Part & Accessories sales are not just transactions meant for repairs.  So few customers though are educated on what is offered online at the time of their purchase or service. Whether that is floor-mats, accessories, or aftermarket parts. 

When is the last time your sales consultants offered accessories to your customer using your store online?

Here are the top reasons to start educating the customer on parts and accessories 

Welcome Email 

How many of you have an email or thank you letter that is sent to the customer after they have purchased a vehicle? If you do - great! But do you have a click-through to your parts/accessories store? If not, you are missing out! 

Dealers who have a click-through to their parts store in the welcome email -  which should be getting a healthy open rate - usually have seen an increase in parts sales! If your OEM is offering a special sale (which they typically are), you can include that offer in the email. 

Besides, the customer might click on that call to action versus the scheduling of their first oil change. As nothing has changed since they were in two days ago purchasing the vehicle. Offering that they were not sure what day for the oil change worked best for them given that it was 3-6 months out. 

Website - where is it?? 

If your parts store is tucked away somewhere in the service menu - then forget it. Customers (especially those on mobile) want the information readily available. All without having to sift through your website.That said, it does not hurt (depending on your real estate options) to have a menu option for “Parts & Accessories.” 

The customer who is purchasing parts might not have serviced or purchased their vehicle at your store. However, if they are able to get the part or accessory inexpensively, it lends the opportunity to gather his/her information. In turn, allowing you to market to a new and potential customer. 

Take it one step further, you can always send them an oil change coupon as a 'thank you' for their parts or accessories purchase if they haven’t serviced their vehicle with you before.  Limiting the offer, perhaps, to OEM vehicles only. As this can assist with retention efforts in place with the OEM. 

Not Tracking Parts Sale Customer Info? 

I was a bit shocked, honestly, that while the parts sales are tracked - the customer data (unless a corp account) is mostly not tracked! This is a huge mistake. Why wouldn’t you want to track all of the customer data for parts & accessories? 

The only time the data (if you are not currently tracking it) would be tracked is if their purchase required installation from service. In which case, there would be an RO for the labor costs. Keep in mind, gathering their data would also lend the ability to email them their receipt. Not to mention - as discussed above - it confers the ability to market to the customer in the future. Primarily if the customer has not already purchased or serviced a vehicle from you. 

Time of Sale 

The customer may not have gotten every option they dreamt of - however, that does not mean that they cannot afford to splurge on a few accessories, which will only cost them (depending on the accessory) a few more dollars a month! 

When is the last time you tried to upsell winterized floor mats? The worst thing the customer can say is “no.” But for everyone that says no will be the customer who wants to protect their new purchase, and will gladly spend the money to protect their new vehicle. 

Bottom Line: 

There has to be a focus on selling parts and accessories! In doing so, it will not only add/increase the bottom line, but it most importantly offers new opportunities to both sell and service the customer's vehicle. 

Do you promote the parts department? If so, have you seen an increase in sales? Do you track all of their customer data? 
 

BDC in the simplest form simply means Business Development Center. A department that is placed in the center of the business that develops business through lead generation, marketing, CRM Management (sales/service) & Vendor Management. In some cases, the BDC will also handle anything from IT, Job Description Development,  & System ADMIN. 

If you review industry standards and trends, however, the BDC is still one of the most debated departments. Wherein, in many conversations, a BDC is seen as a “crutch” or a department that is solely in place to do what sales consultants “refuse” to do, which is - hold for it -  “develop business” through customer inquiries whether that be on the phone or online. 

While there are different camps on the topic of BDC offices -  fascinatingly enough the role of a sales consultant largely has not changed. And while the sales consultant role has changed in some dealers (perhaps those that are more progressive) there is still the need to “develop” business whether that is redefining the traditional sales consultant role or hiring a BDC. But make no mistake - a BDC is not about “doing” what a sales consultant “refuses” to do. Instead, it’s about increasing your store's customer base, which in turn increases sales. 

