The Richmond Hill BMW Autohaus is the latest brand to jump on an emerging dealership trend: dealerships that offer maintenance and nothing else.

WHAT IS IT?

Service-only centres are popping up across Canada among luxury brands such as Audi, BMW and Mercedes, from Vancouver to Montreal.

Canadian auto dealer spoke to Paul Roach, General Manager of the recently opened BMW Autohaus service-only centre north of Toronto, who told us the new Richmond Hill BMW service-only centre is “a factory authorized BMW dealership, minus the new and pre-owned sales department.”

Taking the showroom out of the dealership creates a facility that can handle a larger volume of customers to reduce wait times and provide an upscale customer experience, said Roach.

“Every BMW customer deserves a ‘premium’ sales and service experience,” said Roach. “The introduction of BMW Richmond Hill Service allows us to present a state-of-the-art facility with the latest technology available to service a BMW vehicle.”

Architect Beto Najman describes the look and feel of the facility’s design as “boutique.” Employees were included when it came to design considerations. “It used to be a very back of house look,” Najman said about service bays. “What some dealers are now trying to do is make the shop a very nice area for their employees to work.”

WHAT DROVE THE CHANGE?

How did this business model arrive on the radar of dealers? Roach said it comes down to customer demand.

BMW Richmond Hill wanted to offer better access for customers north of highway 407 due to traffic, to reduce wait times, and to provide a no-pressure sales environment for customers, said Roach.

The J.D. Power 2016 Canadian Customer Service Index Long-Term (CSI-LT) Study also revealed another service department complaint of many customers: a lack of the ‘connected experience’ that Wi-Fi affords.

That’s why the BMW service-only centre has made digital tech a seamless part of their service. “We are constantly looking for ways to improve our customer experience utilizing the latest technologies,” said Roach. Currently they offer free Wi-Fi, and are adopting tablets in the near future.

Despite consumer interest, the same J.D. Power study found a mere six per cent of service customers booked their last appointment online, even though 14 per cent wish they could.

But dealers do outshine aftermarket options with free Wi-Fi. The same study also found that 42 per cent of dealerships are connected, while only 14 per cent of aftermarket facilities have followed suit.

The million dollar question is whether building a stand-alone, top-of-the-line boutique service-centre is worth the significant investment these facilities demand.

how will it work?

A recent U.S. consumer survey by Cox Automotive found less than one in three maintenance visits happen at the dealer. A digitally connected, service-only centre may address that disconnect.

Since more than one-third of buyers don’t track their own maintenance schedules, sending email alerts — the top preference of survey respondents for receiving maintenance information — and online appointment scheduling can help draw them in.

“Currently, we offer online appointments, as well as service updates via email or text. After initial inspections, we provide digital copies of repair estimates, as well as provide reminders for previously declined work,” said Roach.

The Cox Automotive study also found introducing buyers to a designated service representative at the time of purchase increases the chances buyers will return for service by half. Putting the bulk of your service team away from the showroom could create a logistical problem to making those introductions in person — a digital solution may be called for in that case as well.

What Roach said is that “service consultants staff are the face of BMW Richmond Hill Service.” It’s all about building relationships. Whether digital would be as effective as a face to face introduction wasn’t looked at in the study.

Despite the power behind digital service, a bricks and mortar location may be what’s needed to make it easier for consumers to get service when they need it. The survey said “70 per cent of all service visits are less than 10 miles from the customer’s home,” and the percentage of consumers who return to the dealer for service drops off with every additional mile.

Another potential return from service-only centres is the opportunity to market and sell another big revenue generator. “If you have the space to can fit a car where you’re able to show accessories … that’s always a very good thing,” said Najman.

BMW Richmond Hill saw the opportunity. “We created a comfortable waiting lounge for those who prefer to wait,” said Roach. “Our customers can shop for lifestyle and boutique accessories, or just sit back and enjoy a hot or cold refreshment.”

The next frontier

The J.D. Power study showed that the biggest area for improvement in Canadian dealerships is to offer a more digital environment. Something as simple as adding the coveted free Wi-Fi to the waiting room increases the likelihood a customer will “definitely return” by 11 per cent.

Other digital technology like tablets also increase consumer confidence in service professionals. The J.D. Power study said when a service advisor uses a tablet while recommending additional work, 61 per cent had it done. When the advisor didn’t use a tablet but recommended additional services, that number was only 44 per cent.

