The Ontario Dealer - Volume 8 Issue 1

YOUR CONNECTION TO ONTARIO’S USED CAR INDUSTRY

THE ONTARIO UCDA

VOLUME 8, ISSUE 1

THE OFFICIAL MAGAZINE OF THE USED CAR DEALERS ASSOCIATION OF ONTARIO

> INSIDE:

YOUR DIGITAL MARKETING BUDGET /12 PLUS DEALER PROFILE: World Fine Cars /24

EFFICIENT INVENTORY MANAGEMENT /44 WINTER 2020

THEONTARIODEALER.COM

You asked. OMVIC delivered.

The Help for Dealers Video Series and Educational Resources In response to a survey, more than 3300 dealers and salespeople told OMVIC they wanted to learn more about: •

All-in price advertising

•

How to handle contract cancellation

•

Disclosing collision repairs

•

Disclosing vehicle condition and

Vic

needed repairs •

Disclosing negative equity on bills of sale

And they said they’d like the information via video and interactive tools. OMVIC listened.

Check it Out Meet Vic, host of the OMVIC Help for Dealers video series. These short videos and the downloadable toolkit will assist dealers and salespeople better understand and comply with the Motor Vehicle Dealers Act.

Visit omvic.on.ca and take advantage of these free resources.

2 | THE ONTARIO DEALER

“Fairness and professionalism are good for the consumer, the industry and your business”

THE ONTARIO UCDA

IN THIS ISSUE

VOLUME 8, ISSUE 1

Winter 2020 USED CAR DEALERS ASSOCIATION OF ONTARIO 230 Norseman Street, Toronto, ON M8Z 2R4 Tel: 416.231.2600 Toll Free: 1.800.268.2598 web@ucda.org

FEATURED STORIES Your Digital Marketing Budget

$ $

$

By Angela West

12

ucda.org Publication Mail Agreement #41890516

Telephone Skills - Do You Still Need Them

ONTARIO DEALER

By Joanne Walmsley

is published by Laservision Graphics Ltd. four times a year.

15

130 Industry Street, Unit 36, North York, ON M6M 5G3

Spotlight Series: SIRIUS XM

by Ronda Payne

EDITOR Gina Monaco Tel: 1.647.344.9300 or 1.289.456.4617 gina@ontariodealer.com

ADVERTISING SALES Terry Coster Direct: 416.360.0797 Office: 647.344.9300

PHOTOGRAPHY photosbypierce.com

30 Get The Most Out Of Your Auction Experience

by Connie Motz

38

05 07 09 11 19 22 24 28 32 35 42 44

The Driver’s Seat Warren Barnard

Editor’s Note Gina Monaco

Member’s Corner Bob Pierce

The Law Matters Jim Hamilton

Tech Talk Angela West

Trends Chris Chase

Dealer Profile Ronda Payne

How To Analyze Your Web Analytics Angela West

The Common Lawyer Justin M. Jakublak

Your 2020 Marketing Makeover Matt Macdonald Old Car Detective Bill Sherk

Efficient Inventory Management Chris Chase

DESIGN thrillhousestudios.com

CONTRIBUTORS Chris Chase, Ronda Payne, Bill Sherk, Angela West, Matt McDonald, Joanne Walmsley, Connie Motz If you are interested in having your personal opinion heard, contact the editor at gina@ontariodealer.com

The publisher of The Ontario Dealer reserves the right to turn down any advertising or content submitted to it. The Used Car Dealers Association of Ontario and the publisher accept no responsibility for claims or statements made by advertisers in this publication or by the independent authors of articles appearing in this publication. All statements and opinions appearing in this publication are those of the writers themselves and are not to be construed as reflecting the position or endorsement of the Used Car Dealers Association of Ontario or the publisher.

VOLUME 8, ISSUE 1 | 3

Gotta love that

NEW SITE SMELL www.theontariodealer.com

4 | THE ONTARIO DEALER 6 | THE ONTARIO DEALER

THE DRIVER’S SEAT Branding in the 2020s ues to excel, it’s still not an easy business in which to succeed. It takes a lot of work and creative thinking to stand out in this crowded field. What does an individual dealer need to do to really stand out from the crowd?

Well, you can offer the lowest prices, the highest quality, financing approval for everyone, things like that, but so many dealers make these claims. Not a lot there to make a dealer stand apart from the crowd, is there?

By Warren Barnard, Executive Director, UCDA Can it really be 2020?

Where are the flying cars? Oh, they’re coming sooner than we may think!

By the time you read this issue of The Ontario Dealer, we will be well into the third decade of the 21st century. The year 2000 seems like just yesterday. I guess I’m showing my age!

Despite years of hearing doom and gloom predictions about the looming end of the auto industry, it remains a vibrant and dynamic sector, and a very crucial one to the Canadian economy.

Far from being an industry in decline, the sale of new and used automobiles is growing, with more, not fewer, players entering the market. It’s a changing business for sure, but definitely not a dying one.

And thanks in large degree to the digital world in which our industry now operates, it’s more competitive than ever before!

So, while the industry as a whole contin-

You need to be able to brand yourself with something unique and special that you, but few others, do well.

It can be as simple as inviting customers to have their photos taken and put on a wall at the dealership or posted on the dealership’s web site or Facebook/Instagram page. Or regularly contributing to a certain charity, holding fundraising events, being active in promoting one or more causes in your local community, etc.

But one way or another, you need to establish your brand, by which I mean more than just your name. Your brand is who your company is, how you carry on your business, what you believe and how it translates into how you treat your customers. It can take some time to build a brand.

It’s your company culture and it goes beyond the products you sell or the services you provide, though they are certainly part of it. Your brand is more about your dealership’s philosophy and how you interact with your customers. It’s your message to the world promoting why people should do business with you.

branding, whether it be on your website, or your social media presence. But your brand will always relate most to the one-on-one personal interaction with the consumer when they visit your place. How they are greeted. What they are offered.

Where they are seated while waiting to see a salesperson or while waiting for service to be completed on their vehicle.

Small things matter … things like coffee and other refreshments, a no-cost car clean-up after servicing, free minor repairs or washer fluid top-ups. These are the kind of things that don’t seem like much. They take little effort and the cost is minimal, but people remember them and they will come back to you, and refer their friends.

Your brand is the visible manifestation of how your dealership operates. It’s how people view you and influences how they will share their opinions of you. Polish it up. Make it shine!

Here are some of the articles I think you’ll enjoy in this first Ontario Dealer issue of the 2020s: 1. Your IT Budget – What You Need to Compete Online 2. Marketing Makeover for the New Year 3. How to Analyze Your Web Analytics 4. The Growing Importance of Proper Training 5. How to Save on Shop Supplies – Efficient Inventory Management 6. Get the Most out of Your Auction Experience

Enjoy this issue of The Ontario Dealer and remember you can reach me any time at w.barnard@ucda.org. ■

Increasingly, your digital interaction with consumers plays an essential part in your

VOLUME 8, ISSUE 1 | 5

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EDITOR’S NOTE Ride Sharing and the Used Car Market In other markets outside of Canada, companies are allowing customers to switch between a number of vehicle options, as part of their subscription service.

The automotive giants, like General Motors, are pushing car-sharing programs, which expanded into Toronto last year, framed as a simple rental process.

By Gina Monaco, Editor

THERE ARE CHANGES coming to the auto

industry. We’re already seeing these changes in how new vehicles are packaged and sold or leased. The new models range from more flexible and straightforward lease programs, to streamlined car-sharing as vehicles become increasingly high-tech and consumers demand a simplified shopping experience. This, in turn, is being fueled by a growing minority of drivers who are looking for alternatives.

The shift comes as the industry is going through rapid technological change towards a driverless future, and a small but growing minority of drivers fueling demand for alternatives.

For example, Volvo has announced that it will bring its subscription service to Canada to meet those changing demands. The service, which starts at $949 per month, is a leasing alternative that covers professional maintenance, minor wear, winter tires and other costs in a single payment.

So, what now for the used-car market?

Well, some people prefer to buy used cars, whether by personal choice or by financial choice. As you know, consumers also have shifting preferences when it comes to vehicles. A coupe may be a great choice for a college student, but impractical for a young family. So, it makes sense for vehicles to get passed between a variety of owners.

Thus, the need for a used-car industry.

Here’s the rub. If ride-sharing eventually dominates the market for private transportation, cars will, on average, pass through far fewer owners during their usable lifespans, which may result in fewer used car sales, which means a smaller usedcar industry overall.

According to Moody’s Analytics, in the short run, ride-share drivers could give the used car industry a tremendous boost. A lightly used two-year-old certified pre-owned (CPO) vehicle, traded due to obsolescence or changing consumer taste, would be a great option for someone looking to drive rideshares for a living.

Services like car-sharing and subscription models are setting the stage for the shift to more widespread automated services as the industry rapidly evolves. Self-driving cars may also disrupt the industry in the longterm, but I think we’re a long way from that going mainstream.

The future will be more about vehicle usage. Why purchase a new car that sits in a garage all day while you’re in an office working? Why not share it? It’s a flexible and affordable solution that appeals to younger consumers.

The barrier? No public policy…yet. In 2017, city leaders from around the world paved the way towards implementing policies that encourage a sustainable transport revolution. These policy changes will happen at the city level.

For example, the mayor of Paris, Anne Hidalgo, has ambitious plans to make Paris the first post‐car city in the world.

In London, Mayor Sadiq Khan recently unveiled plans to stop residential developments from building parking spaces and new offices from installing commuter or visitor parking. But if political leaders want to convince people to separate from their cars, they have to ensure access to a car when needed. So, if the idea is to densify, then a car sharing solution has to be available.

In Canada, auto dealers, both new and used, are seeing the changes impacting their bottom lines. They must understand what’s going on and then adapt to those changes, even if that means taking a hard look at how they sell and service vehicles.

To succeed as a used-car dealer in the future, embrace the change and adapt to new technology. By doing this, you can get ahead of the competition, not only by being customer-focused, but by being proactive and providing highly personalized services for a new, demanding consumer.

VOLUME 8, ISSUE 1 | 7

Qualifying period from January 1 to March 31, 2020.

MEMBER’S CORNER Where Did Our Standards Go? can’t meet these “standards” you won’t succeed in the business.

I should note, that since 1997 the standards for the Industry have been set by and enforced by a self-managed industry regulator (whose board of directors is made up predominantly of dealers) called OMVIC.

By Bob Pierce Member Services Director OMVIC HAS THEIR BUSINESS STANDARDS and Advertising Standards,

the MVDA has laws setting out minimum operating standards for dealers, and the UCDA has its Code of Ethics for members.

Since OMVIC became responsible for regulating motor vehicle dealers in Ontario, we have seen a new MVDA, more stringent advertising rules, improved educational requirements and the collection of millions of dollars from the industry to better regulate and enforce these “standards”.

So what happened? ... the internet, Uber, Tesla, cars from vending machines.

Time and time again, we hear about standards being violated, discipline hearings, charges being laid, licence suspensions and revocations, advertising non-compliance, tens of thousands of dollars in fines. Yet nobody seems to be paying attention!

I am constantly reminded that times are changing. People don’t want to go to dealers, they want dealers to come to them. Dealers don’t need business premises, offices or cars on lots... that’s old school... just bring the car to me and we can do “the deal on my kitchen table” or better yet, on my iPhone.

Ontario’s standards for selling cars and trucks haven’t changed much since 1964. Dealers and salespeople have to be registered, operate from a place of business, conduct themselves differently from private sales, and most importantly, be upfront and honest with their customers. If you

The UCDA recently terminated a member for violating our Code of Ethics and selling to a consumer through another non-registered business he owns. The dealer offered this explanation. He said, he doesn’t need a car lot with hundreds of cars.

