Heather Hudson – Canadian Auto Dealer https://canadianautodealer.ca Wed, 11 Oct 2017 22:20:21 +0000 en-CA hourly 1 Exit strategy experts https://canadianautodealer.ca/2017/10/exit-strategy-experts/ Wed, 11 Oct 2017 22:20:21 +0000 https://canadianautodealer.ca/exit-strategy-experts/ Firm helps dealers find a profitable way to sell the business when the time is right. Buying or selling a dealership is often one of the biggest transactions in a dealer’s career. It requires precise timing, a load of legal and accounting paperwork and nerves of steel. Dealer Solutions Group President and Founder Farid Ahmad... Read more »

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Firm helps dealers find a profitable way to sell the business when the time is right.

Buying or selling a dealership is often one of the biggest transactions in a dealer’s career. It requires precise timing, a load of legal and accounting paperwork and nerves of steel.

Dealer Solutions Group President and Founder Farid Ahmad and Chief Operating Officer Arthur Madjarian bring their unique experience and expertise to an intimidating process that is becoming big business as the industry ages.

“We’ve got such a large percentage of people coming to the end of what they consider their working life. More people are evaluating what they’re going to do in the future and are looking into selling [their dealerships],” says Ahmad.

Arthur Madjarian

On the flip side, dealer groups across Canada are constantly expanding and looking for high-quality dealerships to acquire.

Ahmad and Madjarian also own Auto Careers Group, the largest specialized automotive recruitment agency in Canada, which puts them face to face with dealers across the country, further solidifying their reputation as expert and reliable business people.

In Canada, Dealer Solutions has completed transactions for as little as $300,000 for individual rural dealers and as large as $100 million for a dealer group with 16 franchises.

FOUR TYPES OF SELLERS

According to Madjarian, there are four types of dealers who reach out to Dealer Solutions to discuss selling.

Sellers over 60 without a succession plan. This comprises the largest category, says Madjarian, estimating it’s about 60 per cent of dealers they work with.

Sellers who haven’t stayed in tune with the industry. “They may not be up to speed on digital, which has caused their volume to drop because old-fashioned ways don’t work anymore.”

Dealers reluctant to reinvest in their facilities. There are so many manufacturer updates required now and a dealer needs to know they’re going to be in business for at least 10 years to find a profit after making that kind of investment.

Profit-takers. These are strategic thinkers who have assessed the risks and rewards and have decided that now is the best time to leave the marketplace and cash in.

“Each category has different challenges, wants and needs. It’s our job to identify who they are and apply our process to get the best deal possible—for both sides of the transaction,” says Ahmad.

“We’ve got such a large percentage of people coming to the end of what they consider their working life. More people are evaluating what they’re going to do in the future and are looking into selling [their dealerships],”

While most of their clients are in the first category, there’s often overlap between all four.

“Dealers [looking to sell] usually need to reinvest or cash out. That’s the dilemma people who are 60+ face. Do we reinvest? Where’s the return? Where’s the automobile industry going?” says Ahmad.

“The majority of the people we’ve transactioned have transitioned to enjoying the rest of their lives. If you have a coveted franchise, there’s never been a better time to go.”

BIGGEST CHALLENGE WITH SELLING

Valuing a business is one of the hardest aspects of completing a buy/sell transaction.

“Even someone who’s an experienced profit taker is guessing. We’ve completed 108 transactions and have appraised 293 individual car dealerships. We can compile all the statistics and information to find the right price in Canada at any given time,” says Ahmad.

THE DEALER SOLUTIONS

Difference

Farid Ahmad

When it comes to selling vehicles, the key to success is often developing strong relationships. Turns out, the same is true for buying and selling dealerships.

According to Ahmad, dealers justifiably put a lot of stock into the relationship they form with him and Madjarian and their Canadian team. They’ve selected staff who can represent the needs of dealers across all spectrums of the transaction.

“We have three ex-car dealers, whose dealerships we helped sell, five who have a manufacturing background with three different brands, a CPA who comes from a publicly chartered accounting firm and an ex-dealer who was a finance banker for 20 years,” says Ahmad, who, along with Madjarian, is a former general manager.

With regional posts in Vancouver, B.C., Calgary, Alta., Montreal, Que., St. John’s, Nfld and Halifax, N.S., the company is well-positioned to make connections with dealers in their communities.

According to Ahmad, one of the factors contributing to Dealer Solutions’ success is the even disbursement of the team across Canada.

“It’s important to us that we have representation across the country. Although we work on every transaction as a team, we want to have people embedded in communities across the country, to offer local expertise and familiarity,” he says.

As the market continues to be competitive, Ahmad and Madjarian are gearing up for a lot of activity over the next few years. “We’re expecting a lot of excitement in 2018.”

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Aftermarket wars https://canadianautodealer.ca/2017/10/aftermarket-wars/ Wed, 11 Oct 2017 22:02:06 +0000 https://canadianautodealer.ca/aftermarket-wars/ How dealers can compete and win with the aftermarket for service t’s an aftermarket anomaly that’s the envy of dealerships for miles around. Last year, the service department of Nurse Chevrolet Cadillac in Whitby, Ont., churned out 15,500 oil changes. A whopping 54 per cent of them were on vehicles they didn’t sell. Another 8... Read more »

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How dealers can compete and win with the aftermarket for service

t’s an aftermarket anomaly that’s the envy of dealerships for miles around.

Last year, the service department of Nurse Chevrolet Cadillac in Whitby, Ont., churned out 15,500 oil changes. A whopping 54 per cent of them were on vehicles they didn’t sell. Another 8 per cent were off brands.

What’s their secret? A sophisticated service bay that gets vehicles in and out in 29 minutes or less—helping them compete with repair shops that dominate the aftermarket.

“We’re competing with them head on,” says General Manager Dave Duggan. “You get your mats washed, a brake efficiency test, an alignment check and a check for malfunction codes, all on a computerized printout and a car wash, for the cost of a conventional oil change of $49.95 or $69.95. It’s more than a Jiffy Lube can offer.”

It’s a smart move. According to Statistics Canada, the Canadian automotive aftermarket is about a $23 billion business. Dealerships would do well to find ways to compete with independent repair shops and, ultimately, the biggest fish to fry: Canadian Tire.

“Canadian Tire is the largest player in the aftermarket DIY auto parts industry in Canada, commanding an estimated 9.2 per cent share of total auto aftermarket sales and the leading online tire and wheels retailer,” reads a 2015 Raymond James report.

AN AFTERMARKET ANALYSIS

A 2016 Outlook Study from the Automotive Industries Association of Canada (AIAC) indicates that the aftermarket is alive, well and on a path of growth. Their research found that the parts and service business took in about $21 billion in 2015, a little ahead of projections from their previous outlook study in 2014.

Some of the factors that drive the growth of the aftermarket are a growing number of vehicles on the road—record sales for new cars in Canada equals more vehicles in service bays—and the increasing average age of vehicles.

“Research shows that the average age of vehicles in Canada in 2015 was just shy of 10 years old. The aftermarket will clearly benefit from having these vehicles stay on the road longer,” says AIAC President Jean-Francois Champagne.

Even though the aftermarket segment is growing, the industry continues to be highly competitive with challenges of its own.

Champagne says that with the emergence of online retailers, there’s increasing pressure on margins, particularly when it comes to parts distribution. Some new models don’t need as much maintenance.