Here are some things to consider when discussing what a BDC is and/or Does

Companies Do Have Business Development Offices 

It is no secret that major corporations have business development offices that develop business. Handing off “hot leads” to their sales consultants or account executives.  Instead of the conversation being about what BDC’s replace, it should be about what they are developing. Namely, you still need sales consultants. However, imagine if you had a department whose sole focus was to bring customers to your store? Creating a pipeline of business from multiple avenues diversifying your revenue streams. Managing everything from chats, marketing, to the mundane CRM Management. Ensuring that the sales consultant is only spending time with customers who are in the store. Ones that are - again - only visiting less than 2 dealers before purchasing a vehicle; or working customers that they have previously sold too. When was the last time you consistently called and managed an equity mining list taking advantage of the OEM's loyalty program, which can produce a positive front-end gross on a new car deal?

Manage incoming Leads & Customer Chats

The age-old argument of the sales consultants are just not good on the phone is a lazy excuse. We all have our strengths and weaknesses. But this mindset and trend most likely stems from the fact that for so long in the auto industry sales consultants did not have to spend as much time calling, emailing, texting, sending videos, or speaking with customers before their visiting the store. 

The customer had to look through the phone-book select the closest dealer, and they made their journey and purchased. Albeit, this is not offering that selling a car was easy in those days. The days front-grosses on new vehicles were a thing.  But things have obviously changed. The customer is not buying just a car. In fact,  once the customer has made up their mind on the vehicle s/he is more interested in the story your brand is telling. Asking themselves are they getting a good deal, and are you someone that they want to do business with. 

Offering all of those things via email, chat & phone can be very time-consuming. Wherein it takes on average 10-12 touches per lead (with an average of 4 days to close the lead) before they convert to the showroom. If the sales consultant spends their day and is closing 1 to 2 in 4 days - imagine what they can do if they are not focused on converting that customer. Instead, they are solely focused on who is in front of them, and they are selling 3-4 in 4 days. Not to mention closing showroom ups as well. Having a BDC who is able to convert an additional 10% of leads to an appointment (as the average closing rate is 10%) can make a huge difference. Not just in the volume of sales, but the bottom line. 

One Less Visit 

With the average customer only visiting less than two dealerships before their purchase they are spending much more time online doing their research. And while they might not always reach to the dealer before their visit they are reviewing the information that is available. Information that is needed to be updated in near real time. Everything from inventory photos, custom descriptions, social posts, website content, blogs, employee pages, customer reviews, all of which can tell a positive story. A story that sells your brand. That all can and is in many cases something that your BDC can handle. 

You might have an in-house marketing team, BUT how often can they (rightfully so) make a change in real time that can help your business? 

You might have an app, too that can tell you about that negative review that needs to be handled immediately, but are you going to spend 20 minutes calling the vendor who handles your social media when you have a BDC rep readily available to manage the situation in real time? 

BDC’s Are Not Replacing Sales Consultants 

One of the arguments that is quite common is this perception that the BDC is better or are replacing sales consultants. And that is the furthest thing from the truth. In fact, both are two very different roles. And while there is a lot of pushback (trust me, I have been there with some of the sales managers in my dealer experience) a BDC that is effective can make or break a dealer's bottom line. Ensuring that the sales volume is increasing through converting additional traffic. 

Sales Consultants can sell the product. And at the end of the day, that is the goal. But getting to that point of being able to “sell the vehicle” takes more than just being a sales consultant. Hence, you have a department that feeds the sales consultants customers to sell vehicles too. Let the BDC handle/manage brand awareness, customer service, and lead conversion into the showroom. Imagine working with a customer whose defenses are lowered because they have already made up their minds believing you are advocating for them. 

Bottom Line: 

Instead of the conversation focusing on what is a BDC - the discussion should shift, and focus on what they can and have done to increase business? How has your BDC changed the way you do business at your dealership? Have you had a BDC that has failed miserably? 

Join the conversation here! 

We are all trying to hit our year-end numbers. And Internal RO’s are not a new topic. In fact, it is often a heated discussion that the fixed-ops and pre-owned sales manager have given that the sales manager's income can be slashed with mismanaged internal RO’s. It is essential that internal RO’s are tracked in so far as to what the average cost of labor is per RO including the markup for parts. 

Here are the top things to consider when managing internal RO’s 

State Inspections 

Every dealer handles the state inspections differently - depending on your state's rules - however, it is considered best practice to handle state inspections internally. Versus their having to outsource the inspection paying additional fees. Including insuring the vehicle as it is transported to and from the dealer. Not to mention, in most cases you are also having to pay for someone to transport the vehicle. All of which can add up costing thousands of dollars. 

How do you handle State Inspections?

