2016
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WINNING FORMULA BLENDING TRADITION WITH TECHNOLOGY TO GROW SALES BY FOUR THOUSAND UNITS leadership solutions
28 TimByrd WHO IS GETTING YOUR VOTE FOR PRESIDENT? 30 DalePollak THREE WAYS TO POWER THROUGH THE NEW CAR SALES PLATEAU 48 JodyDeVere WHO ARE THE MILLENNIALS, AND JUST WHAT IS GOING ON?
sales & training solutions
10 SusanGivens TENACITY 16 DennisMcGinn HOW TO INSTITUTE TIME-TO-MARKET METRICS TO INCREASE INVENTORY TURNS 38 BillWittenmyer EVOLUTION
marketing solutions
Brian Ankney, Account Manager brian@autosuccessonline.com
Hannah Philpott, Media Director hannah@autosuccessonline.com
44 JoeyLittle SOCIAL TRENDS AND TOOLS TO FOCUS ON IN AUTOMOTIVE FOR 2016 46 ChrisKelly KEEPING YOUR WEBSITE FRESH AND RELEVANT TO KEEP YOUR CUSTOMERS 50 EdLouis THE MOBILE RESULTS ARE IN 54 DanielSchutzman HOW FALSIFIED ONLINE REVIEWS ARE HURTING YOUR BUSINESS 56 PeterMartin MAKING VIDEO WORK FOR YOUR DEALERSHIP WEBSITE
Susie Horne, Account Manager John Warner, Sales-Improvement Strategist shorne@autosuccessonline.com jwarner@autosuccessonline.com
12 An Interview with PhilAime CABLE’S ROLE IN YOUR MARKETING STRATEGY 20 OwenMoon MOBILE APPS AND GPS MAKE A WINNING COMBINATION 32 ToddKatcher THERE IS A LOT TO BE WRITTEN ON VIDEO WALLS 34 JeremyAnspach HOW DEALERS CAN CATER TO MILLENNIAL PURCHASING HABITS, PART TWO
Dave Davis, Editor & Creative Strategist ddavis@autosuccessonline.com
HOW TO BUILD LOYALTY AND KEEP CUSTOMERS COMING BACK FOR YEARS
JordanBentley
FIXING A DEALERSHIP’S CULTURE STARTS BY IDENTIFYING THE ROADBLOCKS SubiGhosh
COMMUNICATING WITH CUSTOMERS: Evolution and Connection, PART ONE DealerPanel
Thomas Williams, Creative Director design@autosuccessonline.com
WELCOME TO THE BIG SHOW: Appointments: Set, Show, Now What?
58 DannyBenites
ADAPTING HIRING PRACTICES TO ATTRACT FEMALE CANDIDATES
18 AaronHowerton 24 AdamRobinson
THE NEXT 10 YEARS
AutoSuccess Magazine is published monthly at 2300 Hurstbourne Village Dr, Suite 1200 Louisville, KY 40299; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or info@autosuccessonline.com. Subscription rate is $69 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other magazine to which this magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 2300 Hurstbourne Village Dr, Suite 1200 Louisville, KY 40299.
Susan Givens, Publisher sgivens1@autosuccessonline.com
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TENACITY
“Many of life’s failures are people who did not realize how close they were to success when they gave up.” – Thomas Edison One of the main differences between those who fail and those who succeed — and, beyond that, those who excel — is tenacity. A sales career is filled with those moments when people say “no.” Most salespeople, honestly, will hear “no” far more than they’ll ever hear “yes.” And that’s okay; it’s part of the game. Often, however, when considering a big transaction, the potential customer who says “no” means “not yet.” The difference between success and failure in sales is learning to hear — and react to — what the customer is really saying. Those who keep going, who don’t stop at the first obstacle, are the ones who’ll earn the “yes.”
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10 autosuccessonline.com/podcast
• “We’re just looking.” — If a customer tells you they’re just looking, ask yourself what it is they’re looking for. People in this day and age don’t come to a dealership if they’re “just looking.” Remove the “just”; they’re looking. Help them by providing them with the information they need, not only about the car, but about your willingness and ability to work with them. They might not be ready to pull the trigger on the deal at that moment, but make sure that, when they do, you are the person who they’ll come to when it’s time. • “I don’t like giving out my number.” — Some people guard their phone numbers for dear life. They might not like getting interrupted. They might not feel comfortable speaking with a salesperson over the phone. They might want to control the interaction by picking the time and method used to communicate with you. That’s fine. That’s great, actually. Find out what works best for them, and use that. Some people respond far better to email, while others would much rather you text them with information. Offer to meet them with information in the way they feel most comfortable. Email. Text. Skype. Phone. Everyone is different; make sure your approach takes their needs into account. • “You remembered!” — How well do you know the customer? What are you going to talk about if you’re lucky enough to reconnect with them? Take notes — mental, then physical — about the customer. What’s their family situation? What are their preferences? What makes their situation unique? Ask questions, and then separate yourself from the pack by actually listening. Maybe you don’t have the exact right option for them at the moment. Once you know what they’re looking for, go look for it. The only way you can make the perfect match is if you know what the customer wants. Once you find a solution that will make them happy, let them know, via the communication channel they prefer — which you know because you asked them — and you’ll stand out from the sea of faceless salespeople. They’ll be flattered that you kept thinking of them, and kept working for them. “Yes” has to be earned; go that extra mile to earn it.
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An Interview with PhilAime
senior director of national automotive sales and motorsports for Spectrum Reach 866.429.6850 \ paime@autosuccessonline.com
CABLE’S ROLE IN YOUR MARKETING STRATEGY
While new technologies are constantly vying for the consumer’s attention, some avenues of marketing are still as relevant as ever. AutoSuccess recently sat down with Phil Aime, the senior director of national automotive sales and motorsports for Spectrum Reach, to discuss cable’s role in the changing media landscape. AutoSuccess: Describe the place of cable currently in dealerships’ marketing efforts, and how it’s staying relevant in the evolving marketplace. Phil Aime: Television is still the largest
medium of advertising — the average American watches almost three hours of TV per day — and is used by dealers in their marketing mix. They couple that with a larger online presence to target their customers and to provide immediate information about the products their customers want. Cable can stay current by evolving online with its digital platform. AS: Describe what cable advertising brings to the table that other forms of advertising do not for the auto industry. PA: Cable has crossed the threshold on
advertising with a multiple-screen approach. Today’s auto buyer is a multi-screen consumer, watching TV with either a laptop or mobile device with them. Cable has the ability to deliver a video message on either or both screens simultaneously using programmatic advertising. Programmatic advertising is the efficient placement of ads specific to a device — TV, computer or mobile device — based upon that user’s viewing and searching habits.
AS: What might surprise dealers about cable when deciding on how to allocate their marketing budget? PA: For the first time, digital has surpassed the
20-percent mark of total advertising revenue globally, and TV still commands the lion’s share of advertising budgets. What cable companies can offer that “digital only” companies can’t is a multi-screen strategy. This combines a unilaterally branded local TV and online video display campaign targeted specifically to users within a desired demographic, and is customized to each user within the household. “Digital only” companies cannot access the power of TV, which still holds almost 50 percent of the advertising medium nationally.
AS: What are some recent changes in cable industry that can benefit dealers? PA: Through the use of large data sets, we
know more about the customer than we ever did before. When you pair that with the introduction of the set-top box data that is coming later this year, that will be a game changer. Delivery of online campaigns will now be more precise than ever before with a development of a robust digital platform.
AS: Describe how cable in particular can benefit dealers who are looking to gain market share? To advertise sales and specials? For branding? To augment other media efforts? PA: Concentrating and dominating the primary
market area for a dealer with frequency video equals greater market share for the dealer. Cable can geo-target TV and online advertising through its digital products for best engagement results and conversions for auto dealers. We know what the customer drives, what they watch and when they are watching it.
AS: What are some of the marketing products that cable can provide? PA: Cable can provide targeted TV advertising
across many channels and programs through digital products such as pre-roll video, display advertising, paid search, vehicle inventory marketing, VOD, business directory listings, video content marketing and lead generation.
AS: Describe a typical dealership marketing plan that includes digital products from cable. PA: Television and digital should be combined
with targeted pre-roll and display campaigns that run simultaneously. This way, when the television programming is on, it shows up on the Internet devices in the household at same time. In addition, targeting by using auto buyer data is important, as not to waste ads on households who are not in-market shoppers.
TM
12 read, listen, watch, share, succeed.
AS: How do tools provided by cable providers aid a consumer who is in the market for a vehicle? How does it make their search easier, and make a particular dealership more enticing? PA: With a combination of both television
and pre-roll, auto buyers can more easily find their local dealers. Buyers can review current incentives and special offers, as well as educate themselves on makes, models, vehicle features and special financing offered all before setting foot on the dealer’s lot. In addition, by using both TV and online together, it creates a higher lift in dealership brand recall for consumers when their vehicle ownership needs arise.
AS: Where do you see the cable industry going in five years when it comes to dealership marketing? PA: I see cable growing in three ways: 1. Providing set-top box data will be huge.
Media plans will have no waste, as information on the consumer’s viewing habits will be available. 2. Synergistic campaigns are possible that use online promotions and event marketing. 3. Cable can provide ad campaigns that specifically target Millennials. AS: What ideas would you like to leave readers with when it comes to cable marketing opportunities? PA: The new world of video, involving sight
and sound, delivers emotionally engaging brand stories which are the old gold standard in the advertising world. But, as consumers embrace new ways of watching video content, advertisers can’t rely on old planning approaches to deliver the reach and frequency they once used with TV. This is even truer now that video is fed from limitations of broadcast and cable distribution. In the 21st century, all advertisers need to learn how to use digital video to achieve their marketing and branding objectives. Combined with the advent of programmatic buying, advertisers need new technology tools to help plan, buy, execute and measure video campaigns across the entire spectrum of video content and devices. Tools are now available to solve this issue for dealers and to reach auto customers in every market.
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FEATURE SOLUTION
CARBONE AUTO GROUP’S
WINNING FORMULA BLENDING TRADITION WITH TECHNOLOGY TO GROW SALES BY FOUR THOUSAND UNITS
At the Carbone Auto Group, located in New York State, family is as important today as it was 85 years ago, and it will be for generations to come. Alex Carbone, director of variable operations for the group, and the third generation in the family business, treats his team — both his relatives and coworkers — like family. “I don’t ask anybody to do something that I wouldn’t do myself,” he said. “We jump in and help them to succeed. They will give 100 percent because they see us doing it next to them.”
