Solera solutions help dealerships out sell, out service, and out perform the competition
Every year, the annual National Automobile Dealers Association (NADA) show attracts thousands of auto dealership employees to network, learn emerging industry trends, and find out about the latest technology that can help them streamline operations and improve their business.
Solera, the global leader in vehicle lifecycle management, will be in attendance at NADA Show 2023 in Dallas at the Kay Bailey Hutchinson Convention Center from Jan. 26-29, demonstrating its industry-leading solutions that help dealerships drive sales, reach more customers, and improve profit margins.
Whether it’s marketing and sales, financing and titling, or service and repair, Solera’s solutions help auto dealers:
Solera’s dealership solutions streamline workflows, provide actionable insights, elevate customer experiences, and keep customers engaged with their dealerships. To find out more about how these solutions can accelerate your dealership’s success, visit Booth 3969 during the NADA show or schedule a demonstration.
When you have access to an all-in-one solution, it minimizes the time and resources needed to get the job done. That’s what dealer management software can do for you. It brings together all functions of inventory management into one simple platform. Why wouldn’t you employ it if it makes your job–and that of your teams–easier?
Back to the basics: dealer management software is one easy-to-use system with a full suite of products and plugins. It helps integrate and manage sales, parts, service, finance, insurance, and warehouse inventory, creating a more efficient use of resources from staffing to features and services.
As a saavy DMS user, you likely think you know all the many ways DMS can help, but some may not be readily apparent. Here are nine points to share with your employees and other stakeholders:
Now that you know the many other ways dealer management software can help, let’s look at why you need it:
Dealer management software is the all-in-one solution for your team’s needs, so now is the time to transform. Solera offers enterprise-level solutions, including our innovative DMS and IDMS.
Learn More About Our Best-In-Class DMS & IDMS Solutions
The customer experience (CX) is the driving force of any successful business. More than ever, providing customers with seamless service and access to information is vital to attracting and retaining valuable consumers. For that reason, franchise and independent dealership websites must focus on the customer experience by reflecting this cultural shift and offering auto buyers a variety of ways to find the information they seek.
According to recent data from Qualtrix, 8 out of 10 people feel customer experience should be improved across products, prices and fees, customer service, and ease of use. Brands risk losing9.5% of their revenue on average due to poor customer experience. And more than 50%of customers say they are likely to leave a brand after a bad customer experience.
You will lose potential and existing customers if your website is clunky, outdated, or hard to navigate. People have many choices, so optimizing your website experience, for both the car buyer and service client, is key to generating new revenue and word-of-mouth recommendations.
Here’s what to look for:
The first –and most important– element of a successful dealer website is that it’s responsive, meaning it works the same on any device. Most consumers initially research purchases from smartphones, so your branding must be consistent across platforms. Ensure it’s easy to search, provide chat options and use eye-catching elements that are visually exciting. You are selling your products and services here, and this is your first chance to make an impression before a client ever steps through your doors.
Giving your customers many ways to learn about your products and automotive services on their own can only benefit you. A rich and compelling content offering will allow potential and current customers to explore and find answers to their questions on their own before they meet with you in person. Giving them the information they are looking for helps establish you as a valuable resource, even if they don’t buy anything this time. You can offer this by creating an extensive knowledgebase on your dealership website with testimonials, product videos, and articles on trends or new releases. Customers will check your social media for reviews, so stay on top of those channels. And offering a “Get a Quote”/”Build Your Vehicle” page allows the consumer to envision how the vehicle will work with their lifestyle.
Offering a vibrant car search inventory is another way to elevate the customer experience. Consumers like to do their research, so provide different ways to imagine themselves in one of your vehicles. Here are a few suggestions:
Finally, identify the most utilized features customers visit and mine them for data and insights. And don’t fall back on updates. Continue to innovate and improve your site based on what you see customers engaging with and visiting the most. Crafting a rich and engaging dealer website will elevate your customer experience and set you apart from your competition. Find out more about how to create a new or optimize your current independent or franchise website today!
