Modern Dealership - April 2017

VOLUME 1 • ISSUE 2 APRIL 2017

MORE TECH MORE TIME FOR HUMAN INTERACTION

Technology Is Key TO FIND OPPORTUNITIES WHAT CUSTOMERS

REALLY WANT THE CPO

THEN&

W NO KEEPING UP WITH

DEBUT

THE MILLERS

How are you connecting with your customers?

Timing is everything. We can provide your dealership with hundreds of precise data points, handing you targeted opportunities, and giving you the right conversation, at the right

GET STARTED TODAY! AUTOALERT.COM/INTELLIGENTMARKETING 2

MODERNDEALERSHIP

“With AutoAlert, Paul Miller Ford has had an incredible increase in our loyalty, but most importantly, customer and that’s the unique part about it.”

JP MILLER,

CEO/Dealer Principal, Paul Miller Ford

Many dealerships don’t realize that their customer database is often their number one asset. Look at your customer database as a portfolio of investments, and consider us your dealership’s portfolio manager.

What we do: Pinpoint the best opportunities in your database in real time We handle the marketing on your behalf Allow you to focus on what you do best:

CLOSE DEALS!

WHAT YOUR TARGETED CUSTOMERS RECEIVE

PERSONALIZED OFFER LETTER PERSONALIZED LANDING PAGES

RESPONSIVE BROWSER VIEWS

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TWO PERSONALIZED EMAILS

Modern Dealership – Letter from the Editor Welcome back to Modern Dealership’s second issue!

We are very pleased to see you have returned for more great insights from top industry professionals. When our team saw how well our first issue was received, we knew we were onto something great.

If you are looking for information that is helpful and relevant to your business in these modern times, then you have come to the right place. This publication was created just for the purpose of providing businesses with information that can help propel your dealership into the next decade, aimed and armed for success.

In our feature article highlighting JP Miller, we get a glimpse into the threegenerational dealership he, his father and grandfather built…and kept prosperous. He describes how, even though “Kentucky’s Big One” has experienced many innovations over the years, it has been the original aspects they retained that has made Paul Miller Motor Company the empire that has sustained the test of time.

As an added bonus, we invited industry leaders to contribute articles on topics that are relevant to our readers. You will be privy to descriptions of their personal journeys, including lessons they learned along the way. Don’t miss this opportunity to gain ideas and a refreshed outlook, or just relate to fellow automotive professionals.

This issue is focused on Then and Now– how the car business has transformed throughout the years and how you can continue to thrive in today’s market. You will find valuable insights about ways to stay ahead of your competition while retaining your signature traits. Discover how to uncover your keys to success; what customers really want; how to find your niche within the ever-changing trends of social media; why you don’t want to repeat history; and a host of other tips of the trade.

If you feel so inclined to share your personal piece of automotive history, please find our contributors page at: http://www.moderndealership.com/ -scroll down and click Apply Nowand while you’re there, feel free to explore previous issues.

This is Modern Dealership, a magazine written by dealers for dealers. This is YOUR magazine.

The MD Team

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FEATURES

14

Out With the Old Experience, In With What People Really Want

18

Learn From History; Don’t Repeat It

31

Advertising to Customers Then & Now

40

CPO; Yesterday to Today, an Overnight Success

MAIN FEATURE

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Keeping Up With the Millers: 3 Generations of Service at Paul Miller Motor Company

MODERN SALES

06

The Door to Success Is Waiting: You Just Need to Find the Key

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5 Things You Can Do Right Now to Retain Your Customers

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MODERN FIXED OPS

10

Innovation in the Service Drive: The Key to Happy Customers

MODERN OPERATIONS

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The User-Defined Service Experience

53

Build a Brand That Stands the Test of Time

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MODERN COMMUNICATION

22

Social @ Its Finest

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Crush Your Goals; A Connected Team Will Thrive

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THE DOOR TO SUCCESS IS WAITING: You Just Need to Find the Key

by Arnold Tijerina President, Storytailer LLC & Corporate Storyteller

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I never planned to get in the car industry; it just kind of happened.

Like many people who share this sentiment, I needed a job and saw an ad offering a monthly guarantee to sell cars. I had always been a good salesperson, so I figured I’d give it a shot.

After I was hired, I was promptly given a crash course in how to work a foursquare and … to stand. Once I got the hang of standing outside with five other guys, I had to master the art of calling “ups” (referring to the prospective buyer) and learning other automobile sales terminology and slang. The next challenge was taking the other salespeople off the market.

Finding crafty ways to give myself an advantage in calling “ups” was a must. After many frustrations in having deals desked and one too many staplers thrown at me (true story),

I made the decision to apply at a brand-new Infiniti store. This Infiniti store was so new, it was literally nothing more than a building and an empty lot. For the first week, I was bombarded with every sort of training you could think of – product training, walkarounds, CRM, etc. Once the cars arrived after opening, walk-in traffic was light for a while. We worked on an “up” system – essentially a piece of paper – which made it important to get there early so you would get the first customer. In the beginning, that could mean the difference between getting a customer that day or not at all. And because the store was new, there was no database from which you could call. It was being built as people walked in.

Be Your Own Best Advocate I realized quickly that I needed a way to create business for myself, so I jumped online, found Infiniti-enthusiast message boards and started joining conversations. The board’s rules included no selling, so I simply tried to be a resource by answering questions that people had posted. Slowly, other participants on the message boards started sending me messages or referring people to me, some of which turned into leads and sales!

Then the dealership’s Internet Manager quit, and I took over that position. Back then, we used an ILM system that was separate from the CRM system. As I dove in, I was confronted

with over 300 leads that had never received a response, and none was older than 90 days. I hit the jackpot. I stopped taking “ups” altogether and was laser-focused on working those leads. It paid off immensely. It wasn’t long before I was selling upwards of 40 cars per month, by myself, while continuing to work the message boards. I eventually approached the GM and asked if the dealership would sponsor the message board, and in turn, he could deduct the cost from my paycheck. He agreed. That was the beginning of me selling and shipping cars all over the country.

