Car Biz Today | March 2016 by CBTNews

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CAR BIZ TODAY The Official News Source of The Retail Automotive Industry

March 2016

Volume 3, Issue 3

GETTING AHEAD BY GIVING BACK

TECHNOLOGY GUIDES A CUSTOMER’S NEEDS Teaching technology allows dealers to continue the conversation even after the car has left the lot

Eric Gentry’s of Victory Chrysler Dodge Jeep Ram partners with the community to create a culture of sharing

...see PAGE 16

...see PAGE 22

GOING LOCAL WITH DATA

LINKING PEOPLE, PERFORMANCE AND PROFITABILITY

LATEST ON DEALER FEES

AMY FARLEY

MICHAEL ROPPO

JIM RADOGNA

...see PAGE 12

...see PAGE 36

...see PAGE 10

DIGITAL MARKETING:

WHO IS IN THE DRIVER’S SEAT? While OEMs are leading brand management, dealers have to capitalize on the digital details ...see PAGE 32

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Letter from the editor

That’s why we have two stories that are different in direction but when you break it down, it’s about caring about people, some of whom may be your customers, some may not. But it doesn’t matter. Karma — and Internet tweets — will reward you.

Creative Director Randall Veugeler

Over in Kansas City, Eric Gentry of Victory Chrysler Dodge Jeep Ram, shows the entire community he cares. When a local food pantry lost its home, he opened up his dealership and now more than 1,000 families a month get fresh groceries. His goal is to give away 1 million pounds of food by 2018. Eric tells the story of a single mother with three kids working to get her GED who saved to buy a used car elsewhere and it broke one week later. She took it to his dealership and he quickly realized the car wasn’t worth the cost of the repairs and that she couldn’t afford them anyway. Trying to make the best of a bad situation, he gave her a used Hyundai. Now that’s heart. There’s a whole lot more in this issue as well. Jim Radogna writes about how dealer fees are being attacked in legislatures across the country while Tim James gives a quick lesson in shooting a video. And while Anne Fleming is asking whether you are listening to your female customers, Michael Roppo is wondering why aren’t you changing hiring practices with a 66% turnover rate. All of these great questions and more are answered right here. We hope you enjoy and learn from this issue, and as always, we’d love your thoughts. And let’s keep building those relationships and making sales.

Mary Welch

Match Recruiting Methods to Today’s Realities By Mark Tewart, President, Tewart Enterprises

Industry News

10 What’s Your Definition of Dealer’s Fees?

By Jim Radogna, President, Dealer Compliance Consultants

Association News

CBT Conference Round-up

Ask the Pros

Educating Customers on Technology Doesn’t End With the Sale

Art Director Erica Abrams Production Manager Laura Payne Designers Shay Harbaugh Brian Hassinger April Miller Christina Zavlanos Creative Director - Digital Michael Marley Director of Marketing & Events Karen Locadia Marketing Associate Erin Mumphord Subscription Manager Emily Wiggins

Director of Sales Gary Blitzer gblitzer@cbtnews.com d 678.221.2955 c 770.330.6821

By Mary Welch

A Clean Dealership Is an Image and Performance Booster By Chip Walker, President, Custom Facilities

28 5 Tips for Shooting Better Videos

By Tim James, COO, Flick Fusion Video Marketing

CAR BIZ TODAY MARCH 2016

Are you Listening to Your Female Customers? By Anne Fleming, President Women-Drivers.com

Dealership Serves Customers and Community

By Mary Welch

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22 Kansas City Chrysler

Linking People, Performance and Profitability By Michael Roppo, WithumSmith+ Brown Automotive Domain Results

Managing Editor Mary Welch

ADVERTISING

In This Issue

President And Publisher Jim Fitzpatrick Vice President/COO Bridget Fitzpatrick

MARY WELCH

Email newsroom@cbtnews.com Phone 678.221.2955

Dear readers, With so many challenges and changes in the business, it’s sometimes easy to forget that, at its heart, the automotive dealership and service departments are service industries who will only succeed by building relationships.

Our main story is from a report by JD Powers that said that the car’s technology is becoming a customer’s worst nightmare but also one of the most selling points of a car, and in many cases, one of the necessities people use to organize their lives and get where they’re going. Not knowing how to use the technology or having it break can disrupt a customer’s Managing Editor faith in the car and the dealer, but it doesn’t have to be. For many, such as Marcus William of Lexus Southern, the complicated technology is another way to connect with customers and maintain a positive relationship after the sale. To them, it’s another way to keep in touch. They want to make sure that owners feel comfortable coming into the dealership or calling with a question. The message: We’re here and we care.

CAR BIZ TODAY MAGAZINE

34 Creating a Winning Culture By Jody DeVere, CEO, AskPatty.com

Is Your Data Truly Local? By Amy Farley, Media and Communications Manager, Force Marketing

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MANAGEMENT LEADERSHIP ALIGNMENT

TO GET THE BEST PEOPLE, MATCH RECRUITING METHODS TO TODAY’S

S E I T I L A E r

BY MARK TEWART

ast year was a record year with record sales and record profits for many. As you can imagine there are a lot of happy people in the automotive industry. Yet, in one regard we had our worst year ever and that one area magnifies our biggest failing as an industry — the people. In a record year, as an industry, we should all be ashamed. You seem to hear from everyone today about the 3 or 4 P’s of business success. Those P’s are, People-Process-Product and I always add positioning, which defines what your position is in your marketplace. One thing is certain, without the people part of the equation, nothing else matters.

CHANGING RECRUITING METHODS TO MATCH TODAY’S REALITIES

With a 66% turnover rate in sales last year we are not only selling cars to customers who are almost forcing us to sell to them but we are damaging the long-term health of our industry. We are succeeding in spite of ourselves. But are we really succeeding? Where will the next generation of leaders come from? Are we losing a generation of new people to our industry and setting the seeds for future failure. The answer is yes if we don’t change and change fast. The biggest mistake we make in our industry is acting like it’s 1960 in regards to recruiting, hiring, training and retaining salespeople. The usual method for retail leaders is to hire out of need. You wake up one day and realize for whatever reason you now need several salespeople. So, you run an ad and wait for people to respond. Your need for salespeople drives your behavior and because of this need, there often isn’t a structured interviewing process.

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“The biggest mistake we make in our industry is acting like it’s 1960 in regards to recruiting, hiring, training and retaining salespeople.”

As a dealership leader, you ask a few questions and hope the person impresses you. After all, you need bodies. You walk into that interview session without prepared interview questions or subset questions based upon the answers of the applicant. The best analogy would be if you had a salesperson who walked out on the lot and did not know what to ask the customer and was not prepared. As a dealership leader you would be upset but yet you may be doing it every day.

HIRE THE RIGHT PEOPLE FROM THE START

One of the biggest keys to retaining salespeople is to hire the right people from the beginning. To do this, you must have a strategy and then tactics to fulfill that strategy. When you hire out of need, you are needy and needy people rarely get what they want. You become emotional and you lower your standards while hiring out of fear and a scarcity mindset. The better approach is to recruit people every day in multiple ways both online and offline. Some examples would be to, offer stair step bonuses to your existing team. Refer a person who is hired and receive $500 now, $500 in 6 months and $500 in a year. Email your database of customers with a nicely worded email stating that you are looking for team members that would be just like your wonderful customers and reward them if they send you a candidate who is hired. Run ongoing ads with different headlines on online forums such as Indeed.com and ZipRecruiter. Recruit and hire out of want, not need. Pro sports teams have a draft each year to replace or upgrade their team and you should as well. Utilize some science with the art of selection. Utilize sales predictive indicators. Have more than one person interview candidates and conduct your background checks, Driver’s license checks and even drug screening. Set the bar higher and stop making excuse about needing to have lower standards. You attract what you expect. High turnover is systemic to other issues and one of them is hiring the wrong person from the start. When you hire good people, you must have a well thought out and written onboarding program that will allow a person to succeed. You can’t just say “Go sell something” anymore and expect people to succeed. If your motto is “The strong survive,” you are not only wrong but you are forcing your strongest people to fail the fastest. Good people and especially Millennials not only expect ongoing training, they require it. Without it, good people recognize a poorly run workplace and will flee. You should have a written, communicated and executed onboarding plan for the first 90 days for each new hire. The more detailed the better. Even when people do survive in our industry it’s often the person who hangs on because they feel like they have no other choice. You may be creating an environment that attracts and keeps the wrong person from the beginning.

LEAD PEOPLE, MANAGE THINGS

By NADA statistics, the average dealer spends over $600 per customer in advertising but little on training. In other words, you are spending a fortune to get the customer but don’t know what you will do when you get them. As much as our business has changed is as much as it has stayed the same. Customers still don’t like buying cars

TO SEE MORE FROM MARK TEWART GO TO CBTNEWS.COM

from dealerships and because you had a record year, you look the other way. If you want to keep good people, train, train and train some more. You require a mechanic to have a fortune in tools to diagnose an issue and turn a

wrench but give the salesperson no tools to sell complex automobiles to complex buyers in the most complex marketplace in history. There is an old saying, “Lead people and manage things.” All great dealerships have great leaders who create great cultures and environments of success and winning through great communications. Conversely, all bad dealerships lack a proper culture and environment because they were created by the weak with poor communication. Thus, people usually leave bad managers rather than businesses. The business and their environments are created by managers and leaders. However, there is a great difference between being a manager and a leader. Leaders always think of and put the team members first, which puts the emphasis on people while bad managers think of people only as pawns needed for their processes. In a complex age, people can be fairly simple. They like to be acknowledged. They like to have their needs met and want the opportunity to manifest their wants once they have met those needs. It’s simply Psychology 101 and Maslow’s Hierarchy of Needs. Your team members are in different stages and must be coached differently. To keep people, especially good people, you must understand them as individuals and understand their “why.” When the why gets strong, the how get easy. As a leader in a dealership, can you tell me about each team member? Do you really know them? Do you know their why? Do you give them the tools and opportunity to succeed each day? Do you recognize them? Do you create an environment of belonging? Do people experience the culture of a tribe and the ability to form friendships rather than one of looking to continually “watch their back?” Here is a test for your effectiveness. Grade yourself from 1 to 10 on each one.

When you hire out of need, you are needy and needy people rarely get what they want. DO YOU ATTRACT AND SELECT THE RIGHT PEOPLE? DO YOU CONTINUALLY EDUCATE THOSE PEOPLE? DO YOU MOTIVATE THOSE PEOPLE? DO YOU PROVIDE EXTREMELY CLEAR EXPECTATIONS? DO YOU HOLD PEOPLE ACCOUNTABLE? The keys to reducing turnover are in the answers to those questions. As a leader, be brutally honest about where you are and where your other leaders are those questions and you will find the right path to getting and keeping good people. The first step to retention is acknowledging the problem and 66% turnover is more than a problem, it’s a disgrace. Let’s all do our best to correct this for our industry before it’s too late.

MARK TEWART

President of Tewart Enterprises Inc. Mark is a sales expert and professional speaker, trainer, consultant, entrepreneur and author of the best seller “How to Be a Sales Superstar – Break All the Rules and Succeed While Doing It.” He has a 27-year career ranging from sales to becoming an executive manager at age 27, to founder and president of four successful companies. He is a professional member of the National Speakers Association and the Author’s Guild. Visit his website at www.MarkTewart.com.

MARCH 2016

CAR BIZ TODAY

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INDUSTRYnews VOLKSWAGEN’S DIESEL EMISSION PROBLEMS HURT DIESEL POWERED CARS

Sales of new, diesel-powered passenger cars have nearly disappeared in the U.S. on the heels of Volkswagen AG’s diesel-emissions cheating scandal, according to the Wall Street Journal. In January, automakers overall reported selling fewer than 225 such passenger cars compared with between 4,800 and 9,500 a month through the first eight months of 2015, according to WardsAuto.com. While Volkswagen’s U.S. sales halt cut demand for diesels, low gasoline prices and worries about diesel pollution also played roles, according to The Wall Street Journal. There were 222 diesel-powered cars sold in the U.S. in January, a sharp decline from the 4,448 sold in the same period a year ago. January’s U.S. sales were about a third of the 631 sold in December. Diesel car sales for 2015 peaked in May, when 9,300 were sold.

APCO HOLDINGS ACQUIRES AUTOMOTIVE DEVELOPMENT GROUP APCO Holdings, Inc. (APCO), a leading marketer and administrator of aftermarket benefits sold by franchised and independent auto dealers, acquired 100% of Automotive Development Group, LLC (ADG) from The Zabel Companies, LLC. ADG’s senior management will remain shareholders and the company will continue to be operated as a separate business operation with the current management team remaining in place.