While there is plenty of attention on digital retailing during the pandemic, there has been little attention paid to how CRM help dealers navigate this period of social distancing. But it’s understandable. The CRM isn’t the new shiny object like digital retailing, and COVID-19 certainly reignited the digital-retail discussion. However, there’s no doubt of the importance of appointment-setting during COVID-19, especially for dealerships located in markets where sales were limited to appointment-only. It’s an art that predates the CRM, but, thanks to that important front-end tool, appointment-setting has become a science for some operations.
What often gets overlooked is just how often CRM providers update this critical tool. In DealerSocket’s case, the cadence is every two weeks. And the focus of late for DealerSocket is appointment-setting, with texting now a key component, thanks to dealer feedback.
Recently, a California dealership customer began sending every internet lead received an initial opt-in text. If there was no response within a few minutes, the following text message — one that garners a response 70% of the time — was sent, “We just received your internet request, and we have a few questions. Do you prefer a call or a text?”
That dealership sent and delivered 26,617 texts.
Then there’s Rashad Tillman, who manages a centralized BDC for a two-rooftop independent group in Southern California. With a keep-it-simple approach, he operates under the belief that a successful road to the sale requires five yeses from a customer. The use of DealerSocket’s SocketTalk texting tool usually accounts for two of those yeses, starting with the opt-in text.
“All we’re looking for is a reply. Once we get one, we’re in control,” Tillman says. And once a customer opts in, the following text is sent, “’We received your lead for the [make and model], which we have available. Do you have time today to test-drive the vehicle?’”
“That usually results in a reply,” Tillman says. “I’ve been working with DealerSocket’s CRM for seven years now, and I figured out real early that texting is now the primary form of communication. So, we try to eliminate as much conversation as possible.”
In one month, Tillman’s 20-member team sent and received 59,402 text messages through the CRM’s SocketTalk texting tool, with two members logging 2,900 sent and received texts for the month. Tillman notes that texting accounts for 80% of his department’s activity when working a lead, which is he says knowing how to configure DealerSocket’s CRM dashboard correctly is critical to making sure no opportunity falls through the cracks.
With DealerSocket’s CRM, managers don’t have to dig into the solution’s reporting tools to keep tabs on their team’s lead-handling activities. Merely creating a dashboard widget for web leads allows managers like Tillman to keep tabs on every opportunity and every text or email exchange. That’s where he says most managers go wrong. They have the talent and skills, but they resist to allow technology to augment their abilities.
In fact, the use of technology is how managers like Tillman are keeping their dealerships in the game when today’s car buyers are shopping more brands, more vehicles, and more dealerships than those car-buyer studies predicted they would four to five years ago. The latest data on that front comes from a study commissioned by Urban Science, which showed that the average car shopper is considering 2.6 brands, visits 2.5 dealerships, and submits, on average, three lead forms.
Regardless of whether your BDC staffers or sales teams are selling appointments or demonstrating to customers a willingness to be shopped to win their business, converting a lead into an appointment requires a CRM-driven process that doesn’t end once the customer says, “yes.”
The best part of a CRM-driven appointment-setting process is that it can be automated every step of the way. In the case of DealerSocket, our CRM’s Campaign Manager allows you to assign your operation’s best word-tracks to a BDC staffer’s scheduled response to an inquiry. It can also automate appointment reminders, confirmation communications, and follow-ups. Then there’s the CRM’s Business Rules automation tool. This allows managers to initiate activities such as vehicle prep and enrollment of customers into appropriate campaigns.
With this, CRM should be included in the digital retailing discussion. When a customer structures a deal through your website’s digital retail tool and submits their information, the question dealers need to answer is, “what does the experience look like when it does?”
By Winston Harrell, Strategic Growth Manager
There is no right way to data mine; the only wrong thing you can do is let all those sales prospects sit untouched in your CRM. Because on any given day, someone in your customer database is thinking about purchasing a new car. The key is not to be afraid to experiment, especially when it comes to the search parameters you use to ID those in-market opportunities.
That holds true when using a data mining tool does the searching automatically. Your store’s average credit score, time of ownership, and annual driving miles can make all the difference. And as we all know, being the first to engage means higher margins. Best of all, you don’t have to pay a lead provider to deliver the business you already earned. Let’s dig into six prospect list you can optimize by simply doing a little homework.
