AutoSuccess October 2016 by AutoSuccess

2016

OCTOBER

IT’S HERE! RECON REPORTS

Rapid Recon Reporting Now Available to Help Dealers AN INDUSTRY BREAKTHROUGH

“Our tools now address the needs of every new & used dealer at every level from daily actions to weekly and monthly results allowing dealers to operate at a 3-4 day turn.” Dennis McGinn, founder and CEO of Rapid Recon.

Get daily, weekly and monthly reporting on employee activity, step times, holding costs and Time-to-Market metrics.

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Call, Scan the QR Code or Visit our Website RapidRecon.com • 650-490-4460

Can you handle moving UP TO 15 or more EXTRA units this month? Ideal Direct, in partnership with Experian Automotive, now offers live credit driven data.

Targeted Direct Mail • Experian’s Exclusive “In the market model” – This list actually pin-points prospects in the market for a car. If you are looking for great lower tier prime and sub-prime prospects, this list works. We have had dealers sell over 40 units in a month. • Campaigns start as low as $.65 a piece.

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10 LatifQafri STAFFED EVENTS: A “Go Go or a “No No”? 30 NathanUsher CHANGE MANAGEMENT: The “Upward Climb” With New Dealership Tech AdamRobinson

HOW ILLEGAL INTERVIEW QUESTIONS HURT YOUR DEALERSHIP

“For employers and candidates alike, the in-person interview stage is both a stressful event and one meant to effectively highlight the job seeker’s qualities and qualifications. If you don’t have a documented, reproducible interviewing strategy, it’s likely that you’re falling into the trap of asking the wrong types of questions.”

Dave Davis, Editor & Creative Strategist ddavis@autosuccessonline.com

36 NateTallarino III RECALLS CAN JAM UP YOUR LOT — ARE YOU COVERED? DennisMcGinn THE ESSENTIAL FABRIC THAT HELPS TRANSFORM RECON CENTERS: How to Weave 38 Threads of Commitment Into a High-Energy Reconditioning Fabric for Success 40 DalePollak FOUR USED VEHICLE FUNDAMENTALS TO HELP STAY STRONG AS FALL UNFOLDS 44 DealerPanel KEEPING UP WITH THE TIMES: Keeping Current With Customers, PART 2 sales & training solutions

ALL IN: Five Game-Changing Tips to Deliver the Ultimate Customer Experience

JordanBentley

THESE SCARY SITUATIONS CAN DAMAGE YOUR DEALERSHIP LONG AFTER HALLOWEEN

18 AllanTone DOES YOUR DEALERSHIP PRELOAD VEHICLES AND USE ADDENDUM LABELS? 20 TimJames DON’T JUST TARGET — VIDEO RETARGET FOR BETTER CAMPAIGN RESULTS LarryBarditch

CLICK OR TREAT: Three Ghoulish Tricks for Better PPC Results

26 BryceVeon HOW TO ENGAGE AND WIN THE LUCRATIVE MILLENNIAL AND iGENERATIONS 34 DavidMetter NOW OPEN, THE AUTOMOTIVE APP STORE: The Open App Approach to Uniting an Industry

Hannah Philpott, Media Director hannah@autosuccessonline.com

marketing solutions

Susie Horne, Account Manager John Warner, Sales-Improvement Strategist shorne@autosuccessonline.com jwarner@autosuccessonline.com

“While ghosts in the service department, skeletons in cars and superheroes in the showroom might sound like a good time one day of the year, there are some other scary situations your dealership might face long after Halloween ends that could send your leads running to your competitors.”

Brian Ankney, Account Manager brian@autosuccessonline.com

08 SusanGivens USING THE TOOLS AVAILABLE TO YOU: Today’s Tech Allows for Instant Improvement 11 JackGarrity EXPECTATIONS! BarathAshokkumar & AnandSethuraman VEHICLE E-COMMERCE: Why Would Today’s Dealers Stay 16 Relevant in the New Sales Dynamics? 28 JoeyLittle

Thomas Williams, Creative Director design@autosuccessonline.com

leadership solutions

2300 Hurstbourne Village Dr, Suite 1200 Louisville, KY 40299 / p 877.818.6620 / f 502.588.3170 / AutoSuccessOnline.com/AutoSuccessPodcast.com / info@autosuccessonline.com

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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SusanGivens

publisher of AutoSuccess \ sgivens1@autosuccessonline.com \

@SGivens02

USING THE TOOLS AVAILABLE TO YOU: Today’s Tech Allows for Instant Improvement

Stop, for a moment, and consider the technology that you most likely have on you at this very moment. In addition to being your telephone, instant messenger, camera, music player, podcast catcher and occasional flashlight, that computer in your pocket can provide you with tools to help you connect with customers, develop as a professional and grow your business. Throw a tablet into the mix, and you’ve got a mobile computing platform that was purely science fiction just a few years ago. On The Job

Mobile CRMs — Information that would have been locked into your desktop computer (or the company’s mainframe computer) can now be accessed from your palm. Most CRMs offer a mobile option that allows you to input a potential client’s information while you’re out, pull it up on the fly and allows you to break the chains that bind you to your desk. Online Automobile Information — Consider, for a moment, that you can never be caught off guard by a customer’s question when doing a

08 autosuccessonline.com

presentation or a test drive. While being able to pull information out of your own memory is always preferable, a quick search of information available to you on your mobile device straight from the manufacturer will answer any questions the customer has and will reinforce your image as a knowledgeable professional. Contacting customers — While a telephone call can be a great way to connect with your potential customers, sometimes seeing is believing. In your hand is the potential to speak face to face with customers via Skype, FaceTime or other telecommunication software, along with the ability to provide video of specific vehicles, either live or via email. Professional Development

Skill Building — there are a number of online educational opportunities, from courses in specific software programs to marketing to photography to leadership and beyond. Check out courses from Lynda.com, SkillShare.com, udemy.

com and others that can be viewed on your desktop, tablet or phone at your convenience. Software Training — Most software vendors will provide information, training and tips on effectively using their products. While you might think you know everything there is to know about the software you use day in and day out, you might be surprised to find some shortcut or functionality you didn’t know existed. So, whether you’re an expert or just getting to know the tools you use for a living, take a look at the vendor’s site and make sure you’re up to speed. Other materials — Thanks to podcasts, blogs and online magazines (I’d be remiss if I didn’t mention that you can get this magazine on your phone by texting “AutoSuccess” to 72727), you can constantly brush up on your skills during any break or downtime. Keep your mind active and keep your skills fresh. The tools that you keep on or near you can set you apart from the competition if you just use them. They’re literally at your fingertips.

ls leadership solution

LatifQadri

owner & president of The Best Direct Group \ lqadri@autosuccessonline.com \

@LatifQadri

STAFFED EVENTS: A “Go Go” or a “No No”?

In the fourth quarter, forecasting becomes tougher with seasonality and holidays. You never know when that blizzard or hurricane can hit, so it is always good idea to reserve a staffed event — either as an avenue to move old inventory, get that shot in the arm to make up a deficiency in sales tracking or get a little more than your fair share. Staffed events can often have the greatest impact in months with the greatest uncertainty. With many dealerships, the idea of utilizing a staffed event carries with it an uncomfortable stigma in even the most certain of months. In order to sell yourself on the concept in the fourth quarter, try using the old Ben Franklin close. On one side of the paper list the pros, and on the other side list the cons. This is how it typically washes out:

of delivery where the dealership’s business manager reviews the sales transaction and, most important, fills out the “we-owe” or due bill with the customer. As far as the unknowns, set and manage your expectations. Again, it is your dealership and you can control the unknown factors.

PROS

CONS

Higher PVR

Chargebacks after sale

Incremental traffic boost

The unknowns:

Sell a lot of units in a short period of time

• How will they treat my customers?

Liquidate old-age inventory without a loss

• Are they dependable and organized?

Massive increase in back-end product

• How will the sale turn out?

penetrations and PVR Enhance staff morale through the increase in sales opportunities Fixed operation growth Massive amount of leads to follow-up after event

Admittedly, there are a lot more pros, but they are easily torpedoed by the cons. However, it’s your dealership — control the controllable. Concerned about chargebacks? Conduct an exit interview in the finance office at the time

10 success-driven solutions

“Admittedly, there are a lot more pros, but they are easily torpedoed by the cons. However, it’s your dealership — control the controllable.”

Demand that the company you partner with address your concerns before you schedule an event. A good partner will have made it a standard business practice that the day prior to the event their team will meet with the staff at the dealership for sale setup. They should also meet directly with the dealer or executive management staff and encourage them to review store policies, from where to park to the dealership’s mission statement to the car wash process at time of delivery. It may sound simple, but it works. The key is to let the team know what the standards in your world are and that they are not up for negotiation. We went through this process with our first and longtime client at the onset of our business relationship and we did great business for years until he decided to sell the store and ride off into the sunset. This is what he told me about his experience with the success of staffed events: “In our depressed, coal-reliant economy, over a two-year period we consistently sold over 80 cars per sale with zero problems, enabling me to sell the store for much more than the market predicated.” In closing, as with any endeavor that may affect your business, do your due dilligence — call all available references, check the BBB, review the depth of their Website, check out their social media, Google them and make sure to clearly set parameters when you get ready to kick off. Good selling!

s&ts sales & training solution

JackGarrity

partner at Dealership for Life \ jgarrity@autosuccessonline.com \

@Dealership4Life

EXPECTATIONS!

An expectation is something we think about but maybe unconsciously take for granted in establishing our dealership’s culture, or the way we conduct business on a daily basis. Do we really take the time to fully understand exactly what this word means? We should, because it is an important key to our success as an automotive retail dealer.

among the competition if you look around at the opportunities you have to earn your customer’s business and create more opportunities to increase your existing profit centers.

