Modern Dealership-November 2018 by Modern Dealership

MODERNDEALERSHIP

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

contents table of

volume 2 • issue 4 • november 2018

on the cover

F E AT U R E S

Follow the Customer Journey

120-plus years of selling cars, and U.S. dealerships are only just beginning!

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Planting Seeds With Every Customer

Q & A: With Gary Ackerman

Mark Keeler, Director of Client Portfolios at Johnson Automotive

Gary Ackerman, Dealer Principal at Gaudin Motor Company

D E PA R T M E N T S modern sales

Tradition + Innovation Sparks Success at TAG Bob Tasca III, VP Tasca Automotive Group, CEO Tasca Racing

3 Demands of Today’s Customers Dave Davis, Automotive Writer & Consultant

modern fixed ops The Customer Journey in the Service Drive Stu Berkley, General Manager at Middletown Honda

The Greatest Win-Win Opportunities for Customer Purchase and Dealer Sales in the Service Lane Rico Glover, Chief Digital Officer at Rock Hill Nissan

modern operations

Make Your Dealership a Memorable Destination Bob Swartz, CEO and VP Fenton Family Dealerships

Convenience and the Modern Consumer Amy Bannor, Marketing Director at Carver Toyota

modern communication Stepping Out of Your Comfort Zone Melissa Skinner, National Car Lady

Social Media and the Customer Journey

Joey Little, Director of Social Strategies at AutoAlert

modern dealerhip insights What Customers Want On the Journey Where Do You Believe the Customer Journey Ends?

08 21 06 16 24 35

in the box

IN TH BOX E

As Marketing Director of KAR Auto Group, Amy Boehm lives her career dream every day.

32 46 19 44

from the editor: The customer journey has been defined as “the complete sum of experiences that customers go through when interacting with your company.” Up until 20 years ago, that equation consisted of basically the same touchpoints: visits to your dealership (rare), plus the occasional TV or print ad, plus your involvement in the community. Along came the internet, which created not just an entire new leg on the journey through websites and social media, but also a new way of meeting customers on the journey and anticipating their steps to buying via data analytics and predictive behavior. In this issue, Stu Berkley gives us insight into new ways to meet customers on their journey in the service lane (p. 06), while Amy Bannor shares tips for ensuring a convenient customer journey (p. 35). Don’t miss our feature with Gary Ackerman, whose family’s roots in automotive run deep (p. 38), and “Follow the Customer Journey” as it leads us through the 20th and 21st centuries of car buying (p. 26).

THE CUSTOMER JOURNEY IN GETTING THE WHOLE THE SERVICE DRIVE TEAM ON BOARD Sales in the service drive can be a delicate matter. There’s the challenge of knowing how and when to approach each unique customer, and then there’s the challenge of bringing together the entire team – service and sales – in a unified effort. These challenges are worth facing and overcoming because the rewards of service drive sales are too good to pass up. In fact, they very possibly hold the key to our industry’s success in the near future.

By Stu Berkley

General Manager of Middletown Honda

GETTING THE MESSAGE JUST RIGHT Our team at Middletown Honda has found that there’s a big group of customers who don’t respond to generic “we need your car” offers to buy their car. Customers today want transparency – they want to see our actual need for their car – and they want an offer that is personalized for them. Luckily, we do have an authentic need for their car! Cars received from our current customers eliminate auction costs and transportation fees, while giving us a lot of information on the car if we’ve been regularly servicing it. People like that we know the car, and that we can tell them something about it: This one had one owner, that one averaged 8,000 miles a year, etc. Plus, with software like Service Lead Management by AutoAlert, we have instant access to deals for every customer, even those who haven’t purchased from us. These deals are based on such a wide range of data that we end up meeting a wide range of needs and wants. 6

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One thing we just started using is the “wish list” feature, which alerts us every time a car that we’ve determined as highly valuable shows up on the drive. Or we might just know which vehicles are likely in equity, making them low-hanging fruit. We can approach these customers and obtain their financial information, so that credible deals can be made for them going forward. Ultimately, it’s a form of relationship building that triggers future sales. So we do approach customers with “we want your car,” but then we have personalized offers that make sense to them. Maybe their warranty is about to expire. Maybe they can lower their payment. Maybe they want the latest features and technology. (Remember when people didn’t want the newest technology, because they saw it as one more thing that could break? That changed!) Having just the right credible offer for every customer gives our Sales Associates confidence in their approach.

BRINGING THE WHOLE TEAM ON BOARD Nothing talks like money. It was relatively easy to get our Sales Associates on board with starting these conversations in the service waiting area, because this gives them more opportunities to sell cars. There is a small learning curve to the approach, but because the approach works, my team was willing to learn it. Service was another story. The fact is, they didn’t want to lose out on business to a new car sale. I couldn’t blame them for that. However, there are ways to share the rewards. And remember, we’re not paying auction costs and transportation fees. For me, the solution was paying the Sales Associate a commission on the internal RO. Sales wins, service wins, and as a team we win. With the whole team on board, it’s easier to meet our goal of making sure that every service customer is talked to before they leave the store. Showing them their real options gives them something to think about.

STICKING WITH IT Old habits can be hard to break. It’s hard to change behaviors when we’ve been “practicing” them for years, including how we approach our customers. But what our industry needs moving forward is additional ways of building and nurturing relationships, and the service drive provides a great opportunity – many times every day – for doing just that. It took us a couple of years to get our processes down, and we’re still tweaking them, but we’ve found a lot of success in this fast-evolving market. We sell at least 12 to 15 cars out of the service drive, and that’s just what I can quantify. I expect that number to hit an average of 30 soon. The truth is, challenges are nothing new to dealerships, or any business. Putting in the extra effort to overcome them is always worth it when the result in a win for the store, a win for employees, and a win for customers.

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Tradition Plus

INNOVATION

Sparks Success at Tasca Automotive Group

with Bob Tasca VP Tasca Automotive Group CEO Tasca Racing

It would be hard to choose which is more awe-inspiring: The fact that behind the wheel of his Shelby Mustang Funny Car, Bob Tasca III regularly goes from 0 to 60 mph in about half a second, or the fact that he leads a dealership group that has seen consistent, high-level success for 75 years now. 8

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Both of these awesome feats require a lot of skill, a lot of heart, and a dedicated team. At the Tasca Automotive Group dealerships – located in Rhode Island, Connecticut, and Massachusetts – a strong sense of team unity was established from day one by Tasca’s late grandfather, Bob Tasca Sr. That unity is a natural byproduct of a focus squarely on the customer.

Tasca Sr. even wrote a book, titled You Will Be Satisfied, that still today serves as the philosophy behind the dealerships’ approach to an excellent experience for every customer at every stop along the journey. “We have a time capsule where we filmed my grandfather, and all new hires watch the video when they go through orientation,” Tasca says. “It makes a difference to see him and to hear in his voice what we expect.” With chapter titles like “Service Is the Backbone of Any Business” and “Leadership: A Constant Challenge, Not a Reward,” the classic values that his grandfather taught still apply today. Tasca now gets to see four generations of families buy from the dealerships. A few key ingredients that fuel that success include culture, processes, and yes, speed (of service!).

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First and Foremost: Culture In an industry where turnover is high, the long tenure of employees at the Tasca dealerships is refreshing. Some have even been working there for almost 50 years. “I’m very proud of my team. We’re one big family, all here to serve the customer,” says Tasca. “And our customers are an extension of our family too.” A culture centered around the customer is the number-one driving factor behind the company’s success, Tasca says. Supporting what they learn through Tasca Sr.’s “You Will Be Satisfied” philosophy, employees are given a “blank check” to do whatever it takes, within reason, to make sure that every customer leaves satisfied. Empowering the entire team, not just managers, to do the right thing in this way leads to a great deal of employee satisfaction too.

“At the end of the day, buildings don’t sell or service cars, people do,” Tasca says “The culture that we’ve created is that we expect every customer to be satisfied. That only happens through our team.”