List No. 1: Customers Who Can Lower Their APR While Trading Up
Interest rates are historically low, which means there are opportunities to help past buyers take advantage. Typically, these will be customers with an APR above a certain range. Getting them back into your showroom could mean a new or newer vehicle and potentially saving them thousands of dollars in interest.
Search parameters for this list include average credit score, loan term, and down payment. Specifics vary depending on location. For example, in an area with an average credit score of 650 or less, use 2.5 years or greater as a timeframe of ownership. The reason is that’s the amount of time it takes for consistent payments to improve a credit score.
In fact, it’s a good idea, especially during these uncertain times, to conduct a regular credit bureau analysis. What you need is a credit tier profile of your customers. This knowledge cannot only be used for prospecting, it can guide your inventory sourcing strategy when finance sources tighten up.
List No. 2: Customers Who Can Lower Their Payment While Trading Up
Equity isn’t the only way to help a customer lower their payment while trading out to a new car. Your OEM’s current incentives, as many new car owners discovered through the pandemic in 2020, can also help lower payments. For example, it may be possible to identify car owners who are in a less equitable position but who are eligible for a large rebate, which can help offset their lack of equity.
To identify this list, follow the guidelines of the book your dealership uses to estimate current equity, then adjust according to incentives offered. For example, Kelley Blue Book wholesale plus $500, or NADA average trade-in minus $500.
Some data mining solutions will automatically match a prospect’s current vehicle with a vehicle in your inventory that’s similar to the one they already own. That makes it easy to send emails containing your lower payment offer and a link a vehicle details page highlighting the current model-year version of their vehicle.
List No. 3: Customers Who Declined High-Cost Service Repairs
When customers decline recommended services, it might be an indicator that the repair bill was more than the person was willing to invest. That means there’s a good chance they are weighing their options: Pay $3,000 for that repair or just buy a new car? So, set your data mining tool or search for customers who declined repair estimates above $1,500 and $3,000. Success will depend on brand and location, so do some experimenting.
List No. 4: Customers Approaching End of Lease
What makes identifying end-of-lease customers a popular activity is there’s a deadline for them to make a decision and we know the date. So, it’s a far easier process to set up that campaign than one that centers on equity position. The key is to engage these customers six months out and increase the frequency of communications at the deadline approaches.
When building your lists or setting your data mining tool’s parameters, you may want to target a specific model your used car manage wants to add to inventory. You can also search by specific ZIP code, area code, distance to the dealership, or even finance source. Based on the lease criteria, for instance, certain finance sources may come out with lease pull-ahead program that targets Ford F150s.
List No. 5: Customers Approaching End of Finance Term
As customers approach the end of their finance terms, they may be open to considering a new vehicle. Parameters on what the right timeframe is can be a bit tricky. Location and clientele are major considerations. For example, if the majority of your finance deals are for six years, it might be worth contacting some of your customers as soon as three years into the loan.
Customers who drive 12,000-plus miles per year will be open to trading their car at a higher frequency rate than those who drive only 8,000 miles per year. Other parameters to experiment with include equity position and payments.
The key with this list is to find owners who are past the honeymoon phase of ownership. Similar to the seven-year itch in a marriage, there is a period where most car owners don’t hate their vehicles but would be willing to trade up if presented with the option.
List No. 6: Customers in an Equity Position on Their Current Vehicle
If you’ve ever data mined, you are familiar with this list. It doesn’t matter when a customer purchased their vehicle. If they have a certain amount of equity, it can be traded in for a newer vehicle. During periods like the one we’re in today, this list can be especially helpful to your used car manager.
In addition to identifying equity positions, I recommend slanting search parameters toward what the used car manager’s needs are. Specify makes, models, mileage, and other criteria that you want in used inventory. Once you pull these lists from your CRM, enroll prospects into campaigns that utilize email, text, and phone calls from your BDC or sales team.
