Future Trends – DealershipNews.com https://dealershipnews.com Automotive News You Can Use Mon, 18 Jul 2022 19:51:53 +0000 en-US hourly 1 https://wordpress.org/?v=5.6.12 https://dealershipnews.com/wp-content/uploads/2017/11/cropped-DSNLogo-Mobile-32x32.jpg Future Trends – DealershipNews.com https://dealershipnews.com 32 32 158686725 Data Breaches Can Cost Dealerships Millions in State Fines and Lawsuits https://dealershipnews.com/2022/07/data-breaches-can-cost-dealerships-millions-in-state-fines-and-lawsuits/?utm_source=rss&utm_medium=rss&utm_campaign=data-breaches-can-cost-dealerships-millions-in-state-fines-and-lawsuits Mon, 18 Jul 2022 19:43:23 +0000 https://dealershipnews.com/?p=48130 Ken Hill is the Managing Director of 700Credit, the largest provider of credit and compliance products in the automotive industry. During his 12 years with 700Credit Ken has been responsible for the leadership and growth of the company. In 2007, Ken started with 700Credit when they had a respectful 700...

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Ken Hill is the Managing Director of 700Credit, the largest provider of credit and compliance products in the automotive industry. During his 12 years with 700Credit Ken has been responsible for the leadership and growth of the company. In 2007, Ken started with 700Credit when they had a respectful 700 customers and 5 affiliate partners. Fast forward to 2019 and 700Credit is now the largest in the industry, providing credit and compliance solutions to over 11,000 automotive dealerships, and integrating with 150 affiliate partners.

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Is the Computer Chip Shortage End In Sight? https://dealershipnews.com/2022/06/almonty-industrys-ceo-lewis-black-breaks-the-chip-supply-matching-demand-down-to-a-specific-time-frame-but-geo-politics-aint-so-specific/?utm_source=rss&utm_medium=rss&utm_campaign=almonty-industrys-ceo-lewis-black-breaks-the-chip-supply-matching-demand-down-to-a-specific-time-frame-but-geo-politics-aint-so-specific Mon, 27 Jun 2022 14:42:49 +0000 https://dealershipnews.com/?p=48119 Almonty Industry’s CEO Lewis Black Breaks it Down to a Specific Time Frame – But Geo-Politics Ain’t so Specific

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Almonty Industry’s CEO Lewis Black Breaks it Down to a Specific Time Frame – But Geo-Politics Ain’t so Specific

Lewis
Well, I just like to say my bold prediction is that by the end of q/4 ’23, I think you’re going to see the whole semiconductor business start to stabilize.
 
Kelly
That’s good news. So where do you think automotive interests will start seeing some new deliveries? Maybe 2020, late 2023 2024.
 
Lewis
I would say you’ll start to see some normalization after the summer of next year. I think that’s when you’re going to start seeing it settled down a little bit.

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Will Environmental Issues and Lack of Political Will Keep the Supply Chain of Semiconductor Chips In Enemy Hands? https://dealershipnews.com/2022/06/environmental-issues-and-lack-of-political-will-drive-supply-chain-of-chips-into-enemy-hands/?utm_source=rss&utm_medium=rss&utm_campaign=environmental-issues-and-lack-of-political-will-drive-supply-chain-of-chips-into-enemy-hands Mon, 20 Jun 2022 12:32:42 +0000 https://dealershipnews.com/?p=48115 Environmental Issues with US Mining and Politics The Lewis Black of Almonty Industries Interview Kelly So let’s talk about the fun stuff. And that would be mining in the United States. And there needs to be a political will. But I would assume that there also has to be environmental...

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Environmental Issues with US Mining and Politics

The Lewis Black of Almonty Industries Interview

Kelly

So let’s talk about the fun stuff. And that would be mining in the United States. And there needs to be a political will. But I would assume that there also has to be environmental impact studies that need to be annulled. And that’s got to take some time as well. Do they have the testosterone across both sides of the aisle politically here, the United States actually started doing this here in the US? What’s your take on that?

Lewis

No, I don’t believe it’s going to really be feasible for either side, you know, to really get behind this, because ultimately, neither of their bases are pro mining.  Mines had that day, and they’re now seen as a very 19th century kind of, you know, throwback to history. They, you know, there is no appetite to now push domestic mining, you know, yes, there’s regulations. Yes, they’re the, you know, this is normal in every democracy, but they don’t want it in their backyard. I read this thing the other day, about wind farms of Cape Cod, that you have an enclave of people who are very environmentally active. And yet they don’t want to look at the wind farms. 

