Every year, automotive industry leaders gather in sunny Florida for the Modern Retailing Conference—a premier event for exploring the future of automotive digital retailing. This year, among the many topics discussed, one stood out: the rising significance of Customer Data Platforms (CDPs).
This year’s NADA conference once again brought industry leaders, innovators, and trailblazers together in Las Vegas. Within the inevitable buzz and excitement that we see year after year at the industry’s biggest event, we noticed a few major themes that remained relevant throughout. Let’s dive into them.
As the dust settles on the changing automotive landscape in 2023, it has become clear that last year was a crucible of transformation and invaluable insights.
Like many retailers and manufacturers worldwide, the automotive industry was heavily struck by the ramifications of the COVID-19 pandemic. With national chip shortages, back-ordered products, late deliveries and dwindled inventory, dealers today were forced to rethink the entire car-buying process from online transactions to proactive vehicle acquisition strategies. However, like many surprise success stories, COVID-19 provided dealers with record-breaking results despite low and scarce new inventory.
So, what has changed in this “profitable dealer’s market,” and how can dealerships stay competitive and continue to reach record profits?
The answer is simple, vehicle acquisition.
Consumer demand is at an all-time high. As vehicle prices rise and inventory declines, over 60% of consumers have admitted to not adjusting their car-buying timeline. As delays in new-car production continue to grow, the market value on high-quality pre-owned cars has increased by almost 45%. To combat market conditions today, dealers can optimize their current car-buying strategy with increased integrated online and offline efforts to ensure they are acquiring new and pre-owned vehicles at the right time, to the right person.
Since 2020, the automotive industry has changed for better or worse. Automotive companies, retailers, and Original Equipment Manufacturers (OEMs) are now forced to rethink the entire car-buying process. Two years later, enterprises and consumers worldwide have felt the pandemic-induced changes firsthand — empty store shelves, back-ordered products, late deliveries, and dwindled inventory. So, with this “new normal,” as we have all heard the state of the world being referred to as, how have automotive dealers stayed profitable and competitive during this time?
The answer lies in the dealers that have fully embraced the new reality.
Consumer behavior and dealership operations have fundamentally changed for good. To survive and ensure profitability, dealers needed to adapt to the new reality quickly. The “reality” – digital adoption and technological advancement. This refers to the ability for consumers to access immediate information online about the dealership, vehicles in stock, service scheduling, and more. It refers to consistent, relevant, and personalized marketing through email, search, social and text campaigns. And more importantly, it relates to the ability to complete an entire transaction from start to finish, with pick-up and delivery, all without ever setting foot on the showroom floor. In return, this meant adjusting dealers’ marketing campaigns and finding a way to create a more seamless and frictionless customer experience.
See how dealers across the nation are unlocking the power of true performance, personalization and integration with customer experience solutions.
Today’s automotive ecosystem is being reshaped by seamless integration, digital adoption, technological advancements and empowered consumers. Thanks to companies like Amazon and Netflix, consumers no longer strive for personalization, convenience and speed, they expect it.
“It’s astonishing — dealerships today utilize about 10 to 15 different technology applications to communicate with customers. Like separated pieces of a puzzle that were never designed to integrate or fit with one another,” says David Boice, CEO of Team Velocity. “This siloed system leaves the customer more confused and frustrated than ever.”
Just in these past two years, we have seen the industry lean into a new digital and integrated era more than ever before. Companies regardless of industry are searching for new ways to stand out from their competition and provide the best possible customer experience across both online and offline mediums.
New Technology Changes the Future of the Customer Experience
Thanks to companies like Amazon and Netflix, consumers are demanding highly personalized online shopping experiences. Automotive websites have been slow to adapt to meet these new customer expectations — until now. Spurred by necessity due to the COVID-19 pandemic, dealerships have been offering better online services, including appointment scheduling, online transactions, repair reminders, upgrade offers, car pick-up, delivery and more.
“Instead of finding ways to bring the customer to the dealership, it’s how to bring the dealership to the customer,” Eric Frehsée, president of Jeffrey Kia, says. “That’s not something that any dealer can do on their own or something that any manufacturer can do on their own. It’s an evolution.”
In this ever-changing digital world, finding ways to bring the dealership to the customer in a personalized and automatic manner is the key to staying relevant and profitable. Customers’ needs have changed and as a result, the customer experience needs to change as well. “Personalization is no longer a ‘nice-to-have,’ it’s a must-have,”says Brian Benstock, Vice President and General Manager, Paragon Honda and Acura.. “Amazon’s model works because Amazon knows its customers. Dealers need to look at their website the same way. Customers don’t want to go through the hassle of filling out a form to schedule a service appointment because they expect you to already have all their information. If they are shopping for a new car, they expect to easily find out what upgrade options they have and what their payment would be. The data is there, it just hasn’t been used in automotive websites until now.”
