How Do You Prosper in a Plateau Environment? Adopt Digital Retailing Now

With digital retailing, dealers can turn inventory up to five days[1] faster while making consumers happier.

NEW YORK, April 11, 2017 – At the 2017 Automotive Forum in New York City, Cox Automotive COO Mark O’Neil issued a call to action:  “Adopt digital retailing now or get left behind.”

In his speech, “Connected Retail:  Deals in the Digital Age,” O’Neil provided a game plan for dealers wanting to prosper in the current plateau environment. Though he predicts that completing deals 100 percent online is approximately a year away, O’Neil highlighted the advantages of early adoption. O’Neil outlined several existing digital retailing tools that dealers can implement now as they move toward click to buy. One of the biggest objections to digital retailing from dealers is putting F&I information online, but Cox Automotive research[2] shows that 83 percent of consumers are interested in learning about F&I products before entering the dealership.

The following digital retailing tools can speed up the sales process while providing consumers the option of performing tasks online at their own pace and from anywhere:

• Negotiating the deal including a real payment;
• Securing financing approval;
• Researching F&I products and choosing them online; and
• Receiving a real offer for their trade-in.

“Click to buy is definitely where we want and need to go in automotive,” said O’Neil. “Success in retail can only be achieved by giving consumers options that enable the buying experience that they want. The beauty of digital retailing is that it is a win-win. Consumers are happier3, and early studies show that digital retailing tools can help dealers turn inventory up to five days faster1 as compared to traditional sales.”

O’Neil explained that Cox Automotive data and industry insights show that consumers continue to be frustrated with several aspects of the car buying process. According to a recent Cox Automotive study[3], shoppers spend the majority of their in-store time at a dealership on an emotional rollercoaster that has a deep valley of negative emotions.

“If an amusement park only had one ride and it was a rollercoaster that was mostly flat, not many people would choose to go there,” said O’Neil. “In this case, consumers are spending too much time in activities that are not a fun part of the car buying process. We know that technology can make the buying process enjoyable and can improve the dealership’s effectiveness.”

He explained how various industries have created positive digital buying experiences that consumers want, including:  Amazon, Domino’s, Rocket Mortgage and Zappos. All of these retailers use technology to enable a customized, fast and transparent buying experience that removes friction from the buying process while improving customer satisfaction and loyalty.

By digitizing tasks in the buying process, consumers can spend their in-store time doing activities that research1 shows create positive emotions, such as:  meeting an informed salesperson; test driving the vehicle; and taking delivery of the vehicle; and learning about its features and technology.

About Cox Automotive

Cox Automotive Inc. is transforming the way the world buys, sells and owns cars with industry-leading digital marketing, software, financial, wholesale and e-commerce solutions for consumers, dealers, manufacturers and the overall automotive ecosystem worldwide. Committed to open choice and dedicated to strong partnerships, the Cox Automotive family includes Autotrader®, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, vAuto®, Xtime® and a host of other brands. The global company has 33,000 team members in more than 200 locations and is partner to more than 40,000 auto dealers, as well as most major automobile manufacturers, while engaging U.S. consumer car buyers with the most recognized media brands in the industry. Cox Automotive is a subsidiary of Cox Enterprises Inc., an Atlanta-based company with revenues of $18 billion and approximately 60,000 employees. Cox Enterprises’ other major operating subsidiaries include Cox Communications and Cox Media Group. For more information about Cox Automotive, visit www.coxautoinc.com.

Presidents Club was a CRAZY busy day and a half, but we all learned so much in the short amount of time we were there!

From Jared's beginning keynote speech, to an afternoon full of workshops and learning, to a fantastic closing address by David Mead, the entire thing was a great opportunity for learning and growth.

So I've compiled some of my key takeaways from the event, and my conversations with dealers and vendors alike about the industry.

• Innovation Is Happening Now. If you're not willing to adapt with the market, to learn and grow today, you're already behind. Jared and many of the workshop presenters talked all about innovations coming to the auto industry, as well as the innovations that are already upon us. There's a huge value in being willing to progress!
• Change Doesn't Have To Be Intimidating. Many of the workshop presenters spoke about small things that you can start doing right now to get your dealership on the path towards upward progression. From re-evaluating your used vehicle strategy, to timing your process, to asking your vendors if they can analyze SEO and digital marketing more in-depth, there are a dozen things that you can start doing to make positive changes.
• Millennials Aren't The Only Ones. We talked a lot about how to market and get millennials involved in the dealership, but we also talked about the reality being that EVERYONE has the technology and resources to research and understand the process. This means that we have to change up our customer experience to be able to connect with everyone.
• Get Back To Basics. While Presidents Club talked all about the innovations coming in the future, there was also a huge emphasis on the importance of using these innovations to help us get back to the most basic and important elements. Customer service, the sales process, transparency, and more were all discussed as basic principles that we can work to improve on.
• Culture Is Key. David Mead spoke extensively about culture and making sure employees are taken care of first. Dealerships can be rough places to work, but there is such a value in helping people love coming to work, in them feeling safe and confident in their abilities and the people they work with. If we learn to take care of our employees, they in turn will take care of the customers! 