“We’re seeing a newer type of vehicle that’s stretching the time between oil changes and brake pad repairs, etc., as well as electric vehicles that are built with fewer parts,” he says.

Plus, increasingly complex vehicle technology often requires specialized training and expensive tools that independent shops and dealerships alike need to manage.

He says we’ll hear a lot more about telematics in the coming years. Access to data to properly service or maintain a vehicle is a growing concern for the aftermarket.

Nurse Chevrolet Cadillac’s success proves that if dealers have a desire to build their service departments and a budget to make it happen, customers will come.

If an OEM chooses to collect data and redirect information exclusively to its dealer network, there’s certainly an aftermarket advantage for dealers.

“It’s very good if you’re a dealer servicing your original brand but if you’re not, you’re in the same boat as the aftermarket industry. It’s important to have fair and equal access to that data for all stakeholders so there continues to be consumer choice,” says Champagne.

To that end, the AIAC is active in the Right to Repair movement, working to ensure the CASIS agreement between automakers and the aftermarket, which includes providing telematics, is upheld.

HOW CAN DEALERS COMPETE IN THE AFTERMARKET?

Like Nurse Chevrolet Cadillac, many dealerships are looking at ways to compete with aftermarket shops using a variety of tactics. Some of the most effective include:

Price matching

Lexus offers the Lexus Tire Price Match Promise under which dealers match an advertised price, including online quotes in Canada, on tires from any of the 15 top tire brands sold by participating Lexus dealers. It’s a strategy that removes the primary differentiator when it comes to consumer choice: price.

CRM outreach

Many dealerships are putting their CRMs to great use by reaching out to customers to initiate a service visit. When they make it possible to book appointments online, straight from an email, it’s customer service that will keep their dealership top-of-mind and encourage customer loyalty.

If you can’t beat ’em, join ’em

According to Duggan, a complete redesign of the service department can go a long way to providing swift, efficient service that many aftermarket shops will struggle to compete with—even if it means defying the suggestion of OEMs.

“In this day and age, everyone wants their car done fast. The major mistake all manufacturers make is to tell dealers to build cookie cutter dealerships that aren’t set up to do fast services.

“We simply didn’t have the ability to do what the aftermarket does, which is a push/pull method. A conventional bay with a technician working on [a vehicle] will have cars piled up behind it that need to wait until that car gets its oil changed,” he says.

Their new assembly-line design means cars move every six minutes, enabling them to serve up to 10 cars an hour “instead of one car every half hour.”

While they don’t take appointments, they do offer an live camera feed that customers can check online to see if there’s a line-up.

Nurse Chevrolet Cadillac’s success proves that if dealers have a desire to build their service departments and a budget to make it happen, customers will come.

Not yet satisfied with the volume that’s coming through, (“We have another 25 per cent capacity to grow”), Duggan says their sights are set on attracting more off brands.

“Our strategy now is to get this to go directly after the aftermarket, hit them where it counts with a lot of media play about our 29-minute service and what we do compared to what they do. We’ll see if we can get another piece of their pie.”

With a multi-billion dollar business at stake, that’s a big piece of pie.

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Seeing is believing https://canadianautodealer.ca/2017/08/seeing-is-believing/ Fri, 04 Aug 2017 18:03:08 +0000 https://canadianautodealer.ca/seeing-is-believing/ New program allows technicians to record video vehicle inspections to enhance the customer experience, engagement and trust Looking for an innovative way to inspire trust in your service customers while imparting important information about their vehicle maintenance? Get their attention with a video of their vehicle inspection—delivered straight to their phone or inbox, even while... Read more »

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New program allows technicians to record video vehicle inspections to enhance the customer experience, engagement and trust

Looking for an innovative way to inspire trust in your service customers while imparting important information about their vehicle maintenance?

Get their attention with a video of their vehicle inspection—delivered straight to their phone or inbox, even while the vehicle is still on the hydraulic lift. “If a picture is worth a thousand words, a video has to be worth a million,” says John Dixon, president of Autoloyalty, the Ontario boutique company that recently brought the video service CitNOW (pronounced See-it-now) to Canada.

Autoloyalty is known for providing automotive loyalty marketing training to Canadian dealers, including The Upgrade Sale, offered in partnership with Shift Marketing Studio. When Dixon learned about CitNOW, already popular in 38 countries, he considered it a no-brainer to bring it to Canada.

“Personalized video is a dynamic way to connect with customers. They help foster transparency and trust and help the customer feel more comfortable making a service decision,” says Dixon.

The program allows technicians to make one-to-two-minute videos that show the customer what kind of service work is required on their vehicle and why, using gauges and other measurement tools to demonstrate.

Videos can be held for review by the service advisor or be sent directly to the customer through an email or text that includes a secure link to an online dashboard where they can access their video. Service advisors receive notifications when a video has been viewed and the customer can reply to the text or email to decline or accept the work proposed.

Six GTA dealers currently use the program. Dealers who have adopted the system report positive feedback from their customers, including Facebook comments like: “This is cool, I just got a video of the installation of my M4 Performance Parts from my BMW dealer.”

Dixon says some dealers report feeling protected from liability issues because of the videos. They often shoot short videos when a vehicle comes in for service to minimize misunderstandings about replacement or realignment of tires.

A sales application is also available. “You can send customers videos to remind them about an appointment, introduce them to your service department or show them new inventory. The possibilities are endless,” says Dixon.

CitNOW is available for a monthly fee plus a training and installation fee that varies based on how many technicians need to be trained. They also provide one recording device (an iPod with a noise-reducing mic), tripod and selfie stick for every four technicians at the dealership.

You can learn more about CitNOW at www.autoloyalty.ca/citnow.

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Social strategies https://canadianautodealer.ca/2016/06/social-strategies/ Mon, 13 Jun 2016 07:15:14 +0000 https://canadianautodealer.ca/social-strategies/ Canadian auto dealer spoke with four social media gurus in the auto industry to learn more about their best practices. Here’s what they had to say. Aleksandra Banas, Digital Marketing Manager, Lexus of Edmonton Banas takes a common sense approach to her dealership’s posts on Facebook, Twitter, Instagram, Pinterest and YouTube. “I’m a fairly active... Read more »

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Canadian auto dealer spoke with four social media gurus in the auto industry to learn more about their best practices. Here’s what they had to say.

Aleksandra Banas, Digital Marketing Manager, Lexus of Edmonton

Aleksandra Banas 2015Banas takes a common sense approach to her dealership’s posts on Facebook, Twitter, Instagram, Pinterest and YouTube.

“I’m a fairly active social girl and I think about what I would like to see [on social media] as a person and I implement that here [at the dealership]. It’s not rocket science.”

While Lexus of Edmonton has a presence on several platforms, with 1 billion active users, Facebook is where they focus. Banas posts once or twice a day, typically about hot new products, charity events, day-to-day activities in the dealership and holiday greetings.

“We can tell we’re connecting with people by the comments and shares of our news, pictures and videos. They come in and say ‘I saw this on your Facebook’ and notice things like when we got a dog. Things happen every day— why not share it with your core group and even potential customers?”

Some of the dealership’s videos have also garnered a lot of attention on YouTube. A product demonstration of the 2016 Lexus LS received half a million views.

Banas says most of their videos aren’t quite that popular, but each of them helps connect the community with the dealership.

“Canadians love video. We do a lot of vehicle demonstrations and are getting more involved in playing around to see what works and what doesn’t.”

