Renaissance Man
As printed in the May 2013 issue of Auto Dealer Monthly and F&I Magazine
Article by Gregory Arroyo, Editorial Director
Mike Esposito is a bit of a Renaissance man. To the more than 900 dealers he does business with, he’s known as the president and CEO of Auto/Mate. His education is rooted in mechanical engineering, but he also holds a master’s degree in business. In his free time, Esposito builds fine furniture. It’s a hobby that relieves stress, but it’s also a diversion that requires extreme focus — the same type of focus he’s had since taking over the technology company in 2005.
ADM: You’re into fine furniture, correct?
Esposito: That’s right. It allows me to forget about everything else that’s going on in the world. But you’d better be focused on that saw or they’ll start calling you “Lefty” if you’re not careful.
ADM: So, how did you wind up at Auto/Mate?
Esposito: I started with General Electric and was with them for about 10 years. Then I was with Schlumberger Limited, which is an oil services company, for about another 10 years. I worked in the company’s Fairchild Semiconductor division. After leaving Schlumberger, I wound up running a car dealership through sheer happenstance in the early to mid-’90s. I did that for about five years before meeting the gentlemen who owned Auto/Mate.
ADM: George Hearst, the great-grandson of newspaper titan William Randolph Hearst, was the one who introduced you, right?
Esposito: I knew George through the dealer I worked for as general manager. The dealer was big into polo ponies and George was a big polo player. Through that acquaintance we’d go to polo matches and that is where I met George. It sounds more impressive than it was.
George asked me to direct his technical guys on how to develop a used-car website for the Times Union back in ’95 or ’96. A couple of years later he asked me to meet with these two guys who had this little computer company. That’s how I met Steve and Paul Fullum. Steve was Auto/Mate’s chief software architect.
ADM: I read that the company was doing 20 deals per year before you came in. You stepped in back in late 1998 and did 14 deals in six months.
Esposito: I remember telling them during our first meeting how much I disliked ADP, which my dealership was using. Well, they never acted on that. You really had to want to buy from them. So, what I did was help the company get more proactive about selling.
ADM: You took over as president and CEO in 2005, correct?
Esposito: That’s right. We had 200 dealers at that point. We’re now closing in on 1,000 dealers, which is right where we want to be.
ADM: Auto/Mate prides itself on its customer service. How do you maintain that while also growing your company’s footprint?
Esposito: What I say to dealers when they ask me that is, “My father taught me you leave the dance with the girl you brought to the dance.” That is analogous to my dealers; the dealers I have are the ones that have made us successful. For me to leave my date for a 50-store blonde floozy, I won’t do that.
ADM: How did the Great Recession impact your business?
Esposito: I think dealers got religious about their expenses during the downturn. Like that old adage, “Gross hides all problems.” Well, when sales started to go away, dealers started paying attention to expenses. That’s when they started wondering why they were paying so much money to our competitors.
ADM: They also started questioning those long-term contracts. You operate monthly. Did that help your cause?
Esposito: That’s part of it, but we also got involved with Toyota back in 2010. We were one of the two DMS vendors who helped Toyota redo its entire dealer communications system. Historically, if you were a Toyota dealer, you could only use ADP and Reynolds. You have to take your hat off to Toyota. The knee-jerk decision would be to use ADP and Reynolds because they have 98 percent of dealers. But they didn’t and decided to use non-legacy system vendors. And when Toyota announced that we were one of two companies to integrate with them, people started to take notice.
ADM: With the Driving Sales Award you earned this year, I guess people did.
Esposito: The thing I was really proud about was not only were we voted the No. 1 DMS in customer satisfaction, the other DMS vendors weren’t even close.
ADM: Last June, you launched a third-party integration platform. Had you previously not been open to third-party integration?
Esposito: We’ve always been open. What we announced was a new technology we’re utilizing. It’s a real-time bidirectional process, which is what you need with the level of technology available today.
ADM: I noticed you recently released a new service tool. Is that where your focus is this year?
Esposito: We recognize that a lot of dealers leaned on their fixed operations to get them through the downturn. Our interest in fixed ops also is being driven by the market. A lot of the stuff dealers are looking for has to do with service. They want to be able to retain customers through service. So now they’re talking about mobile advisors, conducting multi-point inspections on the service lane, and using [radio-frequency] ID tags when the car comes in so they can service the customer faster.
