the desired answers highlighted and reviewed with the consumers. I know dealers who ask the customers to fill it out and bring it into  the dealership in exchange for something – a free oil change, t-shirt, etc. Some ask for the survey to be returned blank (which they obviously plan to fill out themselves) and some just ask them to return a completed survey which they can then read and decide for themselves whether to return it or not. I know dealers who will even RDR the car with a different address if there is heat on the deal so that a customer never gets the survey at all.

While this is certainly not identical to the vendor in the articles, in which they offered a refund for the product in exchange for positive reviews, it’s pretty close.

Reviewing a CSI survey with customers when they buy a car is skating a fine-line especially when there’s coaching involved. When you throw in a free oil change or some other incentive, it’s the same thing. Every dealer knows that they aren’t supposed to do this. However, CSI scores can be tied to future incentives from manufacturers so dealers are always under pressure to keep their scores high.

The problem with any of this is that you never get an opportunity to truly improve. You don’t get real feedback on what (or who) is broken in your process. Even though these aren’t “public” reviews and are only viewed by the manufacturer and employees of the dealership, the opportunity for improvement still exists.

You should embrace the opportunity, take your lumps when they come, and do your best to solve the customer’s complaints or criticism with your CSI surveys just as you would with your online public reviews. Even though consumers might not see these when choosing your dealership, making sure that ALL your customers are happy by attempting to solve issues they may have had, whether you received the feedback publicly through an online review or privately through CSI survey feedback, will help you grow as a dealership.

Embrace all reviews, both negative and positive, public or private, and use them as a learning experience and an opportunity to fix broken processes, clean house of cancerous employees, and become a better dealership.

I guarantee that by doing this, you’ll see less negative reviews.

Tip: Selling Cars using eBay Motors Local Market

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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.

Pre-Conference Twitter Advice for Vendors

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I’ve had the privilege of handling social media for nine major automotive industry conferences in the last few years. (the 1st and 2nd DrivingSales Executive Summits, the 8th-11th Digital Dealer Conference & Expositions, and the 1st and 2nd Innovative Dealer Summits). In that time, I’ve also tried to include exhibitors and sponsors in the conference’s social media campaigns both for their benefit and for the conference’s.

I routinely asked them for Twitter accounts and created lists of those accounts for people following the conference Twitter account (like this one) whether they provided it for me or not (lots of searching Twitter, sadly). We left spots on speaking applications asking for their information and we had the sales team ask. If I had to guess, only about 15% actually provided this information and even less actually used social media to reach out and engage with attendees.

As you can imagine, there is a lot of “pre-conference” promotion (by the conference) and an essential piece of that was done via social media. Attendees would start getting excited and I would see Twitter conversations start ramping up via the conference hashtag. What I wouldn’t see is vendors participating in those conversations. No matter how hard and how many times I would advise a vendor that they should, they just wouldn’t do it. So for the few months leading up to the conference, there would be plenty of conference-related chatter (“Are you going?” “I’m excited” “Let’s get together”, etc) but virtually no vendor engagement. Amusingly enough, I have even had dealership attendees on Twitter publicly noticing and inquiring about the lack of vendors.

About a week before the conference…. it hits. Like someone hit a “Go” button somewhere. Vendors galore. All over Twitter. It was great that they would finally start participating but the problem was that there was no engagement and they were late to the party. A typical vendor’s tweet would read something like “We have your magic solution! Come visit us at booth #1234” or “We’re giving away an iPad2! Come to booth #1234 to enter”. By this point, they are entering (and creating) noise. The dealers and managers attending see this. They know that there is virtually no value in those tweets. They’ve received the countless pre-conference e-mails from vendors promoting something or other all with the same basic call-to-action of “come to our booth”.