While not as “hot” as new lead submissions, these lists should yield many potential car buyers. Plus, it’s a great way to check in with your customers. To make the effort worthwhile, ensure that your salespeople or BDC agents know how to qualify prospects. If someone isn’t interested, close them out and move on.
As previously mentioned, there’s no wrong way to mine your customer database, but a little homework and some experimenting will go a long way toward a fruitful data-mining expedition. But you better have a good process that’s written down, implemented, and managed.
# # #
We continue to think about all of you, our customers and partners, during this difficult time. This pandemic has caused deep challenges across our industry and for all of us, and I hope you know that DealerSocket continues to be here for our dealers. Our goal has been to strike the right balance between being prepared for our dealers and the market when our industry recovers and offering discounts to help our dealers as much as possible during this difficult time.
We will get through this, and we will get through this together. We are committed to fighting through this with you. We are beginning to see the first signs of positive trends as we climb out of the depths of the COVID-19 pandemic, and this has us all hopeful for the future.
In April, we heavily discounted our software for our dealers. In addition to our discounts in April, we have decided to offer the following DealerSocket billing reductions for May for all of our dealers:
We have already sent out our May invoices, so next week you will receive a credit memo for the above discounts. With that said, similar to our discount package last month, there are some basic qualifying terms listed below.
In addition to these discounts in April and May, DealerSocket continues to offer our customers several promotions and free months of certain software products to help you navigate this crisis. Our offers include promotions for:
Since we are adding promotions and various resources for dealers often, please view DealerSocket’s latest information by clicking here, and, as always, please feel free to reach out to your Customer Success Manager with any questions or if we can help in any way:
If you are not yet an Auto/Mate DMS customer, I hope you know that we can reduce your DMS bill significantly during these challenging times as well as into the future by switching to Auto/Mate DMS. We have several bundled packages that include our Auto/Mate DMS product combined with other DealerSocket products to support you.
Thank you for partnering with DealerSocket. I hope you know how much we value and appreciate your loyalty, partnership, and your business.
I wish you, your families, and your team members health in these unprecedented times.
Sejal Pietrzak
CEO and President
DealerSocket
[email protected]
Details regarding our COVID-19 relief package:
By Gregory Arroyo
Greg Tatum has a warning for dealerships everywhere: Cyber threat actors are working overtime. Noting a definite uptick in suspicious activity since COVID-19 hit Europe in late February, he adds:
“Threat actors are actively searching for new targets through a number of different mediums. Things like social media platforms are a very popular target for information gathering that can be used in an attack.”
Tatum serves as DealerSocket’s head of information security. He joined DealerSocket nearly four years ago from a security services firm that works with companies in much more sensitive environments than automotive. I’m talking about healthcare and government contractors, sectors that see billions of attacks each year. So, yeah, we have the right guy on the job.
“DealerSocket spends a considerable amount of effort protecting our customers’ data,” he notes. “It’s part of what we do just to make sure our customers’ customers’ data is protected.”
Tatum isn’t the only one sounding the alarm. The FBI issued its own warning on March 20, noting that scammers are leveraging the COVID-19 pandemic to steal money, personal information, or both.
Just last week, the National Automobile Dealers Association reported that attackers are now putting up COVID-19-related websites that prompt visitors to download an application to receive COVID-19 updates. But you don’t need to download the app, as the site installs a malicious binary file as you contemplate whether you should.
The attack method uses AZORult, software that originated in Russia approximately four years ago to steal data and infect the breached computer with malware.
Tatum also alerted me to a new phishing campaign that pretends to be from a local hospital notifying recipients that they have been exposed to the Coronavirus and they need to be tested.
But it’s not just phishing and ransomware attacks. Business email compromise, or BEC, is also on the rise. That’s when a cyberthief breaks into a legitimate corporate email account and impersonates an employee to get the business, its partners, or other employees to send money or sensitive data to the attacker.
“In this climate we live in today, this is part of business,” Tatum says. “This is part of what we have to deal with as consumers of technology.”
