DEALER’S
EDGE
ILLINOIS INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION | SEP TEMBER /OCTOBER 2019
Convention Issue
SEE YOU IN
CHICAGO
nabdsubprimeconference.com
S TAT E A F F I L I AT E
VISIT US AT W W W.IL-IADA.ORG
ASSOCIATION NEWS
Index
08............................ NIADA Compliance Program 11...................................................Google Reviews 12.............................Mental Toughness and Sales 14.............................. Customer-Friendly Website 16................................NIADA Government Report 17........................Put That Lobby Monitor to Work
Advertiser’s Index
ACV Auctions......................................................15 DealerCenter................................................... IFC Dyer Auto Auction..............................................17 iGotcha GPS..................................................... IBC Manheim .............................................................13 NextGear Capital .......................................... 10-11 vAuto................................................... Back Cover
What’s New
N AT I O N A L P O L I C Y CONFERENCE
DIRECTOR’S MESSAGE
Join Us in Washington DC!
You might have seen information about the NIADA National Policy Conference taking place September 2325 in Washington, DC. I hope you are planning to attend. If you haven’t made plans yet, I would encourage you to join us. I attended the policy conference last year and it was a great experience. Walking the halls of Congress and meeting with our elected politicians really is a choice experience. We get to briefly tell our stories and share our hopes and concerns with those who can do something about it. It’s easy to complain about things with our friends or on social media. Joining with a couple hundred of other used car dealers to meet with our political leaders is satisfying and a much more productive use of our time. It does take some effort to get from Illinois to DC but you won’t regret it. I hope to see you there! Scott Alpeter Director, Illinois IADA
Join NIADA for the 2019 National Policy Conference and Day on Capitol Hill September 23-25 in Washington, DC. Meet members of Congress and hear about the latest legislative and regulatory issues impacting the industry. Make your voice heard. Learn more at www.niadapolicyconference.com.
BOARD MEMBERS www.il-iada.org 800-987-6627
Office
For information on how to become a member of IIADA, please contact Scott Alpeter at 800-987-6627 or scott@il-iada.org.
NIADA Headquarters
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838
For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. The Dealer’s Edge is published bi-monthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of The Dealer’s Edge or NIADA. Likewise, the appearance of advertisers, or their identification as members of IIADA or NIADA, does not constitute an endorsement of the products or services featured. Copyright ©2019 by NIADA Services, Inc.
STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITORS Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT Christy Haynes • christy@niada.com PRINTING Nieman Printing
CHAIRMAN
Gordon Tormohlen Tormohlen’s Good People Automotive 1800 S Ihm Blvd Freeport, IL 61032 815-232-5543 goodpeople@aeroinc.net
PRESIDENT
Joe Mok G Motor Cars 2411 E. Oakton St Arlington Heights, IL 60005
BOARD MEMBERS
Ginger Higgins Integrity Motor Cars Angus Macaskill Carmax Randy Crase Crase Auto Connection Steve Taylor Auto Credit of Southern Illinois
VICE PRESIDENT
SECRETARY
TREASURER
EXECUTIVE DIRECTOR
Eric Nelson Nelson Automotive Inc. 1801 S Busse Mt Prospect, IL 60056 eric@heycars.com
Alex Tovstanovsky 8959 Hanslik Ct Naperville, IL 60564 (630) 631-2535
Mark Alcorn Carlyle Auto Sales 1708 Broadway Rockford, IL 61104 815-262-2231 mark467@frontier.com
Scott Alpeter IL-IADA Headquarters 21200 S. La Grange Rd. Suite 356 Frankfort, IL 60423 (800) 987-6627 scott@il-iada.org
Steve Luczak Advantage Auto Mike Wells Integrity Motors Arien Whitehead Lifetime Auto Moises Aleman Roselle Motors
Adam Berger Kelley Kronenberg Rafal Labuda Quick Sales Corporation Ryan Clark Greater Rockford Auto Auction
WWW.IL-IADA.ORG SEPTEMBER/OCTOBER 2019 DEALER’S EDGE 3
REGISTER NOW
• Training for new & experienced operators • Network with industry experts • Capital to fund your operation • Collections & underwriting training • Best practices that work today and in the future • The latest marketing strategies • Legal and compliance updates • Exhibit hall with all the latest products & services • New industry technology • And MUCH MORE!