Finely Tuned Processes Just as important as culture, the company’s sales and service processes can also be attributed with ensuring a successful customer journey. These processes have been finely tuned over 75 years of business to best meet the needs of current and future customers. “As much as things have changed, things have stayed the same,” Tasca says. “It’s still a people business. We still need to earn the customer’s trust and loyalty.” Repeatable processes, carried out by a well-trained staff, create a consistent experience that helps build trust in the dealership. 10

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On the Sales side, the team starts the process with a guest survey in order to truly understand all of the customer’s needs and wants in their next vehicle. In Service, the team goes through an electronic menu outlining exactly what every vehicle (based on year and mileage) needs, leaving nothing to chance. This rigorous process ensures that every vehicle leaves with the proper work done, or at least recommended. “With great people behind the processes, including an experienced leadership team that inspects what we expect throughout the process, we can deliver a truly exceptional journey,” Tasca says.

Pedal to the Metal? Speed of service is certainly important to the customer journey. But at Tasca Automotive Group, the team has learned that faster isn’t always better. Yes, technology has allowed them to speed up processes that would otherwise waste a lot of the customer’s time. For example, AutoFi allows customers to fill out paperwork before coming into the dealership. The team also uses AutoAlert to cut through the clutter and pinpoint precisely which customers are in an ideal position to swap keys today. “When they do come into the dealership, they want the car to be out front, gassed up and ready to go,” Tasca says. “We include this in our processes.” However, there are other times when speed actually works against both the dealership and the customer. “Customers often come into the dealership having spent a lot of time online, and there are times when you want to slow down,” Tasca says. “You want to make sure that it’s the right car for the customer, make sure it has all the options and equipment they need. And make sure they’re making the right decision.”

Win on Sunday Sell on Monday

Living the Dream It was Tasca’s grandfather who coined the phrase “Win on Sunday, sell on Monday.” Tasca lives that quote today, giving him an authenticity in both his work at his dealerships and on the racetrack. Being with fans, signing autographs at the ropes, is his favorite spot to be. But that enthusiasm carries over into the dealership.

When asked what it’s like to drive the nitro-fueled Shelby Mustang, going from 0 to 100 in less than a second, covering the length of a football field every half second once past half-track, experiencing a 13-G swing between the 6 Gs of acceleration and the -7 Gs when the parachute deploys, he responds:

“The passion for Ford and for racing, for winning, losing, and the whole experience, it translates right into the showroom. The same people who support us at the racetrack are back in the showroom buying our vehicles,” he says.

“It’s indescribable. I asked my good friend Tony Pedregon, who has a lot more runs than me in a car, How do you describe it? And, humbly, you really can’t describe it. I’ve used analogies, like pulling the trigger of a gun and riding the bullet …. As a fan, sometimes I’ll sit in the stands, and I see the cars come by at the finish line, and I still can’t believe there’s a human being in that car who knows when to shut it off. Being able to see the whole thing in person to me is as impressive as being in the car.”

Tasca is a modest leader. When asked what he’s most proud of in his work, he doesn’t hesitate: “My team. They come in every day, ready to work hard. I couldn’t ask for better people.”

“...humbly, you really can’t describe it.” M O D E R N D E A L E R S H I P. C O M

JOEY LITTLE AT NADA 2019 Topic:

SEVEN FUTURIST SOCIAL MEDIA TRENDS FOR SUCCESS IN 2019 Speaking times: JANUARY 24 Time: 4:00PM Where: 3022W JANUARY 26 Time: 9:00am Where: 3022W

JOEY LITTLE

Director of Social Strategy at AutoAlert

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DONâ&#x20AC;&#x2122;T FORGET TO VISIT THE AUTOALERT BOOTH FOR YOUR AUTOBASH PARTY PASSES

written by:

Mark Keeler DIRECTOR OF CLIENT PORTFOLIOS AT JOHNSON AUTOMOTIVE

Planting Seeds with Every Customer The industry is in a scramble trying to figure out how to sell more vehicles, but the answer is right in front of us:

Communicate with, and show genuine care for, the clients we already have. It seems simple, but I wonder if our efforts in this direction as an industry really filter down to our clients in a meaningful way. It takes a strong commitment on a store-wide level to walk the walk in assisting our guests, in a pro-active manner, conveying their importance to us.

We build these relationships not only by creating truly memorable experiences throughout the customer journey, but also by consistently providing something that the competition cannot. M O D E R N D E A L E R S H I P. C O M

First Things First: Getting it Right from the Start Instead of being a cliché, “customers for life” should be an ever-present objective in the Sales Associate’s/Manager’s mind. What we do and why we do it surpasses the individual sale or the monthly objective.

And asking for permission to communicate in their preferred method (text, email, etc.), rather than asking for a call back, will often prompt a response. Offering them what no one else is offering will get their attention. Our clients deserve to know that opportunities exist for them in ways they might not have thought of: About to expire (or expired) factory warranties: We offer extended

This might start with new guests in the showroom. They have already picked our dealership, so the relationship has begun. Our Managers are required to Google them and briefly research their social media accounts for basic information. Something as simple as using someone’s preferred title (e.g., “Doctor” instead of “Mrs.”) can go a long way in showing that details matter, and that we care about getting the relationship right from the start.

warranties at discounted pricing to

It is critical to establish rapport with a guest who’s about to spend $50,000 on a vehicle. Today’s consumers want you to relate to them on a more personal level, and doing so is essential to earning their business. Once the client has purchased from us, serviced their car with us, or even engaged with us online, having software that provides personalized, credible offers goes a long way in keeping their business too.

Options that increase value, such as

ensure that our clients come back to us, producing residual gross profit and increasing product penetration. Owns a vehicle that we have a particular need for in our L-Certified inventory.

Lexus’s latest safety features, technology, styling, and factory warranty, while maintaining a similar payment. Alternatives to their current model, as it may no longer fit their needs.

Staying in Front of Our Clients We know that consumers today are more savvy and less forgiving with marketing, so sending them the latest ploy (fake handwriting, “win a free teddy bear,” scare tactics, etc.) will not work. Calling them on the phone also won’t work – but they will listen to a voice message. What information you leave on that message is all important. 14

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This is where AutoAlert is particularly helpful to us. It lets us know precisely where and when to plant the seeds that shorten buying cycles. Because we know the vehicle position of our native clients, we are able to deliver more precise options. It also allows us to plant seeds with our conquest customers, who outnumber our native customers three to one. All of those people have vehicles we truly need, and I want their next purchase to be from us, not a competitor. We market this clientele in the

same way as native: We need your vehicle, Do you have warranty protection on your vehicle, Is your current vehicle fitting all of your needs, etc.

Sales as a Natural Byproduct of Planting Seeds Planting seeds with clients is our objective, creating needs they didn’t know they had, and always offering them more.

Vehicle sales are then a natural byproduct of what we do.

A True Win-Win What better inventory to sell than local vehicles, bought here, serviced here, and traded here versus bought at auction, with buyer’s expenses, buyer’s fee, auction fees, transportation, and then … who knows what you end up with? They were selling at auction for a reason. We prefer obtaining our own clients’ vehicles that we can certify, vehicles we can price according to pedigree, vehicles that cannot be shopped – and we have kept a customer in the process. In every instance where these programs have been implemented, CPO and L-Cert sales have skyrocketed, without exception.

“Is your current vehicle fitting all of your needs?” This question is posted in all of our service lanes and in all of our Sales Centers, which are set up in our customer lounge areas. Along with our presence in the service lanes, we ensure that our efforts to communicate extend to proactive telephone solicitations, e-mail campaigns, and direct mail campaigns, all supported by AutoAlert’s analytics. As customer fatigue is always a concern, we schedule the delivery of our messages very carefully. Our new guests are always made aware of all of the options we provide, with a refreshing message letting them know that we will reach out when we see any opportunities available in the future. This plants the seed with them, but is also a reason to buy from us – we will continually keep them informed of relevant options.

We’ve also realized increased profits, market penetration, and sales ranking through our customer retention. When it comes to increasing car sales, the answer lies right in front of us, in our current guests. Using software like AutoAlert makes it easy to reach our goals of personalized, helpful interactions across the board with every client. When we take the time to cultivate relationships in this way, we reap the rewards. M O D E R N D E A L E R S H I P. C O M

$ $$

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OPPORTUNITIES CUSTOMER PURCHASE

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Service Lane.

