COLORADO INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION
CIADA
FINDING GOOD CHEAP CARS PART 3: NEW TECHNOLOGY
|P A G E 6|
DALLAS, TEXAS Permit No. 2079
PAID
PRSRT Standard U.S. Postage S TAT E A F F I L I AT E
VISIT US AT W W W.CIADA.ORG
MAY/JUNE 2019
INSIDER
FRONT RANGE CLASSES |
INSIDE
MAY/JUNE
2019
06................................. Finding Good Cheap Cars 07..................Building an ADA Compliant Website 08................ Make Phone Tag a Thing of the Past 10................................NIADA Government Report 14 ..................Be the Coach Your People Deserve 20........................................... 5 Social Media Tips 22.......How to Build a Better Dealership Website
ADVERTISERS INDEX
CIADA
Lakewood, Colorado Education & Training Center 950 Wadsworth Blvd., Suite 101 Lakewood, CO 80214
www.ciada.org phone 303.239.8000
PRE-LICENSING CERTIFICATION
Colorado state statute requires anyone applying for a used motor vehicle dealer’s license or a used powersports dealer’s license be certified through a pre-licensing course. This seminar is also offered to salespeople to be able to pass the New Mastery Examination Test. Class is held at least once a week. Check our website for dates.
Call CIADA for information on these classes, or to get your forms and/or Dealer/Salespersons Bonds.
g
BASIC TITLE TRAINING CLASS
Join us to get updated information to learn the CORRECT way to fill out your paperwork at time of sale and other topics including title compliance, do’s and don’ts for titles and more. This class is held once a month for half a day.
All classes are subject to change without notice. Please check our website www.ciada.org for any changes.
ACV Auctions ................................................... BC Alliance Inspection Management......................16 AutoZone............................................................. 7 BacklotCars........................................................21 Dealers AA of the Rockies ...............................IFC Lobel Financial ................................................... 3 Loveland Auto Auction ....................................... 5 Manheim ............................................................. 11 NextGear Capital ............................................ 8-9 Protective ..........................................................15 vAuto................................................................ IBC Warrantech.........................................................17
WHAT’S NEW
LIVE WEBCAST OF WAAC M AY 1 0 O N N I A DA .T V Catch all the exciting competition from the World Auto Auctioneer Championship! Auctioneers and ringmen from across the country will vie for the top titles and you don’t want to miss it. Tune in to NIADA.tv on May 10 for the free live webcast.
OFFICE
BOARD OF DIRECTORS OFFICERS President
John Lindberg Auto Warehouse 970-490-2886
For information on how to become a member of CIADA, please contact Todd O’Connell: 950 Wadsworth Blvd., Suite 101 • Lakewood, CO 80214 303.239.8000 • toddo@ciada.org
Vice-President
NIADA HEADQUARTERS NATIONAL INDEPENDENT AUTOMOBILE
Secretary
DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838
For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. CIADA Insider is published bimonthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of CIADA Insider or NIADA. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2019 by NIADA Services, Inc.
STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITORS Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT Jeffrey McQuirk • jeffrey@niada.com PRINTING Nieman Printing
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Jim Bode J. Bode Used Cars 303-366-1535
Mark Weida Street Smart Auto Brokers 719-434-8443
Treasurer
Tim Gaylord Gaylord Leasing Company Inc. 303-667-6188
Chairman of the Board Dean Gunter Mile High Car Company 719-570-7800
DIRECTORS. Teshome Tesfaye Norfolk Motors 720-298-1796
Mike Whistance Country Truck and Auto 303-857-1281 Mike Widhalm Reds Auto and Truck 303-726-5520
Ajet Zalli Zalli Motors 970-797-2608
Brian Neeley Drive N-Motion 720-370-7331
Anson Damosso Cross Country Motors 970-669-3280
PAST PRESIDENT / DIRECTORS Jim Bahne Bahne, Inc 720-934-9806 Dan Berkenkotter Berkenkotter Motors 303-809-1618 Mike Bonicelli Nevada Auto Sales 719-635-2533 Dave Cardella Mountain States Auto Group 303-887-8977 Peppe DeMarco Highline Motors 970-206-9963 Roger Kirlin Roger Kirlin Auto Sales 303-526-7805
Stan Martin Stan’s Auto Sales 303-650-1011 Joe McCloskey McCloskey Motors 719-594-9400 Dean Strawn AutoTrek 303-934-5600
ASSOCIATION NEWS
ASSOCIATION NEWS
CIADA WELCOMES NEW DIRECTORS
NEELEY
AND
DAMOSSO
NEW HEAD AMBASSADOR
JAMBO WOLDYOHANNIS Jambo Woldyohannis is taking over the role of head ambassador for CIADA’s Ambassador Action group. This ambassador group was formed to help the association spread the word about the top Colorado used car industry developments. The group’s mission is to communicate to members and non-members alike about legislative, legal and compliance issues.