So it is apparently, according to the candidates who were there, that it’s difficult to land your plane with a wind farm, which, you know, I suppose, is one rationale. But ultimately, you know, I think that really sums it up. There are some communities still in the Appalachians and some communities that are pro mining, but it’s not on a national level. And it’s I don’t think that I think that what we’re looking at, there’s a bill going through now called the Irie shore act, where it classifies say tungsten as a rare earth. And they’re basically saying that if you’re in the defense contractor business in the US, you can’t use Chinese sourced rare earths and that includes manganese, lithium and tungsten, and then all the rare earths 17 of them, that I can’t even pronounce the atrium and the opium and, and so on. 

But it also talks about stockpiling commodities, strategic minerals and government offtakes, and I think that’s the direction they’re gonna go. They’re going to basically say, Look, you know, you’ve got to build it, where we can see transparency. But we’re not going to say you should build it here. We’re just going to say, here’s a government contract, if you meet these conditions of ESG, we’ll buy for you. And I think that’s probably the most creative approach they can take.

Justin

Yeah, so Louis, a little bit lighter of a question, how much earth do you have to move to get enough tungsten to make, let’s just say, one semiconductor and I know you’ve already mentioned they’re very, very small.

Lewis

Well, I mean, to be honest, not a huge amount. Because we use, you know, the Tungsten is used in a semiconductor is crushed down to a nano sized fraction, which is then injected into a gas because you can’t smelt a tungsten. And then the gas is pumped into each semiconductor, the coat on a microscopic level, a coating of tungsten, because one it’s very conductive. And secondly, it dissipates heat. So you don’t have to worry about, you know, a cobalt in anodes, they combust you know, a battery can go up and it burns, what 48 hours, you put tungsten on that same anode, it’ll get as hot as the sun and it won’t smelt,the temperature of the sun, it will smelt tungsten, but noncombustible. So it can take the heat. So you don’t need a huge I mean, the entire planet, we only produce about 90,000 tons a year of tungsten. That’s it. So it’s very dense, same density as gold. But we don’t mind. We don’t move a lot of Earth.

Justin

When a mine is kind of fished out, so to speak. Is there a reclamation process that you guys do around the globe? I know you have mines elsewhere, and I would assume that that process would be different in the United States due to our regulation. Can you elaborate?

Lewis

You’re working in a democracy, that’s all pretty much the same thing. Yeah, yeah, it’s, it’s, you know, you have certain, you know, different like in Canada, for instance, now you have first nations as well and have to be consulted. In Australia, you have indigenous Aboriginal people. So you have these additional layers, but ultimately, in terms of reclamation, environmental compliance, the international standards are just that now that they’re pretty much across the board. I think the main difference in the US is that even if you comply with all of the regulations, and all the laws that exist, you can still run into trouble if the political will is against you. So there’s the legal framework in the United States, there’s also the emotional framework and that can also impact you so that’s something to also consider in the US.

Justin

Yeah. So which has more impact on the land is it oil drilling, strip mining? What what has more impact on the environment?

Lewis

Strip mining. I mean, you know, drilling for oil is your drilling drill, it’s a hole and they kept the hole after you finished and that’s the end of it. When you strip mine, I mean, we hard mine, we strip mine, the strip mine, you have to when you finish, you have to fill in the hole. It’s a big hole. But in that time where the hole exists, it’s very visible. The mining in South Korea is underground. And we’ve developed systems where we put all of our waste and all of our tailings back on the ground. So that we know evidence that we’re there. And that’s the future. But strip mining has a lot more of an impact on the environment. Well, optically, environmentally.

Kelly

Yeah. So that’s a big nay nay. So um, I, for one, I’m in favor of the bill. I’d like to see it actually increased the amount of money that we put towards some of the most absurd things that just defies logic. Our dependence on China is ridiculous. It’s costing jobs. It’s blowing up prices left and right. And if we have the ability to eat more of the semiconductor pie, we may as well open our mouths. That’s the way I look at it, though.

Lewis

You  in the United States are the biggest consumer of semiconductors? I mean, it’s a classic example of how globalization has put everyone sort of, you know, in a precarious position, the US consumes more semiconductors than anybody else. And yet, you really don’t produce any semiconductors. But that doesn’t really make an awful lot of sense. But then you can say that about many, many industries. I mean, the car sector in the in the Europe right now, they have problems with wiring looms that you know, they have companies that make the wiring looms and then ship them to the cloud plants have installed, they have problems because over the years, they’ve been pushing that the subcontracting that out further and further east because they’ve been following the cheap labor and then are done by Ukraine. Of course, now Ukraine is rather busy to be making wiring looms for Volkswagens. So you know, you have, you know, car plants that are sitting idle because there’s no other, they don’t have anyone else right away that can now replicate that job. So I think this is probably a good wake up call to say, You know what, globalization is a wonderful idea, but you’ve got to remember, sometimes chasing, you know, the cheap route can cost you a lot more in the long run.

