Editor’s Note: This article was originally published in the January/February edition of Dealer magazine
The phrase “be careful of distractions disguised as opportunities” was given to me by none other than Jim Ziegler, the legendary Alpha Dawg of the automotive industry. It’s a mantra that has guided me through countless challenges and decisions, reminding me to stay laser-focused on what truly matters.
Dr. Stephen Covey, author of The 7 Habits of Highly Effective People, imparted a similar lesson that changed my trajectory. As a Certified FranklinCovey Trainer for over 17 years, I’ve seen firsthand how Covey’s principles transform individuals and organizations. His third habit, “Put First Things First,” is a masterclass in prioritizing what’s truly important.
For automotive dealers, this means identifying the preeminent opportunity—that one critical area where focus will yield the greatest results.
The Real Cost of Misdirected Advice
Too often, dealerships rely on unqualified advice. Let’s put this into perspective. Would you trust a junior financial planner earning $55,000 annually to manage a $15 million portfolio? Of course not. Yet, decisions on CRM platforms, lead sources, and AI vendors are often based on the recommendations of Internet Managers or CRM coordinators with limited expertise.
Poor advice leads to wasted resources, inefficiencies, and lost opportunities. If you wouldn’t compromise on other critical business decisions, why gamble with your dealership’s future?
People and Staffing Challenges
People are the backbone of every dealership. The post-pandemic landscape has amplified staffing challenges. Many professionals with less than four years in the industry have only known an upside-down market influenced by COVID and inventory shortages. These conditions allowed for complacency—showrooms didn’t need rigorous training or full staffing because demand outpaced supply.
But now, dealerships are struggling. They’re understaffed and ill-equipped to handle Internet leads, phone ups, service opportunities, and equity mining. Hiring is tough, especially in states like California, where minimum wage is over $20 per hour. Dealers need to think creatively. For example, Bob Ruth Ford in Pennsylvania scaled their Internet Sales Department from 75 to over 362 units per month by outsourcing BDC reps, internationally. Whether in-house or outsourced, investing in properly trained and reliable staff is critical.
CRM: The Backbone of Dealership Operations
Nine out of ten CRMs are not set up or utilized effectively. Outdated templates, broken processes, and missing content plague dealerships nationwide. This issue became glaringly apparent during the “VinSolutions 1 Day Master Class,” co-produced by Dealer Synergy and Cox Automotive. Audits revealed systemic CRM mismanagement. Dealers rely on CRMs to drive productivity, yet most systems are poorly optimized.
Mastering your CRM is not optional; it’s a competitive advantage. Tools like NCC (formerly ProMax) are revolutionizing the industry with advanced features and streamlined interfaces. Don’t settle for mediocrity in this critical area. Invest in a CRM strategy that aligns with your dealership’s unique needs.
Artificial Intelligence: A Strategic Imperative
AI is not just a buzzword; it’s a game-changer. Properly implemented, AI acts like a team of BDC reps working 24/7. Companies like Podium are leading the charge with conversational AI tools like “Jerry,” which can handle thousands of prospects simultaneously.
Dr. Covey’s principle of “Put First Things First” applies here. AI is a strategic investment that can drive engagement, reduce costs, and increase sales. Those who embrace it will thrive, while those who don’t risk being left behind.
Success leaves clues. In any field, the top performers rely on a team of elite experts to achieve greatness. Take professional athletes: they don’t reach the top alone. They have business managers, coaches, nutritionists, and financial advisors—all specialists working together to ensure peak performance.
The automotive industry is no different. To thrive, dealers must align themselves with proven experts who deliver measurable results. Consider Cody Carter, the No. 1 car salesman in the U.S., who sold over 1,400 units in a single year, earning over $1.2 million—all from the showroom floor with just one assistant. Doesn’t it make sense to study his methods? Shouldn’t we learn from the top-performing Toyota dealerships or the best GSMs in the country?
Excellence isn’t a coincidence—it’s a strategy. Surround yourself with those who know how to win.
Action Items: Be Careful of Distractions Disguised as Opportunities
1. Prioritize High-Impact Opportunities
- Identify one critical area of focus (e.g., increasing Internet lead conversion or improving service retention) that will yield the greatest results.
- Use tools like Dr. Covey’s “Time Management Matrix” to differentiate between urgent distractions and truly important tasks.
- Review the qualifications and expertise of team members responsible for key decisions (e.g., CRM selection, lead management, AI implementation).
- Partner with proven industry consultants or experts who can provide strategic insights and measurable results.
3. Address Staffing Challenges
- Evaluate staffing needs in sales, service, and BDC departments to ensure sufficient coverage.
- Explore creative solutions like outsourcing BDC operations to international or remote teams to fill gaps effectively.
- Invest in ongoing training programs to upskill staff and combat complacency.
- Audit your current CRM system for inefficiencies, outdated templates, and missing processes.
- Provide team training to ensure full utilization of CRM features.
- Explore innovative CRM platforms, such as NCC or ProMax, to leverage advanced features for operational efficiency.
5. Leverage Artificial Intelligence
- Research and implement AI tools like Podium’s “Jerry” to handle lead management and customer communication 24/7.
- Develop a clear AI strategy that aligns with dealership goals, ensuring it complements human efforts rather than replaces them.
- Track performance metrics to measure ROI on AI investments.
6. Build a Culture of Excellence
- Surround your dealership with top-performing professionals and align with proven vendors and trainers.
- Study the methods of high achievers like Cody Carter or top-performing dealerships to replicate their success strategies.
- Encourage mentorship and collaboration to elevate team performance.
7. Conduct Regular Strategy Sessions
- Set aside dedicated time to review dealership performance and align priorities with high-value opportunities.
- Engage with industry experts, like Dealer Synergy, for periodic evaluations and tailored growth strategies.
- Establish measurable goals and monitor progress consistently.
8. Focus on Continuous Improvement
- Invest in ongoing education for leadership and staff to stay ahead of industry trends.
- Foster a mindset of innovation by adopting new tools and techniques that align with your dealership’s objectives.
- Regularly assess whether the advice or strategies being implemented are from qualified sources.
9. Eliminate Distractions Disguised as Opportunities
- Before adopting new tools, processes, or strategies, critically evaluate their potential impact.
- Avoid “shiny object syndrome” by focusing on initiatives that directly contribute to profitability and customer satisfaction.
10. Commit to Results-Driven Partnerships
- Partner with organizations and consultants that have a proven track record, such as Dealer Synergy
- Prioritize collaborations with professionals who provide measurable results and align with your dealership’s mission.
Implementing these action items will help your dealership eliminate distractions, optimize resources, and achieve sustained success.
My Commitment to You
Over the past 21 years, Dealer Synergy has helped generate over $12 billion in additional revenue for dealerships. My team and I—from my wife Karen, our CEO, to my daughters Kalina and Tianna Mick—live and breathe this industry. We’ve collaborated with major OEMs and industry leaders. Our track record speaks for itself.
This isn’t just a job for us; it’s our life. My mission is simple: to provide dealers with the tools, training, and strategies needed to thrive.
Final Thoughts
Dealers, it’s time to stop settling for mediocrity. Challenge yourself to focus on what truly matters. Before making any decision, ask, “Is this advice coming from someone qualified to help me?” If not, find someone who is.
I’m here to help you eliminate distractions and focus on what works. If you have questions or want a free strategy session, let’s connect and take your dealership to new heights. Together, we can make your dealership unstoppable. Success is within your reach—all you have to do is seize it.