Auto Remarketing is launching a new series called Executive Snapshots in which an automotive executive shares some brief thoughts on how he or she sees the industry, some challenges and solutions and how their company is adapting to these opportunities. In our debut Executive Snapshot feature — which can be found in the June 1 print and digital editions of AR, our kickoff to the Top 100 Used Car Dealers series — we profile Robert M. Berndt, president of Dominion Dealer Solutions of Norfolk, Va.
An excerpt of the feature can be found below. The entire piece can be read here.
Auto Remarketing: Your company has played a major role over the years as dealers moved from a paper-based operation to one that is more digitally-based. What has been the driving force behind this transition?
Robert M. Berndt: Technology’s underlying value proposition is delivering improved business results. I think dealership owners now understand what that means for them. For corporate owners, digitally-based customer and inventory management systems provide greater visibility into their businesses. For private owners, technology can facilitate better business processes – and the drivers for that change – the ease-of-use and improved efficiency — are ultimately the people running the dealerships.
You can look at a lot of examples where someone who had been resistant to using a smart phone or an iPad within the last two years – and now they are not only using it, but relying on it. Managers are realizing that they can look at their inventory data on their phones. They are just wowed.
Some of this technology adoption is happening in an organic fashion. So, it will be pervasive and it will be everywhere over a period of time.
AR: Is this driven by younger people pushing?
RB: In some cases, yes. In others, it is simply business driven. Technology has been around for a while now. It’s not just the youngsters that use it successfully. Folks realize that technology makes their life easier. So those who have been resistant in the past are having a harder time explaining why they shouldn’t adapt and take advantage of the ease that is there. Case in point, my dad is in his mid-70s and got his first iPhone two years ago — he’s a pro at it now.
The savvy dealer knows that if he wants people to want to work in his dealership, then he has to get them the right technology to do their job. There are probably a lot of different influences in the technology decision. Certainly, as owners transition their businesses to their adult children, new processes and technology are adopted.
AR: This company has grown tremendously in the providing of technology. Has educating dealers been a major challenge?
RB: It’s getting easier. Think about selling websites 10 years ago when many dealers said, “I don’t think people are going to use that.” Now websites are fundamental to their businesses. Look at that trajectory and the timeframe of adoption of dealership websites. These kinds of things tend to accelerate, not decelerate, which means adoption of new technology will change even more quickly going forward. So we don’t have to sell the concept as much as we used to. Mobility and flexibility are defining business process. We are staying on the front edge of that — and will do whatever we can to make sure dealers understand the value in that, and how our solutions deliver that, for their businesses.
For the complete story, see the print and digital editions of the June 1 AR — which is Part I of our Top 100 Used Car Dealers series — both of which are available now.
As competition becomes tighter in the U.S. auto industry, the need for exceptional leaders at dealerships couldn’t be greater. Today, leaders know what’s best for business, what path leads to ultimate business success, and how to distinguish their business from the pack.
These two things are critical to understand as we dive into this topic: a) having a clear business direction and b) differentiating yourself from the marketplace.
Wayne Gretzky, the professional hockey legend, is a great example of a true leader and a game-changer. He always knew where the game was going and how he could take advantage of the given situation and lead his team to ensure victory was inevitable. Gretzky said it best when he explained the key to his success: “A good hockey player knows where the puck is — however, a great hockey player knows where the puck is going.”
This may be coming from a hockey player, but it makes sense even if it is applied to the auto industry.
Today, to be an exceptional leader like Gretzky, a proactive and anticipatory approach is important. At present, the auto industry is dynamic. The competition is soaring, the buyer market is shifting from male to more female-focused, and so are the car buying trends.
Consumers today are more tech-savvy; they prefer searching for dealers online which is more convenient as compared to traditional market search, which looked more like “buy at the dealer closest to your home.”
It is said that times of uncertainty and change often produce great opportunities to differentiate. Likewise, this is the right time for executives, GSMs and SMs to think and lead like Gretzky, driving their business to further success. It is imperative to take strategic risks and be proactive about tapping the emerging trends. By adopting new strategies to cope with the market changes, dealerships will be able to reposition themselves timely and stand out from the pack.
Let’s first take a look at some significant game-changing trends that pertain to women:
- Women in the United States buy 50 percent of vehicles — about 75,000 a day at new- and used-car dealerships
- According to the U.S Census, over one-third of women out-earn their husbands
- More and more children are born to single moms
These may seem just numbers but they are real money-making and business performance boosting statistics for dealers who want to be positioned as the go-to dealership stores in their market.
