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DEALER NEWS

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R E P R E S E N T I N G A L L A U T O, T R U C K , TRAILER, RV AND POWER SPORT DE ALERS OF OREGON

THE OFFICIAL MAGA ZINE OF OREGON IADA J U N E 2 0 17

ASSOCIATION NEWS

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WHAT’S NEW

Autotrader.com 866-836-1455 Used Cars.Com by Dealix 650-599-5616 Cars.com James Lynch 312-601-5052 Carsforsale.com Grant Lockner 605-306-3492 Interactive financial Marketing Group Travis Weisieder 804-248-0892

06........................................................................WAAC Recap 08................................................. NIADA Government Report 10....................Beat Back Used Vehicle Margin Compression 13.....................................Seize the Leads You Wish You Had 14...........Facebook Marketing Key Performance Indicators 16............................Where Non-Compliance Hurts the Most

NIADA.TV

Who is the latest world auto auctioneer champion? Watch the recap of the World Auto Auctioneer Championship, held at Manheim Pennsylvania, on NIADA.tv and find out!

ADVERTISER’S INDEX

ADESA .....................................................................................7 BMW Group Direct.................................................................. 9 DAA Northwest/Seattle.......................................................IFC Lobel Financial........................................................................ 3 Manheim................................................................................ 11 Manheim Portland................................................................. BC NextGear Capital................................................................... 10 Protective................................................................................13 VAuto ............................................................................... 5, IBC

OFFICE

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DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 OIADA Dealer News is published 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 6006-5203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of OIADA Dealer News 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 © 2017 by NIADA Services, Inc. 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

ADVERTISING /MARKETING

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Byrd Cabrera LLP Robert (Scott) Byrd 310-365-1954 Auto Parts AutoZone, Inc. Daniel Narvaez 971-218-2300 AutoZone Inc Ray Curry 503-964-9420 BOND & INSURANCE

Hecht & Hecht Insurance Agency Larry Hecht 503-542-1130 Shepard & Shepard Business Solutions Todd Shepard 1-855-396-0488 #8 Kelly Martin Insurance Agency Kelly Martin 503-625-2615

DEALER AUCTION

Manheim Seattle Auto Auction Ray Priest 206-762-1600 Manheim Portland Auto Auction Alex Fraser 503-286-3000 ADESA Seattle Auto Auction Mark Dumbler 253-735-1600 DAA Seattle Dave Blake 253-737-2200 United Vehicle Auctions Lori Jacoby 503-380-1927 ADESA Northwest Auto Auction Mark Melton 541-689-3901 ADESA Portland Auto Auction Jerry Hinton 503-492-9200 Crosspoint NW Dealer Auction Brian Hardy 503-594-2800 DAA Northwest (Dealers Auto Auction) Mitzi VanVoorhis 509-244-4500 Car Max Sean McDonald 804-747-0422 DEALER SOFTWARE

Frazer Computing Inc Jake Morley 888-963-5369 Motor Vehicle Software Vitu John Brueggeman 546-270-6699 FINANCING

Credit Acceptance John Bragg 360-980-2214

Lobel Financial David Lobel 714-816-1301 Oregon Auto Finance Gary Veum 541-868-0472 The Equitable Finance Co. Brandon Fox 503-808-7939 Pac West Credit LLC John Kiefer 541-868-2595 United Finance Todd May 503-238-6488 Oregon Community Credit Union Rich Black 541-681-6311 Nationwide Insurance Mark Tischer 503-339-4165 Credit Concepts Inc Jason Moon 541-342-8545 Veros Credit John Pierce 714-415-6125 x21131 Reliable Credit Associations David Marx 503-462-3022 Ted Investment LLC Tom Garza 503-213-1109 FLOORPLAN

Lobel Financial David Lobel 714-816-1301 NextGear Robert Torbet 503-358-3911

Floorplan Xpress Josh Chandler 503-621-9260 Auto Cap Services (ACS) Michael Smith 800-800-6494 Online Review Management Podium Kaylie Smart 801-376-0677 Public Auction Woodburn Auto Auction Steve Morin 503-981-8185 Petersen Auction Group of Oregon Curt & Susan Davis 541-689-6824 SECURITY