Whether the service-only centre is a trend that will prove lucrative and break free of the luxury market remains to be seen. But the J.D. Power study revealed that taking your customer experience from “pleased” to “delighted” increases intended customer loyalty by 25 per cent, and customer loyalty means more business.

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How The Car Girls helps dealers make more money

Janis Showers was in the middle of a service-call training session when one of the managers at the dealership had a better idea. “Can’t you just make the calls? Can’t you make this all go away?”

Showers picked up the phone that day to ask her friend if she wanted a job, and The Car Girls was born.

The Car Girls is much more than a call centre that connects dealers to their service customers. Her staff cultivate relationships and foster trust by helping car owners understand how recommended maintenance saves them money.

“I’d rather tell someone I’m calling to tell them they need to replace their timing belt than sell them a flush or something that they don’t need,” she said.

Showers knows that dealerships often lack the bandwidth to make those revenue-driving calls happen. “We’re trying to help them on the front lines where they’re spread so thin,” Showers said. As a car sales veteran, she understands those demands first-hand. “I feel their pain,” she said.

That’s why Showers trains her staff using “deep phone skills.” Her staff are trained on what to say, and how to use the dealership’s CRM to call the right person at the right time, and according to CRTC rules.

The bottom line for Showers is helping dealers make more money. “If the work order count’s been averaging 20 work orders a day, and after three months we’re averaging 25 work orders a day, we know we’ve done our job,” she said. The company also uses Customer Pay numbers to measure its success.

She recently told a room full of dealers at DealerTalk^X in Toronto that marketing success comes from loving your data. But she understands that keeping customer information up-to-date and “scrubbed” in the complex world of automotive maintenance is not an easy job.

“It’s a mountain, and you climb a couple of steps every day,” Showers said.

Right now, the core business of The Car Girls is to get the calls done “however the dealerships wants to work with us,” as well as train in-house dealership marketing staff to field the call backs.

“We host people here who make calls, and they sit with us to see how we do it,” Showers said. “We can pump out 500 calls, but [they] can’t do that,” However they can take the “30 people who call back.”

Showers already has her eye on the next frontier: providing dealerships with full-service BDC, and equipping the recently acquired Car Girls garage to train dealership staff on critical skills, like the art of the vehicle walk-around.

But it’s the company name that reveals her greatest passion. Showers chose ‘The Car Girls” deliberately to fuel her mission to bring women into the automotive industry.

“You have to go to major league baseball team owners to find a category less represented by women,” she said, even though “companies make more money when there are women in management.”

“If you have any diversity then you can better serve your clients,” said Showers.

To learn more about the Car Girls, visit http://thecargirls.ca/#automotive-call-centre.

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Record crowds

Close to 200 guests attended the Langley, B.C. launch event. Since then several vehicles have already sold, said OpenRoad Auto Group, which operates OpenRoad Infiniti Langley.

“There was much anticipation leading up to this launch,” said Moe Khan, General Manager, OpenRoad Infiniti Langley, in a written release. “Our customers have expressed significant interest in both the Q60 and QX30 and we’re pleased to have sold several since our launch event last week.”

The North American International Auto Show in Detroit debuted the production version of the 2017 Infiniti Q60 sport coupe in January of 2016.

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The dealership group announced recently that it entered an agreement to purchase Wellington Motors Limited, which operates a Chrysler Dodge Jeep Ram Fiat dealership in Guelph, Ont.

“We are extremely pleased to welcome Wellington Motors into our Ontario dealer group. The dealership recently owned and operated by Ted and Mike Woods has a long history serving the Guelph community, recently celebrating its 75th anniversary. We are thrilled to acquire such a flagship store in Ontario. The Woods family has been a staple in the Guelph community and AutoCanada intends to continue that strong tradition,” said Steven Landry, CEO of AutoCanada, in a written release.

The purchase includes the dealership land and 40,793 sq.ft. facility with a 12 car showroom and 16 service bays. In 2015, Wellington Motors Limited sold 968 new vehicles and 402 used vehicles, with an annual revenue of approximately $61-million.

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The dealership group announced recently that it entered an agreement to purchase Wellington Motors Limited, which operates a Chrysler Dodge Jeep Ram Fiat dealership in Guelph, Ont.