In addition, they are well versed in explaining the benefits of being a member of CIADA. CIADA membership offers programs that can help make your dealership successful and prosperous. Thank you to all of the “ambassadors” who are helping everyone in the used car business.
New head ambassador Jambo Woldyohannis (left) with CIADA president John Lindberg
CIADA welcomes two new directors to the board. Brian Neeley is owner of Drive N-Motion and Anson Damosso is owner of Cross Country Motors. The two are pictured accepting congratulations from CIADA president John Lindberg (center).
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MARKET PERSPECTIVE | By Doug Hadden
FINDING GOOD CHEAP CARS
PART
3:
NEW
TECHNOLOGY
In the first installment of this three-part series, we looked at how to take advantage of upstream online auctions. Upstream is just a fancy way of saying “before the vehicle is shipped to physical auction.” We focused on OLOCs (One-Owner, Low-Mileage, Off-lease Cars) and learned how to acquire affordable cars your customers want, without having to go to a physical auction. In the second installment, we looked at buying real-time in multiple lanes, at multiple auctions, right from your desktop, laptop or phone! Since these articles, I have received a lot of great feedback and even trained some folks on how to buy cars live online – including easily accessible options like ADESA’s simulcast platform that allows dealers to bid virtually, in real time, on cars in the lane. One dealer said, “I may never go to a physical auction again.” Another dealer I worked with loves going to the physical auction. After training, he was standing in the auction lane bidding on cars as they drove through while also on his phone – bidding on cars at the same auction, at the same time, but in different lanes, and even checking proxy bids on cars at other auctions. Technology is opening new doors of opportunity for dealers, giving them a competitive edge like no other. This month we will look at new technology that is changing the way we buy and sell wholesale vehicles. When I owned my pre-owned lot many, many years ago, besides attending two local auctions every week, I spent every Monday morning stopping at Starbucks buying coffee and pastries I would take to my favorite used car manager who ran a large new car franchise. I usually arrived at the store as soon as the service department opened the front gates so I could look at and book out all the weekend trades before the
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COVER STORY
UCM arrived. I would list what I wanted to pay for each car and what it needed for reconditioning on my yellow pad, head to his office and wait. We would grind out prices and two or three hours later I would call some drivers and get my new inventory to reconditioning. Not only did I have to get up at the crack of dawn, pay too much for a couple of rundown cars to get the ones I wanted (the old “package deal”), but I also burnt half a day away from my lot. Needless to say, this wasn’t a very efficient use of my time or inventory dollars. Fast forward to last week. I’m sitting at lunch with a friend who owns a small preowned lot, talking about how hard it is to find good cheap cars. His phone gives off a chirp. He quickly taps his phone, scrolls through a couple of screens, pounds out some numbers on his phone calculator, taps his phone one more time and gets back to our conversation. What was he doing? He was bidding on a car that was traded in at a new car franchise less than two hours ago. That’s right, sitting at lunch bidding on fresh trades and in the time it took to eat his burger, he owned the car! There are a few companies in this stillgrowing, dealer-to-dealer digital auction space. I’m most familiar with ADESA’s sister company TradeRev, a mobile app that sends notifications to your phone as new car franchise dealers launch cars to a 45-minute on-demand, digital auction. You can view multiple photos, watch videos and even listen to the engine run. Settings allow you to customize your experience, enabling you to create alerts for only the types of cars you want – so you spend less time looking and more time buying. Think about the efficiencies this technology brings to the industry. With built-in artificial intelligence and
machine learning, you can find the right car at the right price, in a transparent and fair process, all in about an hour. You can have funding, titling and transport pre-arranged in the app so when you win a car it quickly appears on your lot. And what about the seller? We know the longer you keep a car in stock the less gross you get – the dreaded “lot rot” is real. Even when you hit a home run on an aged unit, if you do the math on a profit-per-day basis, the ROI is weak at best. What would wholesaling a trade the same day it’s brought into inventory do for the average inventory turn time? It’s a win-win for both buyer and seller! The industry is changing, but so is the technology we use to run our operations. If you have not embraced buying cars upstream, live online from your PC, laptop or phone, or the newest app-driven one-hour, on-demand auction, you may want to rethink your business plan. I’m not saying you can’t continue doing what you’re doing now and be profitable. I’m saying there is technology out there that can and will help you be more efficient – which leads to higher profits with less effort. Mastering these new, high-tech systems and apps is so easy there is no reason not to give them a try. I’ll even help you get started. Email me at Doug.Hadden@ADESA.com and I will set up some time for training you on one or all of the new technologies discussed in these articles. Once you get comfortable using the new tech, not only will you be more efficient and profitable, you may also have time left over to do other things you haven’t been able to do, like spending more time with family and friends! Until next time – have fun and sell cars! Doug Hadden is executive director of dealer consulting services for ADESA Auctions Inc. He can be reached atDoug. Hadden@adesa.com.
