Issue link: https://read.dmtmag.com/i/274927
FOCUS PSB FOCUS PSB Power 50 www.PowersportsBusiness.com Powersports Business • March 17, 2014 • 19 18 • March 17, 2014 • Powersports Business www.PowersportsBusiness.com are added in between. Some of the more recent large events include a Crawfish Boil In-House Fun Run, a Valentine's Shopping Event, a Cow- boy Up event and a Showdown Car Show, while smaller activities include free Mexican food every Tuesday, lunch rides and dinner rides. "Events are huge," Noble said. "We want to make it where our calendar is very full. At either store there should always be something going on that gives you a chance to engage with the store and for us to engage with the customers." Events are two-fold. For one, the salespeo- ple have a chance to meet customers and create relationships with them. But also, it keeps rid- ers on their bikes, racking up the miles, need- ing more PG&A and meeting fellow riders. Noble's goal has been to create riding com- munities ever since he attended a 20 Group at which one dealer told of a customer who bought a bike and fell in love with it but sold it after six months because she had no one to ride with. "We just don't want to have it happen where someone rides their bike… and then stops," he said. Events are designed to appeal to riders and non-riders alike, in an effort to not only serve Adam Smith's current customers but also increase the reach to potential new riders. Reg- ular new rider events at the dealership include a Boot Camp, Ready to Ride Clinic, a Riding Gear Clinic and a Rental Clinic. The dealer- ships also host off-site Rider's Edge courses, which Noble hopes to bring on-site with a new facility in the future. Though many activities are planned for new riders, the dealerships most frequently see their customers bringing in friends and family to get them to start riding, rather than brand- new recruits. "Getting new riders in, a lot of it starts with treating our current customers really well and getting them to refer their friends in," Noble said. The variety and frequency of events high- light the key factor that makes Adam Smith's dealerships stand out from its competitors — that the dealerships' management and staff know how to have fun in an exciting business while still running profitable stores. "The thing that I think really sets us apart is we really do have fun. We take the busi- ness very seriously, but we take a lighthearted approach to it," Noble said. He added, "Adam and I plan on being in this business for a long time, so we want to have lifelong customers, and we want them to be happy." PSB developed the program, and we still do today, that that is the key to it — if we don't keep them riding, none of this is needed. They won't need new clothing, a paint job, wheels, service or most certainly a new bike." Unlike buying an automobile, Harder knows that the motorcycle buying experience has to separate itself. "An automobile is a necessary evil. I like to think a Harley is, too, but a lot of people will debate that with me! A Harley is not only a motor vehicle, it's a route to new friends," he said. "We decided that experience was so important that we wanted to make MVP a cor- nerstone in the fundamentals of the way that we conduct business every day. The concept of loyalty isn't new, but our program was the first and continues to be the best way to find, cultivate and retain customers loyal to our dealership brand, and not simply the Harley- Davidson brand." SIGNING UP Customers can sign up for MVP with a one-time payment of $89.95. The enrollments are sold in every department, with Motor Clothes and Parts typically leading the pack. The benefits recipro- cate at the 20 other MVP dealerships throughout the country. Dealerships pay a monthly franchise fee to operate as an MVP store. "When we decided to create the franchise, we went into a specific market and found the one dealer, the very best dealer that operates as close to a mirror image as we do, and we selected that dealer," Harder said. "We only allow one dealership per market. If multiple dealerships have it, it loses its panache." Still today, Harder describes the franchisee process as "highly selective. If ABC dealer calls and says 'We're interested in this,' we'll go into their market and do a retail evaluation of all the stores in that market. Then we go in and rate the cleanliness of the store and attentiveness of the staff. We'll even go so far as to evaluate the bath- rooms, because females generally speaking are the ones that give the nod to males to buy these bike, and if you have a lousy, dirty women's bathroom, that's enough to send them packing to another store. And I totally understand." Harder and his MVP staff train MVP fran- chisees, and those dealerships are visited by an MVP staff member twice a year. It's the hands- on approach that makes the program equally effective at the MVP franchisee dealerships. "We work with them very closely to help them change the face of their business by leverag- ing the Motorcycle Value Program," Harder said. There are 18,000 local members between the two stores in the Twin Cities market, and an additional 115,000 members with the 20 franchisees nationally. Associates who sell the most enrollments are recognized appropriately. "We have goals for each department," Harder said. "We recognize those that are excel- ling in enrollment of customers into MVP because through that enrollment, we get the opportunity to direct market to individuals with specific product offerings. The informa- tion we get from a customer from MVP is not the information we get at the point of sale." MVP allows the dealership to quickly separate the casual customer from the loyal customer, monitor their buying habits and build program benefits that are tailored specifically for them. With MVP customers, the dealership knows: what they buy when they buy how much they spend their visit frequency their spend per visit their residual and add-on purchases The MVP provides structure to allow the dealership to offer a savings off retail pricing to MVP members based on their relative loyalty, which is measured with MVP points. "MVP members are far more active in the dealership, spending thousands of dollars more each year than non-MVP members. By zeroing in on our best customers, MVP has provided our dealerships with a focused approach to customer acquisition, retention and revenue growth, helping us preserve mar- gins through the creation of targeted cam- paigns that provide value to both the dealer and the member, a true 'win-win' for both parties," Harder said. "We know who our best customers are and use the information housed within MVP to keep them coming back year after year." PSB CAN-AM CAN-AM MAVERICK ACCELERATE TO HiBoy Doors & Graphics LockDown Harness Bar Kits SS Mirrors H.D. Tie Rods Exhaust By Vance & Hines Now available for both the Can-Am Maverick and Max models, RacePace is your easy bolt-on solution to stylize and strengthen your ride. The fi t, fi nish and details incorporated into these products are unlike anything else on the market for the Can-Am. From front to rear, this line up of products will accelerate your Maverick to a whole new level! *RacePace Products Shown In Red DragonFireRacing.com Strong Dealer Margins & Customer Service New Dealers Wanted Call For Info Phone: (800) 708-9803 Fax: (480) 834-4597 Products Distributed By MVP CONTINUED FROM PAGE 17 Changing culture leads to growth at Adam Smith's dealerships Employees of Adam Smith's Texas Harley-Davidson celebrate the dealership's 2013 Power 50 award, presented by Powersports Business. After strong sales of new and used bikes, St. Paul Harley-Davidson was named a Power 50 dealer in 2013 by Powersports Business. P16x25-PSB4-Focus.indd 19 3/5/14 1:07 PM