ADM: Your newest service tool connects a Windows-based tablet to your DMS service module. Will you be doing more in mobile?
Esposito: My take on mobile is it makes a lot of sense on the service lane. Historically, you’ve always wanted your service writers to go to the car, talk to the customer, and then inspect the vehicle and write up a repair order in front of the customer. We did that 15 years ago on a clipboard; the technology just caught up.
ADM: What is your outlook for this year?
Esposito: As long as the credit stays cheap, it’ll probably hit 15 to 16 million units.
ADM: Are there any issues that concern you?
Esposito: Dealers need to be paying attention to this data issue. The problem is they aren’t. In a lot of cases, they can’t really know what’s going on because they have data aggregators who are pulling data and doing other things with it. But the bottom line is the dealer is going to be liable for it.
http://www.autodealermonthly.com/5/4785/ARTICLE/Renaissance-Man.aspx
Need a Strategy for Success? First, Hire the Right People (+ Tips on How to Hire Them)
A common perception of what makes a business successful is as follows: the leader is a genius who has a vision, defines the strategy, and all the employees work to make that vision into a reality.
The reality, however, is far different. In the best-selling business book, “Good to Great: Why Some Companies Make the Leap and Others Don’t,” by Jim Collins, a team of researchers discovered that the most successful leaders focus on getting the right people on board before they set strategy. In essence, they load a bus with the right people and get them in the right seats, before they decide where to drive the bus.
An example of this was in the early 80’s when Dick Cooley became CEO of Wells Fargo. Cooley foresaw great changes ahead in the banking industry, but he did not know exactly what those changes would be. (Sound familiar? As much as the auto industry has changed in the last few years, I believe more change is ahead).
Instead of trying to anticipate those changes and set strategy, Cooley decided to hire the best team he could so he could cope with any and all challenges. He hired the best people he could find, many times without a specific job in mind. When the changes finally did arrive in the form of de-regulation, Wells Fargo weathered the changes better than any other bank.
In contrast, while companies led by a “genius with a thousand helpers” can be very successful while the genius is at the helm, once that genius leaves, those companies inevitably experience a decline (think Apple). A great vision without great people is eventually rendered irrelevant.
So how do you find great people? When preparing for interviews, doing a little work up front will go a long way in helping you find the right person for the right job. Ask yourself the following and prepare questions that will give you the answers:
1) Can they do the job? Give candidates hypothetical challenges to solve and pay as much attention to how they analyze and approach the problem as the solution. Ask them to complete a project before the first interview and give them homework between interviews. Also, give them three hypothetical projects and ask them to rank which they’d most and least like to work on, and why.
2) Will they do the job? Here you are looking for self-motivation. Ask them tough questions about why they want to work for you and what their work ethic is. Ask them about their likes and dislikes and what their passions are. In general, self-motivated people:
- Have a purpose in life and live it
- Are not afraid to take risks or go outside of their comfort zone to achieve a goal
- Are energized when given a new project, jumping in with both feet
- Are able to laugh at themselves, admit vulnerabilities and take criticism
- Learn something new every day because they love learning
- Believe in themselves and others
- Are persistent and willing to explore new options if something isn’t working
- Strive for health in all aspects of their life; physically, emotionally, spiritually, intellectually and socially
- Are able to rise above failures, adversity and loss
Also ask candidates what they think “successful” means, and how that person has tried to achieve it. In general, most people decide early on in life how successful they are going to be or want to be.
3) When in doubt, don’t hire. Keep looking. If you are having trouble finding the right person to fill a position, don’t compromise. Find a way to get through until you find the right person.
4) If you need to make a people change, act sooner rather than later. The moment you feel like you need to highly manage someone, you know you’ve made a hiring mistake. If you are giving third and fourth chances, hoping for improvement and wasting precious time and energy thinking and worrying about an employee, act sooner rather than later. Keeping the wrong person on board is unfair to that person and to all your other employees who have to work with them. Let them go and everyone will be happier for it.
With the right people in the right jobs, creating a vision and defining a strategy for success will be easier because it will be a team effort. Involving your employees in the decision, “where to drive the bus?” will motivate them to help you get there.
What tips do you have for hiring the best people? How do you keep them happy?