Glenn Pasch, CEO, PCG Digital Marketing

Glenn Pasch_640xFacebook is the “big horse” when it comes to social media— and if you’re not using it right, you’re missing out, says Pasch.

He recommends a minimum of one post per day that’s fun, engaging and answers the question, “Why should I buy from you?”

Along with product demonstrations and photos of salespeople and happy customers, there should be informational posts, such as “Three ways to service your car before temperatures rise.”

“The goal should be for somebody to share [the post], not just look at it.”

He noted that social media, particularly Facebook, is a prime place to advertise — and more dealers should be doing it. “It’s really inexpensive right now and businesses are not all taking advantage of it.” With Facebook analytics, targeted advertising to the right demographic is not only easy but also exceedingly effective.

He equates Facebook advertising prices to those of Google Adwords five years ago “before OEMs made it mandatory and drove up costs.”

What does the future hold, according to Pasch?

More emphasis on mobile-ready content. A dealer case study his company ran found great success with, “Did you know our service department is open from 7:30 a.m.-9 p.m.? Click to call.” Making it easy for customers to take action is critical;

More— and shorter— videos posted online. Keep videos around 15-20 seconds for maximum efficiency; and

More salespeople will brand themselves with video and other online content and leverage it across social media.

Josh Pogue, Digital Marketing Manager, Weins Canada

Josh Pogue_640xSocial media is not a one-size-fits-all solution.

Pogue has learned that there are best practices— and then there are case-by-case approaches.

He points out that a Subaru customer is passionate about the brand and wants to be validated about its features on social media while Toyota or Honda customers are eager to learn about new products, design features and models. Like any aspect of business, it’s a matter of knowing your customers, but social media should come with an element of fun.

“We post delivery photos of guests receiving vehicles and they do fine, but anything unique always does really well. We once posted a Toyota Celica that looked like it was from the set of Mad Max and that got a lot of interest.”

In addition to providing interesting content for customers, Pogue says Weins Canada has found success with Facebook’s dark posts advertising platform.

“The targeting tools on Facebook are becoming pretty sophisticated. We can pull a list from our database and do a custom audience campaign and then build a lookalike campaign which says, ‘Of these 500 people, find 500 similar in terms of income, location, hobbies, etc. and let me market to them as conquests.’”

It’s proven to be a powerful and cost-effective strategy. “On average, where we would be paying maybe
$1.80 for a Google display banner, we’re paying maybe 50 to 60 cents [for a Facebook ad] right now. And our conversion rate is generally better than what we’re getting with Google.”

Alexi Venneri, CEO, Digital Air Strike

Alexi Venneri_640xLike any other part of business, social media requires a written policy to ensure it’s handled consistently and strategically, says Venneri.

“Most dealers want their employees to engage on social channels but they need to be smart about what is allowed and set up processes for things like security of logins and passwords, response times for social media leads/reviews and more.”

With a cohesive plan in place, dealers can make more productive use of social media, particularly in areas that can always use a boost, like fixed operations. Giving this business area play on social media can pay off in a big way.

Digital Air Strike’s recent Automotive Social Media Trends Study indicates almost half of all service customers are influenced to stay with or change dealerships based on what they read online.

“Surveying service customers is one of the best ways to increase positive online reviews. Dealers should survey their sales and service customers every night and make it easy for happy customers to share their positive feedback publicly,” says Venneri.

Another best practice includes tweaking marketing budgets to allocate more to social advertising spending and get ahead of trends such as ridesharing, “lease sharing” between multiple people and the concept of vehicles for mobility only.

“With trends like this, social media will be even more crucial as consumers will rate their experiences.”

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A gold mine of information https://canadianautodealer.ca/2016/05/a-gold-mine-of-information/ Wed, 04 May 2016 04:35:08 +0000 https://canadianautodealer.ca/a-gold-mine-of-information/ Dealers have more customer information available to them than ever before. How they choose to use it can make the difference between growing their businesses and being left behind. Here are four ways you can use data to get to know your customers even better: 1) Make use of Customer Relationship Management (CRM) software “Any... Read more »

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Dealers have more customer information available to them than ever before. How they choose to use it can make the difference between growing their businesses and being left behind.
Here are four ways you can use data to get to know your customers even better:

1) Make use of Customer Relationship Management (CRM) software

“Any dealership that runs without a CRM is really at a disadvantage,” said Mo Zahabi, director of sales and product consulting for VinSolutions, a U.S.-based provider of e-software that offers solutions for dealer internal management, sales and service marketing platforms, and more.

“The CRM is the centralized hub of the dealership and is a big component of how you can engage customers.” Most CRM systems capture data about customers and leads, including sales, service and prospect data and correspondence with customers. “There are multiple service campaigns you can run off of things like op codes, services completed and an unsold customer base,” said Zahabi.

“Many dealerships might have 50,000 or 60,000 customers in their database but don’t know how to mine it to produce that repeat customer. Once they start working with the data they have, that’s when dealerships start to grow.”

2) Segment data

Parsing the data and separating it into segments is the first step to making good use of the information you have. “If I want to market to my customer base and send out an oil change offer, I need to break it down based on things like what kind of engine they have,” said Zahabi.
He cautions against sending $20 oil change coupons to drivers with large, diesel engines because it won’t be as valuable to them as it would be for mid-size car drivers. With an overwhelming amount
of advertising barraging consumers every day, what gets their attention is marketing that speaks directly to their needs.

3) Get to know your customers and prospects

One of the keys to building a relationship is making a person feel known and understood. When customers feel like they’re getting personalized service, they’re instantly more open to dealing with you, said Zahabi.

“Market more effectively with a real offer and make your customer feel like they’re not the same as everybody else,” said Zahabi. He recommends capturing how each customer prefers to be contacted — and follow up via the communications channel of their choice, whether that’s phone, email or text.

You can really learn a lot about your customers and prospects by checking their presence on social media, said Zahabi. Often, details about their life stages are revealed so that dealers can make communications and marketing more meaningful. Kalman Gyimesi, automotive/electronics marketing leader for IBM Analytics said his family was ripe for new automotive solutions when three of his four sons started driving.

“Suddenly my wife’s minivan was empty. That would be a really savvy opportunity [for a dealer] to flip her out of the minivan and into something that’s a bit cooler.”

A basic search on social media or a well-timed followup based on a CRM notation about the age of his kids would have tipped off his dealership to demonstrate they understand the family and are able to provide meaningful offers.

4) Put together compelling packages based on data

With so much data available to dealers, there have to be adjustments to the way marketing is done. “The first thing a dealer has to do is put together a more compelling package,” said Gyimesi.

That often means offering creative solutions and considering a wide range of needs, from understanding people’s digital sophistication to their desire for used options.

“Have a product portfolio that includes different types of new cars as well as reliable older cars. Think about the customers’ needs now and in the future,” said Gyimesi.

Some dealers may wonder if snooping around in their customers’ online lives is ethical and/or creepy. To that concern, Zahabi said, “Have you heard of Amazon? Data mining is alive and well in virtually every industry.”

Who mines data?

IBM is doing cutting-edge work using analytical modeling and reporting, and streaming data (from sensors in vehicles). It even has an exclusive partnership with Twitter under which IBM has access to all historical automotive Twitter data to harvest and analyze.

“Unstructured data includes things in the past that you wouldn’t consider data, such as unconventional text, blog posts, mechanics’ logs and data from Twitter. Now we have unstructured analytics tools… and you can find out some amazing stuff.”