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The Tools Are Out There – Use Them Fifteen years ago, before current technology was commonly available, I understood that the key to being successful in the automotive industry didn’t lie in standing outside waiting for a customer, but rather in taking advantage of the tools available to create my own opportunities. None of the customeroutreach activities I used back then have become irrelevant or unsuccessful today. But when we look at what’s going on today, there are even more avenues with which to interact with customers and sell cars.

Social media platforms, personal branding, video marketing and more sophisticated CRMs provide today’s salespeople with more options to engage customers than ever before.

Your Automotive Video Company

The opportunities available to today’s salespeople via technology are unfathomable. Short of a few outliers, many salespeople still don’t use these technologies to their full extent. They don’t make investments in their own successes through training or personal branding.

They don’t think of alternative ways to reach, engage and differentiate themselves to customers.

When I started out, I didn’t have all the technology that’s available today. The salespeople of tomorrow will have even more. But the fate of salespeople in finding success in the automotive industry will always depend on the following fact: Salespeople fail not because the opportunities to be successful are lacking, but because they don’t find and act upon those opportunities. What opportunities are you missing out on, and what are you waiting for?

What opportunities are you missing out on, and what are you waiting for?

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whatsnext.pro 206) 478-8721 Banner Images • Instream Ads Custom Videos • Service Videos Model Review Videos • Testimonials Value Proposition Videos • and More!

M O D E R N D E A L E R S H I P. C O M

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INNOV IN THE SERVICE DRIVE: The Key to Happy Customers

It’s time to take a good, long look at your service department. These team members are much more than parts specialists and certified technicians.

They’re also customer liaisons, relationship experts, communications professionals, and product consultants. They’re a vital part of the customer experience at your dealership. They’re the ones who are on the front lines when it comes to ensuring customers leave feeling satisfied—and that makes them a key part of your business.

by Alex Jaksetic Content Writer, MD

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VATION Every Employee Makes an Impact

It’s a competitive marketplace, and customers pay attention to every detail. While waiting for their vehicles, they’re actively making decisions about whether they will return for additional service and maintenance, recommending your dealership to friends, or even purchasing from you in the future. Everyone in your dealership contributes to the customer experience and plays an integral role in building customer relationships.

From Tire Changes to Top Notch Consulting To stand apart from the crowd, it’s important to continuously innovate. This goes for the Service Drive, as well as every other department. Innovation means being in tune with customer needs and implementing forward-thinking concepts to improve your business. You can implement really, really big changes or ones that are subtle. But wherever you choose to invest your time and budget, it’s important to focus on the things modern shoppers are looking for and provide the best solutions for them.

Efficiency, accuracy, and superior product knowledge are priorities for today’s busy consumers. To ensure your dealership delivers, focus on energizing your team and offering the best training and handson learning opportunities, effectively preparing everyone to offer professional input and reliable insights.

Turn your Service Drive Into a Hub of Excellence— One That’s Sought After by Consumers.

Let your customers know you’re not just a place for oil changes and tire rotations, but rather a place where your entire staff works to build relationships, offer reliable advice, and present the best individualized solutions.

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There are a few things you can do right now to let customers know you mean business when it comes to offering the best Service Drive experience around:

1

Alert customers when they can upgrade.

Be the first to let customers know when they’re in positions to upgrade, point out the benefits, and be available every step of the way. Leverage the information that’s in your database to present individualized offers right in the service drive!

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Service to Sales. Sell from the Service Drive.

You’ve got inside information on customers with upcoming service appointments, so put it to good use! Dig into your database and prepare ahead of time. Know what vehicles customers are driving, along with what incentives that may be available, and be prepared to present appealing upgrade opportunities. When you know your customers before they arrive, you’ll provide better service and end up making sales in the process.

Better payment options? Tell your customers.

Customers in your service drive often don’t know when they can trade and lower their payments. Once again, use your data and let them know you’re looking out for them.

You’ll make more sales when you’re ready with real-time offers.

Offer deals on services and products.

Let your loyal customers know there are perks that continue after their initial purchases.

Offer free car washes, maintenance packages, and more to ensure they keep coming back. By staying in the picture for maintenance needs, you’re more likely to be their choice when it’s time to buy again.

Send appointment reminders.

Today’s customers are busy, and a simple way to modernize your service is by sending reminders via email, text, or social media message. By reminding customers you’re looking forward to seeing them, you’ll cut down on forgotten appointments—and you’ll be letting them know their business is important to you.

Let your customers know that every professional in your dealership is looking out for them. By turning your service team into customer-relationship professionals, you’ll ensure they’re building relationships that will bring shoppers back for continued maintenance, service, and future vehicle purchases. Everyone on your team can help build shopper trust, so look to your knowledgeable Service Drive pros to help you lead with innovation and grow your dealership.

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M O D E R N D E A L E R S H I P. C O M

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WITH THE

OLD EXPERIENCE

WITH WHAT

PEOPLE REALLY WANT

by Katie Wagner 14

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Business Development Manager, Johnson Motor Sales

Over the past several years, there have been several changes in the automotive industry. These changes include establishing a sales and service business development center (BDC), defining a customer experience, identifying the need for a transparent sales process, allocating funds to advertising, and putting a new focus on consumer loyalty. Not that long ago, salespeople and service advisors would personally assist the customer, from the initial phone-up, walk-in, Internet inquiry, service maintenance reminder call, etc., to the time of the transaction at hand. Now, dealerships have a much more methodical way of capitalizing on each of these unique opportunities to take advantage of their full potential.

By establishing a centralized sales and service BDC, dealers are experiencing fewer missed opportunities and an elevated customer experience. Using an in-house BDC, industry professionals can work with customers to schedule sales and service appointments to replenish waning organic traffic with solidified opportunities. Representatives also make followup calls after the transaction or general visit. They provide vital feedback to management about where process and communication enhancements need to be made. The goals of these calls are to grant previously declined service work or to schedule a “be-back” appointment for the showroom floor.

Make It Quick and Painless Today, average online shoppers will travel about five to six hours round-trip to purchase a vehicle or to experience what they perceive as a VIP informational visit. Prior to their visit, dealerships must set an expectation of the experience. Let shoppers know exactly what you have planned for them; reserve the vehicle they want to see and have it ready for them when they arrive; and assure them that they will be in contact with the sales manager as soon as they walk in the door.