Auto/Mate Announces Integration With Xtime ServiceCRM, Enhancing Fixed Ops/Mate for Auto Dealers
ALBANY, N.Y. – May 14th, 2013 – Auto/Mate Dealership Systems (http://www.automate.com) announcedtoday that its AMPS Dealership Management System (DMS) is fully integrated with Xtime ServiceCRM, the leading cloud-based customer retention management (CRM) and scheduling platform for the automotive service industry. Dealers using AMPS can now take advantage of seamless, bi-directional data exchange with Xtime Service CRM to improve customer relationships in their service departments.
“Dealers have come to rely on their fixed ops departments for a significant portion of revenue, and making the service experience pleasant for customers is increasingly important to stay competitive,” said Mike Esposito, President and CEO of Auto/Mate Dealership Systems. “The integration benefits all of our customers who are currently using or would like to use Xtime.”
“Consumer expectations of what a dealership service experience should be have really grown in the past few years,” said Neal East, CEO of Xtime. “Our suite of products allows dealers to raise the bar, exceed customer expectations and most important, turn customers into repeat business.”
Auto/Mate’s Fixed Ops/Mate provides dealers with a comprehensive DMS solution for their service and parts departments. Fixed Ops/Mate offers advanced auto dispatch and electronic RO functions, as well as productivity boosting and reporting features that increase service department profitability.
Xtime provides dealers with a host of service marketing features and enables customers to set their own appointments online. ServiceCRM can also be accessed via a mobile device, so advisors can turn online appointments into RO’s, send reminders via e-mail, text and more. Behind the scenes, Xtime helps dealers increase revenue with factory- and dealer-recommended upsells, deferred service capture and advanced shop controls.
For more information, contact Auto/Mate at 877-340-2677.
About Auto/Mate
Auto/Mate Dealership Systems is a leading provider of dealership management system (DMS) software to retail automotive dealerships. Its Automotive Management Productivity Suite (AMPS) is a user-friendly, feature-rich DMS in use by more than 900 auto dealers nationwide. In 2013 Auto/Mate received the “Highest Rated” DMS award in the fourth annual Driving Sales Dealer Satisfaction Awards.
Auto/Mate’s employees have more than 650 years of combined experience working in auto dealerships – the foundation of its “designed by car people, for car people” slogan. For more information, visit www.automate.com, follow us on Twitter @AutoMateDMS and subscribe to our blog at http://blog.automate.com
About Xtime
Xtime is the leading cloud-based customer retention management platform for automotive manufacturers and dealer service departments. Xtime counts more than 5,000 dealerships as customers and has registered almost 2 million consumers. It processes more than 1.5 million service appointments each month and has scheduled almost 50 million in total. Xtime is the exclusive or preferred provider for leading global automotive manufacturers in North America, including Kia, Hyundai, VW, Nissan, Lexus, Infiniti, Toyota Canada, Toyota US, BMW, Mercedes-Benz, Audi, and Chrysler. Xtime is also the trusted choice for many of the industry’s leading dealership groups including AutoNation, Group 1 Automotive, Penske, Sonic Automotive, Asbury, Luther, Ferman and Checkered Flag. Xtime is based in Redwood Shores, California and can be reached at (650) 508-4300 or www.xtime.com.
Thinking About Buying a New CRM? Read This Reality Check First!
You may be wondering why the president of a dealership management system (DMS) company is talking about CRMs. It’s not because I want to sell you a CRM. It’s because one of the most frequently asked questions I get from customers is, “What do you think about such and such CRM?”
The first thing I always answer is, “Why do you want to switch?”
The reasons I get vary and often include: “Well, our new Internet Sales Director thinks that CRM is better,” or “Our guys just aren’t using the current CRM, they don’t really like it,” or “I hear this CRM is amazing and we could increase our revenue by 30%!” (Really?) Sometimes, dealers and managers can’t even give a good reason why they want to switch CRMs.
Besides your DMS, a CRM is potentially the largest technology expense your dealership has. So why switch if you don’t need to? And if you do switch, do you know which system you should switch to? The system that works for your fellow dealer in a 20 Group or the dealership down the street may not be best for you.
Here are the top three reasons NOT to buy a new CRM:
1) The newly hired Sales Director/ Internet Director prefers Vendor X’s CRM over your current CRM and insists on changing.
2) The GM/ Sales Manager is good buddies and plays golf with so-and-so over at Vendor X.
