THE OFFICIAL MAGA ZINE OF NE W YORK INDEPENDENT AU TO DE ALERS ASSOCIATION
DRIVING
FINDING GOOD CHEAP CARS PART 3: NEW TECHNOLOGY
|P A G E 6|
DALLAS, TEXAS Permit No. 2079
PAID
PRSRT Standard U.S. Postage S TAT E A F F I L I AT E
W W W.NEW YORKIADA.ORG
M AY/J U N E 2 019
FORCE
2019 MEMBER DISCOUNT BOOK 2 0 1 6 M E M B E R D I S C O U N T B O OK $5,000 IN AUCTION DISCOUNTS
2 0 1 6 M E M B E R D I S C OU N T B OO K
MAY/JUNE INSIDE
2019
05................ Make Phone Tag a Thing of the Past 06................................. Finding Good Cheap Cars 07.......................................3 Hurdles to VSC Sales 08............................... Dealer Insurance Program 10................................NIADA Government Report 14........How to Build a Better Dealership Website
$50 BUY FEE ONE PER MONTH
$5,000 IN AUCTION DISCOUNTS Long IsLand
Long IsLand
new Jersey
syracuse
BSC AMERICA, BEL AIR, MD – $50 OFF REGISTRATION BLOOMBERG AUTO AUCTION – (TWO) $50 OFF BUY FEE (TWO) $50 OFF SELL FEE
ADVERTISERS INDEX
BSC AMERICA, BEL AIR, MD – $50 OFF REGISTRATION BUFFALO AUTO AUCTION – $100 OFF BUY FEE / $100 OFF SELL FEE
GARDEN SP T Auto Auction
YO UR PR OF SP IT OT
GARDEN SPOT AUTO AUCTION – (FIVE) $50 OFF BUY FEE BUFFALO AUTO AUCTION – $100 OFF BUY FEE / $100 OFF SELL FEE
GARDEN SP T Auto Auction
YO UR PR OF SP IT OT
MANHEIM ALBANY – $100 OFF BUY/$50 $100 SELL GARDEN SPOT AUTO AUCTION – (FIVE) OFF BUY FEE
WHAT’S NEW
ALBANY – $100 OFFPOST BUY/ SALE $100 INSPECTION SELL MANHEIM MANHEIM NEW JERSEY – 1 FREE 7-DAY
LIVE WEBCAST OF WAAC M AY 1 0 O N N I A DA .T V Catch all the exciting competition from the World Auto Auctioneer Championship! Auctioneers and ringmen from across the country will vie for the top titles and you don’t want to miss it. Tune in to NIADA.tv on May 10 for the free live webcast.
MANHEIMNEWBURGH, NEW JERSEYNEW – 1 FREE INSPECTION MANHEIM YORK 7-DAY – $100POST OFF SALE BUY/ $50 SELL
MANHEIM NEWBURGH, NEW YORK – $100 OFF BUY/ $50 SELL MANHEIM NEW YORK SKYLINE – (TWO) $50 OFF BUY / (TWO) $50 OFF SELL
OFFICE
MANHEIM MANHEIM NEW YORKPENNSYLVANIA SKYLINE – (TWO) $50 OFF BUY / (TWO) – $100 BUY/ $100 SELL $50 OFF SELL
For information on how to become a member of NYIADA, please contact Paula Frendel at 855.694.2324 or nyiada.pfrendel@gmail.com
MANHEIM PENNSYLVANIA $100 BUY/ $100$50 SELL MANHEIM PHILADELPHIA – (TWO) $50 –OFF BUY / (TWO) OFF SELL
NIADA HEADQUARTERS NATIONAL INDEPENDENT AUTOMOBILE
DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838
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
syracuse
(TWO) $100 OFF BUY FEE / (TWO) $100 OFF SELL FEE – TOTAL $400 FROM EACH AUCTION = TOTAL $1,600 BLOOMBERG AUTO AUCTION – (TWO) $50 OFF BUY FEE (TWO) $50 OFF SELL FEE
AA of New England...........................................IFC Alliance Inspection Management....................... 5 Dezba Asset Recovery........................................ 7 Manheim............................................................. 11 NextGear Capital ............................................ 8-9 Protective ....................................................... IBC vAuto................................................... Back Cover
For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. The New York Driving Force is published bimonthly 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 New York Driving Force or NIADA. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2019 by NIADA Services, Inc.