There is a culture of joy in the auto group where everyone is constantly performing at their best, and it’s likely the reason the Carbone Auto Group has been named one the best dealerships to work for by Automotive News for the last three consecutive years. Thanks to the leadership’s vision for the business model — and a lot of hard work and perseverance — Carbone Auto Group has also made the WardsAuto Megadealer 100 list for the past six years. Not only is team satisfaction high, but those achievements continue to demonstrate a better bottom line. In 2015, they grew total new sales by 901 units and total used sales by 1,354. This was a record year for them, and they see even better sales in the future. In 2016, they are forecasting an increase
of sales by 4,000 units, which translates into 1,000 more new and 3,000 more used units. These numbers don’t just happen. The group has made plans to accomplish this by leveraging their family culture, maintaining their dedication to process and utilizing an extensive book of strategies they developed with their marketing partner, Team Velocity. GETTING STARTED Alex Carbone — along with partners Joe Carbone and Enessa Carbone — had a vision for transitioning the group model from their “individual operator,” where general managers typically managed each store individually, into a “corporate” model, where the entire group worked together to dominate the market. This was a massive organizational shift which required a new outlook and perspective. Each week, the managers from each department in the group’s dealerships come together with corporate leadership to share their numbers, forecasts, goals, issues, concerns and anything else important for their department or the group as a whole. This transparency makes them vulnerable to each other yet fosters a connection that leads to department heads sharing ideas and working together to achieve the greater auto group goals. Carbone dealership works like a family. Department heads are invested in each other’s successes, and both share and implement ideas from other departments. They’ve found that there’s a very small distance between vulnerability and victory. HOW THEY DID IT To create a corporate model similar to the model Carbone Group produces, the hiring process is critical in all 14 dealerships. A customer needs to have the same experience at the group’s Chevrolet store as he or she would at the Honda store, and the team members are responsible to make sure that happens. This is achieved through process.
Each process at every dealership is identical — from the road to the sale to the menu in finance to the walk around in the service drive. The experience for the customer is designed to be the same — and meet the same high standards — in every dealership. The Carbone Group not only uses the same processes and measurements within the dealerships, but also uses the same vendor partners and F&I products in all the dealerships. The group has found that using the corporate model presents a multitude of advantages over each dealership striking out on their own: First, and perhaps most importantly, • there is one “Carbone Culture” throughout the entire dealership. They are able to identify and fix operational problems quickly, since the road to the sale and the reporting processes are the same in each store. he Carbone Group can move team • T members from one dealership to another with little adjustment required. Employees in the Carbone Auto Group don’t have to leave the company in order to have advancement opportunities; which are abundant in the 14 store automotive group and, since the processes are the same, employees don’t have to learn new systems to get up and running quickly. • T he Carbone Group is also able to move used car inventory around to the places they need to be. When accepting an offbrand trade-in, for example, the vehicle can be moved to the dealership best able to take advantage of that make and model. Also, if customers are looking for a specific vehicle, the opportunity to satisfy them immediately is greatly enhanced.
PARTNERS Team Velocity has been the top marketing partner to the Carbone Group. To take their corporate model to the next level, the company helped organize the dealerships’ marketing platform. The Carbone Group is now able to see what is happening across all media channels from one single dashboard. The upgrade program that Team Velocity has created helps to reduce costs and make each transaction a higher conversion. The dealerships are now able to exclusively target in-market shoppers to reduce redundant vendors because the marketing is now generated from one single platform, and offers a consistent message across all marketing channels. To remain consistent, emails look the same as direct mail, display ads, social media and so on. This helps to brand the group and create a message that remains consistent throughout the 14 dealerships. This marketing model perfectly complements the corporate model instilled within the group. Because all information is under one single dashboard, the teams are able to work together in marketing, sales and service. Through the marketing department, the team knows instantly when a customer within each store’s market is available for an upgrade to a new vehicle with a better payment. There is a dedicated team to help the customer upgrade right from the service lane. Also, in each showroom, there are “upgrade centers” in which the customer can upgrade their car as easily as they would upgrade their cell phone. The auto group’s branded marketing message has made customers aware that they can go into any of the 14 dealerships and use the upgrade program that Team Velocity created for them. This was accomplished because one vendor does all the marketing, reporting, training and support for the Carbone Group. As a result of the Carbone Culture and their marketing efforts, the group’s stores are selling more new cars than ever. The service lanes are making more ROs on trade-ins. The used car departments are able to source higher-quality vehicles for lower costs. All of this inter-departmental cooperation and process unification means a bright future for the group. “Everything digital has doubled,” Alex Carbone said.
INTO THE FUTURE Carbone Group has found their winning formula. That formula has produced a record year in 2015, and has the group on track to increase sales by 4,000 units in 2016. This could not have been accomplished without the right partners, which includes the group’s team members and family, Team Velocity, and the group’s dedicated customers. The Carbone Group is now able to deliver consistent branding and messaging and see what is happening across all targeted media channels from one single dashboard.
To learn more about Carbone Auto Group and strategies outlined in this article, email: successstories@autosuccessonline.com.
ls leadership solution
DennisMcGinn
founder & CEO of Rapid Recon \ 866.268.3582 \ dmcginn@autosuccessonline.com
HOW TO INSTITUTE TIMETO-MARKET METRICS TO INCREASE INVENTORY TURNS
GMs and their used car managers understand used car inventory fundamentals by vehicle aging and turn metrics. Both are important measurements to understand and practice consistently. However, a third fundamental, known as time-to-market, is just as necessary to understand. If you want to increase inventory turn significantly, this metric must be managed to improve workflow through reconditioning. How you manage time-to-market, which has a direct bearing on an opportunity cost called holding costs, directly adds to or subtracts gross sale margin. Time-to-market describes the number of days required to get a trade-in or auction vehicle ready for retail, usually meaning frontline readiness. Time-to-market is integral to inventory turn. To maximize used car gross, reduce the first and increase the second. Instituting a time-to-market culture can only be accomplished through the general manager, as part of his or her business strategy. Our work improving reconditioning results with hundreds of dealerships of all sizes convinces us of this truth, as these GMs have made it their business to push for better recon and inventory turn results. They are holding staff accountable while empowering them with mobile tools, text notifications and reports to meet those expectations. Time-to-Market Defined
Time-to-market is a reconditioning metric. It measures the time associated with onboarding a trade-in, private purchase or auction vehicle into the reconditioning process to service and detail it for sale. Where time-to-market is part of a data-driven inventory management process, three goals can be met: • First, trade-ins and auction vehicles are readied for retail in fewer days. • Second, fewer days in reconditioning means more eyeballs on cars during the magical 30-day retail window. • Third, time-to-market can be reduced by 2.5 days, which is equivalent to one additional inventory turn. Let’s assume here that the used car manager is doing a good job of inventory selection and market pricing. The vehicles in inventory on the physical lot appeal to the dealership’s market and are priced correctly for that market. Both inventory selection and price should promote a retail sale within 30 days — the ideal. Best practices suggest that vehicles not retailed within the first 30 days (certainly within 45 days) should be re-priced as often as necessary to find a retail buyer before 60 days, when a wholesale loss becomes imminent. With these inventory fundamentals reviewed, let’s turn back to explore how time-to-market influences inventory turn and, by association, used car gross. Increase Turn by Two
Getting vehicles’ frontline ready just 2.5 days sooner equals one additional inventory turn. Dealers who improve time-to-market metrics by using reconditioning workflow software are shaving from five to seven days from their traditional reconditioning cycle. How might a two-tothree turn increase improve your used car profitability? By adapting a few new practices into your reconditioning process, a typical 10-day time-tomarket cycle can be reduced to five days — and inventory turn increased by two.
16 autosuccessonline.com
Unfortunately, many general managers are too swamped by other business necessities to focus on recon as they might. Many of these dealerships’ reconditioning cycles are even less efficient than the average, and they often run up into the 12- to 15-day range. Any time-to-market cycle exceeding five days pulls down inventory efficiency across several costly metrics. The Numbers Talk
A used car department putting 100 vehicles on the line a month and also retailing 100 a month operates at a 12-turn rate. Assume that your average reconditioning timeto-market is 10 days. Improve that rate by five days and your operation gains two turns, or a 14-turn rate. Working from a conservative number of $1,500 gross front and back per unit sold and increasing turns by two means you’ll sell twice the product, for an additional $300,000 per year, or $25,000 in added profit per month. Time-to-market also determines your holding costs, which erode sale margins. Managers who recognize how holding costs accumulate and erode gross margin will pursue improvements in time-to-market, inventory pricing and turn strategy seriously. Holding costs represent each vehicle’s share of floorplan and other costs. NCM Associates tells us the average daily holding cost per vehicle is $32 until sold. Looking just at reconditioning’s influence on time-to-market, a 10-day recon cycle means $320 in holding costs per unit times your monthly reconditioning volume. Reduce time-to-market to five days and holding costs drop in half, meaning more gross flows to your bottom line on every sale. These inventory management factors affect both your cost and profit picture. When you can move cars to the line faster, you also manage your profitability by selling the same number of cars with a smaller inventory in a soft market, or selling more cars in a strengthening market. You can control the results in varying market conditions.
leadership solution
ls
AaronHowerton
director of client services for Interactive 360 \ 866.383.7481 \ ahowerton@autosuccessonline.com
THE NEXT 10 YEARS
The automotive industry is ripe for change in significant ways in the next 10 years. It actually started long ago, in 1999, when a company called Salesforce started the “cloud revolution” and declared “the end of software” as their tagline. This month, I’ll share my predictions about what’s coming to help you be better prepared for the change. Instead of freebies, I invite your feedback on these ideas by emailing me with your thoughts. 1. Software as a Service (SaaS) will start to displace locally installed solutions for automotive dealers. This is already happening on a small
scale, but the future of technology is cloud-based access from anywhere you have a connection. Vendors still plugging away at locally installed software packages will see their revenues slowly decline and disappear. 2. Mobile will be a game changer. It’s already
RIAL. MATE H 12 TED MARC ER: DA HOME MAST ER IN-
had a huge impact, with as much as 50 percent of the U.S. population claiming mobile technology as their primary method of accessing online content. The next wave of change is within the dealership itself and mobile is optimized to get work done and sell more cars. If you haven’t considered how mobile technology will impact your dealership, you’ve got time. But only a little.
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• Increased Results by 3-7% • Qualifies for Letter Rate We • Fits in All Mailboxes are the st to offer 1 ct to •Interactive Design Dire Dealers
This conversation is almost entirely over outside the automotive industry and here’s the good news — the consumer won. Vendors may lay claim to the use or analytics of your consumer data, but the days of having to pay outrageous fees for your data at the end of a 10-year contract are coming to a close. Any company holding your data hostage will change or be made obsolete by more client-friendly services.
4. Consolidation will streamline services
and providers. Acquisition will continue to drive product offerings and will start to streamline dealer’s operations as those offering become more integrated. It will be bumpy as first, but the payoff could be substantial for dealerships that embrace all of what any one group has to offer.
5. Vendor Prices will drop — substantially. All
of these changes will contribute to lowering prices for services across the board. SaaS enables competition and massive scalability. Owning your data means fewer hostage scenarios for pricing and contracts. Mobile will streamline development toward crossplatform consistency, reducing development costs, and consolidation will bring the advent of bundled services and discount pricing.
6. Sales will be consumer driven and
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18 read, listen, watch, share, succeed.
completely transparent. This is a big one, and probably the most controversial. The role of the sales rep will still be important, but it will change. Along with that will come the need for increased transparency in the sales process that will mitigate the need for some of the pricing tools used today (think holdbacks and packs here).