Consider that, at birth, even a baby has expectations — they expect to be fed, have their diapers changed and to be held and spoken to. Once starting school, the same individual has the expectation of a decent education, a roof over their head and food on the table. As we become adults, we learn to have expectations about life and everyday tasks. When you go to an airport, you expect to get on a plane, leave on time and arrive safely at your destination. Eating out, you expect your waiter to be knowledgeable, considerate and provide you with exceptional service. You expect all businesses to treat you with respect and appreciate your business. If at any time your expectations (real or imagined) are not met, you find alternatives. Most often, this means you go to another business that meets your expectations.

very similar to all other dealers in your market. Your very existence depends on your employees stepping up every day and doing what is expected to perform in your business culture.

A simple solution to truly exceed your customer’s expectations and wow them with how different you are is to supply them with a package of benefits that you will provide as a part of obtaining their business, making their ownership experience a safe, economical and rewarding one. These benefits can be as basic as complimentary car washes, oil changes, tire rotations and inspections. Coupled with an ongoing rewards program that gives your customers a reason to return to you for all their automotive needs is a winning formula and will exceed their expectations. When you do these things, you have moved the customer experience at your business to another level — a level that truly makes you different and gives your sales customers more reasons to return to your dealership and allows you to provide everything they need during their period of ownership.

In the automobile retail business, it is the same. Our customers have expectations. The ones we are all familiar with are that they can find the vehicle that suits their needs, get a competitive price, a fair appraisal on their trade, and be treated with respect and appreciated. We know that, when any of these expectations are not met, you most often miss the opportunity of doing business with this customer. If you are a dealer, you know all this and you strive every day to meet these expectations. In other words, you are

“When you do these things, you have moved the customer experience at your business to another level — a level that truly makes you different and gives your sales customers more reasons to return to your dealership and allows you to provide everything they need during their period of ownership.”

The question is, how do you set yourself apart from all the other dealers? We think about this daily and are always searching for the “next best thing.” The only way to be really different is to exceed expectations. Accomplishing this task is an ongoing quest for most dealers. If the dealer down the street puts in a car wash, you have to have one. If they install a playground for kids, you have to also install one. This is a constant titfor-tat that has existed since Henry Ford started building vehicles. The only way to be really different is to exceed the customer’s expectations. The solution is very simple, and it’s right under your nose. You have the means to truly stand out

success-driven solutions

We are in the fourth quarter of 2016 â&#x20AC;&#x201D; is your dealership delivering the units you anticipated? Are your net profits in line with annual projections? Are all of your salespeople averaging 18+ units per month? How would you rate your client satisfaction? Your online reputation? Is your dealership flooded with repeat business and referrals, or have you hit a point of diminishing return on the opportunity? These questions drive home a critical point of concern: How do you get your dealership to operate at its full potential? In order for you and your dealership to get out of the lane of mediocrity, close out 2016 strong and storm into 2017, it is critical to pay attention to this article.

You have a profound opportunity to recalculate your GPS for success. There is no magical success potion; you have complete and total control over your earning potential. Automotive professionals in all dealership sales capacities have advanced technology at their fingertips to create a significant competitive advantage for both individual and dealership-wide success. The future is now; we have 3D printers, self-driving vehicles, augmented reality and other immersive technology solutions. The automotive industry is not without its own advanced technology solutions for increasing dealership output to levels otherwise unimaginable. Dealers who are actively using the BradleyOnDemand and/or Money Mind Mapp platforms are seeing profound success. These tools are single-

handedly assisting dealers in reducing attrition, increasing gross volume and most importantly, net profits. BradleyOnDemand is a comprehensive, cost-effective training, tracking and certification platform. Users on this platform are able to access the following types of content on demand: showroom sales, Internet sales, phone sales, appointment setting strategies, marketing and advertising strategies, reputation management and prospecting techniques, just to name a few. BradleyOnDemand’s virtual training platform not only allows for “anytime” access, but dealership leadership can also monitor usage statistics, assign training modules and use certification paths as tools to indoctrinate, train/re-train, promote, demote or terminate. Alternatively, Money Mind Mapp is a projection, forecasting, and accountability tool that automotive professionals use to map out both individual and dealership-wide sales goals. Users on this platform can effectively identify their monetary needs by “breaking out” fixed costs, situational costs, living costs, incidental costs and investments. Aside from identifying the baseline financials, users are also able to factor in their tax liability and their ACPC (Average Compensation Per Copy). These resources provide the roadmap for sales professionals to project

where they pull their units from (eight ways to sell a car), as well as a tool to track all incoming and outgoing daily opportunities. Sales professionals who utilize these two tools stand out head and shoulders from their peers. Consider the sales professionals who are selling from 30 to upwards of 60 units per month and generating gross revenues of $200,000 to half a million dollars off of the showroom floor. An example of one such sales professional is Tammie LeBleu, No. 2 Nissan Sales Consultant in the country. She delivered 47.5 units in a month, 400.5 in a year, and generated $390,000 in a year in Bossier City, Louisiana. Revenue opportunities like this example are commonplace in our industry. Dealerships are also benefiting from technology advances in the automotive industry. Route 4 Cars in New Jersey went from selling 75 units per month to 289 units per month from their Internet department at $2,300 per copy. In the simplest terms, those numbers represent approximately an $8 million Internet sales department. Utilizing the next evolutionary tool in automotive sales, Route 4 Cars grew from $2 million to $8 million in only one year. The next evolution in automotive sales are technology-enabled resources for the automotive sales professional and the dealership. Think “Cyborg” or consider Iron Man’s suit: part-man, part-technology.

The more accurate analogy would be virtual logic or artificial intelligence. The synergy that develops out of this relationship has the capacity to result in mind-numbing potential earning opportunities. The playing field is currently leveled — are you ready to be upgraded? In the 2015 Dealership Workforce Study, NADA found that the turnover rate for sales consultants rose from 66.3 percent to 71.9 percent. Sales roles at dealerships experience a one-year retention rate of only 60 percent and a three-year retention rate of 32.8 percent. Aside from much of the turnover resulting from ongoing industry changes applying pressure to sales staff earnings, many dealerships do not apply the right amount of attention to developing employees via training and mentoring. To combat the industry changes, sales professionals must learn to treat car sales like their own business. In order to realize this paradigm shift, sales professionals must have expertise more expansive than only “the road to the sale and product knowledge.” Virtual training platforms like BradleyOnDemand can greatly reduce the excuses dealerships use to cut costs on training their staff. It is important to note that virtual training is more than just training. When considering tracking, testing and certification as parts of the training solution, the disparity between YouTube and viral videos in comparison to on demand training is expansive. Although much can be learned through alternative video sources, a lack of instructional design and accountability ultimately makes non-on demand video content more of an entertainment source versus an educational one.

Another advantage of virtual training is the “interactive” component, which provides specialized content to the user on the virtual platform. In short, on demand training is designed to not only train your team, but create full accountability, as well. Consider the on demand training solution as an “online university” at the OEM level with focused, fresh and relevant content.

A “Universal Soldier” or a car sales professional in a dealership today needs to not only be proficient in traditional sales, but should also be their own Internet department or BDC. Furthermore, this “Cyborg” takeover can transform both BDC departments for Service and F&I into a superhero-like organization. Ultimately, your dealership can be transformed into a team that can rival the Avengers lineup. Training alone is not enough. The Money Mind Mapp aids sales professionals and dealerships at large with proper projecting, forecasting, action plan creation and daily, weekly and monthly tracking. Any resource that has the power to revolutionize how the sales professional conducts business has to make your salespeople want to use the tool. Most dealerships struggle with technology, hence the reason that the majority of CRMs and DMSs are not providing the maximum value they were intended to have. The Money Mind Mapp makes the process about the sales professional, so that they develop an obsession — it’s all about them. Technology solutions must be centered around their success, their money, their opportunity and their evolution. Don’t accept mediocrity. Waiting for things to “magically” change or improve is the wrong approach. Proactivity is the path to ultimate success. In order to close 2016 strong and continue to dominate in 2017, you need to start utilizing all the current technology solutions at your disposal. Become the next evolution in automotive sales.

For more information go to: www.DealerSynergy.com/Recalculate-Your-GPS-For-Success Or, if you want a free test drive on either BradleyOnDemand or the Money Mind Mapp, please call 267.319.6776 or email me at seanb@dealersynergy.com today.

On becoming another TurnKey Marketing client officially recognized by Facebook as a Social Advertising Success Story.

Elevate Your Social Today!

See TurnKey Marketing speak at the

DrivingSales

EXECUTIVE SUMMIT OCT 23 | 3:50pm

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BarathAshokkumar

AnandSethuraman

auto domain consultants for Infosys \ infosys@autosuccessonline.com \

@Infosys

VEHICLE E-COMMERCE: Why Would Today’s Dealers Stay Relevant in the New Sales Dynamics?

The biggest revolution currently underway is taking place neither in the manufacturing plant nor in the innovation labs, but in people’s living rooms. What started off as a demonstration of online shopping systems in 1979 has now exploded into a world of e-Bays and Amazons. With every kind of retailer making its presence felt on the Web, the new generations are getting more and more spoiled by the idea of buying what they want anytime, anywhere. Traditional — But Still Relevant

Dealerships might look outdated in the future model of e-commerce, but a closer look reveals dealerships continue to be the place where the buyers can physically interact with the vehicle, and remain a significant profit center in vehicle delivery and associated after-sales service. This is emphasized by the fact that 80 percent of the buyers want to physically interact with the vehicle before buying. In spite of its much-emphasized relevance, the emergence of online auto marketplaces has significant push back from the existing strong dealer systems. “The car industry is one of the most conservative, least evolutionary marketing clusters in global business,” said Alain Visser, senior vice president of marketing, sales and customer service at Volvo. “For decades, car marketing has been following a certain pattern which is followed by the entire car industry.”