ADG is one of the largest independent agencies in the automotive aftermarket and dealership training industry. The company delivers dealership consulting, automotive sales training, F &I profitability and compliance training, and superior F &I products to dealerships nationwide focusing on passionately helping dealers build a unique car-buying experience one customer at a time. ADG offers EasyCare and GWC benefits from APCO Holdings, LLC, as well as a full suite of other F &I products from other industry leading providers. See more at: http://adgonline.net

FORMER EDMUNDS CEO JOINS TRUCKS.COM

Trucks.com, an online publication that will feature news and analysis for the trucking industry, named website visionary Jeremy Anwyl as its chief executive. Plans for the website include a robust news service, hard-hitting features and in-depth analysis, said Anwyl, former chief executive officer of auto shopping website edmunds.com. In his 13 years at car news and information site Edmunds. com, Anwyl led its growth from 50 to 550 employees and he guided content and features to create transparency around the automotive business, including in-depth data analysis and free consumer services like True Market Value Jeremy Anwyl (TMV®), which educates car shoppers about what other people in their region pay for the same vehicles. Anwyl comes from 35 years of automotive leadership, including serving as President of Marketec Systems, an international auto manufacturer consultancy firm, and President of USP AA, a company that works with retail auto dealers in the U.S.

U.S. PER-DEALERSHIP SALES ROSE AGAIN IN 2015

The average number of new-vehicle sales per U.S. dealership rose 4.8 percent in 2015 to 966 units, the fourth consecutive annual record. According to Automotive News, automotive consulting firm Urban Science’s annual Automotive Franchise Activity Report also found that last year was the sixth consecutive year of per-store sales growth. The U.S. auto industry set a record of 17.5 million light-vehicle sales in 2015. Last year’s per-store sales increase came as the U.S. dealership total remained mostly flat. The number of dealerships rose 0.7 percent during 2015 to 18,087, while the number of franchises – the brands dealerships offer – rose 0.5 percent.

CARFAX EXPANDS ROLE IN GM CERTIFIED PRE-OWNED PROGRAM

FREE VIN DECODER AVAILABLE

Recently, the Carfax Snapshot tool was added to each vehicle-listing page within gmcertified.com, providing interested buyers with highlights of important Carfax information such previous ownership, reported accidents, vehicle use and more.

HYUNDAI MOTORS NAMES GM FOR GENESIS IN U.S.

Carfax is expanding its presence in the manufacturer Certified Pre-Owned (CPO) program marketplace. Car shoppers now get a Carfax® Vehicle History Report™ with every Chevrolet, Buick and GMC Certified car, truck and SUV at no-cost from the selling dealer. In addition, all Chevrolet, Buick and GMC Certified Pre-Owned vehicles are listed for sale on Carfax® Used Car Listings.

Including Chevrolet, Buick and GMC, 36 manufacturer brand CPO programs currently use Carfax Reports to build more consumer confidence in their certified used cars.

FEBRUARY U.S. AUTO SALES PACE MAY BE HIGHEST FOR MONTH SINCE 2000

U.S. auto sales, after being slowed in January by winter storms, are on pace to reach the highest level for any February since 2000. Purchases delayed from January and Presidents Day deals should to push February sales up about 8 percent, according to Edmunds.com and LMC Automotive. That would result in a seasonally adjusted, annualized selling rate of 17.7 million units, up from 17.6 million in January and 16.4 million a year ago. January and February are typically the two weakest months of the year. Since 1989, February sales have been an average of 13 percent better than January, but this year’s forecasts call for a month-over-month increase of about 18 percent. January 2016 sales fell less than 1 percent to 1.1 million, according to Automata Corp., which said the mid-January storm cost automakers sales of around 15,000 vehicles.

OUTSELL UPGRADES BUYERSCOUT TO HELP DEALER SALES EFFORTS

VehicleHistory.com, an online resource for VIN information on used vehicles, has introduced a free VIN decoder series for the 30 best-selling cars in America. While the company's new VIN decoder series can be of help to customers who are looking for general information about a top-selling used car, the company strongly recommends getting a full VIN lookup report on any used vehicle before purchasing.

Erwin Raphael was named the general manager for the Genesis brand in the United States where he will be responsible for the strategic direction and management of Genesis operations, including sales and marketing. The Genesis G90 will go on sale this summer. Prior to this position, Raphael was the Western Region director and general manager for Hyundai Motor America where he oversaw the operations of more than 165 Hyundai dealerships in 12 Western states. Raphael, who worked for Hyundai Motor America since 2010, also served as the Erwin Raphael director of engineering and quality at Hyundai, where he was responsible for all new vehicle engineering, overall improvement in quality of production vehicles, technical training and support, as well as warranty planning and operations.

TOP 10 CITIES OF MOST SATISFIED CAR SHOPPERS

Outsell, which drives more revenue for auto dealers by transforming how they engage customers and prospects throughout their lifecycle, unveiled new enhancements to BuyerScout®, its innovative buyer-detection product, to help auto dealers better focus their sales efforts.

Nashville has the most satisfied car shoppers, according to a survey by CarGurus. Following Nashville were: San Diego, Austin, Memphis, Birmingham, Tampa, Kansas City, Charlotte, N.C., St. Louis and New Orleans. New York was the city with the lowest percentage of five-star reviews, followed by Baltimore, Chicago, Oklahoma City, Miami, Atlanta, Washington D.C., Houston, Salt Lake City and Detroit.

BuyerScout is the first and only buyer detection product that analyzes behavioral trends, tracks consumer engagements, and tips off dealers when current customers and prospects are in market.

CarGurus looked at the top 51 metropolitan areas and a combined 100,000-plus reviews of dealerships and the percentage that were five-star rated. Slightly more than 57 percent of all the reviews received by Nashville dealerships were five stars.

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CAR BIZ TODAY MARCH 2016

LEGAL

? S E E F R E L A E D

S ' T A WH OF

N O I T I N I F E D R U O Y

Customers are challenging dealer’s fees and courts are listening BY JIM RADOGNA

wo recent actions for alleged dealer fee violations in South Carolina and Indiana are a potential cause for concern in other states due to the likelihood of copycat legal actions. While these states had no caps on dealer fees, a private lawsuit in South Carolina resulted in a $3.6 million verdict and an attorney general action in Indiana resulted in a $625K settlement. Both cases alleged that the dealers overcharged customers because their fees did not reflect expenses actually incurred by the dealers for services.

THE ISSUE IS: ARE THOSE CLOSING COSTS ACTUALLY INCURRED AND NECESSARY?

Although the state doesn’t offer guidance on what dealers can charge, the court in South Carolina interpreted “closing fee” to mean a “predetermined set fee for the reimbursement of closing costs, but only those actually incurred by the dealer and necessary to the closing transaction.” Under that interpretation, the court reasoned that the dealer had to provide evidence it calculated the cost comprising its closing fee, which it could not do. Further, a justice stated “Although we agree that the Closing Fee Statute is a disclosure statement and the department serves as a repository for the required filings, we find that the Closing Fee Statute does more than require disclosure of the 'Closing Fee.'” According to a press release from the office of Indiana attorney general “Under Indiana’s Motor Vehicle Dealer Unfair Practices Act, auto dealers cannot require a motor vehicle purchaser to pay a document preparation fee unless the fee reflects expenses actually incurred for the preparation of documents and was negotiated by and disclosed to the customer.” The dealer was found to have charged doc fees around $479, which the AG ruled was higher than could be justified to cover costs. Indiana law is more specific than South Carolina as far as the requirement that actual expenses be calculated: “It is an unfair practice for a dealer to require a purchaser of a motor vehicle as a condition of the sale and delivery of the motor 10

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CAR BIZ TODAY MARCH 2016

vehicle to pay a document preparation fee, unless the fee:

2 3 4

Reflects expenses actually incurred for the preparation of documents; Was affirmatively disclosed by the dealer; Was negotiated by the dealer and the purchaser; Is not for the preparation, handling, or service of documents that are incidental to the extension of credit; and Is set forth on a buyer’s order or similar agreement by a means other than preprinting."

Other states, such as Connecticut, have regulations that are similar to South Carolina’s in that they primarily address disclosure of the dealer fee but do not offer guidance on the amount a dealer can charge: “A ‘dealer conveyance fee’ or ‘processing fee’ means a fee charged by a dealer to recover reasonable costs for processing all documentation and performing services related to the closing of a sale, including, but not limited to, the registration and transfer of ownership of the motor vehicle which is the subject of the sale.”

Closing costs are being challenged in the courts and it may become a big -- and expensive -issue.

WHAT IS A “REASONABLE FEE”?

So, in a private lawsuit or AG action in a state like Connecticut, the questions may well be what amount is considered “reasonable” and how are the costs justified? Although all cases are different, information from the South Carolina court may lend some insight on how to avoid or defend against dealer fee attacks. The following excerpts from the case would seem relevant: • The dealership’s expert witness in the SC case testified that the dealership’s average closing costs, which were $506.96, greatly exceeded the $299 fee the plaintiff paid. But in calculating the average closing cost, he included expenses for the salaries of finance and sales managers, the building, utilities and outside services.” The court disagreed. “All of these are general operating expenses and not directly tied to the closing of motor vehicle sales. If a motor vehicle dealer wishes to be compensated for these expenses, it

The questions may well be what amount is considered “reasonable” and how are the costs justified?

Virginia Consumer Credit and Protection Act, but agreed that guidance from the West Virginia Motor Vehicle Dealers Advisory Board prohibits dealerships from charging any customer a higher doc fee than any other customer. Arguably, this is not a violation of WV law and thus not “illegal” per se. Rather it is simply guidance from the WVMVDAB whose “statutory purpose is to assist and to advise the Commissioner of the Division of Motor Vehicles on the administration of laws regulating the motor industry; If you don’tvehicle know your to work with the commissioner in developing people, how can you new laws, rules or policies regarding the motor improve vehicles industry; and to give the commissioner performance such further advicetheir and assistance as he or she may from time to time require.” Regardless, WV dealers are bound to follow the Dealer Advisory Board’s directions.

may include them as part of the overall purchase price of a vehicle.” • The court further opined that the term "cost" in the context of the "Closing Fee" Statute "would refer to the amount of money a dealer is required to expend to perform the services it provides to a customer at closing, and to otherwise comply with the disclosure, documentation, and record retention requirements imposed under state and federal law. While we recognize the difficulty a dealer may face in determining the exact amount of a specific purchaser's closing fee prior to closing, we agree with the trial judge's interpretation that the amount charged must bear some relation to the actual expenses incurred for the closing.” • The court emphasized that a "closing fee" is not limited to expenses incurred for document preparation, retrieval, and storage. However, any costs sought to be recovered by a dealer under a closing fee charge must be directly related to the services rendered and expenses incurred in closing the purchase of a vehicle. Given that each vehicle purchase is different, compliance with the "Closing Fee" Statute does not require that the dealer hit the "bull's-eye" for each purchase. A dealer may comply with the statute by setting a closing fee in an amount that is an average of the costs actually incurred in all closings of the prior year.

SERVICES RELATED TO CLOSING A SALE

Based on the above, some ideas for what may constitute “reasonable costs for processing all documentation and performing services related to the closing of a sale” include: • Processing and submission of credit applications to finance companies* • Preparation of finance or lease documents* • Preparation and submission of vehicle registrations both manually and electronically with the DMV • Filing and releasing security liens on purchased and traded vehicles as contractually required by lending institutions • Processing applications for new or duplicate title documents with the DMV • Processing the pay-off of an existing lien on any vehicle offered in trade • DMS (Dealer Management System) costs to process paperwork TO SEE MORE FROM JIM RADOGNA GO TO CBTNEWS.COM

• Software such as Dealertrack or RouteOne to investigate credit*, print required disclosures, and run Red Flags and OFAC checks • Forms, toner, etc. • Compliance training and auditing costs • Fees to attorneys for vetting documents * Some states prohibit the inclusion of fees to process loan documents in the dealer fee.

OTHER DEALER FEES ISSUES

TILA Disclosures - Other lawsuits have claimed that the dealer fee is a finance charge for federal Truth in Lending Act (TILA) disclosure purposes. To avoid this, it’s important to also charge dealer fees on comparable cash transactions. Since you obviously wouldn’t incur credit-related costs listed above on cash transactions, the SC court’s suggested method of averaging the costs in all closings of the prior year would appear to be beneficial. Negotiation of Dealer Fees – Although a number of state regulations indicate that dealer fees must be negotiated with customers, this raises concerns about potential discrimination claims. The reasoning is that if a dealership charges one customer a fee of any kind they have to charge everyone the same fee, or they open themselves up to a lawsuit. Another fear is that charging a different dealer fee to different customers is “illegal.” This does not appear to be the case unless state law specifically prohibits dealerships from charging any customer a different doc fee amount than any other customer. The only state of which I’m aware that has such a prohibition is West Virginia. In a 2014 case brought by the West Virginia Automobile & Truck Dealers Association against Ford Motor Company, the court disagreed that charging different doc fees is prohibited by West

CHARGE THE SAME DOC FEES TO EVERYONE, RIGHT? MAYBE

So the easy answer is to just charge everyone the same doc fee, right? Perhaps. But here’s the rub: Conveyance/Processing fees are dealer-imposed charges and therefore not mandatory - only government fees are compulsory. So it is improper to tell a customer that you MUST charge them the fee – this could lead to a deceptive practices claim. So how do you avoid potential discrimination claims? By being able to show proof that any downward deviations in fees are for valid business reasons. For example, if a manufacturer limits the doc fee for an employee purchase, that reason should be documented in writing and a copy kept in the deal jacket. Another example would be that a competitive dealer offered a lower doc fee that you needed to match to make the deal. Again, documentation is key. This follows the same line of reasoning as NADA’s Fair Credit Compliance Program for rate markups.

