Buying Reviews and Car Dealerships

Posted on January 28, 2012 by Arnold Tijerina

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.

BMW Dealer Customer Service Fail Goes Viral

Posted on January 6, 2012 by Arnold Tijerina

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.

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?

Lessons from BlogWorld – A Social Media Experiment – How to Find a Job by DJ Waldow of Waldow Social

Posted on November 18, 2011 by Arnold Tijerina

DJ Waldow of Waldow Social delivered a timely and fascinating presentation at the 2011 BlogWorld LA conference held November 3-5, 2011 in Los Angeles, CA titled “A Social Media Experiment: How to find a job” sharing his thought and experiences while offering timely advice and tips on how job-seekers of today can leverage the power of social media to aid them in finding a job.

DJ Waldow was formerly the Director of Community for Blue Sky Factory and is now the owner of his own business, Waldow Social. In his session, he told his personal story of how he was laid off unexpectedly when his employer was acquired by another company. Because the company’s acquisition was not public, he was not allowed to say anything other than he no longer worked there. So he got creative.

He shared with the audience how he created “Project Awesome“, which included an interactive PDF resume in Slideshare (to date viewed 9,181 times), the aforementioned blog post (which received 5,000+ visits and over 200 comments), and enlisted his friends to give video recommendations(viewed over 1,500 times) for him to use in his job hunt. All of this creative marketing of himself using social media led to “300 e-mails, 44 phone conversations/interviews, 7 in-person interviews, 13 Skype chats, 2 Google+ Hangouts & one Facebook chat – all with people interested in hiring (him) for a full-time position” and all of this occurred within the first 2 weeks of him losing his position.

Of course, being in the business of social media, he had some very high profile friends (which helped), but his approach was not one of soliciting recommendations from everyone he knew, but rather identifying key people in his life that he knew well enough to ask for a personal favor from. He called this “Social Capital”. Your social capital is gained by trust from people that you have earned, friendships that you have built, and relationships that you have grown. Identify key people in your life, both personal and professional, to assist in marketing yourself. Be creative and use social media networks to share that you are in the market and enlist your network in sharing YOU with THEIR network.

He advised that, if you plan to use social media, the first step is to know what’s out there in the world about you, right now. Do a search on the internet and see what others would find should they be looking for information about you. If you find negative items, either delete them or correct the ones that you can.

He challenged job-seekers to ask themselves these four questions:

What are you known for?
What do you want to be known for?
What are you good at?
What do you love?

In the connected world in which we live, traditional job hunting skills and habits will no longer separate you from the rest of the “pile”. You must be different and creative to stand out, but above all be helpful, be kind and always be positive.

Originally published on Yahoo!

Buffer: What It Is and Why You Want It

Posted on November 16, 2011 by Arnold Tijerina

When I went to BlogWorld LA, I met up with a friend of mine, James Stayton. As I’m walking around googly-eyed at the likes of Chris Brogan, Jason Falls, etc., he jumps when he sees this one guy with a “Buffer” shirt on. We go over and James starts telling this guy how much he loves Buffer and about how much he likes the new features, etc. I had never heard of Buffer so I asked the guy (who turned out to be a co-founder, Leo Wid) to show me how it worked. I signed up (as it’s free) and told him I’d check it out. At the time, the Facebook posting was still in beta, (he let me in on the very tail of that) but now, I believe, it’s live for anyone who signs up.

So, what is Buffer?

Buffer is an easy service that allows you to share information without overwhelming your networks (the networks in this article I’m referring to are Twitter and Facebook). How it does this is that they use an algorithm that determines what the best times of the day (ie. most trafficked and used) are and it schedules them for those times automatically. It also “buffers” your posts so that you aren’t sending a ton out at once and overwhelming your followers/friends. It will determine how many you should be posting and automatically schedule them for when they are most likely to be read or clicked through and it will space them out in time for you also. There is also a “Post Now” button if you don’t want to send it later.

I’ve been (and I am) a Hootsuite Pro user for a long time. I love Hootsuite but it is a pain to schedule tweets with any kind of strategy involved. I still use Hootsuite but now I use Buffer as a compliment to it so that I can share great content without having to even THINK about when I should tweet or post something and how much is too much, etc.

…and one of my FAVORITE parts of Buffer is that it allows me to use my custom URL shortener automatically! You just plug in your shortener information (in this case, I use bit.ly for my shortener - arni.es) and it automatically uses YOUR shortener for any websites you add to your buffer. Hootsuite charges $50 per month if you want this feature!

