The traditional 12-step "Road to the Sale" guidelines are out, and the Path to the Customer Purchase is in.

In a DrivingSales Webinar, MaxDigital says the reason the 12-step road to the sale doesn’t work is because it focuses on the way dealerships sell cars rather than the way consumers buy cars.

"If we think about the way a consumer does a lot of commerce today online, It's they way they want to do business. We need to think differently too about the customers road to the sale. Or what we (MAXDigital) call the Path to the Purchase."

The Path to Purchase should replace the Road to the Sale according to Patrick McMullen, SVP of Strategy and Innovation at MAXDigital. The main ingredients for the “Path to Purchase” model are two things.

"They (successful dealerships) infuse trust and confidence at every point of the car buying process."

To really be succesful, your store needs to bring trust and confidence into 6 different “P” steps: Your people, your process, your product, your pricing, your payment and your protection.

"Using trust and confidence in every single one of these elements is how they (successful dealerships) get to those great results."

By embracing the Path to the Purchase McM

ullen says your dealership will see an increase in profit, "Using the Customers Path to Purchase is how you create the experience customers want. AND the sales and profit that you want in your dealership."

This has been a quick recap of our most recent webinar. you can click HERE to watch the MAXDigital webinar in its entirety.

And you can click HERE to join us in our next FREE webinar about using artificial intelligence ads and social media to ramp up your sales.

The DrivingSales Executive Summit is nearly two months out. To get you ready for the conference, we're giving you a taste of the presentations each week leading up to the event. This week we are introducing you to breakout speakers in our Human Capital category.

First up is Katie Wagner, the Director of Business Development at the Johnson Motors & Ford Group.

Katie Wagner started her Automotive Career as a part-time receptionist as a way to pay for college. Ten years later she has grown into Director of Business Development at a successful automotive group in the Midwest.

With a focus on big data and marketing, Katie oversees the Centralized BDC that she built from the ground up. Working to help her team be the best in the industry, Katie takes pride in her team’s ability to create an experience that makes it worthwhile for customers to travel 2-3 hours (one-way) to do business at her stores.

After attending this session, you will:

• Have real-world suggestions on how to hire, recruit and train BDC Agents.
• Know how to reward performance and creativity.
• Gain insights on building a tailored career map for employees.

With my 10 years experience in the automotive industry I know what it takes to develop train and maintain a successful business development center.

Attend my session and learn how to really develop the business development representatives within your department.

The strategies I will give you, can be taken back to your dealership the next day and you will see immediate results.

So bring a pen and paper and get ready to have some fun!

Wagner will be speaking on Day 3 of the #DSES; October 23, at 9:50 A.M.

While electric and autonomous vehicles remain in development, Germany is pushing the envelope when it comes to futuristic tech: exploring the possibility of flying cars.

The German government signed a letter of intent with Audi and Airbus SE executives to “test air taxis” in and around Audi’s hometown of Ingolstadt.

The Urban Air Mobility project was announced by Audi interim CEO Bram Schot, Federal Minister of Transport Andreas Scheuer, Airbus CTO Grazia Vittadini, Mayor of Ingolstadt Dr. Christian Lösel, and other representatives.

“We welcome the involvement of the city of Ingolstadt and support the development of the region as a test field for air taxis,” said Schot.

The trial is intended to counter clogged city roads and “unlock new growth potential” for Germany’s high-tech industry, the government’s press office said in an emailed statement on Wednesday.

“We would like to use our know-how to improve urban life, and aim to develop new mobility concepts for cities and people’s various needs with the Urban Air Mobility project,” said Schot.

While flying cars may seem far off in the future, they could become a reality sooner than you think. At the Geneva Motor Show in March earlier this year, Audi, subsidiary Italdesign, and plane-maker Airbus SE unveiled their mobility concept: Pop.Up Next, an “an all-electric, fully automated concept for horizontal and vertical mobility.”

Volocopter GmbH, a German startup backed by both Intel Corp. and Daimler, has built a “drone-like electric helicopter” that can ferry passengers across the city sky – and has already completed test flights. Volocopter GmbH hopes to offer the first commercial trips in the next three to five years.

“Flying taxis aren’t a vision any longer, they can take us off into a new dimension of mobility,” said Scheuer. “They’re a huge opportunity for companies and young startups that already develop this technology very concretely and successfully.”

Media outlets from around the automotive industry show their support for the DrivingSales Executive Summit #DSES

8/8/2018 - Salt Lake City, UT. -- DrivingSales is pleased to announce the media sponsors for the 2018 DrivingSales Executive Summit. The sponsors are WardsAuto, AutoConversion and DealershipNews.