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By Rico Glover

s most of the people reading this article will agree, when we look at dealerships across America it is very common to see two distinct groups of people in a dealership almost every day. Group one: Sales staff who complain about low sales for the month, while blaming results on either poor advertising or lackluster opportunities yielded by the dealership’s marketing strategies. Group two: Customers of the dealership who are generally at the dealership in some sort of service capacity. This group of people is often ignored, having been profiled by the sales staff as “just another service customer”. Most business people would assume that returning service customers have VIP status and are catered to accordingly. Although this is the case for most industries, automotive dealerships seem to continually fail in that endeavor. The question that an outsider looking in would ask is, why? The answer to this question is simple. Dealers have created a culture around what many would consider their most valuable asset - our active customer base. For decades, dealerships have focused on one-to-one conversations with service customers, handled by new employees who try to mine information by asking leading questions about their vehicle, as well as their personal driving habits. The problem that arises from this sales tactic is it often leads to rejection from very uncomfortable customers. That system simply did not work, often resulting in defection from our service departments. Customers simply do not like to be sold in such a way. As dealers across America realized this, most opted to discontinue this in-your-face sales tactic, but haven’t replaced it with a more effective process. Once again, the question

Chief Digital Officer at Rock Hill Nissan

is why? The reason new processes were not implemented is that there simply was not a better way. The reality is that it is 2018, and there is a better way that includes both timing and the wealth of data that is available in the world today. Let’s start with the data. Technology has expanded in every department and hundreds of points collect data from our customer. This includes financial data, service data and behavioral data that can help determine buying and servicing cycles. There is also a wealth of third party data available to dealerships and our vendors, helping pinpoint behavioral habits of our customers. This data can predict when customers are in the market for post-sale services we provide as well as timing on new vehicle purchases. Let’s take a look at timing and the effect it can have in customer engagement, while also increasing employee engagement. One thing I have learned in life is that rejection hurts and most people try to avoid it at all costs. I think it would be safe to say that 85% of the time if we ask someone to sit in our service lounge, and then try to sell that customer a new vehicle, it will end in immediate rejection. This level of rejection more often than not, will disengage dealership personnel, leading to failure in our endeavor to educate our customers on the options currently available to them.

Is there a better way? What if we could combine the data dealerships collect on customers, the predictive behavior data from third parties, and at the same time add a timing element with a process engine that eliminates most of the rejection? I would argue this is a system that would allow dealerships to focus more time and effort in creating an

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

educational experience for our customers. I recently read a white paper that says the amount of time a customer spends waiting to hear from a service worker concerning the status of their vehicle directly effects both dealer profitability and CSI scores. The study claimed that, on average, a client waits 45 minutes to get an update from an advisor. The longer a customer sits in the lounge the less they are willing to pay, and the probability of defection increases by the minute. What if we could approach those customers with additional choices on how to deal with maintenance costs? Instead of asking them to pay $1,800 for new tires and annual maintenance, what if we could simply get them a new vehicle for the same payments? What if we could have an intelligent conversation with customers who decline customer pay situations because their warranty has expired? Would we sell more vehicles and retain our customers? What if the cost of a program like this was a fraction of the cost of a new customer acquisition? Believe it or not, the technology that enables us to accomplish all of this exists today. As I did my research I started with the many equity tools on the market today, to see who had the best technology and interface available. There are many of these vendors to choose from, but only a couple that lead the industry. Next I looked for the timing aspect, with zero tangible results, until I found AutoAlertâ&#x20AC;&#x2122;s integrated Pando product. To me, this software product that combines messaging with an internal process engine checked all the boxes. Imagine a company like Slack combined with Salesforce CRM and our internal data, and you have AutoAlertâ&#x20AC;&#x2122;s CXM platform and its Service to Sales solution. I can finally manage what was formerly unmanageable. This is a tool lots of dealers have been searching years for- a program that increases employee, management and customer engagement at the exact same time. Investing in technology that yields a win for everyone in the customer lifecycle is something I suggest every dealer consider in the quest to find, sell and keep your customers.

AT NADA 2019 H OT BO T ER AL TO AU E TH AT GET YOUR PARTY PASSES

9:00PM - MIDNIGHT T.COM/AUTOBAS LEARN MORE AT WWW.AUTOALER

H2019

As new shopping channels emerge, consumers today want to move seamlessly along their journeys. Convenience and personalization rule. of shoppers value personalized customer service in-store

of shoppers do not feel like retailers know them

of shoppers say retail experiences are disconnected across channels

Drive impulse purchases:

49% of customers bought items they did not intend to buy due to a personalized recommendation from the brand they were doing business with.

of millennial shoppers feel that store associates do not have the tools they need to deliver great customer service

Build loyalty:

Increase revenue:

44%

40%

of consumers say they will likely repeat after a personalized shopping experience.

of U.S. consumers say they have purchased something more expensive than they planned to because of personalized service.

Sources: Salesforce Connected Shopper Report & Segment 2017 State MofOPersonalization D E R N D E A Report L E R S H I P. C O M

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DEMANDS TODAY’S CUSTOMERS

Dave Davis is a freelance writer, editor and consultant currently writing The View from the Crew, a book focusing on team building and leadership, due out in 2019.

Dealerships can still build loyalty, but only if they give consumers what they want

INDIVIDUALISM

KNOWLEDGE

T R A N S PA R E N CY

Compared to other fields, the automobile industry has been historically slow to adapt to changes in consumer behavior and trends in the marketplace. While this has been begrudgingly accepted by the customers in the past — if you wanted a car, after all, you had to go to the dealership — that mindset of toleration is crumbling with today’s consumers. In building for the future, there are three facets that dealerships must master today.

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Individualism The age of the “one size fits all” marketing approach is well and truly behind us. Some believe the shift started as the Millennial generation came of age in the marketplace; in general, they were raised to value their individualism over the need to fit in with the crowd. As a result, they tended to ignore advertisements aimed at the masses. Effectively marketing to this group required developing methods and technology to connect with their individual needs and create targeted messages that were relevant to them. A funny thing happened, then: Some of this targeted messaging strategy slipped into marketing for older generations, and they found that they, too, liked being treated as individuals. No matter their age, once people are exposed to that kind of marketing, there’s no going back. The first job of a dealership is to get the prospective customer’s attention when they enter the market for a vehicle. Technology now exists that allows dealerships to reach these customers earlier and earlier with the offers and products that they want. In fact, artificial intelligence is getting so good that often dealerships can reach these consumers before they’re even aware they’re in the market. The message itself might give them the idea that this would be a good time for a new vehicle. This is a great place to be, because your dealership can reach them before they’ve had a chance to shop around, when it’s easiest to maintain profit margins. To achieve this, however, the marketing message must be relevant to their needs. Sending a mailer about new car deals to someone who purchased a car last month is worse than ineffective; they’re more likely to disregard anything else you have to say in the future. An oil change deal to a customer who’s just had it done? Same effect. Your marketing must take into account the customer’s needs. Are they adding to the family? Are they retiring? Would they be rejected for a new car deal because of credit issues? If you craft a message taking everything there is to know about individual consumers into account — and through A.I. and big data, there’s a lot to know — you can put your dealership at the top of their mind when it comes time to step into a showroom. But then you have to be ready for them.

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Knowledge Your staff has to be better informed than the customer, which is not an easy goal to reach these days. The modern consumer has rapid access to information — they are easily some of the most informed and educated customers in any field of sales — and they are motivated to learn. Since this is a huge purchase for them, they have a vested interest in educating themselves about the vehicles they are thinking about buying. To be effective, the salesperson has to be seen as the professional in the relationship. That’s almost impossible to accomplish if the customer is able to tell the salesperson details about the vehicle that the salesperson didn’t know or, worse, stumps them with a question they should be able to answer. Still, while they might know all about the vehicle, it’s still the salesperson’s job to walk them through the process of making the purchase. Even if they have gathered all the information they believe they need through websites, publications and other means, there’s nothing like seeing the vehicle with their own eyes. Being led through a comprehensive walk-through by a salesperson who can demonstrate all the great features that vehicle has to offer leads naturally to the sale; taking them on a test drive and letting them experience the vehicle first hand can change them from a potential customer to a buyer. And, once the vehicle is selected, customers need to feel that they are in the hands of a trained expert and advocate.

