Carvana continued its expansion with two announcements on Thursday and Friday, stating that it launched its as-soon-as-next-day vehicle delivery to Mankato, Minn.-area residents and to residents of Eau Claire, Wisc.
“As we grow our presence in Minnesota, Mankato plays an important role in bringing our easy, transparent car buying solution to more and more customers,” Carvana founder and chief executive officer Ernie Garcia said in a news release.
He continued, “We are confident we can deliver on the diverse needs of Mankato area residents, and we look forward to offering as-soon-as-next-day vehicle delivery to area residents.”
Regarding the Eau Claire, Wisc. announcement, Garcia said the company has offered Wisconsin area residents its online car buying experience for nearly two years.
It’s Carvana’s fifth market in Wisconsin.
“As we grow our presence in the state, Eau Claire provides us even more opportunity to show customers how much we believe in putting them in control of the purchase process,” Garcia said.
With the two announcements, Carvana now offers as-soon-as-next-day vehicle delivery in 153 U.S. markets.
Ernie Garcia says Carvana’s Minnesota expansion has been rapid, with back-to-back launches in the state.
Those launches were in the cities of Rochester and St. Cloud. Garcia, who is Carvana founder and chief executive officer, describes Rochester as “a city built on innovative ideas and a people-first mentality.”
The company announced the St. Cloud launch on Tuesday and the Rochester launch on Wednesday.
Garcia said his company looked forward to carrying on the innovativeness and “people first” ideals in the Rochester community, “offering customers a car buying and selling option that’s powered by technology and exceptional customer experiences.”
Addressing the St. Cloud launch, Garcia said, “Reaching St. Cloud area residents with as-soon-as-next-day delivery means we can bring our fast, transparent car buying option to more and more customers across the state.”
With the Minnesota announcements, Carvana now offers as-soon-as-next day delivery in 151 U.S. markets.
Fiat Chrysler Automobiles head of network development Phil Langley says the company realizes that a dealership reaches its maximum potential “when it reflects the community it serves.”
The company in 2018 launched its Dealer Investment Program to provide financial support to high-potential individuals wanting to operate a Chrysler-Dodge-Jeep-Ram or Alfa Romeo-Maserati dealership, but have limited funds. The program seeks to match potential dealers with specific markets where they can succeed.
At the end of 2018, FCA had 177 minority-owned dealers, a 57% increase since 2010.
Now, FCA has launched a dealer diversity website to support and expand the number of dealerships that minorities and women operate. The site works in tandem with the Dealer Investment Program.
FCA says the site – www.minoritydealers.com – provides a “clearinghouse of information,” including dealer success stories and awards and an online application process for anyone interested in joining the company's network of more than 2,600 dealers.
The Dealer Network Diversity team seeks to support the Dealer Network Operations team in sourcing candidates. It does that by creating a pipeline of what it describes as “qualified ready-now” candidates for the dealer network through the new website.
The team is also looking to provide candidates with an opportunity to apply online using a secure encrypted website. In addition, the team wants to ensure awareness that the website exists as a resource.
“This site now provides a direct link into what we are doing here at FCA when it comes to growing diversity among our dealers,” Langley said.
FCA now ranks No. 2 in minority-owned stores for the U.S. automotive industry, and women own 317 dealerships.
"We must maintain strong relationships with our minority-owned dealerships and those sites owned by women," said FCA senior manager of dealer market representation, diversity and technology Eric Wong.
He continued, “This site provides a conduit so FCA can provide support to help our dealers achieve financial success.”
At the National Automobile Dealers Association Show in Las Vegas, FCA will conduct candidate interviews for individuals interested in joining the FCA Dealer Network. Interviews will take place at the Waldorf Astoria on Feb.15 and Feb 16. Interested candidates can e-mail DealerDiversity@fcagroup.com to schedule an appointment.
Retail auto website platform and digital marketing company DealerOn has announced a strategic partnership with independent private equity firm, NexPhase Capital.