He just buys late model cars and sells

them to his friends. His friends don’t want to go to typical “car dealers” because they can’t be trusted. He's like UBER. The old rules and regulations don’t apply to him. He say’s he has done hundreds of deals over the last year. In my opinion, OMVIC seems to have loosened their standards as well.

Consequently, we have seen retail dealers supposedly operating from rooms that are little more than broom closets in buildings housing another 10, 15 or more retail dealers. We have seen “dungeons" in building basements acting as dealers' registered locations and a retail dealer’s licence issued to a farmer's corn field in Northern Ontario!

Where have the standards gone?

The standards we have now, have stood the test of time for 55 years. Yes, times are changing and standards need to change as well, if they are to remain relevant. But surely, these changes should be enhancing the image and professionalism of the industry, not the reverse.

VOLUME 8, ISSUE 1 | 9

A member service of the UCDA

Does your DMS integrate with Accounting software like QuickBooks?

A high percentage of Used Car Dealerships are using QuickBooks to manage their invoices, pay their bills, and track their cash flows. They also use it to generate month-end and year-end financial reports as well as prepare for quarterly or annual business taxes.

One of the biggest hurdles they face is putting data into their DMS and then re-inputting the same data into their accounting system. This is a tall order as errors are easily made when done manually. SureFire DMS has solved that problem by providing a seamless integration with Quickbooks Canadian Edition software.

KEY BENEFITS Manage Sales and Income - You can manage sales and income in QuickBooks by having SureFire DMS push your invoices to Quickbooks so you can track sales by customer.

Keep Track of Bills and Expenses – with the click of one button SureFire DMS can send your vehicle related bills directly into Quickbooks so all of your expenses are categorized.

Track Inventory - keep track of the inventory you sell including particular unit costs, SureFire DMS pushing into QuickBooks will automatically track and update this for you. While keeping track of inventory is doable in an Excel spreadsheet, it can be very time-consuming

Gain Key Reporting Insights to Your Business - By managing all of your cash inflow and outflow activities, you are able to access several reports that provide valuable insights into your business such as: • Profit and Loss Report • Balance Sheet Report • Statement of Cash Flows Simplify Taxes – Do you dread tax season.

Whether you have to consolidate several Excel spreadsheets or organize a shoe box full of receipts, it can take you longer to get your tax professional what they need than it takes to prepare your tax return from within Quickbooks!

Don Garry, President of SureFireSolutions.com, notes “We are seeing a significant increase in the number of Dealerships requesting our seamless integration with Quickbooks. The accuracy and detail which we can provide in your accounting system is unsurpassed!”.

SureFireSolutions.com is a leading Canadian provider that offers an affordable and easy-to-use cloud or local based DMS for the Automotive, RV, Marine and Motorsport Industries. Their end-to-end system includes Finance & Insurance (F&I), Customer Retention features, Inventory, Sales, Mobile app and Parts and Service.

Dealership feedback about their training and ongoing program support is excellent.

For more information or to book an online demo, call SureFire Solution’s Sales Department @ 1-877-214-2522 Ext. 1 ... We’re there for you!

THE LAW MATTERS Whoever Owns the Data Wins This seems like the thin edge of a wedge, because this issue is not going to go away.

By Jim Hamilton Legal Services Director

Standing in opposition, not surprisingly, are some of the biggest players in an already huge market for DMS providers. They argue that dealers rely on the tech DMSs bring to the table to collect, store, compile, analyze and make useful vast quantities of data, that the dealers themselves would be unable to deal with. These companies, as well as some privacy experts in the field, argue to keep the data safe from hackers and protected from corruption, the resources of the DMSs are required. Naturally, the child of their argument is that the DMSs needs to own the data. For these reasons, DMSs oppose the legislative push.

In past issues of this magazine, I’ve suggested that the question of who owns and controls the data generated by consumers in the retail vehicle marketplace is an open one.

Dealer groups in the States brush such concerns aside, confident that dealers can secure the data they own, they just need more control over it in order to do so.

An interesting story out of the U.S. shows that dealers down there think they know the answer, at least as it relates to their relationships with the Dealer Management System (DMS) providers they deal with. The dealers own it!

Indeed, this whole area is already sensitive as ongoing litigation between Cox Automotive, and others, has involved CDK and Reynolds and Reynolds in allegations of high fees, collusion, anti-competitive behaviour and that litigation continues. Other similar suits have seen multi-million-dollar settlements.

Dealer groups and their lobbyists find a sympathetic ear at the State level, and it often surprises me how swiftly legislation can follow in the United States.

Media reports indicate Montana, Oregon, Arizona and Hawaii (and moves are afoot in North Carolina) have passed, or are working to pass, laws that make it clear that dealers in those States own and control the data stored in the DMS that they use. This also serves to prevent the DMS from charging third parties a fee for access.

Of course, DMSs are not sitting back and just accepting this. A spokesman for Reynolds, Thomas Schwartz, is quoted as saying: “The legislation in these States could be interpreted as restricting our ability to secure the Reynolds DMS and the data in it in the ways we believe are necessary – and required by the [Federal Trade Commission] in order to safeguard consumer data.”

The reference to the FTC is timely given the recent settlement between the FTC and a company called Dealer Built (which we

reported on in our Front Line newsletter) who were the victims of a hack that compromised over 12 million consumers' records from 130 dealerships. This marked the first time the FTC went after a DMS and underlines that insecurity of data is not just a paranoid fantasy.

DMSs, like Reynolds, want to make the connection, because if these laws do impact the ability of these companies to respond to the need for more security over the data, this could be a legitimate way to put an end to the wedge opening the door even wider on dealership ownership of the data.

There are strong arguments on both sides of this debate, and concerns about privacy and data security are real. You’d have to have your head in the sand not to realize that.

And let’s not forget, there is yet another party that might think they own the data … the consumer. After all, they generate the data, own the car, and provide the content that everyone is fighting over!

California might be moving towards a recognition of this, with their privacy law set to be fully fleshed out by the summer of 2020, but being enforced now. It allows consumers to demand to access their data, to know whether it is being sold and to opt out if they choose. They can also demand deletion.

If that doesn’t sound like ownership, then I don’t know what does!

Anyway, one thing is certain, this debate will not end in Oregon, North Carolina or California.

Rest assured, this issue is coming to Canada too … in fact, it already has, if you read your news feeds. ■

VOLUME 8, ISSUE 1 | 11

YOUR DIGITAL MARKETING BUDGET

$

$ $

By Angela West

WHAT YOU NEED TO COMPETE ONLINE MARKETING IS ONE OF the most critical aspects of any business - without it, it’s impossible to keep the lights on. Billions of dollars are spent on marketing each and every year, all with the goal of growing business, reaching new audiences, and strengthening brand identity. The automotive industry is no different dealerships spend a significant amount every year to achieve growth and stay ahead of the competition.

The importance of digital marketing continues to grow in all industries, providing a viable way for small dealerships to compete with the bigger players at a lower cost, reaching new audiences, and being able to track results with measurable data. Digital marketing gives customers everywhere an opportunity to connect and engage with brands, and gives dealerships

12 | THE ONTARIO DEALER

the unique chance to form stronger bonds with customers and increase brand loyalty.

Digital is king, and it doesn’t look like that’s going to be changing anytime soon.

As an automotive dealer, it can be difficult to determine how much of your advertising budget should be set aside for digital marketing. With traditional media, like radio, television, and print rapidly dwindling in popularity, it’s become more important than ever before, that dealers recognize the power of digital marketing and allocate your budget with that in mind.

In order to decide how much of your advertising budget should be allocated to digital marketing, there are a few things that need to be considered.

Trends in the automotive industry The way that the automotive industry and its customers use digital platforms has drastically transformed in recent years. Dealerships are becoming more and more dependent on digital platforms to communicate with their audience, differentiate themselves from competitors, and generate new leads. Dealerships who continue to put off their transition to

digital marketing, face the very real threat of losing sales and progress to competing dealerships, who have embraced digital platforms. The automotive industry as a whole continues to place more and more focus on the power of digital marketing, with the US automotive industry increasing its collective digital ad spending from $9.14 billion in 2016 to an estimated $15.65 billion in 2019.

Customers, too, have drastically shifted their buying habits to reflect the growing digital marketplace. More than 55% of prospective car buyers are using internet sources to do the majority of research about their purchases, absorbing ads, reviews, testimonials and more, in the process of making their purchase decision. All of this takes place long before the customer ever visits a dealership, presenting a massive opportunity for dealers to reach customers during this pivotal stage. Over 80% of customers use their smartphone during the research process, with more than 60% of them researching on their phones while at the dealership. With all this screen time dedicated to taking in as much information as possible before a purchase is made, it’s downright foolish to not see why digital

MARKETING BUDGET | ANGELA WEST

Better Together The CARFAX Canada Vehicle Valuation Report and Vehicle Trade-in Widget are like coffee and donuts – great on their own but when they’re together, they’re just better! They work hand-in-hand to help you provide realistic trade-in values while building trust with your customers.

Cream and sugar not included.

See how they’re better together at go.carfax.ca/better

marketing has become such a force in the industry.

A significant part of your advertising budget should be spent on digital marketing The biggest problem facing dealers is that they simply aren’t putting enough of their budget into digital marketing. In order to emerge victorious in an increasingly competitive market, digital marketing should make up a significant portion of

your advertising budget. Your customers are going online to find information and their purchase decisions are being influenced by the messaging they’re seeing throughout research. If you want to compete, you have to join in on the conversation.

The key to competing is to spend your budget wisely - advertising on platforms like Google Ads, YouTube, and Facebook, should take heavy priority over all other platforms, and they need to be given a

significant amount of your budget. These platforms are where the majority of your buyers are spending their time and money, and ignoring them only serves to hurt your business and boost your competitors.

The rest of your budget should be spent on a mixture of other social media platforms like Instagram, and on traditional media like local television, radio, and online newspapers. These platforms can still prove to be very beneficial to developing knowledge of your brand, so abandoning them completely could prove to be unwise.

However, the budget that you’ve allocated to traditional media in the past, should become a much smaller slice of your marketing budget and the rest should be given over to digital advertising. If you are looking for exact numbers, the average percentage of marketing spend on digital by dealers in the U.S. was 53% in 2018, with that number expected to rise to 60% in the next couple of years.

VOLUME 8, ISSUE 1 | 13

MARKETING BUDGET | ANGELA WEST It is also worth noting, that if your marketing team isn’t already well-versed in digital, your spend is best handled by a digital marketing agency, particularly one that specializes in automotive. While it is true that they take a commission on your spend, that money usually returns itself many times over in the increased effectiveness of your digital advertising.

Realistically, properly managing digital advertising is a full-time job best handled by people with experience. If you want to manage it in-house, you need to invest in training for your current employees or hire new ones with a proven background in digital marketing.

Track your ad spend to see how far your dollars are going Unlike traditional media, which can be very difficult to accurately analyze and often leaves you in the dark, digital marketing provides quantifiable data that shows you exactly where your customers are coming from and how often they’re converting. It’s important to not invest too heavily in any medium that you can’t track - it’s as good as going in blind, and makes it extremely difficult to determine ROI. Having the ability to accurately track your marketing spend, will let you see the impact of every dollar spent on digital marketing, allowing you to pivot quickly when strategies aren’t working and to see the ROI of every channel your dealership is using. Tracking also lets you find and eliminate blind spots caused by ineffective or broken third party solutions and integrations.

Commonly used dealership solutions, like DealerTrack, Dealer.com and Dealer eProcess, give you access to in-depth marketing analytics about traffic to your website, informing you about how many people are visiting your website, what they’re

14 | THE ONTARIO DEALER

looking at, how long they’re staying, if they’re returning, and how often they’re being converted to leads and customers.