Website: Hi, my name is Website. Thanks for stopping by. How can I help you today?
Customer: Hey, we are looking to check out the new 2022 Telluride, see what our trade might be worth, and get a feel for of our monthly payments to see if it works in our budget. If so, we are interested in purchasing over the next few days.
Website: Perfect, let me show you around. BTW, how did you hear about us?
Customer: Your friends, Google and Facebook, suggested you. They said your offers on the 2022 Telluride were awesome!
Website: Ok, but first just a word of caution. Whatever you and Google and Facebook discussed privately may not be the same information you get here. But not a big deal, right?
Anyway, let me introduce you to my helpful widget friends. Just to name a few…This is Chat, that’s Trade, and over there is Video. My friend Finance is awesome, VDP is my main man, and you might even get to meet Retail, but most people don’t get that far.
Let’s get started with Chat. Just so you know, she will jump around frantically to get your attention and bug you all day long, unless you just say “hi” and tell her who you are. If I were you, I would just do it, because if you don’t, she is never going away. No matter what. Seriously dude, I am not joking around. I see it all day long. It’s actually crazy.
Chat: Hey, how may I help you today?
Customer: Hi, can you start with giving me some info on the new Telluride?
Chat: Slow your roll stranger. How about you start by giving me all of your information in case you decide to leave quickly, and a member of my team needs to reach you…like maybe tomorrow, probably… or at some point soon?
Customer: Ok, I am already here though. Why can’t they just speak with me right now, before I leave? But, fine, here is all my contact info. Now can you please let me know about that new ’22 Telluride?
Chat: Hmmm, that is such an incredible question. Hang on for a minute while I check. Darn it, Customer. I am afraid a member of my team cannot answer your question, but we will try our best to call you back tomorrow, hopefully. Is there anything else I can possibly do for you today?
Customer: You have not done one single thing for me today. Literally.
Website: Hey Customer, welcome back. Just so you know I cannot see or hear anything that any of my widget friends say or do. It’s like they live in their own world. But let’s get you straight over to Trade and see what happens.
Trade: Hi there. Tell me all about your trade, and then I will obviously need all of your contact information, and then I can send you a value report.
Customer: Ok, here is all my trade information, but I literally just gave Chat all my contact info, can’t you get it from her? Don’t you all work here? It’s the exact same information she just asked for 30 seconds ago.
Trade: Listen Customer, I can see you are already frustrated because you have not gotten a single bit of useful information since you arrived and have repeatedly been asked to identify yourself. I am sorry to say that this is only the beginning. Every other widget friend will need the same information. It’s what we are born to do. We cannot share your information because technically, none of us work here. We are employed and powered by other companies. See my real logo. It’s better to think of us all as “certified” and completely independent contractors. We can only keep our job if we prove to the boss that each of us have separately obtained your contact information. It’s like our fun game. Anyway, then we send your info over to CRM. He is getting old; he still counts the leads with his 20-year-old ADF calculator. Does that make sense Customer, in some small way?
Customer: No, not even in the slightest. I came here to get information to buy a Telluride. So far, all you want is for me to give you information to send to CRM. I thought you wanted to sell me a new Telluride. Google had me so convinced I could get a great deal, and it would be easy.
Website: Hey buddy, welcome back. I get it, just keep your chin up. I am going to get you straight over to my main man, the one and only VDP. We try and make sure everyone here meets him.
VDP: Hey Customer, I promise I am going to get you exactly what you need. Sounds like someone needs a great price and a payment on this 2022 Telluride. Am I right?
Customer: Yes, thank you VDP. You seem friendly with Website, so can you please tell me how much our monthly payment would be on this Telluride, including our trade information that I just gave your colleague, Trade.
VDP: Didn’t Website already explain all that? Whatever info you gave Trade stays with Trade. Sorry, I basically need all your exact same information. Relax, take a breath, because you may or may not like this… but the “awesome offers” you first saw from Google, or anywhere else, before we met are not actually our very best price. Isn’t that surprisingly fantastic news? We have something special called an E-Price. BTW, nobody knows what the “E” stands for. I am pretty sure it’s supposed to be like our “Extra” Special very best price. But it is not here now, it’s in a secret hiding place. All I need is your information and a spot to send this extra special E-Price because you understand I cannot exactly give it you now, right? I hope you get it. Fingers crossed.