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Cultural Considerations and the Art of Hiring (Part One) https://dealershipnews.com/2019/06/cultural-considerations-and-the-art-of-hiring-part-one/?utm_source=rss&utm_medium=rss&utm_campaign=cultural-considerations-and-the-art-of-hiring-part-one Wed, 26 Jun 2019 20:11:02 +0000 https://dealershipnews.com/?p=30671 As this country becomes more diverse, more polarized, and more tribal, hiring an effective workforce has become a major challenge many are not overcoming. If you’re a car dealer, the issue is even more magnified because it’s so hard to find talent to begin with. Assembling a group of employees...

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As this country becomes more diverse, more polarized, and more tribal, hiring an effective workforce has become a major challenge many are not overcoming. If you’re a car dealer, the issue is even more magnified because it’s so hard to find talent to begin with. Assembling a group of employees that can harmonize with each other like instruments in a symphony and reflect the prominent demographic groups in their PMAs isn’t all that easy. Someone is always out of tune and that affects the overall performance of the company. 

 

 

There are few teams, companies, or organizations that don’t have a proverbial cancer in the locker room, or malcontent in the workplace. Bad vibes spread like all waveforms inevitably do. Some resonate at a higher frequency than others, some have detrimental effects, and some lead to positive change and better harmony. The challenge is in managing the physics of energy and understanding how human interactions are affected by that energy and differing cultural belief systems.

 

 

 

Cultural Elements Should be a Major Consideration in Team Building 

Smart hiring practices begin by understanding the cultural demographics and variants of your primary or designated market area. It’s essential to find sales and service talent who reflect the cultural and demographic makeup of your market area. Having the luxury of being able to cherry pick sales and service talent is rare unless of course you’re a dealer selling high-end. Rusnak Porsche for example, is outstanding at promoting from within and maintaining a dedicated employee base with a low turnover rate. They cater to wealthy Porsche owners in a majority white neighborhood and their forward facing staff reflects it. A steady, stable demographic in Westlake Village, CA area is reflected in the faces of the dealership’s staff and they do very well.

 

 

If I’m in an Asian or Spanish neighborhood, I have to take a serious look at who I’m going to hire to cater to that customer. Like all ethnic or like-minded interest groups, people “tend” to want to buy from those they feel most comfortable with. This can mean that language, and shared culture or beliefs play an important part in a customer’s comfort level in buying from your dealership.

 

 

Of course, understanding the nuances of each Asian or Spanish culture is essential when considering hiring strategy. Cuban, Puerto Rican, Mexican, and Colombian all have many linguistic nuances and dialects. Just “speaking Spanish” helps but without that culture-specific link, it’s not as effective. My wife is a Korean and Japanese mix. When she visits a market and starts to speak in Japanese to a Japanese person, she gets a discount or extra quantity added to her purchase. The same can be said when she speaks Korean. Both cultures tend to look out for one and other. However, when she speaks english those benefits do not manifest. We went to a car dealership years ago and she was attended to by a sales guy from a middle-eastern background. This sales manager was aggressive, pushy, and condescending in her view. In my opinion, he was just a stereo-typical, type-A car salesman that had no idea how to change his tact based on the potential for the inevitable culture-clash that eventually transpired. 

 

 

He was unable to shadow her effectively to win her as a customer. She ended up throwing her sweater at him in full rage mode. Would that dealership have had a better chance of closing a deal with a Korean or Japanese salesperson? What if they had a female salesperson, or perhaps a well-trained person who understood the nuances of selling the right way?  Maybe “selling” is the wrong approach to begin with for certain cultures.

 

 

 

The Concept of Tribalism is at Play

There are 40 Asian countries and all except Singapore, speak their own language. All the factors of tribalism are at play between many of them. In the business world, it’s largely unspoken, but as mentioned before, people of similar background tend to favor one and other. This goes for interests as well. Being an Ohio State Buckeye, who would I rather buy a car from a former Michigan grad, or a fellow Buckeye? If you’re conservative, how would you feel about walking into a sales office festooned with pictures of Hillary Clinton?

 

 

What if I were Muslim and the sales rotation synched me up me with an Orthodox Jewish salesperson or visa versa? How smooth would the sales process go if someone from Texas  was approached by a fast talking New York sales jock? In those 4 examples, you have to admit that the chances for a deal closing are handicapped at the very least. The natural inclination for most buyers is to find a point of reference, common ground, or an angle of negotiation when money is to be transacted. It’s not just price for some, rather it’s an emotional reflex that’s the deal maker.  Many of us don’t judge people, but it’s also a fact that many of us do, and we trust our own.

 

 

Would the chances of a transaction be better if there was a better match between backgrounds? What if sales staff or service advisers had a better feel for cultural or ethnic nuances. What if they could better mirror the people they come in contact with on a daily basis, would that improve their chances to win customers who can relate to them and thereby trust them?