By knowing more about the pre-purchase behaviours of your customers, you can tailor your marketing strategies to better prioritize real opportunities and improve ROI. The value of analytics Having the ability to see who your marketing efforts are reaching is extremely important to maintaining a successful digital presence. Marketing on digital platforms gives you access to invaluable analytics about age, location, gender, interests, and more, all of which can be used for granular targeting. Platforms like Facebook and Google Ads, let you target hyper-specific demographics, helping you reach exactly the kind of people who have proven to be interested in what your dealership has to offer. Analytics can also save you time by telling you exactly who isn’t interested in what you have to offer - why bother targeting broad groups of people who have consistently shown that they’re just not interested?

The increasing popularity of streaming media Audiences are largely turning away from television and focusing their attention towards streaming media platforms, like YouTube, offering dealerships a great opportunity to make the transition from TV to video ads. Google has even reported that nearly 70% of customers who used YouTube while purchasing a car were heavily influenced by it - more so than TV,

magazines, and newspapers.

YouTube ads let you show off what makes your dealership and its offerings so unique, building your brand with creative messaging that is more likely to resonate with viewers. YouTube’s targeted advertising platform also gives you the unique chance to sell specific vehicles and services to various targeted audiences, letting you diversify video ads for different audiences, rather than running one static television ad for the general public.

YouTube also offers dealerships the unique opportunity to pay only when people are actually watching your ads. TrueView lets you reach your targeted audience, while only paying for exactly what’s being viewed, increasing the likelihood that ads are being viewed by interested audiences and that conversions are more likely to take place.

Services like these offer flexibility that just can’t be matched by traditional media.

Using digital marketing to its fullest potential can unlock an infinite amount of opportunities for dealerships looking to grow their business, reach new audiences, and establish a recognizable brand, that customers don’t hesitate to engage with. Your marketing budget should be dominated by proven and trackable digital platforms, like Google Ads, Facebook, and YouTube, that will drive traffic to your website and result in more conversions.

Customers are spending more and more time online and businesses need to follow suit, in order to grab their attention. By allocating the perfect amount to your digital marketing budget, not only will you be able to maintain the attention of established audiences, but you’ll be able to expand your horizons and succeed in ways that were previously impossible. ■

TELEPHONE SKILLS - DO YOU STILL NEED THEM?

By Joanne Walmsley

IN THIS DIGITAL AGE, there are so many

communication options available to use in conducting business ... email, text, newsletters, Interactive Voice Response Systems (IVRs for short) and social media platforms such as Twitter, Instagram and Facebook ... to name a few. In light of this, some might say using the telephone as a means of conducting business and having a live person on the phone is oldfashioned.

If this is true, then learning or possessing good telephone skills is totally unnecessary.

“Hello, you have reached ‘ABC Consulting.’ Please listen carefully as our menu options have changed.

If you would like to reach our ordering department, please press 1, followed by the pound key.

Should you wish to speak with someone in shipping, please press star 453346.

For our complaints department, please hang up and call 987-555-5555 between 9 a.m. and 5 p.m. Monday – Friday only.

For all other departments please stay on the line and someone will be with you shortly.”

However, I think businesses are turning this thought on its head and beginning to understand, that if face-to-face communication is not possible, then telephone communication with a live person is the next best thing.

“I’m sorry, that selection is incorrect.

Please try again.”

For example, how do you enjoy IVR communication? Consider this scenario.

<Elevator music begins to play and I recall I have to press something else

<Elevator music plays until I press 1.>

after the number 1. But what was it? Was it the asterisk or the pound key? Once I remember, I press 1, followed by the pound key.> “I’m sorry, you waited too long to make your selection. Please call again another time. Goodbye.”

Sound familiar? Is it an effective method of offering service or does it leave you annoyed? The truth is, even the best Interactive Voice Response Systems are impersonal and can leave a caller frustrated and with a feeling of disconnectedness.

Liel Leibovitz, New York University Assistant Professor of Communications published a study about this. Results showed “an overwhelming majority (83%) of consumers feel IVR systems provide either no benefit at all or only a cost savings benefit to the company.”

VOLUME 8, ISSUE 1 | 15

TELEPHONE SKILLS | JOANNE WALMSLEY When it comes to service options, Leibovitz found only “15% of consumers chose IVR as their preferred option and 67% still prefer live agent-provided service over other service options.”

A study by call analytics company Invoca, found that negative experiences with businesses over the phone will impact ROI and loyalty.

The DISCOVER credit card company began offering customers the option of reaching a U.S. based live operator instead of its IVR. The benefits were numerous, including upstaging American

Express, by being awarded the J.D. Power Award 3 years in a row for "Highest in Customer Satisfaction" for a credit card company.

Other businesses are following the DISCOVER credit company’s lead in placing more emphasis on offering a home country based live person on the other end of the telephone. And, it appears the use of the telephone as a communication platform and effective telephone skills may be making a comeback in the business world.

It is not only in the customer service world where good telephone skills are a requirement. A recent review of job postings on an online job board revealed that strong communication skills and telephone skills are essential for success in many other occupations.

One posting for a recruiting firm stated, “Excellent interpersonal skills with high professionalism, in person and by phone are required.”

Another posting, for an editorial role, stated that the applicant was required to have “stellar communication skills, including a keen instinct for when to get face-to-face, send an email, have a quick chat on Slack, pick up the phone, or schedule a video-conference.”

Additionally, an Internet search revealed a multitude of training courses geared to teaching effective telephone skills across a diverse range of industries such as ophthalmology, print media, employment recruiters, library and technology services, medical, and finance, to list just a few.

In a recent conversation about this topic with Shannon Milo, Director of VOS Motors in Concord, Ontario, he said: “At one time, a potential buyer would come into the dealership. The salesperson would provide information

about vehicles of interest to that customer and then guide them through the buying process. Communicating face-to-face provided the opportunity to use facial expressions and bodily gestures that added to the experience and helped in being able to develop a positive, trusting relationship with the customer."

Now, however, due to the Internet, buyers do their own research. In so doing, they often know more about the vehicle they want to buy than a salesperson might. This means the buyers are “ready to buy”, but they just need to find a person they want to work with to make the purchase.

This also means a salesperson can make or break a potential deal within the first 30 seconds of communicating with the ‘ready to buy’ buyer.”

“A good salesperson in this industry must have strong and effective communication skills no matter the communication method chosen by a potential buyer.

They must respond to queries quickly whether they are delivered by text, email or phone. And, without the advantages offered by face-to-face contact, it is important that a salesperson inject positivity and understanding into their replies. Smiling while you speak on the phone or respond digitally can help accomplish that.”

Shannon added, “Personally, I think telephone skills have developed into one of the most important parts of an automotive salesperson’s job.

Communication by phone accounts for almost 80% of the buying process on new products, and 60% on used products.”

Those are big numbers and they are likely similar in many other industries.

If acquiring and retaining customers is essential to maintaining and growing a business, proper telephone etiquette and

16 | THE ONTARIO DEALER

TELEPHONE SKILLS | JOANNE WALMSLEY nodding your head in agreement and leaning into the person who is speaking.

Although these techniques are not possible in a telephone interaction, it is still possible to show your caller you are concentrating on what they are saying, by using language to demonstrate your concern, listening without interrupting and paraphrasing to show understanding.

effective listening and speaking skills are imperative. If a customer’s telephone experience with you is negative and not helpful, they are likely to take their business elsewhere and, they will likely tell others not to do business with your organization. With a negative telephone experience, you have just lost one customer, as well as the possibility of gaining a new one.

On the other hand, if a customer’s telephone conversation with you is pleasant, helpful and you provide them with the sense that you care about their needs, they will likely do business with you again. Plus, they will not hesitate to recommend your business to their family, friends and co-workers. You have kept a customer and potentially gained some new ones. Never underestimate the power of “word of mouth” advertising!

Here are a few other telephone skills which can help maintain and grow your business whether it be one that offers beauty and spa services, travel experiences, medical services or new and used car sales.

1

Create a Positive Atmosphere and Personalize the Experience A customer’s telephone call experience begins the moment they hit the dial button. Being quick to answer the phone and offering a warm

greeting, expressed in a welcoming, enthusiastic tone, sets the stage for a positive customer experience. Ask the customer if you can call them by name and, if permission is given, make certain to personalize your conversation with them by using their name periodically throughout the conversation. Instead of giving the customer the impression they are wasting your time, your tone, words and personalization makes them feel they are the most important person to you at that moment and that you are happy to be of assistance to them.

With active listening, you can cut through any confusion, adequately understand the situation and then apply solid problem-solving skills to resolve an issue or situation. Ensure you do not end the call until you have answered all of their queries. Before hanging up, it is good practice to ask if there is anything else you can help with. This will prevent customers having to phone repeatedly to get information or resolve an issue.

"..Communication by phone accounts for almost 80% of the buying process on new products, and 60% on used products."

Repeat business, a business referral and the opportunity for increased sales can result. If a customer senses you are friendly, enthusiastic and eager to answer their questions or solve problems, you are in a better position to upsell or sell additional products to them. With such a telephone demeanour, a customer will be more receptive to what you have to offer.

2

Cut Through Confusion and Avoid Repeat Calls by Listening Well

Active listening employs techniques that show the other person you are listening to them with mindfulness and are concentrating on what they are saying. In face-to-face conversations, this might include nonverbal cues such as direct eye contact,

Fewer repeat phone calls means your customer feels valuable and you have more time to spend on other important aspects of your business.

3

Diffuse Anger and Exceed Expectations

Customers may call a business with a problem or complaint. They might be angry and likely, do not have high expectations that you will be

VOLUME 8, ISSUE 1 | 17

TELEPHONE SKILLS | JOANNE WALMSLEY helpful in resolving the issue. In fact, they may expect a fight. Imagine their surprise, however, when you respond to their complaint with good telephone skills including listening effectively and speaking in a pleasant, calm demeanour.

If you speak softly and are careful not to interrupt or speak over the customer, it shows them you are empathetic and willing to collaborate with them, to resolve any issues raised.

In applying these skills, you exceed a customer’s expectations and leave them with a pleasant impression of you and the organization. This will also likely result in a satisfactory outcome for both of you ... namely repeat business and a business referral or two.

4

Promise Immediate Action & Fulfill the Promise in a Timely Manner Callers hate delays.

Express your willingness to assist and help meet the caller’s needs as

18 | THE ONTARIO DEALER

quickly as possible. If feasible, provide an estimated timeline for meeting the customer’s needs. Employing these two techniques on the phone can gain you a reputation as a person willing and able to resolve problems quickly. This will go far in solidifying the customer’s positive opinion of you and the business.

5

Leave a Good Last Impression

Ending your call properly is as important as starting the call properly. It helps the caller feel valued

and avoids miscommunication. Before ending the call, quickly summarize the steps taken during the call and ask if the caller needs any additional assistance.

Continue to use the caller’s name, if permission to do so was given at the outset of the call. These steps show your desire to help the customer is genuine and, it ensures the customer is satisfied with your interaction. To show you appreciate the customer, always thank them for their business. This will leave the customer with a good feeling about you and the business.

6

Telephone skills – do you still need them?

The answer is an unequivocal “Yes!” But only if you want to offer excellent customer service and grow your business. ■

TRENDS | CHRIS CHASE

TECH TALK

By Angela West

HERE’S THE LATEST ON WHAT’S HAPPENING IN AUTOMOTIVE GADGETS AND APPS. The holiday season might be over, but that doesn’t mean you can’t enjoy amazing gadgets and accessories that make driving a safer and more enjoyable experience. Whether it’s self-improvement, leisure, or safety you’re after, there’s always something new and exciting to make your upcoming road trips more memorable.

Here’s the latest on what’s happening in the world of automotive gadgets, apps, and accessories.

Track locations, car health, and access insights into driving habits Vehicle location tracking has proven to be invaluable in recent years, saving lives and giving parents everywhere peace of mind as their young ones get on the road for the first time.