Customer: Whaaaat? We are standing in the middle of your showroom right now, and we are ready to buy a Telluride. I don’t get it? I already gave your widget friends all my information and I just want to know an idea of my extra special payments NOW. That’s why we came here in the first place. Is that too much to ask, VDP? I mean, isn’t this a super common question?
VDP: Chill Customer. Please don’t bounce on me. We do have one final last-ditch option, and that’s to introduce you to the biggest, baddest widget friend in the dealership, Retail. But I am warning you, once you two meet, we may never see you again. She is a lone wolf with her own unique style and has her own entirely separate way of doing things. But perhaps she just might be able to help you. Really, at this point what do you have to lose? Are you ready?
Customer: Sure, let me meet her. But first, please tell me that all your other widget friends, or you, Website, already gave her all my contact information, all my trade information, and all my shopping history. I can’t take explaining this 2022 Telluride again and again. I don’t want to answer the same questions again. PLEASE!
Retail: Hey Customer, you look beat. By the way, what’s your real name? If I am going to help you, we need to start over fresh, and I do not want to hear about your time with Google, Facebook, or Website either. That’s all in the past.
Customer: Seriously, Retail? You also need my contact information, trade information and the details of what I want, too? And why are your prices and payments different than your associates, Google, Facebook, and Website? Are you joking?
Retail: Nope. Look, whatever your name is, only 3% or so of people even get this far. You should feel great about your effort. You have worked so hard and met so many widgets. Let’s finish this thing. Now, again, what’s your name, how can I reach you later, what are you trading, and how are you paying for it?
Customer: OMG! Do you even know Website, VDP, Chat, or any of the other people I have dealt with along the way? And shouldn’t Website have been able to just give me all this basic information himself, quickly? I still do not have an ounce of information I originally asked for. It’s so maddening.
Retail: Look, I admit I do not know them well. Except we go to conferences together and party like rockstars 😊. But, just between us, I am always the last person you’re gonna meet. It’s just how it works at our dealership. Now, like I said, let’s relax and start from scratch. It’s much easier if we both pretend everything that happened before we met is erased from your memory like it never happened. Even though it did.
Customer: You have got to be kidding me.
If you know the automotive landscape, I hope you enjoyed a laugh or two, like I did while writing this. While fun to smile, we are seriously devoted to creating solutions that empower retailers to dramatically improve their customers’ experience, both online and offline.
The bottom line is this…a dealer’s sales process (inside their stores) would never mimic the online sales experience. I would argue the customer experience is currently far better, more informative, and logical inside the dealership. Online, it’s typically disjointed from the first click of an email or a digital ad all the way through to a website filled with widgets. It’s even worse on mobile devices. The current online shopping journey takes consumers from one siloed experience to another, littered with distractions along the way. This ecosystem has slowly developed over 20 years and was not designed to easily facilitate the most important result: a transaction. Dealerships cannot efficiently manage 8-10 companies, all with individual goals and technology, and expect to create a meaningful customer experience that generates a great outcome for their business.
Integration is a change already established in most other industries, but not automotive retail… yet.
I call it “Mission Improbable” because the current ecosystem was developed like separate pieces of a puzzle that were never designed to fit. Given the exceptional online experiences customers have in other areas of their lives, it’s improbable they will play hopscotch through the maze of inconsistencies in both offers and user experiences. This siloed ecosystem is unique to automotive, and it’s heavily supported by a financial model that rewards silos, OEM certifications, etc. It’s become the norm.
But what are the alternatives? I see two logical pathways to improvement. The first would be a format to share customers’ contact information and shopping data across different platforms. Real integration between various technologies. But, the chances of wide enough adoption are unlikely because the level of cooperation would require tech companies that fiercely compete to also agree. On top of that, growing consumer privacy regulations and security environments would prove challenging.
The more likely alternative is the birth of all-inclusive platforms that were designed, acquired, or both, to facilitate the entire customer journey from the creation and first click of an ad to the final click of scheduling a sales delivery or service, without any unnecessary interruptions, all originally engineered to work together seamlessly. But, platforms like this will take time to adopt because investors, dealers, and OEMs are accustomed to the current mindset. Integration is a change already established in most other industries, but not automotive retail… yet.
We are passionately committed to a better alternative that is facilitated by one, fully-integrated technology platform, designed from the ground up for all “widgets” to work together for customers and dealerships. It is how the rest of the world is already retailing, and we believe we can too.