"NexPhase brings deep sector knowledge, operational expertise and significant resources that will help drive DealerOn's success for years to come,” DealerOn chief executive officer and co-founder Ali Amirrezvani said in a news release.
Amirrezvani continued, “With NexPhase's partnership, we will execute on our shared vision to remain the top choice for thousands of dealers across the country, by driving innovation, doubling our development teams and offering the exceptional service and support that customers have come to expect."
Amirrezvani and his brother Amir founded DealerOn in 2004. The company provides a website platform and digital marketing services to auto dealerships.
DealerOn says it is “bolstered” by 26 OEM certifications, which it says is the second most in the industry.
The company says it is among companies leading the transformation of the retail automotive industry from what it describes as “legacy website providers to a data-driven web automation platform designed to enhance consumer experiences.”
DealerOn says its services have helped deliver growth in traffic and qualified leads. The company says its average dealer customer sells more cars and gains opportunities with a 150% increase in leads.
The Amirrezvanis will continue to lead DealerOn, and the company will remain headquartered in Rockville, Md.
The companies say the NexPhase team offers strong experience investing in software and services companies. KnowFully Learning Group, Brandt Information Services, Insurance Technologies, Flexible Architecture & Simplified Technology, Inside Real Estate, SwipeClock and Mxi Technologies are among its current and previous investments.
“Over the past 15 years, and with the help of our dedicated team, my brother and I have built this business from the ground up,” Ali Amirrezvani said.
Amirrezvani continued, “The company has experienced rapid growth and today has more than 3,500 dealership partners and 350 employees. As we continue to scale the business and define our leadership position within the automotive retail industry, we are thrilled to partner with NexPhase and welcome them to the DealerOn family.”
In measuring the usefulness of automotive manufacturer websites during the process of shopping for a new vehicle, Mitsubishi is the highest-ranked mass-market brand.
That is according to the J.D. Power 2020 Manufacturer Website Evaluation Study — Winter, which examines four measures, in order of importance: information/content, appearance, navigation and speed.
In the luxury manufacturer brand segment, Land Rover ranked highest in the semi-annual study, which took place in November.
The Manufacturer Website Evaluation Study was initially released in 1999.
The study is based on responses from 10,031 new-vehicle shoppers who say they will be in the market for a new vehicle within the next 24 months.
“For automotive manufacturers, an effective website is critical,” J.D. Power writes.
The company adds that a manufacturer website serves as an important portal of information for new-vehicle shoppers during the selection process. It also helps them narrow their “consideration set,” according to the company, and helps them identify important vehicle features and benefits.
“Well-designed aspects of website appearance, navigation and speed enhance shoppers’ ability to locate specific content, helping to drive traffic to showrooms,” J.D. Power writes.
The company continues, “Each of these aspects will continue to be an important part of the overall design strategy as vehicle manufacturers execute site designs across multiple device types, including tablets and smartphones.”
“This year’s study was redesigned to underscore several recent trends seen in automotive vehicle manufacturer websites,” J.D. Power senior manager of digital solutions Jon Sundberg said in a news release.
Sundberg added, “We’ve taken note of the digital advancements OEM websites are implementing to evolve the automotive shopping experience. Items like personalization, customization and digital retailing are being implemented or are on the digital road map for many OEM sites, and we wanted to ensure the customer has a voice in these areas."
He continued, “We’ve even added self-guided videos and transcripts of shoppers using OEM websites to give further context to the shopping experience.”