While IBM’s data is mainly being used by suppliers and manufacturers, the company also works with dealer groups and third party companies trying to optimize and transform automotive sales operations.

While smaller dealers may not have access to the high-level analytics that IBM provides, Zahabi said dealers can take advantage of tools like his company VinSolutions offers or embark on a professional partnership with an e-commerce or marketing firm that understand how to properly use customer data.

No matter how much data you have and how you choose to use it, it’s all about that all-important relationship. “The dealership where I buy my cars knows that I trade my car in every two years on the dot. They know that I pull my wife out of her car and put her in a new lease every 30 months. They get what I want and talk to me when and how I want to be talked to,” said Zahabi.

“I can buy a car anywhere, but I choose to go there and maybe let them make a little money on me because they demonstrate that they understand what I like and don’t like.”

More meaningful marketing may have taken the place of a dealer’s handwritten birthday card, but the basic tenets of appreciating and building trust with customers can be achieved by taking care to understand them via digital data.

How will you use yours?

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Keeping it all together https://canadianautodealer.ca/2016/05/keeping-it-all-together/ Wed, 04 May 2016 04:31:57 +0000 https://canadianautodealer.ca/keeping-it-all-together/ Lisbeth Karpinski takes her role at Burlington Hyundai very seriously. Like many dealership comptrollers, it’s her job to ensure the store and its employees are compliant with legislative, safety and other regulations. She needs to keep careful records to be able to prove to government officials that they’re following the letter of the law. That’s... Read more »

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keepingLisbeth Karpinski takes her role at Burlington Hyundai very seriously.

Like many dealership comptrollers, it’s her job to ensure the store and its employees are compliant with legislative, safety and other regulations. She needs to keep careful records to be able to prove to government officials that they’re following the letter of the law.

That’s easier said than done.

The manual system her dealership once employed meant it was difficult to track when each employee was up for training or retraining. Karpinski said her spreadsheet system made for more than
a few sleepless nights.

“In smaller stores, comptrollers wear different hats and compliance may not be a focus in our job. It’s time-consuming to go through files to see who’s done training and when — and then determining when they’re up for renewal.”

Karpinski isn’t alone when it comes to the headaches associated with managing compliance and HR record-keeping.

Michael Stassen, vice-president of sales and marketing for DealerPILOT, an automated system that helps Canadian automotive dealers track HR, health and safety, inspections and compliance systems, said most dealerships struggle to keep it all together.

“The majority of the dealerships we engage with use yellow sticky tabs, Excel sheets or pieces of paper
[to track compliance].”

He said they are typically earnest in their efforts to manage compliance, but don’t have the time or knowledge to manage all of the compliance requirements and data.

Without proper compliance records, dealerships are subject to hefty fines — and even criminal prosecution.

According to Stassen, Ontario and British Columbia are the most stringent when it comes to legislation and strict fines. For fire safety infractions alone, “managers could have liability for up to $30,000, employers up to $100,000.”

In extreme cases, under Bill C-45, which covers legal duties for workplace health and safety, an employer could be held criminally responsible for noncompliance.

Built specifically for Canadian dealerships, DealerPILOT software aims to automate the usual manual processes associated with staff training and policy acknowledgements, joint health and
safety and compliance enforcement, all in one central location.

A web-based solution, the software also automates everything from how to manage resumes when people are applying at dealerships to onboarding procedures, including benefits claims forms, business cards, schedules, time and attendance, vacation planning, safety compliance, and more.

Karpinski recently implemented DealerPILOT at Burlington Hyundai and said she’s already sleeping better.

“[DealerPILOT] does two things: It tracks and tells us when someone has to do training and it keeps electronic reports showing when people have done their required training. Without
an HR department, that was difficult for us to do. Secondly, it helps manage a lot of the HR functions that were also difficult to do manually.”

Since they’ve automated vacation requests, sick and personal days, Karpinski is seeing a considerable drop in the amount of time and confusion for employees, managers and the office.

Under their previous paper-based system, an employee would fill out a form and submit it to the manager, who would then bring it to the office for input. Today, the employee can log in to DealerPILOT, enter the request and receive approval online.

Getting people trained when they’re hired has also become a more streamlined process. “Once somebody has accepted their offer of hire, I’ll send them a link to DealerPILOT and they will complete all of their training before they even start. Before, I would have to send them 10 different links. Now it’s one link and it’s all there.”

To better serve the HR and regulatory compliance side of dealerships, Payworks and CDK Global Canada announced in February that they’re teaming up. The new partnership will provide CDK clients with Payworks’ suite of cloud-based products, including payroll, time and attendance
and human resource solutions through CDK Global Canada’s DMS.

“Without a doubt, legal compliance and the need for proper records to comply with various legislative bodies, statutes, etc. is crucial,” said Dean Anton, vice-president and general manager for CDK Global Canada.

“If you can’t defend how you’re running your business, the government may impose costs and penalties and your standing within certain government agencies could be altered.”

Stassen said DealerPILOT’s system runs parallel to a dealership’s DMS. “We’re about the people doing the work, making sure the right people are in the building and are appropriately compliant with legislation that a dealership needs to comply with.”

Beyond helping comptrollers and HR departments to manage compliance — with alerts to both employees and management to let them know when an employee is due for retraining — Stassen said DealerPILOT often works to empower employees to manage their own compliance.

Implementation typically takes four-six weeks with a DealerPILOT project management team and includes training, testing and a live roll-out. And the savings can be measured in more than just time.

“Our average dealership customer is probably saving a few hundred hours per year in non-productive management efforts. If you could redeploy those hours to business development and customer service, that’s considerable time to drive more business to serve the dealership and the customer.”

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An ongoing investment https://canadianautodealer.ca/2016/03/an-ongoing-investment/ Wed, 09 Mar 2016 00:46:56 +0000 https://canadianautodealer.ca/an-ongoing-investment/ WELL-TRAINED TECHNICIANS ARE THE BACKBONE OF A SUCCESSFUL FIXED OPS DEPARTMENT Not a day goes by that Philip Poon doesn’t prioritize training for his fixed operations staff. From conducting five-minute one-on-ones, to weekly 15-minute team meetings, to grabbing a celebratory lunch for a technician who just completed a training course, Poon’s mind is often on... Read more »

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WELL-TRAINED TECHNICIANS ARE THE BACKBONE OF A SUCCESSFUL FIXED OPS DEPARTMENT

An ongoing investmentNot a day goes by that Philip Poon doesn’t prioritize training for his fixed operations staff.

From conducting five-minute one-on-ones, to weekly 15-minute team meetings, to grabbing a celebratory lunch for a technician who just completed a training course, Poon’s mind is often on learning opportunities — past, present and future.

“We do training every day with our advisors… it takes time, but it pays off in huge dividends,” said Poon, Fixed Operations Manager at Harris Victoria Chrysler Dodge in Victoria, B.C.

Whether it’s gaining insight into customers, cross-training on other aspects of the business or focusing on technician-training from Chrysler, Poon’s staff are always learning. He said it’s one of the reasons for last year’s banner sales.

Poon’s approach isn’t unusual. Many fixed operations departments at dealerships ensure continuous education for their service advisors and technicians.

Most OEMs provide e-learning programs, videos and in-class training for dealer employees to keep them abreast of changes.

Honda Canada’s Training Division, for example, provides a comprehensive curriculum for fixed operations roles, such as service advisors and technicians.

The number and topics of training courses depend on the job, but they are extensive. To reach the top level of certification in 2015 as a Honda auto technician, there were 211 required courses to complete.

