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Press - dealership
Media Coverage of Pied Piper Management Company LLC
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PowerSports Business
Harley-Davidson dealers top PSI scores for second year in a row
May 2013
Harley-Davidson dealerships received the highest score in the 2013 Pied Piper Satisfaction Index (PSI) released this week. However, Suzuki dealers ranked No. 1 in the PSI-Internet Lead Effectiveness study.
Look for more on the PSI results in the May 27 issue of Powersports Business. The following is the news release from Pied Piper Management Company, LLC:
Harley-Davidson dealerships were top-ranked in the newly released 2013 Pied Piper Prospect Satisfaction Index (PSI) U.S. Motorcycle Industry Benchmarking Study, which measured dealership treatment of motorcycle shoppers. Study rankings by brand were determined by the patent-pending Pied Piper PSI process, which ties “mystery shopping” measurement and scoring to industry sales success.
For the first time since 2008, Pied Piper also separately measured how effectively motorcycle dealerships responded to customer inquiries received on-line through dealership websites.
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Dealernews
Harley dealers top Pied Piper mystery-shopper study
May 2013
MONTEREY, Calif. - Among motorcycle retailers, Harley-Davidson dealers treat shoppers the best — although Suzuki dealers excel when it comes to following up online leads.
These were two of the findings of a pair of new studies: the annual 2013 Pied Piper Prospect Satisfaction Index (PSI) and a separate study by the same firm that, for the first time since 2008, measured how well motorcycle dealerships responded to customer inquiries received online through dealer websites.
Dealer service provider Pied Piper conducted its PSI study between July 2012 and April 2013 using 2,503 hired anonymous mystery shoppers at dealerships representing all major brands, located throughout the U.S. After each visit, the shoppers answered yes-or-no questions.
Using data collected from its clients, Pied Piper claims to have found a link between the mystery shopping scores and dealership sales.
Harley-Davidson dealerships led all brands in 18 different sales activities, such as encouraging shoppers to sit on a motorcycle, asking for contact information and helping the shopper overcome obstacles to the purchase.
Eleven different brands led at least one sales process category, and brand performance varied considerably from brand to brand. For example, Ducati salespeople offered a brochure to about 9 shoppers out of 10, while less than half of Suzuki, Honda or Kawasaki salespeople offered a brochure. BMW, Triumph and Harley-Davidson salespeople were more than twice as likely to offer a demo ride as the salespeople at Ducati, Suzuki, Honda and Yamaha dealerships, the study found. Victory salespeople were most likely to suggest arranging a demo ride in the future.
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Motorcycle.com
Harley-Davidson Tops 2013 Pied Piper Prospect Satisfaction Index
May 2013
Harley-Davidson dealers outscored dealers from other brands to take the top spot in the Pied Piper Prospect Satisfaction Index U.S. Motorcycle Industry Study for the second consecutive year.
The annual study measures the effectiveness of motorcycle dealerships, rating them on how they perform in different categories, such as inviting customers to sit on a floor model, offering demo rides and asking for a customer's contact information. The study was conducted from July 2012 to April 2013 with data collected by 2,503 hired “mystery shoppers”.
We've included the full scores below as well as the scores from past years. One caveat however: Pied Piper PSI has rejigged its study questions and adjusted the weighting and scoring for the 2013 study to achieve an average score of 100. This resulted in a significant scoring changes compared to last year's study and a wider range between the highest and the lowest scores.
Harley-Davidson dealers ranking highest score of 111 while KTM dealers ranking last at 73. Last year's study had Harley-Davidson leading the way with 108 while KTM again ranked last but with a score of 92.
Harley-Davidson dealers outperformed all other manufacturers in 18 different activities including encouraging customers to sit on motorcycles, asking for contact information and helping overcome obstacles to a purchase.
