No stranger to rate cards and sales meetings, Paul Jacobs takes a few minutes to school us about how generating radio revenue and local car dealerships are being redefined. Paul moderated the car dealer DASH session, and clarifies some of the post-reactions to that panel and what it all means to radio. Buckle up. – FJ
Those who attended the DASH Conference witnessed something very unique – an event that connected two storied industries – radio and automotive – by showcasing the best and brightest people and ideas. In creating the agenda, our mission was to provide a 360° overview of the issues so our attendees could leave with a much clearer understanding of the problems and opportunities that lie ahead.
In the days that followed DASH, several articles and summaries have appeared in a number of industry publications, as well as this blog, each providing analysis and perspective.
But in Radio Ink, an eruption of comments about our car dealer panel broke out, spurred mostly by some of the comments made by a Grand Ledge, Michigan dealer, Barry Merrill. At the session and in his post interview with Ed Ryan, Barry (below center, flanked by Wes Lutz and John Taylor) talked about how his advertising dollars have moved away from radio and into the digital arena.
While Merrill’s comments may have been disconcerting or even uncomfortable to radio executives, many commenters jumped on either the “radio hate” or “car dealer hate” bandwagon, voicing strong opinions.
Which is kind of like judging a NASCAR race by the crashes.
Over the past several months, I’ve interviewed a number of car dealers (other than those on this DASH panel), and spoken with several industry leaders in the dealership space who are facing modern-day challenges. As the moderator of the panel that is being widely quoted, I have a unique perspective of the car dealers on stage and the messages they were conveying. Many of the comments in reaction to the Radio Ink interview with Barry Merrill lack the context that those of us in the room at DASH were able to enjoy.
So instead of responding to sound bites and conjecture, here are some takeaways and perspective from this session featuring three car dealers who took the time to share their experiences about “moving metal” in 2013.
In short, car dealerships are changing rapidly, just like many other business categories. The ways in which they advertise and market are evolving, and that was a major part of the message of this session.
Here are some key takeaways from our DASH car dealer panel and why it is of particular importance to many of you reading this blog:
- Relationships still matter. While metrics and digital media are changing the game for dealers, the person who calls on them has the ability to accomplish a great deal by connecting with the decision makers at the dealership level. We all know about turnover in the radio sales ranks, and this may be having an impact in this sector (not to mention others). The car dealers aren’t against radio, but they sure don’t like bad salespeople – including their own.
- They have clear goals and needs. Our car dealers were extremely forthcoming, sharing what they want from radio – fresh ideas, a heightened understanding of their business, and rather than baiting them with “one day sales,” a more collaborative approach based on their needs. Outside of Barry’s quote in the post-interview with Ed, no one on stage said they’d never buy radio again. In fact, it was pretty clear that if a radio seller did her job, came up with a compelling concept, and backed it up with metrics that matter, these guys would give it a shot.
- Listen to them. We had a car dealer tell us (not at DASH) that sales reps often walk in with their agenda, rate cards, promotions, and special deals, but often don’t listen to what the client truly needs. There are partnership opportunities here, but it would be wise to take the time to listen to dealers whose priorities are changing. And on that note…
- Understand what moves the needle. Stop approaching dealers to sell them cars. They make virtually nothing on new vehicle sales, while the profits are made in the service bays and on their used car lots. That knowledge could easily be translated into revenue generating opportunities by a smart salesperson.
- Radio is selling with the wrong metrics. They don’t care much about your rankers and how your station performed in the latest monthly or quarterly. Or against your in-format competitor. While they all appreciate broad reach, the trend is toward trackable results. Thus, dollars are moving to providers who can provide that level of data. SEO, SMO, and yes, Pandora offers that. My advice? Create products that can help fill this need.
- And what can radio do to differentiate its value? What is it your brand – or even your medium – offers that sets it apart from the onslaught of new media choices, pure-plays, and other bright shiny objects? What do you have they don’t have? What do you know about the market they don’t know? How can you mine your email and/or text database to deliver great prospects? And don’t tell me it’s the van, a card table, two interns, and the prize wheel. Radio has to dig deeper to achieve resonance and derive more revenue in this environment. And that’s what will lead to sales.