Although a number of state regulations indicate that dealer fees must be negotiated with customers, this raises concerns about potential discrimination claims. The information presented in this article is solely the opinion of the author and is not intended to convey or constitute legal advice, and is not a substitute for obtaining legal advice from a qualified attorney. You should not act upon any such information without first seeking qualified professional counsel on your specific matter.

JIM RADOGNA

President, Dealer Compliance Consultants, Inc. Jim Radogna is a nationally-recognized auto industry consultant specializing in dealership sales and finance department legal compliance. His background includes founding and operating a national compliance consulting firm, Dealer Compliance Consultants, Inc., as well as having spent over 15 years in various dealership management positions. Being well-versed in all aspects of dealership operations, Jim has used his knowledge and industry experience to develop unique, no-nonsense compliance and reputation management solutions for automobile dealerships of all sizes.

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MANAGEMENT LEADERSHIP ALIGNMENT

LINKING PEOPLE, PERFORMANCE AND PROFITABILITY

Management alignment leadership identifies the reasons why employees underperform so you can fix it. BY MICHAEL ROPPO

any dealership organizations claim ‘Our people are our greatest asset’ yet few manage that asset to achieve its full potential. Those dealership organizations that do manage, motivate and develop their people effectively have found this results in profound improvements in client service and in their business profits. Increasing performance and profitability through your number one resource is all about knowing your people! This information provides key leadership and management alignment practices and behaviors that will help ensure they get the best from their people and thereby maximizing performance which maximizes their profitability by: • Understand and link people, service excellence and proﬁtability • Know the importance of engaging your people in your business vision • Understand effective leadership behaviors • Adapt your management style to meet changing needs • Influence techniques to gain commitment from colleagues, not just compliance • Improve productivity through managing and developing performance • Address under-performance through effective coaching and feedback • Develop a value added mindset in your people • Understand the business goes where it’s asked for and it stays where its appreciated

measured varies from person to person and dealer to dealer. Depending on the objectives that your dealership organization has identified, results and bottom line improvement may be indicated by: • An increase in training people to perform better • An increase in performance • An improved process • Best Practices • An improvement in the quality of your products or services being served to customers • Better track record for providing value added services • An increase in customer satisfaction and retention initiatives • A service ability that is unique to your industry and organization The reality is that most dealership organizations struggle to make even the smallest improvements

in the core areas that ultimately drive their business performance and success. Working in the business instead of on it can make it difficult to see the results of our efforts. Being deeply involved working within the trenches of the automotive industry for over 30 years has taught me that, at the beginning of the day it’s all about opportunities, and at the end of the day, it’s all about the quality of the results you generate that are directly related to the quality of your people ability to perform! That’s right! Your employee’s willingness and ability to perform can make or break your ability to achieve an increase in performance and profitability and produce better bottom line results throughout the entire dealership and organization.

LINK AN EMPLOYEE’S PERFORMANCE TO DEALERSHIP’S PROFITABILITY

We have discovered the fastest, most productive way for dealership organizations to improve both their immediate and long-term results is through their people, which is their greatest asset.

WORK ON YOUR BUSINESS

Every dealership organization wants to improve their people’s ability to perform, which improves processes that ultimately improve bottom line results. But the way this is achieved and 12

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When your best performers start to falter, the fault may be yours!

6 They do not know what the

performance levels are 7 They do not know how to reach the goals expected because of lack in training

When employees are not functioning at the level expected of them or are not producing the intentional expected and communicated results, one or more of the seven reasons may be the driving force. However there is a remedy to fixing these issues with solutions that are based on performance.

If you don’t know your people, how can you improve their performance Dealership organizations need a proven method that directly links an employee’s individual contribution with the dealership organization’s ability to stay valuable, competitive and profitable. While we did not invent nor develop the method, we did spend a lot of time influencing and practicing it and we call it Management Alignment Leadership. The Management Alignment Leadership process is designed to accelerate improvements in people process and performance across the dealership organization, from contributors on the front lines of the service department, to senior dealers, leader and managers. We believe that in order to create, see, influence and experience intentional results and sustain the level of change required to do better over the long term, every member of a dealership organization must be equally accountable for the organization’s success. Management Alignment Leadership defines the processes required to do so by understanding the reasons why employees do and or do not perform.

LOOK AT YOUR TEAM’S PERFORMANCE, THEN FIX IT AND OFFER SOLUTIONS

When working to improve service performance processes, it is important to take a holistic approach, and examine the 13 profit centers of service so opportunities can be maximized. These are the following:

Reservations Reception Consulting Work Distribution Progress Checking Work Performance Vehicle Washing Quality Assurance Invoicing Active Delivery Cashiering 12 Follow-up 13 Best Practices

1 2 3 4 5 6 7 8 9 10 11

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This means that we do not want to focus solely on the process steps; we also want to look at how well the people who provide the services perform in following the best practice and process outlined and trained by management. At times, we will find that the employees are not doing as well as they should be doing. When this happens, we have to seek out, embrace and find out what is driving their lack of performance, and work on fixing the problem at its source by making an example and offering solutions with respect in hand.

THE 7 REASONS WHY YOUR EMPLOYEES AREN’T DOING THEIR BEST

Analyzing performance issues, and identifying the reasons that cause people to compromise performance, function poorly, requires some uncomfortable conversations to take place while providing solutions that can be implemented to make improvements. What I would like to focus on are seven reasons that cause employees to compromise their performance ability. They are:

1 2

3 4 5

People are not acknowledged or rewarded for performing well People are being paid even if they do not perform to the level of expectations set by management People get rewarded for not performing It does not matter if people perform Not removing the obstacles that prevent people from performing well

When people are not acknowledged and rewarded for performing well, the staff can feel like they are being punished for doing good work. This is usually seen when a top-performing employee is given more and more work or responsibility, to the point they become overwhelmed and burned out. The unfortunate part of this is that it isn’t management and the leadership’s intention to punish the person, it just happens

DON’T PUNISH YOUR BEST FOR DOING THEIR BEST

When staff members are strong performers, their leadership can develop a reliance on them. They know that when they give their top-performers an assignment, that it will get done, usually on time and with good quality results. Because of this, dealers, leaders and managers are more likely to (unintentionally) pile work on to their best performing employees or ask them to handle less pleasant tasks. This workload eventually wears even the best performing people out. As the top-performing employees become overloaded, two things can happen. First, they can be so overwhelmed by the demands on their time, and be given so much to accomplish, that they simply cannot maintain their previous level of performance. In the process they will begin missing deadlines because they are trying to juggle too many priorities. Their overall quality of work will decrease because they are rushing to get all of their assignments done. When top-performers begin to fall behind and fail at assignments, it can be concerning for their dealers, leaders and managers, but more importantly, it can also create a great deal of unneeded stress, anxiety and frustration for the employee. To counter this, dealers, leaders and managers need to keep a close eye on the amount of work and types of tasks being given to their top-performing employees, especially the service advisory staff, employees and staff members who are customer facing. And, let’s not forget that the source of all our business is our customers.

MICHAEL ROPPO

Director of Fixed Operations and Training /QPS WithumSmith+Brown Automotive Domain Results Michael has more than 30 years of experience providing consulting services to the auto dealer industry through Automotive Domain Results, a highly specialized practice with a mission is to help dealerships of all sizes achieve maximum profitability, customer satisfaction and retention. Through the implementation of Automotive Domain’s propriety tools, training and resources, he has helped countless dealers improve the quality of their management teams and the personnel who come in contact with their customers. Michael also brings the deep resources made available through Automotive Domain’s parent company, WithumSmith+Brown, CPAs, becoming a full service advisor to any auto dealer. Visit his websites at Withum.com and AutomotiveDomainResults.com.

MARCH 2016

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ask THE

pros

’m considering buying radio advertising for the first time. What do I need to know?

-Ralph, Sioux Falls, SD

A: Liz Daney, EVP, Chief

Media Officer, Fitzgerald + Co., an Atlanta-based ad agency that is part of Interpublic Group.:

There are three pieces of information you must have to start a radio buy. The age and gender of the people you are trying to reach, flight dates or seasonality of your schedule and the length of the commercial you are going to use. Traditionally, a 30 sec. commercial or 60 sec. commercial are the most common. When sitting down with the station(s), ask where that station ranks among all radio stations against those people you want to reach, Again, this is age and gender. The formats of the stations are also important. Contemporary Hits format reaches a young audience, the County format and Adult Contemporary reach the broadest age spectrum, Adult Contemporary and Contemporary Christian reach more women than men and sports or News/Talk reach more men than women. Since formats can skew towards certain demographics or gender, several stations would be recommended to be part of a buy. A radio station’s air time is split up into Dayparts which can be purchased singularly or several can be purchased together. Those Dayparts are “AM Drive” which is generally 6A-10A, “Midday” which is 10A-3P, “PM Drive” which is 3-7P, “Evening” which is 7P-Midnight and “Overnights” which is Midnight-6A. A person can negotiate for spots to run in specific Dayparts which is the most expensive way to purchase radio, in a TAP Plan which is a third of spots running in AM Drive, a third running in Midday and a third running in PM drive. The last way to purchase radio is “Run of

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t CBT News, we are fortunate to partner with the best trainers in the industry. Whether it’s information on sales, F&I, marketing, management or fixed ops, our contributors are the go-to professionals for reliable, relevant advice for dealership personnel. You have access to the foremost authorities in the retail automotive industry. Need a new closing technique? Wondering what’s the best way to increase sales in the service lane? Send us your questions at AskThePros@ cbtnews.com. We’ll forward your inquiries to our ensemble of experts.

Station” which is Monday-Sunday, 6A7P or 6A-Midnight. Usually, this is the most economical way. Asking a radio station to participate in an event at a location is called a “Remote”. The station would supply a remote truck or van, a DJ to work the remote and small prizes like t-shirts or Koozies. A Remote usually includes 10 sec. or 15 sec. promotional announcements on the station for the remote. But, the DJ is paid separately which is called a Talent Fee. If a DJ is used to voice a station produced spot for a client, the station is paid a production fee and the DJ receives his or her talent payment.

y dealership carries commercial property and commercial general liability coverages from what I understand is an “all risks” policy. Are we covered for a theft of electronic consumer information?

-Lou W. East Hartford, CT

A: Lewis E. Hasset, co-chair of the Insurance and Reinsurance Practice at Morris, Manning & Martin.: Probably not. Any electronic data breach can trigger multiple costs and liability, including system remediation and restoration expense, notification expenses, crisis expenses, regulatory defense liability and lawsuit liability. Typical commercial property and general liability coverages will not cover these additional risks and not all cyber risk policies will cover all additional risks. It is important to identify the various coverages available and determine those appropriate for your business.

’m looking to save money, so can a 20 Group be effective if I do if remotely?

-Raoul E. El Paso, TX

A: James F. Dodd, Sr., Dealership Management Consultant, NADA ATD 20: The main advantage of virtual 20 Group meetings is time management. If you are a small dealership with limited resources it may be difficult to leave the business for a couple

of days. Virtual meetings are also more cost effective. This venue avoids the cost of travel and meeting expenses. If the group is going viral, I would recommend the group get together for at least one in-person meeting each year. Keep the virtual meetings short enough to maintain focus. Meet more frequently and minimize areas of discussion to keep on point.

A: Chip Maher, Founder and Principle of CWM Consulting: More often, those requests [for virtual meetings] come from dealers who are dipping their toe into 20 groups without making a big commitment. They feel virtual is one way to do it with minimal expense and exposure. While employee training may be going remote and online without losing effectiveness, 20 groups need to be conducted live to be effective, both from the perspective of the moderator and the perspective of the dealer footing the bill. [To make it successful] You need to make sure the group size is not that big that you can’t get around to everybody [as the moderator]. You don’t want to get more than five to eight dealers in a virtual group, especially if a dealer brings one to two managers as well. At 10 or 15 people, that’s really hard to keep them engaged in a virtual format. You want to make sure that attendees come prepared, that you set objectives and when you meet again, you hold people accountable to the objectives, so they are engaged. As an example of a concrete example, say one dealership is lagging behind the others in terms of service department profit contribution. You would want to set specific objectives for that store to close the gap by the next meeting and gross up.