Pro-Vigil Kris Brackin 210-858-1105 SERVICE CONTRACTS

AUL Corporation Jacqueline Swank 800-826-3207 Elite Warranty, Inc Al Ham 503-530-0912 Automotive Business Developers Shannon Meany 541-944-9186 Benchmark Dealer Services Jacob Bangert 360-834-3333 Protective Asset Dylan Doran 818-836-1455

ASSOCIATION NEWS

WHOLESALE DEALER OFFICE SPACE FOR RENT Contact OIADA for Great Location

Wholesale dealers, are you looking for an office location? Well, look no further than OIADA. We currently have space for up to four true wholesale dealers for rent. This is a perfect location, just one block off of I-5, exit 286, in Wilsonville. Just think how easy it would be to have OIADA so close to assist you with questions, ethics, forms and education. We will provide you with office space, a desk and a chair as well as access to copier, printer, fax, scanner and filing cabinet. Contact OIADA for more information at 503-362-6839.

BOARD OF DIRECTORS

OIADA / June 2017

PRESIDENT Siamak Lotfi

1ST VICE PRESIDENT Gary Brooks

EXECUTIVE VICE PRESIDENT Jim Weaver

SECRETARY/ TREASURER Salvador Alvarez Herrera Zamora Auto Sales

CHAIRMAN OF THE BOARD Gary Sargent

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AUCTION NEWS

A TRIPLE CROWN Andy White Completes His Set of Major Titles With a Victory at the 2017 World Auto Auctioneers Championship

Andy White has now officially done it all as an auctioneer. White joined an ultra-exclusive club when he claimed the top honor at the 2017 World Auto Auctioneers Championship on May 12 at Manheim Pennsylvania. With that world title, White, from Ashland, Ohio, joined Jeff Stokes as the only auctioneers to win all three of the industry’s major competitions. Last year, White won the World Livestock Auctioneer Championship, and he won the International Auctioneer Championship in 2013. Stokes won his WAAC championship in 1993. “My wife Megan and I have got three beautiful boys at home,” White said as he accepted his trophy and the $5,000 prize. “When I started to chase this, I said, ‘You know what? I want a ring for every one of my boys.’ And I did it.” White said he was inspired by the quality of the competition, which included more than 100 competitors in the auctioneer, ringman and team categories. “Auctioneering is a team sport and I am so fortunate to be surrounded by the greatest group of professionals our industry has to offer,” he said. “One of the lessons my parents instilled in me was you’re only as good as the people you surround yourself with. And we’ve done that. It was an emotional roller coaster today.” Dallas Massey of Starkville, Miss., was named the world champion ringman, while auctioneer Woody Woodruff of Shelbyville, Tenn., and ringman Ben Gunter of South Side, Ala., triumphed in the team competition. It was an emotional victory for Woodruff, who has been working with Gunter – the 2000 world champion ringman – for 15 years. “He’s like a second dad to me,” Woodruff said, his voice as he stood next to Gunter on the awards stand. “When I was 21 my dad went to a car sale with me, and … he told Ben, ‘I want you to take him on the road and turn him into an auctioneer.’ “To stand here with this guy, you have no idea how much it means. To do this with him is a huge, huge honor.”

OIADA / June 2017

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WASHINGTON UPDATE BY SHAUN PETERSEN

