After having attended a remarkable Digital Dealer 25 Conference & Expo in Las Vegas, I was left with a few lasting notes that I thought I might share with you.
The conference was action-packed, with dynamic and knowledgeable speakers, interesting and thought-provoking presentations, tons of information, new cutting-edge companies with qualified people, and lots of fun. I highly recommend everyone in all aspects of the automobile business, regardless of whether you are in sales, service, management, marketing, or finance, make their way to attend the next Digital Dealer Conference. The energy and ideas flowed profusely throughout every breakout session, permeating onto the expo floor where breakthrough technology was being demo’ed on every aisle during the short, but very powerful, three-day conference.
While attending one breakout session that was addressing topics such as customer attribution, bounce rates, click-through rates, cost per click, KPI’s, etc. etc., one dealer spoke out about what he thought was the most important factor in his team’s ability to sell more cars, and it was his belief that the critical formula was acquiring more prospects and more leads. A lengthy discussion ensued about digital advertising, the value of leads, and the statistic that only approximately 1% -3% of all web traffic ultimately do convert to a real lead was presented. The dealer argued that, in plain and simple terms, he needed MORE leads and more prospects for his team to talk to in order to sell more cars.
Someone in the back made a comment about the sales funnel and the importance of locating where a customer is in that vortex during the car buying process, and another dealer spoke up to agree that tracking the customer attribution was valuable, but in truth, the fact was, that nothing really mattered unless the customer became a real lead via an email, a text, a phone call, or by physically stepping foot onto his lot, showroom floor, or dealership service drive.
That’s what got me thinking about Steak Knives.
I got started in the automotive direct mail business in 1980. Chrysler was heavily strapped with K-Cars, Cordobas, and Dodge Miradas. Lee Iacocca took a $1 paycheck, and TACITO was performing direct marketing events for Chrysler Corporation at city-wide tent sales all across the nation. We shipped and sold thousands of cars and trucks direct from the factory, and with the help of dealers and their armies of salespeople, they were willing to take the risk of stocking any inventory that didn’t sell at the Tent Sales. Interest rates were in the double digits and gas mileage and gas price concerns were on every buyers’ checklist. We mailed thousands of invitations to the best prospects inviting them to attend “A Giant TENT SALE” with each prospect receiving a $300 bonus check and a promise to get a set of “FREE Steak Knives” just for attending the sale. One would have seen lines of invitation holding car and truck buyers waiting to be admitted to the “By Invitation Only” sale, with folks swarming around ballparks, stadiums, arenas, and shopping mall parking lots.
After we helped unload all that iron for Chrysler, TACITO then served up the direct mail promotion concept to individual dealerships. Because dealers had witnessed the power of direct mail, they knew it worked and thus wanted to continue on with similar success in their own markets. And, for those of you who weren’t even born yet, that’s how direct mail came to be an integral part of every dealer’s automobile dealership marketing strategy today.
I digress. So let’s get back to the conference. The dealers agreed that showroom traffic in their dealerships was essential to making more sales, and somehow the subject of using direct mail to drive showroom traffic to the dealership was suggested.
A dealer commented on how he thought offering FREE GIFTS as part of the direct mail was ineffective. I was able to catch the dealer on the way out of the breakout session enroute to a delicious lunch and presentation sponsored by an innovative company called Fair, and I probed further by asking him why he thought it was a waste of time to offer FREE GIFTS in his direct mail. He shared with me that he thought that the people who responded to Free Gift offers were “Boggs” and “Mooches.” (A “Bogg” or a “Mooch” for those of you who don’t know, is any customer who can’t buy, doesn’t have the ability to buy, has marginal credit, won’t buy, isn’t ready to buy, a waste of time, and just to put it quite simply, a real “pain in the %^#!” to a salesperson.)
It was quite serendipitous, how this quick, “off-the-cuff” comment by the dealer dovetailed seamlessly into the crux of the message we heard during the motivational keynote address by Damian Boudreaux. Damian, a sales coach, explained in his talk, how his student became the #1 automotive salesperson in 2017. One of the speaker’s most salient points was that his students must recognize and respect all customers. He teaches that ALL CUSTOMERS MATTER and that they are all “good customers,” regardless of their credit history, ability to buy, income, race, religion, sex or otherwise. And, that compassion, respect, and relationship was the true secret to selling over 1,500 cars in one year. His message was that the outdated approach of labeling and judging customers as “Whatever discrediting and disrespectable name that you can think of” could be one of the most serious problems facing automotive retailers today.
My response to the doubting dealer was this; “Isn’t it great that the customer came to your dealership, to visit your showroom, walk your inventory, meet your salesperson, drink your coffee, and EXPERIENCE the culture of your dealership?” I went on to explain, “Look, people are creatures of habit, and once they’ve found their way to your front door, and as long as they’ve had a positive experience at your dealership, even if, this visit, this time, was just for a Free Steak Knife Set, YOU had the opportunity to connect with one more potential customer, and they will return to you. How is that any different from the study of customer attribution or watching where prospects visit online at any one of several automotive lead-gen websites, information sites, etc., all before sometime in the future, when they actually do set out to make their vehicle purchase choice?
Make the most of that connection with your prospect, follow up, and treat them with respect and kindness, keep in contact, MAKE A FRIEND, and you will eventually sell them a vehicle. I promise.
We don’t use steak knives any more. That was 1980. But, there are still plenty of good “REASONS TO VISIT” that you can offer prospects in your next promotion, that could ultimately materialize into a “Customer for Life” for you. That’s of course if you want it to be so.
About the Author
Anthony J. Tacito is founder and CEO of TaCito Direct, a direct marketing and advertising agency that specializes in the automotive indusctry; and a founding partner of Fountain Capital, LLC., a private equity company that specializes in commercial and real estate holdings.