Second place in the 2013 Pied Piper study was Ducati with a score of 107. Ducati dealers offered customers a brochure nine out of 10 times to lead all manufacturers. By comparison, less than half of Suzuki, Kawasaki and Honda salespeople offered brochures. Ducati dealers however were less than half as likely to offer a demo ride as BMW, Triumph and Harley-Davidson dealers.
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Powersports Business Blog
Turning those lookers and shoppers into buyers
January 2013
Turning all those lookers and shoppers into buyers is, in retail, the “holy grail” of topics. We send our managers and sales folks to workshops and seminars looking for answers. We test the waters, view the landscape, and hope that just over the horizon is the Promised Land, the mother lode.
Retail gurus who enlighten the sales process in ways that ensure success are far and few between, if they exist at all. That's not to say there's no one out there who can guide and direct, teach and mentor, in ways that can be beneficial. There are plenty of us walking around doing just that. But here's the rub: There's a lot more to it than just processes and procedures.
It's more than all the social media you can throw out to folks or how many craigslist listings you all can do in a day. It's more than door swings or what you have or don't have, and it's not about the potential we all have.
It's about making sure that what needs to be done is really being done. That's the missing link and it's more important than ever. Lookers and shoppers are a commodity too important to waste.
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Powersports Business Blog
Remember “You Meet the Nicest People on a Honda?”
January 2013
The big news from this year's Long Beach motorcycle show is not what happened, but what might happen. First though, remember the Honda motorcycle ad, “You Meet the Nicest People on a Honda?” Believe it or not, 2013 marks fifty years since that ad helped mainstream America notice — and buy — motorcycles in the 1960s.
Back to the Long Beach show … At last year's show, Honda released the CBR250, a sub-$4,000 model aimed at driving new buyers into dealerships. At this year's show, Honda introduced a lineup of three 500cc motorcycles, starting under $6,000. Like the CBR250, these new 500s will appeal to new riders, but the solid designs look much better than we might expect of “beginner bikes.” It is not just Honda either. Kawasaki's new Ninja 300 is a similarly attractive product with a price that will not scare away new riders.
Think about these products … Five or six years ago — during the time of $10,000 600cc sport bikes — manufacturers and dealers would have paid little attention to a $6,000 500cc motorcycle. After all, the profit margin to the manufacturer for these “beginner bikes” pales in comparison to that of a $10,000 motorcycle, and the same is true for dealers. Last week while visiting a Honda dealership, I heard complaints about the low gross available on the new CRF250L. “Hardly worth the effort to sell it.”
But let's think back to 1963, and what might happen today. We can complain about selling less expensive motorcycles, or we can turn 2013 into 1963 all over again. The gross from today's CB500 or Ninja 300 sales may be lower than we like, but those customers are likely the key to the industry's success. They may not remember that 1960s Honda ad, but these new customers will go on to buy multiple bikes and accessories over the years and will also attract their friends—a whole new generation of riders—into your showroom.
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Powersports Business Blog
Why I Still Love Powersports
December 2012
I count myself as one pretty lucky fellow. I have the great fortune to be able to meet and talk to a lot of wonderful people. I get to interact with dealers from all over the country, share information and ideas and pass it all on to others that can use it. Sharing ideas and mentoring others is something to embrace, and I relish the responsibility.
I was really struck by this during a couple of impromptu dealer visits a few weeks ago. These visits were just about looking at two dealerships that were totally different in look and feel. Both made me remember why I got into this industry, along with why I've stayed in it.
The first was a multi-line dealership that took my image of what powersports dealerships should be to a whole other level. This has nothing to do about practices. This is about the visual experience, the presentation. This is a statement about where we can go if our desires push us to believe in dreams.
I was blown away at the scale of what had been created, with the dealership anchoring it: A museum that was visually stunning. A restaurant, Zagat rating of 22! The restaurant walls were adorned with vintage pieces of different motorcycles that long ago stopped being part of something we would ride. Throw in a high-end hotel for good measure and you have your 21st century motorcycle dealership. It was so cool.