 

 

 

You Can Never Have a Diverse Enough Staff to Cover All Bases

It’s tough enough finding good sales and service staff to begin with let alone a team that perfectly matches the ethnic and cultural diversity of some PMAs. Add tribalism and personal politics to the mix and you have an even greater challenge. Although people instinctively gravitate to people they can relate to, there is a way to overcome these natural and acquired biases, and optimize your business performance without having to interview hundreds of candidates.

 

 

 

The Solution

The answer is more complicated than a simple yes or no. There are a lot of amazing sales training consultants in the automotive industry. None that we know of offer training of any kind regarding the potential challenges of matching buyers with those that best reflect their backgrounds, belief systems, and even biases. 

 

 

In lieu of finding the perfect date for everyone that walks into your store, there are things you can do to make potential and current customers and staff get past their natural biases.

 

 

 

Focus Externally, Not Internally

Keep your staff focused on team goals, not on each other’s personality quirks, cultural traits, political beliefs, or ethnicities. Everyone isn’t going to get along. Have a low tolerance for gossip, dissent, and back-stabbing. The key is to establish a focus that is external, radiating out into the community and not into the inner workings and politics of the store. The dealership should have easily attained goals with some form of payback that rewards staff for unity and group effort. Use the diversity within your organization to school the others how to best relate to their specific background or belief system. Always be learning, always be closing.

 

 

 

Embrace Acculturation

Encourage your team to venture out to meet people and experience diverse activities within your PMA that helps them create bonds, or points of reference with people from other walks of life.This can be an Oktoberfest, Chamber of Commerce ribbon cutting for a new, minority-owned business, or involvement in an ethnicity or religiously-based charity campaign of some kind. Most communities have plenty to choose from. 

 

 

Learn the language of your markets predominant minority. You don’t have to be fluent, but to simply learn the basics of a 2nd language impresses native speakers a lot. I did this with Japanese and it’s always met with a smile and appreciation. Showing that you can relate to those within your PMA and developing those crucial points of reference, even if you look and think differently, will eventually endear you into the communities that are likely to shop in your store. It’s a process of acculturation, and it works. 

 

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Personalize Their Online Vehicle Shopping Experience for a Winning Opportunity https://dealershipnews.com/2019/06/personalize-their-online-vehicle-shopping-experience-for-a-winning-opportunity/?utm_source=rss&utm_medium=rss&utm_campaign=personalize-their-online-vehicle-shopping-experience-for-a-winning-opportunity Wed, 19 Jun 2019 16:34:55 +0000 https://dealershipnews.com/?p=30488 For years, the goal of automotive professionals was to find a way to leverage an online environment that would entice and incentivize car shoppers into walking into a showroom so that they could “start” their journey with their salesperson.   This online environment focused on inventory, and car build-outs online,...

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For years, the goal of automotive professionals was to find a way to leverage an online environment that would entice and incentivize car shoppers into walking into a showroom so that they could “start” their journey with their salesperson.

 

This online environment focused on inventory, and car build-outs online, and filling out forms that would alert a sales team of an interested customer so we could “capture the lead”.

 

The process wasn’t very personal, but it took advantage of an online ecosystem where shoppers were just beginning to get comfortable. As consumers, we hadn’t yet reached the “Amazon Effect”, where we order almost everything online and expect it on our doorstep the next day.

 

Today is a different environment. Customers ARE ordering virtually everything online, and they ARE expecting it on their doorstep the next day. Buying a car is admittedly a little more complex – and emotional – compared with buying laundry detergent and cat food, but car shoppers are craving the chance to merge the two worlds even more closely.

 

This is where digital retailing comes into form. However, in order for digital retailing to truly happen in automotive, we as an industry need to leverage more sophisticated data sets combined with an ultra-personalized shopping experience that creates a successful customer journey resulting in a sale, and setting up the opportunity for another sale in the future – a process that happens when trust is present.

 

The first step in creating a more personalized shopping experience is knowing each individual customer more intimately. Data technologies today allow us to accomplish this – and it’s proven to be effective.

 

 

With the right knowledge we can gather about each customer’s desires and needs, gathered through data tools in use today, we can help dealers and lenders create a more personalized journey for their customers.

 

 

A recent survey commissioned with the help of Jabian Consulting confirmed that dealers and lenders both realize more consumer education and access to data earlier in the process will help enhance the vehicle-shopping journey.

 

As a result of this knowledge, both franchise and independent dealers want the power to learn consumer behaviors by engaging as soon as possible, especially online, and also leverage consumer information and habits that ultimately help drive a successful transaction.

 

Similarly, dealers and lenders today are looking to engage with a customer before they walk into a showroom by leveraging more targeted marketing in a cost-effective manner to better match customers with vehicles during the research process. This will ensure the right inventory and financing options are available when the customer arrives at the dealership.

 

This earlier insight into the customer before the transaction phase will result in more confidence for the consumer as they get deeper into the “funnel”. Dealers recognize the importance here as well and they know a customer educated earlier on in the process enters the showroom under a less adversarial environment with fewer negative perceptions or inaccurate information.

