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Learning Without Scars

Learning Without Scars

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    Learning Without Scars
    S1 E66•November 11, 2021•15 min

    Mets Kramer and Ron talk more on the Digital Dealership (1 of 4)

    Send us Fan Mail (https://www.buzzsprout.com/1721145/fan_mail/new) This Candid Conversation with Mets continues our discussion on the Digital Dealership. Here we cover the Products to select for the market segments we defined earlier. This begins the process of creating a series of direct marketing programs. Be sure not to miss this important Candid Conversation. Visit us at LearningWithoutScars.org (https://www.LearningWithoutScars.org) for more training solutions for Equipment Dealerships - Construction, Mining, Agriculture, Cranes, Trucks and Trailers. We provide comprehensive online learning programs for employees starting with an individualized skills assessment to a personalized employee development program designed for their skill level.

    Transcript

    0:01

    And welcome to another Candid Conversation. We're joined this afternoon with Metz Kramer, and we're continuing our discussions on the digital dealership. Our last podcast talked about jargon relative to the audience, then defining market segments, and then finally using that data and information to create a strategy. This is part two as we move along, and this one relates to marketing activities, and there's multiple pieces to this as well. Mats, welcome. Good to see you.

    0:59

    Good to see you, too, Ron.

    1:01

    In the last one where we dealt with the three, the jargon, the definitions, the strategy, I think we got the message across reasonably clearly, got a fair amount of traffic on it. Today, the three are... identifying the products to go after in this segment, what channels to use as a second piece, and then the audience segment, contact, et cetera, within the channel. And finally, how do we use all of that information together? So let's start with the products, the selection of the product in each segment as part of our marketing activity. The implication, I think, is not every segment is going to have the same product. True?

    1:47

    Exactly. So one of the things you start to realize is that in any business, you make certain assumptions about what your products are. And sometimes you get really kind of stuck on the idea that your product is the machine. Your product is the service department, which already starts to get people really thinking about what are my products really? What defines me? sending out a message about a machine, is that really the product that I need to place in front of that audience? Or is there a different product that I'm not even aware of? I learned this lesson doing one of those student painting companies during university. And it took me a long time to look back and realize that You know, I thought I was selling paint jobs. I was a pretty good painter first for years, and then I took over as manager. And I thought the reason that people hired me was because I was a good painter and we did a pretty good job.

    2:52

    And that was pretty naive, really, because the truth is, after many years, I realized that they weren't really hiring me to do a good painting job. They were hiring me because they liked the idea of helping put me through university. And I came to realize that when, you know, my first year I had like really nice people, university kids working with me who were nice and gregarious and customers love them. And then the next year I had more like technical people, people who are better painters, but customers weren't as happy. My sales didn't actually change. And so I think in the same way, a dealership needs to kind of think, you know, like, what's my product? What am I really selling? And I think that product then becomes even more important.

    3:38

    when you start considering who the message is coming in front of like which audience member is seeing it because there's where you differentiate right to for as an example and we'll get into it more later if you put the same machine in front of the people that know you and people who don't know you at all the person who doesn't know you at all only sees it Technically, they don't know. They don't understand the other value that you bring to whatever the price is and to buying it from you. Whereas your customer you have already understands that. And so you need to think about those things when you define like, what's my product? Maybe the product, most important product is your dealership. Nothing that it sells.

    4:19

    Yeah, it's what we have a class called You Make It Matter. And that each person who touches the marketplace, touches a customer, has their own brand. That goes back to your painting days. Originally, it's nice people at a university, they're gregarious, et cetera. And the customers are happier because there's more than just a paint job. They're contributing to society. There's other values to it. Exactly. And then now we come into the situation. The machine is our customer in the parts and service world. It's kind of perverse. If the machine doesn't operate, we don't sell parts and service. If it doesn't break down, we don't sell parts and service. If we don't do a good job on maintenance so that it avoids downtime, the bill goes up. So there's a whole bunch of very simple chain consequences to activities. So when I look at a segment, I guess where you're going to take me is, tractors with undercarriage are different than loaders with tires.

    5:31

    That's a very simplistic segment. True?

    5:35

    Yeah, like if your customer segment can be differentiated by the type of equipment they run, and then it changes the kind of product that becomes interesting to them.

    5:49

    And does it matter if they buy these things from you now or not?

    5:59

    I think it's important to put products in front of your audience members that matter to the audience member for the very important reason that the audience fatigues. And we can all think about this, like you sit in front of your computer and email keeps coming in. And if you start getting emails from a source that isn't interesting, it doesn't apply to what you are, then you stop looking. And so if you're constantly putting a message out to an audience segment that doesn't fit, they're not going to look. And they're just, when you do send them something that they should be interested in, they're not looking anymore. And that's, I think, the kind of thing where we have to look from our own perspective and what we're used to, you know, what our own activities and response is to these kinds of things and really think about, you know, is it really smart for me to... you know, send articulated trucks to all my little landscaping customers.

    7:01

    They're going to stop. They're going to start remembering that, you know, those notification emails from my company aren't that interesting to them, even when I do have something. So that's why I think it's really important.