David Boice
Team Velocity Co-Founder & CEO
Team Velocity designed Apollo to put the customer experience first, creating a frictionless experience that customers trust. With Apollo, you have one technology platform with a suite of integrated applications that simplifies your processes and reduces costs by eliminating the need for multiple vendors and plug-ins. Apollo ensures consistent offers, creative and messaging across every online and offline customer touchpoint and provides an Amazon Prime-like experience for every customer, with personalized websites dynamically configured to their specific information. Apollo’s intelligent and personalized campaigns not only deliver a better customer experience, but are proven to increase sales and service growth year over year.
Learn more about Team Velocity and the other 9 companies to watch in 2021:
While other dealerships have scrambled to quickly adapt to changes brought on by this year’s pandemic, the Murgado Automotive Group’s position never wavered, thanks to the keen foresight Mario Murgado and his partners had during the economic recession from 2008 to 2010.
Mario Jr. serves as the Marketing and Operations Director at the Murgado Automotive Group – Brickell Motors, which his father founded back in 2001. The Miami-based business has over 18 locations that sell a wide selection of brands, ranging from mass-market Honda and Nissan to luxury Bentley and Ferrari.
“After graduating from college, I came back to the automotive world and focused on sales management. My return took place right after the 2008 – 2010 economic recession. Back then, we really had to change our business into an internet sales model, or digital-forward model, that a lot of the automotive industry really had not adapted to or taken initiative yet,” Mario Jr. said. “Being a little bit younger and exposed to more of the technological side of the business, it was a good opportunity for me to look into how we could create an internet sales department that would withstand the upcoming market change.”
VP & GM
Paragon Honda | Paragon Acura
Owner
White Plains Honda
Brian Benstock’s career in the automotive industry began in May 1982. Under the guidance of his mentor, Paul Singer, Benstock absorbed the intricate nuances of the automotive world and the principles of running a successful dealership. This foundational experience set the stage for Benstock’s future success, as he quickly demonstrated a keen aptitude for sales and a profound understanding of customer relations.
Benstock’s forward-thinking vision centers on creating a “frictionless” customer experience. His dedication to continuous learning and process optimization has not only contributed to his success but has also cemented his role as a key partner within the organization. Beyond his professional achievements, Benstock is deeply passionate about his family, cherishing his roles as a proud father and husband.
CEO | FordDirect
Dean Stoneley is chief executive officer at FordDirect. As CEO, he leads the team responsible for bringing together the worlds of digital, data, and technology to deliver best-in-class marketing and advertising solutions to Ford Dealers and Lincoln Retailers, consistent with the customer-focused Ford+ plan for growth and value creation.
An accomplished executive with an agile leadership approach, a strong customer focus, and a knack for modernizing marketing functions in roles around the world, Dean oversees the rich digital connections that help FordDirect connect the Ford and Lincoln brands with the consumers served by dealerships across the United States.
Prior to joining FordDirect in 2022, Dean built tremendous relationships within Ford Motor Company over a span of 30 years. He was most recently the general manager, North America Truck at Ford. In this role, he built a team with end-to-end responsibility for Ford’s successful pick-up truck portfolio. During his tenure, F-Series extended its streak as the best-selling truck in America to 45 consecutive years. Dean launched the all-new Ford Maverick, the recipient of numerous awards, including the 2022 North America Truck of the Year.
Previously, Dean was president and CEO of the Ford Motor Company of Canada, where Ford is the No. 1 brand in the market. During his tenure, he worked closely with the Canadian government and Unifor to secure Oakville Assembly Complex as a BEV manufacturing site for the company.
Dean’s background with Ford has been predominantly in the marketing space, where he has held key marketing leadership roles in the U.S., Canada, Southern Africa, and Asia-Pacific markets. While based in China, he was vice president and director of marketing for a new joint venture with ChangAn Ford, responsible for marketing, sales, and service of Ford vehicles in China.
Dean is a past chairperson of the Canadian Automotive Partnership Council and member of the board of the Canadian Marketing Association. He graduated from Western University with a bachelor’s degree. He is married with three children, enjoys music, photography, and fine arts, and is a car and motorcycle enthusiast.
Sr. Manager, Dealer Digital & Relationship Marketing | Toyota Motor North America
During her 18-year career with Toyota Motor North America (TMNA), Lindsay Lee spent the first 10 years in the Toyota and Lexus field organizations, where she developed a deep understanding of dealer operations and built strong relationships in multiple markets across the country. Since 2017, Lindsay has been dedicated to marketing strategy, planning, and implementation where she has led several teams through the development of award-winning vehicle and brand campaigns.