Offering a genuine, pressure-free sales and service experience is key in providing shoppers with a quicker and less stressful overall experience. Dealerships must understand that the shoppers of today are busy and don’t have time to have their needs and desires pushed to the side. They either want to make a quick purchase decision, or set up an entire day with your sales staff to test drive multiple models. Be sure to work at the pace of the customer and let them take the experience into their own hands.

Give Them What They Want, the Way They Want It A huge part of letting the customer create their own experience is to follow their preferred way of communicating.

Whether it’s through email, text, chat, or even FaceTime, allowing them the freedom to choose whichever platform they’re most comfortable with makes them feel more at ease throughout the process. The days of pushing the customer to call back when they’re ready for a visit have come and gone. Representatives are also now encouraging customers to bring their research materials with them when visiting the dealership. This makes the communication process more efficient by allowing the customer to have all the questions about a certain vehicle right in front of them the first time they interact with a sales professional.

Dealerships used to advertise MSRP or “Call for Price” without including photographs of new vehicles or vehicle descriptions. Today’s consumers want to be able to collect as much information on their own as they possibly can so they can be fully prepared once it comes time to step into the showroom. Due to these changing trends in customer preferences, dealerships are providing extensive information on all vehicles, including vehicle history reports and overall inspection and maintenance recaps to build customer trust and confidence.

Use Data-Mining Tools to Increase Sales, Improve the Customer Experience The latest technology, like data-mining products such as AutoAlert, assist in managing a customer’s trade cycle and converting service-only customers into sales opportunities.

Previously, these consumers would be overlooked by dealerships focusing solely on following up on the latest phone or Internet inquiry, which creates disengaged customers and loss of interest. This neglect damages the dealership’s reputation by implying that a quality customer service experience can’t be provided. But with data-mining tools like AutoAlert, every opportunity can be exploited to its fullest potential. With updated processes, more transparency, and an adjusted marketing approach, the industry is changing rapidly over time. However, selling a high-quality product and providing a top-notch customer experience will always remain the consistent objective.

Understanding our customers by using the right tools to shed light on what they want and when they want it makes this objective much easier to achieve.

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5

THINGS YOU CAN DO

RIGHT NOW TO RETAIN

YOUR CUSTOMERS

CUSTOMER RETENTION IS A BIG DEAL

Customer retention is a big deal; in fact, it’s huge.

It costs exponentially more to find and win over new customers than it does to keep your existing customers, so it’s worth the time and effort to ensure you have a solid plan to hang on to them. Luckily, today’s customers are pretty straight-forward.

They’re discerning, but they’re also pretty specific about what they’re looking for.

There are a few things your service department can do immediately to ensure you keep your existing customers—and the good news is they’re all fairly easy to accomplish.

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1

KEEP YOUR PROMISES. Follow-through will always be important! Keep track of your conversations and remember what you’ve told individual customers. When you keep your word, your customers will remember! You’ll build trust every time you make good on the things you say.

Then vs. Now: Salespeople of the past were largely focused on the upfront sale, but follow-up left much to be desired.

Focus on the big picture, provide a great sales experience, and ensure excellent follow-up.

BUILD GREAT RELATIONSHIPS.

Great relationships add value and remind customers your dealership is focused on more than making the initial sale. Get to know your customers and let them know you’re invested in finding the right solutions for them. Great relationships lead to more business for your dealership.

Then vs. Now: In the past, relationships often didn’t begin until customers set foot on dealer lots. With modern technology, online feedback forums, and social platforms, businesses have more ways to build and maintain customer relationships, resulting in increased sales opportunities.

3

KNOW WHAT YOU OFFER.

Turn your team into experts—vehicle experts, service experts, customer experts, everything experts! It may sound daunting, but this is the part where you do the research, make the investment, and put in the time. It’s worth investing in comprehensive platforms and tools that will streamline information and turn your entire team into experts. Today’s customers are full of knowledge when they arrive at your dealership, and they expect the same from your team.

Then vs. Now: Not too long ago, shoppers looked almost solely to dealers for vehicle information, add-on and feature options, comparisons, and just about everything else. Today’s tech, however, keeps your customers constantly connected, and with a click or a swipe, they can get just about any information they’re looking for. To earn their business, and their trust, you need to keep up by accessing your own technology, platforms, and databases.

BE A MASTER COMMUNICATOR.

Shoppers are in a hurry, and they don’t want to waste any time. You can show your professionalism and efficiency by upgrading to a modern communication platform that gets every single person in your dealership on the same page. Make sure every job gets done seamlessly and as quickly as possible by modernizing your in-house communication!

Then vs. Now: Intercom systems, note pads, and answering machines were the tools of the trade, but we’ve moved past all that. And your customers expect you to be past those things as well. Modern communication uses technology efficiently to get everyone on the same platform, interacting in real time to ensure every transaction is handled as quickly as possible. Your customers will love you when you can get them in and out of your dealership in record time!

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BE AN ACTIVE LISTENER.

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Sometimes, it’s about sharing great information with your audience; but sometimes, it’s just as important—and even more important—to listen. Pay attention to the things your customers are saying about your dealership online, on social platforms, and on feedback forums. Not only can you respond quickly to concerns, but you can also learn what shoppers are looking for and get ahead of upcoming trends.

Then vs. Now: Back in the day, social listening happened at the local coffee spot or whenever a couple of friends got together to talk about their good or bad dealership experiences. Now, you have the luxury of joining in conversations much sooner. Your customers are chatting on Facebook, Twitter, and other social sites, as well as online feedback forums—so jump in and interact.

by Mat Koenig CEO of BDA Spanish

LEARN FROM HISTORY;

DON’T REPEAT IT

In 1994, I was excited to begin my new career as a car salesman. When the other four guys showed up for their first day, too, I realized the dealership was using the spaghetti hiring method: throw a handful at the wall and see what sticks.

BE HONEST WITH THE CUSTOMER We were all given a quick speech, a tour of the lot, shown where the keys were, and told to turn everyone over to a manager before they leave. Then they equipped us with three tools: a desk, a phone, and a phone book. We were told to call starting from the letter A and ask for Mr. Jones. When told it was the wrong number, we were supposed to apologize and explain that we had a special offer for Mr. Jones that was only good for that day, but since we didn’t seem to have Mr. Jones’ correct phone number, we’d like to offer them the special offer on a new vehicle instead. Transparency was very lacking back then.