Transparency Part of being the customer’s advocate is not springing surprises on them. Many “done” deals are wrecked when the salesperson brings an “oh, by the way” expense out from nowhere. No matter how much they like the vehicle they’ve chosen, they are most likely apprehensive about paying that much money for an item. It doesn’t take much for them to put their shields up and rethink the entire transaction. Again, these are educated consumers who have many online resources — TrueCar, KBB.com, Edmunds to name just a few — they tell them where the deal should be. Most customers, especially younger customers, don’t want to haggle. In fact, they won’t. If you lose their trust, there’s another dealership or, increasingly, an online outlet who’ll be happy to pick up where you left off. Today’s consumers are much more “point and click” than “grind it out” when it comes to transactions. Be upfront about the details that go into the price you’re asking. Let them know why the price is what it is. If you can’t beat the price they believe they can get elsewhere, let them know that you’re selling more than the vehicle. The customer will often be willing to pay a little more if you give them a reason to do business with you. You must sell your dealership. This is a big investment for the buyer; let them know that you’ll be there after the transaction is complete. If there’s a problem, you’ll be there to fix it. Your job is to make sure they are comfortable before, during and after the sale. Can the online sellers say that? Can you beat the service your competition provides? Is this a one-time sale, or is the beginning of an ongoing relationship with the customer? Be the dealership the customer demands and deserves.

The first job of a dealership is to get the prospective customer’s attention when they enter the market for a vehicle. M O D E R N D E A L E R S H I P. C O M

MAKE YOUR

By Bob Swartz CEO and VP of Fenton Family Dealerships

DEALERSHIP

A MEMORABLE DESTINATION Many dealerships have provided excellent service and a fair deal to their customers for decades. However as an industry, we’ve historically been given a bad rap for providing just the opposite, with the vast majority of consumers saying that buying a car is an unpleasant experience. The fact that a car is the biggest or secondbiggest purchase of most people’s lives does make buying one inherently stressful. When you’re shopping for a pair of socks, not getting the best deal equates to pennies, and service is of little importance. A car is a different story.

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Plus, it wasn’t that long ago when consumers had to drive from dealership to dealership for pricing and other information on the cars they were interested in. They probably weren’t always treated as well as they should have been, and they worried that they weren’t getting a fair deal. When internet pricing came along, it wasn’t always transparent and could feed into consumers’ negative feelings about dealerships. Whether the fault lies with us or not, there is a lot we can do to turn the tide and make car buying easier and more enjoyable. Most of us who operate dealerships recognize that continuously striving to improve the customer experience throughout the buying journey is key.

Here are a few things we’ve found success with at Fenton Family Dealerships for showing our customers that we care about their experience as much as our bottom line:

v i s i t an average of 1.5 or fewer dealerships before purchasing. So basically, as soon as somebody walks through your door they’ve already chosen you. One of the best ways to live up to their expectations is to have a friendly, educated staff. We continually train all members of our team to ensure that they know what’s expected of them, how to follow processes, etc. “Always Be Coaching” (versus “Always Be Closing”) might seem to take the focus off closing deals, but having the help of knowledgeable, efficient Sales Consultants is so important to our customers that it often amounts to the same thing.

tiate and Add Valu n e r e. iffe

Personalized deals by AutoAlert are one way we stand out from the competition and create value for our customers, but we also offer a lifetime powertrain warranty and high-quality CPO used cars. Our store is clean and welcoming, and we regularly modernize the showroom and waiting areas. We also have a policy that all employees wear a uniform so that customers know immediately whom to approach with their questions. This gives our team a professional look, but more importantly, lets everyone who walks through our doors know that we care about them – that we’re ready to help.

of the best things that today’s technology does for us is give us great opportunities for keeping in touch with customers and starting a conversation. Our CRM tells us when a birthday or anniversary is coming up, and our Sales Consultants send handwritten notes. And then there’s AutoAlert, which analyzes a wide range of data to tell us exactly when to reach out to specific customers about a deal personalized just for them. This might happen in the service lane, with a customer who can swap keys on a new car for a smaller payment today. It gives us the perfect opportunity to say “hi” to every customer and start a conversation about something relevant and helpful to them.

Ke ep

“Always Be Co ach ing ”). Consumers

. nt va le

t’s T ha ( C

ll Commun ake A ica M tio – h nR c u o e One T

n the Com lved i mu o v n nit I e

At Fenton Family Dealerships, giving back to our community is just a part of living here. We do donate money, but we also make it a point to get involved personally. Staff members go out to various local organizations like the local food pantry and Big Brothers Big Sisters for volunteer days. One really fun thing we do is donate a car to a deserving high school graduate every year, based on academics and the student’s own involvement in the community. At the end of the day, it comes down to building real relationships.

One advantage to having a relatively negative reputation as an industry is that it gives us a lot of chances to stand out in our customers’ minds as memorable. This will become even more important as car-buying continues to evolve – for example, it might not be long before cars are sold online, and then delivered to buyers or picked up at the dealership. Evolving with our customers, and focusing on providing them with consistently excellent service and experiences to build strong relationships, will help ensure that Mtheir journey continues with us. O D E R N D E A L E R S H I P. C O M 25

FOLLOW THE

CUSTOMER JOURNEY 1890s William E. Metzger opens the first car dealership in the US on June 7, 1897 selling Waverley electric cars. Two years later, he sells the first automobile built by

1900s

Oldsmobile. (In 1902, he helps form the Cadillac Motor

The Ford Motor Company is incorporated, selling its

Car Company.)

first Model A on July 23, 1903.

The first car advert, for Winton Motor Carriage

Henry Ford makes his Model T. affordable with

Company was featured in Scientific American magazine.

innovations like interchangeable parts and the assembly line. By 1914 this has reduced the cost from $825 to $490; by 1921 the Model T costs only $310.

1910s Doctors are among the first to use automobiles, making house calls much easier. Police officers can also now respond to calls more quickly than on horseback or on foot. The first two car magazines ever (The Horseless Age

1920s

in the U.S. and The Autocar in the U.K.) debuted the

Between 1918 and 1929, the number of cars on the road increases from 8

same year, 1911, and are still in existence today (as

million to 23 million.

Automotive Industries and Autocar, respectively). We might be biased, but Modern Dealership is still our

By the middle of the decade, over 10 percent of all people in the U.S.

favorite industry mag!

workforce are employed in the production, sales, service, or fueling of automobiles.

In 1919, GM forms the General Motors Acceptance Corporation, offering terms of 35 percent down with

As evidenced by the slogan, ”See the new Auburn—Ride in it—Drive it, and if

the balance to be paid in installments over a single

the car does not sell itself, you will not be asked to buy”, the Test Drive arrives

year. With the buyer driving their new car away that

as an integral feature of the car buying process.

day, auto financing as we know it is born. By the mid’20s, three quarters of car buyers financed.

MODERNDEALERSHIP

By the end of the Roaring Twenties, 4 out of 5 American families have a car.

1940s Before WWII, the American auto industry produced 4 million cars annually. During wartime, no more than 700 cars are produced in a year, all of which are conscripted into military service.

1930s

Used cars become a hot commodity in such short

Though times are tough as the Great Depression devastates the

order that Congress is forced to enact legislation to

American economy, car makers continue to invent â&#x20AC;&#x201C; automatic

cap used car prices. Due to the demand, cars are

transmission, the V-8 engine, hydraulic brakes, column mounted

often pulled from junkyards to be reconditioned.

gear shift, and the trunk! Dealers survive the war by turning their focus to used Chrysler joins Ford and GM as the third of the â&#x20AC;&#x153;Big Threeâ&#x20AC;? and

cars, as well as parts and service.

designs the first car with aerodynamics in mind - its Airflow model. Even as troops return home, new cars are in short The market for pre-owned autos increases - so much so, that in

supply. For each new car manufactured, a dozen

the mid-Twenties and again in 1937, some dealers actively junk

customers are in line to buy.

many serviceable used cars in an attempt to steer customers back to new vehicles.

As the Fifties approached, glitzy new showrooms are the centerpieces of increasingly adept advertising strategies, selling the status associated with car ownership as much as the automobiles themselves.