Non-Recommended Work 

For those who are handling repairs internally, there has to be a clear executed policy regarding what additional work will and will not be completed. In most cases, it does not always make sense to spend additional money to fix an unnecessary repair. For example, if you notice that on most of the internal RO’s there are charges for wheel/ball bearings then it could be costing the dealer thousands of dollars - slashing through profits. As the internal RO’s should not count as “profits” in the service lane. I am not saying, though - that all wheel/ball bearing replacements are not necessary. I am offering - however - that the service department needs to be mindful of the unnecessary fixes ensuring that all repairs made were, in fact, a necessary repair. 

Who wants to spend $200+ dollars having a car detailed when you can have an internal team comprised of 2-3 people (at $10+ an hour) handle the job? On average, a dealer only nets $12 out of every $100 in sales. If you are out-sourcing and spending $200+ a car to have it detailed, then you are most likely losing money. And if you are not losing money then you could easily be adding money to your bottom line. It also affords the dealer the opportunity to use the position to handle other jobs at the dealership, which could include lot maintenance regarding the cleanliness of the vehicles. 

Standard Replacements (depending on age/mileage)

If you have standards in place regarding the replacement of windshield wipers & blades, it could save the dealer thousands of dollars annually. Also, the dealer should also have an agreed to brand - in most cases - non-OEM to save money, but ensuring that you are still offering a quality product for the customer. Not having a standard replacement policy in place can wind up costing the dealer hundreds of thousands of dollars in unnecessary costs. 

No Mark-Up’s

Marking up services/units for an internal RO is robbing Peter to pay Paul. Why would you mark-up a service to allow the service department to “net” off of an internal RO? Now - albeit, there has to be a labor cost. However, that labor cost should be a flat cost (per hour), which is deducted from the gross of the vehicle. This not only salvages the grosses on pre-owned vehicles but also lessens the recon cost on a unit. In addition to the fact that it will encourage productivity as they are only making money on labor. It will also encourage more upsells per advisor. If they know they are earning money off of an internal RO then why would they push themselves to sell more? As the internal RO’s could account for a decent portion of their monthly revenue. 

How many internal pre-owned cars do you handle a month? 

Bottom line not managing internal RO’s can cost the dealer hundreds of thousands of dollars in profits. There has to be a cohesive streamlined process, which will not just benefit the dealership's profitability but increase the overall productivity for service. 

How do you handle internal RO’s? Do you allow for there to be a markup for internal RO’s? 

Driving sales Executive Summit isn’t just for the top level executives. It's also for the influencers. The ones that are working on the dealer level making changes through process development, vendor management, and their various business management related duties. 

I started in the industry in 2012 - having just graduated college - with zero experience in the auto industry. I quickly realized the opportunities that were available. Seizing the moment, and developing not just a job, but a career. 

Three years went by, and I knew I wanted more. I wanted to push myself working with others who wear the same shoes, and several hats. That is other BDC Managers who know and understand the daily struggles. Whether that is juggling answering leads, managing marketing, to influencing and working with the managers to increase the sales consultant's performance. 

DSES was something I dreamed about getting to attend. Every time I had asked to go to a conference, it was shot down. But shot down with Merritt. There had to be a reason to attend other than a quick trip to Vegas. I agreed. And it wasn’t until after three years had passed that I knew what my ‘why’ was regarding training. Realizing that while I am quite young - this is a make it or break it moment in my career. It also showed that I am not just loyal, but I am invested in their company. 

This year marked my 3rd trip to DSES and second year as a Best Idea Finalist. I cannot say that I was not bummed out that I did not take first either time. But that is not going to stop me.  Instead, it pushes me (much like the other classes do at DSES) to revisit what my ‘why’ is, and what I can do to better/improve the way we handle and approach change in our industry.

This year also marks my 6th+ year as an auto industry guy - in these six years I have created a foundation. A foundation that affords new opportunities, classes, and experiences that will define not just who I am, but rather what I do - and will do. This, however, all stems from the energy, charisma, and excitement that DSES embarks! 

Whether you are a BDC Manager, HR Director, GM, or even a sales consultant - DSES is the place to BE in October. And not just for the conference, DS offers an extensive catalog of industry, defining, leading standards that define what the industry is and stands for. 

It is time you attend DSES, and understand what your WHY is and start being a DOER. 
See you there next year!

