Buying Reviews and Car Dealerships

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.

What Does The Government Think About Your Social Media Policy?

Back in June, I broke news on a case that involved a BMW dealership firing a salesperson for posting critical comments about the dealership and pictures of an accident that occurred on a nearby dealership’s lot (that happened to be owned by the same people).

Due to the huge increase in social media use by the general population as a form of communication, The National Labor Relation Board is aggressively going after companies that terminate employees for issues in regards to social media use. Until now, there seemed to be no rhyme or reason to which cases they were supporting and which they weren’t. The information was there, but unless you were actively seeking these cases, chances are you wouldn’t find them.

In an effort to coordinate the prosecution of cases involving social media, Anne Purcell, Associate General Counsel for the National Labor Relations Board, wrote and released a 24 page report on August 18, 2011 summarizing cases involving social media and explaining why they have chosen to prosecute (or not) these cases. In doing so, they’ve given insight into what you can and can’t do as an employer including what they believe your social media policy should (or shouldn’t) say.

Keep in mind that this is a summary of the cases and issues that they’ve determined merit prosecution. While some of the cases have been settled, many of these cases have trials pending. In no way are these laws or precedents…yet. However, in knowing what they do and don’t consider valid complaints, it can help any employer construct a more solid social media policy that would, at the very least, withstand the scrutiny of the National Labor Relations Board. It also gives insight into what, if any, disciplinary action you can take against an employee in regards to social media use.

In summary, based on the collective summaries of the cases, here are some guidelines I’ve extrapolated from the report for your social media policies and disciplinary considerations:

They’re huge on protected concerted activity. Employees can discuss and criticize their employer, supervisors and co-workers as long as they don’t stand alone in their criticisms. Your employees can call you a “scumbag”, an “a-hole”, a “super mega puta” or whatever else as long as they have co-workers that share their opinion. They have the right to discuss working conditions and their employer anywhere, including via social media. The keyword here is that it must be a discussion. Personal gripes don’t count.

You can’t have overly-broad social media policies. Things you can’t include in your social media policies:

  1. Prohibit employees from making negative comments about the company, their supervisors or their co-workers.
  2. Posting pictures of themselves which depict the company in any way (ie. in uniform, on the job, etc.)
  3. Prohibit them from using inappropriate, offensive or rude language in regards to a coworker, the company, or a customer.
  4. Prohibit inappropriate discussions via blogs.
  5. Prohibit employees from discussing company business on their own time on their personal accounts.
  6. Prohibit employees from disclosing inappropriate or sensitive information about the company.
  7. Prohibit employees from posting pictures or comments involving the company or its employees that would be considered inappropriate.
  8. Prohibit employees from using the company name, address, or other company information on their personal profiles.
  9. Prohibit employees from using the company’s logo or photographs of the company’s store.

How many of these does your company have in its social media policy?

I bet quite a few. You’re probably thinking “Holy Cow” about now. Seems as if employees can do anything they want! That’s not true. What IS true is this: these company’s social media policies (when they had them) contained restrictions that were overly broad and encompassing. Employees have a right to bitch about their workplace, bosses and company, whether it’s aloud or via any type of social media, including Facebook, Twitter or blogging. It doesn’t matter whether you have an “At-Will Employment Agreement”.

So how do you restrict your employee’s social media use through policy without it being considered overly-broad? I mean, come on, you can’t account for EVERY possible situation in a written policy.

The answer is actually quite simple. Your policy is overly broad and/or unlawful if it does not contain verbiage that excludes protected concerted activity as defined by Sections 7 and 8 of the National Labor Relations Act. Simply putting a phrase similar to that into your social media policy should protect you in most instances (unless, of course, the activity IS protected).

In addition, when considering whether you can or can’t terminate an employee because of something they posted on social media, you need to ask yourself these questions:

  1. Is this comment posted relating to any form of work conditions?
  2. Is it a shared opinion and/or being discussed with fellow co-workers?

If the answer is yes, I would think twice before disciplining the employee. If the answer is no, you’re probably safe.

This has nothing to do with free speech. It has everything to do with creating policies that would INCLUDE protected concerted activities. To make it short (and provide an example of their reasoning), you can’t tell an employee they can’t post photos or use the company logo on social media without permission because that would include prohibiting the employees from posting photos of them on a picket line in front of your dealership. You can’t simply tell them they cannot talk about the company via social media because that would prohibit them from lawfully discussing working conditions with their co-workers.

Moral of the story: If you’re an employer, make sure your policy excludes protected activity. If you’re an employee, make sure your co-workers agree with you (and chime in).

Disclaimer: The author of this post is not an attorney and in no way should this be considered legal advice.

(Originally published on Dealer magazine)

Can You Be A Packer Fan in Bear-Town at Work?

Yesterday, a good friend of mine, Joe Webb, President of DealerKnows Consulting, posted a news article on his Facebook wall that got all sorts of comments from his friends.

In summary, the article involved a car dealership in Chicago who, on the day after their loss to the Green Bay Packers in the NFC Championship game, fired a salesperson for wearing to work, and refusing to remove, a Green Bay Packers tie.

Article: Packer Backer fired for wearing Green Bay Tie

Most of the discussion centered around whether it was legal to fire this employee for refusing to remove the tie. Some of it questioned this salesperson’s right to wear it.

Was the employer justified in firing him?

Did the employee have the right to wear it at work?

What do you think?

Originally published on DrivingSales.com

GM creates more jobs.. in Mexico

I don’t know about everyone else but it seems to me that GM’s decision to create more jobs in Mexico is absolutely bad business. Without the U.S. taxpayer, GM may not have a business at this point.