3) Just went to a trade show and saw a sales pitch for a really cool CRM.
If your current CRM has a low utilization rate, take some time to figure out why. Even the most basic CRMs have the ability to log ups, track performance from various ad sources, and send out letters and e-mails. If your employees aren’t using the CRM for these tasks, find out if the problem lies with the system or in the management of processes and employee accountability.
Because here’s the bottom line: if your salespeople aren’t using your current CRM the way they’re supposed to, they’re not going to use a brand new CRM the way they’re supposed to. So promises of increased revenue (based on features that won’t be used) will fall flatter than a tire with a leaky valve stem.
If you’re still thinking about switching CRMs, try a proven 10-step process that will help guide you to the right decision—without regrets and without wasting unnecessary money. Visit www.automate.com and download our FREE, unbiased ebook, “The Auto Dealer’s 10-Step Guide to Choosing the Right CRM for Your Dealership.”
Auto/Mate Recognized by the Albany Times-Union with a “Top Workplaces” Award Second Year in a Row
Albany, N.Y. – April 29th, 2013 – Auto/Mate Dealership Systems (http://www.automate.com) announcedtoday that the company has been recognized with a “Top Workplaces in the Capital Region” award by the Albany Times-Union newspaper for the second year in a row. Auto/Mate was featured in the “Small Workplaces” category for companies with 35-149 employees.
“One of the best ways to create a successful business is to ensure a positive work environment for its employees,” said Mike Esposito, President and CEO of Auto/Mate. “When a person enjoys coming to work every day and has passion for what they do, it makes it easier to produce a superior line of products and provide excellent customer service.”
This is the second year that the Times-Union has awarded companies in the New York Capital Region with a “Top Workplaces” distinction. Companies were selected based on criteria combining employee feedback, benefits packages and corporate culture.
Some of Auto/Mate’s notable benefits include:
- Fun company events and outings
- Involvement in and sponsorship of community events
- Company sponsored wellness program with hosted speakers
- Employee discounts
- Paid volunteer day
Auto/Mate has also been named a Best Places to Work in New York’s Capital Region by the Business Review journal for three years running. Earlier this year Auto/Mate was honored as the “Highest Rated” DMS vendor in the DrivingSales Dealer Satisfaction Awards.
Auto/Mate Dealership Systems is currently looking for experienced software developers and people with auto dealership experience to join their customer support and training teams. For more information on career opportunities with Auto/Mate, contact David Druzynski at (877) 340-2677 or visit www.automate.com/careers
About Auto/Mate
Auto/Mate Dealership Systems is a leading provider of dealership management system (DMS) software to retail automotive dealerships. Its Automotive Management Productivity Suite (AMPS) is a user-friendly, feature-rich dealership management software in use by more than 900 auto dealers nationwide. Auto/Mate offers the best customer service in the industry; the company received top satisfaction rankings in NADA’s most recent DMS provider survey.
Auto/Mate’s employees have more than 650 years of combined experience working in auto dealerships – the foundation of its “designed by car people, for car people” slogan. For more information, visit www.automate.com, follow us on Twitter @AutoMateDMS and subscribe to our blog at http://blog.automate.com
How to Choose the Right CRM for Your Dealership
Mike Esposito, President and CEO of Auto/Mate, introduces "The Auto Dealer's 10-Step Guide to Choosing the Right CRM for Your Dealership." To download your FREE eBook, visit. www.automate.com
Auto/Mate Releases “The Auto Dealer’s 10-Step Guide to Selecting the Right CRM for Your Dealership”
ALBANY, N.Y. – April 22nd, 2013 – In a recent survey conducted by Auto/Mate, more than 100 dealers were asked what the most important consideration was when choosing a new Contact Relationship Management (CRM) system. Whether the system integrates with their dealership management system (DMS) was ranked as the most important, with cost being the second most important consideration. To guide dealers through the selection process, Auto/Mate Dealership Systems today released a free eBook, “The Auto Dealer’s 10-Step Guide to Selecting the Right CRM for Your Dealership.”
“I am surprised how often we get asked about CRMs since we are a DMS vendor,” said Mike Esposito, President and CEO of Auto/Mate. “This eBook does not recommend any particular features or cover what the latest CRM trends are, but instead gives dealers the tools they need to select the right CRM for them.”