There is no doubt that money motivates many (not all) people. That said, the way you drive the advisor, however, should not be from the perspective of “you are a coin operator. The more coins I put in you - the more you will perform.” This mindset can create a hostile, ineffective, and dysfunctional work environment. In turn, it means that you can lose your most valuable asset: the Service Advisor. 

Instead of offering that s/he is a coin machine offer them a plan that *motivates* them on a consistent, manageable, level: 

Here are the top reasons to avoid the coin operator mentality: 

You Are A Machine, Not a Human: 

Just using the words “coin-operated” can not only come across as being degrading, but the words themselves have a deep connotation of “you are a machine. I run the machine by feeding you coins.” A more effective way of using this approach - in a more refined, diplomatic sense - is to offer that based on their skill set you have designed a plan that compliments what they are going to bring to the team. 

Merely rephrasing the logic into an approachable conversation not only emboldens the employee, but it gives them a sense of belonging. The more they feel that they are an integral part of the team the better s/he will perform. As not everyone is motivated by money, but instead they are driven by a sense of belonging: having a purpose within your organization. 

A Coin Machine Gets Jammed 

If you are so focused on just one or two tasks (as that is what the plan offers) then more often than not the un-refined process is reflected in the customer's experience. For example, if part of the coin operation is to process the customer through multiple steps then the way you approach the customer from everything to the greeting to the up-selling of the products can feel very forced. 

Albeit, there are specific steps the advisor should follow such as meet and greet, walk-around, findings, upsell, & active delivery. However, these processes are most likely ingrained in their minds. That said, this process should feel very natural. All of which translates to the customer. Offering them a pleasant experience. 

Burnout. The Fall that leads to Turnover

Burning out happens. We have all been there. You work yourself to the bone until there is just nothing left to give. You’ve checked out so many times that you have begun to lost interest and have lost your ability to connect with the customer, which is what offers the ability to sell the product as you developed, and fostered a relationship with the customer. 

The coin operator mentality does not afford the management style that encourages their employees to recharge, disconnect, and refresh. Taking a step back (or having the feeling that you are able to do so) is invaluable. As it enables your employee to refocus, and most importantly - reconnect.  

The Customer Feels It: 

There is nothing worse (or nothing like a lousy buzz kill) when you encounter a disgruntled employee. It is the worst. Everything from their frown to their lack of interest in assisting the customer. The customer does not just feel like the employee doesn’t care. They feel like YOU do not care. And while that is not the case, it is about perspective, no? 

I get it, we all have bad days. But that bad day is only amplified in a coin-operated world. The machine doesn’t have emotion. Humans do, though. 

Bottom Line: 

This is not to say that you shouldn’t offer a pay plan that incentivizes, encourages, or pushes your advisor to work harder. There is a difference, however, in how you present the pay plan. And the way the advisor feels about their contribution to the service lanes overall success. There are those that are motivated by money, which is just fine. It is not okay, though, when it comes solely about the pay plan and not the customer;  where they work the plan harder than the customer. 

Remember, the Advisors are on the front-line *advising* the customer on what is *best* for their vehicle. If they are operated on a coin-machine, then the coins will run out. Leaving a chaotic, disengaging, awkward experience for the customer. 

Are you a coin-operator? In retrospect, do you have success with this pay plan?
 

Another year has come and gone. The industry has seen ebbs and flows in business, and the service lane remains the dealers highest earning asset. As the year does come to an end, there are five things to keep in mind (and consider) when planning for the next year. And if you are not planning for the next year then you are not only missing out but most likely always working on plan C or even D! 

Here are the 5 things You Need to Review:

Staff/overhead the real cost of your employees 

It is normal for your staff count to fluctuate throughout the year as there are times where you need the extra manpower to handle business. However, at the end of the day, every dollar counts. It is best to look through your expenses in the lane vs. the staff costs. If the ROI does not make sense on what the position is focused on, then it is either a) a personnel issue or b) an unnecessary position. 

This does not mean that s/he is on the chopping block. It does suggest, however, that their position needs to be realigned with the current business needs. Remembering to show the employee that it is not a demotion or negative, but rather an opportunity to develop and improve. Creating a position that fluctuates with the business needs is crucial for a dealer to maintain a healthy profit. 