Visit: NABDsubprimeconference.com or call: 832.767.4759 6 BHPH DEALER → AUGUST 2019 4 DEALER’S EDGE SEPTEMBER/OCTOBER 2019 WWW.IL-IADA.ORG
Choose Your
Conference Experience
ELITE Package Early Bird:
$695
SisPDEEALCERIDAISLCOUNT
Illino
RATES $100 OFF EARLY BIRD discount code
CHILL
Early Bird:
$495
Regular Rate: $895 • All Educational Sessions • Includes General and Breakout Session • Exhibit Hall Access (4 sessions) • Includes Food and Beverage • Separate Check-in Counter • VIP Meet & Greet Reception • Monday, VIP Sky Bar Party
Express Package
Regular Rate: $695
/person 5 $ 9 3 : E T A R E IT L DEALER E discount code
dealer20
• All Educational Sessions • Includes General and Breakout Session • Exhibit Hall Access (4 sessions) • Includes Food and Beverage
HOTEL INFORMATION Marriott Marquis Chicago McCormick Place 2121 S Prairie Ave Chicago, IL 60616
Room Rate: $199/night + tax Reservations: Phone - 312.824.0500 (Reference BHPH Conference)
AUGUST 2019 ← BHPH DEALER 7 WWW.IL-IADA.ORG SEPTEMBER/OCTOBER 2019 DEALER’S EDGE 5
Tentative Agenda *All dates and times subject to change
MONDAY, OCTOBER 7 1:00 – 2:45 PM 3:00 – 3:45 PM 3:00 – 3:45 PM 3:30 – 5:30 PM 4:00 – 4:45 PM 5:30 – 7:30 PM 8:00 PM
General Session Breakout Sessions First Timers Reception Finance Fair Breakout Sessions Expo Grand Opening VIP Sky Bar Party
TUESDAY, OCTOBER 8 9:00 – 10:45 AM 11:00AM – 2:00 PM 2:15 – 5:00 PM 5:00 – 7:00 PM
Breakouts Expo & Lunch Breakouts Expo Reception
WEDNESDAY, OCTOBER 9 8:30 – 10:00 AM 10:00 – 10:45 AM 11:00AM – 12:30 PM 1:00 – 3:00 PM
Expo Brunch Breakouts Closing General Session Illinois IADA Town Hall Meeting and Reception
DONT MISS THE
Finance Fair Hours: 3:30-5:30 PM DATE: Monday, October 7 Is your head spinning from all the financing options? Do you wish you had time to sit down one-on-one with financing companies to explore which option is best for you? The Finance Fair will showcase different entities from whom dealers can seek financing. Whether it’s floorplans, lines of credit, contract buyers, or indirect lenders to finance your customer’s purchases, these companies have the entire market covered! It’s all in a separate, personal setting devoted to your financing needs.
Visit: NABDsubprimeconference.com or call: 832.767.4759 DEALER’S EDGE EDGE SEPTEMBER/OCTOBER SEPTEMBER/OCTOBER 2019 166 DEALER’S 2019 WWW.IL-IADA.ORG WWW.IL-IADA.ORG
CHECK OUT THE EXCITEMENT & FANFARE
FROM LAST YEAR’S CONFERENCE
2019 Sponsors THANK YOU!
WWW.IL-IADA.ORG SEPTEMBER/OCTOBER 2019 DEALER’S EDGE 17
WWW.IL-IADA.ORG SEPTEMBER/OCTOBER 2019 DEALER’S EDGE 7
ASSOCIATION NEWS |
By Shaun Petersen and Adam Crowell
INTRODUCING THE NIADA COMPLIANCE MANAGEMENT SYSTEM POWERED BY COMPLYNET
Helping You Maintain a Culture of Compliance For years, government regulators have demanded that dealers maintain a strong compliance management system to comply with the numerous and ever-changing laws and regulations that apply to dealerships. Those regulators have not been shy about taking enforcement action against dealers who don’t comply. Agencies such as the Consumer Financial Protection Bureau have said businesses under their authority must establish a “culture of compliance” that includes frequent self-policing and effectively remediating issues promptly. They have dropped heavy hammers on businesses when those criteria have not been met. In addition, the Occupational Safety and Health Administration has criminally prosecuted business owners and managers
A major benefit of the NIADA CMS is it removes the hassle from documenting a culture of compliance through its well organized and thought-out systems, which automatically alert employees about the need to take training, complete tasks and resolve issues. 8 DEALER’S EDGE SEPTEMBER/OCTOBER 2019 WWW.IL-IADA.ORG
in the automotive industry when the failure to adhere to the appropriate standards have resulted in injuries. Other agencies, including the Federal Trade Commission, have recently taken enforcement action against automotive businesses for “lax” practices that result in the risk of economic injuries to others. To assist dealerships in establishing, maintaining and documenting a culture of compliance, NIADA has partnered with ComplyNet, an auto industry leader in environmental health and safety, sales and finance, and information security compliance management solutions, to offer an all-in-one workforce compliance management system (CMS) for tracking all compliance efforts – on-site and online. The NIADA CMS has the capability of tracking: • Online compliance training. • Review and acknowledgement of policies, procedures and guides by employees. • On-site inspection and audit results. • Resolution of discovered compliance issues. • Handling consumer complaints. Subscribing dealership managers and supervisors have the ability to easily determine how well their teams are meeting their compliance objectives directly from the NIADA CMS, through intuitive data visualization tools that dynamically and interactively enable managers and supervisors to better manage those compliance efforts. To minimize the most common risks to a dealership, the NIADA CMS primarily focuses on sales and F&I compliance, environmental health and safety compliance and information security awareness compliance. Employees are educated on applicable subject matter based on their job roles through policies and guides that must be reviewed and acknowledged by the employee, as well as through online training that tests employees and recurs periodically to breed familiarity with the subject matter. Topics covered include: • Adverse action. • IRS 8300 tracking and reporting. • OFAC. • Risk-based pricing. • Red Flags Rule. • Safeguards Rule. • Disposal Rule.
• Unfair and deceptive acts and practices (UDAP). • Used Car Rule. • Repossessions. • Hazard communication. • General safety. • Lift safety. • Bloodborne pathogens. • DOT hazmat for hazwaste and disposal. • General cyber awareness. • Email phishing. • Payment card industry standards. A major benefit of the NIADA CMS is it removes the hassle from documenting a culture of compliance through its well organized and thought-out systems, which automatically alert employees about the need to take training, complete tasks and resolve issues. There are other benefits, too. Insurance carriers would rather do business with a dealership that is serious about mitigating its risks and can document all of the various ways the dealership is a better risk than the next one. Sometimes those insurance carriers will compete for that business by offering better premiums. That pleasant consequence is sometimes unintended, but it should be an intended strategy in operating your dealership since less expense equals greater profit. The information captured in the CMS can be leveraged by a knowledgeable insurance agent to tell that great story. NIADA and ComplyNet have collaborated to offer affordable monthly subscription plans to the CMS that will accommodate small and large dealerships alike. For more information about the NIADA CMS and plans, visit www.niada.com and click on the “Compliance” tab. Additional on-site inspection, audit and training services can be provided to NIADA members by ComplyNet. For information about those additional services, visit www. complynet.com or call 1-800-653-1869.