new Jersey
(TWO) $100 OFF BUY FEE / (TWO) $100 OFF SELL FEE – TOTAL $400 FROM EACH AUCTION = TOTAL $1,600 $50 BUY FEE ONE PER MONTH
MANHEIM PHILADELPHIA – (TWO) $50 OFF BUY / (TWO) $50 OFF SELL ROCHESTER CENTRAL AUTO AUCTION – $200 OFF BUY FEE; $200 OFF SELL FEE; ENTRY FEE ($35)
ROCHESTER CENTRAL AUTO AUCTION – $200 OFF BUY FEE; $200 OFF SELL FEE; ENTRY FEE ($35) ROCHESTER SYRACUSE AUTO AUCTION – ONE FREE BUY / ONE FREE SELL NO LIMIT
ROCHESTER SYRACUSE AUTO AUCTION – ONE FREE BUY / ONE FREE SELL NO LIMIT STATE LINE AUTO AUCTION – 12 MONTHLY COUPONS FOR REGISTRATION
$5,000 in Auction Discounts! Buy and Sell Fees...SAME AS CASH! inMONTHLY Vendor Coupons! STATEPLUS...$4,000 LINE AUTO AUCTION – 12 COUPONS FOR REGISTRATION $5,000 in Auction Discounts! Buy and Sell Fees...SAME AS CASH! PLUS...$4,000 in Vendor Coupons!
For complete membership information please visit www.newyorkiada.org.
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MARKETING MATTERS
| By Christopher Leedom
MAKE PHONE TAG A THING OF THE PAST OPTIMIZE COMMUNICATION WITH SMS
How many of you are frustrated by the volume of voicemail – both left and received – during the average workday? Whether it is for sales, service or collections, your staff leaves dozens, if not hundreds, of voicemails every day. It has probably become one of the biggest drains of productivity and labor – though nevertheless necessary – until now. Do I have you scratching your head a bit? First, let me issue a challenge. Identify one employee in your dealership or finance company that interacts with your customer base on a daily basis – for instance, a salesperson, collector or service advisor. Next, identify 20 customers you need to communicate with that particular day. If you are a working with a collector, pick 20 accounts that just became delinquent. If you are in sales, pick 20 customers that need follow up. Take 10 of these customers and send them an SMS message initiating communication with them. Sales, service, or collections – it doesn’t matter. Call the other 10 customers, leaving a voicemail initiating communication if you don’t reach them. By the time you get done calling the 10 “phone call” customers, chances are 50 percent
of the SMS customers will have already texted you back! Why? Because 93 percent of SMS messages are read within 10 minutes and a return text is usually sent within 20 minutes. How does that compare to the voicemails? It’s no contest. You probably will connect with two or maybe three of the outbound phone calls and will likely leave seven or eight voicemails. I have observed this exercise with countless operations. Our organization has worked with thousands of dealers and finance companies over the past 20 years. When we started Textmaxx Pro four years ago, I could not have predicted the impact on productivity. We see it not just in the auto space, but across virtually every industry we serve. In today’s world everyone returns an SMS message well before returning a voicemail. There are countless studies that prove this. So how do you optimize your SMS messaging strategy? First, think of it the same as your phone system. You need a tool that is proprietary and resident to your business that will serve your SMS communication needs, and ensure compliance. I hear too many dealers say, “My employees are really good at texting – they use their
personal phones.” I cringe. Think about it, would you utilize your salesperson’s personal phone number when advertising on the web or in television commercials? Would you give each employee a copy of their entire CRM activity when they leave your dealership to work elsewhere? That is precisely what you are doing if you do not have a product that allows you to store, monitor and control all SMS activity. It doesn’t matter whether it is sales or collections. You need to retain and control those conversations for a host of reasons, not the least of which is compliance – but that is a topic for an entire article itself. If you want to eliminate – or at least greatly reduce – the wasted time and effort of phone tag, implement a well thought out customer contact strategy where SMS communication is your first form of communication. You will be amazed at the impact it will have on employee productivity. It is an incredibly effective way to communicate with your customers. In my opinion, it is even more effective in collections or service, where you already have a relationship with the customer. Studies show SMS messaging to be the preferred method of communication of most customers, across virtually every demographic. It is hands down the most efficient mode for just about every conversation. Chris Leedom is the CEO and founder of the Leedom Group. The Leedom Group includes Textmaxx Pro, a complete SMS messaging solution for small to medium businesses with a custom design for the automotive industry. You may reach Chris at chris@leedomgroup.com.