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OwenMoon
director of automotive digital solutions for CarClick360.com \ 866.446.7143 \ omoon@autosuccessonline.com
MOBILE APPS AND GPS MAKE A WINNING COMBINATION
Today’s World Has Gone Mobile
It’s no secret — the world has gone mobile. Today, nearly two-thirds of all Americans are now smartphone owners and, for many, these devices are a key entry point to the online world. Mobile apps are a great way for consumers to engage online, giving them a better mobile Internet experience. Think about the last time you checked Facebook on your phone. Did you go to the Google browser, or did you use the Facebook app you were able to download for free? Mobile Addiction Is On The Rise
According to the Mobile App Engagement Index, almost 87 percent of all consumer mobile Internet usage today is being done through mobile apps. A recent USA Today report found that the average person uses mobile apps 16 times per day, while an estimated 280 million people are considered “mobile addicts,” using mobile apps more than 60 times per day. Nielsen says the time users spend on mobile apps has skyrocketed to about 30 hours per month, while using an estimated 27 different apps. What makes this attractive to advertisers is that most mobile apps allow businesses to advertise banner ads, getting their custom message in front of this growing audience. Mobile Apps Are Today’s Newspaper
For years, the newspaper was the most popular resource for people to get both local and national information about news, sports, weather, financial and lifestyle interests. With such huge readership, advertising in the local newspaper became both attractive and effective for many local and national companies. Over the past decade, however, newspaper readership has seen a rapid decline as people have started getting their information online. Now, with the rise in mobile usage, more people are engaging with mobile apps like Accuweather, FoxNews, CNN, ESPN, WebMD, etc. to consume this same information. It’s more important than ever to look at mobile apps as a viable marketing solution to reach potential customers.
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Developing An Effective App Strategy
In the last few years, big companies like Southwest Airlines, Qdoba and others have used mobile apps to conquest potential customers. The challenge for most retail businesses is being able to effectively target consumers who are in the market to buy their products. With the rise in GPS and WiFi capabilities, dealerships can now target serious car buyers where they shop, live, work and play. While most dealership ad dollars are being spent during the consideration and stimulus stages, solutions are now available to help dealerships reach and influence customers in their Final Buying Moment. Eric Schmidt, former CEO and current executive chairman of Google, has said, “If you don’t have a mobile strategy, you don’t have a future strategy!” What is your current mobile strategy? Have you looked at mobile apps as an opportunity? The challenge for businesses now is effectively reaching customers who are always on the go. The audience has moved. Have you moved your marketing strategy to reach them?
On March 1, 2016, the world of wholesale buying will change forever as vAuto introduces Stockwave. Find out more at stockwave.com
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ls leadership solution
AdamRobinson
chief hireologist for Hireology \ 866.455.1671 \ arobinson@autosuccessonline.com
ADAPTING HIRING PRACTICES TO ATTRACT FEMALE CANDIDATES
When Mary Barra took the helm of General Motors in 2013, it marked notable progress toward the inclusion of women within the automotive industry. Although this was a momentous accomplishment, the industry still has a long way to go in terms of recruiting, hiring and retaining female employees. It’s a refrain that has become louder over the past few years — auto dealerships need more diversity in their workforce. If dealerships are going to gain a competitive advantage, they must make a concerted effort to ensure that more diverse ideas are represented in positions at all levels of the company. The retail automotive industry confronts an entrenched workplace culture that took decades to build and now must evolve. According to a 2015 NADA Dealership Workforce Study, only 18.5 percent of employees at a new-car dealership are women, and turnover among women is hovering around 40 percent. Dealers must reverse the perception that women can’t make it to the top in this business, and make fundamental changes in order to provide all employees a positive and inclusive workplace environment. Why Diversity in Hiring Matters
THE
DEALER PANEL
dp
Is your dealership doing its part to develop a more inclusive leadership team that will foster diversity from the top down? The benefits are many. Not only will your dealership attract a more diverse pool of applicants, but you will be able to sell more effectively to a broader pool of consumers. A 2014 study by Frost & Sullivan shows that women hold 80 percent of influence in all car-buying decisions. The showroom floor should reflect your customer base and convey to the customer that their concerns and questions will be taken seriously. Furthermore, a more diverse staff will inform existing staff how to effectively communicate and build relationships with the buying decision makers. Diversity means adapting the current culture within the dealership and training managers to focus on creating a more inclusive environment, where female voices will be heard.
DealerElite and AutoSuccess Present:
Our Dealer Panel gives voice to dealers, GMs and sales professionals to share their experiences — sales techniques, new technologies and ways to motivate staff — giving our readers the benefit of their experiences. See page 26 for more...
“For auto dealerships looking to employ a more diverse workforce, the biggest obstacle they face is adapting their hiring practices to entice more women to apply. Hiring managers should be focusing on recruiting candidates who are the most qualified candidate for that position.” How to Get Women to Apply
For auto dealerships looking to employ a more diverse workforce, the biggest obstacle they face is adapting their hiring practices to entice more women to apply. Hiring managers should be focusing on recruiting candidates who are the most qualified candidate for that position. Consider your branding as an employer and evaluate how your company is viewed by potential candidates. Oftentimes, the words and phrasing used in a job posting description can be the first deterrent for women. Without realizing it, the job description may be screaming “boys club.” For example, avoid using words like “rock-star,” “ninja,” “assertive,” “aggressive,” etc. Take time to include descriptors for the position that will appeal to women. Female candidates desire work environments that encourage collaboration, transparency and support from upper-level managers who are focused on developing their skills. But, the most effective method to encourage women to apply for open positions is to show them that your workforce is already diverse, as evidenced in a recent study by Yale and the Albert Einstein College of Medicine on gender imbalances in male-dominated fields. This means having women present at job fairs and employing company messaging that is consistent with your hiring goals. Creating Processes to Drive Retention
Auto dealerships are already grappling with high turnover rates of 40 percent or more. Today’s applicant isn’t looking to be a part of the “boys club.” Instead, the next generation of employees consider company culture, opportunities for advancement and potential for work/life balance when applying for a job. Women are looking for similar attributes within a prospective employer. Auto dealers should start by looking at their internal processes for retention and promotion. A diverse leadership conveys to potential candidates that their contributions will be valued. Furthermore, when new hires see a culture of advancement, they are more likely to remain with the company long term. More fundamentally, having an effective onboarding process will lead to less turnover among your recent hires. New employees must be given direction from the beginning, and existing employees must work together with new hires to create a culture of collaboration. In conclusion, a more diverse workforce will institute new change that will ultimately benefit the industry. Increasingly, women’s voices are starting to be heard within the auto sales industry and those voices are crying out for more women to join them. With the right attention placed on hiring practices, those few voices will continue to grow and so, too, will your dealership.
cqb
DavidMartin
president \ 800.996.1952\ davidm@e-pulsetrak.com
A NEW WAY TO BUY YOUR CAR ONLINE
ADVERTORIAL
More and more car buyers
want to shop and buy their vehicles online. And why wouldn’t they? They buy everything else online. A new Forrester Research report forecasts that online sales will be up 45% in 2016. Dealers who provide this option will have a distinct competitive advantage. Since the 90’s, car buyers have demanded that more and more information be available on dealer websites. In the past, consumers couldn’t get all the information they wanted on dealer web sites, so they sought out information on 3rd party sites. This opened the door to the advent of the 3rd party lead generation business model, which is to provide sought after vehicle information and then sell the leads generated to multiple car dealers.
Dealerships using Cars Quick Buy are able to deliver more vehicles without adding more staff. Customers are al-
Consumers are ready and eager to buy or lease vehicles from the comfort and convenience of their own home or of�ice by using their laptop, tablet, or smart phone. The Cars Quick Buy web site walks consumers through a streamlined online research/shopping/ purchasing process that includes a trade-in evaluation option, application for �inancing, and offers car buyers the ability to complete all the necessary purchase documents. Once they complete the step-by-step online process, all they have to do is schedule a convenient time to come in and sign the paperwork, con�irm trade-in evaluation to complete the deal, and they are off in their new vehicle in no time. It’s just that easy!
ready past the sales and desking phases of the road to the sale, before they step on the lot. All that is needed is paperwork signing and vehicle delivery. This reduces staff requirements, as well as the costs of sales and desking.
included and promoted through the all new Cars Quick Buy national, online marketplace web site.
When a car shopper uses Cars Quick Buy, all available and applicable rebates and incentives are accurately and automatically calculated into the deal. The end result is a faster and easier car buying experience. Cars Quick Buy reduces the in-dealership time down to approximately 30 minutes, allowing existing F & I personnel to handle more deals.
The Cars Quick Buy platform integrates right into your current web site and converts your passive, informational web site into an e-commerce, transaction focused web site. Additionally, your inventory will be
The Cars Quick Buy online process allows you to provide full support to consumers through available text messaging, online concierge chat, email, click to call, and a direct telephone line to a representative. The Cars Quick Buy online process provides the ability for the dealer to handle these high quality leads, with the highest quality trained personnel. The web site’s backend dashboard allows the dealer to see what stage each prospect is in during the buying process (i.e. account created, trade-in entered, buy/lease comparison reviewed, credit application entered to delivery scheduled). Dealership personnel knows when a consumer is on the site and exactly what page they are viewing, allowing the dealer to be proactive, if they choose, to reach out to the consumer to see if there are any questions.
With Cars Quick Buy, the customer relationship starts earlier in the process than by any means currently available. Customers spend less than an hour at the dealership, rather than all day when they buy a car. This results in an increase in CSI. The system works well with BDCs, call centers, sales teams, Internet personnel and/or any other dealership process or existing culture.
Today’s car buyers live on their devices. Cars Quick Buy is multi-device compatible and is optimized for desktop, laptop, tablet and smart phone. For consumers, getting started is easy with automatic account set up and noti�ication. If the user has to pause the process, they can restart or even leave and return at another time that’s more convenient for them, without losing all the work they have already completed.
Consumers have wanted to buy their vehicles online for years. Now they can! The only question is, will they be buying them from you? Call today for a quick demonstration on how you can dominate your market online and sell more cars now!