Shaun Peterson is NIADA’s senior vice president of legal and government affairs. Adam Crowell is president and general counsel of ComplyNet, which has combined on-site auditing services with intuitive software to assist dealerships in achieving regulatory compliance goals, mitigating risks and retaining talent since it was founded in 1994. He can be reached at adam.crowell@ complynet.com.
SCHEDULE A DEMO & SUBSCRIBE
AT NIADACOMPLIANCE.COM OR CALL 800.653.1869
INTRODUCING THE NIADA COMPLIANCE MANAGEMENT SYSTEM
YOUR COMPLIANCE MANAGEMENT SYSTEM FOR YOUR INDEPENDENT MOTOR VEHICLE DEALERSHIP WITH ONLINE TRAINING & POLICIES SALES AND F&I ADVERSE ACTION, RISK BASED PRICING, RED FLAGS RULE, PAPER FLOW OFAC, IRS 8300, UDAP & MORE
ENVIRONMENTAL HEALTH & SAFETY (EH&S) HAZARD COMMUNICATION, GENERAL SAFETY, LIFT SAFETY, BLOODBORNE PATHOGENS DOT HAZMAT FOR HAWASTE & DISPOSAL, DOT HAZARDOUS MATERIAL & MORE
INFORMATION SECURITY AWARENESS PRIVACY , GENERAL CYBER PHISHING, PCI & MORE
VERIFY & PROVE THAT YOUR DEALERSHIP MAINTAINS A CULTURE OF COMPLIANCE
#WhatMakesYouABetterRisk
WWW.IL-IADA.ORG SEPTEMBER/OCTOBER 2019 DEALER’S EDGE 9
ACCELERATE |
By GWC Warranty
BIG AUCTION WINS
Outside-The-Box Ideas to Stand Out The used car industry is more competitive than ever before. Everywhere you turn you and your competition are going head to head on the vehicles customers in your area want. Overcoming this obstacle is all about standing out from the crowd. And what better way to step out from the crowd than to step out from your normal acquisition habits? Sometimes the hidden gems are simply hiding in places you haven’t looked before. And once you find them your customers and your bottom line stand to benefit. Hop in the Car Sometimes the best finds reside a few miles farther away than you’re used to. If you’ve been hitting the same auctions year after year, it might be time to extend your radius a bit. You might just score a car that’s what you’re looking for and more for your customers. Hop on the Internet Online auctions may be a new frontier but might just be the ticket to the cars you and your customers desire. Test the waters and get on the web to see if you can find a new frontier for vehicle acquisition. Not to
NOW THAT MY CASH ISN’T TIED UP IN INVENTORY I CAN DO MORE OF THE THINGS I USED TO JUST DREAM ABOUT.
10 DEALER’S EDGE SEPTEMBER/OCTOBER 2019 WWW.IL-IADA.ORG
Everywhere you turn you and your competition are going head to head on the vehicles customers in your area want. Overcoming this obstacle is all about standing out from the crowd. mention if you find some you like you can start finding cars from the comfort of your office chair. Hop on the Phone You might even be able to find some dealers outside of the live or virtual auction lanes. If you’re in an area near a senior home, you might be able to make a connection to get vehicles as new residents are looking to offload them. Or maybe you operate near a college and graduates moving onto new jobs are trading up to a new car. Both scenarios give you the opportunity to find unconventional avenues to score big when acquiring new inventory.
108 people saw your review!
People like your review
ONLINE MARKETING | By Kenny Atcheson
GOOGLE REVIEWS
3 Critical Updates
Google techs have been busy changing things again, including three critical updates. First, they are proactively asking Android phone users to write a review on Google for each place their phone has been physically located within the last few months. It is amazingly accurate. In one session I was asked to give a rating on Google about my experiences at places I
Congratulations, your review helped people over 100 times! Millions of people rely on reviews like yours to learn what places are like.
Having spilled the beans about Google’s had visited in South Dakota, Orlando, Tampa, inner workings, here are some dos and Dallas, San Antonio, Phoenix, Las Vegas, don’ts regarding online reviews. Henderson, and more. My Android phone tracked the restaurants, hotels and dealerships Don’t I visited during that same time period. • Don’t write a review about your own What Google techs did not know was I business. wasn’t a customer at any of the dealerships • Don’t let employees write a review about I visited. I was consulting and conducting your dealership. employee training on customer service, sales, • Don’t write negative reviews about the and online reviews. But I was asked for a competition. review anyway. • Don’t exchange positive reviews with Here’s what stands out: If someone visits your buddy’s business. your dealership and does not buy, a Google • Don’t incentivize customers to write a prompt will still ask for a review. Is a nonreview. buying customer more likely to write a Do negative review than a customer who buys? • Do recognize that the way your team Second, Google is incentivizing people to treats people has a big impact on write a review. Google has reviews, but it’s not all that matters. You offered free access to Google need to do more. tools that are not available to • Do respond to all reviews. It shows everyone else at this time. You customers, prospects and Google can’t incentivize customers to powers-that-be you are listening. write a review, but evidently • Do use a system to keep most negative Google muckety-mucks can. reviews internal while at the same In another update, they are time boosting positive reviews into the encouraging people through public realm, such as on Google. positive reinforcement to write more reviews on Kenny Atcheson is the founder and president of Dealer Profit Pros and Google, such as the pictured author of Marketing Battleground: How to Deploy Under-the-Radar Strategies example I recently received to Explode Your Profits. His website can from Google. be found at www.DealerProfitPros.com.
