We’ve discussed the 7 topics that we believe are going to be affecting automotive retail for the next 3-5 years. These hot topics will be the primary discussions at Presidents Club, where you can give your input as well as hear from other dealers what they think the best options are. It will be the perfect event to shoot around ideas, and come up with a specific plan for your unique store so you know how best to move forward. You can register for Presidents Club here.

Along with our previous article, we conducted a survey about what your dealership is doing to start tackling these challenges. The results are in, and it’s clear that not all dealerships are looking at these topics the same way, but it’s obvious that many understand that there are hurdles ahead and the best way to be prepared is to start facing these challenges now.

Used Vehicle Strategy

We asked dealers what their used car strategy looks like currently to evaluate what the majority of dealerships are finding effective. Here’s the breakdown:

What really surprised me is that putting new cars first, as well as focusing on used cars first were both in the top 3 responses. To me, these seem like polar opposites. The question now is, which one of these strategies is more effective for the bottom line? I personally think that depends on the type of dealership, but perhaps time will tell. I think it’s also really valuable to recognize that marketing trade-in opportunities are a very popular option, and for many it’s the most important option.

Fixed-Ops Marketing

We asked dealers what strategies they have added to improve their fixed-ops marketing. Here’s the breakdown:

Again, the responses here really surprised me. Overwhelmingly dealers said they are turning to social media to work on their fixed-ops marketing. What I find interesting is that while dealers are looking to social media to get the word out, they may not realize that the same customers that find them on social media won’t hesitate to return to social media if they have a less than fantastic experience. I think it’s also valuable to note that quick lube bays are a popular addition for many dealers, and likely will continue to be well into the future.

Retail Threats

We asked dealers which competitor they thought posed the biggest threat to the traditional dealer model. Here’s the breakdown:

What I found surprising about this answer is that third-party online retailers, and big online retailers both took the stage. Dealers are finding that these online retailers, whether Amazon or other 3rd party sites, are their biggest competition. Is this always the case? I believe that direct from OEM and non-traditional car ownership pose additional huge threats, but because those technologies aren’t as prevalent today as online retailers, perhaps that’s why dealers view them as less threatening.

Millennial Buyers

We asked dealers what they think is different about millennial buyers. Here’s the breakdown:

Overwhelmingly dealers agreed that millennials have done more research when they get to the store, which I completely agree with. I also think though, that it’s not just millennials who have done their research when they get to the store. With the easy access to reviews and social media online, people of all ages are taking advantage of research opportunities. Dealers also largely agree that millennials want a more fluid sales process, which I also agree with entirely. Millennials are used to purchasing things in a couple of clicks online, they can do all their research and make a decision in a short period of time. Car buying can be dragged out and far more complicated than most buying processes, and they’re looking to cut that time and energy down.

Mobile First

We asked dealers what they were doing to their website to account for the fact that more people are visiting dealer sites on mobile, rather than on desktops. Here are the keywords that many dealers mentioned in their explanations:

• Cleaner design
• Calls to action
• More buttons
• Fewer clicks
• Responsive design
• Mobile and desktop compatible web provider
• Exposure

These words tell me that dealers understand that many people are visiting their sites, and they recognize the kinds of elements webpages need to succeed on mobile. It also appears that dealers are looking for website providers that can help them accomplish the mobile design they’re wanting, along with a different and successful desktop.

Customer Experience

We asked dealers what investments they’ve made to improve customer experience. Here are the keywords that many dealers mentioned:

• Service
• Processes
• Sales
• Hiring and retention
• Advertising
• Customer Store

These keywords make it apparent that dealers are trying a variety of different things to improve their customer experiences. It appears that dealers all have a different area of weakness that they are working to strengthen, and no matter what kind of dealership you have; customer experience can always be improved. Processes and hiring are huge in my mind, as these  are more permanent elements that will help improve other areas of your dealership and customer experience.

Motivation And Hiring

We asked dealers what adjustments they’ve made to improve salesperson motivation and hiring. Here are the keywords that many dealers mentioned:

• Process
• Salary
• Bonuses
• Competition
• Coaching
• Certification

I think it’s valuable to note that many dealers recognize that salary and bonuses can be a huge motivation, but it’s not the only motivations. Finding good processes, giving good coaching techniques and getting salespeople certified are all ways to work on motivating and retaining salespeople. These elements are vital in keeping the best kind of employees around.

These seven topics are ones that we at DrivingSales view as incredibly valuable for dealers now, and in the years to come. So what else can your dealership to do work on these?