Honda uses various training formats, including instructor-led, self-paced e-learning or distance learning. Informal training tools such as job aids and videos are also available.

“I usually get the best pick of the crop because I know all the teachers and I spend time with the students in the [school] shop.”

In addition to regular fixed operations training, other OEMs, like GM Canada, run specialized training programs for would-be technicians, even securing paid apprenticeship positions in GM dealerships as part of the certificate.

The GM Automotive Services Educational Program trains students in diagnostic and repair techniques on GM vehicles over a two-year period. The program runs on a rotational basis with eight weeks in the classroom and eight weeks of hands-on, paid work experience in a GM dealership.

Grooming young technicians is not strictly the domain of OEMs. Fixed operations departments in some dealerships boast well-trained and loyal technicians simply by investing in them when they’re still gaining skills.

Antoine Thibodeau, service manager at Bel-Air Toyota in Ottawa, Ont. oversees 20 technicians, and said many of them got their start in the dealership as high school co-op students.

“We’re always open to taking students in [to learn]. From day one, we make sure they’re hands on and understand the dynamics of what we do here. We want them to participate and learn. If they demonstrate an interest, once they finish their co-op program, we sponsor them as they get their schooling from the Ministry of University and Colleges and we hire them as apprentices.”

This kind of training has long been a strategy for Thibodeau, who has built relationships with teachers in area schools. “I usually get the best pick of the crop because I know all the teachers and I spend time with the students in the [school] shop.”

Beyond the ministry’s requirements, Toyota Canada offers online courses and in-class learning at Toyota University. The carmaker requires a four-step training program, some of which can be done in tandem with completing a college certificate.

Thibodeau said he ensures his apprentices and technicians are completing their ministry and Toyota educations.

“Leading by example is important. I have a wall of my certificates to show I do it, so it’s clear we do [training] as a team and work together.”

“It takes about three years [to finish the college certificate] and you can do the Toyota training at the same time. [Technicians] are usually finished with the Toyota training before completing the apprenticeship, but once you get to [Toyota’s] Step 3, you have to be a licensed technician to move on,” said Thibodeau.

Like other OEMs, Toyota offers courses year-round to help technicians keep up with new models and technology. “The average technician might take two days of full classes at Toyota University and 20-30 hours of online learning per year,” says Thibodeau.

Though training is an expectation in his department, Thibodeau says staff are usually motivated by the hourly wage increases for each Toyota step completed.

Besides wage increases, how do fixed operations managers keep staff motivated to learn?

Poon says he takes his employees for a team-building dinner every once in a while, offers regular feedback on a job well done and does the occasional Starbucks run — his treat.

Lindsay Williams, Fixed Operations Manager at Heartland Ford Sales Inc. in Fort Saskatchewan, Alta., said she takes the training herself.

“Leading by example is important. I have a wall of my certificates to show I do it, so it’s clear we do [training] as a team and work together.”

A well-trained fixed operations department means a more efficient operation and customer satisfaction. Thibodeau said supporting employees’ training also leads to other benefits.

“When [employees] realize we care about them enough to put them through their levels, they usually stay for years…usually when we lose a technician here it’s because he retires.”

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Take advantage https://canadianautodealer.ca/2016/03/take-advantage/ Wed, 09 Mar 2016 00:37:44 +0000 https://canadianautodealer.ca/take-advantage/ LEARN HOW TO GET THE MOST FROM YOUR DMS In the span of a few decades, Dealer Management System (DMS) software has transformed the dealership from a business of several different entities to an integrated and efficient operation. For most dealers, the DMS is as indispensable as the computer itself. “I don’t think there’s a... Read more »

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LEARN HOW TO GET THE MOST FROM YOUR DMS

Take AdvantageIn the span of a few decades, Dealer Management System (DMS) software has transformed the dealership from a business of several different entities to an integrated and efficient operation.

For most dealers, the DMS is as indispensable as the computer itself. “I don’t think there’s a dealership in North America that doesn’t have a DMS. It’s a requirement for running a business,” says Maury Marks, CEO of Quorum Dealer Management Systems.

DMS software has come a long way.

Increasingly user-friendly and intuitive, the sophistication of today’s DMS software is due in large part to dealers themselves, says Lynn McNeill, senior Vice-President at PBS Systems Inc., a Calgary-based provider of DMS software.

“Users are smarter and better. They expect and demand more from their DMS providers and, as a result, are getting it.”

DMS providers are constantly upgrading and introducing new features to enhance the experience of their customers.

Marks says his company produces three new versions of software per year. “We constantly listen to our dealers’ ideas and keep integrating them into the software, evolving it and rolling it out to our dealerships.”

STAY UP TO DATE

DMS providers are constantly evolving — but are dealerships keeping up with their software?

Not always, says McNeill. At his company’s annual user conference, which hosts 150 stores to provide training on current and new features for all departments, he says there is inevitably a “revelation moment.”

“I don’t know how many times people have said, ‘Jeez, I didn’t know that [feature] was there.”

“If you don’t continue to learn, press yourself and ask questions, you’re only going to do what you’ve always done. The way to get the most out of your DMS is to keep pushing the envelope and asking questions.”

He likens a dealer’s relationship with its DMS software to the kind of annual accreditation you need in certain professions to continue to practice the trade.

“If you don’t continue to learn, press yourself and ask questions, you’re only going to do what you’ve always done. The way to get the most out of your DMS is to keep pushing the envelope and asking questions.”

TAKE THE TIME TO TRAIN

Ask any DMS software provider the number one thing users can do to make the most of their system and

the answer is usually “take advantage of training opportunities.”

Most providers offer onsite training when integrating a new system and periodic training every few months or annually. Many have online resources and support services as well.

Some companies include training as part of the cost of using the software while others charge for followup training.

No matter how your provider charges, it’s critical that everyone, from new hires to seasoned pros, have regular training from the source — not from their colleagues, says Alain Couturier, Vice-President of CDK Global, a Waterloo-based DMS provider.

“Sometimes dealerships will try to [have] an existing user show the newcomer what to do even though we have classes intended for that purpose at no additional charge.”

He says seasoned users may not be aware of the newer features available in the system and won’t give a new employee the complete picture. “They may not be taking advantage of all the new improvements. We find a lot of subtleties that make it very different and more efficient if you learn from the source.”

Ask any DMS software provider the number one thing users can do to make the most of their system and the answer is usually “take advantage of training opportunities.”

And it’s not just new hires who should take regular training. Most DMS providers have specialists available to answer questions about the software while users are actively using it, though McNeill says people need to take more advantage of that option.

“Make a phone call or send us an email right through the software to go directly to the support centre to find out how to perform a function you’re not sure about. People get busy throughout the day and don’t take the time to do that, but it’s important to take the opportunity to help themselves.”

Doug Makichuk, Fixed Operations Manager at Gerry Gordon’s Mazda in Winnipeg, says compliance with current processes can be a challenge sometimes.

“It requires monitoring to make sure no one is cutting corners when using the software and ensuring it’s being used the way it’s designed. I try to make sure [employees] follow the steps the software company set out. We try to take the time to learn and use it all. Going in with an open mind is important.”

Couturier says management buy-in is important to help employees maximize their DMS.

“There is a need for leadership to better understand the power and potential of what their DMS can bring. Some of CDK’s dealerships include regular DMS training as part of their employees’ key performance indicators, which helps keep everyone accountable.”