NIADA GOVERNMENT REPORT Latest Government Issues and Activity NIADA is your voice in Washington D.C., advocating for independent dealers, the used vehicle industry and small business. Here’s an update on the latest news and NIADA efforts regarding legislative, regulatory, PAC and grass roots activities. Legislative The Financial CHOICE Act – the Republican replacement for the Dodd-Frank law that includes major changes to the Consumer Financial Protection Bureau – made it through the House Financial Services Committee on May 4 and has been sent on for consideration by the full House of Representatives. The current version of the bill, introduced April 26 by Rep. Jeb Hensarling (R-Texas) with seven cosponsors, would eliminate bailouts of so-called “too big to fail” banks, exempt well-capitalized financial institutions and community banks from certain regulations and reduce regulations overall, and increase penalties for financial fraud. Its biggest impact, though, would be felt by the CFPB, which would be drastically overhauled. To begin with, its name would be changed to the Consumer Law Enforcement Agency, and it would be funded through the regular congressional appropriations process – currently it’s funded automatically through the Federal Reserve – as well as subject to congressional oversight and expanded judicial review. The agency would lose its supervisory authority over financial institutions and its enforcement authority regarding unfair, deceptive and abusive acts and practices, among other restrictions to its authority. The bill would allow the CLEA’s director to be fired at will by the President, rather than only for cause as is currently the case. The bill would also void the CFPB’s controversial 2013 guidance on indirect auto lending, which claimed dealer discretion on interest rates creates a “significant risk” of unintentional disparate impact discrimination. Regulatory In April, the New York attorney general’s office announced settlement agreements with 104 auto dealerships in the state that were alleged to have sold vehicles with open recalls without disclosing those recalls. Attorney General Eric Schneiderman said in a statement the charges were based on checking dealership ads and identifying dealers who advertised vehicles with unrepaired recalls.

OIADA / June 2017

According to the settlements, each dealer will pay a $1,000 fine and will be required to notify consumers of any existing and unrepaired recalls on their vehicles. Other terms include: •D ealers who advertise used vehicles online must include information to allow consumers to check the advertised vehicles for recalls, including NHTSA’s safercar.gov website. •A ds in print or other media must also disclose if the vehicle is subject to a safety recall. •A decal must be placed in the window of used cars with information allowing consumers to check their recall status, including safercar.gov and NHTSA’s mobile app. •T wo days prior to any sale, dealers must provide consumers with a copy of any recalled vehicle’s NHTSA recall status report and obtain a written acknowledgment from the consumer. •D ealers must send notices to customers who purchased vehicles from January 2016 to present that have safety recalls that are still unrepaired. Franchise dealers must also cover up to five days of a loaner car for consumers if their vehicle requires repairs that will take longer than one day. PAC In early May, our colleagues at the National Auto Auction Association held their annual Day on the Hill. Like the NIADA-PAC during the National Leadership Conference and Legislative Summit, NAAA’s event included a fundraiser for key members of Congress – Sen. Mike Crapo (R-Idaho) and Rep. Bob Latta (R-Ohio). In conjunction with those fundraisers, the NIADA-PAC fund contributed $2,495 to each of their campaigns. Sen. Crapo is the new chairman of the Senate Banking Committee, the committee of jurisdiction for all things related to the CFPB. He has been a proponent of reforming the CFPB and any bill proposing to make changes to the bureau will go through his committee. Rep. Latta is chairman of the House Energy and Commerce Committee’s Subcommittee on Consumer Protection. That subcommittee has jurisdiction over motor vehicle safety and recalls. Any recall-related legislation or initiatives goes through Chairman Latta’s subcommittee before going on to the main committee. The NIADA government affairs team has met with Sen. Crapo’s and Rep. Latta’s staffs on those important issues. The PAC fund also contributed $495 to Nevada Attorney General Adam Laxalt (R). Laxalt has been a friend of NIADA through the Republican Attorneys General Association. We reached out to him as part of the new battle we are facing against Nevada’s proposed overregulation of payment assurance devices. He is a strong ally of small businesses and independent dealers.