888.628.6779 | eleadsales@eleadcrm.com | www.elead-crm.com ÂŠ Data Software Services, L.L.C. 2016

TECHNOLOGY OPENS LINES OF COMMUNICATION

WITH CUSTOMERS DURING & AFTER SALE Helping Customers Understand the Technology Deepens Relationships BY MARY WELCH

study by J.D. Power stating that 20% of all customer-reported problems are technology related provides a big opening for dealers and service departments to deepen relationships with customers by going the extra mile to ensure they know how the technology works even after the car leaves the dealership’s lot. “We want our guests to truly feel comfortable using the technology and we sometimes think of ourselves in the same way a lot of people do with Apple and their Genius Bar,” says Marcus Williams, vehicle operations manager at Lexus Southern Area, which is comprised of 65 dealerships in 11 states. “If they have a question or are having trouble, we want our guests to feel comfortable coming in or calling so they can learn. And, if there’s a problem, we can fix it. It’s non confrontational. And, like at Apple, it strengthens the brand, strengthens the relationship and if while they’re walking around and browsing and they happen to see something new, even better.” The survey showed that the problems with infotainment, navigation and in-vehicle communication systems — collectively known as audio, communication, entertainment and navigation (ACEN) — now account for 20 percent of all customer-reported problems. ACEN is now the most problematic area on most vehicles and is the cause of the industry’s 3% yer-over-year decline in vehicle dependability. The study, now in its 27th year, examines problems experienced during the past 12 months by original owners of 2013 model-year

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“We found that there is a lot of confusion with consumers about how the technology works and many don’t even use it. We found that 40 percent never use the concierge service or the mobile router.”’ vehicles. Overall dependability is determined by the number of problems experienced per 100 vehicles, with a lower score reflecting higher quality. The study covers 177 specific problem symptoms grouped into eight major vehicle categories. “We’ve been tracking this and the problems keep increasing. Last year technology problems ranked fifth in issues; this year’s it’s ranked third,” says Rene Stephens, vice president of U.S. auto quality for J.D. Powers. “It also is across the board. It’s every mix, every model — from highend cars and small compacts. And, with more penetration of technology in cars the more the problems will continue. If consumers don’t learn how to use Bluetooth properly it’s going to annoy them for years.” The most reported problems are Bluetooth pairing/connectivity and built-in voice recognition systems misinterpreting commands. Navigation systems that are difficult to use and are inaccurate are among the top 10 most frequently reported problems. The importance of this issue affects brand loyalty. Among owners who experience no

problems with their vehicles, 55 percent purchased the same brand again while only 41% who experienced three or more problems with their vehicle stayed with the same brand for their next purchase. In addition, only a third of owners who had to replace a component outside of normal wear and tear said they would definitely repurchase or lease the same brand again. “We found that there is a lot of confusion with consumers about how the technology works and many don’t even use it. We found that 40 percent never use the concierge service or the mobile router. They think it’s great; they don’t know how to use it,” she says. “But consumers were increasingly satisfied when the sales team at the dealership did something like pairing the phone. Satisfaction went up dramatically. Williams agrees. “I’d say a large precent of customers simply don’t know how to use the technology or understand what all it could do for them. A lot of this technology we didn’t even have five years ago.” Pam Donahue, senior manager of Product and Sales Training, Nissan U.S., agrees that technology is a great avenue for connecting with customers. Nissan’s Murano received

high marks. “Technology can be intuitive for some people, challenging for others. We are all prewired differently and have different levels of experience with advanced technology,” she says. “Detailed explanations and demonstrations during the sales process, and also during the service process, can help customers understand how technology can make their driving experience and car ownership more rewarding.” Like Lexus, Nissan has tech advisors to explain and demonstrate how the technology works and to address any customer issue. “Any opportunity we have to continue our dialogue and relationship with customers can strengthen our brand opinion and also customer loyalty. Helping someone to understand a technology or to use it more effectively is rewarding for us because it helps our customers to realize the fullest potential of their vehicles.” Lexus, which scored highest in the survey for the least amount of issues, says that the sales teams go through training several times a year to ensure that they are up-to-date with the latest and can explain it easily and simply to customers. “We embrace the technology and use our familiarity with the technology as a way to separate us from our competitors,” Williams says. In fact, Lexus uses the technology as a way to further delve into the customer’s needs while in the sales process. “We ask a lot of probing questions to gauge what level of knowledge they have about our technology and what kind of vehicle would meet their needs. We have some customers who have a very adept knowledge of technology and want more information on performance and capability so we shift the conversation that way. Again, it helps build the relationship during the sales process; it opens up conversation. During the test drive, our sales consultant is pointing out different buttons and lights and explaining them.” In addition to constantly making sure the sales team is up-to-date on the technology aspect and how to sell it, the brand also has a technology specialist whose sole job is to explain the technology. The specialist not only supplements the salesperson’s conversation but is available to answer questions either by phone or in the dealership if a customer has a question long after they purchased the car. The technician also, if needed, joins with the service department to

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help explain the problem. “You know how it is, you think you learn something and then two days later you forget it? Well, that happens all the time. Short attention spans. I think it’s fair to say that a lot of the problems are that people don’t know how to use it properly and therefore think it’s broken or doesn’t work to their expectations,” Stephens says. Lexus also has a delivery specialist whose job is to again explain every technological aspect of the car and showcase the car’s capability. “We make sure they go through every nook and cranny with the client,” he says. “We also try to set up some of the technology for them like maybe programming their home into the navigational system or linking up their phone.” Stephens says that when a dealership helps set something up, satisfaction with the car and dealership shoots up. “If a customer doesn’t use a feature in the first 30 days, they tend to not use it. They think it’s cool but forget about it,” she says. “So that’s a critical time.” Another way a dealer or service department can deepen the customer relationship is to inform them of any software updates. “A lot of companies have apps that remind a customer of the need for a tune-up but they also tell them if they need to update the software,” Stephens says. “But again, if a dealer wants to send out an email or a friendly reminder, that’s another way of connecting long after the sale.” To Williams, some of the Lexus dealership do a great job of follow-up. “We have some that invite guests back to go over some things or introduce them to some of the new technology they may be interested in. Some guests do take advantage of it. Sending an email out about a technology update or issue I believe helps us tremendously. Again, it’s like Apple and keeping clients engaged long after the purchase.” Adding, “I’m interested in establishing a relationship at the time of purchase and having that person feel like a member of the dealership family. Helping them understand the technology and what it can do for them makes them truly appreciate they car they purchased and we want them to come back for the next purchase.”

KEY FINDINGS 53% of owners with Bluetooth pairing/ connectivity problems said the vehicle didn’t find/recognize their mobile phone device. Among owners having a voice recognition issue, 67% said the problem was related to the system not recognizing misinterpreting verbal commands. The number of engine/transmission problems decreases to 24 PP100 in 2016 from 26 PP100 in 2015. Seven of the top 10 problems are design-related. Design-related problems account for 39% of problems reported in the study, a 2-percentage-point increase from 2015.

HIGHEST RANKED NAMEPLATES AND MODELS Lexus ranked highest in vehicle dependability with a score of 95 problems per 100 vehicles, followed by Porsche, Buick, Toyota, GMC. GM Models receiving an award include the Buick Encore; Buick LaCrosse; Buick Verano; Chevrolet Camaro; Chevrolet Equinox; Chevrolet Malibu; Chevrolet Silverado HD and GMC Yukon. Toyota awardees included the: Lexus ES; Lexus GS; Lexus GX; Toyota Prius v; Toyota Sienna and the Toyota Tundra.

ALSO RECEIVING SEGMENT AWARDS ARE THE: • Fiat 500 • Fiat Fit • Mercedes-Benz GLK-Class • MINI Coupe/Roadster • Nissan Murano

“If consumers don’t learn how to use Bluetooth properly it’s going to annoy them for years.”

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ASSOCIATIONnews 2016 NADA CONVENTION: MOBILE APP NOW AVAILABLE The mobile app for the 2016 NADA Convention & Expo sponsored by Naked Lime is now available for download on smartphones and tablets. The free app, which syncs with myNADAplanner, is easy to download and install. Users will get instant access to everything that’s happening before, during and after the convention. Features include: • Access up-to-the-minute session and event updates • View workshop session handouts & presentations • Plan your day and build your own personalized schedule • Explore the electronic expo hall, featuring company descriptions and booth locations • Easily search products and services on the expo floor • Find your way throughout the convention center and expo using the walking maps • Rate workshops and sessions The app is available in the App Store or Google Play. To download on your phone or tablet, search for NADA 2016.

40 YEARS OF GIVING Founded in 1975, the National Automobile Dealers Charitable Foundation has contributed more than $13 million to communities supporting emergency assistance for dealership employees after natural disasters as well as scholarships. As a result of a successful collaboration with Canine Companions for Independence to provide trained assistance dogs for children, NADCF is now embarking on a similar mission to help wounded warriors.

NADA SUPPORTS NHTSA PUBLIC AWARENESS CAMPAIGN ON RECALLS National Automobile Dealers Association (NADA) President Peter Welch responded to the National Highway Transportation Safety Administration (NHTSA)’s announcement of a new public awareness campaign called Safe Cars Save Lives that urges consumers to check for open recalls at least twice a year and to get their vehicles fixed as soon as parts are available. “NADA fully supports smart strategies aimed at expanding how owners and operators are reminded that they have or may have vehicles with outstanding safety recalls, and NHTSA and Administrator Rosekind should be commended for this effort to increase the recall completion rate by raising awareness among the public about the importance of responding to manufacturer and dealer notices about an open recalls on their vehicles.” NADA, which supports a 100-percent recall completion rate, urged NHTSA to consider launching such a public awareness campaign - similar to the effective “Click it or Ticket” ad campaign - during the April 28, 2015, NHTSA Workshop entitled Retooling Recalls: Getting to 100% Completion.

TRANS-PACIFIC PARTNERSHIP TREATY BENEFITS CAR INDUSTRY The Automotive Industries Association of Canada says that the yet-to-be-ratified agreement Trans-Pacific Partnership (TPP) among 12 countries will lower tariffs on Canadian auto parts being exported to TPP countries and the lower the North American content required in vehicles and parts. It also said that TPP will not likely have a great impact on the automotive aftermarket. The 12 TPP countries are: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam. Canada has signed the agreement. The association prepared a special report, which can be accessed here: https://www.aiacanada.com/publications/research-and-policy/

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LEGISLATIVE VICTORY FOR VIRGINIA AUTOMOTIVE ASSOCIATION The Virginia Automotive Association kept a close eye on two bills coming from the Virginia Legislature, both introduced by Senator Jeremy McPike from the Northern Virginia area. The two bills are: • SB522 This bill would exempt new motor vehicles from safety inspections for the first two years of ownership or operation after purchase. • SB 526 This bill provides that passage of a motor vehicle safety inspection is a condition to registration or registration renewal. Motorists would be provided with a safety inspection decal that indicates the month of the vehicle’s registration and requires that safety inspection stations obtain such decals from the SMV. The bill also provides for electronic submission of evidence of passage of a safety inspection to the DMV. The association’s Legislative chairman John Kline and Executive Director Steve Abridge met with Sen. Pike and expressed their concerns. He agreed to pull SB 522 and discuss SB526 with the Transportation Chair, Sen. Carrico, who then proceeded to strike down the bill. Both are dead for the 2016 session.

OIADA NAMES SALVADOR ALVAREZ QUALITY DEALER OF THE YEAR The Oregon Independent Automobile Dealers Association named Salvador Alvarez, owner of Zamora Auto Sales in Salem, OR., its quality dealer of the year. Alvarez started out as a mechanic and then a salesman. He opened his own small dealership in 1999, which grew into his next and remarkable dealership in Salem and with a name change in 2000 to Zamora. Alvarez currently employs 13, which includes the service and detail departments with plans to move the service and detail departments to his expanded area allowing for additional room at the dealership.

MORE THAN 400 2016 VEHICLES AT ATLANTA AUTO SHOW The Metropolitan Atlanta Auto Dealers Association again hosted the 34th Annual Atlanta International Auto Show at the Georgia World Congress Center. On hand are more than 400 new import and domestic cars, light trucks, vans and sports utility vehicles. There will be several preproduction vehicles including the 2017 Audi R8; 2017 Buick LaCrosse; 2017 Cadillac XT5; 2017 Chrysler Pacifica Minivan and the 2017 Mercedes-Benz MG C63 coupe edition.

OHIO ASSOCIATION BACKS BILL EXEMPTING DIGITAL AD SERVICES FROM SALE AND USE TAX The Ohio Automotive Dealers Association (OADA) backed House Bill 466 that was introduced into the Ohio House of Representatives specifically exempting digital advertising services from a sales and use tax. House Bill 466 is in response to an Ohio Department of Taxation (DOT) Information Release issued in December that indicated advertising inventory on the Internet is a taxable service if the dealer has the access to control the advertisement (upload data, attach descriptions, etc.). The DOT has indicated this service meets the definition of an Electronic Information Service (EIS) and is therefore taxable. The DOT’s assessment on the taxability of digital advertising lies directly in contrast with Legislative intent. For the past two state budget cycles, OADA worked very closely with the Legislature to defeat efforts to expand the sales tax base to advertising. The OADA believes that subjecting digital advertising services to sales tax will reduce dealer spending on advertising, which in turn will impact sales.

CBT Conference & Expo 2016 Take a look at what the CBT Conference & Expo Feb 9-11, 2016 automotive conference had to offer.

RECAP

On February 9th we kicked off our inaugural CBT Automotive Conference & Expo. The successful event welcomed 700+ attendees from all areas of retail automotive. Over the 3 days visitors were entertained, educated and enthused by a roster of over 65 high caliber speakers and trainers covering every aspect of the industry. Guests were wowed by Jason Dorseyâ&#x20AC;&#x2122;s insightful coverage of the millennial segment and agreed he stole the show with knowledge and enthusiasm. Coach Nick Saban taught guests the importance of leadership and nurturing your team while Marcus Lemonis and Patrick Lencioni provided straightforward management lessons and powerful business takeaways. It was our mission to provide our guests with an experience no other conference in the industry could offer and we did just that. The CBT Conference & Expo exceeded our attendeeâ&#x20AC;&#x2122;s expectations and will continue to do so. Be sure to join us for the 2017 CBT Conference & Expo! SD

What did you miss from the CBT Conference & Expo?