Marketing Landscape - there’s more than what meets the eye 

While 10B+ is spent in the Auto industry for SEO/SEM (paid search) what is spent on fixed-ops? The Service Lane marketing is just as important given it is an integral part of the overall ecosystem. 

It will take some time - trust me - but it is best to review all of the campaigns you did per quarter. Evaluating the ROI on each campaign, which will assist you in structuring the years marketing tactics. And while it is not necessarily feasible to manage the marketing calendar in one or two days. It is feasible to work on the year in quarters - as one quarter comes to an end, you review the ups & downs, and work towards forecasting and marketing for the next quarter. 

Team Building 

Even if your store is profitable - at the end of the day, people are human. Considering the hours, energy, and overall dedication they can burn out fairly quickly. To keep them at their optimal performance you have to work with them. Not over them, through them, around them - with them. 

Whether it is something as simple as a offering them a long weekend here and there. Or giving the advisor an extra day off each quarter. Encouraging them to use it as a day for personal development (how do you handle personal days?). This will not only make sure that the service lane is covered at all times. But that everyone is working at their best. 

Service Absorption Rate 

If your absorption rate is under/below 85%, then there is room for improvement. The improvement will most likely come from a) restructuring staff or b) realigning advertising costs. Working to ensure that overlaps are at a minimal and that the campaigns that are running are offering a healthy ROI. As your service lane increases their absorption rate of the company's fixed expenses, it affords the dealer to invest, develop, and - most importantly - increase their bottom line. 

Annual Data Cleanse

The dealer should cleanse the database, and understand how much raw data they truly have. When is the last time you did a data purge? That takes all “active/inactive” accounts and cleanse for emails, phone numbers, addresses, etc.? This will not only give you a better understanding of how many customers you actually have. But it will also help regarding your marketing efforts. It does no good to send an inactive customer email in whom you haven’t engaged with for 3+ years. Not only do you run the risk of hitting their junk folder. You also run the risk of getting blacklisted. 

How do you prep for year-end? Do you include the department managers in the meetings? Have you tried planning marketing for the year? 

Phone call quality is incredibly important, right? I mean the way your service advisor answers the phone - handling the customer - shapes the way the customer views your Service Department. 

So it is no wonder why dealers hire mystery shoppers or phone call quality experts to help them! The problem, however, is that all too often the GM or Service Managers are not on the same page or do not buy into the program. So then why would the advisor? It starts from the top and works itself down to the bottom. 

Here are the top reasons mystery shopping doesn’t work: 

What’s the end-goal? 

The trainer is not always the one to blame. In most cases, the dealer hires a training company who offers them a “fix.” That is training the advisors how to answer the phone, get the appointment, and most importantly - sell services! This all sounds fantastic, right? The idea that after having a trainer come in that your ROI will have a notable difference in the next month. But that is not how it works. 

If you do not have a clear expectation for what the mystery shopping will do for your service lane, then it becomes nearly impossible to track results. Not to mention, as a GM or Service Manager you might become frustrated with the program. All of which translates to the Service Advisor. 

Their Goals Aren’t Your Goals 

One training session is not going to fix all the issues. Most importantly, as mentioned above the change happens from the top down. That is the owner & GM being on the same page as to what the process is and should be at the dealer level. 

The trainer should use their materials in a way that compliments your process. Otherwise, you are sending mixed signals to the team which can cause a lack of interest or disengagement. That said, to have buy-in from the Service Manager I would offer that you ask him/her how you can help their team improve. Asking what some breakpoints are and how they can be addressed. 

Take a minute, and look at it from their perspective (with your thoughts), and this will help ensure that they feel a part of the process. Otherwise, they will become disengaged, which will be evident (again) to the service advisors. Not to mention, as the GM you too will become frustrated with the lack of improvement which can also cause a lot of dissension. 

Every Shop is the Same 

If your shopper fills out the same form, with the same questions, with the same process each and every time it becomes more apparent than the ever. And while there is the age-old argument of “if they know it is a shop they should knock it out of the park” it doesn’t work. The advisor feels beat down or worse - they feel like they are missing out on an actual opportunity to earn money. 

One of the things that a dealer should consider is paying their advisor to take the training for the day. So they do not feel as if they are “losing,” but rather you are investing in them. Offering them that you are cognizant of their being concerned with losing opportunities. However suggesting that the training will only help them increase their revenue.  