J.D. Power 2020 manufacturer website evaluation study, winter
Mass market manufacturer website ranking
(Based on a 1,000-point scale)
Mitsubishi: 848
RAM: 839
Buick: 836
Chrysler: 833
Honda: 832
Dodge: 831
Fiat: 831
GMC: 831
Chevrolet: 827
Hyundai: 826
Subaru: 826
Mass market average: 826
Kia: 825
Volkswagen: 823
Jeep: 821
Toyota: 819
Ford: 818
Mazda: 818
Nissan: 804
MINI: 801
Luxury manufacturer website ranking
(Based on a 1,000-point scale)
Land Rover: 864
Lincoln: 855
Audi: 849
Cadillac: 844
Lexus: 842
Porsche: 837
Genesis: 836
Infiniti: 835
Jaguar: 835
Luxury average: 834
BMW: 831
Acura: 823
Alfa Romeo: 820
Mercedes-Benz: 817
Volvo: 809
Tesla: 806
Warren Henry Auto Group says its new 800,000-square-foot North Miami headquarters, which is home to Jaguar, Land Rover, Infiniti and Koenigsegg, includes the nation's largest electric vehicle charging facility.
The site is projected to be the largest Land Rover and Jaguar store in the entire nation, said Warren Henry Auto Group president and chief executive officer Warren Zinn.
The company said the site also includes what it says is South Florida's largest frameless hurricane-resistant storefront glass panel.
It also features 82 service bays in an air-conditioned service shop and on-site detailing.
In addition, the site offers “endless event space capabilities, among other services and amenities,” according to the company.
The company said that with the relocation to North Miami, it is closer to its customer base, with sufficient parking for more than 2,000 vehicles.
The company recently hosted an auto technician job fair to recruit nearly 50 technicians specifically for the headquarters.
Available for private events, the location offers adaptable space. That includes the headquarters’ rooftop that provides 360-degree views of North Miami.
Located within the $4 billion SoLe Mia development, the facility features more than 200,000 square feet of office space, about 500,000 square feet of retail and entertainment space, residences, a 37-acre public park, and swimmable lagoons and beaches.
The company says Warren Henry Auto Group is an anchor of this major development.
Since its inception in 1976, the Miami-based automotive retailer has grown to 13 franchise locations in Central Florida, Broward County, Monroe County, and North and South Dade County.
“This is the beginning of a revolution for our company,” Zinn said in a news release.
He added, “The growth of our company over the last four decades has been immense, and the new headquarters are a testament to what the future holds.”
Sonic Automotive and EchoPark Automotive chief executive officer David Smith says the company’s EchoPark business is experiencing rapid nationwide growth, and he described that as “a great testament to our model and the value of exceeding customer expectations.”
The company announced the latest example of that growth on Dec. 16 with the grand opening of its ninth EchoPark Automotive specialty pre-owned vehicle store in Long Beach, Calif.
“Our outstanding associates and groundbreaking mix of both online and in-store guest experience continue to define what a pre-owned car buying experience should be, often drawing out-of-state car buyers looking for the best possible deal,” Smith said in a news release.
He continued, “By truly understanding our guests’ needs and creating a welcoming environment, we can pair customers with the right vehicles at below-market prices. We’re looking forward to bringing our unique customer experience to the Southern California market.”
“Entering the Southern California market and bringing California car buyers the open and relaxed guest experience that has made us successful, along with our ultra-competitive low pricing, is very important to our mission and vision as a business,” said Sonic and EchoPark president Jeff Dyke.
He added, “EchoPark Long Beach will serve a robust automotive market, and as always, deliver on our brand promise of value, honesty and transparency.”
The company said that as a core principle for EchoPark Automotive, it makes a strong commitment to the communities where its stores are located. The EchoPark team has partnered with the Long Beach Rescue Mission to prepare and serve hot meals to the homeless in the Long Beach area.
Through the month of December, EchoPark placed a vehicle at the new location and the team and the local community were able to fill it with items such clean socks, bedding and canned goods. The company will then donate the items to the mission as part of its drive to “Fill Our Car, Fill A Need.”
“Our goal as a business is more than just selling cars, it’s becoming part of the Long Beach community,” general manager Mike Bell said.
Bell added, “We look forward to providing an outstanding customer experience to our new guests and also understand the key to being a responsible local business requires an investment in the people and community in which we are now a part of.”