COMPLIANCE MATTERS | By Digital Authority Partners
BUILDING AN ADA COMPLIANT WEBSITE
A
QUICK
GUIDE
Lawsuits targeting business websites with ADA violations are on the rise. In fact, the number of ADA lawsuits filed in federal court for alleged website violations reached a record of over 10,000 in 2018, a 34 percent increase from 2017. You risk steep fines if your car dealership’s website is not ADA compliant. Your first violation could cost anywhere from $55,000 to $75,000, not to mention the potential revenue loss from failing to cater to the nearly 50 million adults in the United States living with some form of disability. It pays to comply with ADA regulations, but more importantly, it’s the right thing to do. What does it mean to have an ADA compliant website? Title III of the Americans with Disabilities Act stipulates businesses must provide a website experience that works for all citizens – including those with disabilities. This means having a site that accommodates users with visual impairments, as well as those with hearing, motor, and cognitive impairments. Here are four critical steps to ensure your website is ADA compliant. Ensure your website can be easily navigated with a keyboard. Users with disabilities may have trouble gripping a mouse, but they can still operate
the computer using another limb, their eyes, a headpointer or a mouth stick. Ensure users can perform all tasks on your website using a keyboard. This includes everything from page navigation to clicking on a link or button, selecting a radio button, or scrolling through the website’s menu. Use alternative text on graphics. Blind or visually impaired users need software applications called screen readers to make sense of your website. Screen readers rely on alternative text or metadata included in the website code to “translate” images to users. Alternative text should be 125 characters or less to be compatible with most screen readers. As an example, alt text for the image of a vehicle should include the vehicle type, color and other background details. Make your forms accessible. All website forms need to be easy to understand and fill out by those with disabilities. This can be achieved by adding text labels to your forms such as “textbox,” “checkbox,” “radio button,” and “menu.” Provide clear instructions about what actions you expect users to take, such as “request a quote” or “apply for financing.” Don’t place time limits on your form. This allows users with disabilities to complete actions at their own pace. Additionally, all forms
should have easy-to-see error messages with steps on how to fix them. Fix your language. You can program the language of your website’s content by using the HTML language attribute, allowing screen readers to read content out loud with the correct pronunciation. For example, without the language attribute, a screen reader pronouncing a German car brand would sound like a tourist who doesn’t speak the language, causing confusion for the listener. Use proper color contrast. You also need to ensure adequate color contrast. Reading brown on a black background is hard enough for a normal user, but almost impossible for those who are color blind. According to the Web Content Accessibility Guidelines standard for color contrast, a 4.5:1 ratio between text or images and background is required. All customers and website visitors deserve a great online experience. Designing an accessible website should be one of your top priorities in 2019. If you don’t have the expertise to fix ADA compliance issues in-house, consider working with an agency. Digital Authority Partners can help you build a userfriendly, ADA compliant website. Contact us at hello@ digitalauthority.me or (312) 600-5433 to get your ADA audit today.
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MARKETING MATTERS
| By Christopher Leedom
MAKE PHONE TAG A THING OF THE PAST OPTIMIZE COMMUNICATION WITH SMS
How many of you are frustrated by the volume of voicemail – both left and received – during the average workday? Whether it is for sales, service or collections, your staff leaves dozens, if not hundreds, of voicemails every day. It has probably become one of the biggest drains of productivity and labor – though nevertheless necessary – until now. Do I have you scratching your head a bit? First, let me issue a challenge. Identify one employee in your dealership or finance company that interacts with your customer base on a daily basis – for instance, a salesperson, collector or service advisor. Next, identify 20 customers you need to communicate with that particular day. If you are a working with a collector, pick 20 accounts that just became delinquent. If you are in sales, pick 20 customers that need follow up. Take 10 of these customers and send them an SMS message initiating communication with them. Sales, service, or collections – it doesn’t matter. Call the other 10 customers, leaving a voicemail initiating communication if you don’t reach them. By the time you get done calling the 10 “phone call” customers, chances are 50 percent
of the SMS customers will have already texted you back! Why? Because 93 percent of SMS messages are read within 10 minutes and a return text is usually sent within 20 minutes. How does that compare to the voicemails? It’s no contest. You probably will connect with two or maybe three of the outbound phone calls and will likely leave seven or eight voicemails. I have observed this exercise with countless operations. Our organization has worked with thousands of dealers and finance companies over the past 20 years. When we started Textmaxx Pro four years ago, I could not have predicted the impact on productivity. We see it not just in the auto space, but across virtually every industry we serve. In today’s world everyone returns an SMS message well before returning a voicemail. There are countless studies that prove this. So how do you optimize your SMS messaging strategy? First, think of it the same as your phone system. You need a tool that is proprietary and resident to your business that will serve your SMS communication needs, and ensure compliance. I hear too many dealers say, “My employees are really good at texting – they use their
personal phones.” I cringe. Think about it, would you utilize your salesperson’s personal phone number when advertising on the web or in television commercials? Would you give each employee a copy of their entire CRM activity when they leave your dealership to work elsewhere? That is precisely what you are doing if you do not have a product that allows you to store, monitor and control all SMS activity. It doesn’t matter whether it is sales or collections. You need to retain and control those conversations for a host of reasons, not the least of which is compliance – but that is a topic for an entire article itself. If you want to eliminate – or at least greatly reduce – the wasted time and effort of phone tag, implement a well thought out customer contact strategy where SMS communication is your first form of communication. You will be amazed at the impact it will have on employee productivity. It is an incredibly effective way to communicate with your customers. In my opinion, it is even more effective in collections or service, where you already have a relationship with the customer. Studies show SMS messaging to be the preferred method of communication of most customers, across virtually every demographic. It is hands down the most efficient mode for just about every conversation. Chris Leedom is the CEO and founder of the Leedom Group. The Leedom Group includes Textmaxx Pro, a complete SMS messaging solution for small to medium businesses with a custom design for the automotive industry. You may reach Chris at chris@leedomgroup.com.