THAT’S MY PATH TO +MORE CHRIS TINGLER | CAR SHOP INC. | COVINGTON,VA
I used to be a cash buyer, but now that we have a NextGear Capital floor plan to buy inventory, our money is funding the upgrades and lot improvements we thought were 5-10 years off in the future.
Discover where we can take you. Visit nextgearcapital.com.
*This testimonial was received via interview, audio and/or video submission. This testimonial is based on this dealer’s individual experiences, reflecting real life experiences of a NextGear Capital dealer. NextGear Capital does not claim they are typical results that dealers generally will achieve. This dealer’s experiences may not be indicative of future performance or success of any other dealers. Some of the testimonial has been shortened so the whole message is not displayed due to length and/or relevance.
WWW.IL-IADA.ORG SEPTEMBER/OCTOBER 2019 DEALER’S EDGE 11
SALES MATTERS |
By John Chapin
MENTAL TOUGHNESS AND SALES SUCCESS
Train to Overcome
In a recent article, I mentioned the five foundational personality qualities necessary for sales success: people skills, mental toughness, work ethic, attitude, and character (honesty and integrity). If someone is missing any one of these, they won’t make it in sales over the long haul. Of the five, I find the one that is most overlooked is mental toughness. Not just in the initial search when looking for a new sales rep, but also after the person is hired. When someone comes to you, they either have good people skills, work ethic, attitude and character, or they don’t. You can’t teach those. They also come to you with some level of mental toughness. It may be high, low, or somewhere in the middle, but they at least have some. That said, mental toughness is a skill that can be, and should be, developed after they’ve been hired, similar to sales skills and product knowledge. This is where many companies miss the boat. While most companies have some form of product and sales training, very few do any mental toughness training, and mental toughness can make or break a salesperson. Why mental toughness training? There’s a saying that 90 percent of life is mental, or as Yogi Berra reportedly said, “90 percent of life is half mental.” Whether or not you like math or Yogiisms, one thing is true: sales – like life – is pretty much 100 percent mental. Think about it. One hundred percent of our waking hours, and most of our sleeping hours, are done through our brain. With the amount of rejection required to be successful in a sales career, one needs to have a high level of mental toughness. When people fail at sales, 99.9 percent of the time it’s due to a lack of activity: they didn’t make enough calls, talk to enough people, or get enough qualified prospects to make enough sales. What causes the lack of activity is either fear of rejection (addiction to the approval of others), complacency (the comfort zone), or an inability to persist and persevere when they encounter repeated failure and rejection. The cause of each of these is a lack of mental toughness. What is mental toughness training and how do you do it? In short, mental toughness training is training people to overcome the mental hurdles they encounter in sales and in life. Essentially, it’s developing someone’s grit and determination.
You do it by discovering what they’ll fight for and what they’ll die for and then helping them use those emotional hot-buttons when they are down or otherwise unmotivated. This requires a deep dive into the psyche via targeted questions that cover the past, present, and future in all the major areas of life. What you’re after here is their why. Why do they do what they do? Why do they get up in the morning and go to work? Why is it critical they succeed in their career? A powerful why is the key to having a high level of mental toughness. As Nietzsche once said, “He who has a [powerful enough] WHY to live, can bear almost any HOW.” In other words, if the why is powerful enough, a person will go through almost anything to achieve their goals. That means they’ll push through rejection, won’t allow themselves to get complacent, and even when they are feeling down and beat up, they’ll still have the persistence and perseverance to keep moving forward. While finding someone’s why involves some extensive questioning over several weeks, in short, you discover someone’s why in two areas: pleasure and pain, which is the language of the brain. On the pleasure end, what are they running toward? What do they want for themselves and the people in their lives? Do they want a house on the lake or a new sports car? Do they want to send their kids to a specific school? Do they want to take a trip around the world with their family? Do they want to retire and travel? What are their goals and dreams, and how much money do they need to make those goals and dreams a reality? Start with goals but keep in mind for most people positive goals aren’t enough to keep them motivated long-term. As a result, we need to leverage pain. Pain is a more powerful motivator than pleasure for humans. What “pain” is someone running from in the present, hoping to avoid in the future, or striving to overcome from the past? What has happened to them that motivates them? Did they get fired from a job? Did someone tell them they’d never amount to anything? Is there an ex-spouse or ex-boss they’re going to show they made a mistake? Are they afraid of not having enough money? Are they afraid of how they’ll feel if they don’t provide for their family? Where are the issues, or the pain? What are the motivators or demotivators behind those? When you think of motivation, think of the 3 Ps: people, possessions, and proof.