CBT Conference & Expo 2016

SURVEY RECAP How would you rate the line-up of KEYNOTE speakers:

Did the conference fulfill your reason for attending?

75% - Excellent 25% - Above Average

YES - 100% What was the main reason for attending:

PERSONAL GROWTH

SPEAKERS NETWORKING

16%

CONTENT

16%

Do you plan to attend the next CBT Conference & Expo in 2017?

85%

YES

15%

Undecided/No

26% 75% YES

42% 25%

NO/UNDECIDED

Would you recommend the CBT Conference & Expo to a friend or colleague?

When surveyed, the majority of attendees agreed, the CBT Conference was a success!

DEALERSHIP PROFILE

VICTORY CHRYSLER DOESN’T JUST SELL CARS; IT

FEEDS THE COMMUNITY Dealership partners with nonprofit for food pantry. BY MARY WELCH

ike every dealership owner, Eric Gentry has monthly sales goals. But he also has his eye on another goal: to give away a million pounds of food by 2018.

The Reola Grant Center operates its certified food pantry out of space from Eric Gentry’s Victory Chrysler Dodge Jeep Ram dealership in Kansas City. Last year, Victory and Reola gave away about 300,000 pounds of food. At Christmas, they donate meals to about 1,000 families. The dealership has three deep freezers where they keep meat and a couple of railroad car storage containers for the dry goods. Classic Buildings in Kansas City donated a shed and delivered it to the dealership for more dry food

storage as well as for other necessities. “I’ve been 20 years in the car business and I feel we should be doing more than selling cars and making money,” he says. “I was motivated to do more in the community.” Gentry’s involvement with Reola came about in a very roundabout way. Gentry grew up on a farm in North Missouri and graduated with a degree in public relations from Northwest Missouri State. He moved to Lake of the Ozarks and worked as a Chevy sales person for several years. He then moved to Kansas City to become a finance manager and eventually the GM at Randy Reed Buick GMC for 11 years.

Eric Gentry, Janis Witt, CEO of the Reola Grant Center, and Ron Witt

“The Chrysler dealership, actually so is the Ford, are in very old facilities and had no money spent on them. But it’s not about the facilities;

it’s about having the right people.” - Eric Gentry One day Troy Duhon of Premier Automotive Group in New Orleans called and said he was interested in buying a Chrysler dealership in Kansas City and wanted to know if Gentry would be his partner. The two men met and hit it off. “We’re both faith-based men,” he says. The two bought Bob Hoss Chrysler Dodge Jeep Ram in April 2014. That June he had the opportunity to buy Bonner Springs Ford but he was financially depleted after buying the Chrysler dealership. “I said I was out of money but my aunt and family found out about the opportunity to buy the Ford dealership. They said they would just borrow the money off the family farm,” he says. “I can literally say I bet the farm on a Ford dealership.” Both dealerships were in pretty bad parts of town. “The Chrysler dealership, actually so is the Ford, are in very old facilities and had no money spent on them. But it’s not about the facilities; it’s about having the right people.” Gentry found the right people and the dealerships, which were selling about 25 to 35 cars each a month, now in less than two years are averaging

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The dealerships buy a lot of the food, Gentry says, or donates money to the Reola Center to buy. Sometimes supermarkets will also donate. “We buy the biggest portion of the food, which comes from funding through the two dealerships. Last year we spent maybe $80,000 to $100,000.” “Ron [Janis’ husband] and Janis do 80 to 90 percent of the work but my people will volunteer and help set things up or pack boxes. It’s a shared effort of champions.”

Regardless of whether the food pantry helps bring in customers, business has been coming. He has had to hire five more mechanics and six more sales people for the Chrysler dealership and he’s run out of space. He doesn’t own the land where the Ford dealership is located so he’s moving and expanding both dealerships. The new Victory Ford dealership will be 32,000 square feet with 20 service bays and the Victory Chrysler will be 30,000 square feet with 20 bays.

“I’ve been 20 years in the car business and I feel we should be doing more than selling cars and making money. I was motivated to do more in the community.” - Eric Gentry

about 100 cars a month. “I’ve been blessed with a lot of good friends in the car business and my best friends are the ones I go to work with every day. They are my brothers and sisters and I wouldn’t have it any other way,” he says. “We trust each other.” Interestingly, Gentry says he doesn’t recruit because people in his former dealerships have reached out looking for work. “Honestly I’ve had a lot of people call and say they wanted to join me and be a part of what we were building,” he says. “Not a single one came because they were getting a pay raise.” Less than a year after purchasing the Chrysler dealership he saw a news story about how the Reola Grant Center, which gave food to the homeless and needy, had lost its home and would be closing. “It was right before Thanksgiving and it just didn’t seem right,” he says. He contacted Janis Witt, CEO of the Reola Grant Center. “He called and said he liked what we were doing and asked me what my immediate need was,” she recalls. “He asked me to come by his office. He said he wanted to see me keep doing what I was doing and not stressing out over not having a place. I didn’t believe him. He offered to buy me a building but I didn’t want that.”

Although the food pantry consumes most of his community relations budget, Gentry says he will “try to support any worthwhile cause, maybe not as much as we’d like but we help.” This January the dealership bought 300 new coats and gave them to many of the food pantry recipients. They also passed them out to the homeless and went to a local community college and gave out coats. They also gave some to the police to pass out. “I really don’t care if this helps with sales,” he says. “But I do believe it affects the culture and creates a giving attitude and it opens people’s hearts. We don’t sell any cars off of this but sometimes people will come in to look at a car and ask about the food stand. We’ll answer questions and tell them about it. The more people know about it, the more they want to help.”

Both will be in the Legends Auto Mall. The old Chrysler dealership will become a used car dealership and there will be more room for the food pantry to operate. In fact, it’ll triple of the size of the pantry’s space. For Witt, her relationship with Gentry and the dealership is ideal. “They’re wonderful and all accolades of being phenomenal community membership should go to them,” she says. “He came into this community and made a tremendous difference. This is a business that gives to a community, not takes away. That’s what I say about Eric and his team — they came in, joined the community and worked to make it better.” Photos by Beau Raines

She came back the next day and said she wanted a room in his dealership for Thanksgiving. “He said fine and that was that. It was that simple,” she says. “Slowly we started to steal space from the dealership, little piece by little piece. That Thanksgiving they gave out food for 250; a month later, 1,000 for Christmas. Witt stresses that they are not a food kitchen. Rather they give groceries, including meat, to families or to a house where a number of homeless people may be living so they can cook their own meals. Recipients have to register, have an ID and make an appointment to pick up the groceries. “We don’t hand out prepared meals. Many of our recipients are working families and this helps supplement their meals but we also give out food packs to people and that’s the only food they get.”

MARCH 2016

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FIXED OPS

A PRISTINE BUILDING SHOWS A COMMITMENT TO EXCELLENCE AND CUSTOMERS Sometimes a fresh coat of paint does wonders for morale and image

BY CHIP WALKER

o you always think of your dealership as one large massive thing? What I mean here is, do you always look at your facility as one piece? So, if the piece needs something, where do you begin and how? Let me encourage you to take a different approach to how you look at your dealership. We all want our facility to look terrific for our guests. We want them to be warm and inviting. We want them to be clean. We want them to be easy to navigate, and of course, kid friendly. The OEMs break the dealership into “customer touch” areas and “non-customer touch” areas. What this entails varies from OEM to OEM, but

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for the most part the divisions of these areas are an industry-wide standard, with some requirements that may be unique to a specific OEM. Simply, customer touch areas include any and all areas the retail public may in the normal course of the transaction of business be expected to use or visit. These includes the showroom, F & I, retail parts, guest restrooms, service drive, service manager’s office. These areas all fall under the image guidelines set by the OEMs and covered in the DID books and documents. Non-customer touch areas are any parts of the building that in a normal course of transacting business a customer would not, see, enter, or spend time. These are typically areas like the shop,

general office, break rooms and training rooms. One exception is that there are OEMs that not only encourage, but, require visual access to the shop. This is an area of the customer lounge with a bar and stool arrangement that looks out via a large picture window on to the shop. While I personally do not like this option/ requirement, one OEM feels it provides an open concept to the mystery of repair process. The guidelines or requirements for the customer touch areas are really simple for the most part to understand. Most, if not all OEM image requirements can be found online or in your OEM’s DID books: (Design Intent Documents). In these books all customer touch area finishes and

“I don’t care how “cool” or interactive your kid’s zone is, if it appears dirty, this will be a major negative takeaway to your guest and for their kids.” details can be found. This is a very encompassing list. Paint colors, floor coverings, lighting, tile, carpet, just to name a few. One of the biggest challenges in determining a starting point for taking care of your facility is, where do I start? My dealership is already compliant, but due to daily wear and tear, there are some areas that need freshening or updating. During our daily activities inside our dealerships, we spend 8, 9, 10 hours a day taking care of our guests and staff. Walking the same hallways, visiting the same offices, using the same restroom and getting your coffee from the same coffee bar, we never really see “how” those areas really look! What we need here is to step back and use a technique I call “customer eyes.” Much easier said than done. This technique is really basic. We are trying to see our facilities and amenities as our guests see them every day. Especially first time guests! Look through their eyes on how your facilities really look. I promise you they will see things you walk by 50 times a day. Ask for help! If you want and can face the music as to how your guest really sees your facility, ask a trusted friend to do a walkthrough and give you feedback. If you are a part of a 20 group and it’s your turn to host, have your group members do a walkthrough for you and see what they think. Don’t be surprised if the results hurt a bit. You asked for the truth, so embrace the results. Now that you have your results, what is the next step? This is where we use the pieces and parts concept. Begin with your highest traffic

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areas. This is usually the customer waiting area/ lounge, kid’s area, guest restrooms, and any type of refreshment/coffee bar. If your independent walkthrough or your own evaluations show your carpet is tired or stained, will cleaning do? Or, is it time to replace? How clean is your kids play area? In last month’s column we talked at length about all of the things dealers are doing to increase traffic in the dealerships, and we spent a large portion of that on kid’s areas and what can be done. The number one thing here — cleanliness! I don’t care how “cool” or interactive your kid’s zone is, if it appears dirty, this will be a major negative takeaway to your guest and for their kids. Look at the grout lines between your tiles, is it clean? This will be a very clear indicator about your housekeeping. Look in the corners, base boards, walls, do we need a fresh coat of paint? Now the big one … our guest restrooms. Whenever I travel to a new client’s dealership, I always visit the restrooms that are provided for the customers. This trip always speaks volumes to me about the level of detail put into the care of the dealership. Remember, “the speed of the

leader equals the speed of the team.” If you don’t think it’s a priority, your staff won’t either. Look at your countertops and your trash baskets. Do your soap dispensers drip? Is water dripping off of washed hands to get to the towel rack? Yes, check how your toilet paper dispenser is being used and how the extra rolls are stored. Finally in this area, remember that there are different requirements for the men’s restroom and the women’s restroom; be sensitive to both. To close this month’s column, here is your recap. Daily upkeep on your facility is a constant, ongoing responsibility. Your guests see every day the same things you and your staff walk by every day. The manufactures spend huge amounts of money developing their image programs, take advantage of all of that work. If you don’t need a remodel, you can still use the DID book as a guideline for colors, vendors and materials for your pieces and parts that need attention. Good luck, pick an area, knock it out, and move on. If you are visiting NADA in Las Vegas, stop by the booth. We will have lots of examples how you can update your pieces and parts, without breaking the bank.

“Daily upkeep on your facility is a constant, ongoing responsibility.”

CHIP WALKER

President of Custom Facilities Inc. Chip has 25 years of construction and design experience and also spent 10 years as COO of one of the largest dealership groups in the Midwest. He also serves as his company’s in-house expert on manufacturer’s imaging programs and on compliance requirements. See the website at www.buildmydealership.com.

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MARKETING

What Earns A Dealer A

DEALERSHIP OF THE YEAR AWARD From DealerRater?

Online Reviews Drive Leads and Purchases BY GARY TUCKER

anufacturers invest billions of dollars to develop products that meet the needs of an ever more discerning consumer. At the retail level, dealers spend millions every year to attract consumers and market those products at an attractive price. But product and price are only two of the four critical components to providing a satisfying car buying experience. Now more than ever, consumers are researching not only the place where they intend to buy, but even the person who is going to help them go home in a new car. Galpin Honda understands the full picture and has invested in making its people as inviting as its showroom. It’s part of the effort that earned Galpin Honda the 2016 Dealer of the Year Award from DealerRater. Given annually to top U.S. and Canadian dealerships, this year’s Awards recognized service excellence based on 610,000 customer experience reviews of nearly 16,000 dealerships posted on DealerRater.com and DealerRater.ca.