Benefits for the Dealer

The benefits for the dealers are far and wide, with one of the biggest advances showing up in the dealer’s “satisfaction index.” Online sales bring with them no haggle, along with transparency in pricing. In the words of a Lexus sales consultant, “(The customers are) happy as heck. The fear level is gone. The anxiety is gone.” “We were always the person behind the curtain. We were the bad guys,” said a GM at a dealership referring to sales consultants. The pressure to convert and almost unending haggling in the traditional sales model had its own effects on sales consultants, leading to high attrition rates. Studies have shown that sales consultants have accepted the new sales process with open arms, clearly reflected in near-zero attrition rates.

The vast majority of customers around the globe shop online. Rather than going from dealership to dealership, car buyers now go from Website to Website. The Web breaks the physical barriers by opening up new avenues for dealers to reach new But now, the ball is rolling. customer segments, supplementing its already• Approximately 79 percent of all buyers used existing physical dealership segments. The Web the Internet to shop for cars. • Every five minutes, a used car or truck is sold also provides an opportunity to conduct highly targeted ad campaigns, having far-reaching on eBay Motors. effects on lead-to-sale conversion ratio. • Existing models are challenged by sites like Beepi and Carvana. Access to real-time customer behavior is a • Roadster acts a middleman between the huge advantage for the online model. From dealership and the buyer, handling most customized homepages to customized offers, of the sales process online, completing the the potential to use real-time data is almost paperwork and delivery to the customer’s unlimited. Today, the lack of real-time preferred location. availability of data has forced one of the largest • AutoNation’s $50 million investment is an OEMs to use three-month-old data. In a fastexample of how the industry is moving to paced world where changes are so quick to align with the online shopping trend. happen, the benefit of using data for analytics would help the dealer stay relevant to the • OEMs like GM, Toyota and Volvo and current market trends in inventory planning, dealers like Autonation and Sonic are advertisements and even sales promotions. exploring ways to sell cars online. Most of these facts point to a redefinition of the existing traditional dealership and the necessity of easing the cumbersome shopping experience at today’s dealerships. The vehicle e-commerce can be defined as a process that not only has an exchange of money and goods and services, but also one that encompasses the entire buying process, with dealer being at the fulcrum of it.

16 autosuccessonline.com/podcasts

Moving vehicle sales online brings muchneeded information availability and transparency — the “one price” strategy — to the whole vehicle buying process. Also, the significant reduction in transaction time — including billing, insurance and finance — through online sales will go a long way in minimizing the painful waits for the customer

in the vehicle buying process. “Selling almost entirely from stock in the U.S. generates both higher stocking costs and more lost revenues,” said Ben Waller, associate director of ICDP, an automotive distribution research group in the United Kingdom. In the U.S., vehicles today are built-to-stock in order to provide buying options to customers and to cater to their impatience. For dealers, that means thousands of dollars in extra floor-plan expenses and huge advertising costs, and for OEMs, it is huge expense in the form of inventory holding. Availability of realtime demand data goes a long way in solving the problem, providing a better predictive model to manufacture vehicles in tune to the demand and also avoiding the need to stock large amount of vehicles in dealerships. It is predicted that more than 10 percent of vehicle sticker price could be saved in this way. Online sales opens up an avenue for price war, which is one of the biggest reasons dealers are so hesitant with this new model. A study of the 15 top dealerships in U.S., however, revealed that, while car sales contributes to 60 percent of revenue, it only contributes to 15 percent of dealer’s bottom line. Contrary to the belief that sales going online would have a major impact to the bottom line, it actually would have minimal impact. “The dealer might actually make slightly less money per unit using this new process, but because their volumes have gone up, their overall profit has gone up. From that standpoint it might very well help them,” said Tom Liby, senior forecasting analyst at Polk referring to initial results from GM going online. The increased sales would have a positive impact on F&I, after sales, service and spare parts sale, which together contribute to 60 to 70 percent of dealers’ profit, increasing the bottom line of the dealership. This is analogous to the case of a printer manufacturer, where printer sales have minimal impact on profit while the cartridges make the significant contribution. The online sales model would transform a dealer into a “Showroom at the Doorstep,” and the seamless availability on mobile devices would make it a “Mobile Showroom,” giving the customers the muchneeded comfort and a hassle-free experience. A decade ago, Dell revolutionized the way laptops were sold. They went online and also undercut the prices, not to lose but to gain and become a market leader. A similar opportunity is knocking the doors of the automotive world and dealers are in the best position to seize the opportunity.

Chuck Olsen Boucher Automotive Group Corporate Sales Manager

Bobby Holmes VinSolutions Performance Manager

Software always promised success.

Software alone doesn’t make you successful. That’s why our software comes with a Performance Manager … an automotive expert who thinks like a dealer and acts like a personal extension of our Connect CRM. Together, you and your Performance Manager will define your dealership’s opportunities and make sure Connect does what you need so you get the results you want.

Personal support for personal success.

Schedule a demo today at vinsolutions.com/connect or 877.786.3450

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AllanTone

CEO of Dealer Addendums \ atone@autosuccessonline.com \

@DealerAddendums

DOES YOUR DEALERSHIP PRELOAD VEHICLES AND USE ADDENDUM LABELS?

Do you preload vehicles and use addendum labels? If so, there are a few things to keep in mind to accurately and professionally present options you offer your clients in this socially connected world. Before we begin, I want to clarify that I am not an attorney and you should consult your legal counsel for direction on these matters. These are just a few of the challenges I know my dealerships have encountered, and it’s always good to learn from their experience.

Ranked #1

in Dealer Satisfaction Two Years in a Row “We congratulate Autosoft on being recognized as one of the best-of-the-best by the people to whom their services count the most—the dealer community.” - DrivingSales CEO and Founder, Jared Hamilton

Recently, a few of the dealerships I work with have been asked by their applicable Secretaries of State to remove addendum labels where vehicle options were displayed as a package with just one price for that package. The best practice is to, instead, list each item or option in the package, and then itemize each item and option so the price for each is explicit and clear to the consumer. Listing the retail prices for each item and then using a package price to add to the MSRP is OK, but every option needs a value associated with it. Another pitfall to avoid is allowing a discrepancy between the “Internet price” for a car on your Website that includes discounts and rebates and the “Lot Price” found on the addendum label, with no discounts or rebates but with options pricing added. This second concern is most often covered with a Website disclaimer, but in a socially connected world, consumers may note the difference and lodge a complaint. In the end, the disclaimer isn’t always enough. The best practice is to add the addendum information to your Website alongside the Monroney window sticker pricing and check to make sure they match. In most state motor vehicle advertising codes, I have noted this language, “… the dealership addendum form shall not be deceptively similar in appearance to the manufacturer’s label....” Again, I am not an attorney and you should consult with your legal counsel for clarity around these matters, but it seems like a good idea to use an addendum label with your logo on it to avoid inadvertently mimicking the Monroney window stickers.

18 read, listen, watch, share, succeed.

One final tip for best practices around addendum labels has to do with the prevalent use of handwritten addendum labels. There is a better way to both ensure accuracy and professional branding. Handwriting addendum labels is a laborious practice. Unless you hire your third grade teacher, handwritten addendums characteristically look unprofessional and they wind up giving your customers the impression that the information is arbitrary and negotiable. Also, handwritten labels tend to fade quickly, which only makes things worse. Type them, print them off your computer, hire a service or get a software program — but avoid handwriting your addendum labels. Marketing and branding is essential these days; present your very best with a clean, accurate and professional addendum.

CONNECT THE DOTS TO INCREASED REVENUE. WE’RE THE ANSWER. In a business world filled with distractions and chaos, there is one thing that is critical, and that is to connect. When you connect with your customers, you do more than talk, you create a positive customer relationship that leads to continued business and repeat revenue. When you connect open slots in your shop to customers needing repair, you’ve created a great customer experience, and more revenue. And when dealerships connect to the most relevant information on a customer’s vehicle captured through our process, business intelligence has now connected you to even more revenue. Begin connecting today by engaging Traver Connect’s robust Automotive Service BDC. Now, every service call will be answered, OEM recommended services will be presented, and an increase in service appointments will be made. This Service BDC helps absorption, increases your average repair ticket, and enhances your overall customer experience.

To connect is to succeed, and we will help you do it. Afterall, ‘connect’ is our last name.

For a free phone survey, contact us today: 855.891.0010 • TraverConnect.com

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TimJames

chief operating office for FlickFusion \ tjames@autosuccessonline.com \

@FlickFusion

DON’T JUST TARGET — VIDEO RETARGET FOR BETTER CAMPAIGN RESULTS

Retargeting is a hot trend in online advertising these days. Retargeting (also known as remarketing) campaigns serve ads up to customers who have previously engaged with your Website. When customers leaves your Website, retargeting ads appear to them as they travel around the Internet. The purpose is to keep your brand and products in front of prospects, with the goal of luring them back to your Website. Retargeting is popular because it works. Customers who have already visited your Website tend to be further down the sales funnel. Retargeting keeps your brand in front of these people and, most important, increases conversion rates at a relatively low cost, compared with PPC campaigns. Digital marketing experts know that when it comes to online ads, images deliver better results than text-only ads. If you want to take your retargeting campaigns up another notch, the next step is video ads. Rich media ads with video generate nine times as many post-click Website visits as standard banner ads, according to MediaMind. For dealerships, the best platforms to create retargeting campaigns on are the Google Display Network, Facebook and YouTube. When creating a retargeting campaign with video ads, there are quite a few metrics you can measure, but don’t let that overwhelm you. The three most important metrics to pay attention to include: • Video Completion Rate/Total Views — The completion rate measures the percentage of times a viewer watched your video to the end. The higher your completion rate, the more engaging your ad is. If you get low video completion rates, you want to focus on the content and quality of your video ads. An average industry benchmark for video completion rates is around 77 percent (excluding skipped ads). • Click-Through Rate (CTR) — The clickthrough rate (CTR) is the total number of clicks on your video ad divided by the number of people that the ad was served to. If your goal is to drive more people to your Website or click through to a video landing page, CTR is the right metric to look at and optimize for.