This seems like a complete snub to Americans, who, last I heard, needed jobs. As of December 2010, thenational unemployment rate was 9.1%.

It may be cheaper to have factories in Mexico and employ Mexicans. Being of Hispanic origin, I have nothing against Mexicans.

The United States still owns about a third of General Motors and is the largest shareholder.

What are your thoughts on this matter? Does GM have any obligation to the taxpayers? Should the United States government intervene – which is its right as a shareholder?

[This post is in response to this article from 1/20/2011]

Originally published on DrivingSales.com

BREAKING NEWS: Autotrader Acquires HomeNet Automotive

I have just been informed through a very reliable source that Autotrader has officially acquired HomeNet Automotive.

(EDIT: Below is copy from this morning’s official press-release.)

ATLANTA and WEST CHESTER, Pa., Dec. 1, 2010 – AutoTrader.com, the Internet’s ultimate automotive marketplace and consumer information website, has agreed to purchase HomeNet Automotive, a leading provider of online inventory management and merchandising solutions.

The purchase is expected to close by the end of the year.

The addition of HomeNet to the AutoTrader.com family of companies and brands provides AutoTrader.com with a best-in-class inventory management solution for the thousands of auto dealers who use AutoTrader.com to present their inventory of new, used and certified pre-owned (CPO) vehicles to online vehicle shoppers.

Founded in 1996, HomeNet’s proprietary “Get. Edit. Deliver” technology has helped thousands of automotive dealers nationwide generate a high volume of leads and increase online vehicle sales.  HomeNet’s signature solution, the Inventory Online (IOL) vehicle marketing suite, is an industry-leading vehicle inventory management and marketing system.

AutoTrader.com’s purchase of HomeNet will bring a variety of benefits to dealers who post vehicles for sale on AutoTrader.com and to car shoppers who use AutoTrader.com to research and compare vehicles, find dealer specials, review inventory of cars for sale and select dealerships to visit.

For dealers, incorporating HomeNet’s proprietary inventory management system into AutoTrader.com’s dealer tools will allow for easier and faster inventory management and merchandising online.  Dealers will be able to upload their listings faster, make updates and adjustments to their listings more easily and overall enjoy more flexibility and control in presenting their inventory for sale on AutoTrader.com.

Consumers shopping for vehicles on AutoTrader.com will have access to better vehicle information, enhanced listings that include more photos and dealer comments, advanced search capabilities and more frequent updates and information about the cars they are shopping for and researching.

The agreement to purchase HomeNet is the third in a series of acquisitions AutoTrader.com has announced in recent months.  In September, AutoTrader.com announced the purchase of vAuto, the automotive retail industry’s leading provider of advanced software tools for used vehicle management, pricing and inventory optimization.  Then, in October, AutoTrader.com announced its planned acquisition of Kelley Blue Book (www.kbb.com), one of the most recognized and influential brands in the automotive industry.

“We are always looking for opportunities to grow our company, organically or through acquisitions, in ways that will make AutoTrader.com even more valuable to the auto manufacturers and dealers who advertise on our site and to the 15-million-plus consumers who shop for vehicles on our site every month,” said AutoTrader.com President and CEO Chip Perry.  ”We were fortunate to be in a position to purchase vAuto and to agree to purchase Kelley Blue Book and HomeNet when these companies came available and we are excited about the value our combined companies can bring to the very competitive automotive shopping and marketing industries.”

AutoTrader.com plans to operate HomeNet as an independent subsidiary.

Bob Landers, a 10-year AutoTrader.com veteran sales executive who was formerly vice president for AutoTrader.com’s Southeast division, has been appointed general manager and vice president of HomeNet.  He will be the top executive at the company, replacing founder and former president and CEO Jesse Biter.  Landers will work directly with other leaders at HomeNet and be responsible for day-to-day operations and long-term growth at HomeNet.

About HomeNet Automotive, LLC:  HomeNet Automotive helps the automobile industry save time and sell more vehicles. It is the leading provider of inventory merchandising, management, and marketing solutions, led by its flagship product, Inventory Online (IOL) Internet Marketing Suite. IOL is a web-based vehicle marketing solution that helps tens of thousands of automotive dealers to engage buyers online and bring them into the showroom by streamlining the process of converting raw vehicle data into consumer-friendly and emotional online ads. For more information, please email sales@homenetauto.com, visit http://www.homenetauto.com, or call (877) 738-3313

About AutoTrader.com

Atlanta-based AutoTrader.com, created in 1997, is the Internet’s ultimate automotive marketplace and consumer information website. AutoTrader.com aggregates in a single location millions of new cars, used cars and certified pre-owned cars from thousands of auto dealers and private sellers and is a leading online resource for auto dealers, individuals and manufacturers to advertise and market their vehicles to in-market shoppers. The company also provides a robust suite of software tools for dealers and manufacturers to help them manage and market their vehicle inventory and display advertising on the Internet. AutoTrader.com continues to grow key business metrics, including revenue, profitability and site traffic. Today, AutoTrader.com attracts more than 15 million unique monthly visitors who utilize the site to review descriptions, photos and videos of vehicles for sale; research and compare vehicles; review pricing and specials; and read auto-related content like buying and selling tips and editorial coverage of major auto shows and automotive trends. AutoTrader.com operates two other auto marketing brands, AutoTraderClassics.com and AutoTraderLatino.com. AutoTrader.com also owns used vehicle management software company vAuto. AutoTrader.com is a majority-owned subsidiary of Cox Enterprises. Providence Equity Partners is a 25 percent owner of the company and Kleiner Perkins Caufield & Byers is also an investor. For more information, please visit www.autotrader.com.

SOURCE AutoTrader.com

Originally published on DrivingSales.com