 

This is critical, because whereas five years ago online car shopping was focused primarily on building the car, today’s digital retailing is more focused on building the deal. In order to build the right deal, we need to know more about the customer than just their favorite color.

 

With the right knowledge we can gather about each customer’s desires and needs, gathered through data tools in use today, we can help dealers and lenders create a more personalized journey for their customers.

 

For example, it is understandable to think that not all Millennial and Boomer car shoppers will want the same kind of car. But depending on their specific credit histories and other trackable financial data, they won’t qualify for the same loan or lease terms, either.

 

The earlier in the process we can buildout these specifics, the stronger the potential for a successful digital retailing experience at that dealership with a particular lender.

 

 

Editor’s Note: Jennifer “Jenn” Reid is Vice President – Automotive Marketing & Strategy Lead – U.S. Information Solutions (USIS). With nearly two decades worth of experience in automotive on dealer, lender and information services sides, Reid is responsible for the development of Equifax’s automotive growth strategies, as well as overseeing specific marketing plans and initiatives. This includes understanding competitive automotive industry market dynamics and trends, key customer insights, new product innovations, and pricing and chancel strategies.

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Flick Fusion Reveals Full Motion Walkaround Videos are Fastest Growing Video Products https://dealershipnews.com/2019/06/flick-fusion-reveals-full-motion-walkaround-videos-are-fastest-growing-video-products/?utm_source=rss&utm_medium=rss&utm_campaign=flick-fusion-reveals-full-motion-walkaround-videos-are-fastest-growing-video-products Tue, 04 Jun 2019 18:57:19 +0000 https://dealershipnews.com/?p=30223 The post Flick Fusion Reveals Full Motion Walkaround Videos are Fastest Growing Video Products appeared first on DealershipNews.com.

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Urbandale, IA—June 4, 2019—Flick Fusion Video Marketing’s internal data reveals that full-motion walkaround videos are the fastest growing video products among auto dealerships in 2019. As a percentage of total video views that consumers have watched on dealership websites, social media platforms and third-party auto shopping sites, full-motion walkaround video views have risen 20% in Q1 2019 compared to Q1 2018.

 

In Q1 2018, 15% of all inventory videos viewed were full-motion walkaround videos, compared to 85% of inventory videos that were stitched-photo videos. In Q1 2019, full-motion walkaround videos accounted for 18% of all inventory video views, while the remaining 82% of video views were stitched-photo videos. In Q1 2017, just 11% of inventory video views were full-motion walkaround videos.

 

“I BELIEVE THE PRIMARY REASON FOR THIS INCREASE IS BECAUSE MORE PEOPLE ARE SEEING THE SIGNIFICANT IMPACT THAT FULL MOTION WALKAROUND VIDEOS HAVE ON THEIR SALES,”

 

“I believe the primary reason for this increase is because more people are seeing the significant impact that full motion walkaround videos have on their sales,” said Tim James, COO of Flick Fusion. “However, I want to caution dealers that before you run out and sign up for a full-motion video package, make sure that you or your lot services provider is able to produce professional-quality videos.”

 

To determine which type of video is best for your dealership’s video marketing program, James recommends paying attention to view rate. Stitched photo videos have an average 70-75% completion rate, while some full-motion videos only have a 20% completion rate. “If the video is amateur quality, shot with a smartphone without a stabilizer and the audio is bad, you’re better off sticking with stitched photo videos until your full motion video production process is improved.”

 

Flick Fusion’s data reveals that it’s the use of any video that’s the driving factor, and that both stitched-photo and full-motion videos are important to increase website conversion rates. In fact, James notes that when a dealership first switches from using only inventory photos to stitched-photo videos on their VDPs, the website visitor engagement rate spikes significantly. So, if a dealership doesn’t have a process in place, or if their photography company doesn’t yet offer full-motion videos, stitched-photo videos are still a better option than inventory photos alone.

 

More important than the type of video is the exposure of the video. “What baffles me the most is when I see someone shoot a great full motion walkaround of a vehicle to post to their Facebook page, but then don’t have that same video syndicated to their website and 3rd Party listing services to improve their merchandising of that vehicle on those sites,” said James.

 

“That same vehicle is going to get just as many, and probably a lot more, views on these other sites than it will get on their Facebook page, but they won’t take the time or use the right technologies to get that video working for them across all of their online marketing touch-points,” he added. James recommends that if someone is going to take the time to shoot a full motion walkaround for one touch-point, ensure that video is used across all online marketing touch-points.  “Your efforts will be rewarded 10X,” said James.

 

Another benefit to investing the time to shoot Full Motion Inventory Videos is that you can repurpose those existing videos for Personalized Walkarounds.  Many sales & BDC professionals want to shoot Personalized Walkaround videos for their leads; however, it can be a time-consuming process and the weather doesn’t always cooperate. With today’s technology, lack of time and weather conditions are no longer excuses to not make videos.