20 autosuccessonline.com

The higher the CTR, the more engaged viewers are with your content and the more interested they are in learning about your business and products. Tracking this over time gives you a good overall sense of how well your campaign is performing. • Cost Per View (CPV) — Instead of cost per click, with video ads you get charged for cost per view (CPV). How much you pay will depend on the platform you’re advertising on. Google and YouTube have a TrueView option so you only have to pay for users who watch your entire video ad, or for a minimum of 30 seconds, whichever is less. This gives you a pretty accurate CPV. Facebook on the other hand, charges advertisers by the view and starts counting views after a video has played for three seconds. This may not sound like much but according to research from Nielsen and Facebook, watching just three seconds of a video lifts ad recall by 47 percent and brand awareness by 32 percent. If you’re running retargeting video ads on Facebook and other social sites, your goals will be different, so you’ll want to track some additional metrics. In a report by Mixpo, digital agency professionals ranked “engagement with interactive elements,”

“shares” and “conversions” as the three metrics most important to them, even above CTR and completion rates. When creating video ads for retargeting, the most important tip for success is to ensure that a play button or arrow is visible on the ad. This makes it easy for people to recognize that it’s a video versus a still image. Another important tip is to choose a thumbnail that evokes emotion or curiosity. Thumbnails featuring peoples’ faces always perform well. But if a viewer has been looking at a particular vehicle on your site, you may want to retarget that person with an ad featuring that exact piece of inventory. If you’re concerned that creating video retargeting ads is expensive, don’t be. You can get creative on the cheap and buy a video clip from BigStockPhoto.com, hire a voice talent from Fiverr.com and, for less than $100, you have a video. Just remember that relevancy is the key, so when you retarget visitors to your Website’s vehicle display pages (VDPs) featuring your existing inventory videos, you are presenting the most relevant video content to your shoppers without having to produce any additional video content. Video retargeting is the next logical step to take if you want to boost results from your existing retargeting campaigns. Video ads are still somewhat of a novelty, so dealers who take the plunge first stand to benefit the most.

“Video retargeting is the next logical step to take if you want to boost results from your existing retargeting campaigns. Video ads are still somewhat of a novelty, so dealers who take the plunge first stand to benefit the most.”

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LarryBarditch

area vice president of sales for Horsepower 360 \ lbarditch@autosuccessonline.com \

@hp3sixty

CLICK OR TREAT: Three Ghoulish Tricks for Better PPC Results

All advertising inspires additional online research. The challenge is how to influence consumers as they enter keywords and navigate through search engine results. Text ads are just one of the many moving parts in a successful PPC strategy — but they are an important component. A combination of PPC best practices and creativity will lead to highly effective ads that drive qualified leads and generate a return on your investment. Since all consumers search differently, you need to create a well-thoughtout PPC strategy incorporating eye-catching headlines, well-structured ads and specific calls to action. And your most important KPI (key performance indicator) should be your CTR (click-through rate). Sure, impression share is important, but if you can’t generate clicks, your ads are not speaking to your consumer. Google is always moving the needle, so you need to make sure you’re always up to speed on the latest changes. Recently, Google just introduced new ad formats that allow more for storytelling. The new formats includes two headlines of 30 characters each rather than the previous one headline of 25 characters. The description section also now offers one 80-character line versus the previous two separate lines of 35 characters each. Tip No. 1 — Design better ads

Top-converting PPC ads emphasize your unique selling proposition and calls to action. There are several tricks to designing better ads including using stronger verbs, adding punctuation and providing provocative language.

Breaking Down Barriers to Digital Car Sales

Stronger verbs: I’ve seen an increase up to 150 percent in CTR by using action verbs in my ads. Using words that describe how much money they can save, providing instant gratification (i.e. live chat) or including a bonus offer with ad can make you stand out from the crowd.

Add punctuation: With the new elongated format of headlines, using punctuation can help create a complete thought, pulling words together into a full sentence. (i.e. “Seven out of 10 drivers recommend the (make/ model) for safety and reliability.”)

“Being provocative is a way to grab people’s attention without going so far as to offend them. The use of provocative language is a common trait of high CTR ads. Using words like ‘free’ or phrases like ‘Only _ days Left…’ or ‘Stop wasting money…’ can double your CTR.” Provocative language: Being provocative is a way to grab people’s attention without going so far as to offend them. The use of provocative language is a common trait of high CTR ads. Using words like “free” or phrases like “Only _ days Left…” or “Stop wasting money…” can double your CTR. Tip No. 2 — Create High-Conversion Landing Pages

PPC landing pages are the final step in customer acquisition. They are where all the adwords hard work pays off — or fails. Landing pages should fulfill the promise of your ads. Clicks are the initial goal of your PPC ads, but conversions happen on landing pages. If a consumer is looking for a specific make/model price you advertised in a PPC ad, redirect them to a landing page that highlights that specific vehicle, listing all the features, benefits and price. Sending that consumer to your homepage or an SRP page listing your entire inventory will lead to a sure-fire “bounce” from your Website. Landing pages are also a main component in your quality score. Digital marketing professionals put a lot of emphasis on quality scores because good scores improve ad rankings and lead to lower costs. Landing pages connected to your Google analytics will also provide you with great intelligence on page views, exit paths, time on page and conversions.

Tip No. 3 — Automate your

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Used Car PPC campaign Successful dealers are constantly turning used inventory — taking in new trades, sending vehicles to auction and selling used cars. Manually creating, deleting and updating used car ads would be the definition of insanity. iSEM (inventory search engine marketing) programs can automate your campaigns as inventory enters and exits your DMS. You no longer have to worry about inefficiently advertising used cars that were sold weeks ago or not yet properly merchandised. iSEM programs can also display core vehicle inventory levels and pricing in PPC ads (“15 Used Camrys in-stock, starting at $4,995.”) If you would like a free PPC evaluation, please contact me at the address above.

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BryceVeon

president & CEO of Autosoft \ bveon@autosuccessonline.com \

@Autosoftdms

HOW TO ENGAGE AND WIN THE LUCRATIVE MILLENNIAL AND iGENERATIONS

Imagine you send and receive as many as 3,000 text messages a month, but make and receive fewer than 150 phone calls. Imagine you read reviews on blogs and other social media platforms before a purchase instead of asking the opinions of friends or family. Imagine you share virtually everything that happens in your life on Facebook, Snapchat or Tumblr. Can’t picture it? That’s probably because you’re not a Millennial or part of the iGeneration. Yet, these generations present an enormous and exciting opportunity for your dealership. Their numbers make the Baby Boomer generation look tiny, and their spending power is huge: more than $200 billion a year by 2017 according to Forbes. Surprisingly, the auto retail industry lags behind in appealing to these multi-billion dollar demographics, perhaps because many dealers run family-owned generational businesses and have little reason to question previous decisions, or maybe because they just don’t know where to start. That’s a problem, because these generations are changing the face of vehicle buying and servicing. Who Are These Buyers?

To win the business of Millennials and the iGeneration, you first have to understand them. Millennials are commonly defined as those born between 1980 and 2000. They’re often referred to as “digital natives” because technology has always been at hand for them. They’ve seen it all when it comes to marketing, and consequently, only 1 percent say a compelling advertisement would make them trust a brand more, according to Forbes. They’ve grown up on social media and trust it, to the point where Forbes found that 33 percent rely on blogs before they make a purchase, and 62 percent are more likely to become a loyal customer if a brand engages them on social networks. Research also shows that their values have been influenced by events like 9/11 and the Great Recession, which perhaps accounts for why up to 75 percent say it’s either “fairly” or “very” important that a company give back to society instead of just making a profit. The iGeneration (also known as Generation Z) is commonly defined as those born between 1994 and 2004. Like Millennials, they’re digital natives, constantly connected and defined by their love of electronic communication (no wonder their name is derived from Apple’s popular products). A 2015 study conducted by Worldcom Public Relations Group partners, Schneider Associates

26 autosuccessonline.com/news/blog

and The Pollack PR Marketing Group, found that this generation, more than any other, requires information on demand and is inclined to trust the advice and opinions shared freely on social media platforms. Both generations are progressive with technology, prefer to research and shop online,

are constantly scrolling through news feeds and watching videos on YouTube. In fact, a 2014 Most Memorable New Product Launch survey conducted by Schneider Associates marketing group found that almost 50 percent of iGens turn to YouTube to learn about new products, compared to only 25 percent who read emails from brands. Videos, photos and social media posts go a long way towards bringing them to your dealership. Use mobile — It’s no surprise that these digital natives prefer a technology-based dealer experience. According to a 2015 J.D. Power

“Surprisingly, the auto retail industry lags behind in appealing to these multi-billion dollar demographics, perhaps because many dealers run family-owned generational businesses and have little reason to question previous decisions, or maybe because they just don’t know where to start. That’s a problem, because these generations are changing the face of vehicle buying and servicing.” and come to your dealership armed with pricing information, ready to buy on the first visit. That presents two challenges: How do you get these lucrative generations in your store, and then, how do you keep profits up when you don’t have a lot of room to negotiate on price anymore? How Do I Win Their Business?