12 DEALER’S EDGE SEPTEMBER/OCTOBER 2019 WWW.IL-IADA.ORG
A powerful why is the key to having a high level of mental toughness. As Nietzsche once said, “He who has a [powerful enough] WHY to live, can bear almost any HOW.” What do they want for the people in their lives, including themselves? What possessions do they want and what values do those possessions fulfill, such as peace of mind, security, love, and excitement? And what do they have to prove to themselves and others? Do they need to prove they are worthy, important, capable of taking care of their family, or good enough? When you discover what’s truly important to people, what they are willing to fight and die for, then you and they will have the necessary emotional hot-buttons to push for them to get through fear, step out of their comfort zone, and get back up after they’ve been knocked down. John Chapin is a sales and motivational speaker and trainer. He has over 31 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For more information, visit www.completeselling.com or email johnchapin@completeselling.com.
Theirs
Our Local Inventory
. t s a o c o t t s a o c y r o t inven
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Cut costs. Make more margin. manheimexpress.com Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc., registered in the U.S. and other countries. Google Play and the Google Play logo are trademarks of Google Inc. Š 2019 Manheim, Inc. All rights reserved. Manheim M logo is a trademark of Manheim, Inc.
WWW.IL-IADA.ORG SEPTEMBER/OCTOBER 2019 DEALER’S EDGE 13
ONLINE MARKETING |
By Kathi Kruse
6 SIMPLE FIXES
Making Your Website More Customer Friendly One of the highest priorities for dealers in 2019 is to make their website more customer friendly. However, even though most dealers agree it’s a priority, the resulting website often doesn’t live up to what they envisioned. I recently spent a few days doing a website audit for a local dealer. I was investigating their competitors and found a lot of sites that desperately needed updating – many were not even mobile-friendly. Bad website design, outdated aesthetics, and poor usability are all credibility killers. The Internet does not hand out second chances. No matter what you want people to do once they click to your site – buy, sign up, inquire about service, etc. – it’s all about conversions. Your website’s main role is to compel visitors to take action. Your dealership website must include a strategy to convert visitors. There’s a simple dealership website secret many seem to miss: If you make your website more customer friendly, your conversions will improve. But where do you begin? It’s best to focus on the simple fixes first. 6 S I MP L E F I X ES Here are areas that can be modified to improve user experience, engage visitors longer, and answer their questions – thereby setting your site up to convert more customers. Clearly State What You Do Studies show you have less than 10 seconds to convince visitors to stay on your site. If they don’t feel their needs are addressed, they will click away – often to a competitor. To gain several minutes of user attention, you must clearly communicate your Unique Value Proposition within 10 seconds. Also known as a unique selling proposition (USP), your UVP is a clear statement that describes the benefit of buying from you, how you solve your customer’s needs and what distinguishes you from the competition. Your unique value proposition should appear prominently “above the fold” in your hero image section at the top of your homepage. Easy to Find Contact Info Many websites still don’t give visitors an easy channel for getting in touch with the dealer. Some websites don’t even have an email address or contact form. Make your website more customer friendly with these simple fixes: • Make sure you have a “Contact Us” page. •P ut a link to your contact page in a conspicuous place in your header menu. •C reate “click-to-call” and “click-to-email” links so mobile users can easily reach you. Simplify Choices Hick’s Law is a popular theory. It states,
“The time it takes for an individual to make a decision is proportionate to the possible choices he or she has.” In other words, by increasing the number of choices, the decision time is also increased. You might be tempted to copy Amazon in their presentation of seemingly unlimited choices, but do everything you can to fight that urge. The reality is too much choice is overwhelming and often leads to customer inaction. Wading through a lot of information involves the conscious brain, and results in decision avoidance. The brain dislikes figuring out how one choice is different from the others. Simplify choices so they are easily distinguishable from one another. When presenting choices, keep in mind the brain is lazy and unwilling to wrestle with things. Make it easier for customers to choose by limiting the number of options, showing what makes an option different from the others, and visually emphasizing the choice you want them to act on. Simplify Menu Navigation The navigation on your site serves two purposes: • I t helps the user find what they’re looking for. • I t helps your search engine rankings. Website visitors should come first, search engines second. Use descriptive navigation instead of generic text. Use words your visitors would use and words your visitors are searching for. It’s fewer clicks for the user and it helps search engines indicate your relevance. Keep menus short and concise so they serve the user’s needs. Avoid the temptation to over-complicate. Your customers are on your website to do something, so the navigation should help them do that thing as quickly and pain-free as possible. Pricing The debate on whether or not to include prices on the dealership website rages on. Why? Because every dealer is different and website owners look to Google to help them decide, which often only confuses the situation. The fact is to make a website more customer friendly, there are good reasons to list pricing, or at least a “starting at” or range of price: • Give visitors what they want. If someone loves what they see but they have to email you to get pricing, you may never hear from them. And poor user experience may cause them to tell others. • Saves visitors time. People have an idea of what they can spend. Pricing saves time for people who aren’t your target customer for budget reasons.
14 DEALER’S EDGE SEPTEMBER/OCTOBER 2019 WWW.IL-IADA.ORG
• Save yourself time. Pricing on your site allows potential clients to figure out what a vehicle or service will cost them without bombarding your inbox with inquiries. Clear Calls to Action Calls to action (CTA) should be strategically placed and designed to stand out. “Buy Now” buttons, lead forms, contact pages, click-to-call buttons, newsletter sign ups and more are all crucial to your website performing the way it should. Use strong command verbs: • When a visitor is on a specific vehicle, “Schedule a Test Drive” is a good next step for them. • How about a simple vehicle inquiry? Start your CTA with words like “Find Out More” or “Got Questions?” • Are you looking for more newsletter subscribers? Start your CTA with words like “download” or “subscribe.” • Want someone to request more information? Try “fill out a form for…” or “find out how…” Guide your website visitors through the buying journey with strategically placed, clear calls to action. Focus your efforts on outstanding website user experience. Ninety-five percent of all vehicle purchases begin online. Take a few minutes and go through your website as your customer would. Make note of what works for you and what doesn’t. Take these simple fixes to make your website more customer friendly to your company website provider. Ask them to consider each one and how it may improve your conversions. The changes will help you avoid the negative results on your store’s website and ultimately delight your customers. Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc., which coaches, trains and delivers webinars focused on integrating social media and online reputation management into dealership operations. She can be reached at kathi@krusecontrolinc.com.