ACCELERATE |
By GWC Warranty
IS YOUR REPUTATION IN GOOD HANDS?
CHOOSE YOUR SERVICE CONTRACT P ROV I D E R W I S E LY
Unfortunately in the used car business, your reputation after the sale can sometimes be out of your hands. Once that aspect of your business is out of your control, you need to be sure it’s protected in the hands of someone you trust. If you’ve been in the business long enough, you know that despite the best reconditioning and the best inventory selection, you’re bound to run into vehicles that encounter issues after the sale. When this happens, it’s your reputation on the line. How these fragile situations are handled can have long-lasting impacts on your reputation in your market. Partnering with a service contract provider that has the tools in place to take care of your customers the way you’d want them treated is perhaps the most important thing you could do to protect your reputation when your customer’s experience is out of your control. That’s why you need to know some specifics about what your service contract provider has to offer so you can be sure your customers are in good hands after they drive off your lot. Coverage Lookup A simple online coverage lookup tool is a great way for customers to learn details about their contract on a moment’s notice. Whether it’s start or end mileage, expiration dates, component coverage or a look at the contract itself, having this in place helps customers know exactly how they’re covered.
Find a Shop A customer’s nightmare is a mechanical breakdown far away from home. A nationwide network of service facilities is one thing but being able to easily find a shop in an unfamiliar area is another. This online application takes the worry out of an out-of-town breakdown. Quick Answers These days, consumers demand answers, and they demand them quickly and on their terms. Having a service contract provider that allows customers to submit questions via online forms, live chat or social media gives customers multiple options, so they can get answers in whatever way suits their busy schedules. Good Reviews Online reviews in today’s automotive industry are vital to success. The same goes for service contract providers. Stick to trusted sites like Google (sometimes hidden in the maps section), Facebook, or Consumer Affairs and look beyond just star ratings. While overall ratings are important on the surface, looking at how often a service contract responds and the frequency with which customers leave reviews will give you a sense of how that provider cares for your customers.
WASHINGTON UPDATE | By Shaun Petersen
GOVERNMENT REPORT NIADA is your voice in Washington D.C., advocating for independent dealers, the used vehicle industry and small business. Here’s a look at the latest news and NIADA efforts regarding legislative, regulatory, PAC and grass roots activities.
LEGISLATIVE Privacy a priority: Privacy issues have become a high priority on Capitol Hill in the wake of a recent report from the Government Accountability Office that recommended Congress consider enacting a federal Internet privacy law. The GAO found no comprehensive U.S. Internet privacy law governs private companies’ collection, use or sale of users’ data and said Congress should take action to protect consumers. Andrew Smith, director of the Federal Trade Commission’s Bureau of Consumer Protection, testified last month before the House Oversight and Reform Committee’s Subcommittee on Economic and Consumer Policy, describing the FTC’s role in overseeing the data security practices of credit reporting agencies and enforcing data security laws. Those laws include the FTC Act, which prohibits unfair or deceptive acts or practices, the Fair Credit Reporting Act, which requires CRAs to provide consumer reports only to entities that have a permissible purpose for receiving them, and the Gramm-LeachBliley Act, which requires CRAs and other institutions to safeguard nonpublic personal information. Smith testified that the FTC favors comprehensive data security legislation that would give it additional tools such as civil penalty authority, jurisdiction over common carriers and nonprofits, and targeted rulemaking authority. Small business advocate: On March 27, the Senate Committee on Small Business and Entrepreneurship unanimously approved the nomination of David C. Tryon as chief counsel for advocacy of the Small Business Administration. If approved by the full Senate, Tryon will be responsible for educating lawmakers and regulators as an advocate for small business in the federal government’s agencies and rulemaking processes. NIADA was among 30 small business organizations that signed a letter sent to committee chairman Marco Rubio (R-Fla.) and committee members in support of Tryon’s nomination. The Small Business Administration is an important ally to NIADA and independent dealerships within the federal government. SBA has participated in the NIADA National Policy Conference and has worked with NIADA on a number of issues relevant to dealers. With Tryon in the advocate role, SBA will be better positioned to advance the interests of independent dealers and small businesses.