These car dealers took the time to lay out the plan for how radio can keep their business – or in some cases, win it back. The very fact they drove as many as 200 miles round trip (in Barry’s case) to join us for DASH shows they value radio. They were critical, but honest. If they hated radio, they wouldn’t have shown up. But they also sent DASH attendees a very strong, and potentially positive, message – give us what we value, and we’ll give you money.
In their candor, they did us a favor. By their presence, they’re telling us they have interest in radio and what we’re doing (they told me that in the pre-panel discussions). But these gentlemen were honest enough to call out radio in areas where they believe it’s falling short.
And we should thank them for that.
The real lesson from this session? If the radio industry starts listening instead of pitching, invests in quality salespeople, focuses on relationships and not just getting on the buy, and creates digital revenue solutions that are trackable, it may find itself in a much better position with local dealers and dealer groups moving forward.
Car dealers are experiencing a great deal of change and disruption themselves, especially as they forge new and different relationships with car buyers who need more attention and care because of these digital dashboards. Perhaps we can actually work with car dealers (and a growing list of other categories that are moving in this direction) to grow both of our businesses.
The good old days are over and the rules of engagement have changed. The car dealers at DASH told us what they want and how they want it. This isn’t the time to be defensive or angry.
This is the time to listen, engage, create, serve, and thrive.
Let’s drive.
After a brief stint working for the William A. Robinson marketing services agency in Chicago, where he created campaigns for Philip Morris and Seagram's, Paul struck gold when he was hired as an Account Executive at WRIF-FM in Detroit. This experience launched his sales management career, and four years later, he became the General Sales Manager for KZEW-FM in Dallas, and ultimately, the General Manager for KHYI-FM, also in Dallas. He was lured home to run WDFX-FM in Detroit, before joining Jacobs Media as its General Manager in 1991.
Along with overseeing the day-to-day operations of Jacobs Media, Paul’s main contribution has been the addition of sales consulting services. As an expert in all Rock formats, Paul has made Jacobs Media clients’ untold amounts of money by aiding them in their understanding of how to sell, market, and position their formats via sales training seminars. He has conducted hundreds of client presentations on behalf of Jacobs Media clients, and has aided the Ford Motor Company and Procter & Gamble in improving their understanding of the youth market. Paul is a true "format champion" – someone who believes in the power of branding, and developing radio’s inherent assets.
- What Kind Of Team Do You Want To Be? - October 4, 2024
- The Revolution Will Not Be Monetized - August 20, 2024
- BIA’s Rick Ducey:How Radio Can Capture A Bigger Piece Of The Revenue Pie - June 27, 2024
As one of the dealers on the panel last week I would like to inform everyone that I use radio and that I have a excellent working relationship with the local stations. We are currently working with a local station to sponsor all of the area high school football games by giving away the use of a 2014 Jeep Wrangler. It was a well conceived promotion presented professionally that we felt would give us great visibility and sell product in our market. I have been a dealer for 37 years and currently spend less of my advertising dollars on radio than in the past but I feel that it is a function of the increased number of competitive options available today. I choose to spend my advertising dollars based on what I perceive will give me the greatest return on investment. If your sales person can give me a compelling reason to purchase radio, I like most dealers are open to doing so. And to set the record straight: I was not compensated to participate on the panel, I spent 5 hours of my time, paid for my own gas and parking to be there. My advice to you is this: IF 2013 IS THE BEST YEAR YOU’VE EVER HAD then I wouldn’t pay any attention to the what we had to say. But if you think there might be room for improvement I hope that we at least started a dialog. Thank you again for taking the time to listen to our panel.
Wes, thank YOU and Barry and John for taking the time to elevate the conversation and inform our conference of what’s truly happening in your world. Change is never easy, but we need to face it eyes wide open. We knew your panel would stimulate thought and opinion, and we owe you and the others a great deal of gratitude for giving up your time and being so candid. We believe DASH has already made a difference, and your panel is a big reason why. Thanks again.