This brings us to what possible plays would produce forward thinking leaders to ensure their dealership copes with industry changes and rises above competition? Below we have discussed how dealerships can play off each game-changing trend to their advantage and leverage business:
Women have the Buying Power. This is the perfect opportunity for dealerships to break from the traditional sales model and make their store more women- and family-friendly. Since women are propelling sales, cater effectively to this buying segment by hiring more women sales and service advisors. It is seen that women are more comfortable communicating with the same gender.
Currently, an estimated 18 percent of dealership personnel are women, but most are non-floor sales positions like BDC, social, administration, marketing and service positions. So, it’s the right time to encourage women to join the sales floor. Hire qualified people that relate and look like your customers for a more comfortable and successful sales experience for women buyers.
Loyalty happens in the service drive. Therefore, it’s critical that your top listeners are your service advisors. Why? To hear what women are saying and not saying.
Your best listener behind the service counter makes female customers more comfortable to ask questions concerning repairs and, when triggered or upset, provides a space to problem solve and get the issue handled and move on.
The Changing Family: Women are the breadwinners in over one-third of family households today. There are many homes with stay at home dads, same gender parents and multiple generations living under one roof. Cater to each woman and potential customer with ultimate respect. For more, click here.
Meet Your Customers where They Are:
- Problem Solve: As more children are being born to single moms, it is important to incorporate quality and value adding concierge services that works around their busy day. All parents will appreciate a childrens play area where they can leave their kids safely and focus more on the dealership visit purpose.
- A Caring Company: Further, the No. 1 requested concierge service item from women is an overnight vehicle. Having this shows you understand the inconvenience of having a car repaired overnight and are willing to go the extra step to do something about it. You are providing hassle and worry free service.
- Have Women Want to Be Here: So what else can your business dealership provide to make it a place that women want to be, not have to be? Have fun services like a boutique fitness and yoga studio with changing area, shower, and restrooms. Not everyone wants to sit and watch TV. How about individual play stations for mom gamers to relax after a long working day while their car is being serviced. Sound silly?
At one time your grocery store simply sold food. Now it has other conveniences like banking, café, childcare, dry cleaner, pharmacy, and health and wellness, etc.
- Install vending machines with healthy food options and beverages (not just M&M’s and Pepsi) and provide Starbucks coffee and tea. How about a part time manicurist?
- Free car wash policy is a winner for you and your customers as they will stop in a lot more frequently – different and more lasting relationships will be created.
- Engage and Educate: Assist customers in getting to know their new car better with a specialist 1 on 1, or spend time looking at the latest safety and technology features of your top 3 models being featuring that month. All these are little changes that make a great impact on customers to help win them over for long time, if not a lifetime.
Women visit two dealerships and buys from just one. What plays are you making to ensure she picks your store? Leadership paired with strategy is a better game than luck in capturing new business.
Editor's Note: Anne Fleming is president and car-buying advocate of Women-Drivers.com and a guest contributor to Auto Remarketing
. She was also recognized as one of AR's 2013 Women in Remarketing.
In a recent study called “Women + Mobile: The Unbreakable Bond,” Time, Inc. and Nuance Digital Marketing discovered that women are incredibly reliant upon their mobile devices — in fact, 60 percent of women say their smartphone is the most important device they own, and 88 percent of women say their phones give them something to do during their “empty” time every day. If you're not properly taking advantage of your presence in the mobile realm, you're missing out on a core avenue for marketing to women!
Mobile Marketing to Women: Text Reminders and Alerts
If you're not taking steps to go paperless, now is the time to begin. Not only is paper becoming increasingly cost-prohibitive (if you don't believe us, just take a look at how much you spend each year on printing invoices), but women are also very responsive to “green” directions in any business, particularly the automotive aftermarket.
Using email invoices, Web- and mobile-friendly newsletters and communication, and even utilizing text messaging for service reminders and more will help your business stay front-of-mind for your women customers not only for its fresh, green approach, but also because it reaches her through the conduit via that which she gets all her other important updates: her mobile phone.
Mobile Marketing to Women: The Mobile Web
Of course, you also want to use the mobile space to reach women who aren't already your customers, and the mobile Web is where you do that. Smartphone and tablet users are threatening to overtake the population of desktop PC users on the Web, so if you're still using a website designed for desktop viewing, it's time to give that site a face-lift and retrofit to fit inside the mobile space. It'll make your site cleaner, simpler, and easier to navigate from a smaller screen, with some added benefits on the back-end as well: mobile SEO.