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David C. Tryon
REGULATORY On March 7, the Department of Labor issued a notice of proposed rulemaking that would make more than a million more American workers eligible for overtime. The new rule would increase the salary threshold for employees to be exempt from overtime requirements by almost $12,000 per year, to $35,308 per year ($679 per week). Currently, employees with a salary of less than $23,660 per year ($455 per week) must be paid overtime if they work more than 40 hours per week, while workers making at least that salary level can be eligible for overtime based on their job duties. The new rule is intended to update the threshold – last set in 2004 – using current wage data projected to Jan. 1, 2020. DOL is seeking public comment on the rule, and specifically on its proposal calling for periodic reviews to update the salary threshold. DOL said it developed the proposal with extensive public input from six in-person listening sessions held around the nation and more than 200,000 comments as part of a request for information in 2017. The proposed rule maintains the current rule’s overtime protection for police officers, firefighters, paramedics and nurses, as well as non-management productionline employees and non-management employees in maintenance, construction and similar occupations. The proposal does not include automatic adjustments to the salary threshold. NIADA is reviewing the details of the proposal and will submit appropriate comments. We encourage dealers to consider commenting as well. For more information, visit www.dol.gov/ whd/overtime2019. Comments about the proposed rule can be submitted at www. regulations.gov in the rulemaking docket RIN 1235-AA20.
PAC NIADA-PAC hosted Rep. Patrick McHenry (R-N.C.) at a business roundtable April 25 at Big Tex Auto Mart in Dallas. A contingent of about 20 dealers and association leaders gave Rep. McHenry a tour of the dealership, explaining how the used car business works, the services it provides and the obstacles faced by independent dealers every day, and discussed many of the issues currently being considered by Congress that impact the industry. McHenry is the ranking Republican on the House Financial Services Committee, whose jurisdiction includes oversight of the Consumer Financial Protection Bureau. NIADA and our PAC encourage association members to invite your elected representatives – at the federal, state and local levels – to visit your dealership. It is the single most effective thing you can do as a dealer to educate those representatives about what you do, how your business works and how the laws and regulations they create affect you and your business in the real world. Erika and Robert Blankenship
GRASS ROOTS Texas IADA is supporting a bill that has been introduced in the state legislature that would eliminate a form that limits a customer’s choice of where to title a vehicle and give dealers the authority to transfer the vehicle’s title in any of the state’s counties. As part of TIADA’s lobbying efforts, Erika Blankenship testified before the Texas House’s Transportation Committee in support of the bill. Blankenship and her husband Robert are owners of RLB Texas Auto Center in Austin – winner of NIADA’s National Quality Dealer award in 2017. She serves as chair of TIADA’s legislative committee and is a member of the NIADA legislative and regulatory affairs committee. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.
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BE THE COACH YOUR PEOPLE DESERVE MANAGEMENT MATTERS | By Dave Anderson
ARE
YOU
A
CRITIC
Ken Blanchard called feedback the “breakfast of champions,” and rightfully so. We all need feedback to grow and develop to our fullest potential. When done properly, coaching those on your team and giving them quality feedback is one of the highest return uses of your time. However, when it comes to giving feedback, many leaders today are more of a critic than a coach. They point out what’s wrong without offering the individual any coaching that would allow them to adjust and bring better performance day in and day out. Criticism without coaching doesn’t elevate people – it frustrates people. What follows are some key principles of coaching, and some steps to make sure you’re the coach your people deserve, and not just a critic of them. But first, let’s discuss what it means to be a critic and what it means to be a coach so you can better assess your style of giving feedback. A critic is defined as “one who expresses displeasure or an unfavorable opinion about someone or something.” Simply put, criticism without coaching is merely expressing displeasure and leaving it at that – not exactly the balanced feedback “breakfast” necessary to grow, develop, and invest in the people on our team. A coach, on the other hand, is “someone who gives private teaching, a trainer or coach.” Make no mistake, a coach will also express displeasure concerning poor behaviors or performance, but the difference is he or she will also provide instruction on how to improve. With a better understanding of what it means to be a critic and a coach, let’s look further at the differences between them. To improve performance, a coach will provide feedback concerning poor performance and immediately follow it up by redefining a performance expectation. The coach will do this both conversationally and sincerely, without getting personal, profane, loud, or reminding the offender of their past flaws and faults as the critic does. To improve performance a good
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OR
A
COACH?