A crazy 48 hours in New York with great food, and great company, really opened my eyes about what the auto industry is becoming. It introduced me to so many people who are leading the charge for the automotive future. And I frankly, couldn't be more excited with where we are headed! 

2017 MVI WINNER

Congratulations to Ian Cruickshank from Speed Shift Media who is the 2017 MVI Winner! Read about his project below:

“How Well Does Dealership VDP Engagement Correlate to Car Sales?” Speed Shift Media, Ian Cruickshank.
It’s suggested now that lead forms are dead and VDP engagement should the main metric to measure. But without the form submission, how can we be certain that someone is interested in our inventory? Find out how well VDP engagement correlates to vehicle car sales at Presidents Club.

An additional huge congratulations to our two other finalists:

“Prioritize Your Prospects: Uncover Clues to Predict Who Will Buy Next” AutoLoop, Doug Van Sach.

Each year, the average customer test drives fewer vehicles. Given the fewer opportunities and limited time available to sales people, the key question for them is: which prospects do I contact first? Based on survey results from dealership customers, AutoLoop will take you through a better understanding of who is likely to buy, and when. Find out more at Presidents Club.

“Using Artificial Intelligence to Prioritize Customer Engagement” T2 Modus, Jim Roach.
If only one salesman came to work today, what is the first opportunity he should act upon that is most likely to sell a car today? Find out the method to the madness from T2 and find out how aligning the right customer with the right salesperson maximizes the result.

Identifying the Most Valuable Insight

The Most Valuable Insight Competition is designed to reveal and showcase never-before-released data and research unique in the automotive industry. The Competition was created in the spirit of progress and industry thought leadership.

Taking the conversations to the highest level, auto industry professionals share their research findings and insights live on stage with the highest-level dealership executives to foster inspiration, progression, and celebration of a better automotive retail industry.

The Most Valuable Insight Competition encourages automotive professionals to provide an innovative insight supported by research and dealer experience that dealer executives can apply to their operations and achieve competitive advantage.

Check out the most popular blogs on DrivingSales during March of 2017.

Company’s new Express Trade solution for the iPad gives dealerships even more  control in how they price automotive trades

San Francisco, Calif. — March 28— Roadster, the leader in eCommerce solutions for car buying and leasing, today announced the rollout of a new Express Trade tool that will give dealerships more control and ease in how they price automotive trades. Improving upon current dealer trade offerings, Roadster’s new solution allows dealers who want to price their own trades, to do so online by gathering all of the information they need from the customer prior to coming into the dealership.

“With Express Trade, sales people are empowered to utilize any pricing system they want in a streamlined and incredibly user friendly interface,” said Andy Moss, CEO of Roadster. “This allows dealers to save time while also providing a price they can honor with confidence.”

In just a few steps, Express Trade guides car buyers to capture their VIN barcode with their smartphone, answer a few simple questions about their car’s history and share photos of their car.  Buyers are asked to upload photos of any dents, peeling paint, tears or scratches that are visible from three feet away. They are also asked specific questions about the ownership and condition of their vehicle, including if the check engine or other service lights are illuminated.

Once all information is collected, Express Trade notifies the car buyer that the dealership will provide an offer within three business hours of submission.  Roadster’s solution then empowers dealers to quote a trade-in price that is transparent and one that the dealership can stand by.  

“Roadster’s Express Trade solution is not only incredibly user friendly, but it fosters a new level of trust between our salespeople and car buyers,” said Sohail Tabar of Ford Serramonte.  “Through its simplified interface, car buyers now understand all of the important factors that go into pricing a trade, while dealerships are finally empowered to use their own information to price a trade. Our dealership can’t wait to engage with customers in this manner - Express Trade serves as a fair and easy solution to what has thus far been a subjective trade-in evaluation process.”

Netsertive has just released their Automotive Digital Marketing Intelligence Report for 2017. After reading through it, I found some very valuable things for dealers that you can start implementing to improve your dealership today.

The 2016 Overview

Reading the 2016 overview gave me some important insights about how the industry is changing, and what we can do to keep up with it.

• Multichannel marketing gets you the best results. Combining Facebook ads with search engine marketing leads to 5% more conversions. Similarly, running digital video ads with search engine marketing lead to 37% more conversions.
• 9 out of 10 website visitors won't convert on the first visit. This means you need to intrigue them enough, that they'll come back again for their second visit, where they're more likely to convert.
• 97% of car shoppers buy local. So you need to have a website that shows them where you are, and why you're the best option, even if you won't sell online.