The DrivingSales Executive Summit (#DSES) is the premier event for dealership professionals to improve your dealerships and advance your career.  We strive to pull a mashup of progressive topics, leaders and speakers that are changing the dynamic of business. Inside and out.

Our media sponsors support our drive to create the best innovative automotive conference each year. Having attended the event in the past, all three are excited to attend DSES on October 21-23 at the beautiful Bellagio in Las Vegas, Nevada.

“WardsAuto supports industry events which drive education, provide a collaborative environment, and deliver a high-protein dealer audience. DrivingSales Executive Summit does this and more.” Said Larry Schlagheck of WardsAuto. “We’re proud to be associated with DSES again in 2018 and look forward to helping promote this all-important industry event.”

Kelly Kleinman, a frequent contributor to the DrivingSales community, and Director of Digital Content at DealershipNews.com said, “DealershipNews.com is thrilled to be attending and supporting the Driving Sales Executive Summit - THE automotive industry platform for the exchange of ideas and best practices like no other!”

“AutoConversion is looking forward to another fun, meaningful, and insightful time at the Executive Summit,” said Ryan Gerardi. “During the DSES we will be streaming Live Interviews inside the exhibit hall and in the halls outside of the breakout session rooms. If you'd like to block a 15-minute time slot to be featured in an interview then follow this link. Fore more information about what we do please visit our website.”​

About DSES

We attract the leaders in the industry that have the best-practice applications for your store.  Network and share knowledge with your progressive peers in this interactive, immersive event. By attending DSES, you will be armed to thrive in today's automotive landscape.

This year, we'll be discussing the challenges and opportunities around:

• AI (Artificial Intelligence and ML (Machine Learning), both theory and application.  Where is this technology headed, how far away is it, and how can a dealership utilize it to improve the customer experience today?

• Brand differentiation.  In a world of OEM mandated marketing constraints, how can you tell a brand story and dominate your PMA?  How can you stand out and still be compliant?

• Decision-making.  How to decisively chose the strategies and tactics that are the best for your business.  Are you pulled in an myriad of directions? How can you identify what to spend your valuable time and resources on to achieve the best results?

At this insight-packed 3-day summit, you’re going to hear from experts (inside and outside of the auto industry), so you can learn the latest techniques and trends in dealership growth. And there will be plenty of opportunities to network, get your questions answered by industry leaders.

Women aren’t even represented by 1 in 5 employees inside the dealership world. And that number is even smaller when it comes to women in positions of leadership inside this industry. However, in the last few years there has been a push to create an environment of inclusion for women in the automotive industry. Today I'm introducing to you to one of the Women leading that charge.

Meet Kathy Gilbert. Currently she is the Director of Sales and Business Development at CDK Global. She is also an advocate for all of CDK’s minority and women owned dealerships. On top of that, Kathy also helped found the organization, Women in Automotive.

“I have been passionate about advocating for women from the beginning, it’s been a long time," She told DrivingSales News.

In the automotive industry for 24 years Kathy has noticed a few trends that are keeping the dealership environment the boys club that it’s always been perceived as.

“I think the number one thing is the automotive industry is a male dominated industry," Kathy said. “The culture in some dealerships is one where they don’t given women the respect they deserve.” 

But there are ways to fix these problems and make the industry a place where women want to be and want to lead. She says It all starts with the women who are already here and they need to speak up. If you’re not sure if you can speak up, or if what you have to say has value, Kathy has this advice, "be authentic. You have something to say.” 

She tells the women she mentors that sharing experiences, and thoughts, will give you trustworthiness, “Once you start talking about what you do, people believe you and you have credibility and it just works.” 

What you have to say matters, even if you don’t have all your T’s crossed and I’s dotted.

"You don’t have to know everything. What worked for you may work for someone else. You just have to be open enough to let them hear your story," Kathy said.

Finally, doubt can creep in while trying getting a seat at the table and representing yourself as a leader. But Kathy says to trust yourself and just do it.

"Once you start speaking it gives you the confidence to keep speaking. Once you step up it gives you the confidence to keep doing that. You’ve gotta get past that initial oh wait i don’t know. Once you get past that initial and you speak up, and speak your mind it get’ easier to do."

It’s a common question, are salespeople born or made? According to one automotive VP It’s a little of both. But one is more important than the other.

"I think best sales people are born with innate skills that are going to lead them to success."