coach will show the person what good performance looks like. By redefining the performance expectation with the individual, you’re setting the standard. By modeling and demonstrating the good performance you’re looking for, you’re setting the example. To further reinforce his or her point, the coach will explain why it’s important to perform the task or duty in the manner prescribed. A great demonstration of what you’re looking for, by itself, is not enough to help coach the individual to greater levels of performance. This is why the best leaders in any field explain the “why” behind it. They understand people are more likely to apply the “how,” and live with the “what,” if they first understand the “why.” To test the individual’s comprehension of the feedback and the example demonstrated, a coach will ask the person to perform the task again to demonstrate their understanding of the proper technique. The only way you can know for sure that people get it is to test them, and let them show you they’ve got it. If the person requires further training to be able to perform the task or create the desired outcome, the coach will provide the resources necessary to support the person. Strong cultures understand talent doesn’t arrive fully developed, and a ferocious dedication must be made to training, coaching, and mentoring employees. Identifying and resourcing a team member’s growth by providing tools, experience, mentors, training or additional practice are key ways the coach supports and helps build the skillset necessary for the person to perform well. Once the performance improves, a coach will reinforce the change or improved behavior. This is because behaviors that are reinforced and rewarded are more likely to be repeated. But remember, the longer you wait to reinforce the behavior, the less impact it has. Reinforce often and quickly when you’re trying to influence behavioral and performance changes.
If necessary, the coach will establish consequences for the performer if the poor behavior or performance continues. If you want to change a behavior, you must change the consequence for that behavior. As the saying goes, “If nothing changes, nothing changes.” Even when establishing consequences, a good coach will affirm belief in the performer and his or her ability. This is because the coach understands the consequence being established is something they’re doing for the person, not to the person. The sole objective of a consequence is to improve performance. In summary, a critic is good at finding and pointing out faults or flaws. While a coach does likewise, his or her primary objective is to create the structure and tools necessary to eliminate the flaws. The coach is not just a “finder” but a “fixer.” With these points in mind, are you more of a critic or a coach? If you were to randomly survey team members on your coaching and feedback abilities, would they agree? If not, or if you’re unsure, the good news is you can fix that by bringing more focus to applying the principles shared here and adding value to your people, so they in turn can add more value to the organization. If you have good people who are being hamstrung by criticism without coaching, don’t expect them to endure or stay in your ranks for long. They won’t put up with the abuse, nor should they. Step up and be the coach they deserve – don’t wait until it’s too late to do so. Dave Anderson, “Mr. Accountability,” is a leading international speaker on personal and corporate performance improvement. He is also the author of 14 books and host of the podcast, The Game Changer Life.
ACCELERATE | By GWC Warranty
3 HURDLES TO VSC SALES
HOW
TO
CLEAR
THEM
The numbers are in. Consumers have spoken. There are three main reasons customers don’t protect themselves with service contract coverage. The good news is dealers can easily clear these hurdles with the right program in place. A study recently released by Pegasystems surveyed more than 1,000 consumers to understand whether or not they saw value in service contract coverage and what stops customers from purchasing a VSC with their vehicles. Overall, the study found 63 percent of customers do not have a service contract despite seeing the value in one. Why is this? Let’s dive into what stops customers from buying a VSC and how you can overcome those obstacles. Cost Thirty-five percent of customers say
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they can’t afford a service contract. But when you compare the small increase in monthly payment to what a major repair could do to a tight monthly budget, it’s easy to see which scenario is easier to withstand. With so many used car buyers on tight monthly budgets, a service contract’s monthly investment can easily pay off in the long run. Not Thinking They Need One Thirty-two percent customers think they’ll never encounter the need for a service contract, but trends say otherwise. A simple question of how long the customer plans on owning the vehicle he or she is purchasing is just what you need to clear this hurdle. With the average length of ownership on the rise, chances are your customers will be in their vehicles for a long time. Used cars are inherently more likely to break down, especially as they approach
and surpass 100,000 miles, making it more likely than ever a customer will need a VSC at some point during his or her ownership. Lack of Availability at the Time of Purchase To solve for the 29 percent of customers who aren’t offered a VSC at the time of purchase, all you have to do is turn to the 300 percent rule. The first step is having a service contract provider that offers the product versatility – from both a vehicle and term perspective – that fits your inventory. Once that’s in place, it’s vital you present 100 percent of your products to 100 percent of your customers 100 percent of the time. You’ll never bat 1.000, but you’ll get better at your presentation as you continue to get real-world practice and you’ll inevitably see the results in your F&I profits.