On the flip side of this, I see vendors who DO engage with attendees. I see the vendors that engage attendees successfully setting up demo appointments and building interest and rapport with attendees. On the conference side, I always tried to increase their exposure (and the conference’s) by re-tweeting those vendors and encouraging people to interact with them. I rewarded exhibitors and sponsors for contributing to, and participating in, the conversation. What I didn’t retweet was blatant sales-only type tweets.

Fact: The 11th Digital Dealer Conference & Exposition hashtag saw 9,100 tweets from over 1,400 unique people with a combined reach of almost 100,000 people that generated over 9 million impressions…. and this was only from people that tweeted with the hashtag!

Why a vendor would want to skip out of being included in this is beyond me. I think they don’t understand social media 101 – the whole point of social media is not only to engage with your primary audience, it’s also to reach THEIR social network. The only other reason I can think of that they’re not doing this is that they can’t be bothered or see no value in it.

Vendors need to realize that conference attendees paying attention to the conference hashtag don’t want to see your 140 character sales pitch a week before the conference while, at the same time, they are receiving all the direct mail pieces and e-mail marketing campaigns that are hitting their real (and virtual) in-boxes. You become noise. Spam.

They are willing and want to engage with you but you must start this engagement MONTHS before the conference and it must be REAL engagement.You want to get a dealer’s attention pre-conference? Start talking to them pre-conference, not selling to them.

Sell to them at your booth, not on Twitter.

BMW Dealer Customer Service Fail Goes Viral

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A customer comes into your dealership because the warning lights come on in his Certified Pre-owned BMW after your service department tells him to bring it in immediately. He comes in and your first tier tech tells him the lights only apply to an emissions issue which doesn’t apply in his state, promptly turns the warning lights off and tells the customer he’s “good to go”. The customer leaves and two days later, the steering fails on his car while driving 65-75 mph on the freeway causing him to crash off the side of the road. When he complains to the GM, no apology is given and he’s told to bring the car back in. He expresses concern about his trust in the dealership and says he wants to go to a different one and is told that he can only bring the car there.

He then goes online and starts asking questions in a brand-enthusiast forum. After getting some information and advice from his peers, he meets with the GM at the dealership where, after expressing his concerns about the dealership’s service quality, the GM asks “then you shouldn’t even be in my office wasting my time”. The customer then agrees to let the dealer pick up his car via flatbed to look at it but is denied a loaner car.

Someone at your corporate office sees his online forum posting and has the corporate LAWYER call the customer requesting that he remove his online posting. He refuses and takes the car to an independent mechanic where he is told that the codes indicate issues with “steering and stability control”.

BMW North America gets involved. They ask the customer to bring his car into a different dealer and promise to fly in a team of specialized engineers. They confirm the steering and stability issues, charge him his $50 deductible and only fix two issues that are covered under his CPO warranty. Neither the corporate office or the dealership will explain to him what was wrong or take any responsibility and, when asked why, they say they “don’t appreciate that (he’s) made this a public issue on the forums.”

Yes, this really happened. What a train wreck.

The dealership? BMW of North Scottsdale. (a Penske Automotive dealership)

This story made the website “Jalopnik” yesterday. The article (in which the dealer is not only named but linked to) “Did a Dealer Ignore a Faulty, Dangerous BMW?” has received 27,334 unique visitors and has 209 comments. In one day.

The original forum post has 327 comments on it in less than 30 days and has been viewed by 27,956 unique visitors.

The Jalopnik article is now in the #6 position on Google Page 1 for a search for the store’s name, four spots up from their DealerRater page.

 

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We’ve all experienced irate customers. We all make mistakes. There were so many opportunities for customer service to appear by so many different parties (technician, service manager, general manager, corporate office, manufacturer, the second dealership, and, of course, the corporate lawyer), yet it never did and now the dealer and BMW have a PR nightmare on their hands.

One forum poster actually said this: “Scottsdale BMW got a pretty good rating at dealer rater…shall we change that?”

What would you do if this happened at your dealership? How would you handle this?

Who Is Tapping YOUR DMS?

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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.