“We are extremely pleased to welcome Wellington Motors into our Ontario dealer group. The dealership recently owned and operated by Ted and Mike Woods has a long history serving the Guelph community, recently celebrating its 75th anniversary. We are thrilled to acquire such a flagship store in Ontario. The Woods family has been a staple in the Guelph community and AutoCanada intends to continue that strong tradition,” said Steven Landry, CEO of AutoCanada, in a written release.

The purchase includes the dealership land and 40,793 sq.ft. facility with a 12 car showroom and 16 service bays. In 2015, Wellington Motors Limited sold 968 new vehicles and 402 used vehicles, with an annual revenue of approximately $61-million.

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RouteOne’s platform delivers Finance and Insurance (F&I) solutions across multiple channels: in-store, online, mobile, and via third-party solutions. Its flagship products include credit applications, contracting, compliance, and digital retail services.

Dealers will be able to import customer data from DealerSocket into RouteOne to complete the credit application and contracting process, said the companies. This capability has been available in the U.S. since 2011 and the organizations are now expanding to include the Canadian market.

“We are passionate about bringing our dealers choice and creating efficiencies in their processes,” said Barry McMillan, President of RouteOne Canada in a written release, “and the addition of DealerSocket integration helps us continually deliver on this goal.”

“The existing relationship between DealerSocket and RouteOne has successfully brought our mutual dealers strategic value,” said Sam Rizek of DealerSocket, in a written release. “We are excited about expanding these benefits to our Canadian dealers.”

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This internationally recognized Habitat for Humanity event will be returning to Canada in 2017 to celebrate Canada’s 150th anniversary of Confederation.

Habitat for Humanity Canada is slated to build 150 safe, decent and affordable homes for 150 families across Canada, to help break the cycle of poverty through home ownership.

Since the partnership with the Nissan Canada Foundation began in 2008, nearly 1,000 Nissan Canada Inc. and dealership staff have volunteered close to 6,000 hours of time to help build 50 homes in cities across the country, including Vancouver, Calgary, Edmonton, Toronto, Ottawa, Montreal, Saint John and Halifax.

“We are absolutely thrilled that the Nissan Canada Foundation will be supporting the 2017 Jimmy & Rosalynn Carter Work Project in Canada,” said Joni Paiva, president of Nissan Canada Inc. in a written release.

“With Habitat, Nissan has a broader platform through which we can impact the lives of deserving families, long-term and in a meaningful way, carrying out our corporate vision to enrich people’s lives.”

The Nissan Canada Foundation is marking 10 years of partnership with Habitat for Humanity in Canada, and will also be involved in other projects including acting as a title home sponsor for a Malton, Ont. project where a complex of townhomes will be erected starting in 2017.

The foundation said it will also donate a 2017 NV Passenger Van to Habitat for Humanity’s Halton-Mississauga’s new ‘Volunteer Shuttle Program’ to help launch the new initiative.

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The panel of speakers brings together a wealth of knowledge and experience, and includes the Hon. Todd Stone, MLA for Kamloops — South Thompson, and Minister of Transportation and Infrastructure & Minister Responsible for Emergency Management BC, Government of British Columbia.

Industry experts such as Michael Hatch, Chief Economist, Canadian Automobile Dealers Association (CADA), and Maria Soklis, President, Cox Automotive Canada, will kick off the event, and experts from the legal, human resources, and marketing sectors will be offering some wisdom as well.

For those who want to join in the fun for the Amazing Race Adventure Challenge, you’ll need to arrive early on Thursday, Oct. 13. The festivities take place from noon to 4:00 p.m. before registration that evening.

A pre-dinner reception and the Chairman’s Dinner Gala will follow the conference.

To register, visit http://bcautoconference.ca/registration/.

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Close to 200 guests attended the Langley, B.C. launch event. Since then several vehicles have already sold, said OpenRoad Auto Group, which operates OpenRoad Infiniti Langley.

“There was much anticipation leading up to this launch,” said Moe Khan, General Manager, OpenRoad Infiniti Langley, in a written release. “Our customers have expressed significant interest in both the Q60 and QX30 and we’re pleased to have sold several since our launch event last week.”