Coaching inbound calls 

This one is always the *trickiest* in that - in most cases - the Advisor is not *focused* on the customer whose on the phone. Instead, they are focused on what is in the lane in front of them. The customer who is standing at the counter also feels this pain. That said, the coach should offer two different types of critique. The first being that if they are on the phone (and a client pulls up), they gently address the customer letting them know that they will be with them shortly. 

The other being that if they do have a customer in the lane to get the customers information on the phone. Informing them that they will call them back in just a few minutes. The goal in this scenario is to offer excellent customer service to both customers. 

Bottom Line 

Before hiring a mystery shop or training company, the GM should write/jot down a list of items that they believe should be addressed. Have the Service Manager do the same. Compare the two lists and offer each person's perspectives. Working together to select which items take precedence. At that point, collaborate with a trainer & mystery shop company that understands your goals. Remembering that you shouldn't *bend* to their model. Instead, they need to work for *YOU*! 

Do you mystery shop your service lane? If so, what kind of pushback did you get, and how did you overcome that with your team? Do you think Mystery Shopping is a bust? 
 

We have all been there one time or another. That moment of sheer panic as we can’t seem to find our car. As we scour all through the parking lot - sweating - only to realize we had passed our car a few times. Whew, what a sigh of relief you feel as you get into your vehicle. 

Now in this situation, you might look back and laugh at yourself. I certainly did! But imagine if this instance was regarding the customer who just left your service lane. 

Where the advisor said: “Mr. Customer, (as s/he points to the direction of the vehicle) your vehicle should be parked right outside”  to which the customer just says “OK.” 

In most cases, the customer might just shrug it off - or not think anything of it - however, there are the times where the customer goes out and is unable to locate their vehicle. And rightfully so they become agitated, frustrated - with the worst part being that no one seemed to notice the poor customer wandering the lot to find their vehicle. 

The customer's car was actually parked at the entrance, but a large truck was parked on the side completely blocking the view. And given that the vehicle was at the entrance s/he did not walk-up far enough to see it. 

As a result, you bet we got slammed on a survey noting that while s/he had an otherwise pleasant experience that s/he was unable to locate their vehicle and that despite their wandering around no one seemed to take notice or help them. 

We have to ask ourselves,  is taking an extra minute or two not worth it? Or (better yet) are we that busy that we cannot take the time to ensure that our customer leaves happy? Going the extra mile and walking them out and/or completing an active delivery in the service lane? 

Here are a few things you can do to ensure that the customer is able to locate their vehicle: 

• When the customer checks in, be sure to ask if they are waiting or dropping off. If s/he is waiting, then offer to complete an “active” delivery. Given that offering an active delivery on all units might be too much for the lane. 
• For the customers who are dropping it off and picking up later - try your best to get a time frame such as after work, etc. You can then mark off a particular section of parking for late (after hours) pick-ups. Explaining to the cashier (or whoever collects the payment) where the customer's vehicle is located. 
• If your facility allows for it have the porter (or whoever parks the customer's vehicle for those dropping it off) write down which parking spot number the vehicle is in. This allows for either the cashier or advisor the ability to let the customer know where their vehicle is at delivery.

This all sounds simple, cheesy, or just too easy. But evidently, it is not. We get busy, and when we get busy, we often forgo the fundamentals of customer service. Resulting in the customer leaving frustrated. 

And as simple as “dude, where’s my car” can be in the scheme of life we live in the moment, and we also have the capability in curating that moment. Whether that is Tweeting a story, or creating an exaggerated, over the top Holly Wood production on FaceBook causing an unnecessary comment spree. The point is - we owe it to our customer, letting them know where their vehicle is parked. 

How do you handle customer parking for service? Do you have an Active Delivery? If so, have you seen a positive impact? 

Having a Social Media account is more than just adding photos, videos, or curating collective, effective content. Social media accounts develop, define, and test your brand’s image. An image that if not handled efficiently can change from good to bad to ugly in the matter of -seriously - seconds.

This article, though, is not meant to scare, intimidate or advise your dealer from having social media accounts. What it is offering, however, is that there ought to be guidelines in which the store has to follow. That includes the dealer having exclusive access, and ownership to their employees brand pages.

That is not a favorable statement for many. In fact, there has been much debate lately as to whether or not the dealer should have the right to ‘own,’ and/or remove social media accounts of past employees. Employees who have curated content using the dealer's likeness to build a customer base.