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

1950s By 1955, over 20 million licensed drivers in the US are women and the automotive industry tries new marketing approaches. From Charlotte Montgomery’s Handbook for the Woman Driver offered at many dealerships, to “Ladies’ Nights” promotions pairing fashion and cars, dealers learn to consider women as serious shoppers who prefer courteous staff and impeccable facilities. In 1956, President Eisenhower signs the Federal-Aid Highway Act, creating the Interstate Highway System, which further increases the demand for cars and car-related services. The Fair Isaac Company creates the first FICO score, still used in determining consumers’ creditworthiness today.

1960s

A ubiquitous feature of car buying, the window sticker is introduced

As postwar prosperity continues, more

and becomes federally mandated on all new automobiles listing

Americans could afford cars than ever before.

specifications, fuel efficiency, and any added-on optional equipment. Muscle cars arrive, offering higher Celebrities extolling the virtues of a particular maker’s cars go back at

performance coveted primarily by young men

least as far as the Twenties, when Fatty Arbuckle lent his influence as

in the burgeoning culture of street and drag

the foremost comedian of the day to Pierce-Arrow. By the late Fifties,

racing. By the late ’60s, cars in film, such as

Groucho Marx lent his smooth salesmanship to the “De-Lightful, De-

Bullitt’s Mustang, become iconic. Despite later

Lovely DeSoto” on television, persuading customers to give a DeSoto

associations with machismo, the Mustang is

the “Five Mile Trial” test drive at their local dealer.

initially marketed to women. The first model is sold to a 22-year-old schoolteacher, Gail

Dealer promotional

Brown. She still owns the car.

models were popular & help market cars to

On the decidedly mellower end of the

consumers. Surviving

spectrum, the Volkswagen Bus becomes a

examples are now

hit with surfers cruising the coast in search of

coveted collectibles.

waves, and later with hippies looking for an affordable vehicle that could transport more

Demonstrator cars allow on-the-fly test drives to anyone a salesperson

passengers.

may meet while out and about. Not just a perk for sales staff, “Demo” cars help make sales for decades. Power steering and air conditioning in cars, introduced as comfort and convenience, become increasingly important. Auto accessories become popular. One great example is the dual-purpose Chevrolet Car and Home Electric Shaver Unit. As prosperity drives new car sales, the used market

VW has plans for a 2022 update of the Sixties

grows alongside it. Programs

classic as an electric vehicle.

such as GM’s “OK Used” and Studebaker’s “ABC- Always Buy Certified” increase buyer confidence in pre-owned vehicles.

MODERNDEALERSHIP

1980s The Reagan Administration requests voluntary export restraints from Japan to the U.S. market. This leads Japanese manufacturers to produce more profitable upscale cars. Between 1986 and 1989, Honda, Toyota, and Nissan launched Acura, Lexus, and Infiniti respectively. While the American market makes considerable strides to catch up with efficient, inexpensive imports, the perception of American cars (even fictitious future ones) as oversized gas guzzlers largely persists: see 1987’s Robocop and its “6000 SUX” 8.2 mpg car ad.

1970s Congress passes the Clean Air Act. Los Angeles smog in the 1970s is known to be the key factor in driving the industry to produce cleaner, less polluting engines. Carfax is founded. Initially launched to help curb On October 17, 1973 the Arab states of

odometer fraud, Carfax begins distributing vehicle

OPEC begin the first oil embargo against

history reports to dealers via fax machine. CarFAX,

the United States, starting a subsequent

get it? This early step toward the use of newer

energy crisis. Fuel efficiency is a much

communications technology presages the internet boom, including the 1996 launch of Carfax’s own website, which offers consumers the same vehicle history reports available to dealers.

larger concern, and jump starts the rise of imports. Typically smaller,

Affording customers a measure of confidence by

more efficient, and producing fewer emissions, import cars took 16

providing documention of a vehicle’s history, Carfax adds

percent of the American market share by the mid-70’s.

a degree of transparency in the buying process. This allows customers added peace of mind and helps dealers

While the embargo only lasts until March 1974, the entire automotive

display integrity.

industry is irrevocably altered, along with the American relationship to cars and driving.

Throughout the ’80s, cars and pop culture continue to be inseparable. Would Back to the Future be the same

There is some small reprieve for bigger, thirstier cars. Modified vans

without the DeLorean, or Miami Vice without Ferraris?

become a staple of ’70s car culture, and larger cars like the Chrysler Cordoba become popular – surely in no small part due to commercials featuring Fantasy Island’s Ricardo Montalban touting the luxury model’s “rich Corinthian leather.”

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

1990s On July 30, 1990 the first Saturn is completed. While part of GM, Saturn positions itself as “a different kind of car company, a different kind of car.” The brand’s no-haggle pricing, salaried, low-pressure salesforce not reliant on commission, and keen focus on customer service are somewhat ahead of the times. Buyer expectations begin to shift toward a shorter, streamlined, more pleasant shopping experience. At least partially thanks to Saturn’s business model, dealer focus trends away from the one-time sale and on to building relationships with customers. The World Wide Web is first made available to the public in 1991. Though slowly at first, the game is changed forever. Google is founded in 1998. While not the first search engine, Google quickly comes to dominate the field with superior search algorithms. This allows buyers unprecedented quick and easy access to virtually any information, from specs to reviews of vehicles and dealerships.

2000s

2010s

Toyota markets the first Prius in the U.S. as a 2001

61 percent of initial contact is by walk-in to a dealership, but 59 percent of

model, bringing an increased focus on eco-friendly

the customer’s shopping time is spent online before, after, or even during

alternative-fuel vehicles.

the initial showroom visit. 88 percent of customers use multiple devices to shop, spending an average of nearly nine total hours vehicle shopping.

The shift toward the “Web 2.0” paradigm

As recently as the early 2000s,

begins as sites become

buyers visited five dealerships

increasingly interactive

before making a purchase. A buyer

with visitors able to

today will visit an average of just

leave comments, creating a truly participatory

1.2 dealerships. Customer polls rate

online experience.

satisfaction is lowest with regard to length of time spent in the buying process. While customers may be

Database management and data-mining software

happy with the overall experience, interactions with dealership staff,

allow dealerships to reach out to customers in

and test drives, data shows that streamlining the process is invaluable.

increasingly personalized ways. In 2016, Pando, the industry’s first dealership communication Sport utility vehicle sales peak in the U.S., with

and collaboration tool, hits the market, connecting dealership

3,314,000 total SUVs sold, before declining in

staff and vastly improving the customer experience.

popularity. They’ll see a resurgence after 2010. The average age of cars on the road has climbed to 11.4 years in 2016. It was 5.6 years in 1970. Dealerships incorporate service-to-sales software in response to the growing number of service appointments and resultant customer needs. Another industry first, in 2018 AutoAlert’s Customer Experience Management (CXM) platform ensures a seamless, personalized experience both online and offline for customers throughout their journey.

MODERNDEALERSHIP

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MODERNDEALERSHIP

ave you ever had an unforgettable purchasing experience? Did it matter if you were buying a big-ticket item, or the smallest thing? It likely came down to the way you felt afterward, and that was due in large part to how you were communicated with and treated by the salesperson. The importance of the customer experience is all the hype these days – and for good reason. However, a lot of dealership sales staff and managers still seem to worry more about the bottom line than the customer. Getting out of that mindset requires a new approach to customer relationships, and it starts with being willing to show how much you care. After all, where would we be without our customers?

Making a Connection I see a large number of sales consultants in dealerships around the country attempting to contact a customer only once or leaving a couple of messages and then moving on to the next. We simply have to make more of an effort, especially considering all the ways to reach someone in today’s world. Some customers still want a phone call, but have busy lives. We know that members of younger generations prefer texting and will never answer a phone; many of them do most, if not all, of their communication on social media. It’s important to adjust to each customer individually, like a chameleon, trying every method simultaneously until you get a response. Most of all, follow up, follow up, follow up – if they are not ready to buy today, it’s just a matter of time before they will be, and you want their business. Communicating with customers in their comfort zone is the first step to an unforgettable experience for them. Stepping out of our comfort zone to make the customer feel more at home is what we need to do! Texting a video introducing yourself might feel a little uncomfortable, but it is amazing at

breaking down walls. I usually call first, and if I don’t reach the customer, then immediately send an email and a video text so they can put a face with my name, humanizing myself. This yields a much higher response rate. If a customer is inquiring about a specific vehicle, I will introduce myself and the car with a short walk-around video. Get creative and make it personal to that customer. The first impression is your first step on the customer journey down the road to the sale, and this is a great chance to show your eagerness to help.