NIADA IMMEDIATELY MADE ATTEMPTS TO CONTACT THE BILL’S SPONSOR TO BEGIN DISCUSSIONS ABOUT THE BILL AND TO EDUCATE HIM ABOUT THE DEVICES AND THEIR USE. Grass Roots In February, NIADA got wind of a bill about to be introduced in the Nevada legislature that would ban payment assurance devices. NIADA immediately made attempts to contact the bill’s sponsor to begin discussions about the bill and to educate him about the devices and their use. Notwithstanding those attempts, the bill was formally introduced in Nevada’s Senate Commerce Committee. NIADA rallied the troops and coordinated a coalition of dealers, finance companies and device manufacturers – including PassTime and Spireon – to fight the legislation. I flew to Las Vegas to testify against the bill. After NIADA’s opposition testimony, the Senate committee agreed to amend the bill from an outright ban to one that would place significant regulations on the devices. But many of the requirements in the amended bill, which passed the Senate, are unworkable for creditors using the devices. The bill has now moved to the Nevada Assembly and has been assigned to the Assembly Transportation Committee. NIADA, working with its coalition and a retained lobbyist, met with members of that committee and other key Assembly leaders to oppose the bill’s provisions. I also appeared before the committee to testify against the bill. Our objective is for the Assembly to agree to our proposed changes or kill the bill entirely. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.

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MANAGEMENT MATTERS BY DALE POLLAK

BEAT BACK USED VEHICLE MARGIN COMPRESSION 3 Best Practices

It’s like a leaky faucet. Drip by drip, the retail profit you make on used vehicles goes down the drain. But unlike a leaky faucet, the fix for margin compression in used vehicles isn’t as easy as calling a plumber. That’s because, more and more, ongoing margin compression in used vehicles is the nature of the business. According to the National Automobile Dealers Association, used vehicle gross profits as a percentage of transaction prices has been shrinking, bit by bit, for nearly the past decade. NADA data shows that in 2009 used vehicle gross profits ran 14.3 percent of average vehicle transaction prices, compared to 12.1 percent in 2016. This diminished return may not seem like much, but it’s a significant difference when you consider the average used vehicle transaction price has grown by nearly $4,700 – from $15,210 in 2009 to $19,886 in 2016, a 31 percent increase. The challenge, and opportunity, for dealers rests in how you contend with margin compression. The fix isn’t as simple as selling more used vehicles. In a margin-compressed environment, you have to sell more used vehicles more efficiently to maximize an ever-smaller return on an ever-larger investment. To achieve a higher level of operational efficiency and sales, I recommend the following best practices for dealers. A Consistent Sourcing Pipeline You can’t retail vehicles you don’t have in stock. More and more, dealers are employing full time, technology-enabled sourcing specialists to maintain a steady supply of incoming auction inventory. The specialists free up managers who previously found themselves lacking sufficient attention and time to selectively acquire the right auction vehicles, with specific cost to market and market days supply metrics, to fill inventory needs. It’s not uncommon for these time-addled managers to just buy cars because their inefficient sourcing methods lead to frustration and less-than-optimal decisions. Similarly, the specialists give managers more time to oversee appraisals and maximize every tradein opportunity. Faster Retail-Ready Turnaround It’s still fairly common for used vehicles to spend five, seven or even 10 days in service before they are reconditioned, detailed, photographed and posted online. A Midwest Chevrolet dealer found that by trimming three

OIADA / June 2017

days off his dealership’s eight-day retailready average, he realized an additional $300,000 in front-end gross profits. The dealer is now working to consistently meet a 36-hour turnaround, and anticipates the improvement will generate an additional $200,000 in front-end gross. The example highlights the “time is money” axiom of retailing vehicles in today’s margin-compressed market. Top-performing dealers set aggressive benchmarks of 24 hours or less to complete detail and reconditioning work – a goal that typically requires automotive RO approvals when repair estimates fall within expected ranges, and dedicated recon teams in service. Reduced Inventory Age I recommend dealers strive to retail at least 55 percent of their used vehicle inventory in less than 30 days. Dealers who achieve this objective, which requires a Velocity-oriented pricing strategy, are doing all they can to minimize margin compression and take advantage of retailing vehicles when they are fresh and stand to deliver maximum gross profit. To understand why reducing the days to sale of used vehicles is so important, I encourage dealers to do a quick study of the gross profits they achieve on vehicles retailed in less than 30 days compared to vehicles retailed after 30 days. In most cases, the results show the average front-end gross profit declines by at least 50 percent once vehicles cross the 30-day line. If you segment vehicles retailed after 45 days, it’s not uncommon to see a roughly 50/50 split between vehicles that make a little money and those that lose a lot more. This analysis often leads dealers to agree with my assessment that any vehicle you don’t retail within 45 days represents a failure of management. For some reason, right or wrong, someone turned their back on these units when they should have been working harder to sell them. None of these best practices represents an easy fix. Each requires dealers, managers and team members to think and do things differently, sometimes in a manner that’s contrary to what they’ve been taught. But dealers who get past these hurdles find their reward. It comes in the form of improved used vehicle performance and profitability in an era where neither can be taken for granted. Dale Pollak is founder of vAuto and has published several books on his Velocity Method of Management.

