DEALER
NEWS
MASSACHUSE T T S/NE W ENGL AND INDEPENDENT AU TOMOBILE DE ALERS ASSOCIATION
J U LY/A U G U S T 2 019
WORLD AUTOMOBILE AUCTIONEERS CHAMPIONSHIP RECAP CODY SHELLEY CLAIMS 2019 TITLE | PAGE 6 |
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INDUSTRY EVENTS CALENDAR a list of the events coming up in the automotive industry. For an interactive calendar, including links, contract information and more, visit www.niada.com and click on the Events tab.
2019 July 9-11..................................................................................NIADA BHPH Bootcamps..............................................................................................................Atlanta 16.....................................................................................NIADA Service Operations Training........................................................................................Sarasota, Fla. 16.....................................................................................Washington State IADA Education Fair East........................................................................Spokane, Wash. 18-20..............................................................................Georgia IADA Convention and Expo........................................................................................Stone Mountain, Ga. 19.....................................................................................Ohio IADA Summer Golf Outing................................................................................................Worthington, Ohio 19-20..............................................................................Florida IADA Town Hall and Board Meeting........................................................................Tampa, Fla. 19-21...............................................................................Alabama IADA Convention...........................................................................................................Gulf Shores, Ala. 21-23...............................................................................Texas IADA Conference and Expo............................................................................................San Antonio, Texas 23-25..............................................................................Automotive Intelligence Summit...............................................................................................Raleigh, N.C. 24.....................................................................................NIADA Sales Essentials Training...............................................................................................Sarasota, Fla. 25.....................................................................................NIADA Selling on Social Media Workshop............................................................................Sarasota, Fla. August 8-9...................................................................................NAAA Auction Standards Training...........................................................................................Moody, Ala. 8-11..................................................................................Carolinas IADA Annual Convention and Expo....................................................................Myrtle Beach, S.C. 12......................................................................................Massachusetts IADA Golf Tournament...................................................................................Kingston, Mass. 15......................................................................................Washington State IADA Education Fair West.......................................................................Tacoma, Wash. 19-21...............................................................................Digital Dealer Conference.............................................................................................................Las Vegas 21-22...............................................................................NIADA BHPH Training School....................................................................................................Sarasota, Fla. 21-23...............................................................................NIADA Certified Master Dealer Class.......................................................................................Chicago 23-24..............................................................................Louisiana IADA Convention.........................................................................................................New Orleans 25.....................................................................................Indiana IADA Golf Tournament/Awards/Trade Show......................................................Indianapolis, Ind. 27-28..............................................................................NIADA BHPH Accounting Training..........................................................................................Sarasota, Fla. September 9.......................................................................................MARIADA Dealer Compliance Day East.................................................................................King of Prussia, Pa. 14-16................................................................................Mississippi IADA Convention......................................................................................................Biloxi, Miss. 16-17................................................................................South Dakota IADA Dealers Convention................................................................................Sioux Falls, S.D.
WWW.MIADA.COM JULY/AUGUST 2019 DEALER NEWS 3
INDUSTRY NEWS | By Used Car News
NEW CFPB DEPUTY DIRECTOR
BRIAN
JOHNSON
JULY/AUGUST INSIDE
2019
06.............World Auto Auctioneer Championship 08.........................Make It a Big Year With A Menu 09.................................CFPB Targets Collections 10............... Building a Successful (Sales) Culture 12................................NIADA Government Report 14.....Success Objectives & Social Media Metrics
ADVERTISERS INDEX
Alliance................................................................ 5 Auto Auction of New England ........................ IBC Central Mass AA.................................................. 3 Manheim ............................................................. 11 NextGear Capital ............................................ 8-9 Southern Auto Auction.....................................IFC vAuto................................................... Back Cover Warrantech.......................................................... 7
WHAT’S NEW
NABD SUBPRIME CONFERENCE S AV E T H E DAT E : OCTOBER 7-9 Save the date for the 2019 NABD Fall Buy Here-Pay Here Subprime Conference! It will be held October 7-9 at the Marriott Marquis Chicago. Stay tuned for more details!
OFFICE
For information on how to become a member of MIADA, please contact MIADA at 781-278-0077 or heidimiada@gmail.com.