Most DMS providers agree that regular training and access to specialist support is critical to getting the most out of the software. An efficient operation, customer communication and driving revenue depend on it.

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Marketing to millennials https://canadianautodealer.ca/2016/03/marketing-to-millennials/ Tue, 08 Mar 2016 21:30:40 +0000 https://canadianautodealer.ca/marketing-to-millennials/ Here’s what millennials want from their car buying experience If 25-year-old Emily Tamfo was going to buy a car, her first stop wouldn’t be a dealership. It would be YouTube. The digital content strategist said she would pore over reviews from other consumers before branching out to blogs and forums for more information from “what... Read more »

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Here’s what millennials want from their car buying experience

Marketing to MillenialsIf 25-year-old Emily Tamfo was going to buy a car, her first stop wouldn’t be a dealership. It would be YouTube.

The digital content strategist said she would pore over reviews from other consumers before branching out to blogs and forums for more information from “what other people in a similar situation would choose.”

After upwards of several hours of exhaustive online research, she’d reach out to a dealership. But it wouldn’t be an onsite visit.

“If I was looking for something specific, I’d email a [dealership] to ask if they have the colour and model I’d narrowed my choice down to, how much would it be and would someone be available to talk with me at a convenient time,” said Tamfo.

Only then would she consider stepping into a dealership.

Research tells us Tamfo’s buying process is typical for millennials.

This demographic aged 18-34 is quickly becoming the biggest consumer audience.

According to 2015 DrivingSales consumer experience research, in 2014, millennials accounted for 27 per cent of new car sales in the U.S., up from 18 per cent in 2010.

How can dealers adapt to these unique buying habits?

We’ve compiled a few tips for dealing with millennials.

LIVE WHERE MILLENNIALS DO

If you want to make an impression on this cohort, set up camp online with these things in mind:

  • Make sure your website is mobile friendly, meaning it can be navigated easily using a computer, tablet or smartphone;
  • Post real — not stock — photos of your inventory on your website; and
  • Have a presence on YouTube — make a video, not a sales pitch, that speaks directly to what your dealership offers this generation.

BE RESPONSIVE

There are few things that make you more irrelevant to millennials than being digitally unresponsive.

“If you don’t respond to [my email], I’m not coming to your dealership because that makes me think that you don’t care about me,” said Tamfo.

Promptness is also key. “I would wait a day or two for a response, but I would think more highly of the dealership that answered me first.”

Finally, be sure to answer the questions the email contains, including pricing. Honesty and directness goes a long way with millennials.

Just sending millennials a cheerful invitation to the showroom will send them to another store for more complete information.

FACILITATE A CONVERSATION

According to the DrivingSales research, 64 per cent of millennials surveyed said they would buy a new vehicle more often if the process wasn’t so difficult.

“Had a dealership offered a concierge service by bringing a car to my home or office for a test drive, I would have done it. And I probably would feel a bit of pressure to give the sale because they made the extra effort.”

“My ideal car buying experience would be from a salesperson who not only listens to what I’ve asked for but suggested things that are useful to me,” said Tamfo. “If I come in and say I only have $20,000 all-in, I’d hope that they’d respect that and work with me for the best possible deal.”

Jennifer Bennett, a 29-year-old account director in sales and client relationships, agrees. She came up with a creative solution to avoid an aggressive sales pitch.

Instead of approaching dealerships to test drive cars, she bought a Zipcar membership and borrowed various models a few hours at a time to test drive them in real-life situations.

When the lease on her current car is up, she’s prepared to enter a dealership with a clear choice in mind for her next purchase.

She’s not alone: a 2014 Google survey indicated 50 per cent of potential car buyers know exactly what vehicle they want to buy.

DrivingSales said that millennials want to be served by a dealer they feel they can relate to — even if that means paying a little more for a great experience.

BE PROGRESSIVE

Millennials are accustomed to automated online interactions. When describing her ideal buying experience, Bennett described a system similar to online dating.

She says a dealership that’s willing to go the extra mile would secure her loyalty.

“It would be great to fill out a form online describing my needs, lifestyle, preferences and budget and take advantage of a dealer’s expertise to be matched with the right car.”

Bennett would even have gone the traditional test drive route if a dealership had gone the extra mile.

“Had a dealership offered a concierge service by bringing a car to my home or office for a test drive, I would have done it. And I probably would feel a bit of pressure to give the sale because they made the extra effort. They would have had a sales opportunity they wouldn’t otherwise have had and a relationship could have begun.”

Like most consumers, millennials want to feel respected and understood — and do business with you on their terms. They expect honesty and creative, flexible thinking when it comes to sales.

Throw in lightning fast text messages, and you’ve got a new customer.

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What you see is what you get https://canadianautodealer.ca/2016/03/what-you-see-is-what-you-get/ Tue, 08 Mar 2016 00:52:24 +0000 https://canadianautodealer.ca/what-you-see-is-what-you-get/ MORE DEALERS ARE COMING AROUND ON TRANSPARENCY, AND ARE TAKING THE TIME TO INVEST IN INITIATIVES TO MAKE THE AUTO INDUSTRY MORE TRANSPARENT What can the auto retail industry learn from wildly successful companies such as Uber, Airbnb and Zipcar? A lot, according to Chris Afonso, Vice-President of Dealer Sales at CARPROOF. He says the... Read more »

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MORE DEALERS ARE COMING AROUND ON TRANSPARENCY, AND ARE TAKING THE TIME TO INVEST IN INITIATIVES TO MAKE THE AUTO INDUSTRY MORE TRANSPARENT

What you see is what you get

What can the auto retail industry learn from wildly successful companies such as Uber, Airbnb and Zipcar?

A lot, according to Chris Afonso, Vice-President of Dealer Sales at CARPROOF. He says the rise of companies like Uber, which put the consumer in control of business transactions, provide a cautionary tale the auto industry would be wise to observe.

“The taxi industry was around forever. It was this old, stalwart way of doing things. Then somebody in their living room came up with an app [Uber] and completely disrupted a whole industry. The auto industry is ripe for somebody to do something similar.”

There’s no question that the consumer has never been more informed or demanding. With the flick of a finger, they can find everything from new vehicle specs to book values to which dealer is offering the best price within 20 km of their house.

Though we’re not quite at the point of buying a car from our smartphones, Afonso believes it’s only a matter of time. So how do dealers stay relevant and adapt to the buying habits of today’s savvy consumers?

In a word: transparency.

Josh Bailey, Vice-President, Research and Editorial, at Canadian Black Book, says consumers are already taking their car buying experience into their own hands.

“Around half a million consumers a month are coming to our website to look at trade-in values or research what we call the average asking price. I think that’s evidence that people are curious and serious. They want to go into [a dealership] with a genuine understanding of what they can expect in terms of value.”

Dealers who are unwilling to adapt to the changing way consumers expect to be served will miss out, creating natural consequences in the form of lower sales.

While the rumble of change has been heard in the distance for a while, formal measures to ensure transparency in the industry were ushered in with legislation like Ontario’s Motor Vehicle Dealer Act in 2010. British Columbia had already passed a similar law.

The rumble is getting louder. Earlier this year, CARPROOF invested $1-million into the Transparency Advantage, an industry-led think tank comprised of representatives from dealer groups and OEMs across the country. Through research, it’s focusing on “driving innovation to take transparency in the auto industry to the next level.”

By researching and surveying the experiences of consumers and dealers, the initiative is gaining insights into how consumers want to buy vehicles and how dealers need to adapt to accommodate the new marketplace. Underpinning everything is the concept of transparency.