Standing Out Your customers come from all walks of life, from old to young, business to family, busy to laidback, good credit to bad credit or no credit. One of the major things that can make or break a sale is how you show up for them – actions speak louder than words. Customers buy from people they like and feel they can trust. How you treat your customer, not whether you close a deal today, is key to your success. Of course, you always want the deal today, but you also want the deal the next time they buy, someone in their family buys, their friends buy, their coworkers buy, etc. Customers for life, right? One of the great downfalls I see at dealerships across the country is a lack of empathy or any kind of connection with the customer. Car buying is usually way out of the average person’s comfort zone. Once you’ve made a connection, keep stepping out of your comfort zone – this time, so they can feel at ease stepping out of theirs. Make it an unforgettable experience! Busy customers? Take the car to their work! Busy families? Take it to their home or the kid’s ballgame! Guess what happens then? Not only do they take mental ownership, but now their friends or coworkers are also wowed by the experience. Those are your next potential clients.

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

Having empathy for subprime customers is another opportunity to show you care. Life happens. Most people with bad credit once had good credit, and then life hit them hard. I have established relationships with customers with bad credit to see them buy from me 5 to 7 years later. Some I’ve tried to get into a car, couldn’t, and then they come back years later saying I was the only person who was kind and treated them like a human being. Become known for being the exception to the rule. Stay late for a customer that can’t be there before close. There is a mountain of things you can do outside the box. I’ve learned to live outside the box!

Lifelong Relationships In my career, I’ve had many different roles at dealerships. Although it’s been a while since I’ve been a sales consultant, people still think of me and reach out when they want a car. Those are the kinds of relationships I encourage sales consultants to pursue. Make sure you’re finding the best way to communicate with each individual customer and going out of your way to show all of your customers that they matter to you – even if it’s outside your comfort zone. Odds are, they’ll remember you the next time their customer journey leads to buying a car, and you’ll be the one they call!

MODERNDEALERSHIP

Convenience and the

Tips for R

stomer J u C e h t in s k c o l b d emoving Roa

ourney

by: Amy BANNOR

Marketing Director, Carver Toyota

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

When it comes to what consumers desire, “convenience” may not be the sexiest concept, but it is certainly one of the most powerful.

Convenience, according to Google, is defined as “the state of being able to proceed with something with little effort or difficulty.” Let’s illustrate this with fast food, for example. A recent report by the Centers for Disease Control and Prevention says that nearly one-third of American adults (85 million people plus) purchase fast food every day. The study indicates that price was not the determining factor as to why these numbers are so staggering; rather, it shows that more and more people are prioritizing time as their most valuable asset. This trend isn’t going anywhere. The demand for food convenience is growing each day, with restaurant chains rising to meet the demand. Why? Because the customer mindset is all about convenience. This information shows that convenience reigns in areas way beyond the dealership! Convenience means shopping for anything on Amazon, having groceries delivered to our doors, gassing up at massive “convenience” stores, sending emails instead of letters, having endless entertainment options at our fingertips – essentially, convenience is an important part of every aspect of our modern life. We all rely on it, we all understand it, we all benefit from it … so why do we not always deliver it at our dealerships? You might ask yourself, “How can my dealership capitalize on the current consumer buying habits?” The simple answer is this:

le c Make buying a vehic 36

MODERNDEALERSHIP

onvenient.

From your online visibility to the final steps involved in the sale, ensure that your processes are as convenient as possible for customers (even if it creates more work on your end). Your website and your social media are great places to start; this is where nearly all of your customers are spending time before physically visiting your dealership, so it’s crucial to be easily accessible for them online. This, however, is only part of the opportunity to earn their business – you must also be consistent and accurate in your communication with them. Are you confident with what happens when a customer reaches out to your dealership while shopping online? If you answered no, you are not alone.

Online Convenience We all know how critical it is to have a website in order to succeed with today’s customer. If you are not online, you are invisible to the majority of your customers. But it’s no longer enough to just “be online”; customers want information delivered instantly and accurately. Your website must be easy to navigate, transparent, and up-to-date (which equals convenience). Gone are the days of simply owning a domain or having a Facebook business page – you must know how to “work” them.

Effective customer communication includes understanding that the goal is still to get them to the dealership, but withholding information to “lure” them in is not as effective today. Old-school tactics will lose your customers’ trust and potentially the sale. Instead, train your teams to impress customers with quick and accurate responses, a genuine desire to help, and the knowledge to make the buying process convenient. The same goes for Facebook and other social media platforms, not just internet leads and your own website. Creating processes for your customers’ convenience is vital to the success of online interactions. Your entire team should know Are your sales mostly from data mining (tools like AutoAlert), repeat/referral customers, your service drive, internet appointments, great frontage with a lot of genuine walk-in traffic, phone calls, or somewhere else? Knowing this allows you to discuss plans for how to handle your customers in a way that’s most convenient for them. For example, you may want to appraise a trade first for those customers waiting for an oil change. You may want to talk potential payments with a data-mined customer prior to the test drive. These are just some ideas that may work for your dealership. The best way to make your unique processes effective is to know your customers, and to know what will make their experiences convenient for them.

The Customer Experience Today Is Convenience Create and then monitor your processes. If they don’t work, change them. Let your

and adhere to your digital processes, including timeframes for responses (which is first email, call, text, etc.), greetings for individual sources (social media, website leads, chat leads, etc.), and when to get another employee involved (numbers on trades, interest rates, etc.). To be effective these processes need to be communicated, consistent, and changed as often as needed. Does everyone in your sales department know how to handle a 3 a.m. Facebook lead on a new Toyota Camry? Ask them. You might be surprised!

In-Store Convenience With today’s shopper, in-store convenience is as essential as digital convenience is. Consistency, accuracy, transparency, and respect for time are all areas that make for a great buying experience from the current customer’s vantage point. Do your sales people know what to say when a customer comes in after shopping online? Do they know what to say if it is a new customer to your dealership? What about a customer who has bought many vehicles from you previously? The best way to look at your in-store processes is to know where your customers are coming in to your store from.

customers tell you how they want to be sold, and do your best to make it happen … from that first initial contact to the moment they drive away in a new vehicle. Modern customers are fun, exciting, educated, risk-taking, and looking for your dealership to be their next place to buy a vehicle.

DON’T DISAPPOINT TH

EM!

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

Q & A WITH

In just a few years, Gaudin Motor Company will celebrate 100 years of being in business. The feat is truly outstanding, especially considering that only 4 percent of businesses make it even 10 years. With a direct line back to the founding of the company in Escalon, Calif., in 1922 by his grandfather George Gaudin, Dealer Principal Gary Ackermanâ&#x20AC;&#x2122;s roots run deep in the business. Last month, we had the chance to ask him what itâ&#x20AC;&#x2122;s like being part of such an iconic company, what his trailblazing family taught him, and where he sees the industry going.

MODERNDEALERSHIP

YOUR ROOTS IN THE DEALERSHIP INDUSTRY RUN DEEP. WOULD YOU SHARE ONE OF YOUR FIRST MEMORIES OF BEING AT THE DEALERSHIP? I was almost literally born on the showroom floor of Gaudin Ford. My first real memory would be at the first Gaudin Ford in Las Vegas. It was on 5th Street (now known as the Strip) and Stewart. Across the street from the old City Hall. My dad used to take my sister and me down to watch the Helldorado Parade. In 1957, Ford launched the very first retractable hardtop model, called the Fairlane Skyliner. I have a pretty vivid memory of the top coming down and all the noise it made. I remember it because it scared me!