Matt Weinberg is the Vice President of Customer Experience at Drive Motors. Before working for Drive Motors Weinberg spent many years in dealerships, and consulting for dealerships. During that time he hired and interviewed many sales people.

"When interviewing for salespeople I look for the five C’s: Candidness, confidence, competitiveness, communication and charisma."

He says the five C’s are characteristics all sales people must have. Some of them are learnable traits like communication. But the more important ones like confidence and charisma are innate.

"You have it or you don’t. Charisma is important because... people buy cars from people they like. If I have charisma I'm going to connect with more people and will get more sales."

Outside of the five C’s Weinberg says a good sales person will pass a test he throws into the interview to throw people off.

"What I will do later in the interview after building some rapport, I would say 'Hey Sherri you know, I enjoyed our conversation, you’re great but I’m just not seeing you as a superstar sales person.' Then I'll pause and shut up and see how they respond."

Weinberg goes on to say If a person gives up and says something like 'Okay. Thanks for the opportunity," He knows for sure that person won’t survive the sales floor. The point of this challenge is to test rejection skills.

"What I‘m looking for when I do this test is to see how will they respond to rejection and see how confident are they. You’re putting them in a tough spot. But that's the purpose. How will they respond?" Weinberg said. "If they ask questions like 'Why?' or 'What makes you think I’m not great?' Then I get huge smile because this person will be successful and didn’t crumble under rejection or questioning."

How do you hire for sales? What’s your secret question or traits you look for?

Although official numbers aren’t in yet, new car sales for July are expected to be lower this year than they were last year.

The July LMC Automotive and J.D. Power Forecast  predicts sales are projected to reach 1,156,200 units. That is a 3.2% decrease compared with July 2017. July will also mark the 5th time sales have dropped this year.

Jeff Schuster, President, Americas Operations and Global Vehicle Forecasts at LMC Automotive, said that's not totally shocking, “With the first half of 2018 being slightly ahead of volume expectations, the second half is poised for a pullback from the robust second half of 2017. July’s expected performance is consistent with that notion.”

Even with lower July sales, there is a silver lining according to J.D. Power.

“While it’s disappointing for the retail sales pace to post declines again, it’s important to remember that July only has 24 selling days this year, the fewest for the month since 2012 and one less weekend than last year,” said Thomas King, Senior Vice President of the Data and Analytics Division at J.D. Power.  “More notable is that incentive spending is on pace to post year-over-year declines for the first time in 54 months.”

After 54 consecutive months of year-over-year increases, incentive spending is forecasted to fall by 5% this month. Incentive spending through the first two weeks of July was $3,665 per unit, down $204 from the same time last year.

Potential tariffs and taxes coming down the line could also be causing a fall in sales Schuster said, “Short-sighted tariffs—and retaliatory responses—are the most significant risk factor for the U.S. and global markets. In fact, significant escalation of tariffs could derail America’s strong economic growth and even push the market into a premature recession.”

But not everyone feels that way. Cox automotive has a different theory.

“The U.S vehicle market remains strong and all the talk of higher interest rates and trade tariffs are not chasing away buyers,” said Charles Chesbrough, senior economist at Cox Automotive. “In fact, the threat of higher prices on the horizon may be driving more shoppers to the showrooms now.”

Overall, July started strong with Fourth of July sales and soon after, sales dropped. Manager of industry analysis at Edmunds, Jeremy Acevedo,  says this will be the trend for the rest of the year, "Sales likely slowed down due to a dry-up of deals as automakers wrapped up Fourth of July sales," said Acevedo. "As consumer wallets get increasingly squeezed by rising prices through the second half of the year, holiday sales events may play an increasingly significant role in getting shoppers to the dealership."

Soon there will be new ways for you to advertise on a few platforms that will create an experience for customers using augmented reality (AR).

Recently Facebook announced a new way to advertise using AR. The purpose is to make ads interactive as they have found experiential ads are ten times more effective than other types of ads.

To test out the AR feature, Facebook is partnering with Michael Kors for customers to virtually try on sunglasses. But FB will soon reach out to new industries, and the auto industry isn’t far behind.

Currently Facebook Messenger’s augmented reality program is partnered with Kia for customers to experience their possible future car right in their driveway.

Facebook isn't the only social media experimenting with augmented reality advertising. AR has also made its way to snapchat. The basic AR filters are getting an upgrade. Now users can explore custom created lenses made in their area.

So what does this mean for dealers??? 

Now you can create a filter for your dealership that every Snapchat user in your area could see. That gives you a new way to interact with potential customers on another level.

What are some ways you can see your dealership implementing augmented reality?? Or are you already doing it??