Tatum, by the way, is available to help. He advises DealerSocket customers to contact their Customer Success Managers to get connected. In the meantime, he offers the following four tips to safeguard your organization and your customers’ data:
The following is general security etiquette your teams should employ:
Use company-issued computers and mobile devices for work purposes only. If you don’t have a company-issued device, be sure to check your company’s policies about using personal devices to access your organization’s data or networks.
Additionally, consider creating separate user accounts. Never use your work email for personal reasons or vice-versa. This segregation helps the company maintain the confidentiality of the data it collects and helps you maintain your privacy.
Update your router’s username and password immediately and use a strong, unique password. And never use the same password for your network and your router. Note that most routers ship with default login credentials that are public knowledge.
The comfort of your own home is no reason to forget about physical security. Simple acts like keeping doors locked and not leaving mobile devices unattended in a vehicle are non-technical ways to improve security.
Gregory Arroyo is the former editor of “F&I and Showroom” and “Auto Dealer Today” magazines. He now serves as senior manager of strategic content for DealerSocket. Email him at [email protected].
By Patrick Mendoza
I’m not going to sugarcoat this: The current situation is bad, and it’s going to get worse.
You’ve heard this a hundred times the past couple of weeks, but these truly are unprecedented times. I’ve never seen such a drop in both the stock market and consumer purchasing, and such a rise in unemployment and concern.
The fall due to the pandemic all happened very quickly. Just one month ago, the stock market was at record levels, and analysts were predicting new auto sales to remain around the 17 million mark as it has been for the past several years.
Now, dealerships are closed due to government mandates and have had to furlough large swaths of their sales teams. Sales have fallen off a cliff, and now JP Morgan Chase is predicting auto sales to only reach 10.3 million units this year…10.3 million.
That’s bad. But you know what, this won’t last forever.
In all great moments of history when everything seemed bleak and that the bad times would never end, they did. The title of this post is “Hard Times Come Again No More,” which is the name of a sad song the soldiers used to march to in the Civil War. Think about how bad everything seemed then: brother vs. brother, the United States ripped apart with no hope of reconciliation. But guess what, we did, and we were stronger than ever.
It’s dark now, and, as King George VI said on the eve of World War II, “There may be dark days ahead,” but the industry will be back, and I think it will be back quickly.
Before long, customers will be back. Showrooms will turn their lights on again, and sales will rise.
The question is, will you be ready?
The downtime is your time to make sure you have everything in place for when the good times return. Do you have all of your customers and prospects in your CRM? Are you using a useful data mining tool to help you attract your customers back to your store? After all, it’s cheaper to retain an existing customer than attract a new one. What about your inventory? Are you stocking the most profitable vehicles for your lot?
Now, more than ever, it is your opportunity to be ready for when the people come back.
If you haven’t, or if you’re not sure, operators are standing by. It never hurts to call us and see if you’re ready. We’d love to help you.
Patrick Mendoza serves as director of corp. communications for DealerSocket, Inc. Email him at [email protected]
By Gregory Arroyo
Pictured is the showroom of Soave Automotive Group’s Mercedes-Benz of Kansas City, Mo.
Soave Automotive Group, a multi-rooftop operation serving the greater Kansas City area, was off to a solid year, with sales and service profitability outpacing 2019 through February and no sign of that momentum wavering. That was before local health officials delivered two COVID-19-related orders within a period of six days.
The first, which ordered the closure of all social venues like bars and restaurants on March 17, left Kristopher Nielsen unfazed. As Soave’s eCommerce and customer experience manager, he was on the line that day with DealerFire’s design team to get the group’s response to the Coronavirus pandemic online and out to its markets.
“We have no plans to scale back our ad budget,” Nielsen said. “We’re not going to have a knee-jerk reaction. I think there are real opportunities to gain market share in this difficult situation.”
Ready for Anything
The forward-thinking steps the group has taken over the years to button up its operations and virtual presence was the reason for Nielsen’s optimism. He felt especially positive about the integration between the group’s DealerFire websites and DealerSocket’s CRM.
The connection allows him to see how many website visitors a campaign generates, which vehicles they look at, time on site, and then alerts his teams when those customers return — critical capabilities in the weeks ahead.