 

“Shooting Personalized Walkaround videos can be a 15- to 20-minute process on a good day, but what if it’s raining, snowing, hot, or cold outside,” said James. “With today’s technology, you can simply take an existing Full Motion Inventory Video, click on a button and record a personalized, custom voice over on top of the existing video. It takes about two minutes, is done from the comfort of your desk, and you’ll see a massive increase in your lead follow-up response.”

 

For more information contact sales@flickfusion.com or 515-333-4337.

 

 

 

About Flick Fusion

Flick Fusion offers a full-solution video hosting, marketing and distribution platform to automotive and other inventory-based industries. The platform delivers automated, integrated and rule/behavior-based, including geo-targeted, video content in real-time, across multiple touchpoints and throughout the entire purchase cycle.

 

Flick Fusion makes it easy for dealers to create desktop and mobile-friendly vehicle inventory videos, video email and customer engagement videos such as testimonials, service department overviews and more. Videos are proven to capture more buyers’ attention, advance organic SEO rankings, generate leads and increase conversion rates. The Flick Fusion system builds emotional value and customer loyalty for more than 3,500 brands and preferred partners.

“I believe the primary reason for this increase is because more people are seeing the significant impact that full motion walkaround videos have on their sales,”

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5 Ways to Gear Up for Summer Sales Success https://dealershipnews.com/2019/05/5-ways-to-gear-up-for-summer-sales-success/?utm_source=rss&utm_medium=rss&utm_campaign=5-ways-to-gear-up-for-summer-sales-success Thu, 09 May 2019 19:10:05 +0000 https://dealershipnews.com/?p=29949 We all love those busy summer months in the car business! The sizzling season brings all sorts of fun such as increased lot traffic, higher expectations for you and your team from bigger OEM sales quotas! The extra business creates fourteen hour work days, all the while half your sales...

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We all love those busy summer months in the car business! The sizzling season brings all sorts of fun such as increased lot traffic, higher expectations for you and your team from bigger OEM sales quotas! The extra business creates fourteen hour work days, all the while half your sales team are planning family vacations at the same time. You’re trying to keep inventory levels at sellable numbers all the while book values lag and what it takes to buy the inventory isn’t aligned to reality. Tent sales and the like creating logistical nightmares. Sweltering service departments make for surly technicians. To top things off, customers who bought used cars in February are returning to get their AC fixed or their batteries replaced that fried like an egg on the summer asphalt of a buy here pay here lot.
After successfully facing down a decade worth of sweltering summers in the St. Louis sun, I want to help you plan and gear up for summer sales in the car business! Here are just a few ways you can prepare for the summer at the dealership and beat the heat, and your competition!
  1. Keep hot customers cool when you preemptively address common service complaints
    A couple of things can break when the thermometer breaks into the ’90s at the dealership. These breaks often lead to undeniably frustrating customer service issues that not only damage your dealership’s reputation but also distract you from working on new opportunities. Bad batteries and AC units in cars serviced and untested from winter. Instead of waiting for your annoyed or even angry customers to come demanding that you fix their problems do this! Review each salespersons list of used car sales from about October through March. Have the salespeople call each person on their list and say something like, “Mr. Winter buyer, I’m calling you to make sure your battery is prepared for the summer months and that your AC is blowing cold. Sometimes when cars are serviced in winter, it’s hard to test the air conditioner. Any chance you can swing by and I can have your battery tested and ensure your AC is fully charged?” When the customer shows up, use this as an opportunity to ask for referrals, share their experience online. Pre-emptively address any of these inconveniences on your time, turning a negative into a positive for you and your customer.
  2. Do spring cleaning on your inventory.
    Your cars have been abused all winter long. Employees and customers have been getting in and out of them tracking salt, snow slush, and mud from their shoes all up in your cars. Conduct a detailed and thorough inventory where you get in each car, inspect it for the following: Does it start? Is the interior caked in mud? Does the AC work? If you’re feeling super ambitious, you may even want to drive them around the block to knock the rust off the rotors. After all the spring rain, a vehicle not driven can sound like fingernails on a chalkboard, scaring away potential shoppers.
  3. Revisit your internet pricing like you would your family on Easter.
    Due to the spring tax time business, many dealers are hoping to the auction to replenish inventory and stock up for summer. Also, dealers may have a fair amount of distressed inventory that perhaps, didn’t work for tax time buyers, or weren’t good “winter” cars. As a result, this can cause auction pricing can become volatile around his time of year which leads to sporadic internet pricing. Revisit your pricing more frequently to ensure you’re priced with the market. You may be pleasantly surprised to see you have cars that are actually UNDER priced! It’s always nice to find a hidden Easter egg within your inventory!
  4. Create a vacation calendar along with your entire team.
    You could wait until your three top salespeople and finance managers all want to head to the beach at the same time to address summer staffing and vacation time. Waiting can be fun if you aim to create a Mad Max and the Thunderdome situation where two salespeople enter, and one person gets to go on vacation. Even worst, your summer sales events could wind up being understaffed limiting your ability to maximize the ROI from your summer months. Instead, have a team meeting and share a calendar with your staff. Give them line of sight to any summer sales events and give them blackout vacation days far in advance. Ensure the new people or your lowest closer is on vacation during the busiest times! (just joking)
  5. Avoid lazy summer days and ensure best practices stay consistent.
    Feast or famine on the showroom floor causes all sorts of time management challenges. During summer, it sure does feel good to be busy. As such, one of the biggest mistakes we make in automotive is throwing our routine out the window. That’s right, I said it… Good business makes us lazy! Best practices often go by the wayside when there are deals to work. Ensure any processes that you’ve adopted throughout any slower months are discussed, scheduled, recommitted to etched in granite, and that people consider the activity changes that occur with more business. Example: More time at the auction buying more cars equals more time stocking in vehicles. Instead of stressing out whoever stocks in the vehicles, have a backup person help with this task. If you took on some training or people development initiative during the winter, ensure this remains consistent throughout your busier months by recommitting.
Summer is just around the corner, and I want for you to maximize every minute of it and ensure you are ready for the business! Do so by preparing your people, your processes and your product. If you can use any of these five tips to be more efficient or effective, then I have done my job as #thecarbizcoach and I ask in return is that you share the article and give us a comment. May your summer be filled with many fun and fulfilling opportunities on your showroom floor!
About the author:
Before entering the car business, Sean Kelley believed leadership was the key to ensure his Special Operations team would survive two combat zone deployments. Sean Kelley #TheCarBizCoach has since applied those same leadership principals to automotive management, and successfully led dealers for a decade: lowering turnover, increasing profit, customer retention, satisfaction, and setting first-time regional records. Sean’s passion for coaching and people development led him to become Chief Business Development Officer of DriveCentric CRM where he helped them double their annual revenue. Now, as CEO of Car Motivators and President of Next Sale App in Missouri, Sean and his coaches work with dozens of dealer groups, and hundreds of managers across the country to achieve great results through their people and technology. Sean was ranked 10 in the top 100 sales coaches by Ambition.com. Also, DealershipNews.com voted Sean sales and leadership consultant for 2018. These awards are a result of creating winning cultures at car dealers across the country with his unique self-developed approach to coaching and people development, D.R.I.V.E.C3™. Sean believes that adding value to others is the reason he has elevated into the top 5% of coaches in America.