Bouncie is a

VOLUME 8, ISSUE 1 | 19

TECH TALK | ANGELA WEST revolutionary vehicle location tracker that aims to give car owners complete peace of mind, keep them better informed about the health of their vehicle, access driving habit insights, and more. The device, which can be installed on just about any vehicle with an OBD port (most vehicles manufactured after 1996), updates location data and diagnostics in near real-time.

Bouncie can be used by families for making sure that young drivers get to their destination without any trouble, or simply by those who like to know where their vehicle is and what’s going on with it. The device uses Google Maps to let you view the location of your car, and to see routes, addresses, ETAs, and more. Every road trip can be stored for later access, including information about speed and routes taken. Bouncie’s car health check feature reports everything from check engine lights and fuel or battery levels, to upcoming renewals, insurance coverage, tire rotation, and everything in between. If the unexpected happens to you or your young drivers, Bouncie can easily send help with the push of a button.

Find out more about the Bouncie OBD device at bouncie.com.

20 | THE ONTARIO DEALER

Rooftop tent lets you explore the world without the hassle

that lets campers set up their tent in 60 seconds flat.

Getting out on the open road to explore the world around you is one of the most satisfying experiences you can have. Skycamp makes every road trip a memorable one by letting you set up a safe and secure tent in minutes, making any stop you make a perfect campsite. This unique rooftop vehicle tent was kickstarted in a wildly successful crowdfunding effort, quickly becoming available in dozens of countries around the world. Last year, the Skycamp 2.0 was released, featuring a new and improved design

Skycamp 2.0 features a floor that folds out into a king size mattress that can comfortably sleep up to 4 people, with memory foam ensuring that campers get a good night’s rest. The tent is accessed by a re-designed ladder with level steps that make climbing an effortless experience. Canopy windows offer a clear view of your surroundings, and a wide range of accessories are available to customize the Skycamp 2.0 to its fullest potential.

When the rooftop tent is stored away, stainless steel hardshell locks give you

TECH TALK | ANGELA WEST peace of mind that the Skycamp isn’t going anywhere. Skycamp by iKamper fits nearly every vehicle thanks to a universal mounting system that lets drivers everywhere fall asleep under the stars.

Find out more about the revamped Skycamp 2.0 at ikamper.com.

A dashcam that captures more than just video Dashcams have truly changed the driving experience, keeping drivers safer than ever before by capturing incidents and accidents in clear quality, to help hold other drivers accountable, prevent theft, and more. Raven is a modern dashcam attempting to stand out from the crowd by offering drivers unique features like dual live cameras, live tracking and navigation, driver insights, wi-fi hotspot, real-time incident notifications and even gesture-triggered videos. With Raven keeping watch, you never have to worry about the unknowns of owning a vehicle.

Raven is easy to set up and use, plugging into your OBD-II port and seamlessly mounting onto your dash so you can start enjoying peace of mind immediately.

Raven’s dual camera features a high definition road-facing cam and a night vision-enabled cabin camera, that can capture accidents, thefts and breakins no matter what time of day it is.

Security alerts keep you informed about bumps, break-ins and collisions, in real-time and live GPS tracking ensures that no matter what happens, you’ll always know exactly where your vehicle is. Raven’s dashcam can be

triggered using gestures and events, ensuring that memorable road trip events and accidents are instantly saved and sent to your phone. Vehicle diagnostics can be interpreted quickly to help you solve problems, and realtime information lets you keep track of speed, fuel, driving history, and more.

Learn more about Raven at ravenconnected.com.

Don’t let back pain control your life Back pain is a problem that plagues millions of Canadians, especially those who work in an office environment or who frequently drive long distances.

BackShield is trying to alleviate back pain and help drivers enjoy the experience of being behind the wheel again, with their portable product.

BackShield’s goal is to help people live their lives to the fullest, by improving posture and preventing back pain. The unit is portable and fits perfectly in just about every vehicle or office chair, helping you improve your posture on-the-go. Unlike other products that alleviate back pain, BackShield aims to support the curvature of the spine to assist proper circulation, relieve lower back pain, and improve your posture. The creators of BackShield are so confident that their product will change your life, that every unit comes with a risk free guarantee.

Beat back pain today by visiting backshield.com.

Work like an executive in your own vehicle When you’re living a busy life, sometimes your work has to come along with you. The RoadMaster Car desk by AutoExec helps you get your work done in your car (not while

you're driving, of course), offering a comfortable place to take notes while you’re on a call or to add the finishing touches to a big presentation. The RoadMaster Car features a laptop support system to help you create a productive work environment, even when you’re on the road.

It can be easily adjusted for added comfort, and features an extended laptop plate to make typing comfortable. RoadMaster desks fit nearly any vehicle and are easily secured with a seatbelt, to ensure that your workspace stays where it should.

Buyers can choose from a number of finish styles, and can customize their RoadMaster Car with phone mounts, power inverters, printer stands, and tablet mounts.

More information about the RoadMaster Car at autoexec.com. ■

VOLUME 8, ISSUE 1 | 21

TRENDS

By Chris Chase

IN AN EARLIER TRENDS column, we

told you about a handful of the technologies available in modern cars and trucks, that will eventually enable fully autonomous vehicles, including collision warning, automatic emergency braking, blind spot monitoring and lane departure prevention.

In the three years since we published that piece, automakers have taken the next step toward making selfdriving cars a reality, with assistance systems that take some of the stress off a vehicle's driver in heavy traffic situations.

All of these systems use technologies we've seen before, but allow them to work together to provide what the U.S. National Highway Traffic Safety Administration (NHTSA) calls level 2

22 | THE ONTARIO DEALER

automation. That means the vehicle will control steering, acceleration and braking, at the same time during highway driving, allowing the driver to remove their hands from the steering wheel for short periods of time.

While advanced technologies are normally first offered by upscale manufacturers and then migrate to lower-priced vehicles via the trickledown effect, level 2 automation has emerged in a more democratic fashion.

Mainstream automakers, like Ford and Nissan, began offering their level 2 systems around the same time as luxury manufacturers, like BMW and Mercedes-Benz.

In this Trends column, we'll explain how these systems work, so that you can help your customers understand what they're getting for their money.

First, however, it's important to remember that level 2 automation only works in highway driving, because the technology that will allow reliable automation in urban environments via vehicle-to-vehicle (V2V) and vehicleto-infrastructure (V2I) communication has not reached the marketplace.

Eventually, V2V and V2I will allow cars to communicate with each other and with roadway infrastructure like traffic signals.

What a level 2-enabled vehicle does have is adaptive cruise control and lane departure prevention systems, whose sensors monitor the space around the vehicle. These allow the car or truck to maintain a set distance from the one in front, by adjusting its speed and coming to a complete stop when required in heavy traffic and by steering automatically to stay centered

TRENDS | CHRIS CHASE in a lane by comparing the vehicle's position relative to lane markings.

Mercedes-Benz Intelligent Drive Package

More advanced level 2 systems add evasive steering assist (which helps the driver steer clear of a potential crash) and the ability to safely move the car off the road and stop it automatically, if the driver lets go of the steering wheel for too long.

That latter function is intended to avoid crashes caused by an incapacitated driver.

Mercedes's Intelligent Drive Package is analogous to the BMW Advanced Driver Assistance system, providing highway driving help and adding a collision avoidance steering function in higher-end models.

Nissan ProPilot Assist Nissan's driver assistance suite is one of the most affordable level 2 systems available today.

The company began offering ProPilot Assist in its popular Rogue compact crossover in 2018. That year, it was an option in the SL Platinum trim. In 2019 Nissan made the system standard in the SL and added it to the lower-priced SV's option list. Nissan also offers ProPilot Assist in the Altima sedan and the Qashqai subcompact crossover.

Ford Co-Pilot360 Assist+ Ford's level 2 autonomy system is not to be confused with a less-sophisticated package simply called Co-Pilot360. The level 2-enabled Co-Pilot360 Assist+ suite first became available in 2019 in the Fusion sedan, Edge crossover, and Ranger mid-size pickup truck. It was later expanded to the F-150 full-size pickup and the 2020 Explorer and Escape crossover SUV models.

BMW Advanced Driver Assistance Package and Driving Assistant Plus BMW also offers two versions of its level 2 autonomy system.

Driving Assistant Plus is offered in the brand's lower-priced vehicles and provides adaptive cruise and lane centering functions.

The Advanced Driver Assistance Package is a more sophisticated suite, reserved for uplevel models, whose main addition is crash evasion assist.

Both of BMW's level 2 self-driving assist systems are extra-cost options.

General Motors SuperCruise General Motors SuperCruise is less widely available than other level 2 autonomy systems. Unveiled in the 2018 Cadillac CT6 luxury sedan, SuperCruise differs from other early self-driving systems, in that it uses map data covering more than 300,000 km of highways in North America to help improve performance. In the summer of 2019, rumours emerged that GM was working on a level 3 version of SuperCruise, capable of taking full control of the vehicle for extended periods with no intervention from the driver. ■

B U R O K A S

L A W

Former OMVIC lawyer now representing dealers for all legal needs.

michael@burokaslaw.ca 647-863-6563 burokaslaw.ca

VOLUME 8, ISSUE 1 | 23

DEALER PROFILE World Fine Cars

By Ronda Payne Honest Luxury BACK IN THE 80s, luxury car dealers took customers’ used models in as trades when the next Mercedes-Benz, BMW or Porsche was purchased, but those dealers didn’t have used car sales. They only sold new.

This opened a huge opportunity to reach those who wanted a high-end luxury car, but didn’t want to pay the new car price tag. Peter Santos saw a way to help the luxury dealerships liquidate their used car inventories while helping buyers find quality used luxury cars. In 1983, he established World Fine Cars on Dundas Street in Toronto, which specialized in European luxury vehicles.

Peter’s son Eric is now the general sales manager for the dealership, but Eric says his dad is still very involved in the business.

“He’s here before I am usually,” Eric says. “For him, he started with one car -- the business is definitely his baby.”

As a Portuguese immigrant, Peter naturally reached out to others in Toronto’s Portuguese community to find buyers for his first few cars. This early support is one of the reasons the Santos family does a lot for the local Portuguese community and specifically for the Luso Canadian Charitable Society.

Word spread about Peter’s cars and the business grew.

“My dad, being of European decent, he knew the value in those [cars],” says Eric. “So, he was one of the first guys

24 | THE ONTARIO DEALER

VOLUME 8, ISSUE 1 | 25

World Fine Cars to start selling European luxury imports.

Peter had a passion for those cars and he brought that to the business.

“He’s always been a sales-driven person, he’s been self-motivated,” Eric says. “He was offering a product that wasn’t being offered before.”

Since that first location opened, there have been three moves for the business, each leading to a larger location. Now, World Fine Cars is located on Kipling Ave. in the Etobicoke region of Toronto. Eric recalls being involved in the family business from a very young age.

“Funny enough, I actually helped build it,” he says of the dealership being built in 2001. “I helped scrape cement off the bricks. I would have been 11 years old.”

No one seemed too concerned about Eric being “child labour” because his love of cars and constant involvement in the

26 | THE ONTARIO DEALER

family business kept him interested. His brother Michael caught the auto bug too and he manages the family’s Mercedes-Benz dealership in Peterborough.

“At the end of the day, it’s the love of cars that bit me,” Eric notes.

The dealership has a large showroom which holds about 35 cars and there’s usually another 65 on the lot. The business also makes use of its own leasing company to offer luxury leasing and there are various kinds of bank financing available.

“We go all the way, from cars that are $5,000, up to half a million dollars,” Eric said.

“We also service anything we sell,” Eric says.

“Our head technician has been with us since the beginning. It gives our customers peace of mind, so they bring it back to us.”

The team at World Fine Cars is made up of 22 people who appreciate the family-oriented

environment as much as customers do.