THE DIFFERENCE BETWEEN GOOD AND BAD

The difference between good and bad for a customer buying a new or used vehicle isn’t necessarily product and it isn’t necessarily price. It’s the experience of purchasing it. According to a DealerRater consumer survey, 55 percent of car shoppers test drive just a single car. Another 22 percent choose to drive just two vehicles. Increasingly, consumers have made their make and model buying decision long before they’ve ever entered a showroom. What drives prospective buyers to Galpin Honda versus all the other dealers in the San Fernando Valley? According to Galpin Motors Marketing Manager Jeff Skobin, it’s online reviews. “It’s no secret that today’s consumers seek out and trust online product reviews,” he says. “We love that our customers have a public forum in which to express the experience they have with us.” Despite dealers’ focus on developing compelling website experiences that include prominently displayed online inventories, chat help, and email addresses, 80 percent of consumers report that calls and showroom visits continue to be their first contact with a dealership. What moves customers to call or even visit a specific dealership? According 26

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to the 2015 BrightLocal Consumer Review Survey, a staggering 92 percent rely on third-party ratings and reviews to help in their selection process. Not only that, but most trust online reviews as much as they would a referral from a friend or family member.

CREATING A CULTURE AROUND REVIEWS

Galpin Honda cultivates its reviews and has built a culture around them. “We love the fact that our customers take the time to go online and share with the world their experience,” says Skobin. “We encourage prospective customers to go online, do the research, and see what others have to say about working with us.” Galpin’s 2,200+ DealerRater generated reviews are displayed prominently on the company’s website home page (www.galpinhonda.com), with the lion’s share of those reviews specifically mentioning the dealer’s most important asset: Its people. “Kathy Cong went above and beyond, best service ever. I would refer this dealership to everyone I know. She was amazing.” “Chris was great! We got our online quote quickly, he called immediately, and we were able to purchase our Odyssey the same day. Chris had everything ready to go to make it an easy experience.” “Donna Alvarez at Galpin Honda was very pleasant and professional. She answered all my dumb questions and still smiled. Would recommend going here first.”

MARKET A SALESPERSON’S REVIEWS

Galpin Honda’s DealerRater reviews parallel the findings of the AutoTrader “Car Buyer of the Future Survey.” Seventy-three percent of that

study’s respondents said they would be willing to drive an extra distance in order to work with a great salesperson. “We have customers every day who come into our showroom asking for a specific salesperson,” adds Skobin. “And more often than not, DealerRater reviews played a key role in getting them in the door.” According to DealerRater Director of Industry Relations Ryan Leslie, “Marketing a salesperson’s reviews has become as important as displaying a car picture next to the vehicle’s online description. As Galpin Honda has shown, its people are just as important as the dealer’s inventory.” Today, cars and trucks are safer, more advanced, and more reliable than they’ve ever been. What earns a dealership such as Galpin Honda a DealerRater Dealer of the Year Award is its ability to both deliver a great overall experience – and then have customers write rave reviews. Once the reviews have been posted, dealers that make the most of their online employee reviews train sales and service personnel to know that customers who have never met them previously may well walk into a store and ask for them by name. It’s an unbeatable strategy for getting the most out of your online reviews.

“Marketing a

salesperson’s reviews has become

as important as displaying a car picture next to the vehicle’s online description.”

GARY TUCKER CEO

Gary Tucker brings 30 years of automotive experience to DealerRater’s leadership team, most recently with J.D. Power where he spent 12 years as a Senior Vice President. Gary has also served as an executive with both OEM American Isuzu Motors and GE Capital’s auto-finance business. Gary earned an MBA from the University of Southern California.

VISIT US AT 2016 NADA IN LAS VEGAS

Join us at Booth #1683C with

Onsite Interviews and NADA coverage

Watch our daily newscast at CBTNEWS.com

MARKETING

FIVE KEYS TO SHOOTING GREAT INVENTORY VIDEOS Don’t Risk Losing Sales Due to Bad Videos BY TIM JAMES

n a study published last November by Google’s Automotive division titled The 5 Auto Shopping Moments Every Brand Must Own, it’s clear that video is playing an increasingly important role in how consumers shop for cars. In the period from January through September 2015, the top three types of video content viewed by auto shoppers were:

• VIRTUAL TEST DRIVES • VEHICLE FEATURES AND OPTIONS • WALKTHROUGHS Consumers spent twice as much time watching these types of videos in 2015 as they did during the same time period in 2014. Auto review videos on YouTube were watched more than 3 million hours in the first nine months of 2015. Dealerships with video marketing strategies are already benefitting from the growing consumer demand for videos. If your dealership doesn’t have a video marketing strategy, I recommend starting with the basics: vehicle inventory videos. Vehicle inventory videos are easy to create and encompass all three types of the most-watched video content. In the 2015 Autotrader Consumer Video Research Study, here’s how car shoppers ranked video features in order of helpfulness:

• EXTERIOR/INTERIOR VIEW OF VEHICLE (68%) • DESIGN AND FEATURE OVERVIEW (60%)

• PROFESSIONAL REVIEW WITH TEST DRIVE (52%) • PHOTO MONTAGE (46%) • COMMERCIAL (45%) • CONSUMER REVIEW WITH TEST DRIVE (41%) • CONSUMER REVIEW WITHOUT TEST DRIVE (31%) • PROFESSIONAL REVIEW WITHOUT TEST DRIVE (30%) • VIDEO TAKEN FROM A CAR SHOW (18%) At the very least, include the top two features in your inventory videos. If you can include a test drive as well, that’s a bonus. Whether you already have experience or you are just starting out, keep in mind these five important keys to shooting great inventory videos:

1) VIDEO QUALITY

You don’t have to be a professional videographer and you don’t need expensive equipment. You can start with an iPhone. The important thing is to just start. Unless you share some DNA with Steven Spielberg, the first few videos you shoot will be horrible. That’s okay. Practice makes perfect. First, get to know your equipment and learn how to use it. Small adjustments can make a big difference when it comes to video quality. Settings we recommend include: ➜ Frames per second: 30 ➜ Shutter Speed (also known as exposure

time): Anything slower than 1/60 will increase motion blur and the need for additional stabilization. ➜ ISO settings: In general, it’s best not to use the ‘Auto’ setting. A lower ISO number makes the camera less sensitive to light, while a higher ISO setting increases sensitivity to light. If it’s a cloudy day or you’re shooting in the shade, you may want to use a higher ISO setting. Keep in mind the higher the ISO, the more “grainy” your video will be. Try to keep the setting as low as possible, but never go above 800. Initially, you may want to experiment by shooting the same scene with several ISO settings and compare the difference. ➜ Aperture: The aperture measures how much light passes through the lens and is expressed by “f-stops.” A smaller f-stop means a larger aperture while a larger f-stop means a smaller aperture. This setting affects depth of field. If you want to bring the car into focus and blur the background, use a larger aperture (smaller f-stop) setting. If you want both the car and the background to be in equal focus, use a smaller aperture (larger f-stop) setting. Get to know how your camera performs at different settings, and try adjusting your aperture so you can keep your ISO setting low.

2) AUDIO QUALITY

When it comes to audio in inventory videos, there are three options:

• TALKING WHILE SHOOTING THE VIDEO • ADD VOICEOVER IN POST PRODUCTION • UTILIZE AUTOMATED VOICEOVER If you choose to talk while shooting the video, invest in a good quality wireless microphone with noise reduction. Replace poor audio tracks with a voiceover in post-production video. If you’re not comfortable with either of these options, you may want to use automated video. With the right application, all you have to do is shoot the video

“Your job is to make the car shopper want this car instead of the several other vehicles they are considering.” 28

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“You must tell the customer what you want them to do, and give them a reason to do it.” • LIVE VIDEO COMPLETION RATES AVERAGE 80% TO 85% Also, don’t forget to discuss your dealership’s unique selling proposition (USP). Why should the viewer buy this car from your dealership instead of from the dealership across town? What carbuying experience can you offer them that no other dealership can?

4) INFORMATIONAL AND EMOTIONAL ENHANCEMENT

and a data-driven audio layer is automatically added to your videos.

3) VIDEO/AUDIO CONTENT

When you are deciding what to say in your videos, the most important thing to remember is this: information is important, but emotion sells! Your job is to make the car shopper want this car instead of the several other vehicles they are considering. One of the best ways to accomplish this is to tell the viewer WHY a feature is important. For example, if a vehicle has a built-in GPS system, add a comment about how a GPS “keeps you from getting lost and keeps you on time for appointments!” If a vehicle has new tires, emphasize how they increase safety by keeping your car on the road in wet weather. When it comes to the length of the video, there are no hard and fast rules but in general, shorter is better. Somewhere between the 1 ½ and 2 ½ minute range is recommended. However, there are some dealerships that produce videos from three to four minutes in length that have very high completion rates. It really depends on the quality and presentation of the video. A general guideline is:

One of the most effective inventory video strategies is to have the audio focused on the vehicle’s features and benefits, as well as your dealership’s unique selling proposition. Then, use banner overlays and other visual elements to relay additional information important to the car shopper, such as:

• MSRP DATA • REBATES AND INCENTIVES • MILEAGE • CPO CONTENT • CARFAX DATA • DEALERSHIP SPECIALS A good rule of thumb is, if it’s on your VDP (Vehicle Display Pages) page, it should be on or in your video! The best way to accomplish this is to integrate the conversion widgets you have on your VDP page into your videos. This adds value, increases exposure and helps to boost conversion rates. Most important, don’t forget to include a call to action at the end of the video. You must tell the

customer what you want them to do, and give them a reason to do it.

5) VISIBILITY

After all this work, you want to make sure your video gets seen. The more touch points you have, the more leads you will get. Make sure that your inventory videos are viewable on:

• YOUR DEALERSHIP WEBSITE’S VEHICLE DISPLAY PAGES • YOUR DEALERSHIP’S MOBILE WEBSITE • YOUTUBE, FACEBOOK AND OTHER SOCIAL MEDIA CHANNELS • THIRD-PARTY SHOPPING SITES SUCH AS CARS.COM, AUTOTRADER.COM OR EBAY • EMAIL MARKETING CAMPAIGNS • CRAIGSLIST ADS (PROVIDE A URL LINK TO A VIDEO LANDING PAGE) To get your videos noticed by Google, make sure your website provider utilizes a video sitemap for your website. A video sitemap greatly increases video SEO rankings. It’s clear that consumers are relying on videos more than ever to help them with their carpurchasing decisions. Producing good-quality vehicle inventory videos is the first step in creating an effective online video marketing strategy that will draw more customers to your website and convert those visitors into leads. Sources: Google Internal Data; Flick Fusion Video Marketing

TIM JAMES

COO of Flick Fusion Video Marketing James is a dynamic sales and marketing strategist with more than 20 years of success in driving multi-million dollar revenue growth. He is one of the automotive industry’s leading authorities on the use of video marketing strategies throughout the entire online merchandising and sales process.

• STITCHED-PHOTO VIDEO COMPLETION RATES AVERAGE AROUND 70% TO 75%

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SALES

ARE YOU LISTENING TO YOUR

FEMALE CUSTOMERS? New Survey Shows What Women Think and Want

If a woman leaves a dealership without purchasing, chances are that she won’t return.

BY ANNE FLEMING

hat is the definition of a progressive dealership and what are some progressive techniques that help a dealership stand out from the competition? Why should you care? Because if you follow these tips and techniques, your dealership will reap the rewards of a more progressive strategy.

DEFINITION AND QUALITIES OF A PROGRESSIVE DEALERSHIP

A progressive dealership seeks to obtain as much information as possible about current and potential clients and analyze it to tune sales and service and find new approaches to increasing business. A progressive dealership knows that market strategies must change over time to adapt to current trends and key market segments. Obviously, it is possible to continue using the same, tried and true techniques. If sales and service numbers are okay, then it may be tempting to leave things alone rather than try to fix what is not broken. Without customer and market information, however, it is impossible to know if yesterday’s “okay” sales are meeting today’s potential.

TECHNIQUES TO SURGE AHEAD OF THE COMPETITION

Knowledge is power, and having extensive knowledge of your customer’s experience is key to analyzing and maximizing their journey with your dealership. One way progressive dealerships can learn more about their customers is to use tools like WomenDrivers.com, a digital-to-showroom solution that takes the guesswork out of marketing to the

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largest market segment of car buyers. Going beyond the typical 5-star review sites, WomenDrivers.com gives women the opportunity to opt-in to a 25-question survey. Nine out of 10 women presented with this opportunity complete the survey, which provides a deep dive into their customer experience. Women can also participate in a review, which generates a Women Satisfaction Index® from 1 to 5 (5 being optimal) about particular experiences while shopping, buying and servicing a car. Reviews are a key part of any dealership sales strategy, and 80% of shoppers use dealer reviews to choose a dealership. Women rely on reviews 50% more than men, so having positive reviews, especially reviews from women, is key to driving more female traffic. Additional tools include the ability to integrate women-specific content on a dealership’s web site and Facebook page. This integration saves the dealership time and effort, while providing well-researched, timely content for women and families. A dealership can stay engaged year round with customers, becoming a trusted resource and staying front and center in a customer’s mind when it is time to buy or lease a new car.

KEEPING UP WITH TRENDS

Today’s auto sales and service marketplace is more competitive than ever before because people have numerous ways to shop. Information is available at the click of a mouse, which means a shopper is armed with an overwhelming amount of information before she even steps into your dealership’s showroom.

