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Presidents Club: Most Valuable Insight Winners and Presentations

May 24, 2018 0 Comments

Today we are recapping Presidents Club, specifically the Most Valuable Insights (MVI) competition.

The 2018 competition took place in Ft. Lauderdale, Florida, on May 7th.

MVI is designed to reveal and showcase never-before-released data and research unique in the automotive industry. This year five companies participated: Cars.Com, Hireology, Dealerware, Lotlinx and Drive Motors.

Starting off with the winner, Drive Motors, Senior Vice President of Consumer Experience, Matt Weinberg spoke to their research of optimizing online digital retailing and ecommerce and how it increases the sales of finance and insurance (F&I) products online.

“So if you took 100 orders across dealers who were optimizing for e-commerce they were getting somewhere in the neighborhood of $63,000-$64,000 in pre-selected F&I products on those 100 orders where as the dealers who were not optimizing for e-commerce on the same 100 orders … were getting around $21,000-$22,000 in F&I products pre-selected.”

Weinberg says the most successful dealerships did two things: They marketed the fact that e-commerce was an option, and they also retargeted customers who start buying online but don’t check out.

“Not only did they market it digitally but they marketed it in their traditional advertising like TV and radio. We even have a publicly traded dealer group that is actually using billboards in their metro area saying ‘buy this car online’… We’ve been amazed at how many dealers will add our button to their website and not retarget the customers that start the buy online process.”

MVI runner up is Hireology. CEO Adam Robinson presented their research on how to save money in the hiring process, “The literal most valuable part of our insight was this: dealers spend on average 26 days to fill an open position but ten of those days are spent waiting for a manager to actually open a resume to look at it.”

Through Hireology’s research Robinson says dealers could save thousands of dollars if they just responded a few days faster to resumes.

“So if the average dealership headcount is around $1,000 of gross revenue profit each day and the average manager is taking ten days to open a resume, it’s costing $10,000 per hire gross profit lost or opportunity cost just waiting for people to be responsive.”

Next up, Dealerware’s Executive Vice President of Mobility, Russell Lemmer, spoke on how dealers need to up their game when it comes to service loaners, and if vehicle subscriptions actually live up to the hype.

“It’s all about net dollars they (dealers) can make. So the idea of service loaners is to say hey you’re leaving 10’s of thousands of dollars of profit a month on the table if you’re managing these poorly. And by the way if you’re really chasing after profits be very careful about subscription because it could be a pitfall.”

Lemmer goes on to say new car subscriptions don’t work. But they have potential if dealers incorporate current inventory,like service loaners into their subscription service.

“I think the only way to make it a viable business model is to use used inventory. I think right now it’s a bit of a tail wagging the retail automotive dog and distracting a lot of people.”

Cars.Com presented research about online reviews. David Greene Senior Data Strategist says about eight out of ten shoppers use online car reviews. On stage at the Ritz Carlton in Ft. Lauderdale, Greene added that smart dealers solicit reviews, listen to them and manage them like valuable assets

Our final participant, LotLinx, spoke on the power of artificial intelligence (AI).

“I think what’s fascinating is to watch the AI actually learn when we engage a new dealer or OEM. We can see literally a hockey stick as the machines starts to learn where are the best shoppers… and what content to present them.”

President Eric Brown says when you pair two AI machines, one sourcing shoppers and one that’s analyzing the consumer experience, that’s when the magic happens.

“That’s where you see you know 5X 10X improvement in performance because you’re tying the consumer experience with the consumers interest and intent.”

To look at these presentations more in-depth, you can click here, where we have uploaded all five presentations.

 

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