Adjusting to these preferences and habits, you can win your share of this lucrative market and gain a steady revenue stream for years to come. Companies marketing successfully to these generations incorporate some or all of the following tactics: Personalize everything — Many call these generations the “me” generations, partly because they are so intent on feeling unique. That’s why a hyper-personalized customer experience is important. A marketing platform that segments your customers and draws on data you already have will help you know your customers and what they need, so you can send timely, relevant communications.

study, dealerships that used tablets as part of their sales and F&I process achieved greater customer satisfaction than their old-school competitors. You can incorporate mobile technology throughout the buying experience, from configuring a vehicle, to payment options, paperless contracting, menu selling and afterpurchase service appointments. Incorporating technology is a huge plus for your dealership. Focus on selling an experience — It’s difficult, if not impossible, to sell purely on price these days when all the information on the Internet limits your negotiating power. Instead, sell the experience of your store — whether that’s a completely mobile buying process, a service center that uses license plate scanners to greet customers by name and instantly access service records, or a waiting area with virtual reality vehicle simulators. Whatever you do to surprise and delight your customers should be prominent across your marketing channels. Conclusion

Millennials and members of the iGeneration are a whole new type of buyer — digital natives schooled in constant connectivity, who expect from companies the instant information, convenience and real-time engagement they’ve become used to from the Internet. Dealerships that take the time to understand what motivates these generations and create an experience that appeals to how they prefer to communicate, Excite with content — Content is a mainstay of shop and buy will rise to the top and earn the Millennial and iGeneration lifestyle. They business from this lucrative demographic. Connect through social media — These generations live on social media, so your dealership should be there, too. They expect a Facebook page, Google reviews, a Twitter stream, and maybe even a Tumblr account. Social media offers real-time engagement and is a huge opportunity for your dealership to communicate and connect with these buyers.

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JoeyLittle

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ALL IN:

Five Game-Changing Tips to Deliver the Ultimate Customer Experience

Customers are changing the game for businesses everywhere by demanding higherquality experiences, quicker feedback and more informed professionals than ever before. In fact, while dealerships of the past may have depended heavily on vehicle inventory, features and service to draw shoppers in, it now takes much more. Consumers are on the lookout for businesses that stand apart from the rest by offering innovative experiences focused on their unique wants and needs in the marketplace. By changing up the ways you meet customer expectations, you can ensure your dealership enjoys success in an increasingly crowded marketplace. But how are you supposed to provide a seamless, tailored experience for every shopper? It’s a fair question, especially since you likely do business with a wide range of consumers. From Gen Z (just beginning their automotive shopping experiences) to Baby Boomers (experienced vehicle shoppers) and everyone in between, you’ll be challenged with meeting a wide variety of customer needs. Know Your Shoppers

In order to deliver an experience your customers will love, you must first get to know the individuals who are shopping with you and understand what they’re looking for. Everyone arrives at your dealership with different expectations — and this leaves you and your team with some homework. Be sure to dig in to all the data that’s available to you and gain all the insights you can about your customers. After all, the more you know about the shoppers visiting your dealership, the more likely it is you’ll be able to offer them exactly what they’re looking for. You can make sure you’re delivering an overthe-top customer experience and exceeding expectations by challenging your entire team to consistently: 1. Be great listeners. Your customers have

a lot to say, especially on social media, so

this means your team needs to keep their eyes and ears open, both at the dealership and online, when consumers are talking about their automotive needs, concerns and preferences. Consumer insights offer a direct, inside line of communication to exactly what shoppers are thinking — and for your sales team, this is like striking gold.

“In order to deliver an experience your customers will love, you must first get to know the individuals who are shopping with you and understand what they’re looking for.” 2. Gather and consolidate data. Data is

everywhere. There’s a wealth of it in your CRM, and as you read this article, it’s piling up on social sites as shoppers chat, share insights, complete profiles and update their timelines. Encourage your team to be on the lookout for data wherever consumers are sharing — and then ensure everyone is consolidating and organizing information so it’s easily accessible when it’s needed.

3. Personalize transactions. From

personalized emails to direct phone calls, today’s consumers respond better when they know you’ve gone out of your way to interact with them personally. And don’t forget to take your customer service online. Shoppers

are increasingly turning to social platforms to ask questions or leave feedback, and when you respond promptly and directly to individual posts, consumers will notice. 4. Ask the right questions. Shoppers want to

let you know what they love — as well as what could be improved upon. If you’re not getting the information you need, try asking in a different way. Consider online polls and surveys, or try adding a questionnaire to your Website. Don’t be afraid to change things up and ask questions in an innovative format in order to gain valuable consumer insights that will help your dealership.

5. Embrace customer feedback. Whether

it’s good, bad or indifferent, all feedback is useful to you, because it gives you an opportunity to reach out and connect with customers, as well as future shoppers. Remember: Your responses to online feedback are seen by everyone, so it’s your chance to shine as a customer-service pro by offering positive solutions and assistance for every situation.

Dealerships have long been saddled with the reputation of having slow processes and less-than-ideal communication, but with today’s technology and insights, you’re able to offer exactly what shoppers are looking for — innovative, positive buying experiences; insightful, up-to-the-minute data; and a knowledgeable team who’s focused on getting to know every customer. With all these things going for you, your dealership can offer exceptional shopping experiences. Sure, customers may have changed the game and raised their expectations — but there’s no doubt about it; with innovative thinking and a few new strategies, your dealership’s in it to win it.

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NathanUsher

director of business development for DealerSocket \ nusher@autosuccessonline.com \

@DealerSocket

CHANGE MANAGEMENT: The “Upward Climb” With New Dealership Tech

Adopting new technology in a dealership is an important business decision that requires a process to ensure success. A comprehensive, user-friendly technology platform can be extremely advantageous and profitable to your dealership. It makes collecting data easier, provides the ability to mine existing customer information, and even helps integrate sales, service, inventory acquisition and other revenue-generating opportunities. Selecting and implementing a new CRM, DMS, phone management system, inventory platform or other technology is a serious process requiring careful consideration. Becoming proficient with a technology takes time and you almost certainly won’t see success from Day One. As a result, change within a dealership is often avoided or unenthusiastically embraced because change management can be an agonizing task. Managing expectations is crucial.

specific examples as to how the technology will make the staff ’s lives easier and simpler. Make sure your supervisory team has proper training with the technology partner so team members fully understand what it entails, how to use it most efficiently and how to properly train employees to perform their normal functions most effectively on the new platform.

The importance of making such a change successful throughout the organization cannot be understated. Too often, however, the human element of an implementation is not taken fully into account, and the result is a less-thansuccessful launch.

Motivate from the top down, and hold everyone accountable to move the process forward. That means setting measurable goals like “ask sales teams at least twice daily if they have any questions about X,” and holding every team member accountable by keeping track of agreed-upon actions.

Helpful Hints

3. Work with your technology

Here are several tips for adopting a new technology platform in your dealership. These are meant to help guide the process of change management and to reduce the negative impact of the learning curve, as well as to help teams work together to make change: 1. Find the right technology platform. The first step is to find the right platform for your dealership. Don’t try to save time on this crucial step. The time invested up front to research, poll staff and get informed will more than pay off in time saved and speed to revenue after implementation.

A few things you should look for when adopting a platform are integration with existing platforms, ease of use (user interface) and product features you really need. Weigh the advantages and disadvantages of various platforms and look at how other dealers are benefiting and using them to determine which is best for your business. Vendors should be willing and able to provide this information; be wary if they aren’t. 2. Lead from the top. Dealership management must make a public and often repeated commitment to the new technology. If management does not appear committed to the success of the implementation, the staff will simply view it as the “flavor of the month.”

The key to effective change management and adoption of a new technology is leadership embracing the change and providing clear and

30 autosuccessonline.com

partner for training. Your technology partner is the most knowledgeable about its own product and should be a resource to your team for providing a change management plan as well as training. From firsthand experience, your technology partner knows best how to get the most out of the platform and how it can impact your business. 4. Form change management

teams and a communication plan. Adopting a new technology requires an accessible, optimistic support team. Change management teams should not display hesitance or doubt about adopting a new technology, or it will hinder the adoption curve and overall process. Team members should be carefully selected as enthusiastic adopters of the technology. They should develop a solid communication plan to ensure they are all communicating the same message. Agreed-upon messaging should address all employee questions and concerns early in the process — having an FAQ is a useful tool at this stage in the process. “Work schedules will not change and will, in fact, improve” is different than saying “work schedules will probably not change.” 5. Create measurable project milestones. Dumping a new technology on a team and expecting them to learn new processes all at once sets you up for failure. Sit down with the change management team and determine your incremental, measurable goals both for

the implementation and the new technology. Understand that productivity may dip at first, but ensure you have the proper support so business doesn’t suffer and the change process continues to move forward. When you are determining your project milestones, make sure they are achievable and measurable. Develop a process to take small steps (make one change at a time, not multiple changes) to ensure employees are fully understanding each step in the process and know exactly what is coming next. As part of establishing milestones and platform usage expectations, you may wish to consider removing the legacy platform. This might be an extreme step, but it ensures that staff members cannot fall back to the process with which they are comfortable. Eliminating the old platform takes away the ability to backslide and increases the adoption rate of the new technology. 6. Review your progress (and adjust if necessary). If something is not working and milestones are not being met (or are being met faster than expected), adjust the plan. The plan should be fluid enough to make changes if roadblocks arise. Hold people accountable and track progress publicly — and communicate it with the entire team. If people feel they are making progress, they will continue to move forward. 7. Listen. One of the most important steps in the process is to listen. Listen to the concerns of employees, ask questions and address them to keep everyone on target. If concerns aren’t addressed, particularly if there is one vocal critic, it can turn into a negative spiral in a team setting and hinder the overall process.