“I think that’s the feeling when you do business with us,” he says of the family-based operation. “It’s not just a transaction. You become part of our family and we’ll always remember our customers. That goes for the service side of things too.”

Selling within Canada and around the world is done through the dealership’s own website as well as through other sales tools.

“I think for us, it’s always been service-based,” Eric notes. “We’ve always been available to our customers. We’re very hands-on people.

We’ll always care for our customers.”

He adds that family members are always accessible within the dealership. Eric doesn’t see World Fine Cars as a job, instead, he describes it as a way to talk to others who are passionate about cars every day, while seeing new and unique vehicles all the time. ■

DEALER PROFILE | RONDA PAYNE

VOLUME 8, ISSUE 1 | 27

HOW TO ANALYZE YOUR WEB ANALYTICS

By Angela West

ONE OF THE ADVANTAGES of the online landscape is being able to see exactly what potential clients are looking at, but the increasing complexity of online analytics can make it difficult to monitor all of the online activity you need to. While there are excellent all-in-one solutions out there, it pays to know how to analyze data on each platform. It is also necessary to make sure that all of your analytics solutions are properly set up with the right tracking code on your website.

Mastering Google Analytics The first stop for anyone who wants to properly understand web analytics is Google Analytics. Consult with your web professional to ensure that Google Analytics and Google Search Console are properly installed on your website, and get them to set you up with access to your Google Analytics. You will also want to ask them to ensure that your Google Analytics and Google Ads accounts are properly linked, and your paid advertising campaigns are being tracked properly from within Google Analytics.

28 | THE ONTARIO DEALER

The Google Analytics dashboard offers a wealth of information that can be difficult to parse, but some of the most important metrics to pay attention to are time spent on your content, average number of pages visited by each user and bounce rate.

The average number of pages visited by your users is important, because if it is just one, that means users are abandoning your site after landing on it. Ideally, a vehicle shopper should be landing on 2-3 pages per visit.

Your bounce rate is the percentage of users that leave the site after a short period of time. If it is unusually high, for example between 80 and 100 percent, it may deserve examination. However, bounce rate is best evaluated by its source, rather than as an average number for your entire site. For example, if a particular ad campaign is showing a high bounce rate, that ad campaign should be changed to bring you more targeted leads, that will stay on your site.

Time on content is also important. If users are spending under thirty seconds on each page, they aren’t reading it or looking at pictures.

If any issues exist, consult with your web team to drill down to why users are abandoning or not spending enough time on your content. It may be technical issues on your site, bad usability that doesn’t allow users to find what they need to easily, or advertising that is too broad and is not capturing interested users.

You will also be able to view content performance. If, for example, you see that a blog post is attracting a high number of visits to your site, you’ll know to optimize the page to add extra conversion points for your leads.

Track who is visiting from your Facebook Ads and other Digital Advertising Google Analytics will offer referral sources, which include social media visits from various sources such as Twitter, Facebook and Instagram. But to ensure that your

WEB ANALYTICS | ANGELA WEST integrations are widely available.

Facebook Ads are tracked correctly, you will want to add Facebook Pixel code to your website. This will allow you to get far more information on visits to your website from your Facebook Ads, which can be tracked in Facebook’s Business Manager with regular reports.

You should also make use of the Campaigns feature in Google Analytics to track specific ads, which is a good idea if you are spending significant money anywhere online. You’ll need to generate a Urchin Traffic Monitor (UTM) tracking link for each ad which you give to the advertiser to use for your campaign, and your web team will be able to do this for you. Once the UTM links are used in an ad, the Campaigns tab will allow you to see its performance.

This is especially helpful in situations where you are relying on the advertiser to report numbers to you. While there will be discrepancies between the advertiser’s report and your Google Analytics Campaigns data, due to technical issues, such as cookies being turned off, if discrepancies are alarmingly high and the campaign performance is low, you may want to take your budget elsewhere.

Analytics on Email Newsletters Most platforms, such as Mailchimp and Constant Contact, have built-in analytics

All-in-one analytics solutions offer a good executive summary

that you can use to ensure that visitors from your email newsletters are tracked properly by Google Analytics. Make sure you are using these tools, so you know what people are clicking on from your campaigns. You also want to pay close attention to email open rates; the average one in 2019 was 14.19%. If you are falling below that benchmark, tweak your approach by writing more engaging subject lines.

A common mistake made by many small businesses, is to use a newsletter module that is built-in to other services, such as a CRM or an ecommerce platform.

These email newsletter modules are handy, but are often not set up as well as a professional email newsletter service, like Constant Contact, to do things such as properly bypass spam filters. Even if a customer has opted-in to a list, which they must under CAN-SPAM regulations, a spam filter can still kill your email before it makes it to them. If you want inter-operability between your email newsletter solution and your CRM,

Many dealer software solutions offer analytics as part of their dashboard.

Dealertrack Digital Retailing is one such example, offering a detailed look at the customer journey through Google Analytics. SEMRush is also an excellent solution for those who want to track SEO performance of their website, performance of paid ads, and web analytics in one place. It even offers you an approximate snapshot of how your competitors are performing online, and is well worth its low monthly cost.

These solutions offer an excellent executive summary of your web analytics, but you and your marketing staff should also monitor your actual Google Analytics, Google Ads, Facebook Ads, email newsletters and other channels, to make sure you’re getting the full picture.

Knowledge is the key to success in marketing, and you have all the knowledge you need at your fingertips.

Everything that is online has the ability to be tracked, and the savvy dealership owner and marketing team will use analytics effectively to know where to place - and not place - your budget. ■

Let us help your dealership with:

VOLUME 8, ISSUE 1 | 29

FREE SOUNDS GREAT SIRIUSXM CREATES A WIN-WIN FOR DEALERS & THEIR CUSTOMERS

By Ronda Payne THERE’S ONE DRIVING EXPERIENCE

just about anyone can relate to: cruising down a highway, sun shining and a favourite song on the radio. Now, with the help of Sirius XM, used car dealers can offer more of those songs their customers love when they drive off the lot in their next ride.

While dealers may be aware of SiriusXM from the new car side of things, since the OEM service launched around 2006, the used car market is a relatively new addition to the company’s lineup according to Blair Allison, Senior Remarketing Manager, with SiriusXM Canada. He describes SiriusXM as an entertainment company that has its own specialized and exclusive content.

“We provide it through a combination of satellites or you can stream it through the internet on any connected device,” he explains. “Right now, we’re available in around 71% of new vehicles.”

When someone buys their new car, SiriusXM is often included as a trial and sometimes the customer purchases a subscription to keep the music, comedy,

30 | THE ONTARIO DEALER

talk, sports and other content flowing after the trial ends. Then, when the car is sold, that individual usually takes their subscription to their next car. The used car still has the capability to have SiriusXM with its new owner. Allison describes it as being similar to having a sunroof, but not using it – the elements are there, they just need to be turned on.

SiriusXM saw the opportunity and knew a used car program could benefit used car buyers and dealers alike.

“In February, 2014 we launched officially for the used car market,” says Allison.

“We launched our official program. What we actually did was mimic that [new car] process. It’s possible for us to do this with any dealership with a DMS [Dealer Management System].”

In order to support dealerships in their own environments, SiriusXM has three regional managers across the country and a number of district managers.

“We’re there to support [the dealership] in every way,” Allison says. “Someone is there to take care of it for them, to make sure it’s a good experience.”

Additionally, there is a training portal with multiple modules. SiriusXM provides short videos to show dealerships the features and functions of the used car dealer program and explains how they function.

Plus, dealers can find information at dealer.siriusxm.ca, where there is collateral material and documentation, as well as details on the various dealer programs, like the pre-owned program or Service Lane, another program that allows service departments to offer a SiriusXM trial to their customers. There are also a number of contests and incentives available to used car dealers, that even include the ability to earn their own subscription to the service.

When a dealer is part of the program, the dealer demo mode is enabled on used car inventories, so that customers can experience SiriusXM immediately, even while considering purchasing the vehicle – just as they would for a new car. When the purchase is made and the dealership provides the customer’s information (with their permission of course), that customer will receive information about the free three-month trial from SiriusXM

SPOTLIGHT SERIES | RONDA PAYNE

along with details about the service, how it works and subscription options. The customer can choose to take advantage of the free trial or not, as they wish. They only incur a charge if they decide to purchase a monthly subscription to the service once the trial ends.

“We have just over 3,100 franchise dealerships who participate in our pre-owned program and another 600 independents,” Allison says of the program’s success to date. “We will communicate with the customer via a welcome package to let them know what they can get with the customer trial. Our job is to make this process as seamless as possible.”

The work on the dealership end is minimal as it happens privately and securely through the dealership’s DMS. Once the customer’s information is entered into the system, the data is sent over and the customer will receive their information about the free three-month trial.

“Our programs are all 100 per cent complimentary for the dealership,” says Allison. “There is no cost for the trial. This is a completely free program to the dealer to activate that trial for their customer.”

When the customer purchases their used vehicle, they switch over from the dealer demo to the free trial for three months.

This transition is absolutely seamless to the customer in how it operates.

“The customer doesn’t have a gap in their service,” he notes. “It creates the best customer experience for us and for the dealership.”

The next contact from SiriusXM to the customer will be the attempt to convert them to a subscription customer.

“It happens all in the background based in the [dealer’s DMS] system,” he explains of how the program works. “It is really turnkey, no hassle. We strive to continue to work with the dealerships to provide the best value we can to customers. It’s

something they can give to a customer that they really enjoy during that period.”

So, just why would customers want the SiriusXM experience? Great content – pure and simple. Whether someone is into sports updates, they want to stay on top of the latest news, they need a laugh from a comedy station after a hard day at work or they love having the wind in their hair while listening to a favourite Springsteen song, it’s all on SiriusXM from the comfort of their vehicle.

All-Access came online in 2018 which included SiriusXM Streaming. It gives customers access to all of the channels using the internet. Then in 2019 another 100 extra channels were added known as Xtra Channels. These are themebased channels for workouts, relaxation, discovery, and more to suit whatever mood a person might be in. If that weren’t enough, SiriusXM brought Pandora, the largest ad-supported audio entertainment streaming service in the U.S. into the mix, with the ability to personalize stations.

“It actually allows people to customize their own channels,” he notes. “By using thumbs up or thumbs down, you can create a customized channel that is basically evolving as you listen. That channel starts to become attuned to you.”

Through giving a thumbs up customers say they like a song and a thumbs down means “don’t play this again.” Pandora then continues to modify the playlist of the station based on these preferences, ultimately creating a personalized station that is completely tailored to an individuals’ likes and dislikes.

“This specialty channel, will start to populate music specifically for you,”

says Allison. “You can make multiple personalized stations and you can go back in and modify them.”

While subscribers and those on trial can listen to SiriusXM from anywhere they have internet access, it’s clear that the ability to listen in the car is the key. It’s something that everyone can understand – that ability to listen to what they want while driving.

“Music and entertainment, it’s part of the car. You have a soundtrack to driving,” he says. “There’s something for everyone.”

It isn’t just about delivering great content to customers either. SiriusXM is involved with the dealership community and takes those relationships seriously.

“We participate in the industry,” he notes. “We do everything we can to be there for both the dealerships as well as the automotive industry. We’re there to support them, to work with them at events, at industry evenings. We’re available for that.”

That includes being part of dealer nights, and bringing out what Allison calls the Holiday Cheer truck. Complete with music and refreshments, the truck cruised up to close to 100 dealerships over the holiday season to provide fun and entertainment.

Most new car dealers already know about the advantage of offering SiriusXM trials to their customers, but their used car counterparts may be unaware of all the advantages available to them. It’s a great way to bring something extra to customers without any additional charge. ■

VOLUME 8, ISSUE 1 | 31

THE COMMON LAWYER New Year, New Decade - Same Scammer, Better Scams if you keep the status quo you won't grow. I plan to make it my personal goal for the coming decade to constantly challenge myself and push myself out of the comfort zone – I also want to have a mid-life crisis and buy myself a ridiculously expensive and impractical car… dreams of a car lawyer!