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 MA/New England Dealer News is published bi-monthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 760065203. 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 Dealer News or NIADA. Likewise, the appearance of advertisers, or their identification as members of MIADA 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 Jeffrey McQuirk • jeffrey@niada.com PRINTING Nieman Printing
4 DEALER NEWS JULY/AUGUST 2019 WWW.MIADA.COM
Consumer Financial Protection Bureau director Kathleen L. Kraninger recently announced Brian Johnson will serve as the deputy director. Mr. Johnson first joined the bureau in December 2017 as senior advisor to the director and was named principal policy director in April 2018. He has served as acting deputy director since July 2018. “I’m glad to announce officially that Brian will be the bureau’s deputy director,” said Kraninger. “Not only has he done a fantastic job serving in the acting capacity, he has been an invaluable part of the team. Brian’s extensive experience on consumer and financial policy will continue to serve the bureau in its focus on preventing consumer harm and using all of the tools Congress gave
EXECUTIVE COMMITTEE
us to protect consumers.” Johnson joined the bureau from the House Financial Services Committee, where he spent over five years serving in various capacities, including senior counsel, chief financial institutions counsel, and policy director. During his time on the committee, Mr. Johnson led the policy and legislative work for the Financial Institutions and Consumer Credit Subcommittee on issues related to consumer protection and credit, mortgage origination, credit reporting, banking and data security. Prior to joining the committee, Johnson worked for the attorney general of Ohio and the White House Domestic Policy Council. He received his B.A. in economics, as well as his J.D., from the University of Virginia.
BOARD OF DIRECTORS
PRESIDENT Juan Carlos Mendez JC Auto Sales
Bob Baker Jr. Dorchester Motor Sales
Lou Tedeschi A.S.P.I. Motor Cars
VICE PRESIDENT Pierrot Abiramia Milford Auto Mall
Rich Copponi AutoUse
Ray Daneshmand Choice Auto Center
TREASURER Dan El Dourihi 1A Auto Sales
Harold Proodian Wagner Motor Group
Phil Greenstein Keystone Automotive
SECRETARY Steve Newcomb Royal Administration
Robert Shaw, Sr. Shaw Auto Leasing
Donald McKenna Patriot Motors
Luke Semmelrock Central Mass Auto Auction
Ron Dial Dialworks
John Perro Perros Auto Sales
Gary Innamorati Jackson Motors
CHAIRMAN OF THE BOARD Bob Hayes Auto Town Rentals Inc. EXECUTIVE DIRECTOR Heidi Saad heidimiada@gmail.com
PAST PRESIDENTS
Steven Carnes - Worldwide Preowned LLC Tim Collins - Quincy Auto Auction Eddie Coolbrith - S & E Auto Ron Dial - Dialworks Phil Greenstein - Keystone Automotive
Ernie Wantman Dreamworks Motors
Donald McKenna - Patriot Motors Inc. Fred Moschetto - Moschetto Brothers Inc. Louis Tedeschi - ASPI Motor Cars John Eleftherakis - John’s Auto Sales
INDUSTRY WATCH | By Auto Remarketing Staff
LATEST SAFETY FEATURES PIQUING INTEREST
RECENT
SURVEY
BY
While your used inventory probably doesn’t have any self-driving cars – yet – your store already might have models containing the latest safety features a large number of consumers surveyed by CarGurus want. Along with gauging interest in vehicles having features such as a rear-view camera or blind-spot monitoring, the company’s newest automotive consumer research findings showed that over the past year there was a perception shift regarding self-driving cars. CarGurus learned consumers expressed greater enthusiasm for self-driving car development overall, and also showed a stronger likelihood of owning a self-driving car in the next 10 years. Specifically, the survey found: •R espondents excited about the development of self-driving cars increased from 21 percent in 2018 to 32 percent in 2019, and the respondents concerned about them decreased from 47 percent to 37 percent. •2 8 percent of respondents specified they could own a self-driving car in the next 10 years, more than double the 13 percent from last year. “Consumer sentiment around self-driving cars is changing fast, with enthusiasm rapidly replacing skepticism,” said CarGurus director of customer insights Madison Gross. “These benchmarked results demonstrate that today’s consumers are becoming more comfortable
CARGURUS