Giving your website a mobile makeover is a great time to revisit your SEO practices, ensure your entire website is “crawlable,” that you're still targeting the right keywords, and most importantly, that you're capitalizing on SEO geared at the mobile user. Mobile searchers are on the go, and looking for a business who can help right now, so if you've got a mobile friendly website inside and out, you're more likely to be the one she chooses to “click-to-call!”
Mobile Marketing to Women: The Pitfalls
When it comes to advertising on the Web, mobile or otherwise, most women don't mind ads as long as they can control the experience. Location-based offers are very effective right now; 41 percent of women saying they prefer ads that are relevant to where they're searching from. Fifty-two percent say they prefer ads that are relevant to what they're currently doing on the Web, and the number one negative? Intrusive ads — 91 percent of women say they hate ads that pop up, take over, or otherwise distract from her browsing experience, so stay away from that!
Simply make yourself visible, mobile friendly, and allow your business to become part of her mobile web space, and when she needs your help, she'll find you.
Jody DeVere is the CEO of AskPatty.com. Contact her via email at [email protected]
Although cost is important to car shoppers, it seems that their time is also a big priority, and most aren’t willing to take extraordinary amounts of it just to haggle away at a car’s price tag.
In its 2014 Car Shopping Trends Report, Edmunds.com said that while most shoppers at least try to get a good price — 96 percent, according to a company survey — only about a fifth are willing to take that to the limit and use as much time as possible to get the lowest price.
Meanwhile, close to two-thirds (64 percent) find it important to save time and money when car shopping.
“These findings dispel the myth that car shoppers will do whatever it takes to pay a rock-bottom price,” says Edmunds president Seth Berkowitz. “The feedback we’ve received from shoppers is clear: they’re more than willing to limit their efforts to haggle if they can get a fair deal without the difficulty and stress of long negotiations.”
They’re also particularly keen on getting upfront pricing. According to the survey, two-thirds of respondents they were likely to ask for guaranteed upfront pricing on a new ride.
And it’s not just the price they want to be clear-cut: 82 percent said they would rather have a price guarantee on a VIN-specific new car versus a vehicle configuration that might not even be within the dealer’s inventory, Edmunds said.
Going back to the time element, it appears most shoppers aren’t willing to go from dealership to dealership. Edmunds shared what it called “The Rule of 2s.”
That is, the average shopper will only go to two stores and take two test drives. So, here’s the takeaway, as listed by Edmunds in the report: “Find out what other vehicles and brands the shoppers are considering and be prepared to express what separates your business and products from the competitors.
“Create brief and specific messages that highlight the positive attributes of your OEM, models and dealership. This is also where strong online reviews can really help your dealership shine. It also helps to keep a list of vehicle accolades from independent sites like Edmunds.com on hand.”
Edmunds based its report on a survey done by Added Value on behalf of the company in September. Edmunds said 500 in-market shoppers or recent purchases were surveyed.
These were just a few of the report’s findings; stay tuned to Auto Remarketing for more.
The American Recovery Association has two free webinars scheduled for this week for member agencies and their employees, covering a wide array of repossession issues.
The two sessions are scheduled for 12:30 p.m. EST on Wednesday and again at 3 p.m. EST on Thursday.
One segment is titled, “The Importance of Employee Professionalism,” which will be presented by Dave Kennedy, chief executive officer of of First Credit Resources.
The other segment is titled, “Employee Background Checks: How, When & Where,” which will be presented by Doug Duncan, president of TalentValue.
ARA members must register online for the webinar with individual email addresses to receive a certificate of completion. If computer sharing is necessary, ARA asked agencies to provide a list of employee names and email addresses in a Microsoft Excel spreadsheet and send it to [email protected].
“American Recovery Association provides a free continuing education webinar series for recovery and remarketing professionals. The one-hour webinar offers education about the latest recovery laws and regulations, compliance policies and industry issues,” association officials said.
“This webinar is open to all business owners and employees,” they added.
Questions or feedback about the continuing education webinar series can be directed to ARA’s office by calling (972) 755-4755 or sending a message to [email protected].
Dealers interested in learning how their stores compare with others across the region and nation now have a bit more time to submit their data for a comprehensive, no-cost industry study.
The deadline to participate in the 2014 NADA-ATD Dealership Workforce Study has been extended to June 30, to provide members of the National Automobile Dealers Association and American Truck Dealers the opportunity to submit their data.
The comprehensive study provides participating dealers with individual and aggregated peer data, along with national and regional data, on compensation and benefits, retention and turnover, and work schedules and hours of operation.