That customer base - while constructed by the employee - was built using the dealerships likeness, brand image, inventory, and digital assets. Whereas, in other business models there is a 1099 contractor who pays for their own advertising costs (including steep membership and marketing costs) for using the brand's image and likeness. Including, but not limited to following strict guidelines in content, brand image manipulation, logo manipulation, and inventory placement.

If that does not have you squirming a bit - here are the top reasons your dealer needs to have a social media policy.

Public Image Employee Branding Page Vs. Company Branding

Sure, John Doe is a great guy. He is the kind of guy everyone likes. John has 2,700+ followers on his Twitter account. With over 983 people talking about it. John is off to an incredible start. His customers are leaving rave tweets on John’s page. Sending him new clients every month!

This all sounds incredible, no? Every dealer’s dream come true. Free traffic. Well, here is the deal. No traffic is free. Not to mention, all of that ‘traffic’ that John has collected is not in possession of the dealer. Despite the fact that John used the dealer's likeness, assets, and public image to promote himself to sell the brand.

So, meanwhile - one day John gets involved in a public Twitter war where his words were not chosen so wisely. Despite the fact that John deleted the Tweets making his account private the damage has already been done.

Customers then start to slowly disembark themselves from wanting to be involved with your brand or John.  Leaving you on the outs! Think this doesn’t happen?  How many celebrity endorsements have been damaged or have damaged brands?

There are two types of social image brand damage: Company Damage & the Wrong person handling the Issue

Just this past month a Florida dealer was in the eye of a social media frenzy, well a storm actually. The dealer was accused of parking their vehicles at Florida State University (using their parking garages) - FSU, had made a statement offering its students/public had access to their parking garages to seek shelter for their vehicles. With the number of vehicles parked in the garage from the dealership, not all students were able to secure their vehicles for the storm.

This resulted in a nasty, 400+ negative review spree - including hundreds of negative comments on their brand's page. And to make matters worse their response was not necessarily offering an apology, but rather their ‘support’ for the school, and their being unaware of it being an issue. Despite there being two sides to every story their brand was at the height of a social storm one that can leave a damaging aftermath.

Now, just as I mentioned above, the person who handled this situation at the dealer level might not have been the owner or the one who was to have made the decision. However, because the public ‘viewed’ him/her as the brand representative, all the damage was reflected towards the dealer. Not to the employee who handled the situation.

All that to say regardless of whether the employee is branding their own page or managing the dealers page all of the ‘content’ that is posted is - in most cases - directly reflecting your brand's image.

Data Property - Who Owns the Data?

Dealers are spending thousands and thousands of dollars monthly to promote their brands. In recent NADA studies - customer acquisition costs are at an all-time high costing a dealer more than $650 to sell a vehicle.

With the costs at an all-time high, are employees brands page’s customers the dealerships or their own?

The dealer is still paying for the image, likeness, inventory, and - most importantly - dealing with the liability for their pages. That said, think about it (as mentioned above) those 1099 companies/business models such as AVON, Mary Kay, ReMax, Plexus Slim all require their subcontractors to use their sites. And beyond the website, they are also required to use their social media guidelines. In addition to most likely having to pay a royalty fee for using their public image, and likeness which is what results in their acquiring of new customers.

While I can sympathize with the employee whose efforts are there - like the ones that are creating their own brand page - the fact still remains that if it weren’t for the dealer's inventory, image, brand assets you wouldn’t or in most cases couldn't afford to acquire new customers. Not to mention manage (or pay for) the floor plan that is substantiating the steep costs of managing millions in inventory.

OEM Compliancy

More often than not people do not understand just how much there is involved when it comes to creating, developing, and curating content that is compliant with your OEM. Everything from the font, images, logos, pricing, and disclaimers have specific credentials. If your employee - who is managing their own page - does not give the dealer access, it opens up a can of worms regarding the brand.

For example, John Doe decides that they want to build some weekend business with offering a coupon (no harm no foul, right?). A coupon off the already low internet price for both new and used.

Unbeknownst to John, the OEM states that if offering a coupon on the sale of a new vehicle the coupon has to be off of MSRP - not the internet price.