SET REALISTIC EXPECTATIONS I was hired on a Friday and promised on-the-job training. Monday, I was thrown to the wolves. Two months later, I got fired for lack of performance because of the lack in training. Three months after that, dealer number two had a GSM that liked my personality and desire to be successful, so he hired me. He promised that I’d get “real” training. Training in their mind was a stack of brochures and American Sales Television Network every morning for 14 days. Two months later, I got fired again and felt like maybe this business wasn’t for me. The lack of training, even though it was promised, was astonishing.

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EQUIP YOUR TEAM WITH ALL THE RIGHT TOOLS Dealer number three didn’t hire me on the first visit. They spent four hours interviewing me with three managers, and another four with the remaining managers the following day. They promised training but that’s nothing new, so I asked to get a clear understanding of what to expect on Day One. Monday morning, I showed up 15 minutes early and ready to learn. To my surprise, they were ready to teach me the ropes of being a car salesman. I was going to have 14 days of on-the-job training that involved leadership staff every day and senior sales people.

Each morning began with training videos while one of the managers broke it down step-by-step, explaining why we were serving people this way and how to do it right so the buyer could leave with what they wanted–a new vehicle. Afternoons were spent shadowing a senior sales professional. I got to work with the top guy at the dealership. It was up to him to determine if we were ready to go on the floor and work with customers, so he made sure I was ready to rock. In 1995, I was awarded Salesperson of the Year, a trip to Vegas I was too young for, and the confidence to be a pro.

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LEAD THROUGH SERVICE Twenty-two years later, I still see way too many salespeople and managers in the dealership who don’t care at all. Salespeople are saying that their managers don’t trust them, treat them like children, verbally abuse them in meetings and more. These types of managers clearly don’t recognize that they’re abusing themselves and their own income by demeaning their employees. They don’t realize that leaders exist to serve the ones that they are supposed to be leading–not to be served. These managers are not true leaders, and they’re causing this industry a lot of grief.

MORE TECH MEANS MORE TIME FOR HUMAN CONNECTION Sure, technology has changed and we’ve gone digital with mobile phones, email, and texting– making follow-up easier than ever. Now that the CRM’s follow-up process can be automated for the stuff considered menial, the challenge is that salespeople and leadership staff have become completely detached from human interaction. This detachment causes somewhat of an autopilot effect that must be changed, and changed quickly.

WHEN EVERYONE CARES, EVERYONE WINS Our leaders have gone from being active participants in salesperson success to hang-arounds waiting to work a deal and for a turnover. In the past, you had to actually care about your salespeople and customers in order to be successful. You still do need to care to be successful. Unfortunately, I see people showing up and expecting tools to do the job for them.

What hasn’t changed in my 22 years in this industry is this: buyers dictate the future. A lot of people are afraid of this fact, but the best part about buyers dictating the future is that they’re telling us what they want. All we have to do is care enough to listen so we can continue to move the car buying and selling experience even further.

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SOCIAL @ITS FINEST

by Cathy Nesbit Social Media Director, Harry Robinson Buick GMC

M O D E R N D E A L E R S H I P. C O M

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Getting Social About 10 years ago, social media was becoming very popular and businesses started using it as a new marketing tool. In 2009, the owner of the recording studio where I was employed at the time attended a seminar about how social media could forever change the way business is done. We were sold.

We immediately started brainstorming, creating, and integrating social media into our business culture.

Thinking Ahead I loved showcasing the unique personalities in the music world through social media. When the economy took down the studio, I landed in the car business, working for another forwardthinking woman who had decided she wanted to be ahead of the game when it came to social media.

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The Trends and Their Times Looking back after being in the industry for so many years, I’ve seen many trends come and go. Back in the day, posting your YouTube link to Facebook was an excellent way to get people engaged and gain more exposure over multiple platforms. Then there was the “100,000-Likes” trend. People were pushing this everywhere. The only issue with this approach is quantity over quality: It really isn’t the number of Likes that a page or a post receives, but rather the quality of the people that are clicking the “Like” button. When we were pushed to follow the “get 100,000 Likes” trend at my small, local dealership in a town of only 70,000 people or so, I suggested that it wasn’t useful to our business. It’s useless to market and try to reach outside our target geographic area because people won’t travel that far to buy a car when there are a dozen other places that are closer. That’s wasting both time and money, neither of which is good for business. I’m thankful the owner of the dealership believed in me, because it definitely wasn’t the popular belief at the time.

After the “100,000-Like” trend, the “you must advertise on Yelp” trend was up next. Remember Yelp? I’m not opposed to Yelp like I was to the lots-of-Likes thing. I’m a fan of taking advantage of the marketing and advertising opportunities that best position you for success; Yelp just wasn’t one of those for us.

The next big trend that we saw, and it’s still pretty prevalent today, was the “Facebook giveaway.” It’s a great way to promote local business by giving away free samples and having free giveaway contests.

This is one of those marketing strategies that some people don’t like, which is understandable because it can be seen as junk clogging up their timelines. The negative result of this type of marketing is that it attracts people who only want the free stuff. They don’t care about the actual brand. The good thing is that those people don’t generally stick around. They go away, for the most part, after the opportunity to win something for free is gone. It’s still a very good way to promote businesss, get attention, engage consumers, get people to share your content and brand, and gain followers. For one promotion we did using the “Facebook giveaway,” 17,406 people were reached and 132 local people ended up engaging with our dealership. Even though a considerable number didn’t engage or dropped away during the campaign, there were still 132 people that we connected with that we wouldn’t have otherwise, so I considered that a win.

Facebook

GIVEAWAYS M O D E R N D E A L E R S H I P. C O M

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Trends Change; Personal Connections Are Timeless There have been a million social media platforms, gaming trends, and rules for how you “must” do social. They’re always changing. The important thing is to know your brand, know your dealership, and highlight the heart of what you do.