The results can help dealers make more data-based decisions on recruiting and retention, NADA said.
“As more and more dealers learn about this study, they don’t want to miss out on the chance to take part and get their hands on information that can help them gain an edge in their market,” said Wesley L. Lutz, chairman of NADA’s Dealership Operations Committee and a new-car dealer in Jackson, Mich. “We want to be sure that all interested dealerships have that opportunity.”
Participation in the study is available exclusively to NADA and ATD member dealerships, at no cost. Participating dealerships will receive a complimentary, customized Basic Report comparing their individual data against data aggregated on a regional and national basis.
Dealers who take part will also receive a complimentary Dealership Workforce Study Industry Report, which analyzes dealership workforce data for every U.S. region.
For more information, see www.nadaworkforcestudy.com.
"Always answer the phone," could be a dealership’s best sales route, according to recent research by CallSource Automotive showing that customers who call to inquire about a vehicle typically make a purchase in two to five days.
On Tuesday, CallSource Automotive announced a partnership with IHS Automotive to provide dealer customers with analytics on how many sales prospects ultimately buy at the dealership they called, and how many sales are lost to competing dealerships and brands.
CallSource will add key new- and used-vehicle purchase insight to its patented Sales Profit Management System that will allow better pinpointing of ways to improve dealer clients' call management processes, and track performance improvements over time.
"IHS Automotive purchase insight provides a key element in analyzing the results of our clients' call management efforts," said Andrew Price, president of CallSource Automotive.
"Our patented SPM system provides a continuous loop of ongoing improvement for our dealers. The IHS Automotive insight is an important measurement of dealership performance that allows dealers to identify areas of profit leakage and improve their call management processes," Price said.
A recent 90-day review of calls at nearly 500 dealerships by IHS Automotive, meant to measure the impact of CallSource's DealSaver service, more than 40 percent of customers who purchased from the initial dealership they contacted came into the dealership following a DealSaver alert.
DealSaver alerts are sent to a dealership following mishandled sales or service calls, offering management a second chance to reach the prospect and set up an in-dealership meeting.
"Adding our analytics to CallSource's SPM system provides some important metrics," said Bob Sherman, director, sales and client services, for IHS Automotive. "As in the case of the DealSaver analysis, we can validate that CallSource services are providing an immediate impact on a dealer's bottom line.
'In addition, we can uncover important industry trends that help dealers monitor their individual call management performance against the rest of the industry," he said.
The company noted that gaps in call-handling skill cost dealers hundreds of thousands of dollars in missed sales opportunities.
Though what your salespeople wore to work this morning might be the least of your worries as the bustle of your day begins, neatness of appearance can make a huge impression on potential buyers.
But there are many different schools of thoughts as to dress code and uniform in the showroom, and it varies by customer, and age group.
To hear what some of the experts have to say, the American International Automobile Dealers Association and its Affinity Partner, Lands’ End, will be holding a free Webinar on May 15 to cover this very topic.
The free Webinar, titled, “The Millenial Generation: Opinions on Uniforms and Branding,” is scheduled for 1 p.m. (EST).
The session will take a look, specifically, at what brands millenials are purchasing as well as what is important to them when purchasing a vehicle.
The Webinar will also address how dealerships are using apparel with logos to create a branding approach to catch this generation’s attention.
Kristen Carter, national account executive at Lands’ End, will guide attendees through the process of apparel options, merchandise branding, AIADA member benefit discounts and how to place an order.
Registration is open to the first 150 individuals who register, and attendees do not have to be a member ot AIADA to register.
Click here to register.
With the amount of information available online during a shopper’s initial search for a new vehicle, it is becoming more and more important to showcase a store’s best assets on the Web — including its salespeople.
DealerRater is debuting a new program at an industry conference this week that helps stores do just that.
The company’s new Certified Employee Program is designed to allow dealership employees to use their individual reputations to stand out from competitors when shoppers are researching stores on the DealerRater site.
The new tool is a complimentary feature of DealerRater’s Certified Dealer Program.
The program’s employee-specific pages let dealers feature personal bios, videos and customer testimonials for dealer employees.
And the Certified Employee Program “takes it one step further,” the company said, by giving individual employees the opportunity to achieve certified status to potentially earn more reviews and increase their visibility to potential customers.
“Today’s auto shoppers are looking for more than just the right dealership,” explains DealerRater chief executive officer Gary Tucker. “They are seeking the actual person they want to work with before stepping foot in the showroom. With this in mind, we’ve designed our Certified Employee Program to help consumers find the top-rated salespeople and service advisers in their area. This enhanced level of visibility into a dealer’s business offers ample opportunity for employees to better position themselves for success.”