Let me know in the comments below.

Automotive manufacturers in the United States are protesting potential tariffs and taxes on imported auto parts with the hashtag #DontTaxMyRide.

The hashtag started trending in the automotive world just before the weekend at a rally intended to dissuade the U.S. Department of Commerce on proposed tariffs by President Donald Trump.

President Trump believes foreign auto imports are a threat to national security. If the Department of Commerce agrees, a 20% tariff will be placed on all auto imports.

Association of Global Automakers and Here for America hosted the rally. Here for America is an ally of international automakers and dealers. Here for America believes these international automakers are integral to the success of today’s U.S. auto industry as they directly employing 1.29 million Americans, and indirectly affect the employment of 7 million other auto industry professionals.

More than one hundred international auto employees pulled up to the U.S. Capitol in a caravan of American made vehicles. Also present at the rally in Washington D.C. were Members of Congress from high auto-production states: Congressman Drew Ferguson (R- GA), Senator Doug Jones (D-AL) and Congresswoman Jackie Walorski (R-IN).

“Alabama’s booming automotive industry supports 57,000 jobs and is responsible for $11 billion in exports annually,” said Senator Doug Jones in a press release (D-AL). “If enacted, the proposed tariffs could not only stifle one of our fastest growing industries, but they could threaten the livelihood of millions of Americans who depend on this industry to provide for themselves and their families.”

On social media, automakers were very vocal about #DontTaxMyRide. Kia, Honda and Toyota are all against any potential tariffs. Honda employees were at the rally and on twitter said these tariffs would have a huge negative impact on sales.

Honda associates from our auto plants in Ohio, Indiana, Alabama and Georgia are in D.C. today sharing how #autotariffs would negatively impact our entire U.S. operations, from the production floor to our dealerships. #DontTaxMyRide pic.twitter.com/hliqXtzJ9a

— Honda In America (@HondaInAmerica) July 19, 2018

Toyota also got in on the action, having meetings with senators all day Friday against Tariffs.

The more than 8,000 Toyota team members at our Georgetown, Kentucky plant manufactured more than 550,000 vehicles in 2017. #Tariffs could threaten our growth & investment. https://t.co/qsw2tRSLv3 pic.twitter.com/NtVYCrHITd

— Toyota Policy (@ToyotaPolicy) July 19, 2018

The decision to put tariffs in place will happen by the end of the year if the U.S. Department of Commerce investigation concludes and says international imports are a threat to our security.

What do you think about potential tariffs? Do believe foreign auto imports are a threat to national security like President Trump says?

Today the President and CEO of the American International Automobile Dealers Association (AIADA) testified in front of the U.S. Department of Commernce in favor of the international auto retail industry and against potential tariffs.

Cody Lusks testimony was given during the section 232 Automobile and Automotive Parts Imports Investigation. This investigation is happening to decide whether or not tariffs should be placed on foreign auto imports.

His comments focused on the 577,000 jobs provided by America's 9,600 international nameplate auto dealers in their communities, the vehicles they sell to consumers, and how they would be negatively impacted by new vehicle tariffs.

Lusk told the Dept. of Commerce that imported auto parts are not something that need to be worried about. In fact, He said we should be worried if tariffs go into place, “AIADA ... strongly support(s) a pro-growth economic agenda, and believe it can be accomplished with a positive trade message, not the threat of tariffs. Trade keeps our economy open, dynamic, and competitive, and helps ensure that America continues to be the best place in the world to do business."

The reasoning behind his lack of support for tariffs is in the numbers, “As data shows, over half a million Americans stand to be adversely impacted should 25 percent
tariffs be put into place on imported autos and auto parts,” Lusk said. “A recent study by the Peterson Institute for International Economics (PIIE) found that if those tariffs go into effect, there would be a total of 195,000 American jobs lost. Additionally, should countries then retaliate in-kind and place tariffs on the U.S., the job loss would more than triple to an astounding 624,000.”

Lusk also spoke about tariffs and the effect it would have on consumers as a tax, saying taxes would severely negatively impact the auto industry as a whole, “When the cost of new autos rises by even the smallest amount, via regulation, tariffs, or taxes, auto dealers become concerned that those new costs will reduce sales,” he said. “Tariffs that take the form of taxes on consumers would significantly impact new car sales through higher prices, reduced demand, restricted choice, and new obstacles for customers seeking auto loans. Reasonably priced new cars keep American families safe on our roads, allowing them to travel to and from school, work, and community events. When Americans are priced out of safe, affordable transportation, those who least can afford it will be the first to suffer.”