Changes For 2017

Looking over all the fantastic research Netsertive did pointed me in the direction of changes dealers can make for 2017.

• A fast, flexible, and mobile-friendly web experience can hugely grow your smartphone clicks. Focusing on your mobile site can lead to high rewards.
• Many paid campaigns will drop off in the early evening, so make sure that you are working to have your campaign running past 5 PM. The study also found that the average person spends 54 minutes on social media every day. You never know when that will be, so making sure your campaign is running most of the time is valuable.
• High intent shoppers are caught with search engine marketing. This is the best way to get people who are closer to the buying stage, but needs to be used with mixed marketing efforts.
• The top 2 ad positions captures 85% of customers. That means it's insanely valuable to work on your search ranking, and be willing to bid using paid SEM to increase your placement.
• Working with mixed methods of marketing can help lower your cost per conversion and cost per click. This study shows that working with social media, as well as more traditional marketing such as TV or radio, can all work together to help your online search engine marketing.

What Can You Do Now?

So with all this interesting information, what can your dealership do today to make changes?

• Find the right investment balance of more traditional marketing strategies, and the ever invaluable social media and digital realm.
• Shoppers research nearly 24 websites during their buying process, which gives you a host of opportunities to show reviews and information about your website.
• Know your audience and where they spend their time.
• Google and Facebook are the most popular places for shoppers, invest some time and money in those mediums.
• Run search engine marketing campaigns in conjunction with other mediums.
•  

We interviewed many vendors during NADA 2017 to hear what they think is ahead for the auto industry. Check out our interview with T3 Consulting Group.

*The thoughts and opinions expressed by interviewees do not reflect the opinions of DrivingSales. These interviews are purely editorial content and are not sponsored by any party.

Spireon Introduces One-Step Vehicle Recovery Process—One of Many GoldStar Features Designed to Increase Efficiency

IRVINE, Calif. (March 16, 2017)— Spireon’s GoldStar GPS solution offers a one-step vehicle recovery process with the latest enhancements to its Recovery Link feature. Using the feature, Buy Here Pay Here (BHPH) dealers can automatically send locator links on lapsed vehicles to recovery agents via text or email in one simple step, increasing the efficiency and effectiveness of vehicle recovery. With a mobile-responsive interface and real-time insights on location and vehicle status, GoldStar’s Recovery Link minimizes financial risk for dealers by reducing the probability of vehicle damage, impoundment and other avoidable fees.

“One of the biggest hurdles BHPH dealers face in recovering assets is the number of manual steps required to communicate with recovery agents, increasing the time and money spent on recovery,” said Sunil Marolia, vice president of product management at Spireon. “Our latest Recovery Link feature streamlines the process and automates communication with agents. As we all know, time is money, which is why GoldStar is designed to help our customers be as efficient and productive as they possibly can.”

GoldStar is the only solution on the market that lets BHPH dealers see the number of times a recovery agent views a shared link, allowing them to monitor recovery progress and timeliness. An updated, user-friendly application shares both vehicle location history and current location data with recovery agents, making it easier to locate vehicles on the go. The mobile responsive design means the information can be clearly viewed on a smartphone or tablet computer.

Owner of Advantage Auto Sales, Brett Hilt, said, “I love the simplicity of sending a direct link to my recovery agent.  It saves me time and limits access to other devices in my recovery group.”

Margie Kimble of Joe’s Auto Sales agrees.  “I used to stay up late locating and relaying info to recovery agents over the phone. Now I can simply send them the recovery link and it’s a done deal.”

With Recovery Link, recovery agents only have access to vehicle location and information that is deliberately shared, offering another layer of security. Additionally, dealers can restrict access to the vehicle location after recovery by manually or automatically suspending the link, which otherwise expires after 30 days. 

As a result of reliable and timely features like Recovery Link, 78 percent of customers using GoldStar have been able to finance customers with lower credit scores while closely managing risk, and 84 percent have reported reduced delinquencies.

To learn more about Recovery Link and other unique advantages of GoldStar, please visit www.spireon.com/goldstar-notifier/.

About Spireon

Spireon, Inc. is the industry’s leading open connected vehicle company, providing businesses and consumers with powerful insights to track, manage and protect their most valuable assets. The award-winning Spireon NSpire platform supports more than 3.75 million active subscribers across the company’s growing suite of products for new and used car dealers, lenders and financial institutions, rental car agencies, insurers and consumers, as well as fleet, trailer and asset management companies.

Learn more at www.spireon.com.

DrivingSales is thrilled to announce that Bart Wilson will be a moderator during Presidents Club. Here's a sneak peek of what Bart will be doing while at the event, and how you can learn from him!

DrivingSales is thrilled to announce that Craig Wilson will be a moderator during Presidents Club. Here's a sneak peek of what Craig will be doing while at the event, and how you can learn from him!