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dp Chris Saraceno Andrew DiFeo
one COMMUNICATING
the DealerPanel
WITH CUSTOMERS: Evolution and Connection
In today’s always-connected world, the issue of communication with both current and prospective consumers is a constantly shifting landscape. New technologies seem to be constantly vying for attention, and the consumer now expects faster answers and more transparency than ever before. For the next few installments of our Dealer Panel, we’re exploring the changing face of communicating with customers, from the perspectives of how the methods have changed, how consumer expectations have evolved and how some things never go out of style. AutoSuccess: How has communicating with customers evolved since you’ve been in the industry? Chris Saraceno, VP and Partner of Kelly Automotive Group:
Tom Hawkins
part
When I started in 1984, the only way to communicate with a customer was by landline, by your home phone or by letter. Those were the only ways to communicate other than face to face. But today, it really is never ending. Years ago, I used to give people my personal home number, before cellphones. I used to have people think I was crazy when I got into the business. But if I really care, and I want to take care of people, why would I not do that? If there is an issue, why would I not want them calling me? Today, I still have people ask me, “Why do you give out your personal cell number?” I do it because I find that it’s the best way to take care of people when they know that, if there’s an issue, they can actually pick up the phone and call me. If I see a bad review on Facebook, I post my name and title and say, “Here’s my cellphone number. Call me and let’s meet in person.” I think there’s a huge benefit to have the opportunity to make sure customers are taken care of more than ever because of how accessible we have made ourselves. I look at it as unacceptable, in today’s world, for a leader of a store not to be able to know what’s going on. If you just take a little time, and if you’re willing to put yourself out there and share with people your information and ways to contact you, the information is out there. Andrew DiFeo, GM of Hyundai of St. Augustine: One of the biggest things I’ve
seen, especially with the constantly evolving role the Internet plays in all our lives, is that communication has gone from “only during business hours” to really a 24-hour-a-day role, where the consumer wants communication throughout the day — and it might not be when we’re actually open for business, but there are new methods to reach out to them beyond the normal scope of business hours. Tom Hawkins, Owner of Hawkins Chevrolet: Since I started in the business in 1981, I’ve
seen the available methods of direct customer communication increase dramatically. At that time, we had the basic three: phone, mail and personal visit. In fact, I sold my first car after spending three days going door-to-door (actually, farm-to-farm) making cold calls. Today, with all the electronic options of communication, there is the opportunity to communicate with customers in the manner they prefer without being too intrusive. This number of methods also allows you to set yourself apart from your competition in very creative ways. In fact, with all these new methods of customer communication, it’s becoming relevant to be unique by using some of the “old” methods of mail and personal visits. Therefore, the opportunity to succeed in this business is easier than ever, as long as you develop your plan to communicate uniquely with customers on a consistent basis.
AS: In general, what are the hallmarks of good communication? What makes for effective communication, for both the dealership and the consumer? CS: When I see a store receive bad scores, it’s typically because they don’t have a strategy for
communication and, from the dealer’s side, we don’t get back quickly enough. When there’s an issue, the customer wants to be in touch with us instantly. Our newest strategy is that, on every single voice mail at our Ford store, the manager’s message will give their personal cell phone number and say, “Please call me if this is urgent.” Another strategy we’re using is that our business cards have cellphone numbers on them with a note on the back saying, “Please call or text me if there’s an issue.” We’re also always looking at our reviews, and responding back, letting people know we’re accessible. I believe, as a consumer, when you know that someone of influence in a business is willing to put themselves out there, it gives you peace of mind to know that they’ll respond quickly. AD: The most important thing from our
perspective is for our employees to be active listeners and to be asking the right questions to the consumers. We identify the needs, the wants and the concerns of the consumer by asking those questions, but then we step back and become an active listener in the conversation — to not dominate the conversation, but allow the consumer to drive the process.
TH: I believe the hallmarks of good communication are relevance and consistency. It’s important to figure out how the customer prefers to stay in touch. It is interesting how easy it is to assume that others like to communicate in the same ways we do. It’s important to ask. Just as important, consistent communication is what helps maintain loyalty with your customers for future business. We all have that 5 to 15 percent of our customers who like us and are loyal to us just because they like us. We can increase that to 50 percent or greater with relevant and consistent communication via an organized plan. Effective communication for the dealership is such that it maintains customer satisfaction and loyalty. For the customer, it’s timely and not intrusive — and it’s in the method(s) they prefer.
Next month, we’ll take a look at the strategies that have proven effective for our dealer panel, and ways to train sales and service staff to connect with the customer.
If you have questions or are a dealer who would like to be considered for the panel, please contact us at thepanel@autosuccessonline.com.
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DEALER PANEL
COME VISIT US AT THE LAS VEGAS CONVENTION CENTER, MARCH 31-APRIL 2 AT BOOTH #2883C. WE’LL SHARE WITH YOU HOW WE HELPED THESE DEALERS MANAGE THEIR TIME-TO-MARKET!
MANAGING TIME-T0-MARKET AND HOLDING COST
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TimByrd
founder & president of DealerRE \ 866.347.6022 \ tbyrd@autosuccessonline.com
WHO IS GETTING YOUR VOTE FOR PRESIDENT?
It would make sense to me that most car dealers are conservative, primarily because car dealers are capitalists. We would all love smaller, less intrusive government regulations. We recognize, of course, there is and has been some very helpful things as a result of government oversight, such as seat belt or emissions directives. I am old enough to remember when bad exhaust could be seen and smelled coming out of every car. I don’t know about you, but today when I get behind a very old car, I really have trouble breathing. Most new regulations, however, have been a direct result of reining in some unscrupulous business practices, such as, for instance, the Consumer Finance Protection Bureau (CFPB). Of course, as seems true with the government, they turn loose a bunch of bureaucratic lawyers on the biggest fish, chop off a few heads to strike fear into the rest of us and end up finding less abuse than they thought. One thing plainly clear to us who have been around a while: The free market usually straightens things out. For example, let me just mention the Ford Courier, Mercury Bobcat, K Cars, AMC Pacer and VW Rabbit Diesel. And that list could go on and on. I say all that to lead to this question: Who are you going to vote for, for president? My opinion is that safety and a strong economy are tops on your list. That should certainly point you away from anyone who wants to put you in a 90 percent tax bracket. If that wouldn’t stifle just about everything in the economy, I don’t know what would. Hey, I’m not here to tell you how to vote. I do want to share with you an idea that has weathered the economy and political swings of the last 40 years. Reinsurance.
Why reinsurance? Reinsurance puts you in the driver’s seat to be a better, more profitable dealer. Reinsurance gives you ultimate control to do what is best for your customer and your dealership. It increases your profitability with a return on investment better than any other single endeavor available to you in the car business. Since there are various versions of reinsurance, be aware that some are better than others. Whether you are a franchise dealer, traditional used car dealer, a buy-here/pay-here (BHPH) dealer, or all three under one management, this advice is the same. First, make sure you are setting up an administrator obligor reinsurance company. Rolling the dice on any other structure could be disastrous. Second, make sure you are dealing with reinsurance experts who know just as much about the car business you are in as you do. In other words, not just reinsurance experts, but car business experts. No matter what type of car dealer you are, you need a reinsurance expert who can be a trusted advisor. Team up with a reinsurance managing agency with the expertise to give you the sound advice that either a franchise dealer,
more media, more information, more solutions...
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traditional used car dealer or BHPH dealer must have for success. The franchise car dealer with a used car super store and a BHPH operation are more common now than ever before. The reinsurance experts for the franchise stores are numerous. However, how many of your franchise reinsurance experts have introduced you to an accelerated profit access program? And what do they know about your BHPH operation? What products do they have to offer you that solve problems and create capital in BHPH? Further, the majority of traditional used car dealers don’t have a reinsurance company at all. Most are not aware that they can own a reinsurance company. Many are sending $15,000 or $20,000 a month off to third-party warranty companies, and then end up paying a claim out of pocket to keep from losing a good customer. And, most BHPH dealers don’t offer their customers a vehicle service contract at all because they cannot afford to front the premium to the warranty company. Half of the cars financed by BHPH dealers are uninsured. A reinsurance company can provide premium finance to the BHPH dealer, making it affordable to sell a vehicle service contract or collateral protection. You may not take my advice on who the next president should be, but I do hope you will heed my advice on reinsurance. If you don’t have a reinsurance company, don’t wait any longer. If you do, make sure those who advise you are giving you the advice you deserve. Your future business economy and security could depend on it.
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s&ts sales & training solution
DalePollak
founder of vAuto \ 866.867.9620 \ dpollak@autosuccessonline.com
THREE WAYS TO POWER THROUGH THE NEW CAR SALES PLATEAU
Maybe it’s the sub-zero temperatures or forecasts of heavy snow across the country. Or maybe dealers are getting smarter. Either way, there’s a bit of cold, hard reality in the air. More analysts and dealers are recognizing that, while 2016 should be a decent year, it won’t be as good as 2015 or the previous couple years. There’s growing doubt that we’ll see another consecutive year when new vehicle sales volumes climb by 1 million or more units. It’s curious that, in the span of a few weeks, the outlook has shifted from rosy to reserved. The key question for dealers, of course, is how to sustain the prior year’s performance and profitability in new vehicles at a time when sales volumes plateau and market forces continue to compress dealer margins. The answer lies in achieving greater efficiencies in your new vehicle operations, and providing greater ease to the customers you sell and serve. Here are three areas where current inefficiencies offer opportunity for dealers to profitably power through a new vehicle sales plateau: Increased Transparency
The big losers in a less robust new vehicle market will be dealers who continue to resist the more market- and transaction-transparent pricing that new vehicle buyers want to see. Industry stats show that dealers who adopt a new vehicle pricing strategy that accounts for the competition, available incentives and their own discounts see more engagement with potential buyers — e.g., vehicle details page (VDP) views, completed forms, e-mail leads — than those who don’t. The prospective buyer’s desire for increased transparency also extends to the online marketing and merchandising of the vehicle. It’s all too common to see new vehicles posted online with stock photos, ho-hum descriptions and poorly thought-out placements on classified sites and landing pages. Dealers would do well to put themselves in the buyer’s shoes: Would you be more likely to lock in or look past a new car listing that raises more questions than it answers? Online Deal-Making
Today, most dealers have some type of interactive tool on their Website that is meant to help customers put themselves in a new vehicle. Instant messaging. Payment calculators. Trade-in evaluation tools. But here’s the puzzler: Why is it that only 30 percent of prospective new vehicle buyers actually use these tools? The answer can’t be that buyers don’t want the information. We know they do. To some degree or another, they always have. The problem is that dealers typically don’t use these tools to truly give buyers the information they want. Instead, the tools serve the dealer’s appointment-setting and lead-generation efforts. They exist to capture customer information and drive showroom visits rather than address questions and provide credible answers. The important take-away is that dealers should recognize the efficiency (and online technology investment) gains they’d achieve by using tools to facilitate at least part of a transaction online. Large public dealer groups, and many progressive dealers, have made online deal-making a strategic priority in the coming year for two reasons.
30 read, listen, watch, share, succeed.
First, it builds credibility and trust with buyers. They understand when dealers are trying to make the job of purchasing a vehicle easier on their behalf. Second, it increases the efficiency of their sales operations. If buyers can work out key terms of a deal online, sales associates can spend less time working deals with managers and more time satisfying the customer’s desire to get to know and test drive the vehicle, and take delivery.