with the idea of either owning an autonomous vehicle, or having them on the road, and it will be fascinating to continue to monitor this perception shift.” While dealers cannot yet go to the wholesale market and find self-driving vehicles heading down the lanes, managers can offer vehicles that have advanced safety features some owners already have or hope to get in their next vehicle. CarGurus’ survey delved into that topic, too: •R ear-view camera: 34 percent already own and 43 percent extremely interested. •B lind-spot monitor: 11 percent already own and 61 percent extremely interested. •S urround-view camera: 4 percent already own and 51 percent extremely interested. •A utomatic emergency braking: 8 percent own and 45 percent extremely interested. •A daptive cruise control: 14 percent already own and 38 percent extremely interested. •L ane-keep assist: 8 percent already own and 41 percent extremely interested. •D river-attention monitor: 5 percent already own and 37 percent extremely interested. •A utomatic parking: 2 percent already own and 37 percent extremely interested. When looking into which companies consumers trust the most to develop selfdriving cars, the survey found Tesla remains atop the most trusted, and increased its lead
over last year. The next-most-trusted companies to produce a self-driving car are Toyota and Waymo. Seventeen percent of respondents selected “None” for which company they trust, which is a shift from the 27 percent in last year’s survey. CarGurus’ research looked into which vehicle owners would consider buying a self-driving car from their current brand, if it were available. Survey orchestrators found: •5 6 percent of Honda owners would consider buying a self-driving car from Honda. •5 1 percent of Toyota owners would consider buying a self-driving car from Toyota. •4 3 percent of Chevrolet owners would consider buying a self-driving car from Chevrolet. •4 1 percent of Ford owners would consider buying a self-driving car from Ford. CarGurus asked respondents whether they were ready to take a ride in self-driving cars provided by services such as Uber and Lyft. The survey showed: •3 5 percent of people who currently use ride hailing services are likely to take a ride from these services in a self-driving car. •O f those who currently use ride hailing services, 22 percent trust Uber the most to develop a self-driving car and 13 percent trust Lyft.
WWW.MIADA.COM JULY/AUGUST 2019 DEALER NEWS 5
COVER STORY
AUCTION NEWS
WORLD AUTOMOBILE AUCTIONEERS CHAMPIONSHIP RECAP
CODY SHELLEY FOLLOWS HIS MENTOR WITH A VICTORY AT THE 2019 WORLD AUTOMOBILE AUCTIONEERS CHAMPIONSHIP
Photos by Myers Jackson ceo@myersjackson.com
World champion ringman Landon Waddle
WAAC president Paul C. Behr (left) and 2018 champion auctioneer Casey Enlow (right) flank the 2019 world champs: Blake McDaniel and Chris Elliott (team), Cody Shelley (auctioneer) and Landon Waddle (ringman)
Winning a world championship was a special moment for Cody Shelley. There was only one way it could be even more special. When 2018 champion Casey Enlow handed his fellow Oklahoman the trophy at the 2019 World Automobile Auctioneers Championship, Shelley couldn’t help getting emotional – especially since he knew it took Enlow, his longtime mentor, 17 tries before he won his title. “I don’t feel worthy or deserving of this,” Shelley said. “He’s taught me so much.” Shelley, who won in his sixth appearance in the contest, credited Enlow and Oklahoma auctioneer John Gary Collins as being instrumental in turning a high school rodeo star with dreams of going pro into a world champion auctioneer. “This means so much, especially coming from Casey – and from the other people who have won it in the past,” Shelley said. Shelley’s score of 91.5833 edged 2017 runner-up Matt Moravec for the victory in the 31st annual event, held May 10 at
6 DEALER NEWS JULY/AUGUST 2019 WWW.MIADA.COM
Charleston Auto Auction in Charleston, S.C. Landon Waddle of Lago Vista, Texas claimed the title of world champion ringman, while Blake McDaniel won his second team title, this time pairing with defending champion ringman Chris Elliott to take top honors. Shelley, who turned 30 the day before the contest, looked very much like a rising star when he finished third in his first WAAC appearance in 2013. But he missed the finals the next two years, then skipped the event the next year before returning in 2017. In fact, Shelley almost missed this year’s WAAC as well, after a delayed flight turned what should have been a relatively easy trip into an all-night odyssey. He had rushed back from Dallas that day, stopping at his home near Tulsa just long enough to pick up the bag his wife Ashley had packed for him before heading to the airport. But when a flight delay caused him to miss his connection to Charleston, Shelley said, he thought about turning around and going home.