What doesn't change in a good way?

By Justin M. Jakubiak FIRST, AND MOST IMPORTANTLY , Happy New Year! I wish you, and every other hard working automotive professional and dealership, the very best for 2020.

I truly believe that while the coming year and decade will bring challenges, they will also bring great things to those who are prepared to adapt and to embrace the numerous changes and technological advances the industry will experience.

The next decade will see unprecedented levels of change in terms of the products sold by dealerships and the manner in which those products are sold.

For me, not only is it a new year and decade, I also turned 40 on January 2nd. Ughhh! One of my birthday cards said that

32 | THE ONTARIO DEALER

Unfortunately, some things do not change for the better. In my 16 years of practice, fraudsters have continually evolved, and are increasingly using technology to target unsuspecting dealers, salespersons, managers and consumers.

Fraud targets all businesses: Small, big, mom and pop shops, franchise dealers, law offices and the like. Also, as times change, and the economy becomes more challenging, more fraudsters are entering the marketplace with ever more sophisticated tools and tricks. In the auto industry, in particular, there has been an increase in the amount of fraud perpetrated by the use of fraudulent identification, insurance information, employment information and employment documentation.

Various dealers throughout Ontario have had highend luxury vehicles stolen through the use of such scams. The fraudsters present as legitimate car purchasers, but use fraudulent identification and forged documents to

obtain financing for the targeted vehicle.

The fraud is often not realized until after several days or weeks have passed, and maybe not until the first payment is missed.

One of my lending clients recently advanced almost $100,000 to a dealership for the purchase of a fully loaded new Mercedes GLE. Shortly after the vehicle's delivery, the purported purchaser (a senior bank employee), was contacted by her credit monitoring service and informed that her identity had been stolen and used to buy a car, open various credit cards and obtain a phone.

Fortunately, because the victim acted quickly and immediately contacted the police, my client learned of the fraud almost immediately and, through working with the selling dealership, was able to recover the vehicle within days.

The vehicle was recovered with only 100 kms on the odometer and no damage.

This was a good ending – unfortunately, too often vehicles obtained this way are destined for export and are already in a shipping container and on the ocean before the fraud is discovered. Or the vehicles are recovered, but have been heavily damaged or stripped of certain valuable parts.

Could this fraud have been prevented?

I think so. In reviewing the file, and in particular the documents used by the fraudster, there were markers that the documentation was fraudulent.

However, in fairness, you really needed to review the documents closely to spot the red flags. I saw them quickly because I was reviewing the fraudulent documents knowing, or strongly suspecting, they were fraudulent. I can certainly appreciate why a salesperson, without adequate training, could have been fooled, especially when dealing with a confident, knowledgeable and attractive purchaser. Some may feel uncomfortable by my reference to attractiveness. However, in my experience, fraudsters are often well dressed, confident and use multiple tools to sell the con – including designer clothing, expensive watches and the like.

OMVIC Considerations

Not only must dealerships be wary of fraudsters, there are important OMVIC considerations to be aware of as well.

I have worked with several clients who have been charged by OMVIC in connection with schemes similar to the one described above, on the basis that they have been alleged to have "falsif(ied) [or furnish(ed) false] information and documents relating to the trade of a motor vehicle" contrary to sections 26 and 27 of the MVDA. For one client, a purchaser came in and financed a car using fraudulent employment information and documentation. My client's finance manager, having no idea that the information and documentation was false, submitted same to the lender who ultimately approved the loan. The vehicle was delivered and the purchaser subsequently defaulted on her loan.

The lender blamed the dealer when it refused to purchase back the deal, and proceeded to complain to OMVIC.

The result of the complaint was that OMVIC charged everyone who was involved in the transaction from the dealer side - the dealership, the dealer principal, the salesperson and the finance manager - under both sections 26 and 27 of the MVDA. Notice of the charges were published by OMVIC (as required by the MVDA), severely damaging my clients' respective reputations and their business relationships. The financial impact of the charges was also significant – on top of the emotional toll that all defendants experience.

After a fairly lengthy trial, and despite my belief that the evidence had gone in favourably, we lost – COMPLETELY. It was devastating. Fortunately, we felt the decision was wrong and my clients had the courage and will to proceed. We were entirely successful on appeal.

Notwithstanding the ultimate success, the trial and the appeal were exhausting and took a significant toll on the health of the dealership, its owners and employees.

I share this story not to tout my legal abilities, but to remind dealers and their staff of the far-reaching impacts of fraud, and the importance of up-to-date fraud training. It also serves as a reminder to dealer principals of the importance of being present and involved in your dealership's affairs.

There are many things that this particular dealership could have done to minimize the potential for the fraud in the first place, and to also protect itself during OMVIC's subsequent investigation. Preventative steps are almost always better than looking for a cure.

The Bottom Line Studies claim that businesses may lose 5% or more of their annual revenue to fraud. Small businesses are particularly vulnerable to fraud, and often are victims of payroll fraud, cash theft, online banking fraud, false invoicing

and email fraud. Payroll fraud is twice as likely to occur in small businesses than in larger ones. Owners must therefore gain a working knowledge of their payroll system and enforce accountability practices among their bookkeepers.

In regards to cash theft, an owner needs a streamlined cash monitoring process, both for an effective financial process and to maintain supervision of cash flow within the business. On a somewhat related note to cash theft, online banking has increased the threat of funds being transferred into erroneous accounts.

Proper supervision and policies are required to combat these types of fraud within your dealership.

It is also helpful to ensure that you have adequate insurance in place for when frauds do occur. Given adequate insurance coverage is an article topic on its own, I will simply say that you should not assume that a Cyber Policy or a Fraud Policy, for example, will cover all manner of electronic fraud which may occur – insurance policies and coverage issues can be tough, and it is best to make sure that you ask detailed questions of your broker and lawyer when determining the coverage you may require.

Plain old vehicle theft continues to be a concern as well. Recently, OMVIC posted a bulletin warning dealers of a violent car thief targeting GTA dealerships. The alleged thief, "a welldressed male, posing as an interested buyer" was walking into dealerships and asking to see high-end vehicles. Upon being given the keys he would enter the vehicle, lock the doors and drive away!

Having a good team!

Running an auto dealership is complex, and involves hundreds of transactions relating to multiple parties in a very short amount of time. Unfortunately, each transaction is an opportunity for

VOLUME 8, ISSUE 1 | 33

fraud. The logical follow up question to this reality is, "What can you do to protect yourself and your dealership?"

An important first step is hiring a trustworthy and diligent team. It is just as crucial that a dealership's employees (management and sales staff) are trained and ready to act diligently and intelligently to identify red flags from the outset. Part of this includes treating employees well and showing them that they are a valued member of the team.

Increasing Leadership A good team starts with good management. When it comes to policies and procedures, documents should be drafted in plain language and steps should be taken to ensure that everyone knows and follows them. For example, it should be made clear that all cheques should require two signatures, that every transaction should be properly documented, and there should be frequent inventory counts.

It is also important to divide up work duties. This ensures that no one person has control over any given area of operation for the business. Think carefully about the list of authorized people that will handle any assets (such as parts, cash, keys, office equipment, etc). This list of people should be short. A dealer principal should also personally go over the bank reconciliation and floor plan reconciliation on occasion and spot

audit the business.

Having a detailed due diligence system in place will greatly assist in the event of an OMVIC investigation, and worse, a charge under the MVDA. Identity Fraud Given the rise of identity theft and the use of fraudulent documents to obtain cars, it is recommended that dealers have an "Identification Due Diligence" checklist in place before completing transactions. This checklist should include obtaining and keeping record of: • • • •

the individual's full name home address and telephone number, occupation, and business address and telephone number, if applicable.

Furthermore, if an individual is making a purchase on behalf of an organization (a corporation, partnership, association etc.) you should keep a record of: • the organization's full name, • business address and telephone number, • the organization's incorporation or business identification number,

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34 | THE ONTARIO DEALER

• the general nature of the organization's business, and the name, position and contact information of the individual making the purchase on behalf of the organization.

Ask for help!

Lastly, get professional help! Lawyers, accountants and other advisors who specialize in dealership matters, know how to deal with fraud and are a great asset that you can use to ensure that your business is protected. A lawyer or an accountant will be able to take a good look at your business and identify areas of vulnerability. They will be able to identify safeguards that you can put in place to protect these vulnerabilities.

They usually have extensive experience with fraud identification and therefore will likely have really good tips about how to stop it. ■

YOUR 2020 MARKETING MAKEOVER

03

By Matt McDonald

A NEW YEAR CAN REPRESENT many things to many people; a

time for self-improvement and introspection, a chance to look back on a passing year, and an opportunity to look toward the future. 2020 presents a perfect opportunity for businesses to re-evaluate where they are, how close they are to reaching their company goals, and what they can do to reach them.

Your marketing department is one of the most important aspects of your business and contributes a great deal to its successes and failures. The new year gives you the opportunity to reflect on what is and isn’t working for your dealership’s marketing, kicking off the year with new strategies and ideas that will propel you closer to your company goals.

Track marketing success to maximize your spend Every marketing platform you use is trackable - without in-depth insights into how the money you’re spending on marketing is performing, you’re shooting blind. In order to know when something isn’t working, you need to have access to quantitative data that says as much. Being able to see the numbers and your return on investment allows your business to pivot when something just isn’t working, or to double down when something is working far better than expected.

Every worthwhile tool and solution dedicated to digital marketing gives you the ability to accurately track your spending and see the impact of every dollar, whether it’s

converting leads, putting eyes on your website, or generating likes and follows on your social media channels. With so many intuitive and advanced tools at your disposal, it’s foolish to continue using solutions that only serve to hinder your growth and progress - especially when it’s your money at stake. Our Analytics article in this issue offers many suggestions for how to effectively track everything you are doing on-line.

Re-evaluate and modernize your website Too many business owners become too attached to their websites, putting off a re-design or re-brand until it’s completely out of date. Your website is one of the first things that prospective customers see, showcasing your brand identity and acting as the primary way of getting customers to visit your dealership and purchase vehicles. If your website hasn’t been updated in more than five years, it’s time for a change. It gives you a chance to re-brand into something more modern.

Create a more intuitive website that focuses on lead conversion, impresses visitors with sleek design elements and compelling copy, and gives them a reason to stick around and visit you for their next vehicle.

Not only will a re-evaluation bolster your website from a design standpoint, but it’ll also allow you to implement tracking features and conversion forms that increase leads and show you exactly what audiences are looking at, how long they’re looking at it, and what they’re doing while they’re on it. Modernizing

VOLUME 8, ISSUE 1 | 35

MARKETING MAKEOVER | MATT MCDONALD your website will give you the opportunity to see what your customers are responding to, letting you change up your marketing strategy to better reflect those preferences. You can also make sure that it integrates properly with the solutions you’re using, including CRM software, digital vehicle listings like Autotrader, and CMS solutions like DealerTrack.

This will boost the overall effectiveness of each digital tool being used by your business, increasing your overall ROI and ensuring that money isn’t being thrown away on ineffective solutions.

Hyper-focus ads and use local SEO Properly integrated tracking and marketing analytics allow you to see exactly what kind of people are engaging with your brand and responding to your messaging, giving a great opportunity to fine tune your strategies going forward.

Granular targeting is an effective method of targeting tailored ads to hyper-specific groups of people, speaking to buyers more effectively than general ads and messaging ever could. This same concept can be applied to the location data displayed by your tracking data.

Where are people viewing your website from? Are there specific communities in your surrounding area? If so, your dealership should implement advertising aimed at those hyper-specific areas in your marketing strategy. Look at your customer database for patterns in postal codes and determine what neighbourhoods or areas of your city people are most often coming from. You can use this information to create hyperspecific Facebook ad campaigns that target only these people and those who live in similar areas.