“The answer lies in achieving greater efficiencies in your new vehicle operations, and providing greater ease to the customers you sell and serve.” Showroom Reinvention
Dealers who address the first two inefficiencies are best poised to take full advantage of the third opportunity — making the customer’s time in the showroom easier and more efficient. It seems as if dealers have a hard time believing, or even understanding, that a customer is largely “sold” on a vehicle by the time they arrive at the showroom, thanks to all their effort and research online. In most showrooms, the sales process hasn’t changed much in the past 20 years. Today’s buyers really don’t like the typical cat-andmouse deal-making. They have a number in mind, if not in hand, for the vehicle’s purchase price and, if applicable, their monthly payment and trade-in. When dealers come to terms with this reality, they find that it’s both possible and prudent to complete transactions within 60 to 90 minutes or less. In turn, customers are more satisfied and receptive to options that allow them to personalize their new vehicle or protect its long-term value. Dealers who have already addressed these inefficiencies aren’t worried too much that new vehicle sales volumes will plateau in the coming year. In fact, they welcome it as an opportunity to distance themselves from the closest competitor as they both race to meet the needs of today’s customers.
2016
WITH YOUR SUPPORT, ONE OF US IS GOING TO
WASHINGTON ARE YOU IN?
I DON’T WANT TO BE THE LEADER OF AN IDLE SOCIETY, BUT OF CITIZENS WHO ARE WILLING TO DRIVE OUR COUNTRY INTO A MORE PROSPEROUS DIRECTION. I DECIDED TO BECOME A CANDIDATE BECAUSE WE MUST REESTABLISH DEMOCRACY. (844) - 84ROCKY
info@ROCKY2016.com
ROCKY FOR PRESIDENT www.rocky2016.com
ms marketing solution
ToddKatcher
managing partner for Digital Dealership System \ 866.513.6690 \ tkatcher@autosuccessonline.com
THERE IS A LOT TO BE WRITTEN ON VIDEO WALLS
Consumers are visiting fewer and fewer dealerships when it comes time for them to purchase a vehicle. When a customer enters your showroom for the first time, how does your in-store experience separate your store from the next? High-impact signage and visuals provided by video walls and digital banners can make any dealership look new and modern. Showing videos, dealer marketing, pictures, video testimonials and any TV footage can make a memorable first impression and increase awareness of the dealership initiatives. Video walls are usually made from highresolution monitors with an extremely small bezel (border) of about two millimeters, making the images seamless. Video screens are connected to a central processor with multiple inputs that allow for overlapping video or coordinated footage where one part of the system is showing a video and the other is showing live TV — overlapping or stretching videos accordingly. High-end systems use a central powered unit and battery backup in an all-in-one system that is easy to maintain and use. The result is a modern, informative and entertaining atmosphere that brings your dealership’s message to life far better than
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static displays that can quickly become stale and outdated. For the budget conscious — or dealers with large spaces to fill — a disconnected video wall may be the way to go. A disconnected video wall is a series of monitors working together, but with a space in between. Using commercial-grade screens connected to a sophisticated computer, images can race across the screens and content can be specifically created to convey the dealer message across a showroom using TVs of any size. Disconnected TVs offer the “wow” factor at a fraction of the cost of traditional video wall components.
With different finance options available, video walls are more affordable than ever. As part of a complete digital signage package, video walls welcome customers and distinguish dealers at the point of entry. Adding video walls to service appointment signs and customer lounge TVs, as well as showroom and service Interactive kiosks, complete the dealership experience and increase bottom-line revenue and CSI for dealership customers. Video walls can keep your customers engaged in the sales process while browsing in the showroom or during the inevitable “dead” times that take place in the sales process. Keep your customer’s eye on you and your dealership with interactive and informative displays, and set your dealership apart from those who rely on static displays. Every dealership is looking for something to set them apart from the competition; video walls are a dynamic way to achieve that goal.
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JeremyAnspach
CEO & founder of PureCars \ 877.381.2632 \ janspach@autosuccessonline.com
HOW DEALERS CAN CATER TO MILLENNIAL PURCHASING HABITS
In just a generation’s time, Millennial shoppers have lost the sense of car-inspired freedom that once bolstered auto sales. From 2007 to 2011, car purchases made by 18 to 34-year-olds dropped almost 30 percent. However, while cars are now a less sought-after commodity, Millennial disinterest in buying them can actually help dealers improve their digital marketing tactics. Last month, we examined the Millennial’s intolerance for misinformation. This month, we’ll conclude by looking at other factors that Millennials both want and require to do business with you and your dealership. Millennials Want Personalization
Beyond accuracy, Millennials expect marketing information to be personalized. When shopping for cars online, Millennials anticipate an individualized experience. This includes personalized social, email, display advertising and other digital content. To provide this, dealers should use a mix of search and display advertising to learn what models generate the most shopper interest. They can then integrate these preferences into personalized content. When dealers can match a buyer to a product they are actually interested in, they can optimize display campaigns to encourage more dynamic engagement, higher click-through-rates and boosted conversation for in-market shoppers. One popular approach to gain this information is audience targeting, which uses Web pages viewed, time spent on pages, click and interactions, etc. to determine a shopper’s behavior. Profiling consumers into specific demographic and interest segments helps dealers compare shoppers to existing audiences, and then service them in the same way. The process also uncovers untapped markets that look like existing audiences,
which dealers can pursue as future customers.
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and model or other dealer-unique offerings. From first interaction to final purchase, personalization should follow and anticipate shoppers throughout the entire purchase cycle. Millennials Need Variety
In addition to accurate and personalized information, Millennials have grown up in a Another common approach is contextual society filled with innumerable options. So, targeting. Here, dealers serve online shoppers when looking to buy a car, variety intrigues ads by tracking an individual’s digital Millennial shoppers most. Dealers should focus movements and create campaigns that on real incentives and highlight the features resemble the content that particular shopper that differentiate one model from the next. For has frequented in the past. As dealers monitor example, for both new and used cars, ad copy browsing activity for auto shopper-specific should push make and model details in an keywords, they can strategically identify and easily comparable way. This helps Millennials display relevant ads based on notable keyword-, visualize alternatives and overcome their auto- and vehicle-specific content. Contextual “indecisive” nature. targeting helps dealers connect with lowfunnel opportunities by engaging consumers Dealers have to provide Millennials with a with specific inventory in real time. Not only sense of choice throughout the digital shopping does content drive personalization, but it also process. Another car company’s site is just a click increases the likelihood that a digital shopper away, and dealers should display everything will click through to a dealer’s page. they have to keep shoppers interested. At $200 billion, Millennial’s annual buyer power is profit Even after a shopper leaves a dealer’s site, that auto companies cannot afford to lose. dealers can employ retargeting techniques to extend data customization and drive With just a portion of Millennials in personalization. Ninety-nine percent of market, factors like accurate information, shoppers do not convert on the first visit, and personalization and variety can help dealers dealers can entice them back with thoughtful retargeted content (like a car they have already win those who are. Engaging Millennials may pose its challenges, but dealers will find success looked at). Consumers go through phases as they grasp and leverage common Millennial when making purchases, and, early on in the purchasing decision cycle, retargeting reminds purchasing habits. What marketing do they respond to? Where do they prefer it? What gets them of why they should return to a dealer’s them to convert? Answers to questions like site. When closer to making a final decision, these are vital to developing strategic digital dealers can use dynamic display retargeting marketing campaigns that win — both for to serve back the exact content a shopper Millennials and all shoppers alike. was viewing, such as a car’s specific make
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BillWittenmyer
partner of ELEAD1ONE \ 866.859.6504 \ bwittenmyer@autosuccessonline.com
EVOLUTION
• Be open to new ideas. Don’t dismiss Let’s talk about evolution and, no, not the religious debate or Darwinism — the anything immediately. Everything is worth evolution of business and self. As much as we would like some things to remain the some consideration — some ideas more than same, they just don’t; they continually evolve. Your favorite band will explore different others. Take the time to examine and know methods of music. And, people around you will experience new things and transform in all the facts before making a judgment. ways both good and bad. One definition of evolving is to ”develop gradually, especially from a simple to a more complex form.” Notice how I use the word “complex,” and not “better” or “improved.” Our business has evolved significantly, and it has certainly gotten more complex. The advent of all the readily available information intertwined with a society demanding rapid response and process, as well as increased pressures on profit, margins and new competition have added significantly to our industry’s complexity.
easier to do what you know versus continuing to learn and explore. The fear of the unknown can creep in, cancelling any growth gained from new experiences by returning to the “old” way of doing things because there was some measure of success — that prior, fleeting success reinforces the failure path. If you stay on the road of the “now” or the “then,” eventually you will get left behind. Here are some things you can do to evolve and continually grow:
You can’t fight change; you have to change the fight. Ultimately, we all have to evolve, even those who don’t want to admit it. To be successful, you have to evolve constantly, and you have to replace the “complex” with the positive. It is certainly not easy to do and requires effort. If not, you have no control where you will land or if you land at all.
• Read. The average American reads about one book a year. A recent poll showed that 28 percent of Americans did not read a single book last year. New words, new thoughts and new ideas inspire creativity.
Our business will continue to evolve and certainly will become more complex. The solution is to be at the very least in that same evolutionary cycle, or slightly ahead of change. Inventing a new way of business or creating a new process isn’t always necessary, but mastering the existing and being proactive with the coming are keys to moving forward. It’s
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• Be in the know. Explore sites and publications in the industry. See what others are doing and saying about our industry. It does not matter what level you are in your company; you can always benefit from knowing what is happening in your community. • Connect. Make connections with people both in and out of your industry. You would be surprised how much crossover there is in the skill set you can pick up from others.
“It’s easier to do what you know versus continuing to learn and explore. The fear of the unknown can creep in, cancelling any growth gained from new experiences by returning to the “old” way of doing things because there was some measure of success — that prior, fleeting success reinforces the failure path.”
• Accept the fact failure will occur. If there is no failure, you are not evolving. Experience is a sum of all our failures. No one is perfect. Everyone makes mistakes — just don’t repeat them. There’s a reason sharks and other animals survived while dinosaurs are extinct. Don’t end up like the dinosaurs. Good selling.
ms marketing solution
JordanBentley
national sales manager for Callbright \ 866.865.3175 \ jbentley@autosuccessonline.com
HOW TO BUILD LOYALTY AND KEEP CUSTOMERS COMING BACK FOR YEARS
“Adapt and overcome” could be the motto for many dealers in the post-recession auto industry. Overall sales of new vehicles have steadily rebounded since the 2008 crash and, according to J.D. Power, customer satisfaction with the sales process improved for the fifth straight year in 2015. However, a couple of factors could present dealers with obstacles to generating revenue in the years to come. First, according to a recent study by R.L. Polk & Co., customers are no longer buying new vehicles every three or four years, as was the industry average for decades. Customers are now holding on to their new cars for an average of almost six years.
more revenue in the long run, it’s important for you to place a simple follow-up call to remind your customers that you still care, even after you hand over the keys. How often should you call your recent buyers? Well, don’t bombard them daily; your staff still has active leads to work. But the first call to new buyers should come within the first 24 to 48 hours.
Second, while brand loyalty was at a 10-year high in 2015 according to IHS Automotive, the emergence of price-information Websites like TrueCar.com, Edmunds.com and Cars. com have given customers more ammo in the negotiating process, which cuts into dealer profit margins.
After the first call, stretch the time between future follow-ups and use those follow-ups to try to generate referral business by asking about friends and family who are looking for a new vehicle. Consider sending direct mail, such as thank-you cards or emails, in the time between the more personal phone calls to make sure they don’t forget you.