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Black Book Used Vehicle Retention Index Shows Decline in March https://dealershipnews.com/2019/04/black-book-used-vehicle-retention-index-shows-decline-in-march/?utm_source=rss&utm_medium=rss&utm_campaign=black-book-used-vehicle-retention-index-shows-decline-in-march Thu, 11 Apr 2019 17:45:04 +0000 https://dealershipnews.com/?p=29578 Index Continues To Lose Momentum But Expects Quick Jolt from April Spring Season LAWRENCEVILLE, GA (April 9, 2019) – Black Book, a division of Hearst that provides industry-leading used vehicle valuation and residual value forecast solutions, released its Used Vehicle Retention Index for March (113.8), a -0.6% change from February (114.5)....

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Index Continues To Lose Momentum But Expects Quick Jolt from April Spring Season

LAWRENCEVILLE, GA (April 9, 2019) – Black Book, a division of Hearst that provides industry-leading used vehicle valuation and residual value forecast solutions, released its Used Vehicle Retention Index for March (113.8), a -0.6% change from February (114.5). The Index is 1.7% higher than where it was a year ago (112.0). Click here to obtain a copy of the latest index data.

 

The Index has reflected a late start to the spring selling season, dropping each month since November. SUV’s and Luxury vehicles showed the largest declines in March, with Minivans, Compact to Mid-Size Cars and Small Pickups having modest gains. Market share changes reflect a continued shift away from cars and toward more SUV’s and Pickups.

 

“While the economy continues to expand, higher supply of used vehicles and affordability issues have continued to become headwinds for the industry,” said Anil Goyal, Executive Vice President, Operations. “The spring market is expected to provide a quick jolt to the market during April, but we expect the Index will feel the effects from slower retail demand of new vehicles that could lead to higher incentives.”

 

“The spring market is expected to provide a quick jolt to the market during April, but we expect the Index will feel the effects from slower retail demand of new vehicles that could lead to higher incentives.”

Anil Goyal
Executive Vice President, Operations

 

The Black Book Used Vehicle Retention Index is calculated using Black Book’s published Wholesale Average value on two- to six-year-old used vehicles, as percent of original typically-equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage, and condition. The Index offers an accurate, representative, and unbiased view of the strength of today’s used vehicle market values.