MARKET WATCH |
By Auto Remarketing Staff
BEST CARS FOR RECENT GRADS
Autotrader Report
With the Ford Mustang, a college graduate can enjoy the use of a quick, sporty car before family life kicks in. The 2015 to 2019 model Mustang is one of 10 vehicles Autotrader has named as the “best cars for recent college graduates in 2019.” Autotrader managing editor Tara Trompeter said each vehicle on Autotrader’s list can serve as an entry-level car “that will have recent graduates riding in style as they begin their new journey.” The top 10 vehicles from Autotrader for college graduates, not in order, are as follows: 2012-2017 Jeep Wrangler Long before these graduates were in middle school, this vehicle made its way on the market. Autotrader says the Jeep Wrangler JK generation is perfect for young adults “who want to do some off-roading and like the classic utilitarian look.” Autotrader also notes a 2012 upgrade to the vehicle featured a more powerful V6 engine, automatic transmission and standard four-wheel drive. 2014-2019 Kia Soul Autotrader says the all-new 2020 Kia Soul might be a bit out of price range for college graduates. But in the areas of safety and style, the company says “the outgoing second-generation model” is affordable, spacious and reliable. 2015-2019 Ford Mustang Mentioned earlier as a “quick, sporty car,” the Ford Mustang began its current generation in 2015 with substantial interior design and quality improvements. The vehicle is available with automatic or manual transmission as a coupe or convertible. 2015-2019 GMC Canyon Friends of college-graduate owners of the GMC Canyon might come calling for moving help when they move out of their dorms. But for college graduates who like the idea of a truck but don’t want a big gas guzzler, the GMC Canyon is a great option, Autotrader says. 2015-2019 Honda Fit Autotrader says although the Fit’s subcompact proportions might scare people away, this vehicle has “a huge reconfigurable interior.” That includes a back seat Autotrader says is roomier than several cars that are a size bigger. 2016-2019 Chevrolet Volt The Volt features what Autotrader describes as an impressive all-electric range of 53 miles and a modern interior. Autotrader says the vehicle is “a fantastic plug-in hybrid” that suits environmentally conscious and fuel economy-conscious drivers. 2016-2019 Hyundai Tucson With a roomy, quiet interior and high reliability ratings, the Hyundai Tucson is the “best bang for your buck” for a used compact SUV.
2016-2019 Toyota Prius Autotrader acknowledges the Toyota Prius might not be the coolest looking vehicle to impress your date. However, the company describes the Prius as “simply one of the most practical a recent grad can buy.” The company says the Prius is a great option for its safety features, “decent sized cargo area” and affordability. 2017-2019 Mazda CX-5 Autotrader describes the Mazda CX-5 as a class leader that will make drivers feel like
they’re in a much more expensive vehicle. The company compliments the vehicle for its smooth ride, sharp handling and roomy, comfortable seats. 2018-2019 Subaru Crosstrek The Crosstrek is a “light off-roader with better road manners,” according to Autotrader. With symmetrical all-wheel drive, spacious back seats and good gas mileage, the vehicle is well-suited for camping with friends and spending less at the pump, according to the company.
WWW.IL-IADA.ORG SEPTEMBER/OCTOBER 2019 DEALER’S EDGE 15
WASHINGTON UPDATE
| By Shaun Petersen
NIADA GOVERNMENT UPDATE
Latest Government Issues and Activity L E G I S L AT I V E
Minimum wage: The House of Representatives passed legislation that would raise the federal minimum wage to $15 per hour by October 2025. The bill, which would more than double the federal minimum wage of $7.25 per hour that was put in place in 2009, passed by a 231-199 vote that was largely along party lines – three Republicans voted for it while six Democrats voted no. Currently, 29 states and Washington D.C. have a higher minimum wage than the federal standard, and seven states have raised their minimum wage to $15 per hour. The nonpartisan Congressional Budget Office estimated the bill would give 17 million U.S. workers a raise and lift 1.3 million people above the poverty level. But the CBO said it would also cause 1.3 million Americans – and perhaps as many as 3.7 million – to lose their jobs and would “reduce business income and raise prices” because businesses would pass the increased costs on to consumers. While Democrats celebrated the vote as a victory, the bill is not likely to advance any further. Senate Majority Leader Mitch McConnell (R-Ky.) said the Republican-controlled Senate will not consider it. “Research shows hiking the minimum wage to $15 would kill jobs and depress the economy at a time when it’s thriving for the American people,” McConnell said. “We are not going to be taking that up in the Senate.” Credit reporting: A series of bills designed to overhaul credit reporting were passed by the Democrat-controlled House Financial Services Committee in straight party-line votes, sending the measures to the full House for consideration. The bills would give consumers greater access to their credit reports and restrict how those reports can be used by businesses. Among the proposals were those that would: •P rohibit the use of consumer reports for most employment decisions unless required by federal, state or local law, or unless the report is used in connection with a national security investigation. •E xpand the information given to consumers about their credit scores and require nationwide consumer reporting agencies to provide free consumer reports and credit scores under certain circumstances. •D irect the Consumer Financial Protection Bureau to set standards for validating the accuracy of credit scoring models and give it the authority to block credit scoring companies from considering or including factors that could create a false or deceptive picture of a consumer’s creditworthiness. •B lock credit reporting agencies from including adverse information related to delinquent or defaulted private education loans for certain borrowers who demonstrate a history of timely repayment on loans. • I mpose new requirements for conducting reinvestigations of consumer disputes and allow consumers to appeal the results of reinvestigations, as well as requiring furnishers to retain records to substantiate the accuracy and completeness of furnished information. •S horten the time adverse information can stay on a consumer report.