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OIADA CONTINUING EDUCATION PROGRAM sponsored by onstar.com / trialon

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“TOP 10 FACEBOOK MARKETING KPI’S” True/False: A solid social media strategy plan saves time, money and precious resources. True/False: Thirty-three percent of customers prefer to contact brands using social media rather than the telephone. What should you define within your social media strategy? a) Goals you want to reach. b) A roadmap of how you’ll achieve goals. c) Definitive metrics. d) All of the above. “Beat Back Used Vehicle Margin Compression” True/False: It’s still fairly common for used vehicles to spend five, seven or even 10 days in service before they are reconditioned, detailed, photographed and posted online. Which of the following is a best practice to achieve a higher level of operational efficiency and sales? a) A consistent sourcing pipeline. b) Reduced inventory age. c) Faster retail-ready turnaround. d) All of the above. “Seize the Leads You Wish You Had” True/False: To generate leads, you need to pay a premium price for such services. True/False: If you like selling longer-term service contracts, knowing which customers are about to run out of coverage gives you a perfect reason to give them a call. I certify to OIADA that I have personally read these articles in The Oregon Dealer News Magazine for JUNE 2017. STOP!! Before you sign and send this form, make sure you have answered and completed all the quiz questions to receive Continued Education Credits.

My Name ____________________________________________________________ ____________________________________________________________________ Dealership Name ______________________________________________________ Dealership # __________________________________________________________ Dealer License Expiration Date: (Month)_____________________________________ (Year)________________ Signed: _________________________________________ Date _________________________________________________________________

FAX TO: 503-364-7331 MAIL TO OIADA at 9150 SW Pioneer Ct Ste H, Wilsonville, OR 97070

OIADA / June 2017

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ACCELERATE

BYGWC WARRANTY

SEIZE THE LEADS YOU WISH YOU HAD Generate Your Own Leads

As a dealer you’ll search high and low for the next great source of leads. At times, you might even pay for services that cut into your profits. But what if you could generate new, repeat and referral business all on your own? It may seem like a daunting task, but you have everything you need on your computer or stashed away in a filing cabinet – it’s your own network of past customers. If you’re looking to generate your own leads and save the cost of an outside vendor, nothing is more important than an up to date rolodex. It starts with gathering contact information up front and maintaining regular communication to gather any updates. This way, you never lose touch with satisfied customers and simultaneously open a potential window into their wide networks. A BrightLocal survey found consumers find word of mouth referrals to be just as reliable as online reviews, so maintaining constant contact with customers will keep you front of mind as they encounter others in the market for a vehicle.

If you make getting accurate contact information a habit, you can chase lead sources that have seemed like a distant dream for far too long. Expired Vehicle Service Contracts If you like selling longer-term service contracts, knowing which customers are about to run out of coverage gives you a perfect reason to give them a call. You can use the expired contract as a segue to bring them in to browse for a new vehicle. If they’re not interested, a VSC renewal opportunity could bring in some revenue as well. You can build a process to find these customers on your own, or your VSC provider may be able to alert you to these opportunities. GWC Warranty elite dealers get free access to the elite lead generator, which puts this list of customers just a click away. Regular Email Communication and Social Activity You’d be surprised by the value of staying front of mind with customers. Regular email newsletters or simple timely messages can help your dealership stay on the tip of every customer’s tongue. Even if a customer who comes across your content in an email or on social media isn’t in the market for a vehicle, they may have just spoken with a friend or family member who is. Before you know it, your phone will ring with referral customers who heard about you from a past customer