Nielsen also feels good about the group’s online service scheduling and fully online purchase process, which had generated robust engagement in the 90 days prior to his call with DealerFire. The newest addition to Soave’s websites is DealerFire’s test-drive delivery scheduler, which Nielsen added as part of the provider’s 100-day free use offer.
All three shopper experiences would get calls to action on the landing pages he wanted DealerFire to build to house the group’s COVID-19 response. The main message was that Soave Automotive’s dealerships were open and ready to help.
Promoting those landing pages would be an email campaign, press release, announcement bars on the group’s homepages, and the same SEO content strategy Soave had perfected since partnering with DealerFire in 2010. “The biggest thing for us is checking in on customers and orders coming in,” Nielsen said. “We’re contacting customers reaching the end of their leases. They’re going to need a car regardless of what’s going on in the world.”
Stay the Course
Soave was closing out a lighter than usual but still productive weekend when the second health order was issued. This time, all non-essential businesses were ordered to close on March 24 to stem the spread of the virus, which has infected more than 700 people in the Kansas City area. Dealership service departments could remain open, but sales were limited to appointment-only.
Nielsen said the shoppers who visited his group’s showroom that weekend were especially motivated to buy. Online traffic remained relatively stable, but lead and contact volume declined. Service capacity also declined, as customers opted against non-critical repairs.
Pictured is one of the COVID-19 landing pages DealerFire created for Soave Automotive.
“We’re actually still on track with last year, but January and February were very strong,” Nielsen said. “We’re now going to give back some of those gains.”
As for inventory, Nielsen said the group is keeping in touch with manufacturers as production shuts down. The group wasn’t concerned about being oversupplied, Nielsen noting that Soave has enough vehicles on the ground to get through April.
“A rising tide lifts all boats. Only when the tide goes out do you discover who’s been swimming naked,” Nielsen said. “We recognize that all we can control is how we react. So we’re trying to stay positive and plan as best as we can for where things may go.”
By Gregory Arroyo
It hit me like a ton of bricks. I drove to my son’s school this morning to pick up his tablet for virtual learning. I was excited to get out of the house, but the reality of today’s situation hit me when I saw masked and gloved teachers approach my vehicle to hand me his tablet.
Great leaders always seem to rise to the occasion, and those teachers were doing just that.
I’ve also witnessed great leaders emerging in dealer showrooms. We’ll be featuring them in our new “Inside the Dealership” series, but I’d like to share some tidbits from those interviews as well as notes I’ve jotted down from the social media groups to which I belong.
No Plans to Scale Back
You got to love car people. No matter the situation, you’ll never hear fear in their voice. I say that after listening in to a call between DealerFire’s design and content team and Kristopher Nielsen, who serves as eCommerce and guest experience manager for Kansas City’s Aristocrat Motors.
“We have no plans to scale back our ad budget,” he said firmly. “A rising tide lifts all boats. Only when the tide goes out do you discover who’s been swimming naked.
“We’re not going to have any knee-jerk reactions,” he continued, “because I think there are real opportunities to gain market share in a difficult situation.”
What he was referring to is the shopper conveniences his group offers, including the group’s fully online purchase process, online service scheduling, and at-home test-drives. All three of those offerings got calls to action in the group’s email, landing page, and other marketing pieces detailing the operation’s response to the coronavirus pandemic.
Top-Down Leadership
Then there’s Honda of Cleveland, Tenn., which had an action plan in place the day before Tennessee Gov. Brad Lee declared a state of emergency. That plan was delivered by Brad Cobb, president of Bowers Automotive and owner of Honda of Cleveland. He first shared it with the dealership’s general manager, who shared it with his managers, who shared it with their teams.
“The key has been the communication from the top,” Hailey says. “We’re respecting what’s going on, but we’re not fearing it. We just want to keep things positive.”
Mixed Reports
Overall, it seems at-home test-drives are top of mind, at least on social media. While I try not to plug my company’s products, I feel compelled to share that DealerFire will offer free use of its test-driver delivery scheduler for 100 days to owners of a DealerFire website who also use DealerSocket’s CRM. Click here for details.