    7:12

    And then we look at what I call delivery systems. One of those delivery systems is going to be an email blast to the general world, the general audience. Then there's going to be an email that's very specific to a specific product group within a specific customer grouping. Then there's the telephone where I call the customer and maybe amplify something or maybe it's a brand new subject. And then there's the touch point when a customer happens to come to the dealership that we constantly need to be having something available there for the customer contact people to be able to deal with. Am I making it too complicated?

    7:56

    No, I think you're starting to touch on understanding what audience is hanging out on each channel. How are they different? The person that walks in the front door is probably the same people that walk in the back door of the shop, but they're slightly different. There could be new people. The people walking in the back door, you know who they are. And so if you really think about that, that should help you define what is a product that is interesting to the people who are coming in each door.

    8:37

    So this takes us to some real fundamental basic marketing, which I think you have in your blog this week, the four Ps, product, place, price, and promotion, which, by the way, has been updated. It's now called SEVA. Yeah. Solutions, information, value, and access. You got to change the jargon, kid. You know, you got to keep up to speed on this.

    9:02

    I found like four C's, seven C's.

    9:05

    That's right. Buy this.

    9:07

    Everyone's got something, you know. If you're a marketing agency, you have to come up with your own so you can trademark it and not pay someone else.

    9:14

    Yeah. I used to tease people. I took industrial engineering at university. And in the 80s, here comes. Geron and Deming and now we got CQI or total quality management. Then here comes General Electric and Six Sigma and then here comes the Japanese again and 5S. And I used to tease and say, well, in the consulting world, all we do is we change the title and change our price and go ahead.

    9:41

    Exactly.

    9:42

    McKinsey can do it or Kinsey can do it. We can't, or I can't. So these things that we're The products, I'm calling them things, the products, that could be a service. It could be an hour of labor. It could be an inspection. It could be a part. It could be a visit. It's anything that is involved in helping your company sell to the customer. True? It

    10:13

    is. It could be the sales rep, right? If you're doing it really well, we've talked a little bit. The idea of the trusted advisor as a sales rep and, you know, in an information driven dealership that you bring value every time you show up to a customer site. If you bring information that's a value that helps your customer run the business. So in a sense, you know, if you can develop that relationship, if you can bring value every time, then you could actually make the sales rep the product.

    10:47

    And this takes us to the place that after every interaction, we want to have some. measure of survey, was that helpful or not? Did we do something for you or not? Very simple things. Not taking a long time, but did we satisfy your needs? Could be that simple.

    11:08

    Yeah, that's taking information back that we learn. like the survey results, but even something as simple as like, you know, which kind of email blast gets more opens, right? Like when we say defining component of the digital dealership is that it uses the information, it analyzes the information, it uses it to define it, you know? And that's why I think sitting down as a dealership occasionally and redefining what your product is in detail and just going through that exercise is really valuable. Rather than saying, oh, well, you know, we did our business plan 25 years ago and the product is wheel loaders and excavators and parts. So we don't have to go back to the beginning like that. I think that's where you miss out, where you're missing what the message is that you're getting across. And I think it's useful to do a little workshop with your team occasionally and really just rethink what are my products? How are my products perceived?

    12:07

    Yeah, I used to have an exercise that I did. We'd promote or suggest monthly meetings. And one of those meetings, we'd just have everybody, all of the employees, whether it's the parts department or the service department, or together. So let's make a list of what the customers need and want. Yep. Just randomly, here we go. No filter, nothing. Just take them all, put them up. And then consolidate them down so that there's three to five. main points. And then what we would do the following month, we'd have the customers come in.

    12:45

    Right.

    12:46

    Five or 10 different smaller group, but have them sit in front of the room and tell the employees what they needed and wanted. Yeah. The following month, then we looked at the disconnect between the two lists and it was huge.

    13:01

    Typically.

    13:03

    But as we did that repetitively. The difference narrowed down. The same thing probably happens here when we're selecting which products and services to give to which segments. We get better at it. Yep.

    13:19

    You probably heard the term like A and B testing. Yep. It's really big in the software world. Really, you're a victim of it. Every time you use a social platform, you don't even realize that you're looking at one version. of the platform and someone else is staring at the other version and they're measuring to see, you know, what the response is. You know, that's really the same kind of idea. If you put out two brochures and for the same product and whoever sees brochure A buys more than who says, who sees brochure B, then you're like, okay, A must have defined the product or connected with my audience better. I did a better job of understanding what the product was that the person was looking for in brochure A. And so I'm not going to use brochure A from now on. Give it a B.

    14:09

    Yeah. Yeah. Okay. So let's put a bow on this one relative to the products and services that we're going to do in each segment. And we'll move on to the second piece in our next session. So unless you want to wrap this up with a particular way, I'd like to close this piece down. so that we can get over to the next. Does that work for you?

    14:32

    It works for me. I think we'll get back to the rest later. Okay.

    14:36

    Thank you, Mets, and mahalo to everybody who's been listening to our blog. We look forward to seeing you at the next blog with Mets on the digital dealership. See you soon.

    15:02

    www. learningwithoutscars. com The time is now. Mahalo!

    Mets Kramer and Ron talk more on the Digital Dealership (1 of 4)

    0:00
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