World champion auctioneer Cody Shelley
He didn’t – not because he wanted to compete as much as because of his friendships with his fellow auctioneers. “I’ve met so many unbelievable people here,” he explained. “I was just going to go home. And then I got to thinking I just wanted to see everybody. … That’s what made me go.” It was nearly midnight when Shelley arrived in Atlanta. He tried to talk his way onto another flight to Charleston, but it was full, forcing him to rent a car and drive. “I said, ‘I understand the flight was overbooked, but since it’s been delayed, some people didn’t make it. Can you let me on?’ ” he recalled in an interview on Mike “McGavel” Jones’ podcast. “ ‘Nope.’ The pilot was standing there at the gate and he said, ‘I’ll race you.’ ” Needless to say, the pilot won the race. Shelley arrived in Charleston at 4:45 a.m., took a quick shower and got to the auction at 6:30 to get ready to compete. “It was a long day,” he said. “It didn’t go as planned, but I got here.”
MAKE IT A BIG YEAR WITH A MENU
ACCELERATE |
LAND
By GWC Warranty
MORE
VSC
SALES
Selling more service contracts and higher quality F&I products all starts with how you present them to customers. If you do it right and do it often, you stand to make big gains in the F&I office. It’s been proven time and again that running through your menu of service contract options in a strategic way is the best way to land more VSC sales. Stick to the plan and you can look forward to a profitable uptick in F&I business. Consistency Is Key A menu sell is going to work if you do it every time with every customer. Anything less and it’s nothing more than a shot in the dark. You won’t land a VSC sale every time, but your chances only improve with each time
you go through the full presentation – not to mention the practice you get along the way. Start From the Top Executing a masterful menu sell starts at the highest level of coverage you offer. Working your way backwards through the menu highlights the components and coverages that drop off as you decrease the coverage level. This points customers in the direction of making a decision on what certain components and coverage perks are worth to them. And when a customer makes the decision on their own they’re more likely to feel they bought something rather than being sold something. Ask the Right Questions It’s important to tell a story to help
customers understand why they need a VSC. The best way to go about this is to ask questions to understand what matters to a customer. Are they looking for a commuter car? Or maybe it’s a customer who prioritizes style and image. Whatever it is, digging in to understand what customers find important about their vehicles can shape your story. For the commuter, you can sell practicality and protecting their job. For the image-conscious buyer, a VSC helps protect their investment and get the vehicle back on the road quickly.
REGULATORY NEWS | By SubPrime Auto Finance News Staff
CFPB TARGETS COLLECTIONS
PROPOSING
NEW
FDCPA
The Consumer Financial Protection Bureau is setting its regulatory target next on debt collection in light of technology advances such as text messaging and more. The bureau issued a notice of proposed rulemaking (NPRM) to implement the Fair Debt Collection Practices Act. CFPB officials said the proposal would provide consumers with “clear protections against harassment” by debt collectors and “straightforward options” to address or dispute debts. Among other things, the CFPB explained the NPRM would set “clear, bright-line” limits on the number of calls debt collectors may place to reach consumers on a weekly basis as well as clarify how collectors may communicate lawfully using newer technologies such as voicemails, emails and text messages that have developed since the FDCPA’s passage in 1977. The bureau also noted its initiative would require collectors to provide additional information to consumers to help them identify debts and respond to collection attempts. “The bureau is taking the next step in the rulemaking process to ensure we have clear rules of the road where consumers know their rights and debt collectors know their limitations,” CFPB director Kathleen Kraninger said. “As the CFPB moves to modernize the legal regime for debt collection, we are keenly
RULES
interested in hearing all views so that we can develop a final rule that takes into account the feedback received.” Prior to the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (DoddFrank Act), the CFPB explained Congress had not delegated to any agency the authority to issue substantive rules to interpret the FDCPA. The Dodd-Frank Act delegated that authority to the bureau. Officials reiterated their proposal would: • Establish a clear, bright-line rule limiting call attempts and telephone conversations: The proposed rule generally would limit debt collectors to no more than seven attempts by telephone per week to reach a consumer about a specific debt. Once a telephone conversation between the debt collector and consumer takes place, the debt collector must wait at least a week before calling the consumer again. • Clarify consumer protection requirements for certain consumer-facing debt collection disclosures: The proposed rule would require debt collectors to send consumers a disclosure with certain information about the debt and related consumer protections. • Clarify how debt collectors can communicate with consumers: The proposed rule would clarify how debt collectors may lawfully use newer communication technologies
to communicate with consumers and would protect consumers who do not wish to receive such communications by, among other things, allowing them to unsubscribe to future communications through these methods. The proposed rule would also clarify how collectors may provide required disclosures electronically. In addition, if consumers want to limit ways debt collectors contact them, the rule clarifies how consumers may easily do so. • Prohibit suits and threats of suit on timebarred debts and require communication before credit reporting: The proposed rule would prohibit a debt collector from suing or threatening to sue a consumer to collect a debt if the debt collector knows or should know the statute of limitations has expired. The proposed rule also would prohibit a debt collector from furnishing information about a debt to a consumer reporting agency unless the debt collector has communicated about the debt to the consumer, such as by sending the consumer a letter. The proposed rule can be found at https://files. consumerfinance.gov/f/documents/cfpb_debtcollection-NPRM.pdf. Officials said the public is invited to submit written comments on the proposed rule. The bureau said it will carefully consider comments received before a final regulation is issued.