The new dealership, located at 2998 Cherry Ave., Signal Hill, Calif. will employ approximately 65 people.
Mike Dullea says AutoAlert has been looking at ways that OEMs could “manage incentive spend.”
“What will move the consumer to buy, while improving the overall journey and increasing profits?” said Dullea, who is AutoAlert chief executive officer.
“That’s the answer AlertOptics provides,” he said in a news release, noting that “it comes down to personalization for the consumer.”
AutoAlert said it has secured a patent for AlertOptics, which it describes as an OEM incentive management and data-analytics platform.
AlertOptics, according to the company, is an AI tool, and with that tool, OEMs can apply targeted incentives to a dealership’s consumer base.
That drives sales and loyalty, according to AutoAlert.
AutoAlert says AlertOptics optimizes incentive spend through “analyzing and actionizing” OEM and dealer data.
That, according to AutoAlert, allows for the best incentive level to be generated for the right customer. And that can result in elimination of wasted incentive dollars and identification of incremental sales opportunities.
AlertOptics’ personalized, OEM-branded offers engage customers via text, email, mail, and other channels, according to the company.
AutoAlert said that with AlertOptics’ flexible incentive programs and detailed reporting, OEMs can quickly assess ROI, and they can make better predictions about future buying trends.
“We want to strengthen communication among OEMs, captive finance companies, and dealers to increase their success,” said AutoAlert senior vice president Kendall Billman.
Billman added, “That means unlocking the right data, fully analyzing that data, and turning it into the best experience for customers.”
AutoAlert connects OEMs, captive companies, dealerships, and consumers in this way. The company said AlertOptics is just one piece of its complete customer experience services.
According to the company, that also strengthens communication and collaboration at the dealership, provides complete service lane services, and improves customer loyalty and retention.
“The goal is to provide the very best customer experiences while also increasing sales and profits,” AutoAlert said.
AutoAlert’s first U.S. patent, for its Equity Mining and Financial Alert Process, came in 2010.
The company said successive patents in 2011, 2012, and 2013 enhanced its data mining and sales on the service drive functionalities.
Now that it is part of the Mitsubishi MiDigitalSolutions Website, Digital Advertising, Chat, Trade-In Tool, and Social Reputation Management programs, Dealer eProcess says Mitsubishi dealers can now choose from Mitsubishi website designs that are fully responsive.
The designs are also ADA compliant and feature SSL security, according to Dealer eProcess, an automotive website and digital marketing company.
Mitsubishi dealers now can use all of Dealer eProcess’ latest tools and features and stay within their OEM program guidelines, Dealer eProcess said.
Each section of the websites features high-converting elements, such as the user-focused SRP, or search results page; and advanced VDP, or vehicle details page. Voice search is another element.
Dealer eProcess says features such as website personalization with targeted banners, Smart Search bar and customized service offerings enhance user experience and maximize conversions.
Dynamic SEO on each website maximizes organic visibility, according to the company. The ability to add on Custom Content that works with the site SEO features and is written in-house is another feature.
The company says that with its Integrated Chat Platform, dealers’ customers can get answers to their questions at all hours. Those options include dealer-managed chat with available texting functionality, co-managed chat with texting and AutoBot chat.
With the user-friendly chat, dashboard dealers can monitor and jump in on all chats, and they can do that through whichever package they choose.
Tools such as local SEO and reputation management help dealers target their unique set of customers.
“Keeping up with reviews is a full-time job, but with social reputation management, dealers will streamline the way they manage their social accounts,” Dealer eProcess wrote in a news release.
In addition to the website program. Dealer eProcess was chosen to be a partner in the Digital Advertising Program. Through that program, three package options plus add-on items allow dealers to choose the types of digital advertising that are suited to their market and their budget.
