Tried-and-True: Best Practices from NADA 20 Groups

Tim GavinDealership Consultant, NADA 20 Group610.506.3730| tgavin@nada.org

@timgavin#NADA100

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The views and opinions presented in this educational program and any accompanying handout material are those of the speakers, and do not necessarily represent the views or opinions of NADA. The speakers are not NADA representatives, and their presence on the program is not a NADA endorsement or sponsorship of the speaker or the speaker’s company, product, or services.

Nothing that is presented during this educational program is intended as legal advice, and this program may not address all federal, state, or local regulatory or other legal issues raised by the subject matter it addresses. The purpose of the program is to help dealers improve the effectiveness of their business practices. The information presented is also not intended to urge or suggest that dealers adopt any specific practices or policies for their dealerships, nor is it intended to encourage concerted action among competitors or any other action on the part of dealers that would in any manner fix or stabilize the price or any element of the price of any good or service.

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Agenda

• New Vehicle Sales Ideas and Best Practices

• Used Vehicle Sales Ideas and Best Practices

• Service Department Ideas and Best Practices

• Parts Department Ideas and Best Practices

• One to go home ………

• Questions, Comments, Thoughts

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New Vehicle Sales

• Marketing– The power of your own customers

• The serious bird dog; $500• The silent salesperson• Promotions to your data base• Do it digitally!

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2%

3%

4%

4%

6%

17%

22%

26%

0% 5% 10% 15% 20% 25% 30%

Direct Marketing

Outdoor

Radio

Newspaper

TV

Internet Sites

Family, Friends, Co-Workers

Prior Experience with Dealership

Study: Primary Reason Shoppers Chose The Dealership They Visited*

*Study by Autotrader.com &Northwood University

New Vehicle Sales• Marketing

– The power of your own customers• The serious bird dog; $500

– Dealer reduced all advertising, except bird dogs– Promoted the $500 bird dog to all customers

» At time of new or used car delivery» At time of write up» At time of service delivery» Point of sale in showroom» Facebook page

• The $200 bird dog to service advisors

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New Vehicle Sales

• Marketing– The power of your own customers

• The silent salesperson– Dealer placed flyer on the dash of each car in for service– Dealer placed ¼ page handout on every invoice leaving the

dealership» Parts wholesale customers» Vendors/suppliers» Service customers» Parts retail customers

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New Vehicle Sales

• Marketing– The power of your own customers

• The silent salesperson– Dealer placed flyer on the dash of each car in for service– Dealer placed ¼ page handout on every invoice leaving the

dealership» “We Buy Used Cars!”» “Black Friday Sale”» “Year End Savings”

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New Vehicle Sales

• Marketing– The power of your own customers

• Promotions to your data base– Dealer used the names and addresses in their data base

» Inform» Qualify» Market» Sell

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New Vehicle Sales

• Marketing– The power of your own customers

• Promotions to your data base– Dealer includes all household vehicles in the CRM at time of

delivery– “What other vehicles are in the family?”– Captures; name, address, phone, email, description and VIN if

possible» “We will include them in our data base for any service

department specials….”

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New Vehicle Sales

• Marketing– The power of your own customers

• Do it digitally!– Does your brand vehicles use a start up menu when your first

turn them on?– Is your name/address/phone/website on there?– Why not? It’s everlasting!

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New Vehicle Sales

• Marketing– The power of your own customers

• Gas cap waves “Hello”– Dealer in KY puts a “Thank you for your purchase” with the

dealership’s name, phone and website inside the gas cap door of every new and used car they sell

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Thank You! Happy Motors

Used Vehicle Sales

• Marketing– It’s all in how you look at it!

• The second most powerful marketing/merchandizing tool for pre-owned vehicles:

• Do people driving by know they are used?

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Used Vehicle Sales

• Marketing– It’s all in how you look at it!

• The most powerful marketing/merchandizing tool in a pre-owned vehicle department is your clean up person.

• Is every vehicle showroom ready clean?

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Used Vehicle Sales

• Marketing– It’s all in how you look at it!