SALES MATTERS |
By John Chapin
BUILDING A SUCCESSFUL (SALES) CULTURE
FOUR
FEATURES
OF
You just hired the perfect person: great work ethic, positive and upbeat. They show up early, leave late, take 10 minutes of a 15-minute break, and do more than expected and more than you ask for. Now let’s take that person and put them into an environment where people are negative, aren’t held accountable, take three days off for a hang-nail, show up at 8:05 then spend 45 minutes “getting ready” for their day, start preparing to leave at 3:30 and leave at 5:00 like there’s a fire drill. What happens to that perfect hire? One of two things: they either become just like everyone else after about a month, or they leave. Whatever your culture is, it has a substantial impact on performance. There is significant peer pressure to conform to the culture, be it good or bad. This peer pressure is one of the four main motivators for people who belong to any group. Positive peer pressure is what took my grades from C’s in public high school to A’s and B’s in private high school. It’s also what ensured I made over 200 phone calls per day in my first job as a stockbroker. If you’re a great team or organization with a great culture, fantastic. Unfortunately, most organizations have negative cultures, or at least elements of them.
F EATUR ES O F GR E AT C ULT UR E S Great Leadership Culture is top down. It begins at the top and flows down through the entire organization. Whatever the leadership team eats, breathes, walks and talks related to culture will become the culture. As a leader, you don’t get what you want, you get what you tolerate and allow. And what you tolerate and allow you tacitly condone and get more of. If you allow people to miss their numbers year after year, when it’s evident they aren’t making the calls and doing the necessary work, you’ll get more of that. If you allow negativity in the workplace and don’t hold people accountable, you’ll get more negativity and more people not doing their job. On the flip side, if you lead by example, walk your talk, believe in people more than they believe in themselves, empower them, listen to them, give them all necessary tools and resources, and hold them to a higher standard, you’ll get more of that. Rules and Decrees The culture in an organization is how people treat other people, how they treat work, and how they treat the work environment. Great cultures have rules and decrees regarding these three items – written rules and decrees.
10 DEALER NEWS JULY/AUGUST 2019 WWW.MIADA.COM
A
GREAT
WORK
CULTURE
Here are a few examples: • E veryone is expected to show up on time, work until the end of the day, finish what they start, be honest, have integrity, and put in a full day’s work for a full day’s pay. • E veryone will be held to the highest professional and ethical standards. There is no place in the workplace for negativity or unprofessionalism. You will be respectful to all employees and clients. Gossip, talking, and otherwise communicating behind someone’s back won’t be tolerated. • W e are a great organization with a great product. We take better care of our clients than the competition because we care more. Your rules and decrees, totaling about eight to 15 in number, should be framed and prominently posted in several highly-visible areas in the workplace on a document titled: Rules and Decrees of the Workplace. Prospective employees should also receive a copy of these during the interview process and you should have a conversation with them about how they feel about these. By the way, full acceptance of the rules and decrees is a non-negotiable prerequisite to being hired. Everyone is on Board with “All In” Commitment When Malcolm Butler was limited to a few special teams plays in Super Bowl 52, many people said that move cost the Patriots the Super Bowl. Maybe. My contention is that had they let him play and won Super Bowl 52, the Patriots would not have been back to play in Super Bowl 53. No one who breaks the rules gets a pass. If this is allowed even once, people inside the organization start to question the integrity of the culture, and the culture starts to crumble. When you’re more interested in winning, or making a sale, than living by your values, it’s the beginning of the end. Again, no one gets a pass on the rules, not even your top sales rep.