What this means is that retaining existing customers has become more important than ever. Don’t understand why? For starters, it is generally accepted that customer acquisition costs more than customer retention. This leads us to the 80/20 rule, which tells us that 80 percent of a company’s future revenue will come from just 20 percent of its existing (and cheaper to retain) customers. So, what if you could increase that 20 percent and bring in even more revenue? It’s a daunting task. Customers are coming in for new cars less and less, and when they do, they’re well armed with invoice pricing and bids from your competitors. So, how can you keep recent new car buyers from forgetting you in six years? Here are some tips for keeping them in the fold. Follow Up With Recent Buyers and Even Not-So-Recent Buyers
How many cars did your staff sell last week? How many of your reps have called their respective buyers to see how they are enjoying their new car? If that’s not a standard practice at your dealership, you might want to change that. It’s easy to forget customers once they’ve signed the paperwork and driven off the lot. After all, customers no longer represent a new sales opportunity once the keys are in their pocket. That’s not to mention that your staff should be turning much of their attention to unsold leads. However, since retaining customers is cheaper than acquiring customers, and they generate
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Use Technology to Improve Your Customer Service
Overall satisfaction with the car sales process is at a five-year high, but it’s important to point out what J.D. Power cites as a big factor in the continued year-over-year improvement. Dealers who integrated technology like tablets and computer displays into their sales process received higher satisfaction ratings than dealers who didn’t use new technologies.
to detect words a customer might use if they’re unhappy with the exchange should flag calls for review and help you identify training opportunities. Knowing which calls have gone poorly would also give you or your managers the opportunity to follow up with the unhappy customer and keep them from going to a competitor. Quality customer service is something customers will remember when they’re ready to buy a new car. Get Them in for Maintenance
Much like how your salespeople might be moving on and forgetting buyers after completing a sale, they also might not be too concerned with getting their customers back to the dealership for routine maintenance. This is a huge mistake not only in terms of lost sales in the service department but also in terms of building loyalty. In the January issue of AutoSuccess, we talked about the booming service industry and how dealerships are losing customers as soon as warranties expire. While there is plenty of money to be made by getting customers to keep bringing their cars in for maintenance after their warranties expire, it would benefit your sales staff in the long run to encourage customers to use the dealership’s service department. Having a customer visit the dealership on a regular basis for routine maintenance not only
“It’s a daunting task. Customers are coming in for new cars less and less, and when they do, they’re well armed with invoice pricing and bids from your competitors. So, how can you keep recent new car buyers from forgetting you in six years? Here are some tips for keeping them in the fold.” If you need any more proof that we’re living in the age of the smartphone, the J.D. Power survey reported that handwritten price quotes had a negative impact on buyer satisfaction. But, while an iPad might help a salesperson make a sale to a new customer, there are many more technologies available that can help you improve your customer service before the customer ever sets foot in the showroom. If a member of your sales staff is having a hard time getting customers into the showroom despite speaking with them over the phone, call-tracking software that automatically records and scans calls for keywords can help you pinpoint the reason. Setting your software
keeps the dealership in their minds for the potentially six or more years that they own that particular vehicle, but they’ll also be driving by the new car lot and seeing all the new models every time they come in. When that new model on the lot catches their eye and they’re ready to replace their car, they should be familiar with and trust your sales and service staff and, hopefully, have had an exemplary customer service experience along the way. Why wouldn’t they buy from you again? If you want to discuss how to get more of your customers to come back, give me a call or send me an email.
s&ts sales & training solution
SubiGhosh
executive vice president for Dealer Authority \ 866.347.5019 \ sghosh@autosuccessonline.com
FIXING A DEALERSHIP’S CULTURE STARTS BY IDENTIFYING THE ROADBLOCKS
The perfect dealership culture is a delicate formula because it has to: 1. Be authentic. 2. Resonate throughout the dealership and community.
To achieve a great company culture isn’t as simple as a creative marketing message or rules handed down from top management. Culture issues generally exist because there are roadblocks in more than one place. To truly get to a company culture that sticks and resonates, you have to find your roadblocks, address them and continue to identify if roadblocks reemerge. Many people think that roadblocks stop and start with the sales department, while others point fingers at any — or every — other department. The reality is that a single customer looking to do business with us touches multiple departments in an effort to drive away in a new car. Thinking that way will lead us to evaluate all departments and bridge those departments together. The sales team is often the easiest place to start — as long as it isn’t where you end. Sales teams are the faces of your culture. If they feel unappreciated or aren’t given the right tools, it will filter into every customer conversation. Sales teams require written rules and processes, expectations and training. Those three components can drastically change your showroom dynamics for the better. Just be sure to follow through if anyone doesn’t adhere to the written policies and culture rules. Sales managers are more important to address than anyone else. These people set the tone of what both customers and employees experience. Poor management — led by fear or berating — will quickly destroy your efforts. Hold them to higher standards and stick to the same disciplinary actions if they become toxic to your culture. Finance. Ah, Finance. Make sure they play nice, educate and work with the sales team and the back office. There is no need to create hierarchies where none are necessary. The processes of handing off paperwork and/or customers should be seamless. The communication should flow back and forth between any departments that need to work together to get that customer closed, financed and posted to your DMS. I’m not sure why we give such little attention to the back office. They generally keep our operations running smoothly and make sure we get paid. These people shouldn’t be given the run around. They should be given what they require to keep things running smoothly, shouldn’t they? Internet teams and/or BDC teams should really be extensions of the sales team, not the redheaded step children. Managers of both teams should be given authority and respect. Sales teams and Internet/BDC teams need to work hand in hand. The handoff of a customer to any department needs to be smooth, consistent and timely. Far too many dealers have great initial experiences when contacting from the Internet, but the in-person experience doesn’t match and customers are lost — and armed with perfect bad-review content. Ownership can often be the roadblock. Some examples include giving certain 30-car-a-month
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guys free passes when they break the rules, hiring people they shouldn’t, keeping people they shouldn’t, not understanding current marketing needs or not having the vision for that culture you feel is important to set you apart as a dealership. We may feel that there is little we can do here. My advice is to speak in terms they understand. Move the needle where they need to see it move and get their buy-in. I’ve done the impossible in making ownership see the value in these things, so I know one person can make a difference. And then there’s everyone else. Every single person in your dealership who works with a customer — and even those who don’t — should be armed with your voice, mission, culture or whatever you want to call it. Receptionists talk to your customers and often give them the very first (and sometimes last) impression. Sales teams may be the ones who give your customer the first impression, the last impression and all the ones in between. Finance talks to customers when they feel most vulnerable and excited. Get-ready makes sure the vehicles look like what the customer is expecting. The back office answers their questions and handles their issues with tradeins after the sale. Service keeps in touch with them and takes care of them until they’re ready to be sold again. Make sure that the words they use, the manner in which they speak to your customers, the processes they put their customers through and their follow-up practices match what you want your company’s message to be. Do they present themselves the way you want? Do they do the little things you want your dealership to be remembered for? You don’t have to have the perfect team, but you have to make sure you have the right process. Any break can cause a culture to fail.
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ms marketing solution
JoeyLittle
director of digital & social engagement for AutoAlert \ 866.515.6516 \ jlittle@autosuccessonline.com
SOCIAL TRENDS AND TOOLS TO FOCUS ON IN AUTOMOTIVE FOR 2016
to find out what you’re offering if it’s not available at their fingertips. Each year, the social media world changes — apps update, platforms appear or disappear and new trends and tools become useful. In 2016, there are key changes that will become or remain 2. Mobile apps are now essential. Mobile apps were once considered a simple bonus or add-on, but with mobile demand continuing to rise important for your dealership to utilize in order to strengthen and dominate, apps have the power to make a huge impact on your consumer insights and take advantage of the social selling avenues dealership’s marketing success. Apps can do a number of things to your consumers are a part of. The Top Five Social Tools to Look for This Year 1. Video and mobile are on the rise. This year, the consumer shopping
journey will carry over the 2015 trend of a primarily mobile shopping journey for consumers. With mobile media time now higher than time spent on desktops, 80 percent of consumers are now using their smartphones to shop and research. To take the consumer journey one step further, mobile video is predicted to dominate video conversation this year — according to Google’s head of agency marketing — and consumer video on-demand traffic will double in the next three years.
2016 can be the year for your dealership to benefit most from having a presence that’s mobile-friendly and bringing video to the forefront to stay on top of quickly increasing consumer demand. Making sure your dealership’s presence is available and accessible across all mobile devices is important, not only because it ensures ease of access for your consumers, but also because consumers won’t generally take the time
benefit both your customers and your dealership; they can help collect data, provide stronger customer support, reward loyal customers and keep your dealership at the top of consumers’ minds in the crowded marketplace. With 89 percent of consumers’ time spent on media brought to them via mobile apps, it will be nearly impossible for shoppers to ignore a dealership that’s mobile-friendly and always accessible in 2016.
3. Real-time updates attract attention. Taking mobile and video one
step further, social media platforms — such as Facebook, Twitter, Periscope and Snapchat — have taken on the idea of live posting by allowing users to share live video updates. Recording a video and posting it later is no longer the idea of the moment; now, consumers want a live look at what’s going on. To get ahead of the competition, your dealership can start to add a sense of immediacy and give consumers real-time content, information and interaction.
4. Social selling is key. Targeting your dealership’s content and
information specifically toward what individual consumers are looking for is increasingly effective. With the right tools, your dealership can see who is in market and what vehicles are being searched, even if a lead has previously been marked lost. Subtly target emails, follow-ups, deals, and more toward consumers to gain a better angle and bring in more sales. Your dealership can benefit significantly from customizing its consumer interaction and the content it shares based on specific customer needs.
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5. Add convenience with the press of a button. Much like real-time
updates, buttons will make all the difference for consumers this year, offering them the ability to make decisions in the moment with the simple click of a button. Facebook, YouTube, Twitter and Pinterest are the four major platforms that have gained a large amount of attention by offering buy-button features for businesses and users. As a dealership, buy buttons are not necessarily logical for large purchases, but consider offering customers the opportunity to request appointments, test drives, oil changes and information with the click of a button.
Giving people the option to quickly click a button offers your dealership the advantage of being able to more quickly help consumers who’ve shown interest in a product or service, giving you an edge over the competition. Although not all social media platforms have buy buttons available, look for most sites and platforms to begin implementing them in 2016.
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The better a dealership is able to engage and interact with automotive consumers, the better it is able to stay on top of market needs — and ultimately increase profits. By utilizing the latest social trends and tools, your dealership will be able to refresh and rev up its 2016 marketing plans by starting the year off on the right foot with consumers and ahead of the competition. Be sure to focus on the tools that will dominate the online world throughout this year, and you’ll be sure to gain positive feedback and shopper attention.