Local SEO is another strategy that can be tweaked in the coming year. By using specific local SEO terms, you’re increasing the chances that people near you will see your dealership first in search engine results. This can be done by optimizing the copy on your website to include the names of neighbourhoods

36 | THE ONTARIO DEALER

and surrounding communities near you, as well as through the creation of landing pages built specifically to capture those local SEO searches. Effectively climbing up the local SEO ranks and maintaining positions can take a lot of time, but it can pay off in spades when trying to capture sales and attention from competitors.

Expand your social media horizons While being active on Facebook is important, it’s crucial not to limit yourself when it comes to your dealership’s social media channels. Each network is used by wildly different audiences, and limiting your reach only means that you’re missing the opportunity to form a connection with new audiences.

Highly visual platforms, like Instagram, should be embraced rather than ignored, as it provides you with an excellent opportunity to show off your unique inventory, introduce customers to your team, and give tours of your showroom, lot, service department, or anything else that sets your dealership apart from your competitors. Instagram is most popular with younger audiences (18-34) that can be difficult to pin down, with the majority of its users accessing the platform three times a day - nearly as much as they access Facebook. By not joining in on the conversation on a platform like Instagram, you’re effectively missing the opportunity to reach a massive audience of potential customers.

Streaming video content also continues to be dominant on platforms like

YouTube, and many businesses have remained hesitant to join. Video content gives you a chance to use highly visual content to its advantage and to get creative. Your team can produce short videos showcasing new arrivals to your lot, highlight must-have

"..it’s crucial not to limit yourself when it comes to your dealership’s social media channels. " accessories, give short tutorials on how to do things like troubleshoot common vehicle problems, or explain why new vehicle features are more desirable. The content you produce can be cross-posted to every other social media channel you use, and can go a long way in boosting your brand image and reputation.

Rethink your brand messaging With new marketing and content strategies come exciting new ways to

MARKETING MAKEOVER | MATT MCDONALD

Whether it’s your business to sell New cars or Used cars... it’s our business to keep all your insurance needs covered re-frame your business's brand identity. With subtle messaging changes, you can re-define your brand without making any drastic changes to what you’ve worked so tirelessly to create.

You can do this by focusing on simple things like storytelling, personality, or customer experience.

By telling success stories about your customers and their experiences with your dealership, you can re-frame your brand as being one that cares about the outcomes of every single person who walks onto your lot. By injecting a little bit of humour into your messaging, you can quickly become known as a more personable and down to earth organization. By framing your dealership as one that cares about the overall customer experience, you suddenly become the accommodating brand that will do anything for its customers. You can also showcase your community involvement, which builds trust in your brand for your local customer base.

All of these changes are subtle enough that it doesn’t throw your entire company into chaos, but impactful enough that it elicits reactions from targeted audiences. Making these slight adjustments to your brand messaging can drastically alter the way people think of and interact with your business, helping you break through to audiences that you never thought possible.

A new year provides dealerships everywhere with a perfect opportunity to take a step back and examine what’s working and what isn’t. Making changes is simpler than you think, and taking the right steps to ensure that you’re doing everything you can to attract new customers and increase customer loyalty, will go a long way in boosting sales and your overall reputation. Taking these steps at the beginning of each new year is a great way to ensure that you’re always on track to achieve company goals, and that your business stays ahead of the curve with regards to marketing technology and strategy. ■

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VOLUME 8, ISSUE 1 | 37

GET THE MOST OUT OF YOUR AUCTION EXPERIENCE

By Angela West

WHAT YOU NEED TO COMPETE ONLINE

By Connie Motz

THROUGH SMART SOURCING of vehicles offering immediate consumer advantages, such as low-mileage and single-owners, as well as utilizing off-lease and rental conversions, you can continuously offer a supply of quality used vehicles while utilizing transactions and industry tools that consumers can trust.

Auctions are the ideal way to provide your customers with seemingly endless access to vehicle inventory. But are you getting the most out of your auction experience?

We’ve contacted some of Canada’s leading automotive industry experts for their advice on how to do it.

38 | THE ONTARIO DEALER

Auction Access Made Easy With global headquarters in Toronto and more than 350 employees in Canada alone, TradeRev is a real-time app providing a seamless digital auction experience, where a dealership can buy, sell and pay for a car in-app. This ever-innovating technology has the advantage of being part of the Kar Auction Services (KAR) family, including a partnership with ADESA, another KAR business unit, which offers dealers a true

AUCTION EXPERIENCE | CONNIE MOTZ end-to-end solution, from research to the delivery.

According to John Christianson, TradeRev Director of Sales, “TradeRev is an anywhere and anytime auction. Whether you’re at your desk or on the dock, you can login to TradeRev right from your phone or desktop, start bidding on vehicles or launch an auction of your own. Auctions only last 45 minutes, so for dealers it’s an extremely quick turnaround. We’re also on the cutting edge of technology with AI-driven tools like H-Vision℠, that fully automates condition report visualization. TradeRev has more than 9,000 users in Canada and over 17,000 in North America.”

Christianson continues, “Simply put, TradeRev makes auctions fast, fair and easy. While we have a strong digital and physical auction experience through TradeRev and ADESA, by working together, we help our customers sell and source inventory by handing-off no-sales from TradeRev to ADESA, and vice versa.”

Users of TradeRev can choose to finance their purchases with ACH or floor plan companies like AFC, and even pay, coordinate and track transportation all from the palm of their hand.

Top 3 Tips for getting the most out of your auction experience with TradeRev

ACCORDING TO CHRISTIANSON: 1. Get to know your sales representative, as they can really help ensure you have a great experience and get the most out of TradeRev services.

sellers and buyers and it actually makes bidders want to bid more often on your vehicles.

Christianson advises not to make this number one mistake when dealing with any auction service: “Whether online or in-lane, dealerships forget (or don’t know) that how they treat their buyers at auction will directly influence the wholesale market values they achieve as sellers. Bidders will naturally gravitate towards sellers that have invested in building a reputation of being high converters.

These sellers respond right away, or very quickly, to bidder offers, sell their vehicles at current wholesale values, accurately disclose all known declarations, and quickly make things right if a mistake is made. These sellers behave like many of the professional re-marketers from the large volume commercial sellers at auction; they have a vision of how they wish to be perceived and of maintaining a good reputation. They back this vision with a solid re-marketing strategy that guides their approach on a daily basis.”

Before buying on TradeRev, Christianson suggests knowing what you’re looking for and how much you’re willing to spend, along with doing your research, previewing upcoming vehicles and adding them to your TradeRev Watchlist.

Submitting proxy bids helps to ensure you won’t miss out on a good deal. Christianson

continues, “As a seller on TradeRev, ensure your vehicles are in preview as early as possible and make them viewable to astute bidders that can place proxies before the actual event auction. Also, be sure to represent your vehicles in person or online to quickly respond to offers. Bidders don’t appreciate having their money tied up for any length of time. Lastly, review your own condition reports for accuracy before the event auction to avoid arbitrations and to maintain a good reputation.”

"..dealerships forget (or don’t know) that how they treat their buyers at auction will directly influence the wholesale market values they achieve as sellers."

TradeRev wants you to win more trades and sell more used cars. While consumers aren’t able to use TradeRev directly, dealers can also use the app to live-appraise

2. Be completely transparent and open about declarations on your vehicles – it will help your remarketing reputation and save you a lot of time.

3. Enter your floor prices (at current wholesale market values) so that the vehicle can automatically move into closing status and sell when bidding meets or surpasses your floor price.

This is a tremendous time saver for

VOLUME 8, ISSUE 1 | 39

AUCTION EXPERIENCE | CONNIE MOTZ vehicles for their customers, essentially setting the market value for that vehicle in real-time. “This allows a dealer and the consumer to have a transparent conversation around the value of their trade—it’s simple, fast, and delivers a great customer experience,” says Christianson.

TradeRev is keen on creating loyalty with dealers by providing best-in-class service and being driven by the voice of the customer, where suggestions by dealers are continuously taken into consideration for software functionality updates that could help improve their in-app experience, and to ultimately help sell more cars. “There’s an entire team dedicated to ensuring dealers can always get the answers they need, when they need them. Time is money for dealers, so by providing them a digital tool that allows them to buy and sell at a high velocity, while giving them amazing support, we’re able to create a lasting partnership,” explains Christianson.

TradeRev is available for both iOS and Android, as well as your desktop. Signing up with TradeRev is fast, easy and free – once the app is downloaded, TradeRev can register a dealer in as quickly as 15 minutes.

The Standard option offers you everything you need to transact on TradeRev, but Pro takes it to a whole new level by offering reduced buy fees, guaranteed funds from a sale within 48-business hours, SMS notifications on vehicles of interest, vehicle recommendations and vehicle smart lists, that get to know your preferences for a custom experience. At just $199 a month for TradeRev Pro, Christianson promises you won’t regret the decision.

Reports Consumers Can Trust CARFAX Canada boasts a 95% satisfaction with dealers in regards to establishing trust with used vehicle buyers. Formerly known as CARPROOF, CARFAX Canada started in London, Ontario, in 2000, but has now grown into a multi-product

40 | THE ONTARIO DEALER

company, with over 150 employees across Canada. According to Shawn Vording, Vice President of Automotive Sales at CARFAX Canada, “CARFAX Canada ran over 3.7 million reports last year, helping Canadians get the information they needed to buy or sell vehicles. When used car shoppers see the CARFAX Canada Advantage Dealer logo, they know they can buy with greater confidence. Participating dealers get perks, such as exclusive access to free Advantage point-of-purchase materials for their store and their website, that allow them to leverage our trusted brand.”

Recognized and trusted by consumers, CARFAX Canada offers three key products to help ensure a transparent used car buying process. “The CARFAX Canada Vehicle History Report, the Vehicle Valuation Report and the Vehicle Tradein Widget – CARFAX Canada empowers Canadian automotive dealers with key insights to make better decisions about buying and selling used vehicles.

These products use billions of data records from thousands of unique sources and

contain unique data that isn’t available anywhere else,” explains Vording. The CARFAX Canada Advantage Dealer program takes the transparency process a step further by highlighting dealers who are committed to offering a vehicle history report on every car they sell.

The ADESA Canada Advantage With 74 auction locations across North America – 14 of those in Canada – ADESA Canada provides vehicle remarketing solutions, including wholesale vehicle auction services. According to Trevor Henderson, Chief Operating Officer for ADESA Canada, “Our biggest advantage is that ADESA is part of the KAR Auction Services family. KAR has invested heavily in innovation, data and technology and in fully integrating its capabilities across all business units to offer customers an end-to-end remarketing solution. We have ancillary services to meet every customer need throughout the remarketing lifecycle of a vehicle.

Henderson continues, “Our footprint in Canada goes beyond our 14 physical locations. Digital auction platform TradeRev is also part of the KAR family.

ADESA and TradeRev work closely to ensure sellers have multiple opportunities to sell their vehicles. Also, we have a robust

AUCTION EXPERIENCE | CONNIE MOTZ vehicle inspections, recondition their vehicles and even transport purchased or sold inventory, says Henderson. The ongoing collaboration between ADESA and TradeRev takes the remarketing experience from digital through physical and online.

logistics solution that moves more vehicles than any other entity in Canada.”

Henderson cautions dealers not to limit their options by looking at just one auction location by which to source or sell inventory. He suggests to diversify by using a combination of “online, in the lanes and digital auction marketplaces to expand their options and footprint, and they get a broader understanding of market values.”

According to Henderson, “Research is key. Not every dealer is serving the same customer, and not every vehicle will sell on your lot. It’s important to know what will sell quickly and with the most return on investment in your particular market, and even under your rooftop. ADESA has the information to help dealers make more informed inventory sourcing decisions.”