News regarding showroom traffic seemed mixed. Some car people reported a business-as-usual sales weekend, while others reported cancellations and empty showrooms. Things seemed to turn a bit as the week progressed, as I began seeing posts about dealers adjusting employee schedules. One post indicated that the dealer was letting employees walk with the promise that the dealership would hire them back once the crisis subsides.
It’s only been Week One of this social distancing, and I can’t fathom what’s to come. My heart and thoughts go out to my commission-based friends manning showrooms and F&I offices. Hey, we got this.
As my friend “Mad” Marv Eleazer likes to say, good luck and keep closing.
Gregory Arroyo is the former editor of “F&I and Showroom” and “Auto Dealer Today” magazines. He now serves as senior manager of strategic content for DealerSocket. Email him at [email protected].
By Gregory Arroyo
Remember the period between late 2007 and 2009, when the housing crash that caused the credit crisis led to the Great Recession? The market was tough to read, and the used-car guides were all over the map.
Dealers that bulked up on big trucks and SUVs were stuck with a lot full of them, as gas prices reached $4 a gallon and finance sources tightened up. Any car buyer with below-prime credit couldn’t get approved, as banks weren’t sure where car buyers — particularly those with investment properties — would land and finance companies were dead in the water.
The good news right now is we’re not experiencing any of those market dynamics. But news surrounding COVID-19 (a.k.a. the Coronavirus) has certainly heated up in recent days.
Hearing about Tom Hanks was disconcerting. So was hearing about the National Basketball Association’s decision to suspend the season, after Utah Jazz center Rudy Gobert became the first major professional athlete to test positive for the virus. Now his teammate, star Donovan Mitchell, has tested positive.
As of March 10, there have been at least 116,000 coronavirus cases worldwide. About 64,000 people have recovered, and 4,000 have died. Here in the United States, multiple states are under a state of emergency.
With all that said, the one thing I love about this business is how opposed it is to doom-and-gloom talk. In fact, just yesterday, the founder of a car dealer Facebook group I belong to urged all admins not to allow panic to take over the group.
“I don’t want negative talk about this affecting us,” he wrote.
It made me think of this great line from the first Avengers movie: “Until such time as the world ends, we will act as though it intends to spin on.”
Hey, consumers who need a new car (or used) today will still need it tomorrow. Still, it’s not business as usual, so preparation is vital.
So, if you’ve loaded up with inventory the past couple of months to take advantage of tax season, monitoring aging will be key. And if you’re part of a group that engages in group trading, it’s time to dig into your inventory management systems to ensure vehicles are on the right lots. It’s not time to panic, but you should have exit plans in place.
I recall a story told to me back in 2009. A dealer in the Northeast took on a bulk of pickups in trades just before things got bad. Having dumped $5,000 to $7,000 into the vehicles, he refused to take a loss at auction when things did — even though he was losing money each day those vehicles sat on his lot. His patience was rewarded, however, as he ended up grossing $2,000 to $5,000 by waiting out the storm for a couple of months. Americans do love their trucks and SUVs.
You also need to fire up that CRM. Hey, you know you have customers reaching the end of their finance, lease, or warranty term. Vehicles also need to be serviced. Maybe it’s an excellent time to offer free service pickup and return.
And if you’re a dealer that dipped your toe in the digital retail waters — or maybe offer test-drive deliveries — today’s uncertainty represents an opportunity to really test those strategies.
So, start promoting those customer conveniences, and make sure your digital retail button stands out. In other words, remove any conflicting calls to action on your vehicle details and dedicated landing pages. Banner promotions on your search results pages and VDPs are a must.
Now, when it comes to your employees, I suggest not sticking your head in the sand. Management teams need to get educated on this virus, and communication will be critical. Care also needs to be taken when it comes to the cleanliness of your showroom, employee offices, and common areas.
With all that said, here’s what I do know in all this uncertainty: Every time this business faces a severe hardship, it always seems to come out the other side a better industry. I’m sure that will be the case once again.
Gregory Arroyo is the former editor of “F&I and Showroom” and “Auto Dealer Today” magazines. He now serves as senior manager of strategic content for DealerSocket. Email him at [email protected].