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ChrisKelly
sales manager for Carbase.com \ 866.396.5871 \ ckelly@autosuccessonline.com
KEEPING YOUR WEBSITE FRESH AND RELEVANT TO KEEP YOUR CUSTOMERS
Dealerships should ask for more from their Website providers. Waiting months for upgrades to responsive sites and nine-week ticket times for changes are unacceptable. Dealership Websites should be dynamic and relevant. To do this, the dealership needs to be able to make changes on the fly. Imagine your customers seeing a “congratulations” message to a high school marching band one day and photos from the parade the dealership sponsored the next. Shouldn’t the new incentives be online the first day they are announced? The front line today is online.
To most consumers, your dealership is what your Website says it is. More customers will visit your site in a week than will visit your store in a month. Are you putting your best foot forward? The shopping process has completely moved online. Today’s customers only visit 1.4 dealerships before making a purchase. This is the case because they do all their research and shopping online. They only go to the dealership to actually buy a car. The shopping is already complete before they set foot into a showroom. If your Website is not up to speed, or even ahead of the game, how can you compete online? The car business moves fast. Are you able to make changes to your Website quickly and easily to keep up? Just as the eyes are the windows to the soul, your Website is the window to your showroom. Very few customers will ever see your showroom before they have seen your Website. So, are you confident that your customers are seeing what you would like them to see online? Inventory changes, programs change and your dealership changes — so should your Website. Unfortunately, many dealerships are stuck with cookie-cutter Websites with terribly long ticket times that make it impossible to keep
frustrating disappointment? Trust me, they won’t scroll side to side on a nonresponsive site. They will just find a dealer who wants their business enough to have a site that responds to the device they choose to use with a user-friendly experience. If your site is not responsive, you are losing business.
“To most consumers, your dealership is what your Website says it is. More customers will visit your site in a week than will visit your store in a month. Are you putting your best foot forward? The shopping process has completely moved online. Today’s customers only visit 1.4 dealerships before making a purchase. This is the case because they do all their research and shopping online. They only go to the dealership to actually buy a car.” the Website up to speed with changes at the dealership. Most dealerships and their people are active in their communities. This should be something you are able to highlight on your Website. Have you ever gone to read your mail on Yahoo and seen the same news stories for weeks straight? Why should your site be any different? Keep it fresh so that your customers stay engaged. Consumers are mobile. They are using mobile devices where they work, play and, most importantly, where they shop. They are visiting your Website with their cell phones. Does your site make this a good experience or a
There is a better way. Technology now allows for dealers to make changes to their Websites on the fly. Drag and drop technology is here. Dealerships can now make changes to their Websites quickly and easily without waiting months for tech support to get to their ticket. The days of updating the site every few months are over. Now, dealers can highlight a weekend sale and congratulate a local high school sports team every week. Just like you rearrange the front line several times a week, so should you change your Website. If you keep it fresh and relevant, your customers will stay engaged and you will keep them coming back.
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ls leadership solution
JodyDeVere
CEO of AskPatty.com \ 866.849.9973 \ jdevere@autosuccessonline.com
WHO ARE THE MILLENNIALS, AND JUST WHAT IS GOING ON?
First, let’s define the years that define this group: A Millennial is a person reaching young adulthood around the year 2000, born inclusive of the years roughly between 1980 and 2004. In describing their characteristics, we find that there has been a constantly changing description since as late as 2009. Without question, this group is proving to be more diverse than any previous generation. This is, by far, the fastest growing consumer group in the nation, and they are drastically changing our economy’s perspective on marketing, on products and on employment. Economic forecasts are suggesting that, within 10 years, they will be controlling the economic directions for our country, and they will represent 75 percent of the workplace by 2030. We can look at this as scary, or exciting and lifestyle changing. If, in fact, these projections are true, then we had better make every effort we can to understand this group, or we may be left behind. In this article, I will focus on two different aspects of this group: Who they are, and what their effect is — and will be — on the automotive industry. Who are the Millennials?
Here are some frequent descriptions and statements that have been used by correspondents representing all phases of the American economy: 1. Millennials are the largest, most diverse generation in the U.S. population. 2. Millennials value community, family and creativity in their work. 3. Millennial women have more labor market equality than previous generations. 4. Millennials tend to get married later than previous generations. 5. Millennials are less likely to be homeowners than young adults in previous generations. Morey Safer from 60 Minutes said it well: “The workplace has become a psychological battlefield, and the Millennials have the upper hand, because they are tech savvy, with every gadget imaginable almost becoming an extension of their bodies. They multitask, talk, listen and type, and text. And their priorities are simple: They come first.” Millennials are not going to settle, as their parents may have done, and they put lifestyle, social communication and friends above work. They are not looking at work opportunities as “career” defined. As a matter of fact, the average tenure of Millennials is two years, and they do not consider it negative to have a resume that indicates multiple job experiences in a one-year period. They are entrepreneurial and watch for opportunities that will move them upwards, even if this means frequent moving from one job position to another. Jeff Fromm from FORBES recently outlined some of their workplace characteristics: 1. “They want to grow, even if that means growing out of your company.” 2. “They want a coach, not a boss. They expect greater accessibility to the leadership in their offices, and are looking for more mentorship rather than just direction…. 69 percent consider their company’s review processes as flawed…. Nearly 90 percent would feel more confident if they had on-going check-ins with their bosses.” 3. “They don’t want to waste time on the little things…. They consider their employer’s reimbursement policies as too difficult to contend with, so they by-pass conference and special-event participation.” 4. “They want balance and democracy. Millennials will work hard, but do not want to sit around the office until 5 p.m. if they have completed their work two hours earlier…. Millennials no longer work for you; they work with you.” Millennial Influence on the Automotive Industry
A recent AutoTrader.com study observes the following: Despite the fact that Millennials currently only make up 12 percent of the U.S. new car sales, they will account for 40 percent of new car purchases by 2020. They are “big on small” vehicles, better designed for urban usage where many of them live. Since their generation faces higher levels of unemployment, lower entry pay and the likelihood of greater college debts, these factors influence a clearer grasp of economic realities. Mobility is the keyword. Approximately 95 percent of Millennials go online during the buying process, compared to 79 percent of overall respondents. They are waiting longer than earlier generations to get their driver’s licenses. At younger ages they are image-conscious, but as they age are likely to become more practical in their automotive choices. As to auto brands, older Millennials
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are likely to include Mercedes, BMW and Audi models, but younger Millennials move more toward Japanese choices.
“This is, by far, the fastest growing consumer group in the nation, and they are drastically changing our economy’s perspective on marketing, on products and on employment.” Here are some additional observations from Forbes. 1. They aren’t influenced at all by advertising, and do not respond to advertising. 2. They want to engage with brands on social networks, and expect brands (including auto dealerships) to personally engage them. Around 62 percent state that if a brand engages them on social networks, they are more likely to become a loyal customer. 3. They are using multiple tech devices, with 87 percent using devices on a daily basis. They immediately respond to new product technology. 4. They are brand loyal. 5. They expect brands to give back to society, and are “sick and tired” of corporate greed. Summing Up this Enormous Database
Remember: Millennials want job security, time off for personal needs, good benefits, opportunity for advancement and a job that “helps society.” They also list excessive work hours, inconsistent income and social stigma as reasons they may not consider employment in the auto industry. Since 43 percent of Millennials place “a job you enjoy” as most important, auto industry must somehow adjust to these demands, and find more effective ways of not only welcoming the Millennials into our workforce, but treating them seriously as major customers. It is not just the auto industry that is going to be affected by the Millennials. How our entire business economy responds will not only determine our potential successes or failures in these relationships, but may also jeopardize our very survival in this rapidly evolving economy. We can no longer “wait and see” how things will turn out. We may find we waited too long.
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DO YOU REALLY KNOW WHERE YOUR CUSTOMERS ARE IN THEIR LIFECYCLE?
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OUTSELL
EdLouis
CEO & co-founder of DealerApp Vantage 866.604.6710 \ elouis@autosuccessonline.com
THE MOBILE RESULTS ARE IN
Mobile dealer app stats prove that customers are using them. Dealers who question the need for a dealer app — when they have already invested time and energy in their newly designed responsive site — need to pay attention to the stats. While it’s true that, with a responsive site that fits all screens and devices, it’s easy to make changes and appeal to the masses, there are very good reasons why a dealer app is necessary.
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A recent review of Bayside Chrysler Jeep Dodge’s dealer app statistics shows almost 50 percent of their app users are calling the dealer from the app. They’ve had more than 3,800 detailed app inventory views in the past year and more than 6,500 notification views, which include coupons, specials, events, reminders and much more. Almost 1,300 service request have been attempted and, lastly, almost 40 percent of their app users have created profiles within the app — a huge marketing engagement opportunity. The stats from this dealer, who markets their app to all of their customers, shows the effort is well worth it. The push notification system of a mobile app provides the most compelling reason why every dealer should include an app in their mobile marketing strategy. The reach and flexibility of the different type of messages is just not possible with any type of Website. These messages can now be automated, triggered by customer and vehicle data. Location-based messages and targeted messages make apps a “must have” for any dealership. There are truly no limits now as to how dealers can reach and communicate with their customers. “One of the biggest advantage we’ve gained by adding the app is the ability to send out push notifications as a new way to reach more of our customers,” said Roberto Barca, digital marketing manager at Bayside Chrysler. “With the app notifications, customers can browse inventory and brochures, or view current sales, service and parts specials. Our favorite feature is the ‘Schedule a service’ function. It’s a winwin for us and our customers.” Should you be concerned if your customer prefers to download your app as opposed to going to one of your sites? Not at all. Bayside Chrysler truly understands that today’s consumer has preferences. Some customers prefer the ease of searching and browsing a Website, while others prefer the speed and convenience of a mobile app. They may also prefer to take advantage of the unique advantages of a mobile app, such as notification reminders, vehicle tips, document storage
and geo-fencing-related messages. In order to truly capitalize on the ever-emerging mobile revolution, Bayside Chrysler decided to make sure they have all their bases covered when it comes to mobile. All dealers want to drive as much traffic as possible to their Websites. Thousands of dollars are spent on Web design and SEO. The goal is to increase sales and keep them coming back. Mobile apps are similar in purpose, but in a different way. “The app compliments all of our online marketing,” Barca said. “It gives our customers another simple and ‘en vogue’ option to buy a car, service their vehicles or send referrals. It simplifies the process to maintain a lasting relationship.”
“The push notification system of a mobile app provides the most compelling reason why every dealer should include an app in their mobile marketing strategy. The reach and flexibility of the different type of messages is just not possible with any type of Website. These messages can now be automated, triggered by customer and vehicle data. Location-based messages and targeted messages make apps a ‘must have’ for any dealership. There are truly no limits now as to how dealers can reach and communicate with their customers.”
Now is the time to invest in a branded mobile app for your dealership. View the stats and see the results for yourself. The extra effort to market a dealer app that has specific purpose and functionality is worth every penny.