who just so happened to read your email the week before. Ask for Referrals Sounds simple enough, right? At the end of a transaction or service visit, don’t be afraid to ask if someone a customer knows might be in the market for a new vehicle. The BrightLocal survey mentioned earlier also discovered that seven of 10 consumers will leave a review if they were only asked. The same concept can be applied to referrals. Just a simple ask can go a long way, not to mention if you build promotions and discounts around referring friends who go on a test drive or purchase a vehicle.

MARKET WATCH

BY AUTO REMARKETING

CAR DESCRIPTION WORDS MOST ENTICING TO KEY DEMOGRAPHICS New Research on Key Words

Particular car shoppers respond better or worse to different words when debating which car to buy, according to new research recently released by CDK Global. The company’s latest edition in its Language of Closers series provides demographic-specific intel valuable to dealers seeking out ways to most effectively describe inventory on their vehicle description pages. “Our research examined the words that would eventually lead buyers of different demographics to leave a review website and head to a dealership site,” said CDK Global lead data scientist Jason Kessler. “In our most recent analysis, we were able to pinpoint specific words that shed valuable light on what vehicle traits matter most to women, Generation-X consumers, recent college graduates, and parents.” CDK found a number of words that resonate with multiple demographics heavily. For example, the research revealed mentioning the word “power” attracted several groups. CDK suggested it helps illustrate the experience of driving a vehicle in a relatable way.

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Conversely, certain words fell flat and failed to lead prospective buyers to a dealership site. Women responded negatively to “bigger,” Generation-Xers would rather read “performance” over “design” and most parents felt that both “sound” and “tech” were low priorities compared to others. Below is a list of the top and low performing words associated with four demographics that CDK highlighted. WOMEN Top: drive, power, trip, comfortable, luxury. Low: bought, transmission, owned, bigger, cargo. GEN-X Top: truck, power, luxury, package, performance. Low: back, seat, design, built, difference. COLLEGE GRADS Top: buy, work, truck, power, highway. Low: company, designed, inside, warranty, light. PARENTS Top: truck, leased, row, nice, purchase. Low: sounds, buying, control, tech, company. “As a leading provider of websites and digital advertising for dealers and OEMs, we are always looking for the best ways to help our customers bring the right buyers into their dealership. By making subtle changes to the language used on vehicle description pages, dealers can help customers easily identify cars that they both connect with and fit their lifestyle needs,” Kessler said. “Ultimately, these changes will prime both dealers and customers for success.”

June 2017 / OIADA

SOCIAL MEDIA BY KATHI KRUSE

TOP 10 FACEBOOK

MARKETING KPI’S Key Performance Indicators

Facebook marketing done right communicates your store’s core message and personality, attracts and engages your target customers, and converts fans into customers. Too often dealers jump onto Facebook without a plan or clear idea of what success really means for them. Most of us have experienced how planning improves our endeavors, and marketing is no exception. A solid social media strategy plan saves time, money and precious resources. It also puts the company in touch with target customers on a more meaningful level. Time spent on strategy planning is evident in the results. “Tactics without strategy is the noise before defeat.” - Sun Tzu In my everyday travels, I see a lot of dealers using the “trial and error” method of Facebook marketing. Example: “Let’s post this random picture of a vehicle for sale so everyone will see how fantastic it is!” The number one reason they use this tactic is because they’ve seen another dealer do it. Random pictures of cars have been posted by dealers throughout the country for years. Isn’t it time to hold up on that and do something unique? There’s nothing about benign vehicle photos and “sales jargon”that promises value to the customer. Now, if there was a story behind the image that told of a fantastic customer experience, then telling that story would bring you a big step closer to a quality post. Otherwise, it’s just noise, and noise is something we can all do with less of these days. The ability to recognize the difference between a random, useless post and a quality piece of content is rooted in strategy. Specific goals and their corresponding strategies make Facebook marketing click. What you post is governed by why you post. Defined within your social media strategy plan should be: • Goals you want to reach. • A timeframe to reach those goals. • A roadmap of how you’ll achieve goals. • Definitive metrics. Look for success markers along your Facebook marketing journey. Just like the maps app on your phone shows the best route to take toward your destination, key performance indicators guide you to what success looks like for your Facebook marketing. KPI’s give you a solid foundation from which to measure results.