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MARKET PERSPECTIVE | By Doug Hadden
FINDING GOOD CHEAP CARS
PART
3:
NEW
COVER STORY
TECHNOLOGY
In the first installment of this three-part series, we looked at how to take advantage of upstream online auctions. Upstream is just a fancy way of saying “before the vehicle is shipped to physical auction.” We focused on OLOCs (One-Owner, Low-Mileage, Off-lease Cars) and learned how to acquire affordable cars your customers want, without having to go to a physical auction. In the second installment, we looked at buying real-time in multiple lanes, at multiple auctions, right from your desktop, laptop or phone! Since these articles, I have received a lot of great feedback and even trained some folks on how to buy cars live online – including easily accessible options like ADESA’s simulcast platform that allows dealers to bid virtually, in real time, on cars in the lane. One dealer said, “I may never go to a physical auction again.” Another dealer I worked with loves going to the physical auction. After training, he was standing in the auction lane bidding on cars as they drove through while also on his phone – bidding on cars at the same auction, at the same time, but in different lanes, and even checking proxy bids on cars at other auctions. Technology is opening new doors of opportunity for dealers, giving them a competitive edge like no other. This month we will look at new technology that is changing the way we buy and sell wholesale vehicles. When I owned my pre-owned lot many, many years ago, besides attending two local auctions every week, I spent every Monday morning stopping at Starbucks buying coffee and pastries I would take to my favorite used car manager who ran a large new car franchise. I usually arrived at the store as soon as the service department opened the front gates so I could look at and book out all the weekend trades before the
UCM arrived. I would list what I wanted to pay for each car and what it needed for reconditioning on my yellow pad, head to his office and wait. We would grind out prices and two or three hours later I would call some drivers and get my new inventory to reconditioning. Not only did I have to get up at the crack of dawn, pay too much for a couple of rundown cars to get the ones I wanted (the old “package deal”), but I also burnt half a day away from my lot. Needless to say, this wasn’t a very efficient use of my time or inventory dollars. Fast forward to last week. I’m sitting at lunch with a friend who owns a small preowned lot, talking about how hard it is to find good cheap cars. His phone gives off a chirp. He quickly taps his phone, scrolls through a couple of screens, pounds out some numbers on his phone calculator, taps his phone one more time and gets back to our conversation. What was he doing? He was bidding on a car that was traded in at a new car franchise less than two hours ago. That’s right, sitting at lunch bidding on fresh trades and in the time it took to eat his burger, he owned the car! There are a few companies in this stillgrowing, dealer-to-dealer digital auction space. I’m most familiar with ADESA’s sister company TradeRev, a mobile app that sends notifications to your phone as new car franchise dealers launch cars to a 45-minute on-demand, digital auction. You can view multiple photos, watch videos and even listen to the engine run. Settings allow you to customize your experience, enabling you to create alerts for only the types of cars you want – so you spend less time looking and more time buying. Think about the efficiencies this technology brings to the industry. With built-in artificial intelligence and
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machine learning, you can find the right car at the right price, in a transparent and fair process, all in about an hour. You can have funding, titling and transport pre-arranged in the app so when you win a car it quickly appears on your lot. And what about the seller? We know the longer you keep a car in stock the less gross you get – the dreaded “lot rot” is real. Even when you hit a home run on an aged unit, if you do the math on a profit-per-day basis, the ROI is weak at best. What would wholesaling a trade the same day it’s brought into inventory do for the average inventory turn time? It’s a win-win for both buyer and seller! The industry is changing, but so is the technology we use to run our operations. If you have not embraced buying cars upstream, live online from your PC, laptop or phone, or the newest app-driven one-hour, on-demand auction, you may want to rethink your business plan. I’m not saying you can’t continue doing what you’re doing now and be profitable. I’m saying there is technology out there that can and will help you be more efficient – which leads to higher profits with less effort. Mastering these new, high-tech systems and apps is so easy there is no reason not to give them a try. I’ll even help you get started. Email me at Doug.Hadden@ADESA.com and I will set up some time for training you on one or all of the new technologies discussed in these articles. Once you get comfortable using the new tech, not only will you be more efficient and profitable, you may also have time left over to do other things you haven’t been able to do, like spending more time with family and friends! Until next time – have fun and sell cars! Doug Hadden is executive director of dealer consulting services for ADESA Auctions Inc. He can be reached atDoug. Hadden@adesa.com.