The CARoi: DMS Attribution tool to see profit matched to conversions from the website, digital advertising, and other avenues such as organic are some of the Dealer eProcess digital advertising features. Options for advertising on Waze, Facebook, and Amazon Advertising help reach customers through social media.
As part of the MiDigitalSolutions program, eAutoAppraise, the Dealer eProcess proprietary trade-in tool, is also available to Mitsubishi. A customer can complete the newest version of the eAutoAppraise platform in less than 10 seconds. Using Google-like predictive search functionality, it eliminates extra clicks for the customer and generates leads, according to Dealer eProcess.
Dealers can use Black Book, Kelley Blue Book or NADAGuides in choosing how aggressive they want to be with the value they give to a customer for their trade-in.
Mitsubishi Certified website, Digital Advertising and additional tools through Dealer eProcess are available immediately.
Many automotive sales professionals mistakenly view car buying transactions as “one-offs.” They assume that the customer is unlikely to do business with their brand, or dealership, ever again.
But Black Book and The Appraisal Lane estimate that after factoring in the potential revenue from referral business, the lifetime value of a customer to a dealership is more than $50,000.
According to the joint white paper, titled, “The Value of Loyalty: Customer Lifetime Value in the Automotive Industry,” dealers can increase automotive customer lifetime value, or ACLV, by improving the trade-in process.
Black Book and The Appraisal Lane write that customer satisfaction in the automotive industry lags behind other industries.
The Appraisal Lane chief executive officer Jeff Risner said in a news release that customer experience is the most important “success differentiator” for dealers. The Appraisal Lane describes itself as a mobile app-based community of expert appraisers who put guaranteed cash offers on used cars.
“Lower margins, increased competition, and dwindling loyalty are eroding business,” Risner said.
He continued, “A better customer experience starts with a better trade-in process. By focusing on this, dealers can expand their share of a customer's lifetime value, improve CSI, and create future opportunities for sales, service, and referrals."
The two companies write in the white paper that using precise data to value a consumer’s vehicle is crucial toward building and retaining consumer confidence.
“Utilizing a 17-digit VIN decode helps dealers quickly and precisely appraise and value a customer’s trade-in,” said Black Book executive vice president, revenue Jared Kalfus.
He added, “In today’s data-driven environment, it’s more important than ever to have that precise valuation in order to maximize profit.”
The white paper also addresses how to eliminate pain points associated with the trade-in process, how to build trust with pricing transparency and how to increase consumer confidence by using the right data.
The white paper states that getting as much profit as possible, at the expense of customer satisfaction, is “the root of what ails the automotive customer experience today.”
The paper highlights CarMax as a company known for providing an exceptional customer experience. In addition to appreciating CarMax’s hassle-free buying process and vast inventory, customers like that CarMax will guarantee their appraisal and buy their vehicle even if they don’t buy a vehicle from CarMax.
“CarMax proves that when you bring value to consumers, they bring increased value to you — with the potential for higher returns on immediate transactions and higher returns in the future through repeat business and referrals,” the paper states.
It continues, “The lifetime value an automotive customer brings to brands and dealers can go much further than a single purchase.”
To come up with the “lifetime value of an automotive customer,” the paper calculates total lifetime gross per unit profit, including F&I, by determining the average number of car purchases a consumer makes in his or her lifetime, and the average retail gross per unit profit of the vehicles he or she buys.
The calculation then adds potential revenue for service appointments and extracts advertising cost per vehicle sold to arrive at total net automotive customer lifetime value, or ACLV.
The paper concludes by stating that automotive customers are valuable commodities to brands and dealers.
And their referrals are even more valuable, the report states.
That’s why it’s so important to offer an exceptional trade-in experience.
“Dealers can do this with consistent valuation methodologies, pricing transparency, data backed by science, and personalized appraisals,” the report states.
The report concludes, “With lower margins and volume, increased competition, decreased brand loyalty, and changing buyer behaviors, customer satisfaction is — and will continue to be — the single most important success differentiator for businesses in our industry.”