This doesn’t mean people don’t get a mulligan. You can allow a mistake or two, but address it immediately, and keep the leash short. Don’t allow chronic offenders who are making blatant and/or repetitive mistakes. While an occasional mistake may be inevitable, carelessness, ignorance, and apathy aren’t. Culture is a Living, Breathing Organism A great culture can’t simply be written out, placed on the wall, and left to die. It needs to be kept alive and well by visiting it often, talking about it, and reviewing it. Repetition is important, because like any new habit it will take time to imbed the culture into the consciousness and sub-consciousness of everyone in the organization. Once it’s locked in and habitually followed, discussing the culture keeps it on everyone’s radar and ensures it is remembered and adhered to. Also, it may be necessary to tweak some rules or decrees from time to time. Though many rules and decrees aren’t likely to change, there may be times when changes in people, technology, and other unforeseen future events make an edit necessary. Finally, you build a great sales culture by building a great overall company culture. As part of the organization, the sales department is included in all rules and decrees. Everyone, from leadership to the mailroom, must be on the same page when it comes to culture. So, while the sales department may have some additional rules and decrees related to activity, quotas, and other items, building an all-in, solid organizational culture is what will ensure the success of the sales culture. 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.
WASHINGTON UPDATE
NIADA GOVERNMENT UPDATE | By Shaun Petersen
LATEST
GOVERNMENT
ISSUES
AND
Sen. Marsha Blackburn
LEGISLATIVE Sen. Thom Tillis (R-N.C.) has introduced a bill to delay the new accounting standards for financial institutions – including Buy Here-Pay Here dealers – scheduled to take effect in 2020. The current expected credit loss (CECL) standard, which was issued by the Financial Accounting Standards Board in 2016, relies on an estimation of expected losses over the life of loans. The current standard, known as allowance for loan and lease losses, is based on losses already incurred. S.1564, which has six cosponsors, would stop implementation of the new standard while the Securities and Exchange Commission and other financial regulators study the potential impact of switching to CECL, including its effect on small financial institutions such as credit unions, the availability of credit and the risks to the U.S. economy. The proposal would also require a costbenefit study to determine the impact of CECL on nonfinancial institutions, insurers and government-sponsored enterprises. The Senate bill was introduced after a letter co-written by Rep. Roger Williams (R-Texas) and signed by a bipartisan group of 25 legislators – including Rep. Henry Cuellar (D-Texas) – was sent to the SEC expressing concerns that the new standard would adversely affect the availability and cost of credit. The bill was quickly endorsed by finance industry associations, including the American Bankers Association and the Credit Union National Association. REGULATORY CFPB proposes Debt Collection Rule: Debt collection, which has been on the Consumer Financial Protection Bureau regulatory radar for the past year, is now on center stage after the CFPB issued a notice of proposed rulemaking to update Fair Debt Collection Practices Act. The proposed rule is designed to account for recent advances in communications
12 DEALER NEWS JULY/AUGUST 2019 WWW.MIADA.COM
ACTIVITY
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.
Sen. Thom Tillis
technology that didn’t exist when the law was enacted in 1977, such as text messaging, email and voicemail. The bureau said the rule would set “clear, bright-line” limits on the number of calls debt collectors can make to consumers per week and clarify how debt collectors can communicate with consumers through various technologies – including allowing them to opt out of various methods. It also spells out disclosures collectors must make to consumers about their debt, limits lawsuits and threats to sue, and requires a debt collector to notify consumers before providing information about a debt to a consumer reporting agency. While the CFPB’s proposed rule would apply only to third-party collectors and would not affect independent dealers collecting their own debt, NIADA is seeking to avoid having this proposal set a precedent for future rulemaking governing first-party creditors servicing their own accounts. NIADA, working with the Buy Here-Pay Here Commission, is considering filing comments. FTC revises Safeguards Rule: The Federal Trade Commission has proposed amendments to revise its Safeguards Rule, which requires financial institutions to protect the security of their customers’ information. The revisions include significant changes, tightening the requirements to be included in the comprehensive information security program mandated by the rule and requiring encryption of all customer data as well as access controls and multifactor authentication to help prevent unauthorized users from accessing customer data. The proposed amendments are not without controversy, having been approved by the commission by a narrow 3-2 vote, and there has been talk about adding an exemption for small businesses. Commissioners Noah Phillips and Christine Wilson issued a dissenting statement, expressing concerns about, among other things, the “one size fits all” approach taken
by the proposed rules, noting the cost of implementing them and how that could disproportionately affect small businesses. The FTC is accepting public comment through August. NIADA is in the process of studying the amendments and their impact on independent dealers and plans to submit comments.