ACCELERATE | By GWC Warranty
3 HURDLES TO VSC SALES
HOW
TO
CLEAR
THEM
The numbers are in. Consumers have spoken. There are three main reasons customers don’t protect themselves with service contract coverage. The good news is dealers can easily clear these hurdles with the right program in place. A study recently released by Pegasystems surveyed more than 1,000 consumers to understand whether or not they saw value in service contract coverage and what stops customers from purchasing a VSC with their vehicles. Overall, the study found 63 percent of customers do not have a service contract despite seeing the value in one. Why is this? Let’s dive into what stops customers from buying a VSC and how you can overcome those obstacles. Cost Thirty-five percent of customers say
they can’t afford a service contract. But when you compare the small increase in monthly payment to what a major repair could do to a tight monthly budget, it’s easy to see which scenario is easier to withstand. With so many used car buyers on tight monthly budgets, a service contract’s monthly investment can easily pay off in the long run. Not Thinking They Need One Thirty-two percent customers think they’ll never encounter the need for a service contract, but trends say otherwise. A simple question of how long the customer plans on owning the vehicle he or she is purchasing is just what you need to clear this hurdle. With the average length of ownership on the rise, chances are your customers will be in their vehicles for a long time. Used cars are inherently more likely to break down, especially as they approach
and surpass 100,000 miles, making it more likely than ever a customer will need a VSC at some point during his or her ownership. Lack of Availability at the Time of Purchase To solve for the 29 percent of customers who aren’t offered a VSC at the time of purchase, all you have to do is turn to the 300 percent rule. The first step is having a service contract provider that offers the product versatility – from both a vehicle and term perspective – that fits your inventory. Once that’s in place, it’s vital you present 100 percent of your products to 100 percent of your customers 100 percent of the time. You’ll never bat 1.000, but you’ll get better at your presentation as you continue to get real-world practice and you’ll inevitably see the results in your F&I profits.
AUCTION NEWS
IAA MAKES STRATEGIC INVESTMENTS
IAA LONG ISLAND EXPANDS
Insurance Auto Auctions, Inc., a business unit of KAR Auction Services, recently announced expansions at branches in six states – further investing in its future growth. The expansions have added more than 110 acres to IAA’s footprint in Alabama, Arkansas, Minnesota, New York, and Texas to address sellers’ logistical needs and provide increased inventory options for buyers. “By anticipating our current and new clients’ growing volume across the country, we continue to make strategic investments to meet their future needs and most importantly further enhance their auction experience,” said IAA CEO and president John Kett. “These expansions will allow us to marshal and store more inventory for our sellers and offer an expanded vehicle selection to our buyers – a win-win for all our customers.” IAA has made land investments in the following locations: IAA Huntsville (AL), IAA Little Rock (AR), IAA Minneapolis/St. Paul (MN), IAA Long Island (NY), and IAA Houston North (TX). Please check IAAI.com for hours of operation. WWW.NEWYORKIADA.ORG MAY/JUNE 2019 THE NEW YORK DRIVING FORCE 7
PRODUCTS & SERVICES
DEALER INSURANCE PROGRAM FOR NYIADA MEMBERS NYIADA
Inter Insurance Agency, Ltd. president Tim Derham, NYIADA executive director Paula Frendel, and NYIADA president Fred Donnelly announce the formation of Universal Casualty Risk Retention Group, the first captive association doing business as a risk retention group to be licensed in the state of Oklahoma. The entity with a principal address in Jericho, New York, provides loss control services and garage keepers’ liability, general liability, auto liability and mechanics errors and omissions insurance for franchised and non-franchised auto dealers and all businesses engaged in the automotive services industry in New York. To receive the benefits of the association an eligible business must become a member or associate member of the NYIADA.