16 DEALER’S EDGE SEPTEMBER/OCTOBER 2019 WWW.IL-IADA.ORG
R E G U L ATO RY
Privacy is front and center on the regulatory landscape after the Federal Trade Commission announced two history-making settlements in July. The FTC closed the books on Equifax’s 2017 data breach that exposed sensitive personal information of some 147 million consumers with a settlement that could cost the credit bureau up to $700 million. The settlement includes $300 million – and possibly up to $125 million more – to compensate consumers with free credit monitoring and cash for those who paid to battle identity theft or credit issues caused by the breach. Equifax will also pay $175 million to settle with 48 states, D.C. and Puerto Rico, and $100 million in civil penalties levied by the CFPB. The FTC’s case against Facebook – a repeat offender for violating an earlier settlement for privacy violations – is even more staggering. The $5 billion civil penalty is the largest ever imposed on a company for violating consumers’ privacy and it’s among the largest ever assessed by the U.S. government for any reason. The deal also includes unprecedented control of creating and implementing the company’s privacy policies by independent assessors who report to the FTC, and gives the FTC unparalleled access to Facebook’s information and decision-making. It also makes CEO Mark Zuckerberg liable for civil or even criminal penalties for further violations. With privacy issues squarely in regulators’ crosshairs, NIADA submitted comments on the FTC’s controversial proposals to revise its Safeguards Rule, which requires financial institutions to protect the security of their customers’ information. The revisions, which tighten the requirements to be included in the comprehensive information security program mandated by the rule and require encryption of all customer data as well as access controls and multifactor authentication to help prevent unauthorized users from accessing customer data, passed by a slim 3-2 margin amid concerns about how the costs of implementation could disproportionately affect small businesses.
NIADA is your voice in Washington D.C., advocating for independent dealers, the used vehicle industry and small business. Here’s a look at the latest news and NIADA efforts regarding legislative, regulatory, PAC and grass roots activities.
Senate Majority Leader Mitch McConnell
GRASS ROOTS
Rhode Island: Dealers have expressed concerns about the Ocean State’s dealer licensing process – and Lt. Gov. Dan McKee is listening. McKee met with NIADA and local dealers last month in Providence and was very engaged and eager to help. In recent weeks he has been visiting dealerships around the state to learn more about the issues dealers are facing and to get dealers’ ideas about how the licensing process can be made more effective and efficient. This is an example of how dealers can become politically engaged and affect the government policies that impact you every day. NIADA encourages you to invite your elected representatives – at the federal, state and local levels – to visit your dealership. It is the single most effective thing you can do as a dealer to educate those representatives about what you do, how your business works and how the laws and regulations they create affect you and your business in the real world. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.
ACCELERATE | By GWC Warranty
PUT THAT LOBBY MONITOR TO WORK
Make Your Job a Little Easier
Something as simple as a monitor in your showroom can go a long way toward helping how your business performs in the F&I office. Having videos on a loop that help customers get on board with the idea of a service contract is a great way to make your F&I job a little bit easier. The great thing about video is it helps customers get to the decision about a VSC on their own rather than being sold the service contract. In these instances, customers feel like the VSC purchase was their idea and therefore feel more comfortable with the value of a VSC purchase. Cost of Repairs A video that describes the cost of common repairs gives customers an idea of what they might be on the hook for if something small or major were to happen to their vehicle. The reality of buying a used car is they are more likely to break down over time. As long as customers know what these repairs can cost, they can justify the cost of a VSC once they get to that point in the process.
Customer Reviews If you work with a quality VSC provider, they should have content on hand to show how they’ve taken care of customers in the past. You can sell customers on the peace of mind associated with a service contract, but seeing how it actually paid off shows just how valuable a VSC can be in a customer’s time of need. Coverage Videos Once customers have an idea of what some common repairs cost and how valuable a VSC can be during a difficult repair experience, you can begin to educate them on the coverage levels you offer. Using video to educate your customers on different coverage levels shows them what is covered under different plans. If they know components they want to protect, they’ll connect that knowledge with the coverage level videos to start making up their minds on what product to purchase. When it’s all said and done, these videos plant the seed about service contract early on, so when the time comes to present your coverage options, your job can be a little bit easier and the sale a little bit smoother.