The North American International Auto Show in Detroit debuted the production version of the 2017 Infiniti Q60 sport coupe in January of 2016.

The post Infiniti cars draw big crowds appeared first on Canadian Auto Dealer.

“Scotiabank is pleased to celebrate this milestone with our long-time strategic partner, GM Canada,” said Chris MacDonald, Vice President, Partnerships, Credit Cards at Scotiabank. “We are committed to providing our customers with some of the richest rewards in the Canadian marketplace today, and to help Canadians put their everyday credit card spending to work for them. The Scotiabank GM VISA Cards are a great choice for Canadians looking to purchase their first car, family car or dream car.”

The award-winning Scotiabank GM VISA Infinite Card took first place in the Best Retail Rewards category in the 2016 MoneySense Annual Credit Cards Ranking. The Scotiabank GM VISA card also won second place in the Best Retail Rewards category.

One customer who took advantage of the offer was Dr. Gary Klein and his wife, author, speaker and coach, Terri Klein of Thornhill, Ont. They started using a Scotiabank GM Infinite VISA card in the fall of 2015 and soon put themselves behind the wheel of a new Buick Enclave.

“The process was easy. We knew that the Scotiabank GM VISA Infinite would be a great way to build rewards points into something we knew we wanted,” said Dr. Klein. “Once we built up the points, we decided to lease a new Buick Enclave to replace the one we already had. The first thing we did was load up our family on a road trip for the holidays and that trip was a very special time for our family.”

Loyalty programs that create those kind of customers experiences are a great way for dealerships to cultivate a customer base of return business and referrals.

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Skeleton champion Jon Montgomery

Disrupt or die was the key message coming out of DealerTalkX Toronto on Sept. 20.

Olympic gold medalist and TV host Jon Montgomery kicked off the event with his own story, explaining how taking calculated but unexpected risks moved his life from car auctioneer, to Olympic gold medalist, to the host of the Amazing Race Canada.

Most dealers agree that digital is the future of marketing. The challenge is evolving their digital strategy with the rapid pace of change. Jason Lucas travelled from Kingston for his fourth DealerTalk and said the event helps his dealership meet that challenge. DealerTalk provides takeaways his team can put into action right away, and also “validates what you’re already doing,” he said.

So where’s the best place to start with your digital strategy? Susan Seto says it’s knowing your buyers. Seto, Vice-President, Market Strategy of Environics, presented the results of a study her company conducted with Kijiji to discover what motivates the Canadian car buyer. It turns out that Canadians take a logical, practical approach to buying a car. A focus on women and millennials revealed what these key markets want from their car buying experience, and she suggested some ‘best bets’ to make sure they get it.

Uncovering and leveraging your dealership’s data another key step to increasing sales. Janis Showers, owner of The Car Girls and Rohn Jackson, Head of Analytics at Kijiji both spoke to this crucial topic. Showers’ approach starts from the ground up. She’s an expert in coordinating the data gathering efforts between every department to keep your data fresh and reliable. Jackson spoke to how dealers must “read the real data to see where they’re at,” to drop preconceived notions about customers.

And the dealers are on board. Mark Baltazar, Vice-President and partner at BrandSpark International shared the results of a study revealing that dealers are recognizing and embracing digital technology.

Look for more in-depth coverage in October’s issue of Canadian auto dealer.

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The Policaro Automotive Family has a new name, look and facility for its new dealership: Policaro Acura in Brampton, Ont.

The grand opening of the facility to be celebrated on Sept. 29., will coincide with the launch of the sporty 2017 Acura NSX.

“We are very excited to unveil the brand new look of Policaro Acura, along with being named one of the exclusive Acura NSX certified retailers”, said Lina Policaro, General Manager at Policaro Acura in a written release. “The 2017 Acura NSX is truly a luxurious beauty and packed with precision crafted performance Acura is known for.”

In tandem with the grand opening and vehicle launch, a scholarship fund of $5,000 is being offered by the Policaro family to a graduating student from North Park Secondary School pursuing post-secondary business studies. Starting in September 2016, the scholarship will be awarded yearly.

Many notable guests will be on hand for the grand opening, including Toronto FC Striker and MLS MVP, Sebastian Giovinco and Mayor of Brampton, Linda Jeffrey.

The new facility is located at 2250 Queen Street East, in Brampton, Ont.

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