MEMBER
Universal Casualty has experienced insurance underwriters and auto dealers serving on its board of directors and managing the association. NYIADA members are offered: •S uperior rates and coverage. We set the rates and tailor the coverage. •P re-Inspection. Every risk will be preinspected with a focus on: a) reducing slip and falls, b) securing the vehicle, and c) additional loss control and safety. •E mployee safety manuals. •R eviews for OSHA compliance. •F leet safety manual.
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BENEFIT
•C ontrol over the claims process. We hire the third party administrator. •C ommercial General Liability. •C ommercial Auto Liability. •N on-owned Auto Liability. •C ontingent Auto Liability. •M echanics Errors and Omissions. •T rick and Device/False Pretense Liability. •D ealers’ Errors and Omissions Liability. •G arage keepers’ Legal Liability. •O n Hook Liability. For further information please contact Celeste Jordan, Universal Casualty Risk Retention Group, at (631) 553-4872.
PRODUCTS & SERVICES
PARKING SOLUTION APP CONNECTS AUTO DEALERS AND PARKING
PARKING
SOLUTIONS
An innovative parking solutions app called Parkedit.Space recently debuted. This new app weds parking lots with vacant spaces to surmount drivers’ and auto dealers’ needs for parking. The innovative mobile app allows private individuals and businesses to find parking spaces around town swiftly through its uncluttered user interface. As a member of NYIADA, Parkedit.Space is excited to launch a partnership. “We are thrilled with the robust response that Parkedit.Space has received,” said founder and CEO Daniel Marzouk. “The concept allows those with extra space to monetize what they have, and those in need of space to quickly and easily reserve parking while saving time and money.” The app delivers accurate, convenient parking information to its users at tremendous speeds. NYIADA executive director Paula Frendel said, “Our dealers are constantly looking for ways to alleviate the stress of parking. Parking needs for dealers change daily. Parkedit.Space is a lifesaver for our dealers
AT
THE
SPEED
OF
LIGHT
and their parking needs.” Auto dealers are regularly at one extreme or the other – with either too much underutilized parking or none – and struggle to locate legal places to park. The Parkedit. Space app connects these parties in a seamless, secure way. About Parkedit.Space Parkedit.Space was founded in 2017 with a vision to alleviate the pressure and stress related to parking for homeowners and businesses. The company’s vision is to provide parking space when people need it. The app is optimized for low-battery consumption and prompt delivery of relevant parking information to its user. The mobile app can be downloaded from the Apple store. For more information, please visit www. parkedit.space. About NYIADA NYIADA is a not-for-profit organization representing the independent motor
vehicle industry. They promote, educate and advance the independent motor vehicle dealer by accumulating, processing and disseminating information relative to the motor vehicle industry. NYIADA also develops, compiles and provides information to the consumer that will promote a better understanding of the independent motor vehicle dealers’ place in the economy. In addition, they provide relevant information to regulatory and lawmaking bodies so they may have a better understanding of the possible effects of proposed laws, rules and regulations on the consumer and the motor vehicle industry. NYIADA assists in the promotion and organization of local, state or regional independent motor vehicle dealer associations and anticipating, recognizing and responding to current and future issues and needs of the independent motor vehicle industry and the consumer. For more information, please visit www. newyorkiada.org.
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WASHINGTON UPDATE | By Shaun Petersen
GOVERNMENT REPORT 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.
