The AADA national dealers convention held on the Gold Coast recently has proved to be a success.

The principal theme of achieving industry best practice no doubt confirmed its position as an important and relevant ideal for automotive dealers of today.

A hot topic at the convention was the need for dealers to reinvent themselves in a digital age yet still be able to master traditional sales techniques.

Two seminars whose themes and projections tied in well together were ‘20 projects to dramatically increase profits’ with US guest speaker Jim Ziegler and ‘Internet: realising the new media’s true potential’ with business futurist Craig Rispin.

Participants in these seminars were given an insight into managing a dealership and maintaining a dealership with focus on vehicle sales, management processes, profitability strategies as well as knowing what the next big thing is, spotting trends and creating new markets.

All of these proved vital to the success of an automotive dealer.

Jim Ziegler says there is nothing more important than a sale in progress, “it has a heartbeat, a rhythm and a pulse; it is a living thing.” Zeigler based his presentation around five focal areas of opportunity in which to increase profits immediately.

These opportunities were found in processes and training, customer relationship management, inventory control, staffing and marketing teams and advertising and marketing.

A concept Zeigler wanted to ensure his audience would take with them was “the process rules.” Zeigler recommends that once management has established a process, every salesperson has to be in on it.

Everyone that works at the dealership must be fully aware of the strategies, focus and goals of that dealership.

“There is always that one Prima donna salesperson that thinks they’re outside the system, if you allow this to happen; you’re providing a safe house for underachievers.”

Do you have a daily strategy dealer’s session regardless of sales?

Are the managers meeting once a day and discussing all possibilities to get customers back in the dealership?

“Dealers aren’t selling cars, they’re too busy selling deals,” Zeigler says.

Zeigler urges dealers to establish a relationship.

“There has got to be some breakdown where they’re talking about something other than a car sale.”

He often referred to some of his most successful business associates as examples and says when asking what made them so successful their response was “I was memorable.”

These people Zeigler says manage relationships with past customers and it works. “We try to get so technology driven we’ve forgotten to be human beings,” Zeigler says,

“Technology does not sell cars. Technology gives human being the ability to multitask.”

“A customer expects to be satisfied, they don’t notice when they are satisfied, but they sure know when they’re not,” says Zeigler “Consumer satisfaction will not sell additional units for you, there has to be a relationship somewhere.”

Another tip: “Your past customers are your best and cheapest source of new visitors.”

Management needs to intervene somewhere in the middle and get that customer back.

Zeigler says a dealer will grow instrumentally when managers take up customer recontacting.

“The average person is looking at the possibility of purchasing or upgrading to another car, every three years.”

He also urges management to call everyone that didn’t buy a car, but was capable of buying one.

Provide incentives to get people signed up on your email database, just as long as you get that email address.

“You’ve got to give them something, to get something,” says Zeigler,

“Customer satisfaction is worthless as a reason why a customer would buy again.”

What does your website say about your business? Zeigler says change your website as often as you change your advertising.

“The website you built 5 years ago has expired.” Know when the crowd is moving and find out what your competition is doing. In a recent JD Power study, Zeigler says research determined that 92 percent of internet customers used your business figures to buy elsewhere.

Craig Rispin’s idea of business success rests on the fact that 90 percent of customers check the internet before purchasing a car deal.

Rispin says when he first started in the business, he stood up and predicted that at least 10 percent of sales would go through internet channels within the next two years. He was wrong. It was in 1994 not 1995.

Rispins started his presentation with “I don’t just want to talk you about the internet, because you may have already missed that,

I want to talk to you about the next big thing.” The future he says is mobile.

People are spending too much money on marketing and receiving fewer results.

“Technology is changing minute by minute, hour by hour,” says Rispin “That’s iPods replacing radio and that’s internet replacing television and these predictions were made in the 90s.”

A few tips Rispin says will increase your profits and your customer database include creating a business blog with customer testimonials and reviews.

“A simple $120 video camera is the best marketing tool,” says Rispin “After a customer purchases a car, get the camera out, record a quick review from the customer and put it on your website.” Let it be known you have happy customers.

Zeigler also recommends using this opportunity to your advantage.

“Everyone wants to be a celebrity and businesses need to take advantage of this.”

Both speakers advised dealerships to invest in personalised emails that included video excerpts of the dealer talking ‘to the customer’ using their name with the specials on offer.

And both suggest sending these emails to already established customers.

Rispin suggests that businesses experience the power of document management systems. “It’s really hard to compete in the 21st century when you’re still relying on paper.” Dealers should be investing in technology such as pod casts, blog sites, personalised advertising through emails, RSS feeds and website development.

These are the cheapest and most effective ways to get your message out there.

The trick is to not let the technology do all the talking but to provide further opportunities for communication.

When asking the CEO of Apple what the secret to their success was, he said: “they failed quickly.” Rispin says there is always a better way, “get off your ass and try something new.”