As I left, there was this overwhelming sense of pride in the industry that chose me to be a part of it so many years ago.
Next, in complete contrast but equally perfect, was a dealership that's been around since time began. I walked through the doors, and I could feel the history. I closed my eyes and could smell the past. This dealership also had a museum, and as I walked through it I was taken back to days of Gary Nixon and Kenny Roberts. Motorcycles ridden by the greats of our past were all there.
This was “old school,” and what a great old school it was. I was like a kid in the candy store as I was shown around. I was told stories that took me way back. And I was reminded that many of the ways we used to do things still work today, and that the past is still part of our future.
It's our charge, generation to generation, parents to children, teachers to students, to impart what we've learned. Wisdom guides knowledge, and we empower others' abilities and desires for growth. We then pass on the responsibility of carrying that torch to the next generation. It's amazing how much information we all have tucked away, and just as amazing as what we can do with it.
To look backward for a while is to refresh the eye, to restore it, and to render it more fit for its prime function of looking forward. ~- Margaret Fairless Barber
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Powersports Business Blog
The Basic Stuff
October 2012
I was in a dealership the other day conversing with a few of the team leaders. The discussion was centered on what was (and what was not!) happening in their sales department.
“Let's focus on which policies and procedures are being used in the department,” I said. “Great,” was the answer back from most everybody — except I did notice a “Why are you wasting my time?” look from one of the team leaders.
“Let's start with some of the basics,” I said, “like introducing yourself and asking someone's name.” The why-are-you-wasting-my-time fellow gave me a sour look that said, “I know that.”
“Great,” I said, “Let's talk about the importance of the write-up process and of making sure we always get contact information.”
“I know all about that, too” sneered you-know-who.
“That's even better,” I said. “And I bet you know the importance of always asking for the sale, or finding out what is preventing the purchase today, right?”
His indignant answer was, “You bet! After all, this is pretty basic stuff.” I agreed with him that it was.
Basic stuff: Asking for someone's name, introducing yourself, building rapport, a little fact-finding, getting contact information.
Basic stuff: Giving that prospective client a reason to want to buy from your dealership and from you.
Basic stuff: Explaining all the options you offer to make their purchase a memorable one — all the great reasons they will want to tell all their friends about and all the people they will recommend you to — because you did all the BASIC STUFF!
My know-it-all puffed his chest out and repeated, “I know all this.”
“Yes, we all know all this. But do you do ‘all this basic stuff' with every sale, with every opportunity?” I asked. There was silence. Mr. Why-are-you-wasting-my-time was pretty quiet, too.
You can know it all, but it is worth absolutely nothing if it's not implemented — implemented always, implemented without fail. This is after all, just basic stuff.
Every sale has five basic obstacles: No need, no money, no hurry, no desire, and no trust.
~ Zig Ziglar
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Powersports Business Blog
Data Analysis or Listening to People?
September 2012
How many times have you looked at a fact or some type of information that you just don't believe? This can't be true, no way, no how.
We live in an age of unlimited data collection. We have facts and figures that go on for miles, reasoning for any type of situation, a database fed and stirred with information, simmered until done. We then shape our decisions, sometimes rightly, and other times … hmmm.
At times, some of the best information comes from personal interaction, not preconceived ideas or solutions based on a database. It's not that the information is wrong — most of the time it's spot on — but there has to be more to it.
On a dealer visit recently, I had all my data, facts and figures checked, with reasons for this and solutions for that. At the same time, the dealer was doing the same thing. He knew everything that was going to transpire before I arrived (fair is fair) based on available information, preconceived thoughts based on the data he had.
Here's the rub. We found that we both had the right data; we both had good reasons for why and why not, but our preconceived ideas were a bit off. A shift could not have happened without personal interaction.
The first preconception was our first interaction. I walked in and he said, “You guys are all the same. You come in carrying your briefcases and a cup of coffee.” Maybe I shouldn't have arrived with the coffee (it was early though, and decaf). “Really,” I said. “Really,” he said back.