WHAT DOES TRANSPARENCY LOOK LIKE?

Transparent business practices include:

  • Responding to customers’ email inquiries about prices and specs quickly and fully;
  • Volunteering detailed information about previous vehicle damages as a result of an accident;
  • Educating the consumer about why the price is the price, which eliminates — or greatly reduces — the act of haggling;
  • Building trusting relationships with customers, thereby creating opportunities in the warranty, maintenance and service departments;
  • Providing online services, i.e. service appointment bookings, for 24/7 customer service; and
  • Knowing more about your cars than your customer; expecting and respecting the fact that the customer may have done up to 18 hours of research before walking onto the lot.

For Bailey, transparency goes beyond simply sharing honest information about a vehicle. It’s the foundation on which to develop a potential long-term relationship. “Transparency simply makes it easier for people to trust doing business with you… [The salesperson] tells you the price. They don’t say, ‘let’s talk about power window switches first.’ They don’t give you the run around,” said Bailey.

“Dealers are coming around. They’re willing to do business online and by email. The good ones will respond in minutes, sending an electronic brochure in the first email, letting the customer know how many of the vehicles they’re interested in are in stock and reassuring them that if they don’t have it they can get what the customer is looking for,” he added.

While the rumble of change has been heard in the distance for a while, formal measures to ensure transparency in the industry were ushered in with legislation.

Afonso agrees. He believes dealers who are unwilling to adapt to the changing way consumers expect to be served will miss out, creating natural consequences in the form of lower sales.

“I still hear anecdotes of dealers who won’t disclose monthly payments on the phone or by email. They want the customer to come into the dealership to talk about it. The response will be, ‘I asked how much the vehicle was and you won’t tell me — I’m going to the next dealer.’”

Steve Chipman, President and CEO of Birchwood Automotive Group in Winnipeg, Man., has been in the business for 52 years. When you talk to him about transparency, he’ll tell you it’s just one more way the industry has evolved over the years. Adapting is part of the business.

“The world has changed. The days of marking the price up to mark it down are gone; the price is the price. What we used to have is information that the customer didn’t have. When you have information, it gives you power. Now we have to let go of that. We’re in the business of giving customers what they want,” said Chipman.

A member of the Transparency Advantage, Chipman points out that, as informed as consumers may be, a good relationship with a dealer goes beyond hammering out a good price on the car.

“We’ll give customers the information they want over email, but they still have to see it to make sure they like the car. The test drive is still an important aspect of buying. Our sales managers want to make sure you get a good car that operates properly and efficiently because a happy customer will come back again and refer people to us.”

Afonso says the majority of dealers in Canada are in line with the way Birchwood Auto Group conducts their business with transparency.

“I give our industry a pat on the back. We’re doing a good job and going in the right direction. The discussions we’re having with dealers and dealer groups across the country are telling us that this is only going to get better. Dealers who are taking a risk on transparency recognize that they’re winning.”

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The best of the best https://canadianautodealer.ca/2016/03/the-best-of-the-best-2/ Tue, 08 Mar 2016 00:45:19 +0000 https://canadianautodealer.ca/the-best-of-the-best-2/ INTRODUCING RETAIL REVOLUTION, AN EIGHT PART SERIES ABOUT THE CHANGING FACE OF RETAIL Do you know what a widget is? It’s something that doesn’t exist, but which can be a very important tool for manufacturers and retailers alike. It’s a term given to a product — whether it’s as small as a paper clip or... Read more »

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INTRODUCING RETAIL REVOLUTION, AN EIGHT PART SERIES ABOUT THE CHANGING FACE OF RETAIL

The best of the best

Do you know what a widget is? It’s something that doesn’t exist, but which can be a very important tool for manufacturers and retailers alike. It’s a term given to a product — whether it’s as small as a paper clip or as large as an airplane — that needs to be made and sold.

The value of the widget concept is that companies can look at how they sell their products and interact with their customers, and then compare their methods to other successful retailers.

It’s difficult to believe that companies such as Apple, Amazon, Hudson’s Bay, Staples, McDonald’s, or even Got-Junk could be comparable, since they’re so diverse in what they’re selling. But if you think of all of them as widget companies, then the product isn’t important. What’s important is how they market those widgets.

That’s the point behind our new Retailer Revolution series, which will unfold over the next several months. We’ll be looking at a wide variety of companies that have nothing to do with vehicles beyond the fact that their employees drive them. But all of these companies sell or service widgets— and you do, too.

By presenting these companies and uncovering the secrets of their success, we’re hoping to provide you with a fresh outlook and a few tools that you may be able to incorporate into the way you work with your customers.

While it’s tempting to think online is going to be the only wave of the future, studies aren’t bearing that out

“Sometimes small business is a result of small thinking, and they just do not see the opportunities out there before them,” said Tom Shay, principal of Profits Plus Solutions, which offers online tools for retailers to help build their companies. “That’s not to say that big businesses don’t, but small businesses miss it (more often). If you think it’s all about the stuff that you sell, you’ll miss the big thing. It’s not what you sell, it’s that customer coming in the door.”

Some of the businesses we’ll profile started out solely as brick-and-mortar stores, and then got on board as online sales moved from a niche brand to a major method of commerce. But while it’s tempting to think online is going to be the only wave of the future, studies aren’t bearing that out.

A U.S. report by eMarketer found that while online purchases in that country totalled $200-billion in 2014, in-store purchases that same year were $4,050-billion. The researchers forecast that by 2020, U.S. online spending will rise to more than double that at $550-billion, but people will still visit actual stores to the tune of $4,900-billion in sales.

Meanwhile, a report by the U.S. Department of Commerce found that, in 2014, e-commerce sales made up only 8.3 per cent of total retail sales. People are still coming in to browse, to see, and to touch the merchandise before they hand over their cash. Even Amazon, which makes up the lion’s share of online commerce, plans to open several stores in select U.S. cities where people can see the products or speak with a live person before buying.

Of course, it’s easy for auto retailers to be a bit smug about the status of in-store commerce, because it still isn’t feasible for Canada Post to deliver a new car to someone’s mailbox, or for an owner to pack up a sedan and ship it back to the factory for its oil changes.

But that doesn’t mean that dealerships can rest on their laurels. Most customers are now doing at least some, if not all of their research online well before they come by to take a test-drive, and they’re coming into your store fully prepared.

An automotive study by customer-experience software and research firm MaritzCX found that product parity is increasingly the norm. As a result, the overwhelming majority of companies will have to compete primarily on the customer’s experience.

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Forty per cent of customers repurchase from the same dealer, naturally with the majority coming from the “Completely Satisfied” group that you would find on a survey. Just moving each customer up a step, such as from “Fairly Satisfied” to “Very Satisfied,” increases the probability of repurchase, but it has nothing to do with the vehicle itself. Instead, it’s all about how the customer felt he or she was treated by the dealership.

What customers expect also plays a huge role in the transaction, and is based on what will happen once they walk in the door. They know how to order their favourite drink no matter what Starbucks they are in, or realize the level of attention they’ll receive when trying on clothes at any Holt Renfrew store.

Your dealership will have your OEM’s corporate appearance, but it’s up to you to ensure that your employees deliver to the level of your customer’s expectations and to the level of your brand.

That becomes even more important when you realize that today’s customers don’t value brand loyalty as their parents or grandparents might have, especially when it comes to vehicles. And when they have an issue, rather than talk to the service or sales manager, their first response is often to immediately air that grievance on social media.