To obtain certification, employees must finish an online training course and obtain a minimum of 10 new reviews quarterly.
Training includes lessons in best practices and how to leverage online reviews to beat competition, among other topics.
The company explained employees who fulfill these requirements will gain priority placement on a list of top-rated certified employees featured on result pages when DealerRater users search for dealers.
Certified employees also receive an exclusive badge for their DealerRater online profile and a certificate of achievement that can be displayed at their dealership.
Megan Barto, Internet director at Ciocca Honda, expressed her enthusiasm for the new tool, noting, "We've already seen a direct correlation between our top performers and their reviews on DealerRater, so we are truly excited for the Certified Employee program.
“It allows those employees who take advantage of the Certified Dealer Program to gain more visibility amongst the community. It also offers us the unique opportunity to build even more reviews and drive more business for our sales and service staff through DealerRater,” she continued.
Car buying is an expensive proposition. Nobody wants go wrong when it comes to closing such a deal. And this is exactly why women buyers take the time to shop around, research online, and are twice (50 percent) as likely to read car dealer reviews, before they make their final car buying decision.
To close a successful sales deal, it is imperative for a dealership to have a winning sales team that can help every single potential visitor smoothly transition into an actual buyer. This calls for a good understanding of each buyer as they have their own individual set of needs, wants and circumstances.
An Opportunity for Dealers to Grow Sales
Women buyers are one of the largest car buying segments in the U.S. This segment of car buyers is growing rapidly with time. Last year, women purchased approximately 525,000 cars per week, totaling an estimated 27 million cars purchased at new- and used-car lots, according to NADA Data and CNW Research.
There are over 17,500 new-car dealerships — and are plenty of choices for women to shop at. For dealerships to gain a competitive edge and rise as the first choice of preference among women, it is important to meet — and exceed — women’s expectations during the purchase process.
Formula for a ‘Happy Woman Car Buyer’
A different approach is required to surprise and delight women car buyers. Its foundation is based on “building trust,” which is earned through being respectful, being friendly, refraining from aggressive selling and quoting the right price initially.
Let’s take a look at each of the key elements in this formula individually:
Trust: The Deal Maker
According to a study by the Insights Advantage, it costs organizations more than five times as much to get a new customer than it does to keep retain one. This truly helps understand the value of building a strong relationship with customers and turning them into repeat buyers.
Trust-based relationships are achieved through mutual understanding and connecting with the customer at an emotional level by understanding their car-buying sentiments. Dealership sales staff who get each women buyer’s needs, concerns, fears and expectations and listen to help them find the best perfect car or best match, not only close successful car deals but also enjoy customer loyalty.
Be Respectful
The process of trust building begins as soon as women visitors walk into a dealership. How the sales professional treats shoppers matters greatly, as it has a huge impact on their buying decisions.
Dealerships that consistently train their sales team to greet women buyers respectfully and pleasantly have higher chances of closing sales. It helps put women at ease and feel welcomed.
Be Friendly & Polite
Women find friendly sales people easy to talk to. Naturally they are more comfortable around sales advisors that are likeable as compared to those who are not. It is also best not to use terms of affection like “little lady” or “hon” or “babe.” It would be wise to keep the transaction on a professional basis, without touching the client or hugs. Really, this happens quite a bit, and women are confounded by it.
Say No to Aggressive Selling
It is hard to earn trust of a buyer if they are feeling pressured. It’s important for salespeople to come across as resources and trusted advisors who buyers can turn to for support instead of coming out strong, selling aggressively and ‘strong-arming’ buyers with their preferences.
Quoting Right Price
By understanding car needs and the budget of each buyer and helping them find the perfect car that suits their needs, dealerships can earn the trust of women and win long-term clients. Women appreciate dealers who don’t push them into buying cars that exceed their budget. They give preference to dealerships that are upfront about the pricing and saving estimates, offer a value deal and provide a flexible payment plan. When they feel that they have bought the best car at the right price, they inherently put their trust in the dealership. But it all starts and stops with the sales advisor.
For more insights, also read: http://women-drivers.com/what-are-the-5-reasons-women-buy-from-their-car-sales-advisor-hint-relationships-rule-and-it-aint-money/
Editor's Note: Anne Fleming is president and car-buying advocate of Women-Drivers.com and a guest contributor to Auto Remarketing. She was also recognized as one of AR's 2013 Women in Remarketing.