No matter how many trends come and go, these factors will stay true to what they are. You can’t make everyone happy; you can’t make everyone LIKE you, and you definitely can’t make everyone buy from you. But what you can do, and what you should always strive to do, is be valuable to your community. There’s no gimmick, no magic formula, and no outside force that can embody what your business stands or falls for. The core of who you are and what your business is about will always show through in the end. No matter how many trends or changes come and go– Yelp, Youtube, Facebook, Snapchat, 100,000 Likes– they all mean nothing if you can’t connect with your customers.

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MODERNDEALERSHIP

BE VALUABLE TO YOUR COMMUNITY

Build relevant ads easier and faster than ever!

#MPOP

855-787-9770

THE USER-DEFINED

SERVICE

EXPERIENCE n past years, the creation of value and the roles

customers and dealership employees played in a typical service experience were very distinct and separated. The cost of products and services was determined by the market. The price of an oil change was based on market pricing, and the value of the service was determined by competition. If your price was higher than the next guy, then your business suffered.

Now, access to information has become so ubiquitous that everyone can shop a price from their smartphone in a matter of moments. These days, the determination of value has essentially become created by our peers.

by Rex Weaver Director of Service Innovation at Lehigh Valley Acura

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MODERNDEALERSHIP

The Development of Marketing

Marketing and sales began hundreds of years ago in the market-transaction process. If you were shopping at the local bazaar, for example, you knew who had the best products because communication was very local and linear. Your neighbors or family members told you the best places to shop. This system of “word of mouth” business has existed since the beginning of time.

The development of modern marketing created a whole new system for how people found the best places to shop. Businesses began paying specialized companies to convince buyers to shop with them. Customers soon began buying products and services that weren’t necessarily the best or the cheapest. They were the ones that companies spent the most to market and promote to. But customers soon became disenfranchised, feeling that they were being taken advantage of and preyed upon. Corporations no longer appeared to have the customers’ best interests in mind.

Next came social media and the development of peerpromoted marketing. “Friends” on social media would rate or promote products and services, helping us better determine where to shop. If a friend, or even an online stranger, gave a review of a product or service it would probably be taken into account before making a decision.

Social media became such a juggernaut of marketing that a poor online reputation could destroy a business’s entire reputation. Businesses became so concerned about their online reputations that companies formed solely to assist those businesses in improving online reputations.

Because it is difficult to identify real online reviews from fake ones, the integrity of online reviews has been compromised. Because of this, Amazon now mandates that the reviewer indicates if they received a product for free in exchange for a positive review.

Yelp also had its fair share of issues with the truthfulness of its reviews. There have even been occasions where online battles of “fake” reviews were waged to damage the reputation of other businesses. A study from the University of Illinois, Chicago, stated that 30% of online reviews are fake, and that that number could double by 2018. Which takes us to the next step.

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The User-Defined Service Experience

So what does “user-defined” mean? In the early days of social media, the only content posted was the content supplied by the users themselves. Platforms like Facebook and Twitter only exist today because users posted self-generated content. So, for our purposes, the content is self-generated or “user-defined.”

This user-defined approach can also be applied to a purchasing or service experience. In this scenario, customers become the co-creators of their own personalized experiences. In his book, The Future of Competition: Co-Creating Unique Value, C.K. Prahalad states, “In this space, value lies in the cocreation experience of a specific customer, at a specific point in time, in a specific location, in the context of a specific event.”

This brings us to the front step of the dealership’s service department. It’s the service department’s responsibility to not only provide great service but to also ensure that customers are co-creating their experiences. The biggest challenge is doing the same thing with each individual customer.

The days of the “one size fits all” set of processes are long gone, and the opportunities to move toward a unique co-creation experience are limitless. We need to start the process of client engagement by looking at feedback from our customer bases. We can provide a great experience by listening to our customers and giving them what they want, while realizing that the brand is the experience, not the product or service itself.

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Advertising to Customers

Then & Now

71%DIGITAL ADVERTISING

Of Consumers Use Mobile at Some Point During the Car Buying Process.

MID 1990’s

INTERNET EXPENSES

5%

$300M

2016

$60B

2002

MILLENNIALS AVERAGE

27.8% 2015

Facebook allows real-time interaction where marketers can meet shoppers where they are already active.

46.7% 13.9%

26 hours

2002

PER MONTH ON FACEBOOK’S

MOBILE APP

NEWS

PAPER

ADS

EXPENSES

2015

35%

of iPhone and Android users in the U.S. check Facebook and other mobile apps before getting out of bed.

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Keeping Up With the Millers

THEN& NOW 32

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W

3

Generations of Service

PAUL MILLER MOTOR COMPANY M O D E R N D E A L E R S H I P. C O M

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In 1953,

Paul E. Miller bought a Ford dealership on Main Street in Lexington, Kentucky.

More than 60 years later, that dealership has evolved into the Paul Miller Motor Company: a 27-acre campus with three dealerships, body shops, an upfitting service, an auto glass repair company, dent repair service, and heavy truck service. It is now in its third generation of Miller ownership and leadership. Many things have changed since 1953, but the core values the company was founded upon remain the same, and have been vital to the dealership’s success, then and now.

Early Days and Founding Values Paul E. Miller, universally known as Mr. Miller, led his dealership by example, taking time every day to talk to employees and customers alike. “Mr. Miller was a real customer-focused person,” says Harold Rainey, who has worked at the dealership since its Main Street days.

“He would get out in the showroom and meet everyone there.”

Mr. Miller was a forward thinker who did things his own way. When he moved his dealership to a larger location on the east side of Lexington in 1965, Ford Motor Company thought it was a terrible location, assuming customers wouldn’t venture that far outside downtown. Mr. Miller’s legendary response was, “That’s tough, because I’ve already bought it.” More than 50 years later, the hightraffic location is thriving, proving Mr. Miller’s intuition correct.

Since the dealership’s inception, Mr. Miller understood that Paul Miller Ford’s success was deeply tied to the community. Mr. Miller brought in Nick Clooney—then a local news anchor—to serve as the Master of Ceremonies at Paul Miller Ford’s “Safety Shindigs,” aimed at Lexington’s youth.

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Today, those Safety Shindigs have been revitalized as the annual Paul Miller Ford Family Safety Day, bringing together dozens of local companies to help keep Lexington’s kids safe.