PAC NIADA met with freshman Sen. Marsha Blackburn (R-Tenn.) during her recent visit to Dallas to discuss issues affecting the used vehicle industry – notably the much-debated issue of open recalls. It was the association’s first meeting with Blackburn as a Senator. In November, the former eight-term U.S. Representative became the first woman elected to the U.S. Senate from Tennessee. She is a member of the Senate Committee on Commerce, Science and Transportation – a key committee that has jurisdiction over the recall issue. We look forward to more conversations with Sen. Blackburn in the future. GRASS ROOTS Bills have been introduced in both houses of New York’s state legislature that would ban the use of starter-interrupt devices by auto dealers. In response, NIADA and the New York IADA met with the sponsors of both bills – Assemblyman Michael DenDekker (D), author of Assembly Bill 3897, and Sen. Timothy Kennedy (D), who introduced SB 758 – to educate them on how the devices are used, what they can and cannot do, and their benefits to consumers and the subprime industry. Both legislators agreed to engage NIADA and NYIADA in additional conversations to further discuss best practices and potential model legislation. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.
27th Annual Golf Tournament
A PORTION OF PROCEEDS WILL BENEFIT THE
$
5000E
RAFFL
9:30 - 10:30 A.M. REGISTRATION
MONDAY, AUGUST 12, 2019 INDIAN POND COUNTRY CLUB
DISABLED AND LIMBLESS VETERANS INC. OUR MISSION STATEMENT We are a group of Veterans and citilian volunteers providing meals, clothing, and shelter to America’s most needy Veterans and their families. We are the conduit between individual and corporate donors and Veterans and their families who need services and support.
12:00 NOON SHOTGUN STARTS 6:30 P.M. DINNER
60 Country Club Way, Kingston, MA REPLY FORM PLAYER ONE
PLAYER THREE
NAME _________________________________________________________________
NAME _________________________________________________________________
ADDRESS ______________________________________________________________
ADDRESS ______________________________________________________________
CITY __________________________ STATE ___________ ZIP _______________
CITY __________________________ STATE ___________ ZIP _______________
PHONE _____________________________________
SHIRT SIZE ______________
PHONE _____________________________________
SHIRT SIZE ______________
EMAIL _________________________________________________________________
EMAIL _________________________________________________________________
PLAYER TWO
PLAYER FOUR
NAME _________________________________________________________________
NAME _________________________________________________________________
ADDRESS ______________________________________________________________
ADDRESS ______________________________________________________________
CITY __________________________ STATE ___________ ZIP _______________
CITY __________________________ STATE ___________ ZIP _______________
PHONE _____________________________________
SHIRT SIZE ______________
EMAIL _________________________________________________________________
PHONE _____________________________________
SHIRT SIZE ______________
EMAIL _________________________________________________________________
DEADLINE FOR REGISTRATION IS JULY 1, 2019 Dinner Only $49
Total Dinner Only ___________________
Golfers
$175 Total Golfers ______________________
Foursome
$700 Total Amount Enclosed $ _____________
I/we will not be able to attend but would like to make a gift in the amount of $_______________
PLEASE NOTE: Reservatons will only be held upon receipt of payment. Please make all checks payable to MIADA Return completed form with payment to MIADA P.O. Box 637 1 Harlan Drive Oxford, MA 01540 Questions: 508-499-3003 or email: heidimiada@gmail.com Please Call MIADA if you would like to pay via Credit Card WWW.MIADA.COM JULY/AUGUST 2019 DEALER NEWS 13
SOCIAL MEDIA | By Kathi Kruse
TOP SUCCESS OBJECTIVES & SOCIAL MEDIA METRICS
OPTIMIZE
YOUR
ROI
One of the best things about social media marketing is that it’s measurable. I’m still caught off guard when I hear some dealers don’t track their social media metrics or review their data. But I do understand, because so many dealers truly aren’t sure what metrics to track or what the data might indicate. Defining the right social media metrics is key to meeting dealership business objectives and makes it so much easier to measure ROI (return on investment). Two factors weigh heavily in computing ROI: costs and metrics. Costs are the investments required to meet dealership objectives. Many dealers don’t measure and analyze each cost associated with social media marketing: A ttention (there’s a reason it’s called “paying attention”) L abor/Human Resources Financial T raining O rganizational Development S ocial Technology A gencies and/or Consultants P aid Media (i.e. Facebook ads) E mployee Engagement Metrics are how you measure the result of your investments. One accurate measurement is worth a thousand expert opinions. Tracking the right social media metrics to determine ROI is challenging. With