A digital-to-showroom approach is imperative in today’s marketplace and will be even more important in the future. With so many choices in shopping and servicing a car, it is possible to lose business before even knowing someone is looking. It is crucial to have an online presence that is trusted, available and speaks to your market segments. Women-Drivers.com reports that 33% of women visit a dealership’s Facebook page, with 61% “liking” the page for further information. Seventy-three percent of women find a dealership’s web site to be helpful. Dealership and manufacturer web sites are the top two sites women research when purchasing a car. If your web site is not up to date, or doesn’t speak to your women’s market share, customers may not even step into your dealership. A little more than 5 out of 10 women do not purchase at a dealership closest to their home. On average, women will visit two dealerships prior to buying a car, and 60% of women who leave without purchasing will not return to the same dealership. Progressive dealerships are armed with this customer information, and know where the customer journey is susceptible to interruption. Obtaining predictive analytics about shopping, buying and servicing experiences can be used in multiple ways that vary from honing the individual customer experience, to shaping advertising and marketing efforts. It is immediately applicable in the sales process, and applicable over time in marketing efforts.

CERTIFIED REPUTATION

Working with a digital partner that helps you understand your customer’s journey can provide numerous benefits to your dealership’s bottom

line. Happy customers return to buy again or service their existing car. Customers spread the word about their experience, whether it is good or bad. Information gathered about customer experience can be used in a few different ways. First, it provides the background for analyzing current sales and service techniques. Committing to always improving the customer journey will net good reviews in the future. Those good reviews add up to creating a reputation that your customers can trust. Women-drivers.com provides a certification for dealers, which is derived from reviews. This means that customers can trust this reputation because it comes from likeminded people who provided honest feedback. Having a trusted, certified reputation rewards your dealership again and again. The initial effort required to achieve this certification is then paid back many times over.

CREATING AN IMPROVED REPUTATION AND BOTTOM LINE

A progressive dealership that uses the techniques outlined above has an effective roadmap to measure success. The guesswork goes away. The information obtained directly from customers can make the difference in a sale to the next woman who walks into the showroom. Information about the service experience can keep customers returning over the life of their cars. Knowing that your dealership has an effective digital-toshowroom strategy can mean fewer lost prospects. In today’s competitive market, information that is acted upon translates directly to a better customer experience which has the long term impact of a much-improved bottom line.

Average time women reported spent purchasing a vehicle at a dealership: 3 hours and 40 minutes TOP 6 REASONS FOR PURCHASING FROM THIS DEALERSHIP:

1. SALES ASSOCIATE/CUSTOMER SERVICE 2. BEST PRICE/DEAL 3. DEALERSHIP REPUTATION 4. BEST MODEL/COLOR 5. HOURS OF SERVICE/LOCATION 6. BEST FINANCING

TOP 6 REASON FROM PURCHASING FROM THIS SALES PERSON: 1. RESPECTFUL 2. TRUSTWORTHY 3. LIKABLE 4. KNOWLEDGEABLE 5. UNDERSTANDING 6. PRICE AND/OR VALUE

TOP 6 REASONS FOR NOT PURCHASING AT A DEALERSHIP

1. STILL LOOKING 2. POOR PRICE/DEAL PRESENTED 3. DIDN’T LIKE THE WAY THEY WERE TREATED 4. DIDN’T HAVE MODEL/COLOR 5. POOR TRADE-IN OFFER 6. LOCATION AND/OR SERVICE HOURS

1 out of 3 would prefer a 3-day exchange offer

ANNE FLEMING

President of Women-Drivers.com Prior to her involvement in the retail automotive industry, Anne spent 20 years in brand and strategic product development for several international consumer product companies. Her leadership training led to the founding of Women-Drivers.com, which has been featured in the Wall Street Journal, ABC News, USA Today, Working Mother, Smart Money and other national media. Visit her website at Women-drivers.com and follow her on Twitter @Womendrivers.

TO SEE MORE FROM ANNE FLEMING GO TO CBTNEWS.COM

TOP 5 BRANDS WOMEN SHOPPED: 1. VOLKSWAGEN 2. FORD 3. HYUNDAI 4. JEEP 5. CHEVROLET

TOP 5 BRANDS PURCHASED 1. MERCEDES-BENZ 2. LINCOLN 3. DODGE 4. CHRYSLER 5. VOLKSWAGEN

TOP 5 BRANDS FOR SERVICE DRIVE 1. BMW 2. VOLVO 3. MERCEDES-BENZ 4. AUDI 5. PORSCHE

7 REASONS FOR NOT GETTING SERVICE AT ORIGINAL DEALER 1. NOT SATISFIED WITH LAST VISIT DIDN’T LIKE HOW THEY WERE TREATED 2. INABILITY TO GET ISSUE RESOLVED TO SATISFACTION 3. COST OF SERVICE 4. LOCATION IS NOT CONVENIENT 5. HOURS ARE NOT CONVENIENT 6. LACK OF CONCIERGE SERVICE SOURCE: WOMEN-DRIVERS.COM

Women place more value on the salesperson being respectful, trustworthy and likable than the price of the car.

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MARKETING

Digital Marketing:

WHO IS IN THE DRIVER'S SEAT? OEMs Focus on Ad Imagery; Dealers on Getting Action BY GARY GALLOWAY

n last month’s article, I discussed co-op advertising in the changing marketing landscape, based on a recent study by Borrell Associates and Netsertive. In this article, I will dive into the dealership surveys, interviews with brand managers and analysis of trends in automotive advertising that was part of our research. In the automotive industry, OEMs and dealers are spending more than half of their advertising dollars in digital media. While we foresee OEMs continuing to increase their digital co-op offerings, we also see an opportunity to misfire. Trends clearly point to high growth in digital video and mobile platforms, but marketing in these environments is largely misunderstood among OEMs and dealers. Our findings show that dealers have adopted digital marketing quickly, indicating that they are aware of how consumers are researching vehicles online. The question is: are dealers leading those efforts or are brand managers in charge?

DEALERS ARE IN THE DRIVER’S SEAT

Our research indicates that, although co-op programs are increasingly offering digital support, 32

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the dealerships may be the ones in the driver’s seat. Brand managers still favor traditional forms of advertising, such as TV, over digital methods. They are more focused on influencing a particular audience through imagery, while the dealers are more concentrated on getting people to act when they are in the process of researching a new car. Other evidence from our research indicates that dealerships possess – or at least think they possess – a great deal of digital savvy. When asked about any challenges they face in working with co-op programs to roll out new products and promotions, less than 8 percent listed that they “don’t understand digital marketing.” That means the overwhelming majority believe they understand digital co-op offerings, even when they involve new promotions.

The blunt question may be, “Who’s more knowledgeable about marketing – dealers or brand managers?” The answer is likely to be “both.” This is largely because brand managers focus on imagery while dealers focus on action. Overall, however, auto dealers are among the most digitally savvy advertisers in any local market. In a survey of 7,228 SMBs that Borrell conducted earlier this year, local businesses were ranked on their digital proficiency according to their spending levels on digital media, plans to increase that spending and their usage of mobile, social and search marketing programs. The average score was 24. Auto dealers achieved a score of 40.1, ranked No. 2 among 58 different types of businesses. The only category that ranked higher was hospitality with a 41.2 rating. Automotive After-Market, by

“It’s clear that dealerships view digital media as a leadgeneration tool, much the way they viewed the newspaper’s classified advertising section 20 years ago.”

contrast, ranked a below-average 21.2, placing it No. 42 on the list.

DIGITAL’S MAIN GOAL: GENERATE LEADS

It’s clear that dealerships view digital media as a lead-generation tool, much the way they viewed the newspaper’s classified advertising section 20 years ago. Today, instead of people walking into the dealership pointing to a newspaper ad for a car they wanted to see, they’re emailing dealerships for more information and quotes. “New leads” was listed as the No. 1 metric for success in digital marketing, with “store visits” and “new customers” as a distant No. 2 and No. 3. Dovetailing with that idea is dealers’ use of paid search advertising, designed to drive customers to the dealers’ website where, hopefully, they’ll see a car or truck and ask a question about it. Overwhelmingly, dealers see SEM and SEO as the most impactful digital format, with display advertising also being embraced. Two formats of note – mobile and video – garnered 56 percent and 50 percent, respectively, of the respondents considering t h e m

“ i m p a c t f u l .” These up-andcoming formats are quickly gaining the interest of dealerships, though it doesn’t appear that co-op programs are yet supporting them to the extent that dealers intend to use them. For streaming-video advertising and mobile advertising, roughly twice as many dealerships responded that they use those marketing methods and said their co-op programs support them. And while brands may include credit for 15-second pre-roll spots on places such as YouTube or a local TV station’s website newscast, that may not be exactly what dealerships are looking for or want. Three-fourths of the dealers surveyed said the video they’re most interested in appears on their own website, which is more likely to involve walk-arounds of a vehicle, interviews with happy customers or a tour of the service facility. In fact, dealers in our survey consider these types of video as powerful as the old standby, television TO SEE MORE FROM GARY GALLOWAY GO TO CBTNEWS.COM

commercials. When asked which video medium they felt was more effective, equal amounts chose one of the three options – Television, Digital or “Both.”

DIGITAL IS BEATING TV

That last point, stated differently, is worth repeating: Auto dealers, who’ve had a love affair with TV since the 1950s, now believe digital media is more effective. There is much evidence to support why. More than half the population now spends more time online than watching TV, according to Nielsen @Plan, and additional Nielsen research shows that more than twothirds of tablet owners use them while watching television, and that one-fourth of them do so several times a day. That doesn’t mean TV advertising is dead. In fact, a 2013 study ranked TV higher in influencing decisions than social media and auto-listing sites, and higher than newspapers, magazines and radio. But the digital “influence” factor is overwhelming. A Google study showed that 84 percent of shoppers planned to use online video the next time they shop for a car, and that online video is the leading ad format for driving brand consideration – even more influential than TV or direct mail. On the issue of mobile media, dealers could also be considered advanced, but only relative to how far behind their retail peers are. C o m p a r i n g responses from auto dealers and from local advertisers in general, more than twice as many dealers have already utilized mobile marketing. More have used mobile search, have created a mobile-optimized website and have an app. And, nearly 70 percent of them plan to engage in some sort of mobile marketing by early 2016, compared with 43 percent of all SMBs.

LACK OF STRATEGIC UNDERSTANDING OF MOBILE

While they may be ahead of other businesses, their mobile acumen is lacking – by their own admission. Our survey showed that only 17 percent considered their usage and knowledge of mobile tactics to be “advanced.” Sixty-eight percent rated their skills “competent” to “neutral,” and 14 percent rated themselves “novice” or “poor.”

So while adoption rates are relatively high among auto dealers, strategic understanding is not. OEMs can spur further experimentation and influence outcomes by making mobile a separate bucket in co-op programs. One area OEMs might consider supporting is making dealer sites suitable for mobile devices. Despite the ubiquity of smart phones and skyrocketing usage, nearly a quarter of dealers say their websites aren’t mobile-optimized. That means that, despite the tens of thousands of dollars a dealer may spend to drive people to a website, that site is likelyIftoyou havedon’t miss-sized typefaces, know your headlines and graphics that scroll the you screen people, howoffcan and links that are too small for an index finger to improve navigate. (To test the viability of a website across their performance multiple types of mobile devices, go to mobiletest. me.) Making a site optimized for mobile viewing, however, is merely table stakes in what has become an increasingly important strategy to engage car shoppers with a friendly, digital handshake. There is much more to consider in the mobile-marketing environment, including the interaction with smart phones as they enter the dealer lot. New technology such as “beacons,” or tiny transmitters placed on premises, is enabling retailers to not only identify smart phones and track the movement of customers on site, but also push messages to them as they linger at a vehicle, enter the store or leave the lot. The ubiquity of digital media has created a complex marketing environment. While traditional media channels such as radio, TV and print are still widely used by automotive brand managers, dealers largely favor digital methods. The issue is that co-op programs are not yet supporting digital advertising methods to the extent that dealers intend to use them. A copy of the full report is available for download here.

“ Three-fourths of the dealers surveyed said the video they’re most interested in appears on their own website, which is more likely to involve walk-arounds of a vehicle,

interviews with happy customers or a

tour of the service facility.”

GARY GALLOWAY

Automotive Digital Marketing Evangelist Gary Galloway recently joined Netsertive. He is a marketing executive with more than 17 years of experience implementing solutions with a high degree of customer satisfaction, success and profit. An adjunct professor at the UNC-Chapel Hill School of Journalism, Galloway teaches a class on media sales and management/digital marketing. Previously, he was the director of marketing & digital media at Crossroads Automotive Group, where he created and executed monthly interactive marketing campaigns for 19 different retail locations and 30 franchises.

MARCH 2016

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MARKETING

CREATING A WINNING CULTURE Meet Julie Kimes O’Daniel Automotive Group

Hiring Women is One Big Key to Her Success BY JODY DEVERE Meet Julie Kimes. Julie started selling Jeeps in 1994, and it took a whopping 12 job interviews before she became the first female to sell cars for O’Daniel Automotive Group in Fort Wayne, Ind. But in the end her persistence and determination persuaded the dealer group to take a chance on her. What inspired Julie to choose this job, at this dealer? “I love every aspect of the car business,” she said. “To me it is all about building relationships with people. What could possibly be better than that? The reason I was so determined to work for the O’Daniel Automotive Group is that they were a family ran business. They shared the same values and beliefs I was raised with. They also had flexible hours, and great pay plan; it was known as the “Country Club” of car dealerships. It still is to this day.”