Paul Miller Ford also established a lasting relationship with University of Kentucky athletics. Adolph Rupp, legendary head coach of the UK men’s basketball team, drove a Ford he purchased from Paul Miller.

This began a tradition of UK’s coaches driving cars provided by the dealership.

Beyond UK athletics and dealership events, Paul Miller Ford also supported other local causes, from providing vehicles to daycares to donations to local hospitals and charities. “Mr. Miller did a lot of things people never knew about,” says Lee Beall, Paul Miller Motor Company CFO. “He just went out and did good. That’s the type of person he was.”

That strong commitment to service and doing the right thing was one of the hallmarks of the customer experience at Paul Miller Ford, from the earliest days of the dealership onward. One of the memorable slogans from Mr. Miller’s era, “Sit on hard chairs and save hard cash,” spoke to the straightforward, personal approach customers could expect at the dealership. “Mr. Miller was all about fairness,” says David Wilson, Paul Miller Motor Company President. “‘Always take care of your customers and your employees,’ he’d say— and we still do.”

Customer experience has become a buzzword, but we’ve been doing it for a long time.

“Customer experience has become a buzzword, but we’ve been doing it for a long time,” says JP Miller, Jr., Mr. Miller’s grandson.

“If my grandfather and father didn’t get customer experience right, we wouldn’t have been able to keep our doors open. Staying focused on our customers has been a major part of our success.”

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Second-Generation Success John Paul Miller, the second-generation Miller to lead the company, guided the dealership to even greater prominence in the Lexington community. It was under his leadership that the dealership became known as “Kentucky’s Big One,” a phrase that’s still familiar with locals.

It was during John Paul Miller’s time that Paul Miller Ford’s relationship with the University of Kentucky turned into a formal marketing strategy. The dealership created a special-edition Ford Explorer for Coach Rick Pitino, complete with his signature on the doors, and made the vehicle available for order to customers. At the same time, the dealership began featuring UK coaches in its commercials—a practice that continues today.

Twenty-First Century Tradition and Innovation JP Miller took over leadership of the company in 2006.

Under his guidance, the dealership has evolved to meet the needs and challenges of the auto industry in the twenty-first century, while staying true to its founding values: community involvement, customer service, and taking care of its employees.

In addition to the annual Family Safety Day, Paul Miller Ford hosts and sponsors dozens of community events each year. A new initiative, “Paul Miller Gives Back,” gives employees a designated number of paid volunteer hours to devote to local causes. “We’ve stayed very committed to giving back to our community,” says JP Miller. “That’s been a part of our family for a long time, and it’s in the DNA of our company.”

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JP Miller

has also continued the tradition of supporting the University of Kentucky, bringing the dealership into the Coach Calipari era with multiple Coach Cal Mustangs and commercials, and social media videos starring all three UK head coaches.

The dealership’s current tagline, “Your True Blue Dealer,” is a nod to its membership in the Big Blue Nation.

The dealership’s commitment to customer service hasn’t changed under JP Miller. Today’s Paul Miller Motor Company is devoted to providing a five-star experience to every customer and continues to build relationships with every person who walks through the door. That relationship-building is evident in Paul Miller Motor Company’s referral program. Paul Miller Ford used to follow the typical model—a flat $100 bonus for anyone who referred a new customer, which usually led to a maximum of one or two referrals per customer. JP Miller revamped the program; incentivizing repeat referrals by increasing the bonus as customers referred more friends and family members. Today, some customers are averaging three or four referrals per year.

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We’re working together as one Motor Company to support our community and make our employees’ and customers’ lives better.

In addition to re-thinking the traditional referral program, Paul Miller Motor Company is also re-thinking the sales process. Technology is changing the shopping and sales experience, both for customers and for sales professionals. Cold calling is now a thing of the past at Paul Miller, thanks to AutoAlert, which allows the dealership to identify customers who are in a good position to upgrade their vehicles.

“We put AutoAlert on our service drive and we saw success really early,” says JP Miller. “It gives us an opportunity to have a different kind of conversation with our customer, and customers are really excited about it.” High-tech tools like AutoAlert, paired with a sophisticated marketing strategy, have helped Paul Miller Motor Company stay ahead of the digital curve. JP Miller’s advice to dealerships trying to navigate the digital waters of the modern auto industry: “Make sure you have the proper tools and the right people so you can grow and build. It’s about revolution, not just evolution.”

“We’re working together as one Motor Company to support our community and make our employees’ and customers’ lives better,” says Miller. That commitment to service and community has helped Paul Miller Motor Company achieve more than 60 years of success, and has positioned the company to continue to grow, innovate, and build more relationships in the years and decades ahead.

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CPO Yesterday to

Today

An Overnight Success 40

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James Dyson, the founder of Dyson, is considered an overnight success. He has become one of the most popular and successful vacuum manufacturers, thanks to his relentless entrepreneurial spirit.

Dyson is personally worth $5 billion– a net worth he didn’t acquire through luck. He knows a thing or two about failure. There were 5,127 failed prototypes before his first model was proven successful. This journey also took 15 years, far from an overnight success. While some entrepreneurs might have given up after a few failed attempts, Dyson remained determined.

In that light, the automotive Certified Pre-Owned programs are also an overnight success. What most people call overnight success is actually the market suddenly realizing the value of a great product or service that had been kept in obscurity for too long.

Ten years ago, I started working with dealerships on their CPO programs. From 2007-09, the programs were a mystery to Dealer Principals and General Managers; even some OEM reps. When asked about the details of their OEM program, most dealers could not give accurate information of what it did and did not include. So much so, that many dealerships either didn’t participate at all, or did so on a very limited basis.

Consumers were unaware of the value of owning a CPO vehicle and only saw it as an extra expense. It took years of promoting within the industry and to consumers to become the overnight success that it is today.

The OEMs knew that CPO programs had a place in the industry and refused to give up on it. They continued to market it to dealers and consumers alike. Today, CPO sales have reached record numbers six years running. Manheim, in its 2017 Used Car Market Report, predicts that 2017 will be the seventh straight year of record CPO sales.