real-time data providing cues to re-work certain tactics, it’s crucial to designate someone whose job is to track and analyze. Restructure of the dealership’s organizational framework may be required. A marketing team’s comfort in working with data and analytics is critical. Tracking the right metrics is important but so is knowing what to do once you have the data, especially when things aren’t going as planned. Measuring metrics and analyzing results is formidable and you should take careful consideration. Sometimes a social media audit is called for. Due to the unique nature of the data, and the social aspect of the medium, it’s essential to isolate issues and determine true success. Achieving dealership objectives with social media requires experiential knowledge to make metrics meaningful. If you need guidance, seek out trusted advisors who can help you accurately measure and analyze your results. Tracking and auditing results is most beneficial when you know the right metrics to measure. Here are the top five dealership business objectives we encounter at Kruse Control,
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including the relevant social media metrics you’ll want to track. Retain Current Customers Reach. Reach is an important social metric for all business objectives. However, it’s far easier to sell to existing customers than it is to strangers. Engagement (comments, likes, shares, retweets, re-grams). Engagement is the kingpin of everything social. How are existing customers engaging with your content? Reviews. Customers do not consume in silence. What common words or themes are customers saying? Return visits from social media. How are you tracking visitors to your website? What tactics are you using to engage them on an ongoing basis? Engage New Potential Customers Increase in likes and followers. Is there a specific plan to increase your audience? Which platform, by how much and by when? Content. What types of content are getting most engagement? New opt-ins from social media. Are you offering valuable information at no-charge in exchange for contact info? Customer acquisition. How many, at what cost, over what period of time? Audience demographics. Are the people you’re reaching actually your target customers? Improve Customer Satisfaction Responsiveness to messages and reviews. Everyone likes to be heard. Responsiveness gives prospective customers a glimpse of how you handle concerns, issues and questions. Response time. Forty-two percent of social customers expect a response within 60 minutes. Is your store prepared to handle social media inquiries within the hour? Online reviews. What’s the company’s practice for building a successful review funnel? Negative feedback (reviews, hide posts, unlike page, unfollows). How often is it happening? How is this handled within the organization? Establish Earned Authority and Trust Traffic and time on your website from social media. “Social signals” let Google know your site is being talked about. Hopefully, there’s a live human managing your social channels to keep the engagement high. Links to your site from social media. When
social signals (traffic from social sites) turn into social shares, further value comes into play. People share good content and link to your site. Social media then becomes a huge win for SEO. Amplification (shares by others). This is evidence your content resonates. Sharing provides “social proof,” which is a psychological phenomenon where people assume the actions of others in an attempt to reflect correct behavior for a given situation. We view a behavior as more correct in a given situation to the degree we see others performing it. Opt-ins for “free helpful content.” One of the best ways to develop trust is to offer valuable tips/information at no charge in exchange for an email address. Have you explored this tactic? Have you considered a putting together a PDF with car buying tips? Video views. How much time did people spend viewing your videos (such as walkaround or “how-to” videos)? How many watched each video all the way through? Increase Sales Facebook ad spend vs results. Are you setting goals for Facebook ads? Does your vendor track these goals? How did each ad achieve its intended goal? Facebook ad relevance. How did your offer resonate with the intended audience? Organic vs paid engagement. Are your posts resonating with your audience before you pay to promote them? Growth of audience who visited your website from social. Which campaigns brought the most visitors? Leads. Are you tracking results using dedicated landing pages and lead forms? Conversions. How many sales converted from Facebook ads? Revenue generated. What is your monthly revenue earned from Facebook ads? Determining the costs and tracking the right social media metrics will provide the data to measure your actual return on investment. Use these recommendations to put optimal processes in place. Your marketing decisions will become better informed, your social media will be more successful and the puzzle pieces will finally fit together on social media ROI. 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.