Several industry consultants were interviewed and contributed their expertise and experiences towards the eBook; including Paul MacDonald of TriMac Automotive Advisory Group, Joe Webb of DealerKnows, Jim Skeans of Jim Skeans Consulting Group and Ray Fenster of RayFenster.com.
All of the consultants agree that many dealers are spending unnecessary money on CRM features they don’t need or use—not because advanced CRM features aren’t useful but because the dealership has not attained the level of usage or buy-in required by users. The eBook provides dealers with concrete steps on how to assess their current usage, set measurable objectives for both ROI and employee participation, form a selection team and so on, until they reach the final step of choosing a CRM appropriate for the dealership’s needs.
To download the free eBook, visit http://www.automate.com/publications/crm-ebook.html
About Auto/Mate
Auto/Mate Dealership Systems is a leading provider of dealership management system (DMS) software to retail automotive dealerships. Its Automotive Management Productivity Suite (AMPS) is a user-friendly, feature-rich DMS in use by more than 900 auto dealers nationwide. Auto/Mate received a “highest rated” dealer satisfaction award by Driving Sales.com and the company received top satisfaction rankings in NADA’s most recent DMS provider survey.
Auto/Mate’s employees have more than 300 years of combined experience working in auto dealerships – the foundation of its “designed by car people, for car people” slogan. For more information, visit www.automate.com and follow us on Twitter @AutoMateDMS
How to Increase Service Growth Through Auto Dispatching
Mike Esposito, President and CEO of Auto/Mate Dealership Systems, presents "How to Increase Service Growth Through Auto Dispatching." Don't miss this session at the upcoming Digital Dealer Conference on Thursday, May 9th at 11 a.m.!
www.automate.com
Changing Your DMS: Step 10
After your new dealership management system is installed, you'll want to spend some time tweaking the system. Mike Esposito, President and CEO of Auto/Mate dealership systems, shares a few tips. To download the FREE ebook, visit www.automate.com
Mike Esposito Presents “How to Increase Service Growth Through Auto Dispatching” at Digital Dealer 14
ALBANY, N.Y. – March 25th, 2013 – Auto/Mate Dealership Systems (http://www.automate.com) announced today that Mike Esposito will be presenting a workshop at the 14th Digital Dealer Conference & Exposition in Orlando, on May 9th at 11:00 a.m. How to Increase Service Growth Through Auto Dispatching is aimed at dealers, general managers, fixed ops and service managers who want to increase efficiencies and gross profits in the service department.
“Making the transition from outdated, manual dispatching methods to automated systems can be very challenging,” said Mike Esposito, President and CEO of Auto/Mate. “Workshop attendees will learn the common pitfalls associated with this type of transition and how to avoid them.”
Additionally, Esposito will cover the three levels of service dispatching (manual, semi-automated and automated) and discuss the benefits achieved with each new level, such as increased service tech efficiencies, shop efficiencies and shop loading. Attendees will take away:
1. The thought process and technical process that dealers and managers need to go through to set up an auto dispatching system; i.e., how to define service tech skill levels, how to set up op codes, and most important, how to retrieve all this information from your existing system.
2. How to track and measure the improved efficiencies in the service department.
3. What doesn’t work, why it doesn’t work and how to avoid problems during the transition process.
For more information, visit: http://bit.ly/11twN3B
Auto/Mate Dealership Systems is a leading provider of dealership management system (DMS) software to retail automotive dealerships. Its Automotive Management Productivity Suite (AMPS) is a user-friendly, feature-rich DMS in use by more than 900 auto dealers nationwide. Auto/Mate received a “highest rated” dealer satisfaction award by Driving Sales.com and the company received top satisfaction rankings in NADA’s most recent DMS provider survey.
Auto/Mate’s employees have more than 300 years of combined experience working in auto dealerships – the foundation of its “designed by car people, for car people” slogan. For more information, visit www.automate.com and follow us on Twitter @AutoMateDMS
Follow Auto/Mate
Subscribe to DMS Central
Auto/Mate on Twitter
- Nothing like a good round of golf! Thanks #ENYCAR for hosting today’s tournament @AlbanyAutoShows
Recent Posts
- Auto/Mate at Georgia Auto Dealers Association
- Renaissance Man
- Need a Strategy for Success? First, Hire the Right People (+ Tips on How to Hire Them)