Snarky rant alert!!!
The car dealers are right of course – and its interesting how the problems and solutions offered by those car dealer panelists ring true all the way up to radio’s CEO suiste.
As long as we’re in a “let’s be honest” mode, let’s be honest about what’s caused radio sellers to be showing up at car dealers with their “bag of trick” and throwing a 25 years out of date kitchen sink at them, rather than a needs based, client focused approach.
When management limits upward mobility and growth, consistently plays bait and switch with comp plans, forces overworked sellers to paint lipstick on their digital pigs and sets the worst possible example, well, don’t expect anything more than mediocrity in return. In detail:
1) Non competes. They basically say that you can’t EVER improve your situation unless you change industries or cities. What talented, up and coming, or otherwise ambitious seller would agree to that?
2) Goal post moving. We all know that bonuses are thrown out there and then when someone is about to hit one, goals are changed at the last minute so the station doesn’t have to pay the money. What talented, up and coming, or otherwise ambitious seller would agree to that?
3) Dishonest Digital Focus. Money is moved around so that they can pretend that their mostly low value digital assets are generating money far in excess of what they really are generating. This creates more busy work for sales people that costs them credibility with their clients. What talented, up and coming, or otherwise ambitious seller would agree to that?
4) Terrible examples set by CEOs. They all crow about needing to “tell their story better”. It seems that the theme from the auto dealers is that radio need to tell CLIENT’S story better, not radio’s. What talented, up and coming, or otherwise ambitious seller would be inspired by that?
I wonder how much of radio’s inability to recover much of its pre 2008 revenue is due to the dumbing down of its sales effort. I also wonder how these folks getting paid millions and millions every year could possibly think that the conditions they’ve made the industry standard would attract anything close to the best and brightest.
I predict that they will continue to be paid millions and leave the sales structure as it is.
Some snark factor to your comments, Bob, but also a lot of nodding heads from people reading them. I would love to hear from some sellers (or former sellers) who can confirm, modify, or deny, but clearly instability and other chaos in the cubicles are also contributing factors to radio’s issues at the dealership level. Thanks for taking the time to add to this conversation.
Greetings
Wish I had known about this conference.
After reading everything here I think everyone has missed the point.
I have been in a thousand dealerships and radio facilities, spoken to dealer 20 Groups and radio sales forces in 38 states and 4 foreign countries.
There is one obvious answer to both Dealership Results and Radio Sales success. They go go hand in hand.
Marvin Gaye got it right when he sang: “IT TAKES TWO”
The dealership that has the answer will buy all the radio you have to sell and will achieve all sales goals both front and back end.
The Radio organization that understands the answer can exceed all its own sales goals with dealerships. It took me 35 years to learn that what I already knew at the beginning is still valid. Oh I absolutely did learn the Dealership Business from Dealers themselves, but Radio taught me the secret everyone is overlooking. Problem is Radio forgot and Dealers don’t know…..yet Not enough space here to explain.
Thanks for “listening”
Lee Alan Reicheld
Lee, it is an honor to hear from a true radio legend in this space. And your work over the years marrying car dealerships and radio has obviously produced unprecedented results. From a distance, my observation is that you always had a keen, inherent understanding of what made these businesses tick and partnered with them to achieve your mutual goals. It may sound simple, but as I read your comments and thought about the thousands of commercials you’ve written, voiced, and produced over the years, it falls into place.
It’s notable that Barry Merrill – the dealer from Grand Ledge who has moved away from radio – was more concerned about the lack of relationships he had with area stations due to personnel changes and turnover. He may have cited metrics and digital opportunities, but it seemed like his chief concern was that no one was really looking out for his business and taking care of him company’s needs.
Sales 101.
Lee, I can’t thank you enough. And I am proud to admit that you were of my influences growing up as I got into radio and rock n’ roll. Thanks for much for taking the time and for making a great contribution to the radio and automotive industries over the years.