Comprised of more than 20 brands, including ADESA, the KAR group of companies is always innovating and working toward a more streamlined customer experience. ADESA provides “a seamless end-to-end vehicle remarketing experience, where dealers can not only source inventory, they can floorplan, get

Top 3 Tips for getting the most out of your auction experience with ADESA

ACCORDING TO HENDERSON: 1. Make use of our ADESA services and resources. We have market experts who can help buyers and sellers navigate the wholesale market.

2. As a seller, make sure you disclose everything you know about your vehicles, stand behind your vehicles and represent your vehicles on the block. This helps build trust in you as a seller and can help develop strong relationships with your buyers.

3. As a buyer, review all the information about the vehicles you are buying and make informed bidding decisions. You never want to regret a purchase.

Replacement Demand of Aging Vehicles

“should be very healthy as the record number of vehicles sold over the last 5 years reach middle age.”

At that time, there were over 10 million vehicles on the road more than 10 years old, almost all of which would disappear by 2023 to 2024, providing about 1.3 million units of base demand.

“Research is key.

Not every dealer is serving the same customer, and not every vehicle will sell on your lot."

“Add in accidented and high mileage younger vehicles, and replacement demand should be in the 1.5 to 1.8 million unit level.

Dealers dominate the sale of younger used vehicles, so are perfectly positioned to capture increased used vehicle sales,” cites the report. ■

In 2016, the Canadian Vehicle Market Review by DesRosiers Automotive Consultants Inc. predicted the sales of used vehicles, especially younger used vehicles,

Buying a house? Refinancing?

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Let’s Talk!

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VOLUME 8, ISSUE 1 | 41

THE OLD CAR DETECTIVE AWESOME 1953 CHEVY PANEL VAN

GERRY DAUPHINEE WAS BORN in Etobicoke, Ontario, on March 25, 1952.

Exactly one year later, on March 25, 1953, Knights Cleaners in Thomasville, Alabama, purchased a new Chevy panel van for $2,179. The panel van has a pair of “barn-style” doors at the back while the sedan delivery has a single hatch door hinged at the roof.

Now fast forward to 2005, when Gerry saw a 1953 Chevy panel van in Lindsay, Ontario, and wanted to buy it, but it wasn’t for sale. He left his name and number with the owner in case he changed his mind, then found out a year or so later it was sold to someone else.

42 | THE ONTARIO DEALER

By Bill Sherk

That’s the one that got away.

In 2007, Gerry found another one and bought it from vintage car dealer Bob Gault in LaSalle, Ontario. It was in red prime and a rust bucket. Gerry, the second owner, trailered it home to Gravenhurst to work on it. This was the one bought new in Alabama on the same day Gerry turned one.

When he and his wife moved to Erin, Ontario, Gerry built a garage, took the Chevy all apart, and added a new floor pan, firewall and Mustang II front suspension. Then they moved to Orillia.

To speed up the rebuild, Gerry in 2014 arranged with Body by Biggs near Orillia for a total rebuild (after seeing their ad in Old Autos). Biggs is famous for complete award-winning frame-off restorations. Ferrari owners go there!

GLS Appraisals conducted a thorough examination of the vehicle and declared its value to be $115,000, reflecting the high quality of craftsmanship that turned this dream into reality.

I’m always looking for stories. Email billtsherk@sympatico.ca. ■

The work was completed in 2016 with a dazzling finish in Tangello Orange Pearl from House of Kolor.

Gerry and his wife moved to Leamington in early 2017, with their Chevy in an enclosed trailer. The Chevy roof was too high to fit inside the trailer, so they let the air out of the tires, then rolled it in.

Last September, Gerry won Best Paint at the Apple Festival Car Show in nearby Ruthven, attended by over 300 classic cars. He also won People’s Choice at the McGregor Music Festival and has driven to the Old Autos show in Bothwell, Reaume GM dealership show in Amherstburg, Lally Ford dealership show in Leamington, LaSalle car show and several others.

Gerry behind the wheel

Under the hood is a 350 Chevy with Holley 4-barrel carb and a notch in the firewall to accommodate the engine owing to the size of the new Walker rad. Power is fed to a 700R4 automatic transmission, which a friend had won at a car show, but because the friend was a Ford guy, he gave it to Gerry.

Add to that a custom-built drive shaft, 12-bolt Chevy rear end, and chrome reverse rims from Hortons Hot Rods.

Awesome!

Gerry Dauphinee's Dream Machine

Aside from the paint and the wheels, Gerry has kept the outside as original as possible. It still has the original push-button door handles. It still has the original dash, although upgraded with modern gauges. And it still has the original grille.

The finishing touch was the Harley Davidson art work on the sides of the panel van applied by Chapman Signs in Leamington.

From every angle, the Chevy Panel Van looks great!

VOLUME 8, ISSUE 1 | 43

EFFICIENT INVENTORY MANAGEMENT

HOW TO SAVE ON SHOP SUPPLIES

By Chris Chase

IF YOUR USED CAR DEALERSHIP is like most in Ontario, you've probably spent a lot of time looking for ways to boost profits to counter shrinking margins in your sales department.

of articles about that topic, but for now, we're going to focus on how you can cut your fixed-ops budget by more efficiently managing your inventory of shop supplies.

Perhaps you've employed some of the tips and techniques we've discussed in the pages of The Ontario Dealer, like promoting F&I products to your customers, managing your store's online reputation more closely, and finding innovative ways to source inventory.

To learn more, we spoke to Mike Haslam, a fixed operations consultant, who works primarily with dealerships in the Ottawa and Montreal areas.

If you've explored those revenueboosting avenues, but you think your dealership's bottom line still has room to grow, it’s time to look at your fixed operations costs. We could write a series

44 | THE ONTARIO DEALER

The Ontario Dealer: Thanks for taking some time to talk to us, Mike. Where should a fixed operations manager start when looking for savings in their business?

Mike Haslam: The easiest place to start is by looking at your vendors. The ones I

INVENTORY MANAGEMENT | CHRIS CHASE always go after right way are the clothing people, who have a bad habit of charging the same amount every week. Where this can hurt you is if you have a technician who is out on a longer term and you're still being charged for their laundry.

That's one place I definitely notice inaccuracies. I don't want to call them errors; when you see it in a couple of places, you definitely wonder whether it's an accidental oversight.

You might take it for granted that the invoice is accurate, but you should be spot-checking a vendor and making sure that the original agreement is being delivered. Does the contract say the dealer will be charged even if that uniform is not used?

DMS software is another place where you want to make sure you're using the options you're being charged for, and that there's a value for paying extra for whatever option that might be.

Unfortunately, because there is a lot of staff turnover in many dealers, one of the challenges with the car business is that the information often gets watered down.

I worked with a store where they had changed warranty administrators several times, and by the time I got there, they weren't using a warranty claim transfer, even though they had that as part of their package from the DMS. Who knows how long they'd been paying for that and not using it? Using it means that individual now has time to complete their tasks in the course of a normal week instead of struggling to get everything done.

Then, there are credit charges, which are a percentage of sales to your customers paying by credit card. When it comes time to renew your contract, take a look at whether another vendor is offering a better deal, or if your current vendor can offer you one. Even if you're talking half a per cent over $20,000 in a month for

a smaller place, that's still some actual money over the course of a year.

There is value in seeing what the rest of the market is offering, and at what price point. As in all businesses, the squeaky wheel gets the grease.

OD: Should you charge your clients for shop supplies used to repair their vehicle?

MH: The costs of shop supplies directly related to whatever has been done on the vehicle should be passed on to clients. If you do brakes, you might use some brake cleaner. This is an exaggeration, but let's assume the technician uses an entire can on a front brake job. Any client can see that a can of brake cleaner from Princess Auto costs a few dollars.

If you turn around and charge $19.99, that's trying a little too hard, and you are opening yourself to the possibility of a customer being unhappy. Obviously, you are in business for profit, but I believe there is a limit.

I consulted in a store last year that was charging $30 for wheel weights, which is incredibly excessive. As a direct result, while I was there, two clients trashed the service department in the customer service index survey, calling them robbers.

It should be done within reason. I have seen dealers set an environmental charge for used oil at a small percentage; it's a small enough amount that few people will complain.

(The Consumer Protection Act requires an itemized list of shop supplies being charged to the consumer and the total being charged for each one.)

OD: How can you accurately track the shop supplies your technicians are using?

MS: I'm a fan of an old way of tracking, and that's a shop supply work order, where there's a line per technician on the shop supplies order. If the parts department is controlling shop supplies -- brake cleaner; washer fluid, where a car jockey is topping it off for a client and doesn't want to charge them; or the rubber gloves a lot of techs still use -- this gives you an opportunity to take a look, once a month, at what your techs are using.

If you have five or six various items per technician, that are all considered normal, and then you have one where the technician has 25 items and they have taken seven boxes of gloves and 52 cans of brake fluid in the course of a month, there is a question to be asked to that individual: "What's going on?"

VOLUME 8, ISSUE 1 | 45

INVENTORY MANAGEMENT | CHRIS CHASE

At the same time, if you look at your shop card and see that all the techs are taking three cans of brake cleaner per month, why are those not being charged on a repair order?

It gives you a bit of direction as to what's happening in your store. Everything on a shop card is being used internally, so you get a nice total at the bottom of that bill that says how much money went that way. It's a tool to track what your techs are doing, and make sure the parts department is charging for the parts correctly.

You have to give some stuff away for customer satisfaction, or else you look really cheap, and that's not a good image.

At the same time, if it's in inventory, it has to be charged somewhere.

OD: What are some of the challenges facing a fixed operations manager who is looking to reduce unnecessary expenses?

MH: There are different kinds of fixed operations managers. One is the person who works at a small dealer and they have one individual who runs the parts and service departments. It's just one person who is normally managing a small staff.

Then, there is the fixed-ops manager who has a parts and a service manager under them; they should be doing more high-level management, while someone else is in the trenches.

46 | THE ONTARIO DEALER

Finally, bigger dealer groups will often have a fixed-ops manager who is responsible for anywhere from 5 to 15 dealers, and they'll be responsible for setting the key performance indicators they want their staff to hit and explaining how they'll help them.

Those different definitions of the same role can have different tasks associated with them. Regardless, one of the challenges is that a fixed-ops manager is often being pulled in many directions.

Using the uniform example, if your fixed-ops manager is too busy in the trenches, it can be difficult to do a deep dive, and that's why you need to come up with simple ways to spot check.

Maybe it's someone in the accounting department who is going to look at that kind of thing before the bill is paid.

Often, it can be the same person who is doing payroll. That's where teamwork comes in, because the accounting person is going to put their hand up to the fixedops or service manager and say, "Hey, I have an inconsistency here. Could we talk about this for two minutes so you can tell me what you think?"

OD: It sounds like there's a certain level of communication required. Should a fixed-ops manager feel like they should be able to ask a payroll or accounting person to look out for this stuff and be communicative?

MH: You have to have the right two individuals to do that, and it would take the fixed-ops manager saying to the administrative staff upstairs, "Hey, could you do me a favour and keep an eye on cross-referencing payroll and uniforms?" That should be the job of the fixed-ops manager, or whoever is taking care of those tasks downstairs. It's about teamwork, and giving your co-workers a hand in trying to catch this kind of thing.

It is sometimes challenging, depending on the store, the setup and the staff, to effectively control costs during the tire rush, for example, when all hands are on deck. That is not the time when you're going to sit down and look at the uniform invoice for your 20 technicians.

I think a spot check approach is more valuable, and if you find something, you can ask accounting to go digging for you.

Maybe there's an adjustment to be made there.

Margins in sales departments are getting smaller and smaller, so dealers have to be better at being smart about how they're controlling their expenses. You have to be focused on fixed-ops, be aware of what's happening, and work with your teams, to make sure cost control is on everyone's mind. ■

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