LEGISLATIVE Privacy a priority: Privacy issues have become a high priority on Capitol Hill in the wake of a recent report from the Government Accountability Office that recommended Congress consider enacting a federal Internet privacy law. The GAO found no comprehensive U.S. Internet privacy law governs private companies’ collection, use or sale of users’ data and said Congress should take action to protect consumers. Andrew Smith, director of the Federal Trade Commission’s Bureau of Consumer Protection, testified last month before the House Oversight and Reform Committee’s Subcommittee on Economic and Consumer Policy, describing the FTC’s role in overseeing the data security practices of credit reporting agencies and enforcing data security laws. Those laws include the FTC Act, which prohibits unfair or deceptive acts or practices, the Fair Credit Reporting Act, which requires CRAs to provide consumer reports only to entities that have a permissible purpose for receiving them, and the Gramm-LeachBliley Act, which requires CRAs and other institutions to safeguard nonpublic personal information. Smith testified that the FTC favors comprehensive data security legislation that would give it additional tools such as civil penalty authority, jurisdiction over common carriers and nonprofits, and targeted rulemaking authority. Small business advocate: On March 27, the Senate Committee on Small Business and Entrepreneurship unanimously approved the nomination of David C. Tryon as chief counsel for advocacy of the Small Business Administration. If approved by the full Senate, Tryon will be responsible for educating lawmakers and regulators as an advocate for small business in the federal government’s agencies and rulemaking processes. NIADA was among 30 small business organizations that signed a letter sent to committee chairman Marco Rubio (R-Fla.) and committee members in support of Tryon’s nomination. The Small Business Administration is an important ally to NIADA and independent dealerships within the federal government. SBA has participated in the NIADA National Policy Conference and has worked with NIADA on a number of issues relevant to dealers. With Tryon in the advocate role, SBA will be better positioned to advance the interests of independent dealers and small businesses.
David C. Tryon
REGULATORY On March 7, the Department of Labor issued a notice of proposed rulemaking that would make more than a million more American workers eligible for overtime. The new rule would increase the salary threshold for employees to be exempt from overtime requirements by almost $12,000 per year, to $35,308 per year ($679 per week). Currently, employees with a salary of less than $23,660 per year ($455 per week) must be paid overtime if they work more than 40 hours per week, while workers making at least that salary level can be eligible for overtime based on their job duties. The new rule is intended to update the threshold – last set in 2004 – using current wage data projected to Jan. 1, 2020. DOL is seeking public comment on the rule, and specifically on its proposal calling for periodic reviews to update the salary threshold. DOL said it developed the proposal with extensive public input from six in-person listening sessions held around the nation and more than 200,000 comments as part of a request for information in 2017. The proposed rule maintains the current rule’s overtime protection for police officers, firefighters, paramedics and nurses, as well as non-management productionline employees and non-management employees in maintenance, construction and similar occupations. The proposal does not include automatic adjustments to the salary threshold. NIADA is reviewing the details of the proposal and will submit appropriate comments. We encourage dealers to consider commenting as well. For more information, visit www.dol.gov/ whd/overtime2019. Comments about the proposed rule can be submitted at www. regulations.gov, in the rulemaking docket RIN 1235-AA20.
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PAC NIADA-PAC hosted Rep. Patrick McHenry (R-N.C.) at a business roundtable April 25 at Big Tex Auto Mart in Dallas. A contingent of about 20 dealers and association leaders gave Rep. McHenry a tour of the dealership, explaining how the used car business works, the services it provides and the obstacles faced by independent dealers every day, and discussed many of the issues currently being considered by Congress that impact the industry. McHenry is the ranking Republican on the House Financial Services Committee, whose jurisdiction includes oversight of the Consumer Financial Protection Bureau. NIADA and our PAC encourage association members 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. Erika and Robert Blankenship
GRASS ROOTS Texas IADA is supporting a bill that has been introduced in the state legislature that would eliminate a form that limits a customer’s choice of where to title a vehicle and give dealers the authority to transfer the vehicle’s title in any of the state’s counties. As part of TIADA’s lobbying efforts, Erika Blankenship testified before the Texas House’s Transportation Committee in support of the bill. Blankenship and her husband Robert are owners of RLB Texas Auto Center in Austin – winner of NIADA’s National Quality Dealer award in 2017. She serves as chair of TIADA’s legislative committee and is a member of the NIADA legislative and regulatory affairs committee. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.