The data fencing commenced as we probed and jabbed quickly looking for reasons why and why not. Our preconceived ideas and solutions had to be right — we had the data; we had the right stuff!
Within about 15 minutes we both found mutual likes and things we agreed on. “You guys are all the same” was quickly forgotten.
This is good stuff to think about. There are a lot of folks out there (not just dealers) who believe that the data you bring them is a bunch of wasted facts and figures that can't possibly be right. You hear, “We were off a bit that day,” or “My team would never do that.” At the same time you have the data folks saying, “The outcome is correct based on the information.”
The truth of the matter is, we can all be off a little at times, and facts can be skewed. Information is only as good as when it's collected, the moment of the snapshot. But if it happens over and over, there is a pretty good chance that the information is right. And, if it's something you don't see over and over, maybe there was a reason that needs to be taken into account.
This visit had exceptional interaction. We looked at all the information and threw away any preconceived ideas we both might have had. We shared ideas along with the data: our visions for growth and what might be done using all the information that was available.
None of this would have happened without personal interaction along with the data. We should never have cookie-cutter approaches to anything. Our businesses are different; we are different, and the way we look for solutions and improvement can be different — and equally successful.
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Powersports Business Blog
Harness anticipation to boost customer satisfaction and profitability
August 2012
Matt Appleman runs a very small custom bicycle shop in Minneapolis, specializing in hand-built carbon-fiber bicycle frames. Matt's business may be small, but he has adopted an important sales tool — anticipation — that you can apply at your dealership too.
Matt describes how he builds bicycles like this: “Upon approval of the design, the fun starts for me, and the anticipation begins for you! As the frame is being built, I'll keep you up to date with pictures of the framebuilding process …” There's that word, anticipation. He goes on to describe how in time the bike will be delivered to the new owner. You can bet also that when he sets a delivery date in the future he will stick to that schedule — under promising and over delivering.
Back to our question … How can we harness “anticipation,” and for that matter, Matt's successful process, at a motorcycle dealership?
First, recognize that a customer having to wait for delivery — for sales, service or parts — does not have to be a negative experience for the customer. In fact, ironicaly, waiting for something can make a customer enjoy it even more.
But a customer having to wait can also be a disaster. What's the difference?
Three important steps:
1. Set time expectations up front. Always under promise and over deliver.
2. Take the time to keep your customer updated while they are waiting. Give them interesting facts while they wait. Or even better, with today's easy-to-use smartphones, snap a photo of progress and email it to them.
3. Deliver on time. The only way anticipation continues to be a positive is if in the end the delivery is on time.
Your best customers are the ones who are loyal, repeat buyers. Grow more of them by throwing in a little anticipation.
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NBC News
Mercedes aims to oust BMW as top luxury brand
July 2012
It's one of the most bitter battles in the American automotive marketplace, and it pits two of Germany's luxury automakers in a grab for the brass ring. But this year, Mercedes-Benz is betting it can topple rival BMW to become the best-selling luxury automotive brand in the world's largest high-end market.
The maker has been staging a series of meetings with dealers across the country aimed at improving customer handling. Dealers, in turn, have spent about $1.5 billion to upgrade more than 90 percent of U.S. showrooms. The results appear to be paying off.
“Mercedes sets the benchmark,” said Fran O'Hagan, whose Pied Piper Prospective survey uses thousands of so-called “mystery shoppers” to measure how manufacturers are handling the sales and service process. Mercedes bested such stalwart competitors as BMW, Lexus and Audi in results released earlier this month.
And that's apparently helped it gain a leg up on BMW. It held a 2,000-unit lead over the Bavarian automaker for the first half of 2012 after narrowly losing the U.S. luxury sales crown in 2011. Anything can happen, especially if rivals BMW or Lexus ramp up incentives spending, Mercedes officials admit. But it's clear they are ready to pull out the big guns to grab the ring this time.
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