OIADA / June 2017

TOP 10 FACEBOOK MARKETING KPI’S Every social media strategy plan should outline the metrics you’ll analyze for best results. These are Kruse Control’s top 10 Key Performance Indicators we use with our clients: 1. Audience Growth • How quickly are your fans growing? • What are you doing to increase growth? • Are you setting growth goals? • Are you achieving those goals? 2. Audience Profile • Have you defined your target audience? • What type of audience are you building? • How close is the audience you’re building to your target audience? 3. Audience Engagement • Is your audience interacting with your content? • If so, how are they engaging (i.e. comments, likes, shares)? • If they’re not engaging, why not? • Are you responding to comments on posts? • Are you equipped to engage leads when they comment on posts? 4. Content Reach • How many people are seeing your content each week? • What are you doing to improve reach? • What’s the optimal time of day to reach fans/followers? • Are you getting “referral traffic” (website visits) from Facebook (especially blog posts)? • Is referral traffic being tracked for remarketing? 5. Engagement by Content Type • What types of content are getting the best results? • Have you tried different types of content that you haven’t before (example: live vs. recorded video)? • Are you prepared internally to produce that new type of content? • What organizational changes need to happen to produce content? 6. Leads • What is the click through rate to each vehicle display page or landing page? • What is the CTR from each social media channel? • Number of leads per landing page (how many filled out lead form)? • Number of clicks to landing page that did not fill out the lead form? • Paid vs Organic Leads (organic leads are the result of networking and relationship building)? 7. Conversions • What’s your conversion rate? How many leads converted on landing pages? • Number of “organic” leads that converted (leads earned, not paid for)? • Which landing pages had the highest conversions? 8. Response Rate & Quality • How quickly are you responding to comments and messages? Facebook grades your page for response time. • Is your lead form response time (follow up

to lead form inquiries) reasonable? • How effective are you at social customer service? Currently, 92.5 percent of brands fail to meet customer expectations on social media and these failures can have big implications. Bad social customer service isn’t just embarrassing. It’s bad for business: • 38 percent will feel negatively toward the brand without a response, and a full 60 percent will tweet about their negative experiences. • Two thirds of customers with poor customer experience reduce their spending with a brand. • 55 percent of Americans have switched brands due to poor customer service. Customers turn to social media when issues arise, expecting a response. Thirtythree percent prefer to contact brands using social media rather than the telephone. How equipped are you to embrace social media as a customer service channel? Any opportunity to hear customer feedback is a gift. 9. Sales Marketing’s job is to serve up leads. Conversions are tracked to determine if the message is resonating. Marketers, however, rarely track sales, because it’s a hand off of sorts. Other organizational processes come into play and many on both sides of the equation don’t bother communicating about sales results. As a company leader myself, I’ve always thought of marketing and sales holistically. Tracking marketing through to sales results will only improve both. 10. Negative Feedback • How much negative feedback have you received? • Do you know how much is to be expected (i.e. unfollows, hide posts, etc.)? • What is your process for dealing with negative Facebook reviews? Facebook, at this point, doesn’t offer even a rudimentary process for appealing a review. Your 4.8 stars can quickly become 2.0 with a few negative reviews, regardless of whether they’re real. Next Steps Examine your own Facebook marketing results using these top 10 KPI’s. If you haven’t yet determined your social media strategy, we’re here to help. There’s no sense in waiting. A solid plan with proven strategies takes the guesswork out of social media so you can engage more customers. Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc. Kruse Control coaches, trains & delivers webinars focused on integrating social media and online reputation management into dealership operations.