If you follow these steps when putting in place a new technology, the learning curve can be reduced significantly and you can create a culture of innovation, success and high morale. Change management reduces the human element and allows the new technology to begin doing its work. There are countless positive impacts of adopting a new technology, including making your business attractive to potential customers, encouraging innovation within teams, increasing efficiency, generating additional revenue and developing more satisfied customers and employees. The benefits of adopting new technologies are clear, if your management teams build a solid plan for the task of change management.

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AdamRobinson

chief hireologist for Hireology \ arobinson@autosuccessonline.com \

@Hireology

HOW ILLEGAL INTERVIEW QUESTIONS HURT YOUR DEALERSHIP

As an employer, your focus during the recruitment process should always be on finding the most qualified person to fit a specific role within your organization. We’ve found that dealerships hire the right individual about 50 percent of the time. Simultaneously, the average turnover rate for salespeople at today’s dealerships hovers around 70 percent. When the stakes are this high to make the right hire for your business, it’s critical that every aspect of your hiring process is rock solid. For employers and candidates alike, the in-person interview stage is both a stressful event and one meant to effectively highlight the job seeker’s qualities and qualifications. If you don’t have a documented, reproducible interviewing strategy, it’s likely that you’re falling into the trap of asking the wrong types of questions.

• Where are you originally from? (National origin) If a job seeker is on the receiving end of this question but not a job offer, they may begin to question whether their national origin was a contributing factor for not getting the job. More to the point, their national origin doesn’t likely have any bearing on their job performance. As a result, it’s better if you leave this question off the list.

Worse, it’s very possible that you’re asking illegal questions that are not only harmful to the interview process overall, but also puts your dealership at risk for potentially costly litigation.

• Do you have any kids? (Family status) It’s perfectly natural for family and parenthood to come up during small talk, but, it’s a conversation that doesn’t belong in the interview process at all. Many employers may absentmindedly or subconsciously discuss family commitments during the interview to get a better handle on availability and flexibility expectations. Instead, ask about outside obligations that may inhibit a job seeker’s ability to adhere to a specific schedule. By staying fairly broad, you’re not discriminating against the candidate expressly based on family status.

How to Recognize Illegal Questions

Many times, interviewers aren’t even aware of the fact that they’re asking illegal questions. This is especially the case when you don’t have a human resources professional who has clearly defined hiring processes and interview protocols — a situation that many dealerships experience on a daily basis. Some of the most common errors in interview questioning relate to age, gender, citizenship, national origin or language, marital status, family status, sexual orientation and criminal history. Here are some examples to give you a clearer understanding how you can easily wander into illegal territory: • When did you earn your degree? (Age) A seemingly harmless question that often pops up during a discussion of an applicant’s educational background, asking for a graduation date is an easy way to gauge the job seeker’s age. Because of this connection, it’s not legal. It’s more effective to ask about a candidate’s college coursework, relevant projects or research and what types of activities they participated in outside of the classroom.

32 success-driven solutions

• Have you ever been arrested? (Criminal history) The big point here, according to the Equal Employment Opportunity Commission (EEOC), is that an arrest doesn’t necessarily mean a person is guilty of criminal conduct. On the other hand, a conviction does signal culpability. However, the EEOC advises not using this as the primary determining factor when making a hiring decision. The best use of this information is to get an idea of the candidate’s character. • Are you pregnant? (Gender) Employers can’t discriminate against candidates on the basis of pregnancy, something that predominantly impacts — and historically has influenced — the job prospects of women. Not only will you avoid making a major social gaffe by not asking this question, but you’ll also create a more

inclusive workplace that encourages a more diverse pool of applicants. Both state and federal regulatory bodies have established protections against discrimination with respect to these classifications. However, penalties and fines are only one way that illegal questions can harm your dealership. How These Questions Do Harm to Your Dealership

There are three big issues that arise from illegal interview questions — otherwise known as discriminatory employment practices. First, your dealership will face fines and penalties from state and federal agencies. The EEOC is the primary federal and local governing body for this sort of issue, while the U.S. Department of Labor is also involved in these types of cases. At the same time, your dealership will have to deal with litigation costs as a result of any legal action taken on the part of candidates who claim you’ve discriminated against them. There are costly legal fees for the attorneys needed to represent your business, but you may be asked to cover the costs of the plaintiff ’s fees, as well. Finally, you will ultimately create a poor reputation as an employer. With review sites like Glassdoor and Indeed, job seekers and existing employees have significant power in helping other candidates form opinions about an employer. Glassdoor has a review section specifically for job interviews, meaning any improper practices will likely be brought to light. Meanwhile, any cases that get covered in the media will produce negative PR for your brand. Put the Right Processes in Place

Consistency is a strong antidote for illegal interview questions. By putting a hiring process in place, which includes interview question guidelines, you can avoid sticking your foot in your mouth as you recruit new talent. More importantly, you’re also able to avoid negative consequences that can impact your bottom line and future prospects of building a solid talent pipeline.

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DavidMetter

president of AutoHook, powered by Urban Science \ dmetter@autosuccessonline.com \

NOW OPEN, THE AUTOMOTIVE APP STORE: The Open App Approach to Uniting an Industry

What makes the Apple brand indestructible? There are a million valid answers to this question. Is Apple’s technology more advanced than Google’s? Not necessarily. Are their smartphones more intelligent than all other smartphones? Probably not. But no one can dispute the fact that they are the simplest devices to navigate for the vast majority of the population. Apple products dominate the market because they’re easy to use, and they integrate flawlessly with one another through Apple’s iCloud. When we take a step back from the entire culture Apple has created, and strip down every product they’ve reinvented, we start to see the roots of what made them so successful in the first place. We see the App Store, and through that we see unification. We see both integration and alliances. We see the reason people feel naked without their iPhones. The iPhone is so integral to its owner because it makes their lives easier and better. The App Store puts the power in our hands to access tools that improve the way we function on a day-to-day basis. It puts the world at our fingertips, and so many of the best apps out there are free. Take Waze for example. It is the largest community-based, interactive traffic and navigation app in existence. Its value comes entirely from its users and the information they provide in real-time. The technology aggregates and builds upon user data to calculate the most efficient route from Point A to Point B, saving drivers both time and money. In so many ways (no pun intended), Waze created a more efficient rail system of data that benefits everyone on the road. What if the automotive industry could create

@DriveAutoHook

this same type of unified data railroad? What if we knocked down our walls and opened up our own Automotive App Store — free of charge? What if every vendor, dealer and OEM had faster, more accurate data? What could we accomplish as a community rather than as competitors?

“What if we knocked down our walls and opened up our own Automotive App Store — free of charge? What if every vendor, dealer and OEM had faster, more accurate data? What could we accomplish as a community rather than as competitors?” CDK Global has already adopted this open app approach when they announced their new Partner Program in September, in efforts to create an ecosystem of approved vendors and applications that can be successfully integrated into a CDK dealer Website. Could it be? Vendors actually working together to reap the benefits of the bigger picture? To be fair, Dealer.com was the first Website company to formalize a partnership program, but the

promise of open data integration has been slower than expected. I’ve been fortunate enough to be on both sites of the battle. During my time as CMO at MileOne Automotive, one of our biggest struggles was getting vendors to integrate and work properly together. However, our biggest strength was having the insight to see the unique benefits of two different companies and the means to bring them together in a way that benefited all. Now that I’m on the vendor side, I’ve seen a need for these types of partnerships to happen now more than ever. We know dealers suffer when vendors don’t work together. When dealers and OEMs suffer, vendors also suffer. So let’s change that, shall we? In an industry where everyone charges a fee to be connected, what if we stopped charging in order to make stronger, mutually beneficial connections? By adopting Apple’s open app approach, our industry can simplify and unravel a complicated subject — a subject that is perhaps the one absolute in a field inundated with ambiguous topics like “big data” and “attribution.” Sharing this type of knowledge is the one thing that could change this industry for the better. Having access to both accurate and up-to-date sales attribution data will make every decision this industry makes smarter, every solution more efficient, and every dollar we spend go further. Now that is something to get excited about.

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NateTallarino III

certified risk manager & COO of Anthony Grace Risk Management Services \ ntallarino@autosuccessonline.com

RECALLS CAN JAM UP YOUR LOT — ARE YOU COVERED?