The OEM flags the ad, and before you know it you’re receiving a strike (or whatever the fine or process is with your OEM) for failing to comply. Yet, you were unaware. Now, imagine if your brand only allotted just 3 strikes. And if receiving 3 strikes meant that you weren’t eligible for a brand program - you’d have the potential to lose hundreds of thousands of dollars as you were not aware of the branding going on regarding private accounts.

If that does not have your attention not sure what else would!?

The Bottom Line

The bottom line is that while you are not wanting to discourage the use of social media, there has to be a clear, concise policy that is tailored to your brand. This will ensure the protection of your brand's image while promoting it in a healthy, stable, but effective way.

Not having standards & guidelines other than ‘ethical’ guidelines, which includes, but is not limited to the acts of racism, and sexual harassment.  There are other things to consider such as a controversial brand you might not support, but your employee still  ‘likes/supports’ the brand on his/her page, which still reflects your brand.  That alone can cause quite a bit of controversy.

I encourage you to check out what's being said about your brand. Not just on your store's page, but on pages that are using your brand. I am confident that you will be shocked to see how many pages and social media accounts that are out there that you were completely unaware of - that includes former employees who might still be acquiring customers from your brand! (who handles your off-boarding process?)

How do you handle social media at your store? Do you allow employees to have and manage their own pages? If so, what guidelines or policies have been implemented?

OEM’s are continuing to develop Electric Vehicles, and while they are not dominating the market quite yet - it is important to take note on how they will - in time - affect the service department. Namely, dealer service centers will have to start taking notice of the EV trend and shift the services they offer to both accommodate the market and their new customer. Of course, while maintaining their profitability.

Electrek suggested that electric vehicle sales grew over 40% from 2012 - 2016 within the U.S. This is a staggering percentage - while it does not seem (on paper) large enough to shift both the conversation and services offered. It does suggest that dealers (especially those with OEM’s who are heavily pushing production) should start to entertain how they will provide services for their customers who have EV’s.

Here are the top items to entertain when discussing the servicing of Electric Vehicles within your service center:

Electric Vehicles Still need Service (but is there a catch?)

Just because the vehicle is electric does not mean that it is free of required services. And while it does not require oil changes or spark plugs - it will still need new brakes, ball joints, shocks, tires, cabin filters, and lastly it will, of course, have *more* electronic components. Components that will inevitably malfunction at one point or another requiring service.

That said, dealers will still be able to sell service agreements for these vehicles. Besides, when is the last time a dealer said: “oil changes are incredibly profitable.” With many dealers giving away oil changes to “retain” the customer.

Lastly, the OEM will still have required/suggested service intervals. Those intervals, though, will be focused on maintaining the vehicle.

Restructure Dealer Rewards Program

It is no secret that your dealer rewards program can be costing you thousands of dollars to run. Everything from the free oil changes to keep the customer in retention per the OEM’s guidelines - to the steep discounts you offer with coupons. All of which shaves money off your overall bottom line.

With the electric vehicle - you can restructure the rewards program to increase profits. The customer will still have to maintain their vehicle, but you do not have to give away free batteries, windshield wipers, brakes, etc. Instead, you can create service contracts that essentially become residual income. Offering the customer “rewards points” much like other brands do - such as “earn %” back on your purchase. In turn, allowing the customer to collect rewards points towards their service bill.

New Services that Dealers Can Make Money On

All things electric require knowledge and the ability to operate them. The customer - who will get a demo at the time of delivery - might require additional training on their vehicle. Dealers can (depending on location, etc.) offer in home services/tutorials for the vehicle. Charging the customer for the service. (No customer is going to pay for that, right?) Well, you’d be surprised. People do spend hundreds of dollars going to Apple’s Genius Bar to learn more about their ‘electronic’ devices, no?

Another component that the dealer will continue to make money on is the selling and maintaining of the vehicle's battery. Selling the customer an in-home charging station, which for those (even with extended mileage) will still most likely consider purchasing a charging system.

The takeaway from this is that while the electric vehicles do not own the market for now.  There will be incremental increases year over year. OEM’S will continue to promote and develop the electric vehicles. All of which is shifting the consumer's mindset as to what it has to offer - especially because anxieties are down regarding the range that the vehicle has to offer! 

It is better to join the conversation now than wait until it’s too late having developed an incremental plan that is both lucrative and adaptive to the current trend in the market. 

How do you handle EVs? Do you know how many you service daily? What are your thoughts on EV’s?