Shay knows that as customer loyalty thins out, customer service has to step up to fill the gap. “In the last year, each of my twin sons have bought vehicles, and not one has yet had a call from the dealership saying, ‘How are you liking your car, did you take any friends in your car, got any friends looking for a car, how about bringing the car over and let us check it for you?’ They sold it and goodbye. What’s my reason to be loyal and tell anyone else about them?”

These are some of the lessons and tools that we hope to put forward by highlighting these non-automotive companies. Learning to be an effective retailer is far more than just low prices and balloons on the antennae. “I’ll ask a group of business owners, ‘How many of you think you give great customer service?’” said Shay. “They’ll all raise their hands, and then I say, ‘How many of you have a formalized program to educate your people how to sell, to answer the telephone, to take care of something defective? How many of you have a school where you teach this to people?’ and very few hands go up.”

Successful retailers keep their fingers on the pulse of their businesses. For example, Gallery Furniture operates three stores in Texas and does $200-million in business each year, with all employees handling transactions on iPads. When a customer wants to return a piece of furniture, company owner Jim McIngvale gets a ping on his device, and he evaluates how it was handled. It isn’t because he doesn’t trust his employees’ actions, but because he wants to be sure the customer is as satisfied as possible.

These are the types of stories we’ll be presenting, as we look at a wide variety of businesses to see what makes them tick. No matter what you’re selling, excellent customer service is always the key between a business that just survives, and one that thrives.

What customers expect also plays a huge role in the transaction, and is based on what will happen once they walk in the door. They know how to order their favourite drink no matter what Starbucks they are in, or realize the level of attention they’ll receive when trying on clothes at any Holt Renfrew store

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Spruce up your online store https://canadianautodealer.ca/2015/10/spruce-up-your-online-store/ Mon, 26 Oct 2015 19:57:23 +0000 https://canadianautodealer.ca/spruce-up-your-online-store/ BEST PRACTICES FOR DEALERSHIP WEBSITE DESIGN SEEM TO CHANGE IN THE BLINK OF AN EYE. CANADIAN AUTO DEALER OFFERS UP TIPS ON WHAT SOME OF THE EXPERTS HAVE TO SAY ABOUT DESIGN AND FUNCTIONALITY — AT LEAST TODAY. Auto dealers know that their online stores have never been more important to their business operations. But... Read more »

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BEST PRACTICES FOR DEALERSHIP WEBSITE DESIGN SEEM TO CHANGE IN THE BLINK OF AN EYE. CANADIAN AUTO DEALER OFFERS UP TIPS ON WHAT SOME OF THE EXPERTS HAVE TO SAY ABOUT DESIGN AND FUNCTIONALITY — AT LEAST TODAY.

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Auto dealers know that their online stores have never been more important to their business operations. But with so many rival dealerships clamoring for attention online, how do you make your website a useful destination for potential customers?

It may be easier than you think.

We’ve uncovered some insights to help you make your website stand out in the crowd. (Hint: Simple is better.)

MAKE IT MOBILE FRIENDLY
As dealers know, customers are just as likely to be shopping for vehicles on their smartphones while standing in line at the grocery store as they are sitting at home on their desktop computers.

If you want your website to get noticed by search engines like Google, it’s critical that it can be viewed on any device.

“Just a few years ago we may not have said this [mobile friendliness] would be the first step in building a good website, but because 40-50 per cent of traffic comes from mobile, Google is taking a good hard look at that,” said Brent Wees, Partner and “Ambassador of Buzz” at Powered by Dashboard, a product innovation company that develops online tools for the automotive industry. “Google needs to know that your website is a friendly experience for all devices.”

Most website developers understand what’s involved with designing a mobile-friendly website. Ask yours if your website has been modernized for mobile.

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KNOW WHAT YOUR CUSTOMER WANTS
Your brand messaging is important. But learning about your company is not necessarily why a user is visiting your website.

“It’s important to get down to the square root of a happy user. If you provide an environment that allows people to do what they want to do quickly and easily, they’re happy and they’ll spend more time there,” said Wees.

Wees recommends inviting friends, family and customers of varying ages to spend time on your website — using different devices — and watch how they use it. What do they want to do? Where do they go on your site to do it? How easy is it for them to find the information they’re searching for?

You may find people fumble over certain buttons or that graphics are not inciting the action intended. These insights may help you come up with a more inviting design.

KEEP IT SIMPLE
When it comes to website design, simplicity trumps all.

“Consumers don’t want to see starbursts on a home page with 15 different offers,” said Kyle Orlando, COO of edealer.ca, a company specializing in building online marketing solutions for the automotive industry. “They want to see limited and succinct information that will steer them in the direction they want as quickly as possible.”

Wees agrees. “Before visiting dealership websites, consumers do a lot of research on manufacturer sites, which tend to be clean and simplified. Dealership sites need to be designed with that same fluid motion.”

“Quieting down” the website to one screen with big pictures and simplified information is a best practice that will retain users.

Orlando recommends taking a page from monster online retailers like Amazon.ca and Zappos.com. He points to the simplistic way to use these sites. “You visit the site, pick the product and can then purchase it. They’re not taking you to three different description pages where you’re hit with 15 different options. It’s simple and effective.”

INCLUDE INVENTORY
“When you look at Google analytics, inventory is king and always will be, whether it’s new or pre-owned,” said Wees. “If we know this, don’t make it difficult for the user to find the information they’re there for.”

The true goal of any website is a happy user. It’s that simple.

Orlando says many dealers believe that if they list new inventory and don’t have exactly what the consumer is looking for, the potential customer will go elsewhere.

“It’s a complete fallacy. Consumers understand that if you don’t have the exact vehicle on the lot you can order it for them with any configuration made from the manufacturer. If you have something similar, they’ll come in and test drive it.”

He says regularly putting up limited inventory is well worth the time.

“Anytime a dealer adds new inventory to their website they’ll see a 15 per cent jump in engagement (pages per visit, time on site) and a 10 per cent increase in conversion.”

BE TRANSPARENT WITH PRICING
There’s no question that consumers are concerned with pricing from dealer to dealer. They often visit dealer websites to compare.

“They want to know what they’ll save before they ever set foot in your dealership door. Why not give it to them?” said Orlando.

He advises being transparent with out-the-door pricing. When a consumer sees a price front and centre on a website it’s information they can use and is often the beginning of a trusted relationship.

DON’T WRITE FOR GOOGLE
Though it’s important to develop your website in a Google-friendly way, you’re crossing the line if you try to write solely for the search engine’s benefit. “A lot of people are still writing for Google which is 100 per cent the wrong approach. Write for your user, not for search engines,” said Orlando. “If your users are happy, Google is happy.”

An example of writing for Google is a blog article full of key words that users search for, but doesn’t contain any meaningful information they can use.

“Your users will be irritated. Sure, [the article] has a key word I typed in but it’s not relevant to what I’m looking for. You may get short-term gain in traffic to your website, but it’s not quality. You’re actually pushing people away by not providing them with the information they’re seeking.”

And if Google detects that you’re riddling your website with key words among poor quality content, it’s likely that they’ll bury your site in search engine rankings.

SHOW WHO YOU ARE
Your website should showcase the sensibility your dealership embodies. Be open about who you are and what you do — just wrap that around a design and content that users can use for their own purposes.

“The true goal of any website is a happy user. It’s that simple,” said Wees.

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