• The most powerful marketing/merchandizing tool in a pre-owned vehicle department is your clean up person.

• Is every vehicle showroom ready clean?

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Who is your ‘Beauty Consultant’ that is in charge of your pre-owned “Beauties?”

Who has that daily responsibility?

Used Vehicle Sales

• Marketing– It’s all in how you look at it!

• “A photo is worth a thousand words.”

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Used Vehicle Sales

• Marketing– It’s all in how you look at it!

• “A photo is worth a thousand words.”

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Used Vehicle Sales

• Marketing– It’s all in how you look at it!

• “A photo is worth a thousand words.”

• 360 View

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Used Vehicle Sales

• Marketing– It’s all in how you look at it!– “Inspect what you expect!”

• How often do you inspect the photos on your website?• Do all your employees know what you expect for your

online photos?– Do– Do not– Samples– Order

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Service Sales

• Marketing– Demand for service will continue as the market

flattens– The 3-5 year trailing SAAR rule

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(Source: Lithia Motors Investor Presentation July 2015)

Service Growth Correlated With SAAR Growth

Service Sales

• Marketing– Keep them coming back

• First service appointment at time of new/used car delivery

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Market Trends – 1st Service AppointmentCustomer Intent to Return to Selling

Dealership for Service

Definitely Will Probably Will Probably Will Not Definitely Will Not

Dealership DIDN’Toffer to schedule 1st

Maintenance Visit

Dealership OFFERED to schedule 1st Maintenance

Visit

38%

57%

39% 16%

32%

7%

8%

Source: J.D. Powers and Associates

3%

Service Sales

• Marketing– Keep them coming back

• Introduction log– Service Advisor script

• BDC follow up• Return appointment coupon

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Service Sales

• Marketing– Keep them coming back

• Introduction log– Service Advisor script

• BDC follow up• Return appointment coupon• Free oil filter

– handed to the customer

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Service Sales

• Marketing– Keep them coming back– Multi Point Inspection Form

• What is your process?– Digital?– Graphic?– Timely?

» 15 minute rule» Dual signatures» Initial any declined work

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Service Sales

• Marketing– Keep them coming back

• Reminders– BDC calls turned down MPI recommendations– Windshield stickers

» Oil, brakes, tires, battery– Warning/reminder sticker for customer invoice

– Will it get your attention?

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Service Sales

• Marketing– The digital side

• Do your customers schedule service through your website?

• They want to!

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Customers Do Not Use the Internet for Service Scheduling

(Source: Cox Automotive Maintenance & Repair Study)

Service Sales• Marketing

– The digital side• What does your service department landing page look

like?• Are you using keywords for service in your Google

adword plan?– Tires, breaks, ‘check engine light’, recall

• What is your online scheduling process?• What are your service department specials?• Does your sales staff walk your customers through the

online service scheduling process at time of delivery?

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Are you texting?

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Service Sales

• Marketing– The Social Media side

• Good news– Facebook for service

» Events, specials, car clinics, etc.– Twitter

• The challenge– Customer reviews

» Who is monitoring?» Google, Yelp, Dealer Rater

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Service Sales

• Marketing– 65% of all online activity is now mobile– 50% of mobile activity is through apps

• Does your service department have an app?• Does your dealership push the traffic to the app?

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Parts Sales

• The shop supply vending machine– Gloves, tape, cleaner

• Most common used shop supplies• Each tech has a separate access code• Frees up back counter person• Keeps techs accountable

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One To Go Home….

• The Work Release Porter/Detail Staff– Local minimum security prison work release

• Plenty of staff• Want to be outside, not on the inside• Contract labor at a reduced cost• Great workers• Very motivated

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Questions

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Tried-and-True: Best Practices from NADA 20 Groups

Please visit the NADA Pavilionin the Expo Hall for information on accessing electronic versions

of this presentation and the accompanying handout

materials, and to order the workshop video recording.

Tim GavinDealership Consultant, NADA 20 Group610.506.3730| tgavin@nada.org

@timgavin#NADA100

Your photo here