“What’s with all these customer’s cars stacking up out back?” What advice does a risk manager give his clients regarding these ever-increasing recalls? Lately, I find myself fielding calls from clients around the country concerned about how to manage the potential risk they face in selling a vehicle to a retail customer when that vehicle is awaiting a replacement airbag. At first, late last year, the calls were focused on the retail sale; only recently have I started seeing more concern about running a vehicle through an auction

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lane or wholesaling the vehicle. Sure, the facts and figures are readily obtainable via a quick Internet search as to how different state’s laws affect a sale. The range seems to run from silence on the issue from a state’s legislative and regulatory arms to outright mandates and bulletins on how to handle the sale of an open recall vehicle. While the federal government runs the recall “train” from the locomotive, many of the individual cars (state’s laws and regulations) are wobbling down the track. If the product safety and recall issue is a national highway safety issue, and the titling and registration of a vehicle belongs to the individual states, the potential liability is a scary one. Compounding matters is the fact that the manufacturer may be of little help when asking specific questions about pre-owned, open recall vehicle. Just this week, Toyota dealers participated in a conference call regarding “best practices” while handling vehicles that are in your inventory and how to sell the cars properly. The suggestions did not sit well with many of my dealership clients. On another liability front, what about the customers’ vehicles sitting in back, on the side or all over your dealerships lots? There are some serious “care, custody and control” issues. In March of this year, one Honda dealership I visited had 116 customers’ cars in a cramped back/side lot just awaiting airbags. This was on top of the usual 30 to 45 cars in for service on any given day. Knowing this particular dealerships’ insurance program had a limit for the “garage keepers” coverage that would only account for the typical 50 cars, I quickly pointed out the need to increase the limit for this location to accommodate a potential loss. With recent news of yet another 4.3 million GM vehicles being added to the list, and on the heels of news that the NHTSA is expanding the investigation to potentially include airbags manufactured by ARC, one wonders how can a dealer navigate what to sell and what not to sell? What to trade for and what not to trade for? Which to buy and which to avoid. Again, this is a great topic to discuss with not only your management teams but important partners in your dealership’s overall risk management program. Ask your staff counsel, your state dealership associations and your insurance professional, as well. A quick email to your insurance provider asking what the cost to increase your garage keepers (or customers autos) limit could be in order. You may be shocked to find it is rather inexpensive for the extra piece of mind.

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DennisMcGinn

founder & CEO of Rapid Recon \ dmcginn@autosuccessonline.com \

@DennisMcGinnrr

THE ESSENTIAL FABRIC THAT HELPS TRANSFORM RECON CENTERS:

How to Weave Threads of Commitment Into a High-Energy Reconditioning Fabric for Success

Those who study my ideas about how to transform reconditioning know I promote speeding up time to market (TTM), reducing holding costs and centralizing recon operations. I’ll review those fundamentals shortly. First, though, an argument for the essential fabric. This is the one asset — perhaps more than any other — that can upgrade recon into an exceptional money-maker for the dealership, car after car, month after month, year after year. This fabric is best understood as a culture that permeates or saturates “how we do things here” and is practiced by all key players. This fabric — the internalizing of a TTM reconditioning belief system — is what keeps recon humming along at higher volume driven by the clock, specific task disciplines and personnel accountability. This goal might be accomplished successfully and consistently without the assist of automation, but the use of reconditioning TTM workflow software makes it practical, measurable and achievable. It is this sort of interwoven culture that recognizes reconditioning’s pivotal part in the dealership’s entire well-being. A recon department like this thrives when allowed to operate as a self-contained support business, yet benefiting from multi-function input. This means that what reconditioning needs to increase volume and throughput speed depends on cooperation (and often change) from many functions within the dealership. They include the used car department (including appraisers and buyers), service and parts, and reconditioning itself and its sublets. Not a Plugin

Transforming reconditioning is more than a software plugin, though software brings change and positive results more quickly and consistently. That said, we know reconditioning is a people business — people manage it and people touch every vehicle at multiple points from acquisition to the used car lot. Each person whose function touches reconditioning in some way is a thread for managers to weave into a cohesive time-to-market culture. It may be that, if transformation is to be achieved, you’ll need to pull out a few threads and replace them. Everyone — from the photographer who images inventory on its way to online merchandising to the used car manager — will be asked to adjust to new ideas. As one dealer who practices this culture told me, “When we quit in-fighting and jockeying for position and started agreeing on what’s the most important thing for the

38 autosuccessonline.com

business — which is to get cars to retail faster and cheaper — everyone got in line.” Critical Threads

We’re after teamwork here, but that’s not quite the right description for our goal. If you watch those hospital ER reality TV shows, then perhaps the choreography required of the many players in the emergency room is a more descriptive and accurate analogy. With the right threads in place, workflow software will help keep the entire transformative reconditioning fabric intact and flowing. The critical threads are: • Appraiser — Foremost, are appraisals market-accurate? Paying too much for a vehicle loads cost into recon that may be hard to recover at retail. Second, be sure appraisers build recon costs into their appraisals. Obtain the right approximate repair costs from historical cost buckets, based on mileage, from your DMS. Cost for new tires, body shop work and glass repair should flow into the appraisal, as well. • Used car manager/buyer — Establish repair pre-approval to reduce delays (easily done with bucket system just described). Buy what’s most in demand for the dealership’s customer base — and acquire vehicles based on fiscal logic, not emotions. Buy the right units in the right condition for the market so they require less recon time and cost and get them faster to retail so they start attracting buyers. • Intake manager — This job requires sound, quick judgment to analyze incoming vehicles, assess their recon needs and choose whether to recon or wholesale. For this role, consider individuals having service or body shop estimating experience. • Service manager — Centralizing recon will likely mean pulling internal work from the retail shop. This will create two advantages: One, it eliminates frustrating discourse about service bay time, so recon gets the time needed to do repairs and detail right; and, two, retail advisors and technicians grow smarter about performing thorough inspections and upsells, reduce discounting and take more personal responsibility for filling their shifts’ hours. • Recon manager — This individual steers the wheel and directs the show. Set up recon as its own profit center with its own pay plan and manage it accordingly. Have this individual, along with retail service, the used

car manager and GM, co-govern. As TTM is the driving factor in centralized recon, recon parts should opt for more expensive parts if getting them now will keep recon’s assembly line flowing uninterrupted. • Advisors/technicians/detailers — Charge recon with staffing its own advisors, technicians and detailers and operating its own parts department. Except for parts, compensate these threads on output driven by clock time as managed by reconditioning workflow software. • Photo/online shop — Image and upload incoming inventory upon arrival to merchandise it immediately. For final imaging, roll vehicles directly from detail to your photo booth or photo location. The Fundamentals

Transformative recon cultures allow for: 1. Faster time to market — Without reconditioning workflow software in place to automate, track, schedule and report on every step of each recon process, achieving consistently fast frontline readiness is difficult. Lacking disciplined controls not driven by clock time, staff estimates of time to market are just guesses. Recon believes it’s getting cars to retail fast, but in reality they are not — often taking five to 10 days longer than does a highly efficient shop that monitors and measures each step of its recon process. 2. Managed holding costs — Unless the used

car, fixed ops and recon center managers understand and leverage holding costs, reconditioning is silently gobbling up the gross margin on every car retailed. Holding cost is reduced when recon turn is held to three to five days.

3. Centralized recon — Recon operations

should be centralized for dealerships having at least two rooftops within a 40-mile radius. Centralization focuses on satisfying the dealership’s primary customer base — the production of reconditioned used cars to maximize used car profitability. Centralization takes advantage of economies of scale, continuous process improvement and TTM automation to get cars frontline faster and more profitably for the dealership.

Threads and fabric — modern reconditioning methods that, when woven into a transformed reconditioning department, radically improves overall operational efficiency and financial tapestry of the entire dealership. Contact me to discuss your opportunity.

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DalePollak

founder of vAuto \ dpollak@autosuccessonline.com \

@vAuto

FOUR USED VEHICLE FUNDAMENTALS TO HELP STAY STRONG AS FALL UNFOLDS

There appears to be good news and bad news on the horizon in used vehicles. The good news first: According to analysts, the healthy pace of used vehicle sales, particularly in near-new segments with good-credit buyers, that many dealers have enjoyed this year may continue this fall. If true, the used vehicle market may defy the slowdown that typically occurs during autumn and affirm what some analysts call the market’s “ongoing resilience.” Now, the bad news: Analysts expect new vehicle sales volume to taper off in the waning months of the year — a dynamic that will put pressure on factories to step up incentives to drive new vehicle sales, creating a more challenging used vehicle retail environment. In light of this potential future market volatility, I recommend dealers revisit four used vehicle inventory management fundamentals: 1. Mind the Market Days Supply. The best

dealers mind this metric in two ways — on a per-car basis as they make appraising, acquisition and pricing decisions, and on a total inventory basis as they gauge the overall desirability of their units in stock. In either case, dealers strive to find vehicles, and maintain their inventories, with a low Market Days Supply, which signals fewer competing units and a greater likelihood of a fast retail sale. Among top-performing used vehicle retailers, the overall inventory Market Days Supply average runs just shy of 75 days. I’ve noticed what I’d call “upward creep” in the Market Days Supply inventory averages at

dealers across the country, a potential sign of an imbalance in supply and demand. 2. Manage your Cost to Market. I typically

advise dealers to shoot for an average Cost-to-Market ratio of 84 percent for their used vehicles — a benchmark that provides a 16 percent spread between their cost to own/recondition a vehicle and its current retail asking price. Lately, I’ve seen dealer inventories with Cost-to-Market averages hovering closer to 90 percent. Dealers attribute the rise to increased competition and costs to acquire and recondition inventory. I’ll caution that, while the higher Cost-to-Market averages aren’t necessarily cause for alarm, they should not become the “new normal.” Today’s compressed retail margins don’t need any help from appraisers or buyers who fail to recognize that you make your margin, and your money, in used cars when you acquire them.

3. Price your cars to market conditions: Most

dealers understand that it’s important to price their used vehicles to the market — a best practice that’s gained credence as dealers recognize today’s buyers are more price-smart than ever. The real question is when do you get serious about pricing cars to the market? From Day One? Day Seven? Day 30? Topperforming dealers apply Price-to-Market strategies that balance a vehicle’s age, current market demand and their own desire for front-end gross profit and sales velocity from

the get-go. “For us, Price to Market is like a throttle,” a dealer recently told me. “You can definitely price some cars above the market, what I call the ‘idle’ position. But these days, you’ve got to put most cars out there at halfthrottle or more, right out the gate, if you want them sell quickly.” 4. Minimize your average days in inventory:

Not that long ago, you could ask a dealer about their average inventory age in used vehicles and get a blank stare for an answer. Today, more dealers are aware of the “timeis-money” nature of used vehicle retailing. They understand that front-end gross profits on vehicles retailed after 30 days average as much as 60 percent less than those retailed in less than 30 days. As a result, the best dealers strive to maintain at least 55 percent of their used inventories under 30 days of age, a benchmark that by definition reduces your number of aged units and encourages you to retail a greater share of vehicles when they’re fresh and full of gross. For many dealers, delays in reconditioning often prove the most problematic as they work to minimize their average days in inventory.