 

The Index dates to January 2005, where Black Book published a benchmark index value of 100.0 for the market. During 2008, the index dropped by 14.1% while during 2016, the index fell by just 6.4%. During 2011, the index rose strongly from 113.3 to 123.0 by the end of the year as the economy picked up steam and used vehicle values rose higher. It continued to remain relatively stable, rising slightly until May of 2014 when it hit a peak of 128.1.

 

To obtain a copy of the latest Black Book Wholesale Value Index, please click here.

 

 

About Black Book

Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. Since 1955 Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst, and the company maintains offices in Georgia, Florida, and Maryland as well as the Canadian Black Book in Toronto. For more information, please visit BlackBook.com or call 800.554.1026.

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Dealership News’ Midday Report – SEMA Show Recap https://dealershipnews.com/2019/03/dealership-news-midday-report-sema-show-recap/?utm_source=rss&utm_medium=rss&utm_campaign=dealership-news-midday-report-sema-show-recap Tue, 05 Mar 2019 19:52:15 +0000 https://dealershipnews.com/?p=28258 Dealership News reports from the SEMA show for those of you who couldn’t make it.

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Dealership News reports from the SEMA show for those of you who couldn’t make it.

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Gear Up for a Slow Grind https://dealershipnews.com/2019/01/gear-up-for-a-slow-grind/?utm_source=rss&utm_medium=rss&utm_campaign=gear-up-for-a-slow-grind Thu, 24 Jan 2019 02:02:01 +0000 https://dealershipnews.com/?p=25031 Tech companies bringing digital retailing to car buyers across the country. A.I. engaging customers in record-breaking response times, even setting appointments. Automotive media has been broadcasting that 2018 was the peak for car sales and there will be a slow decline over the next year. With all these concerns, there...

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Tech companies bringing digital retailing to car buyers across the country. A.I. engaging customers in record-breaking response times, even setting appointments. Automotive media has been broadcasting that 2018 was the peak for car sales and there will be a slow decline over the next year. With all these concerns, there is much uncertainty for people on the showroom floor. If unaddressed, this uncertainty leads to undue stress, lower performance, and even employee turnover.

 

What I want for you as a leader in the auto space reading this article is that you are able to create stability and trust around your business. After reading this article you should walk away with some practical tips to build a solid foundation of trust and certainty, amidst all the concerns. In this way you can drive more activity and employee retention and sales growth, in a sea of uncertainty.

 

Turn the focus inward! 

Reactive business people spend a lot of time and energy focusing on things they can’t controll. As a leader in the auto industry it’s important to acknowledge threats and challenges. Yet, dwelling on such challenges without taking action is a detriment. Ask yourself and your team, “What can I do as an individual to grow the business? What can we do as a team to grow our business? What tools are we not leveraging to their fullest potential that could impact our results?” Posing questions like this will cause you to be proactive, because you will take ownership and action in your success.

 

Create a Mission

As a two time combat veteran who has been part of mission planning and tactical operations, I can’t speak enough to the importance of having a clear objective. After all, until you have a clear mission you can’t build a plan, a contingency plan, nor can you execute on that plan! At the dealership level, “sell more cars” is not a clear objective. Your mission needs to be more specific, and something you can get your team excited about. Ideally it would be a mission that would create the result which leads to the selling of more cars. For instance, you could say our mission is to “Build the strongest relationships with our customers!” Your mission could be to “Create the best possible customer experience  in the industry from beginning to end and ensure the world knows about it!” Missions such as these create the desired result, and are something your people can get excited about and market to potential buyers.

 

Coach Individual Action Plans

A mission with a plan to accomplish it is much more likely to get done! I can’t even imagine what would have happened if, prior to kicking off a combat mission in Bosnia or Iraq, we hadn’t strategically discussed the game plan. Luckily, we would always draw a small mock up of our objectives, review what each elements roles were and delegate individual responsibilities. This clarification of personal expectations and understanding of self responsibilities would lead to discussion on expected outcomes. While planning some outcomes would look grim, we could create a contingency plan. If plan A doesn’t work, we would always have plan B. This leads to confidence, and confidence leads to success.

 

To remove uncertainty it is imperative you first build a team action plan to move the mission forward. In addition, sit down with each member of your team and co-create individual strategies to accomplish the mission. In doing so, they will value the time and effort you are putting into their growth. They will realize the value you are putting on the mission, and them as your people. You will tap into and leverage their individual strengths in this way. When people operate in the realm where they are strong, it creates confidence.

 

Now you’ve turned the focus inward and everyone’s being proactive by controlling the controllables. Your employees are taking ownership and buying into a mission that will impact your results. Finally, you’ve clarified team expectations and individual responsibilities, and everyone has action items on which to accomplish and achieve! All that’s left to do now is enjoy your new found island of confidence, ownership and success in a sea of uncertainty.

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