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SOCIAL MEDIA TIPS FOR CAR SALESPEOPLE
SOCIAL MEDIA | By Kathi Kruse
PUT
YOUR
PROFESSIONAL
Building a recognizable professional brand opens up professional opportunities. Social media can be very helpful for car salespeople to build authority, engage current and would-be customers, and set appointments. Every time you are online, in a meeting, at a conference, networking reception, or even a backyard BBQ, be mindful of the following: 1) What others are experiencing about you. 2) What you want others to experience about you. In each of your engagements, your customers, peers and even friends and family are evaluating you. When you’re solid in your professional brand, there is no difference between #1 and #2. As a car salesperson, being new to this idea of a professional brand can be challenging. However, when you begin to see yourself living through the “lens of a brand,” your perspective will change and you’ll become more mindful about how you approach the professional brand you are trying to define and aiming to live. Customers have changed how they shop: · 95 percent of car buying begins online (Google). · 96 percent of consumers are influenced by online reviews (eMarketer). · 80 percent of car buyers are more likely to turn to social media than a salesperson (Crowdtap). · There is expectation of price without having to talk to anyone (DrivingSales). · The average consumer visits 1.6 dealerships in person (Autotrader). Putting your own professional brand into action allows you to greet the customer where they are and help facilitate a purchase (or a purchase through their friends and family). We call this “social selling.” These five “social selling” steps will help you put your professional brand into action. Look Your Best Your image is just as important in the digital world as it is in the real world. Online, your profile image is the first thing prospective clients will see. Make a good impression with a professional image that isn’t too stuffy but still makes you look trustworthy and friendly. The copy in your bio on any social network has to accomplish everything a greeting, handshake or elevator pitch would do in person. Write every word with your prospect in mind and write in the first person, not the third. And
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BRAND
INTO
ACTION
be sure to very clearly share your contact info. Share multiple avenues if there is room. On a site like LinkedIn, where you have more real estate to expand upon in your summary section, tell a story about who you are, why you do what you do and how you can help. Remember, LinkedIn is different from a resume. Use your headline not just for your title but also for a short phrase or keyword explaining how you help your clients.
Monitor Relevant Conversations to Find Prospects The most effective tactic to understand what your prospects want and need is to listen to them. You can then customize your messaging and/or offering based on this knowledge. All you need to do is pay attention to what your prospective and current customers are saying. Monitor relevant conversations about your vehicles to see what issues existing customers are experiencing. Maybe they’re venting their Build Your Credibility frustrations about your service on social Your store has a solid reputation, but do media. Or they could be raving about you but you? Social networks can help you build your mentioning some areas that need improvement. personal brand. With every Facebook post, You can make use of all of this information Instagram post, LinkedIn comment or Tweet, to provide solutions to your existing customers you can grow your reputation and establish a and address their issues. So you’ll be nurturing solid foundation. your relationship with them to enhance their It’s a great record of your authentic self and a loyalty. great place to demonstrate your understanding Pro tip: Participate and engage in Facebook of your industry and potential clients. and LinkedIn Groups. You can share your High credibility can be achieved by sharing valuable expertise and content, ask relevant relevant articles about the auto industry and questions or engage with group members to your dealership as well as adding thoughtful build a relationship. insights to conversations and solving problems your prospects may have. Find Your Prospects It’s all in the name of establishing trust. When Social networks are a great place to learn you share interesting thoughts, others will more about your potential clients. Pay attention: re-share them, tag you or start a conversation where do your potential clients turn to seek with you. more information about problems they may have? Track Your Social Selling Efforts Do they belong to a LinkedIn group? A public The best way to get better at social selling is or private Facebook group? A weekly Twitter by learning from your existing efforts. Collect chat? insights from your current efforts and see Plant yourself there, listen to their what’s effective as well as what isn’t. conversations and get involved. Based on this data, ask yourself what you While LinkedIn is the place to turn for should be doing differently and what you can do business connections, Twitter has a much better. This can help you gain clearer direction better search function and has a lower barrier of how you should adapt your efforts to deliver to entry. You can follow anyone you want, from even better results. Track these metrics and set personal goals to a CEO to a celebrity, and they don’t have to accept your request as they do on LinkedIn or improve: Facebook. They might even follow you back. · Inbound connections and network growth. Once you’ve found some prospects, they may ·C ontent engagement rate (how many people are engaging with your content each week?). be able to lead you to others. For example, check out whom they are following and start following ·F ollower quality (followers who find and those people as well. engage with your content). On LinkedIn, some of the best conversations · Prospect referrals. happen in industry-specific groups. Check the · Lead activity. Pro tip: LinkedIn has a “Social Selling Index” profiles of your prospects and see which groups (SSI). LinkedIn should be one of your preferred they are a part of, and then join them. Kathi Kruse is an automotive social media channels to prospect. Check out your own SSI marketing expert, blogger, consultant, author, at business.linkedin.com/sales-solutions/socialspeaker and founder of Kruse Control Inc., which coaches, trains and delivers webinars selling/the-social-selling-index-ssi. focused on integrating social media and online reputation management into dealership operations. She can be reached at kathi@krusecontrolinc.com.