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DanielSchutzman
social media & marketing coordinator for DOM360 \ 866.711.1004 \ dschutzman@autosuccessonline.com
HOW FALSIFIED ONLINE REVIEWS ARE HURTING YOUR BUSINESS
Nearly 90 percent of consumers actively read reviews to help them decide if they’re going to buy from you or not. Because of this, online reviews are becoming increasingly more important for the success of any business, no matter the industry. According to Bright Local’s 2014 Consumer Review Survey, an astonishing 88 percent of the population now reads online reviews when making buying decisions. Out of those, 90 percent will base their decision on the online reviews they have read. Consumers give the same weight to an online review that they would give to a recommendation or criticism from a friend. Knowing this, it’s no wonder companies and individuals are tempted to post phony reviews to boost their reputation or hurt competitors. “Astroturfing” is the practice of masking the authors of reviews or messages to make them appear to be from real and unaffiliated customers. Have you astroturfed? Whether you have or not, it’s important to know that writing fake reviews can lead to big negative consequences. If you think that a negative review will harm your dealership, imagine the damage to the public’s opinion of your business if it comes out that you’ve been dishonest with your online reputation. And, in this interconnected world in which we live, it will come out eventually. Amazon just announced that they’re suing more than 1,000 people for astroturfing. They’re taking it seriously because fake reviews defeat the purpose of having reviews. Consumers want to be able to trust what they’re reading. If that trust goes away, a major part of the sales foundation crumbles.
Have you heard of the eBay ID Verify Program? eBay tries to avoid the issue Amazon is currently experiencing by having buyers and sellers prove their identity. On eBay, if you see someone is ID Verified, you can trust they actually bought that product or that they’re a dependable seller. Misleading consumers can ruin your reputation. Let me reiterate: As a business, don’t try to counteract negative reviews by falsifying positive ones. Not only is that a deceitful business practice, but it’s treating symptoms to avoiding curing the actual illness. Take your negative reviews seriously, address the problems and diffuse the situation in whatever way is appropriate. As you address the issues customers are having with your dealership and address the areas in your business that are causing them, you’ll begin to see less of them. The quickest way to avoid negative reviews is, of course, to ensure that your customer base is happy.
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PeterMartin
CEO of Cactus Sky Communications \ 866.859.8052 \ pmartin@autosuccessonline.com
MAKING VIDEO WORK FOR YOUR DEALERSHIP WEBSITE
The car commercial revolutionized automotive advertising and became an integral part of every dealership’s budget. Video remains one of the strongest forces of advertising and, with digital video, your message is that much more accessible. In submersive digital marketing, video stands out. If you want your dealership Website to convert in 2016, you need to incorporate video, and do it right. Statistics prove the importance of incorporating video into your marketing message: • Today’s car shopper makes only two dealership visits on average. • 70 percent of people were influence by YouTube in their car buying process. • Views on YouTube of test drives, testimonials and walk-throughs have doubled in the last year. The most popular types of video content for your dealership are test drives, walkthroughs and customer testimonials. Car buyers want to research as much as they can about a vehicle before visiting a dealership. Test drives and walkthroughs are great ways to exhibit the features and options prospective car buyers are seeking on their new or pre-owned vehicle. Video testimonials turn your happy customers into your best spokespeople. Prospects can preview the car-buying experience at your dealership from the perspective of your satisfied customers. With proper geolocation tagging and marketing, these video testimonials turn up in dealership searches showing car buyers why they should buy from your dealership. Video testimonials are one of the most cost-effective ways to give your
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prospects what they want. They have a chance to review your business from the perspective of someone who has actually done business with you. In addition to promoting your testimonials in your marketing materials, your satisfied customers have a chance to share their experience with their social media friends in the form of snackable content. Clips of still images strung together like a powerpoint are not engaging video messages for your dealership Website. The most effective video content is full-motion video. Fullmotion walkthroughs displays features and show prospects how vehicle technology works, proving more engaging than a simple list or
potential customers’ buying decisions, but video testimonials have an even greater impact. Video content also impacts your social media presence. The more interactive your message, the more weight it has in social media newsfeeds. Scroll through Facebook on your phone and see what posts rank highest: links, images and especially video. While Whitepapers and Case Studies were previously one of the most effective forms of content marketing, consumers are opting for interactive, digestible forms of content. According to Demand Gen Report, 86 percent of buyers want to access interactive, visual content on-demand content when they are shopping. Incorporating engaging video content on your dealership Website gives you the edge you need to create a better customer buying experience. Prospects will choose your Website for video resources like walkthroughs,
“Video testimonials turn your happy customers into your best spokespeople. Prospects can preview the car-buying experience at your dealership from the perspective of your satisfied customers. With proper geo-location tagging and marketing, these video testimonials turn up in dealership searches showing car buyers why they should buy from your dealership.” blueprint of vehicle features. Customer video testimonials are the pinnacle of online reviews. Written reviews on Yelp and Google+ impact
customer testimonials and test drives. Using video effectively will help your dealership have a more profitable 2016.
s&ts sales & training solution
DannyBenites
general manager of Greg Lair Buick-GMC \ 866.386.5991 \ dbenites@autosuccessonline.com
WELCOME TO THE BIG SHOW Appointments: Set, Show, Now What?
OK, I get it. I need more leads. I also get that I need to set a high percentage of appointments. Oh, yeah, I need to confirm those appointments so they’ll show up. While I’m stating the painfully obvious, I might add that a pound of flour makes a pretty big biscuit. Enough already. Now what? The carefully crafted appointment is here. Obviously, it’s time to shovel out the same mediocre experience we’ve been hurling at disenchanted customers since the invention of the Sharpie. Think again. A recent AutoTrader study showed that a whopping 17 people out of 4,002 really dig the current car buying process. Yee-haw. Why do we work so hard to procure an appointment, and yet fail to prepare for their arrival? If your dealership is closing less than 45 percent of your shown BDC appointments, keep reading. Being in the car business, fast food restaurants know me by name. Occasionally, however, I’ll dine in a swanky restaurant that requires reservations. Nothing makes me feel like a baller like a maître d’ greeting me with “We’ve been expecting you, Mr. Benites, right this way. I’ve chosen the perfect table for you with a beautiful view. May I interest you in a beverage?” I don’t know about you, but I’m walking a little taller and my experience is off to a great start. Somebody is getting a tip worthy of an Instagram photo. I’ve also been to restaurants where the bubblegum-chewing hostess, as she’s finishing an important text, gives me the ever popular, “How many?” and then proceeds to tell me that they’ll see if they can get a table cleaned off. I digress. We all know that the customer is only going to physically visit only about 1.3 dealerships. Mathematically, you have to really suck to get your butt kicked by the other .3 of a dealership. When we first started our BDC, our processes broke down at “the show.” I remember our agents wandering around the dealership asking salespeople, “Are you busy? Do you want this BDC appointment? No? How about you?” Meanwhile, the customer is wondering what happened to the friendly and attentive people who coaxed them into the appointment. If their good online experience isn’t enhanced once they arrive at your dealership, you’ve wasted your hard-earned marketing dollars. Buy an inflatable gorilla instead. Welcome to the Big Show. It’s showtime. Out of all of the places your customer has shopped online, they chose you. Now, it’s time to roll out the red carpet. If you want to increase your shown BDC appointment-closing ratio, here are some things to remember:
Confirmation over Information
Know where the customer’s head is at and join them there. They navigated the first part of this shopping process in their pajamas for a reason. They’re proving to be a tad efficient. Time savers like this don’t want to hear the old, “You looking for a two door or a four door?” Help them confirm the choice they’ve made online and get moving. Also, assume they have at least as much information as you. Let’s just start by making sure that the grey leather seats look like they did online. There’s a good chance they’ll buy something different, but let them start that conversation. They will. Justification over Negotiation
Make no mistake — they like your price. If they didn’t, they would have hit the red “X” button and they’d be sitting at Down the Street Motors right now. Don’t be too quick on the trigger on discounts. Your customer just read an article on howtobuyacar.com and figures asking for additional discounts are worth a shot. A majority of customers (54 percent) say that they would buy from a dealership that offered them preferred experience over lowest price. Remember: Sell your pricing philosophy, not your price. This will also keep the process moving along quickly.
“If their good online experience isn’t enhanced once they arrive at your dealership, you’ve wasted your hard-earned marketing dollars. Buy an inflatable gorilla instead.”
Preparation
Participation
Visualization
When your appointment shows up at the dealership, imagine that they are getting out of a limousine at a movie premier. Red carpet, paparazzi, the works. Greet them with gratitude and give them the welcome they deserve. 2016 is the year of the customer experience — let’s at least act like we knew they were coming.
Know what type of vehicle the customer is driving to the dealership. Make sure the receptionist or greeter knows, as well. Have their name on an appointment board. Approach them warmly and tell them, “We’ve been expecting you.” Have the vehicle and an alternative clean and parked up front. Hang a “Reserved for Mr. and Mrs. Smith” from the rearview mirror. If you live in Minnesota, have it warmed up. If you’re in Arizona, treat them to cooled-down cabin. If at all possible, have enough information to begin paperwork — it will make the experience fast and easy. Almost three fourths (72 percent) prefer making financial arrangements online before coming into your dealership. Knowing that you have pre-thought their visit shows great respect and will make them feel Donald Trump on a good-hair day. Paint a picture of the process. We fear the unknown, and customers are no different. Take a minute right off the bat to explain how the next hour or so will go down — and then deliver. “Here’s what we’re going to do,” you tell them. “First, let’s make sure that this is indeed the car you researched online. If it is, we will drive it then look at your current car. That will take about 15 minutes. We will present a proposal for you to sign, and that will only take 15 to 20 minutes. If all goes well, we will have you signing papers within an hour.”
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Keep them involved. Time will fly if you put them to work. Use interactive processes, such as driving with them in their trade. Keep it flowing. Leave them alone for a bit and they’ll showroom your face off. Next thing you know, your competition has geo-dropped a $50 test drive gift card to your customer’s mobile device and they’ll vanish like my 13-year-old when it’s time to do the dishes.
CAPTURE SALES CarsQuickBuy is a platform built to aid dealers in turning e-leads into completed sales with paperwork. Reducing the in-dealership to 30 minutes or less.
1
This all-new platform is facilitating real-time, secure online buying in the automotive space. Car buyers can initiate and complete the car buying process, all online from their home or office, with a computer, tablet or smartphone.
2 CARS QUICK BUY OFFERS: Calculate and factor in a trade-in to the deal. Utilizing the most current Black Book pricing. Show all of the stackable rebates for the vehicle line in the zip code of the location in which the vehicle is to be titled. Calculate the sales taxes for the state or county municipality in which the vehicle is to be titled. Cars Quick Buy will then furnish back to the consumer, penny accuratemonthly payments based on selling price of the vehicle (including dealer defined fees) less rebates and trade allowances plus appropriate taxes.
INTEGRATES INTO EXISITING WEBSITE 3
The Cars Quick Buy platform is an independent, secure, e-commerce platform that was developed from the ground up to easily integrate into any dealership’s website and will allow buyers to seamlessly go from shopping for a vehicle to completing the purchase, all online.
Contact David Martin 800-996-1952
WHEN YOU KNOW YOUR COMPETITION’S NEW VEHICLE INVENTORY BETTER THAN THEY DO,
THEY’RE NO COMPETITION AT ALL.
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