Anyways, I don’t get this excited about a new service (God knows there are plenty of them popping up all the time.) but this one has me pumped. I’ve been using it now for a couple of weeks and I love it.

A dealership (or any business) could use this to pre-load a week’s worth of content very easily then sit back and sell some cars!

Check it out , sign up and send your first tweet by clicking HERE!

Industry Summit: A Peek into the World of F&I

Posted on October 17, 2011 by Arnold Tijerina

This week, I had the privilege of attending the Industry Summit – which includes 3 conferences — the F&I Conference, the Special Finance conference and the VSCAC conference. These conferences focus mainly on F&I and special finance topics. In this age of internet shopping, however, credit-challenged shoppers are also researching on the internet – whether it’s typical online car research or they’re searching for financing assistance online – so I wanted to see what advice and tips I could learn to share with our audience.

I was quite surprised to find that finance companies are interested in penetrating the franchise dealer market with hybrid “Buy Here, Pay Here” programs. Dealers lose many car deals each month due to the inability to secure financing for their customers. The idea is that the dealer would carry the note for 90 days, then these companies would purchase the notes for $.60 on the dollar. If structured correctly, and with the right program guarantees and commitments to buy these loans from these companies, a dealer could potentially pick up a decent amount of deals they otherwise wouldn’t be able to keep on the road (or put there in the first place).

An example given to me was of a franchise dealer who amassed a $22 million portfolio which he could cash out at any time while making a $5 million net profit. I could see this as an alternative method of financing – a last case scenario – for franchise dealers who are selective in whom they carry notes for or a new way for dealers with a high demographic of these customers to gain more deals and market share. Whether they choose to carry the note past the 90 day period is entirely up to them and, if structured properly, could mean extra profit and deals each month. Many stereotypical “Buy Here, Pay Here” lots went under during the hard times we’re just emerging from and this is a great way to capture market share quickly. I could see many customers who would feel more comfortable and willing to participate in a program like this offered by a franchise dealer versus the small used car lot that these programs typically exist at.

One of the most popular and well attended sessions was a Marketing and Advertising Dealer Panel regarding special finance with Scott Falcone, dealer, World Hyundai Matteson and Tom White Jr., general manager, Suzuki of Wichita. Many of the dealers in the audience wanted advice on how best to operate a special finance department including how to handle & identify those customers early in the process. Scott Falcone said that instead of treating special finance customers differently, they handle all customers as if they were special finance from an investigative standpoint. Tom White agreed saying that the most important question they ask on the meet & greet is regarding source and that usually helps identify those customers who may need special financing assistance.

Scott addressed another question regarding what to do to keep that special finance customer distracted while you are waiting for a call back or bank approval. He strongly suggested that dealers test drive those customers who can’t buy cars. By doing that, they get excited and are more likely to work with you with a co-signer, etc. and they get excited.

Both dealers do spot-deliveries and an audience member asked: “What’s an acceptable take back percentage?” Tom White said that his goal is an 8% take back on spot deliveries. If it’s more than 8%, then they are being too aggressive. If it’s less than 8%, they are not being aggressive enough. Tom White went on to share that their BDC only makes outbound calls on credit leads. Once they started that program, special finance sales went from 12 per month to 39. The retail sales department works all other leads. He went on to say that “the days of being able to take a credit app or look at a credit report are over. Computers are doing the underwriting. Send the deals in. Don’t think or guess.”

The exhibit hall was mostly filled with F&I product companies although I did see a few familiar faces.

Now a couple of fun things…

The coolest “interaction activity” in the hall was, by far, the large game of Jenga constantly being played in the ETE REMANbooth. I “almost” won that darn game. We ended up standing on chairs just to place the next piece on top but, in the end, the employees won. I still smile when I think how brilliant that game was for them. Everytime a game was lost, a ton of 2×4 planks came crashing down causing a lot of noise which could be heard in the whole hall and attracted a lot of attention.

And the coolest swag:

… a sweet car from our friends at DealerTrack! Thanks again for the car! My 5-year old has been playing with it NON-STOP since I got home.

Thank you to all of the people involved in inviting me to the conference – Ed Bobit, Dave Gesualdo and Greg Goebel – it was a privilege to attend and get an insight into the world of F&I and special finance.

(Originally published September 30, 2011 by Dealer magazine)