This success came from a great deal of persistence from those who believed there was a value to both dealers and consumers. They gained insights from actual consumers and tweaked the products until they had a compelling product, message and value proposition.

by Robert Christman Senior-Level Sales Leader, Revenue Through People, Process and Training M O D E R N D E A L E R S H I P. C O M

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They determined the reasons consumers wanted CPO and revealed those reasons to dealers. The critical reasons affecting buying decisions of today’s consumers are as follows:

TRUST When the consumer understands that the dealership took the time to inspect the vehicle, and complete and document the repairs, it creates a level of trust with the dealership. If the dealer is willing to take the time to care for these vehicles, then the perception is that the dealer has put customer needs and satisfaction first, which leads to a higher transaction satisfaction. Taking the additional time required to put a vehicle through a rigorous safety inspection bridges the trust gap between consumer and dealer.

SAFETY With vehicle safety recalls taking the lion’s share of automotive news, today’s buyer needs to know that their car is safe. They want to be assured that they and their passengers will be in a vehicle that was inspected, repaired, and certified as safe to drive.

Having access to a detailed and itemized checklist of all items which were inspected by a professional mechanic, and a car that has passed this inspection or has been brought up to those standards, appeals to today’s car buyers. Furthermore, backing this with a warranty adds additional peace of mind that the purchase is safe and reliable.

SECURITY A recent Harvard study reports that American families judge themselves financially vulnerable: almost half of Americans felt that they were unlikely to access $2,000 in 30 days in the event of an emergency. According to a Bankrate.com report, “Almost two in three Americans don’t have enough savings to pay for a $500 repair or a $1,000 emergency room bill.” In other words, if most people in the U.S. have a catastrophic breakdown, they would be unable to pay for repairs for a month! Car buyers are looking for the security of knowing that, in the event of an emergency, they would be covered and taken care of.

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THE WARRANTY DIFFERENCE A used vehicle’s manufacturer-backed warranty might still be in effect at the time of purchase. Consumers have to find out how much of the limited warranty is transferrable, if any, and how to transfer it to the new owner.

In contrast, both new and certified vehicles automatically come with limited warranties. For certified vehicles, the warranty is added prior to sale, after a repair facility performs an inspection and brings the vehicle up to minimum standards. The warranty gives consumers peace of mind, knowing a licensed mechanic has checked out the vehicle.

Manufacturer-backed CPO programs and some national brands support high standards and back CPO vehicles through a variety of warranty options that come with the purchase of the vehicle. These vehicles must be inspected and, if necessary, brought up to program standards. The vehicles are then backed by an impartial third party.

REPAIRS AND RELIABILITY CPO status isn’t a guarantee that the vehicle won’t have a repair issue. If something does go wrong with a covered item during the CPO warranty, an ASE-certified mechanic will fix it without a large repair bill. Warranty protection, roadside assistance and rental car coverage all add up to peace of mind and help the buyer feel they’re purchasing a safer, more reliable vehicle.

When it comes to safety, newly minted CPO vehicles are often more reliable because mechanical quality and reliability have substantially improved in recent years. According to Michelle Krebs, automotive relations director at Cox Automotive Inc., “the record 11.5 years average age on the road is a testament to much-improved quality and durability.” J.D. Power adds, “Vehicle reliability as measured in the VDS (Vehicle Dependability Study) has improved at an average annual rate of 8 percent from 2009.”

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CPO = PEACE OF MIND FOR BUYERS So, are today’s CPO vehicles more reliable because they’ve been inspected, repaired and backed by a warranty—or because they’re built better and designed to last longer?

Either way, the result is the same: peace of mind for buyers.

TRUST SAFETY SECURITY

OEM

BACKING

We’ve found that consumers purchase protection on their vehicles for one of three reasons: trust, safety, or security.

Whether the consumer is risk-averse or a risk taker, they want to be sure they can maintain their lifestyle if a major repair is needed.

The CPO warranty provides critical peace of mind. Plus, the backing by an OEM or major third party builds trust, which consumers say can be lacking for auto dealers.

Buyers believe they’re getting a safer, more reliable vehicle.

MORE

So, is a CPO vehicle more reliable than a non-certified used vehicle? In the short run, the evidence says yes. For mid-to-long range, CPO status gives buyers peace of mind, knowing they can maintain their lifestyle if something goes wrong with the vehicle.

GREAT

Advantage is in the eye of the buyer. They are indeed a savvy buyer if they can buy a quality vehicle at a good price and then sleep well, knowing that if anything goes wrong, they’re covered.

RELIABLE

PRICE

Like the dirt sucked up by James Dyson’s innovation, your next customers are right under your nose. In the next issue, we will explore the technology available to streamline your CPO operations and to identify your future sales, and with it, the overnight success of your dealership’s CPO program.

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MODERNDEALERSHIP

MAKE SELLING IN THE SERVICE DRIVE AS EASY AS‌

1 VIN scan notifies Sales

2

3

is printed

Customer leaves in a new car

Service-to-Sales Notifications and Process Automation

Receive real-time notifications when your customer arrives in the service lane.

With the new service drive dashboard, view recent into a new car.

Call Us Today

844.783.7344 AutoAlert.com/Pando

M O D E R N D E A L E R S H I P. C O M

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CRUSH YOUR GOALS

A Connected Team Will Thrive

by MD TEAM Content Team

Today’s consumers rule the world—and forward-thinking businesses are up to the challenge of capturing their attention. Empowered, educated shoppers continually push for progress and innovation, and they make no secret of the high expectations they’ve set. If your dealership is going to earn their business, you’ll need to show them you’re connected, innovative, and attentive. You’ll catch their eye with streamlined communication and collaboration processes that highlight your commitment to providing an excellent customer experience. Engage your entire team and get noticed for being a dealership where action and collaboration turn into sales and satisfied customers.

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Teams + Tools = Service It takes more than a one-man band to provide a great dealership experience. In fact, sometimes there’s so much going on it can seem like a three-ring circus. That’s why you can’t do it alone. You definitely can’t do it without an engaged team and the tools and technology to help you tackle it all. It requires a combination of employees who recognize the importance of a great customer experience, as well as a powerful platform that can wrangle even the most complex processes into organization. When those two things come together, you end up with excellent service that will keep customers coming back to you.