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PRODUCTS AND SERVICES

PROTECTIVE ASSET PROTECTION LAUNCHES PROGRAM New Higher Mileage Service Contract Program

Protective Asset Protection has launched its new Protective Auto Care Plan program. This new service contract program is focused on providing a service contract solution that meets the needs of higher mileage vehicles. The Protective Auto Care Plan provides coverage for vehicles up to 200,000 miles, with numerous coverage plans and deductible options, allowing dealerships to better meet the needs of pre-owned auto buyers. Additionally, the program provides terms to support late model vehicles and “wrap” plans to add coverage to existing warranties. The Auto Care Plan includes other benefits such as rental car reimbursement and emergency roadside service.

“We worked closely with dealers and independent agents, in addition to conducting research to develop a plan tailored to the needs of higher mileage vehicles. The Protective Auto Care Plan is the result of these efforts and we feel this is the service contract program that will meet the needs of the industry today and into the future,” said Protective Asset Protection vice president for independent auto sales Mark Edmundson. The new Protective Auto Care Plan provides dealerships with an opportunity to provide greater peace of mind for car buyers, while point-of-purchase and digital materials are available to help inform customers of the program’s value. Protective Asset Protection senior vice president for distribution Rick Kurtz said, “With the average age of vehicles on the road remaining high and the projected growth of pre-owned inventories, we see this program serving an important role in dealerships’ F&I offering.” About Protective Asset Protection Protective Asset Protection provides vehicle protection plans, GAP, credit insurance, training and other F&I services through vehicle dealerships. Protective Asset Protection has been serving dealers for 55 years and currently provides products and services to automobile,

marine, RV and powersports dealers. Protective Asset Protection is part of the financial services holding company, Protective Life Corporation. For more information about Protective Asset Protection call 800-323-5771 or visit www.protectiveassetprotection.com.

ACCELERATE

BY GWC WARRANTY

WHERE NONCOMPLIANCE HURTS THE MOST 5 High Risk Areas

Complying with federal regulations is extremely important, and there are many potential pitfalls in your dealership. But which areas of your dealership are at the highest risk? A 2014 Center for Automotive Research study crunched mounds of data to find the cost of dealership compliance was, on

OIADA / June 2017

average, over $180,000 annually. Now, this figure does factor in the sale of new cars as well as used and can be more applicable to a franchise dealer. It’s the next level of data, however, that can be of use to any dealership looking to avoid crippling and costly compliance penalties. In drilling down a bit further, the Center for Automotive Research found five main areas of a dealership where compliance costs had the largest impact: Marketing, service, sales, general accounting and administration, and vehicle financing. Let’s take a look at each. Marketing (8 percent) According to the Center for Automotive Research, this happens primarily in customer communications and advertising. It’s important to ensure your vehicles and F&I products are presented in a way that complies with federal regulations. Service (13 percent) A vehicle service contract could serve as a menu of work needed on a vehicle, so whether it’s your own service facility or a local shop you use often, it would be wise to have checks in place, like random inspections. Sales (16 percent) Much like marketing, it can’t be understated how vital transparency and compliance are as part of your sales process. Following regulations in place will help

IT’S NO SURPRISE THAT FINANCING MAKES UP THE GREATEST PORTION OF COMPLIANCE COSTS. protect your business and your customers in the long run. General Accounting and Administration (26 percent) This covers everything from accounting, employee benefits, facilities and more. Following regulations such as the Americans with Disabilities Act, Family and Medical Leave Act and others will keep regulators at arm’s length. Vehicle Financing (37 percent) It’s no surprise that financing makes up the greatest portion of compliance costs. Regulations like the Equal Credit Opportunity Act and the Gramm-Leach Bliley Act protect customers in the financing process. Complying is the only option to avoid such high annual costs. Now, the expectation isn’t for you to know the ins and outs of these specific laws and regulations. But to help keep your hard-earned money in your bank account, it would be prudent to seek out training resources to help offload the burden. Compliance experts and comprehensive training can put your dealership in position to spend less time breaking down laws and regulations and more time on the lot selling cars.