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ONLINE MARKETING
| By Adam Tobias
HOW TO BUILD A BETTER DEALERSHIP WEBSITE
3
STEPS
In the increasingly competitive car dealership industry, brand loyalty is more important than ever. It’s also harder than ever to build. Cutting through the noise requires a clear message and focus on the customer experience. Standing out and building a loyal customer base may seem impossible. But small and mid-sized dealerships around the country are punching back and delivering amazing experiences that win lifetime customers. Brand loyalty is still possible for dealerships to attain. And when they do, the benefits are incalculable.
Element 1: Value Proposition Oli Gardner is a master of building great websites. As co-founder of Unbounce, Oli spends his days thinking about and testing how websites can convert more users into customers. In a recent podcast, Oli discussed dealership websites and the importance of clearly communicating your value proposition to your customers: “If you can’t communicate [your value proposition] quickly, your competitor will,” said Oli. “If you can’t communicate quickly, your competitor will.”
EXAMPLE: A
A dealer’s website is their first impression with a potential customer. That’s where our brand loyalty journey begins. The Purpose of Every Dealership Website Dealership websites have one job: Get customers to visit the dealership. Car buyers today spend over 60 percent of their time conducting research online and visit only 1.2 dealerships on average. If your website doesn’t convince a buyer to visit your dealership, you have lost a deal, and potentially a lifetime customer. The problem is most dealers try to do too much with their website. Instead of focusing on their sole job – getting customers into the dealership – dealers load their sites with financial services, their life story, and vehicles that customers don’t want to see. For this reason, most dealership websites are hard to navigate. The customer doesn’t know what to do, so they leave your site and go on to the next one. The best dealership websites – those that effectively drive customers to the dealership – show customers only the information they need to know. Everything else is a distraction. IMPROVING YOUR WEBSITE IN 3 STEPS Here are three elements that matter most for your website. By focusing on these three elements, you can cut out the junk that distracts customers and turns them away.
“Amber and the team were extremely helpful. No pressure and they were attentive to our needs. Great experience. We will definitely be back for our next purchase. Amber answered all our questions, even met us on her day off and followed up the next day via text to ensure we were happy. Financing was quick and painless. The whole process was under two hours.” Reviews that seem over-the-top, or even fake, can do more harm than good. Dealerships should encourage customers to leave honest reviews. Never create fake testimonials or encourage customers to write
EXAMPLE: B
Oli said you have less than five seconds to make your value proposition clear to visitors. If you don’t, they will move on to the next site. When a customer first visits your website, they have one question on their mind: What can you do for me? The answer to that question is your value proposition. Dealerships should put their value proposition at the top of their homepage. Remove other messages that might distract from it, including financing deals, weekend sales, and messages from the dealer. Most dealers struggle to do this, but when they do, the difference is clear. The dealership website in “Example A” is easy to read and has a clear value proposition: “Family owned for 35 years. 5 minute approvals.” Your value proposition is a signal to your target customer they are in the right place. Remove clutter from the homepage so your most important message stands out. Element 2: Testimonials/Social Proof Customers are always on the lookout for scams and bad companies. They want to see proof you’ve made customers happy in the past. Testimonials are the best way to put a wary customer’s mind at ease. Testimonials should be honest, authentic, believable and relatable. Here’s an example of an excellent testimonial for a dealership in Oregon:
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“favorable” reviews. People can sniff out inauthenticity a mile away. They will steer clear of your dealership and find another. Element 3: Call to Action Button Finally, your website needs a call to action: a clearly-defined next step for customers to take. Most websites look like “Example B.” This homepage has at least 10 different calls to action, with everything from “Shop inventory” to “Claim your Offer!” With so many elements vying for your customer’s attention, the action they’re most likely to take is leaving your site. When it comes to CTAs, clarity is king. Your homepage should have no more than three “actions” for customers to take. Ideally, your website offers a single CTA. Brand loyalty starts with the dealership website. If you promise an excellent car-buying experience, make sure your website provides an excellent experience, too. Dealership websites should be clear, trustworthy, and easy to navigate. Focus on the most important elements of your site and remove the clutter. Dealers who do this will be best positioned to build brand loyalty and earn lifetime customers. Adam Tobias is the co-founder and COO of Dealercue, which provides dealerships with real-time, intelligent, market-driven vehicle appraisal, pricing, inventory management, and sourcing solutions. He can be reached at adam@dealercue.com.