“She’s Come a Long Way” Since then, Julie has come a long way. She’s been employed by the O’Daniel Automotive Group for more than 23 years, and today her mission is the same as it was on day one: to continuously exceed the expectations of her customers. Soon, she was managing a satellite store, and in 2009, she was asked to become the general sales manager for O’Daniel Automart and Mazda. When she took the helm, the dealership’s total sales were around 550 units per year. Not only has Julie led those dealerships to increased market share, but she’s managed to nearly double the

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sales volume, closing 2015 with 1,069 retail units after showing steady growth every year. She’s recently added another title to her already impressive list of responsibilities. Today she functions as director of marketing and communications of the entire O’Daniel Automotive Group, while still running the O’Daniel Automart and Mazda stores. And, by the way, they’ve just been awarded Indiana’s Dealer of the Year by DealerRater.com for the fourth consecutive year.

How did Julie guide her dealerships to such success? First of all, by hiring more women! Since she took the leadership role at O’Daniel Automart/Mazda, Julie has added several female employees to positions in sales, service, and elsewhere. Today, her top salesperson is a woman, and they underscore their commitment to providing an unparalleled dealership experience by joining the Ask Patty Certified Female Friendly program. Every employee at O’Daniel Automart/ Mazda has been through the AskPatty training program, aimed at helping employees provide an outstanding experience for women car buyers and owners. She also provides advice to consumer women in her role as an automotive expert advisor

on AskPatty.com and through the O’Daniel www.FreeVehicleAdvice.com website, which was her brainchild.

COMMUNITY INVOLVEMENT Another key to their success was building and supporting a vibrant and thriving community, and she shows that through involvement in many local and national organizations. O’Daniel Automart went pink for October 2014 with AutoTex Pink wiper blades, giving 20% of all sales to the National Breast Cancer Foundation and supporting the Making Strides Against Breast Cancer program. The “Where’s Lienado” community involvement program featuring the O’Daniel mascot Lienado is a great success in connecting with families and children. From costume competitions, reward programs to coloring book page contests, Lienado delights O’Daniel customers with fun and innovation. In 2015, they celebrated the ODZ Jeep Jam’s 10th Anniversary. This yearly event benefits military families, a program of Associated Churches of Fort Wayne & Allen County. So, what advice does Julie have for anyone out there thinking about joining the car business? “I would say ‘Do it!’” but she’s quick to add, “Be a professional, and always take care of your customers.” By settling for nothing less than outstanding customer service, by working tirelessly to hire and retain the right people, and always strive to provide a supportive environment for employees and the community, Julie Kimes and the O’Daniel Automotive Group are truly demonstrating what it takes to create a winning culture in today’s auto industry.

“Be a professional, and always take care of your customers” JODY DEVERE

CEO of AskPatty.com Inc. Her company runs a website and blog, and offers training, education and marketing support on how dealerships and other automotive retailers can more effectively target women consumers. She speaks at conferences held by sponsors ranging from the National Independent Automobile Dealers Association and Mercedes-Benz to the Car Care Council Women’s Board. Visit her website at www.askpatty.com.

DEALERS, GMs, SERVICE MANAGERS, FIXED-OPS DIRECTORS, PARTS MANAGERS Check out ServiceDriveToday.com for news, information, best practices, training tips from the nation’s top ﬁxed-ops trainers, in-depth interviews with industry experts and more. It’s completely FREE to all dealership service department personnel!

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Featuring daily newscasts, guest interviews, and a monthly magazine with informational columns and articles from experts in the auto service industry, Service Drive Today is your trusted source for the latest news and trends in the automotive ﬁxed-ops ﬁeld.

GOING

SALES

L CAL Reflects Your Customers

National or Global Research May Not Apply to Your Dealership BY AMY FARLEY

s a dealer, you may think you have a good idea of who your target customer is, and you may even base your current marketing strategies on that knowledge. But are you correct?

Many dealers have the wrong idea about their customer base because they haven’t taken the time to dive deep and analyze the demographics of the customers who visit their website. Why is it so important to take a look at your demographic and consumer behavior data? Don’t the OEM reports your dealership receives tell the whole story? The answer might surprise you.

EVERY MARKET IS DIFFERENT

Your OEM spends a lot of time and money researching the brand’s key demographics, and the reports they send reflect that information. The manufacturer isn’t necessarily wrong. The information they send you is simply based on national or even global research rather than your particular market. On the Tier III level, though, it’s critical that you take your own market’s demographics into consideration. Fortunately, this can be done through various online platforms you already utilize like Google Analytics and Google AdWords. To look at one specific example, here’s a rundown of the demographic data that one OEM reports about its own customer base. The gender breakdown of its customers is 85 percent male and 15 percent female. The average age of

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a buyer is 52; the top lifestyle preference of a typical buyer is golf. Seventy-three percent of buyers have children. Generally speaking, that information would sound fairly accurate for the overall perception of that brand to most people.

A dealer selling that brand in that state will have much greater success if he bases his marketing strategy on the data that provides an accurate picture of his customer base, rather than basing it on the information the OEM provides. In fact, if he markets solely based on the OEM reports, he might be spending money inefficiently.

“The more accurately you can figure how to market to your target audience,

Take another look at the example above. If a dealer looks at the OEM report and then markets primarily during golf tournaments or on golfrelated websites just because that’s what the report said customers of that brand liked, then that dealer is missing out on advertising where customers in that market might actually spend their time -- watching cooking shows and reading recipe websites. That’s where the dealer’s money might be more effectively spent.

the less you’ll have to spend on audiences that simply aren’t working for you.”

But the problem is, it doesn’t tell the complete story. A deep dive into the demographics of this OEM’s stores within one state found that for that market, the gender breakdown was actually 54 percent male and 46 percent female; the average age of buyers was in the 35-44 range. The top lifestyle preference for their customers was cooking, and only 52 percent of them had children. Those statistics are very different than what the OEM initially reported, and that’s because every market is different.

HOW DO YOU FIND THIS INFORMATION?

To begin collecting demographic data about visitors to your website, you must first make sure you’re tagging the people coming to your site in order to create remarketing lists in Google Analytics. You don’t actually have to use these lists for remarketing -- you’ll simply be using them as a tool to gather information. Regardless, your marketing team or web provider can assist you with setting this up. Once you’re certain that you’ve been doing this, you can take a look at the data. Google Analytics will provide age and gender breakdowns for your website’s visitors, and more importantly, you can see how visitors are behaving on your site by age and gender. For example, you might find that 18-24 year old males are much more interested

in one model than another, which can help you learn how to better market that vehicle. To find this information in Analytics, you’ll go into the Admin menu on your account, then select Remarketing, followed by Audiences. Creating a New Audience will give you pre-made options to look at your data. If you want to take a deeper look, you can do that through Google AdWords. You’ll go to Shared Libraries in your AdWords account, then Audiences, then View, and assuming you’re already tagging visitors to your website, you’ll see different types of buckets that Google has created for you. When you select All Users, you’ll be taken into Audience Insights, where you can see specific and detailed demographic information for people who have visited your site. Audience Insight reports can give you a better glimpse at your customer base, including demographics about who they are and what they are interested in, as well as what type of vehicles they might want to buy. Once you take a look at your own Audience Insight reports, you might find that visitors to your site are extremely interested in, for example, hunting and fishing. In that case, you may want to advertise in

spaces that hunters and fishers spend their time, and your marketing will be more efficient because you put that information into action.

UTILIZE THIS DEMOGRAPHIC INFORMATION ACROSS ALL CHANNELS.

The best thing about this type of demographic information is that you can apply it across all mediums. If your Audience Insight reports show you that the consumers in your market are interested in baseball and other sports, then you might choose to advertise on sports websites, or buy TV advertisements during sports programming. You can even find look-alike or similar audiences in certain platforms, like Facebook or YouTube, so that you can be sure you’re delivering your marketing message to consumers who match your market. One important thing to remember once you’ve collected, analyzed and implemented this demographic information is to test your strategies. Try using different ad messaging for different audience groups, and when you notice something isn’t working, tweak it and re-test it until it does.

WHAT’S THE BENEFIT FOR DEALERS?

Utilizing this type of demographic information is not only a way to target your marketing more effectively, but also to reduce your wasted ad spend. Once you know who your audience is, you can pull back on marketing to who your audience is not. Without increasing your budget, you’ll be able to improve your ROI. The more accurately you can figure how to market to your target audience, the less you’ll have to spend on audiences that simply aren’t working for you. You can spend your marketing budget in a manner that’s both successful and cost-effective.

“One important thing to remember once you’ve collected, analyzed and implemented this demographic information is

to test your strategies.”

AMY FARLEY

Media and Communications Manager at Force Marketing Amy is a skilled writer and editor with a keen interest in digital trends and topics in the automotive industry. She utilizes her knowledge of what is new in retail automotive marketing to help Force – an automotive digital, direct mail and email marketing firm based in Atlanta – with its evolution of the dealer-to-customer shopping experience. Visit the website at Forcemktg.com.

TO SEE MORE FROM AMY FARLEY GO TO CBTNEWS.COM

MARCH 2016

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SHOWROOMXPRESS:

Express Automotive Retailing With ShowroomXpress it’s Express Automotive Retailing: Clicks to Bricks

BY BRUCE THOMPSON

howroomXpress is a 360o express automotive retail platform designed for franchise dealers of all shapes and sizes. The system offers a seamless online to showroom car buying experience for your consumers. ShowroomXpress allows a customer to go about approaching the various elements of a vehicle purchase and/or trade-in in their own way and at their own pace. All shopping activity is seamlessly synced in the cloud to ensure a consistent shopping experience in AND out of the store.

WHAT MAKES SRX THE COMPLETE “EXPRESS AUTOMOTIVE RETAIL EXPERIENCE?”

1. Seamless Online to Showroom Experience: Streamline In-Store Transactions to 30 Minutes or Less ➤ Personalized Customer Journey – Customers can start a transaction online and pick up right where they left off at the dealership. ➤ Shop Anywhere, Anytime – ShowroomXpress operates on all mobile smart devices, including our proprietary 55 in. “Genius Stations” touch-screen showroom kiosks, allowing a dealer to transform their operation into the new age of automotive retail. 2. 10 Second Pre-Approvals via Experian Instant Pre-Screen: No SSN Required – Customers can get instantly pre-approved online or in the dealership through Experian without sacrificing sensitive personal information like a SSN Number or employment history. 3. Instant and EXACT Payment Calculations from EVERY U.S. Auto Lender – SRX is designed for dealers to use their captive lender or have banks compete to give your customers the best finance/lease terms

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on every deal, allowing for a completely transparent shopping experience start to finish. With a customer’s credit score, name and address and VIN Number, SRX can calculate all of the lender buy rates down to the dollar by region and dealer. 4. Ten Minute Trade-In Process– A critical part of every new vehicle purchase is the value/appraisal of the customer’s current vehicle. ShowroomXpress’s Trade-In Concierge module allows a customer to submit their vehicle information for a real cash offer in minutes, anytime, anywhere, with a video concierge assistant walking them through every step of the way. 5. Transform the Showroom with ShowroomXpress “Genius Stations” – Usher your dealership in to the new age of automotive retail with our touch-screen “Genius Stations.” Standing 6 feet, four inches tall, a “Genius Station” allows a customer to start shopping at the dealership with OR without the aid of a salesperson. When not in “Deal” mode, a “Genius Station” acts as a dynamic media and advertising display, streaming dealership-specific content ranging from the latest vehicle commercials to OEM incentive programs and dealership

marketing, all syndicated and managed from Pearl’s centralized media department. 6. Intuitive and Transparent Customer Experience – ShowroomXpress allows customers to completely customize their vehicle search by make, model, payments, retail or lease, drive train, color, body style, and much, much more. Customers can save and compare vehicles seamlessly on all devices. The system also offers a completely transparent payment calculator that displays the best three loan rates available for every vehicle, each of which dynamically adapt to down payment adjustments, the term length of choice and trade-in allowance, allowing the consumer to know exactly where they stand every step of the way. ShowroomXpress delivers the “clicks to bricks” car buying experience that both dealers AND consumers have been asking for. It is debuting exclusively at the 2016 NADA Convention and Expo in Las Vegas at Booth #2323C. For more information on ShowroomXpress please call 888.339.1116 or visit www.showroomxpress. com. To sign up for a demo of ShowroomXpress at NADA please visit www.pearlsolutions.com/ nada2016.

BRUCE THOMPSON

CEO, Pearl Technology Holdings With the formation of American Auto Exchange (AAX) in 2001, auto industry entrepreneur Bruce Thompson became widely known as the creator of the “used car inventory management” space. He went on to start RedBumper, LLC in 2010, which is also primarily focused on “used car inventory management.” RedBumper’s intellectual property was acquired by CDK Global in September 2014. At that time, Thompson formed a new holding company, Pearl Technology Holdings, LLC, created to be an automotive technology incubator. The company’s mission is to create and deliver innovative new tools that have an impact on the industry. Pearl has launched five subsidiaries: NewCar IQ, LLC; VehicleXchange, LLC; eCarTag, LLC; Trade-In Concierge, LLC and ShowroomXpress, LLC. NewCarIQ, LLC was acquired by CDK Global in January 2016.

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