Communication Essentials: Then & Now Think back to dealership necessities of the not-so-distant past. Intercoms, message slips, overstuffed file folders being shifted between departments, and other non-technical tools ruled the day. It was pretty easy for details to fall through the cracks, leading to frustrated customers and a lack of brand loyalty.

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MODERNDEALERSHIP

Fast-forward to today. Quite a few dealerships have figured out there’s a better way to do things. They’re the ones with smiling customers in the service drive and engaged employees communicating across departments via mobile devices. They’re able to pick up customer conversations exactly where they left off because all their notes are in one place. They’re building relationships and credibility—all because they’re developing better internal communication and collaboration. They’re getting repeat business and great reviews.

How have they become so efficient? One platform.

A single hub of productivity, communication, and collaboration that has turned them into leaders in customer experience.

Evolve Your Dealership Communication Innovation and vision have merged to produce a comprehensive communication-and-collaboration platform that allows dealerships to work seamlessly, sharing internal information and communication between departments to complete jobs in record time. Platforms like AutoAlert’s Pando, give real-time updates on every task and keep jobs flowing at maximum efficiency. Built-in and customizable workflows

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offer transparency and flexibility, and tracking capability ensures you’ll never have to wonder when a job will be completed. With today’s technology, there are no lost sticky notes, no misplaced message slips, and no jobs that fall through the cracks.

Teams that work in modern, progressive dealerships, work collaboratively and focus on fine-tuning their internal communication with a specific end goal in mind: delivering an excellent customer experience that results in more cars sold.

Simply a Better Experience Focus on the many ways you can use internal communication to help you personalize and streamline customer experiences in your dealership. When you go above and beyond, you’ll capture attention and build loyalty. In the State of the Connected Customer Report, the numbers tell a story about shopper expectations:

50

66% 57% 71% 73%

MODERNDEALERSHIP

of consumers surveyed said they would consider switching brands if they felt they were treated like a number, rather than an individual.

said they would share data with businesses in exchange for receiving personalized offers and discounts.

of those surveyed said they are favorably influenced by businesses that offer customer service any day, any time.

said they are likely to switch brands if service across departments is inconsistent.

By leveraging the tools available to today’s modern dealerships, you can keep your entire team connected, allowing them to effectively share information and keep jobs rolling smoothly. Whether your focus is on helping a customer complete a purchase or ensuring a repair order is finished on time, it’ll make all the difference when your in-house communication leads to timely, effective service.

You’ll make more sales, get more repeat business, end up with happy customers—and in the end, you’ll have an empowered team that’s driving measurable results and crushing sales goals!

AutoAlert’s Pando gives realtime updates on every task and keeps jobs flowing at maximum efficiency.

MEET THE ALL-NEW PANDO ALERT

MAKE SELLING IN THE SERVICE DRIVE AS EASY AS…

1

2

3

VIN scan notifies Sales

Upgrade offer is printed

Customer leaves in a new car

Call Us Today

844.783.7344

AutoAlert.com/Pando

M O D E R N D E A L E R S H I P. C O M

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out of manual.

AI DESIGNED DEALERS AT conversica.com/auto 52 M O D E R N D E FOR A L E R S HAUTO IP

by MD TEAM Content Team

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Some brands simply stand out. You know the ones. Whether it’s a giant red target, a sleek apple, or a bright orange swish, there are some brands you instantly recognize. Same thing goes for cars. Whether a brand is based on rugged durability, speed, comfort, or any number of other factors, it gets recognized for the traits it consistently conveys to its customers. And in a competitive market, that’s what your dealership also needs to do.

BUILD A STRONG

FOUNDATION Although the success of major brands may sometimes look effortless, plenty of planning goes into the campaigns that capture consumer attention, present cohesive messaging across all touchpoints, and connect in meaningful ways. It doesn’t happen by accident. In fact, brands that deliver the best customer experiences dedicate a lot of time getting to know their customers and learning what drives them in the marketplace. By building strong consumer relationships, brands can learn what shoppers are looking for, and in turn, streamline their efforts and stay on track when it comes to delivering the best experiences.

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MODERNDEALERSHIP

Modern shoppers have changed the expectations they have for businesses. They’ve been telling dealerships they’re looking for experiences that align with their fast-paced lifestyles, and they opt for businesses that can give them in-the-moment answers, fast service, and technology that can support them before and after buying. The days of customers making requests and waiting a day or two for a salesperson to get back to them are gone. Now, it’s about instant gratification, accuracy, and excellence in service. Here are just a few of the things driving customer behavior:

WHAT DR I VES

CUSTOMER

BEHAVIOR pay more

poor service

unanswered ?’s

ended calls

social complaints

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There’s great news for businesses that are determined to deliver top-notch customer experiences. Those who’ve set goals and laser-focused themselves on what’s important to today’s shoppers are seeing a major payoff: 94% of companies say they see higher engagement and conversion rates as a result of their commitment to improving the customer experience.

DATA WILL HELP

YOU DELIVER Customers will naturally gravitate toward businesses that stand out as leaders and great service providers—no arm-twisting required. To reach this point and transform your dealership into one that offers only top-notch customer care, it’s imperative to rely on intelligent data insights to gather as much relevant and meaningful shopper information as possible. When you invest in a comprehensive data-mining platform that aggregates your best information and presents optimal, real-time opportunities, you’ll make more sales and enjoy increased customer satisfaction.

Dealerships are discovering there are hundreds of opportunities waiting for them in their own databases, and they can easily access them when they leverage the power of AutoAlert’s AlertMiner. By tapping into critical customer information via eight distinct Alerts, dealers can pinpoint customers in the service drive who are in positions to buy.

They are able to present appealing and individualized offers to customers who are already at their dealership! Everyone wants new customers, but why not take advantage of the leads you don’t even have to search for? The customers in your database are car sales waiting to happen!

To reach today’s customers, it’s imperative to have the best tools, the most relevant and up-to-date data, and a team that knows the importance of building solid relationships. With these in place, you’ll position your dealership for success and stand out in a modern, fast-paced market.

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MODERNDEALERSHIP

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M O D E R N D E A L E R S H I P. C O M

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