ONLINE MARKETING
| By Adam Tobias
HOW TO BUILD A BETTER DEALERSHIP WEBSITE
3
STEPS
In the increasingly competitive car dealership industry, brand loyalty is more important than ever. It’s also harder than ever to build. Cutting through the noise requires a clear message and focus on the customer experience. Standing out and building a loyal customer base may seem impossible. But small and mid-sized dealerships around the country are punching back and delivering amazing experiences that win lifetime customers. Brand loyalty is still possible for dealerships to attain. And when they do, the benefits are incalculable. EXAMPLE: A
A dealer’s website is their first impression with a potential customer. That’s where our brand loyalty journey begins. The Purpose of Every Dealership Website Dealership websites have one job: Get customers to visit the dealership. Car buyers today spend over 60 percent of their time conducting research online and visit only 1.2 dealerships on average. If your website doesn’t convince a buyer to visit your dealership, you have lost a deal, and potentially a lifetime customer. The problem is most dealers try to do too much with their website. Instead of focusing on their sole job – getting customers into the dealership – dealers load their sites with financial services, their life story, and vehicles that customers don’t want to see. For this reason, most dealership websites are hard to navigate. The customer doesn’t know what to do, so they leave your site and go on to the next one. The best dealership websites – those that effectively drive customers to the dealership – show customers only the information they need to know. Everything else is a distraction. IMPROVING YOUR WEBSITE IN 3 STEPS Here are three elements that matter most for your website. By focusing on these three elements, you can cut out the junk that distracts customers and turns them away.
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Element 1: Value Proposition Oli Gardner is a master of building great websites. As co-founder of Unbounce, Oli spends his days thinking about and testing how websites can convert more users into customers. In a recent podcast, Oli discussed dealership websites and the importance of clearly communicating your value proposition to your customers: “If you can’t communicate [your value proposition] quickly, your competitor will,” said Oli. “If you can’t communicate quickly, your competitor will.”
“Amber and the team were extremely helpful. No pressure and they were attentive to our needs. Great experience. We will definitely be back for our next purchase. Amber answered all our questions, even met us on her day off and followed up the next day via text to ensure we were happy. Financing was quick and painless. The whole process was under two hours.” Reviews that seem over-the-top, or even fake, can do more harm than good. Dealerships should encourage customers to leave honest reviews. Never create fake testimonials or encourage customers to write
EXAMPLE: B
Oli said you have less than five seconds to make your value proposition clear to visitors. If you don’t, they will move on to the next site. When a customer first visits your website, they have one question on their mind: What can you do for me? The answer to that question is your value proposition. Dealerships should put their value proposition at the top of their homepage. Remove other messages that might distract from it, including financing deals, weekend sales, and messages from the dealer. Most dealers struggle to do this, but when they do, the difference is clear. The dealership website in “Example A” is easy to read and has a clear value proposition: “Family owned for 35 years. 5 minute approvals.” Your value proposition is a signal to your target customer they are in the right place. Remove clutter from the homepage so your most important message stands out. Element 2: Testimonials/Social Proof Customers are always on the lookout for scams and bad companies. They want to see proof you’ve made customers happy in the past. Testimonials are the best way to put a wary customer’s mind at ease. Testimonials should be honest, authentic, believable and relatable. Here’s an example of an excellent testimonial for a dealership in Oregon:
“favorable” reviews. People can sniff out inauthenticity a mile away. They will steer clear of your dealership and find another. Element 3: Call to Action Button Finally, your website needs a call to action: a clearly-defined next step for customers to take. Most websites look like “Example B.” This homepage has at least 10 different calls to action, with everything from “Shop inventory” to “Claim your Offer!” With so many elements vying for your customer’s attention, the action they’re most likely to take is leaving your site. When it comes to CTAs, clarity is king. Your homepage should have no more than three “actions” for customers to take. Ideally, your website offers a single CTA. Brand loyalty starts with the dealership website. If you promise an excellent car-buying experience, make sure your website provides an excellent experience, too. Dealership websites should be clear, trustworthy, and easy to navigate. Focus on the most important elements of your site and remove the clutter. Dealers who do this will be best positioned to build brand loyalty and earn lifetime customers. Adam Tobias is the co-founder and COO of Dealercue, which provides dealerships with real-time, intelligent, market-driven vehicle appraisal, pricing, inventory management, and sourcing solutions. He can be reached at adam@dealercue.com.