WHEN DID YOU KNOW THAT YOU WANTED TO BUILD ON YOUR FAMILY’S LEGACY AND WORK IN THE INDUSTRY? WHAT WAS YOUR FIRST DEALERSHIP JOB? My first job at a dealership was during the summer while I was in high school. I washed cars in the detail department, which was an open-air tin building with no airconditioning. That’s the way all the stores were in those days; the nicer ones had swamp coolers. It was hard work and long hours – a good way to learn. I worked various odd jobs, like new car get-ready and accessories installation. I never really gave much thought to a career until I graduated from college in 1974. When I graduated high school in 1970, the draft was still in effect and the War in Vietnam was still raging, so you either went to school or you visited Vietnam – not a difficult decision.

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

WHEN DID YOU JOIN YOUR FAMILY’S BUSINESS, AND WHAT DID YOU LEARN FROM YOUR EARLY EXPERIENCES? When I graduated college, I really had no clue what to do, but I knew I needed to support myself. Grandfather Gaudin was the true patriarch of our entire family, and he raised his two daughters, his two sons-in-law, and all the grandchildren to study and work hard with the goal of being able to support themselves and not rely on anyone else. Looking back, this was pretty progressive, as it was the ’50s and very few family leaders were teaching young ladies to plan this way. He would laugh at being referred to as a “feminist,” but that is what he taught us. So I am back to Vegas after college and told my dad that I wanted to try the car business. He smiled at me and said, “I think that is a great idea. Where do you intend to do that?” You can imagine my shock, coupled with some sadness. What I heard was that he didn’t want me, but that isn’t what he said at all. My grandfather had done the same to him when he married my mother; I had just never heard the story. He felt strongly that I couldn’t really learn the business being the boss’ kid. He was right. To this day it was the greatest gift he ever gave me. I ended up back in California working for a Ford store in the San Fernando Valley. I stayed there four years and learned a lot, from the proper way to treat guests, to getting fired and learning how to recover from mistakes! I returned to Las Vegas during the holidays in 1978 and have been here ever since.

HOW MANY YEARS DID YOU WORK WITH YOUR DAD THERE IN VEGAS? I had the honor and privilege of working with my father for 35 years. It is something I value and cherish, as it has become very rare in our culture. He and my grandfather always emphasized how important it was to serve both our customers and our community. I still preach that today in all three of our stores. This community has been home to three generations of our family, including my children, and we owe our success to them. We also feel, as the oldest dealer in Las Vegas, that is it our responsibility to help improve the city in any way we can. It is the only way we know how to approach our business and we are very comfortable with it.

MODERNDEALERSHIP

YOU HAVE BEEN IN THE BUSINESS NOW FOR OVER FOUR DECADES. HOW IS THE CUSTOMER JOURNEY CHANGING? I think the customer journey over the last four decades hasn’t changed much at all. The technology of our products has changed, the technology with which we communicate has changed, but the journey hasn’t really changed. Our customers need to buy cars and trucks for myriad reasons. Our job is to make that purchase experience as pleasant and stress-free as possible. That is why we focus on the word “serve” in all of our internal training. Our customers have more choices today than ever in the history of our business. All of our competitors have quality products, so it is our service that separates us. It is as true today as it was in 1922, when Grandfather Gaudin started selling Model T Fords.

WHAT ROLE DOES TECHNOLOGY PLAY IN SHAPING YOUR APPROACH TO SELLING CARS? There are two major technology shifts at work in our industry. One, the digital revolution has swept our culture and all businesses. Our customers no longer need us to provide the answers to all of their car questions. They can simply click and search. This is the biggest change since I have been in the business. The benefit to the consumer is obvious: Information, any information they want, is at their fingertips. While it is a huge benefit, it can also lead to false impressions and even erroneous information. It remains our responsibility to provide them total transparency and accurate information when they do contact us and want to compare notes. The digital technology actually helps this process, too, as it is far easier and less stressful for the customer to communicate all of their questions and fears before coming to the store. If handled professionally, this makes for much less time spent at the store going through details. We still want customers to drive the vehicle they are interested in to ensure that it will do everything they want it to and just feel right. No number of surveys or amount of data will answer those two questions. The danger in the digital world is that it’s literally pushing us farther away from our customers, making it more difficult to establish a real relationship with them. This relationship becomes even more important now as the buying process gets shorter, the quality of the vehicles gets better, and the number of required visits to our stores gets smaller. All of those are assets to our customers, until something goes wrong or changes with their needs. That is where the relationship is still king. We have always been and always will be a family store(s) and we will always approach relationships in that way. After all, who really wants to wake up and go out and meet a new car sales person tomorrow!

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

WHAT’S YOUR FAVORITE PART OF THE WORKING IN THE INDUSTRY? WHAT DO YOU SEE AS YOUR BIGGEST CHALLENGE? My favorite part of the business is the people, both our team members and our customers and guests. I just love the interaction and that it is different every day. I still love teaching and training our teams and seeing them finally “get” some of the old-school practices that certainly still apply today. Our little company will turn 100 years old in 3 ½ years and I will be thrilled to come to the office that day. Such a remarkable event in today’s world, and we are all excited for it to happen. I think the biggest challenge is the next technological revolution that is just starting. All electric vehicles and autonomous technology. When I picture a world where vehicles don’t have drivers, it often makes me think of my grandfather taking horses in on trade and having to teach his customers how to drive because many had never been in a motor vehicle before. The challenge, at least in my eyes, won’t be getting used to all electric or autonomous vehicles – rather it will come in the changes to the infrastructure necessary to support those changes. Makes me wonder why oil companies haven’t started experimenting with electric charging

MODERNDEALERSHIP

stations. Who will do all of this so that those who want to drive an all-electric vehicle will have access to charging as easily as they do to gas stations today? When an autonomous vehicle needs service, and they will, what time of day will that vehicle decide to come to a store and get it? 3 a.m.? It is a world that is changing very quickly and we all need to be prepared.

WHAT’S IT LIKE HAVING A BUSINESS AND LIFE IN VIBRANT, EXCITING VEGAS? I love Las Vegas, and I love our family history here and in California where my grandfather started. I can’t imagine living anywhere else, and I can’t imagine not helping our town grow bigger and better.

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

AUTOMOTIVE PROFESSIONALS WERE ASKED,

WHERE DO YOU BELIEVE THE CUSTOMER JOURNEY ENDS?

Tina Bowlan | Finance Director at Columbine Ford Hopefully never. Even if they never buy from us again I hope they always remember the ease and experience they had at the store. It is my goal to make the car buying experience fun and memorable one customer at a time.

Matt Jackson | Manages 4StatesNegotiator The journey never really ends; the relationships that are formed develop into lifelong customers with lifelong friendships. Manny Lopez | Sales Associate at Prescott Brothers Ford I always tell my customers, ‘Just cause I sold you today doesn't mean my job is done. I will be in contact with you a week from now, a month from now, 6 months from now and a year from today. I want you to know that I'm with you till you buy your next car’. The customers love that! Josh Obercian General Sales Manager at Norristown CDJR

Nars Buenaventura | Sales & Leasing Professional at Wagner Cadillac For me, the journey never ends…

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Michael Chorba II | Sales Professional at South County Dodge Chrysler Jeep It never ends. Follow up is key. Staying engaged with your customer base is what it's all about. Most people aren't buying a car, they are buying an experience. They want to be treated right and know that we care. If you don't care, how can you help? Most people you meet will buy more than one car. Make sure they are all from you. Keep yourself in the front of their minds. I send over 1000 Christmas cards every year. My customers know I care about them and that I want to be here to help with all their automotive needs.

Omandi Foody | Client Advisor at Orlando Dodge Chrysler Jeep Infinity.

Adam Cole | Automotive Sales Professional at Fletcher Toyota Never. Follow up once a month, every month, for the rest of their lives. 99% of customers will buy again. Why would you stop following up? After they buy a car itâ&#x20AC;&#x2122;s same day, next day, next week, every month for the rest of their life.

So, itâ&#x20AC;&#x2122;s unanimous! The customer journey never ends when the customer has a positive experience purchasing a vehicle and a relationship is formed with the dealer. This is still a relatively new concept in automotive (our responders are at the head of the class), but there are already tools that support dealers with follow up and making relevant touchpoints with their sold customers. One such company is AutoAlert. Check out how their Customer Experience Management (CXM) solutions have mastered making the customer journey a never-ending story.