SAFETY WATCH
FORD RECALLS 57,488 FOCUSES
Vapor Management
Ford Motor Co. is recalling 57,488 2012 and 2017 Focus vehicles equipped with 2.0L GDI gasoline engines and 2013-14 Focus ST vehicles equipped with 2.0L GTDI engines, previously recalled under 18V-735. The affected vehicles did not have the powertrain control module (PCM) updated as intended. Therefore, the canister purge valve (CPV) may malfunction, possibly causing excessive vacuum in the fuel vapor management system. Ford will notify owners and dealers will reprogram the PCM. Dealers will also check for fault codes and replace the CPV as needed. If the CPV is replaced, dealers will inspect and replace the carbon canister, fuel tank and fuel delivery module as necessary. Ford’s number for this recall is 19S22. WWW.IL-IADA.ORG SEPTEMBER/OCTOBER 2019 DEALER’S EDGE 17
ONLINE MARKETING |
By Kenny Atcheson
5 WAYS TO PROTECT YOUR DEALERSHIP
Avoid Online Smears
First, read the following real comments by customers. Anything sound familiar? Could these comments lead to solutions? Does having these comments provide an advantage or save you from problems? Deborah: “The sales experience was good. The customer service after the sale has earned a 0. The car had three recalls and a leaking oil tube to the turbo and three mismatched tires. We took care of all these ourselves. But the warranty and service department in Rowling has turned me off to your company. I have been making my payments eight days early. Suzy is an embarrassment to your company. She is not only rude, she sets service appointments and then isn’t even at her job at the appointment time. She doesn’t even tell you up front about the $85 diagnosis fee. She leaves checks on her desk that a customer can easily reach through the window and take. I will get the AC system that is ‘covered’ by your 12/12 warranty fixed somewhere else. I won’t be buying from you in the future and forget about my payments being early. Suzy has single-handedly cost you a good customer.” Milton: “I have noticed that when you bring your vehicle in, whether for routine maintenance or a maintenance issue, you are not given a receipt or printout of repairs/ maintenance done. I asked the first time but was told by Suzy a new system was being installed. I was given one a week later. But the last two times one was not provided. A receipt in any setting is PROOF of purchase. Refusal or reluctance to provide a receipt of work/service performed is suspect to say the least. No paper trail, no record. Who’s to say that work was actually completed? Initial customer service was, of course, awesome. However, even more important to me is how I am treated after the sale. Disappointed is an understatement. Even though we have referred two people, we don’t feel comfortable recommending anyone else.” Maria: “I thought they worked with any credit but apparently they don’t.” Gregory: “I have been trying to contact Darren after applying but he doesn’t call back. I already bought one car through you and still can’t get a call. Guess I will have to go somewhere else.” Fortunately, all of these customer comments were internal.
Online smears have become a common practice for customers of independent dealers. Most dealers nowadays realize the importance of online reviews. However, they sometimes focus too much on getting positive reviews and do not give enough effort to avoiding negative reviews. Here are five ways to protect your dealership. Solicit Feedback Regularly A recent study revealed that only one out of 26 unhappy customers will complain to management. That means you could have 25 unhappy customers running around venting to everyone else. They are complaining at work, to their friends and family, and online. Some may complain to a local attorney general or the FCC, FTC, or another acronym that makes your wallet quiver. Wouldn’t you rather have customers complain to you? Welcome customer feedback at every step and after the sale. You may be able to keep a small issue small instead of it blowing up all the way to the attorney general. What if a customer truly could not understand why you turned them down for financing? That customer may look for other reasons why you didn’t sell to them. They may think you are discriminating against them. Sometimes the customer just doesn’t get it, but they could if you received their complaint and someone in management contacted them to explain. The customer may still not be thrilled with you but perhaps they won’t take it to the next level. Keep Issues Internal All of the customer feedback in this article went through the ThanksForFeedback.com system. As of this writing, none of these customers wrote a negative review publicly on Google. A previous unofficial case study found 97 percent of customers who complain through the system did not write a negative review publicly on Google. If you give your customers a chance to vent, they are less likely to do so publicly. Many customers just want to be heard, not to purposely destroy your business. If you don’t give them an easy method for offering feedback, they will find a way to do so elsewhere – and it will be for all the world to see.
18 DEALER’S EDGE SEPTEMBER/OCTOBER 2019 WWW.IL-IADA.ORG
Don’t Forget After the Sale As you know, there are more complaints after the sale than at the point of sale. If you are a Buy Here-Pay Here dealer, you may have the “audacity” to contact the customer to ask for payment. Sometimes they don’t like that. All used car dealers can experience customers who are ticked off because their check engine light came on. Nobody likes to have to bring in a vehicle for repairs. If a customer brings their vehicle in for repairs they should have an easy method for providing feedback while they are waiting and stewing. Not all feedback systems provide this capability, but when they do there are several ways to provide opportunities for customers to tell you what they think after the sale, including: • Signs on the exit door with a number to text feedback. • Sign-in flyer stand at the counter and/or on tables in the waiting area. • On the receipt (although some customers will complain before they get the receipt). • A feedback text number in a regular email newsletter or printed direct mail newsletter. Non-Customers If someone visits your website or the dealership, chances are good they are considering buying. If they don’t purchase, there is a reason. If a customer visits your website, fills out an application, takes a phone call from a salesperson, makes an appointment, shows up for an appointment, and then doesn’t buy, do you think they are more or less likely to complain than a customer who purchased a vehicle? Give non-customers a way to provide feedback. You may keep it internal. You may find out something going on at the dealership that surprises you. Employees Although the names and places were changed in the customer feedback in this article, Suzy was an employee who was mentioned several times. This may alert management that customers have a problem with Suzy. Having an easy system for customers to comment at all times will keep employees on their toes. In addition to earning a great online reputation, an effective customer feedback system offers a number of benefits that are just as valuable. Kenny Atcheson is the founder and president of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-the-Radar Strategies to Explode Your Profits. Kenny teaches workshops and speaks at conventions and 20 Groups. His company offers several marketing and advertising programs, customer service and sales training. His website can be found at www.DealerProfitPros.com
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