Of course, some dealers don’t need to revisit these fundamentals, because they serve as the principles that guide astute, market-focused used vehicle inventory management decisions every day. For these dealers, the prospect of a more challenging seasonal sales environment isn’t a surprise. Rather, they’ll see the signs of changing market early, and make adjustments to ensure a strong finish for the year.

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THESE SCARY SITUATIONS CAN DAMAGE YOUR DEALERSHIP LONG AFTER HALLOWEEN

The leaves are changing colors, it’s starting to become jacket weather (well, maybe not down here in Houston), and pumpkin spice everything is packing store shelves. These things all contribute to why October is a fantastic time of year, but there’s one more reason why I love it: Halloween. Scary costumes, big parties, teeth-rotting candy — I’m all about the spookiest holiday of the year, especially when dealerships start getting into a festive mood. An online search for dealership Halloween marketing campaigns turns up “costumes” for cars, clever Halloweenthemed mailers and emails, and even a few costume competitions (how would you feel about buying a car from Batman?). While ghosts in the service department, skeletons in cars and superheroes in the showroom might sound like a good time one day of the year, there are some other scary situations your dealership might face long after Halloween ends that could send your leads running to your competitors.

It’s hard to beat a good ghost story. Who

doesn’t get chills down their spine when they hear about a ghost appearing — and disappearing — in a place with a spooky history? Ghosts are the kind of thing you want to hear about disappearing. But if your customer info is bouncing between planes of existence, that’s a big problem. Keeping track of all your customer data is hard. Almost everybody struggles with it at some point. In fact, a recent Marchex study said that more than 60 percent of customer data is either entered into customer relationship management (CRM) systems incorrectly or isn’t input at all and is lost. Any sort of incoming lead, whether by phone, email or a Web form, should be synced to your CRM automatically. Use software that scans and captures data from these sources on the fly so your reps never have to worry about transposing a number or losing an email in an inbox. This will keep your customers from running screaming in the other direction if your reps fail to follow up due to missing contact data. Festering Negative Reviews

Fake skeletons and corpses can be a lot of fun in a haunted house or a Halloween party. However, the scare factor can become a gross factor when those fake skeletons and corpses are kept around for far too long. Dealerships can have the same problem with negative online reviews if they let them fester. People are more likely to leave a negative review than a positive one, so it’s inevitable that you’re going to have to deal with a scathing review at some point. To protect your reputation, the important thing is for you to contact the reviewer and try to fix the problem as soon as possible. According to Bazaarvoice, 92 percent of customers in a survey were more likely to buy from a company if they saw it

DealerElite and AutoSuccess Present:

offer a refund, upgrade or exchange following a negative review. If the negative review is about something that can be fixed, do so. If it’s something that can’t be fixed, offer incentives such as free maintenance services or a gift card to a local restaurant to get that customer back in the fold. While asking a customer to remove a negative review from a Website can have an unexpected backlash, you could alternatively ask them to modify the review to point out that your dealership addressed the problem. Aging Sales Processes

Wearing a dinosaur costume on Halloween sounds like a good time, but are your dealership employees and processes easily confused with dinosaurs? Not literally, of course, but customers can think your methods are ancient history if you’re not deploying technology like tablets and computer displays during the sales process. A recent JD Power study indicated that the use of technology improved customer satisfaction among new car buyers. The majority of your buyers already have high-end smartphones in their pockets that can help them pull up a car’s information (or even a competitor’s Website) while they’re standing on your lot. If you’re not giving these tech-savvy buyers a tech-centric sales pitch, they might start looking for more modern dealerships. If you’re going to use tablets during the sales process, though, don’t just use them as a gimmick for pointing out a vehicle’s Bluetooth connectivity. Use the technology throughout the sales process by collecting and pulling up customer data directly from your CRM or even using it to find vehicles with specific features on your lot. Giving your customers a little bit of a scare on Halloween might be OK and a little fun, but be sure you’re not also scaring them away from your dealership because of some haunting problems. Send me an email if you need some help making sure your customers aren’t being scared away from your dealership by bad service.

DEALER PANEL

THE Turn to the NEXT PAGE for more... 42 autosuccessonline.com/videos

dp Chris Saraceno Andrew DiFeo

Keeping Current With Customers Last month, we asked our Dealer Panel about the changes they’ve witnessed in the auto industry. This month, we’ll take a look at how the modern customer has changed, and what never changes.

better informed. They’ve done countless hours of research over several months on their purchase. It’s become an efficient market. The challenge is the customer can be misinformed because there is so much information out there on the Internet — and some of it is contradictory. Most people, however, believe what they read online — if it was on the Internet, it must be true. But, as far as opportunities, if you as a business — and not just automotive related — embrace the fact that the customers are better informed, and develop your processes and train your people to understand that. You can create an efficient process that values the customer’s time. Time is becoming more important for everybody because it can’t be replaced; the businesses that value a customer’s time are going to win in the long run by just making it a convenient process for the consumer.

Mike Good

part

KEEPING UP WITH THE TIMES:

AutoSuccess: How are today’s customers different than in the past, and what challenges does that bring? Andrew DiFeo, GM of Hyundai of St. Augustine: The customers now are much

Jeremy Abramson James Ochner

two

the DealerPanel

Chris Saraceno, VP and Partner of Kelly Automotive Group: Customers are much more

educated because there’s so much information everywhere. It’s easy to get information through mobile devices. Customers have TrueCars, AutoTrader and so much other information when they buy a vehicle. I look at that as an opportunity, because you now know what they have, and you can sit down together. Even if you don’t agree with their information, you can at least look at what they’re looking at together right at the dealership. You can show that you’re different and that you care. I’d always rather deal with an educated, bright person than someone who’s unconsciously incompetent. When you’re dealing with someone who doesn’t really know what they’re talking about, it’s hard to come to an agreement. When someone is competent, though, it’s easy to sit down and partner with them. Mike Good, GM of Street Toyota: Better-educated customers are at our doorstep today. Professional, competent associates are discovering that dealing with this segment is less challenging. Conversely, unprepared associates find it more difficult. The better prepared a customer is, the easier it is to achieve alignment, easing transactional difficulties. Today’s customers average 14 hours of research when selecting a vehicle, traveling part of the sales process without our help. If we field these customers in the same old way, our chance of losing them increases. Additionally, it seems a diversity of people in every quadrant our industry serves floods our showrooms. In our world, diversity is swelling, and we must meet diversity with diversity. Successful dealerships offer multi-lingual staff to serve all customers. Creating an inviting environment is important in today’s climate

Jeremy Abramson, GM of Brandfon Honda: We used to say customers aren’t educated; they’re only informed, and most of the time they had bad information. Now, I think they’re a solid mix of both. There’s more information online than ever before, and customers are doing their homework in a different way. Not only that — they can price shop you on their smartphone while the salesperson is getting numbers from the desk. There seems to be no reservation in flipping their iPhone around and showing you an email they just got with a better price than you just gave them. There’s opportunity for the team providing the best buying experience, and challenges for salespeople not prepared to handle modern-day objections. James Ochner, GM of I-10 Toyota: Customers haven’t changed all

that much in the past 20 years. They want to do business with someone they like and can trust. What has changed is that people don’t have as much time to shop as they used to. Now, more than ever, time is death to a deal. It’s important to streamline your process and allow for some flexibility in the steps leading up to the sale.

AS: In this era of change, what’s the one constant about auto sales that you always keep in mind? AD: It’s still a people business, and people still do business with people

who they like, trust and believe in. There’s still a relationship that has to be created. It has to be genuine. It’s not done all over the Internet.

CS: Relationships, treating our customers with respect, kindness and truly caring about them never goes out of style. Knowing your product is always a must, as well as building an exceptional reputation in your local community. Of course, all of this happens with smart hiring and team development — getting the right leaders and people on the team. MG: It’s about serving our customers. We all realize the importance of our reputation. We know we’re in the experience business. The customer deserves and expects an honest, transparent, convenient, timely and exciting experience. Ultimately, the roots of a great transaction are embodied in trust. Trust is earned one transaction, one customer at a time. If our hearts are right and the trust is earned, our caring for our customers is evident. Ultimately, that’s what every customer wants. They need to know we ultimately put their interest ahead of our own. Do that continuously and you’ll own your market. JA: The retail automobile salesperson is consistently one of the most important components in a car deal. All the technology and information out there is great, but the salesperson is still relevant — probably more than ever before. They are the ones who meet and greet the customers, cementing impressions the customer may have about the dealership and representing the store as either an upfront honest operation or a “typical” car dealership trying to hide information and make as much as possible on the deal. Sure, there are still customers who will grind you over a couple of dollars a month, and there are still customers who will pay all the money on the first pencil, but the majority of the customers still want to be serviced by a live, honest and reliable salesperson. The car buying process can still be intimidating; the salesperson has the opportunity to answer questions and provide support during and after the sale, increasing retention and securing future revenue. JO: The only thing that is constant is constant change. The one constant

is that consumers want to find is a person they feel they can trust. If you are ethical and honest, persistent and consistent, you will succeed. Next month, we’ll finish our topic with advice our panel has for dealers and GMs looking to ride the waves of change.

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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