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SOCIAL MEDIA & THE CUSTOMER JOURNEY ategies at AutoAlert by Joey Little, Director of Social Str

A recent Pew Research study shows that eight in 10 Americans are now shopping online and most of those (79 percent) use their phones to make purchases through the internet. Hereâ&#x20AC;&#x2122;s the zinger: A separate study from Statista concludes that 80 percent of the U.S. population report using social media. Do you see where Iâ&#x20AC;&#x2122;m going here? One could draw a direct correlation between the percentage of people who shop online and the percentage of people who use social media. Eighty percent of Americans shop online. Eighty percent of Americans use social media. Eighty percent of Americans use their phone to both shop and browse social media. Social media is often where the customer journey begins. (And it often begins before the customer realizes it.) 46

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THE OBSERVER

THE PROSPECT

The observer is passive. It happens all too often. I’m browsing my Twitter or Facebook feed and I see a very pointed ad. It’s seemingly random, but the advertisement hits home. It’s an ad for a product that I’ve discussed with my friends or it falls in line with my personal interests. It’s no accident. Each Like, Follow, tag, and Retweet is collected by data-mining sources and through computer magic and algorithms, it is determined that I am the target audience. You know what? They’re right. Through my passive Like or Follow, I’ve been showing my subconscious desire to make a purchase.

The prospect takes the first step away from passivity and takes the first intentional step on the customer journey. A prospect begins to research the product. They search hashtags related to the product, read reviews, and check user comments on Facebook pages. The prospect browses different retail sites to see what deals or coupons may be available. At this stage, they aren’t certain that they’ll make a purchase, but they’re making sure the product is right for them and they’re developing a short list of the brick and mortar or website they’ll use if they decide to click the “add to cart” button.

THE LEAD Social media is all about being social. It allows us to have a digital relationship with someone even if we’ve never stood face-to-face. Social media allows you to be friends with a celebrity influencer. We get to take a peek into their lifestyle. The lead starts to look for influencers from peer groups and celebrity spokespersons. We trust people more than we trust any corporation so if a friend or celebrity endorses a product, it carries much more weight than if you read a rave review directly from a company’s website. The lead looks to influencers to see if the product has worked for them and what the benefits are. Are there any pitfalls? Was the advertising misleading? Social media provides the most accessible way for the lead to take the next step into being a customer.

THE CUSTOMER

THE INFLUENCER

That’s it, right? A purchase has been made and the prospect has taken the journey into becoming a customer. But wait, the customer may look for support, or shop for add-ons and other products. It is here in the customer journey that one decides whether they made a good decision or a bad decision. As a customer uses the product, they will decide whether they like the product enough to buy it again or whether they will prospect for a new product. They may also take the first steps into becoming an influencer by adding reviews in discussion forums.

An influencer can have a positive or negative affect on your future customer base. It is now the goal of any retailer to provide such a great product and service that the customer becomes a positive influencer. A successful retailer will provide a product and service that the influencer will rave about on their social media pages. If a customer is satisfied with the product in hand, they will share positive feedback through hashtags, Facebook status updates, photographs, and check-ins. However, if the customer is dissatisfied, they will cast a shadow across their social media landscape in regard to your products and service. An influencer helps to determine whether the next prospect becomes your customer, or not.

The customer journey through social media is circular. If a product becomes a part of one’s lifestyle, customers will become the influencers who cast a net to gather other prospects. Once those prospects become customers, they may, themselves, become influencers. Each customer will remain a customer as long as they remain satisfied with the product; however, if the customer has a bad experience they will start prospecting and looking to other influencers. And the customer journey begins again. M O D E R N D E A L E R S H I P. C O M

IN TH BOX Amy E Boehm with

Marketing Director, KAR Auto Group

We caught up with Amy Boehm at the Las Vegas Mirage Hotel and Casino while she was representing KAR Auto Group at this year’s Digital Dealer Conference. She’s an expert in marketing and a huge college sports fan, and she commutes a scenic 45 minutes to spearhead her dealership’s marketing department located in the rural, yet eclectic, town of Decorah, Iowa. KAR Auto Group also has a rooftop in the more populated city of Prairie du Chien, Wisconsin. Amy gives us insight into the different approach she takes while marketing to each area and demographic.

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How many Digital Dealer Conferences have you attended?

What did you do before working in the car business? You went down a very traditional marketing path. How difficult was that to do? How did you find out about the marketing job at KAR Auto Group? In more rural areas the local newspaper is still a big thing so there’s still a market for newspaper ads, but what about digital marketing? Things like Facebook ads and Google search engine marketing.

In a whirlwind, three months after I started in automotive, I attended my first one. Since then, I’ve been to four in a row. I’m two years into my career in automotive, so technically I’m still a green pea, but I consider that to be for the best. I attend these conferences with no preconceived notions. I came looking for new vendors and to learn about all the new products that are available and all the processes that are in place that other people have. I left feeling overwhelmed, but super informed! Previously, I worked for a newspaper and had been in sales for 20 years. I worked at a small newspaper selling ads, and before that I worked at Yellowbook selling phonebook ads. It honestly wasn’t hard for me. Everyone outside of the industry thinks, “Oh, my gosh, it’d be the hardest thing to sell newspaper and phonebook ads over the phone to different people in different states.” But, it just wasn’t difficult for me. I felt as though I had all the right tools to approach the sale. I was actually selling newspaper ads to the dealership and they approached me because they needed someone to help them focus their marketing. They felt they couldn’t handle the marketing by themselves; it was all over the place. They thought of me and gave me a call and asked if I was interested. It’s really interesting because it’s really different between our Prairie du Chien, Wisconsin store and our Decorah store. Our Wisconsin store is very traditional. We have an online presence there, but it doesn’t get the same attention as it does in our Decorah store. The demographics are completely different between the stores: median income is different, age brackets are different, the industries people work in are different, education levels are different. We still do more digital marketing than traditional advertisement. We’ve noticed that Facebook Marketplace has really exploded, giving us tons of leads and helping us sell cars that are listed under $10,000. Also, my two kids, who are 12 and 15, really help to give me insight into how the automotive industry works in the digital realm. They’ve shown me that YouTube is a great platform that the younger generation, and really everyone, is using to research new products. A year ago, I thought video SEO was just a buzzword and I didn’t immediately buy into it. Now, I realize it’s very important and I have to incorporate it. M O D E R N D E A L E R S H I P. C O M

What is your favorite part of being a marketing director?

Have you found that management in the rural areas have given you push back about wanting to invest money into promoting YouTube videos or Facebook Marketplace until you show them the ROI?

What else do you have a passion for? What are some of the things someone should do as a first timer going to Digital Dealer or NADA?

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I spent a long time working with tons of businesses over one medium. It was always a dream of mine to work for one company while handling all the marketing. That’s my dream job. I’ve always wanted to do that. The other thing, and it equates to my sales history, is I am a relationship seller. I love the relationship I have with my vendors. It’s hard for me to connect with a vendor and the product if there isn’t a relationship being formed. So, for me it’s all about the relationships I build. Luckily, I feel like our dealership group is half and half, which leads to great conversations. Half is looking forward and is open to new ways to market. The other half prefers traditional ways to market. The difference of opinion leads to great conversations and debates. And honestly, I respect the other opinion. I want someone to debate with who will try to change my opinion.

My kids. I’m a foodie so I get really excited about going out to eat at new places. I love a good debate and I love college sports. I REALLY get into sports. We go to a lot of games. I love college basketball, I’d love to have Iowa State season tickets. So, if anyone has the hook up on that … The first thing is you should get involved in the online forums. Get to know the key players in automotive. Spend a lot of time reading through comments and feeds to get an idea of what other people have to say. When you find the key players, look up their Facebook pages to find out what they’re about and who they’re friends with. You’re going to learn so much from them and then reach out to them. Ask them questions. So much about attending these conferences is about building relationships. It’s important to network. I’ve also recently come to the realization that it’s important to stay in your own lane. I have a passion for sales so it’s really easy for me to get sucked into sales, but the truth of the matter is that’s not my job. My job is marketing so I need to attend sessions on marketing. Also, plan ahead. Read what the sessions are about and go into it having an idea of two or three in each timeslot that you want to go to. Then ask other people what sessions they’re going to, ask if they know the presenters, and do your homework on them. And then get as much out of it as you can.

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