Currently, Lindsay is the Senior Manager responsible for Toyota Dealer Digital and Relationship Marketing. Lindsay’s application of her extensive research on the dealer website experience led to a complete overhaul of the Toyota Dealer Digital Solutions (TDDS) certified website program. With the goal of a uniquely-Toyota, customer-centric experience, she successfully brought to life a program that has simplified homepage designs, reduced pop-ups, and improved quality and overall site speed on Toyota dealer websites. Lindsay continues to lead her team to develop program enhancements that exemplify Toyota’s commitment to the customer experience. Outside of Toyota, Lindsay loves to travel with her husband and two young girls.
CMO | Sames Auto Group
Patricia Muyshondt is a seasoned marketing executive with extensive expertise in the automotive industry. As the Chief Marketing Officer (CMO) at Sames Auto Group, the oldest dealership in Texas, she spearheads all marketing and advertising initiatives, driving brand growth, enhancing customer engagement, and increasing revenue. Previously, Patricia served as the Vice President of Marketing and Communications for Grupo Q Central America, where she oversaw multi-country marketing operations. She skillfully managed budgets, implemented innovative eCommerce strategies, and elevated branding efforts across highly competitive and dynamic markets. With a passion for innovation and a customer-centric approach, Patricia thrives on helping companies navigate the complexities of the ever-evolving auto industry. Her focus has always been on understanding and improving the customer journey—analyzing every touchpoint to create seamless, impactful brand experiences. Beyond her professional achievements, Patricia’s love for cars inspires her work and fuels her drive to push boundaries in automotive marketing.
COO | Coral Springs Automall
Jack Jackintelle (JJ) is a visionary leader and renowned automotive executive with a storied career spanning almost 4 decades. His journey is marked by an unwavering commitment to excellence, an unrelenting drive for results and a proven track record of success.
JJ’s entry into the automotive industry began in 1985 in Houston, Texas, where he quickly rose through the ranks from salesman to sales manager and general manager. In 1994, he purchased his first Toyota dealership in Ohio and a second Toyota dealership in Pittsburg in 1998. In 2002, JJ sold his dealerships and left the Midwest to relocate to Florida with his family, where he joined Group 1 as Platform President for 5 years. JJ later served as the President and Chief Operating Officer at Rick Case Automotive for 10 years and currently holds the position of Chief Operating Officer at Page Automotive Group since 2018.
Throughout his distinguished career, JJ has remained steadfast in his belief of a merit-based culture, emphasizing clearly defined KPI’s and non-negotiables. His influence has inspired countless professionals, and his legacy continues to shape the automotive industry.
Co-Founder & CEO | Team Velocity
Self-made and innovative, David is a pioneer in auto industry technology. Throughout his impressive career, he has owned numerous companies in the automotive, tech, RV, marine and real estate sectors. Boice co-founded two of the largest tech and consulting companies (AutoMark and CyberCar) in the automotive trade, with an enterprise value of $200 million. He co-founded his first technology company, AutoMark, with his father at 22, selling in 2000 as part of one of the largest technology transactions in the automotive industry. In 2008, he broke through a challenging economy and co-founded Team Velocity, a leading marketing technology provider serving the automotive industry.
Founder & CEO | Car Dealership Guy
Yossi J. Levi is the founder of Car Dealership Guy, the leading media platform in automotive retail, sharing content, news, and insights to help dealers and industry professionals stay informed and ahead.
His journey in the car business started at 14, working at his dad’s small used car lot in Philly, where he saw a clear need for more transparency in the industry.
In 2018, he launched Gettacar, a fully online auto retailer that sold over 3,000 cars a year nationwide, backed by $50M in funding from investors like 3L Capital, Luxor Capital, Headline, and Torch. By 2021, sales had grown 270% year-over-year, reaching $80M annually. But, as life would have it, the market shifted, competition became brutal, and by 2023, he had to shut it down.
But Yossi J. Levi is not one to sit around, and he knew his job was not yet done. So he quickly got back up and started Car Dealership Guy later that year, leveraging his then-anonymous social media persona. Today, it’s recognized as a trusted source for industry professionals, reaching over 30 million impressions monthly and earning features in Apple News, the NY Post, and Forbes.
Along the way, he’s been honored with awards like EY Entrepreneur of the Year and recognition as one of Goldman Sachs’ Top 100 Most Intriguing Entrepreneurs.
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Link Building | Local Listing Distribution | Citation Building & Optimization
Dynamic Model Research Pages. Approximately 50% of consumers visiting your website have never purchased your brand. Wow shoppers with beautiful OEM images and comprehensive vehicle details to assist in the vehicle research process. Serving as virtual vehicle brochures, these pages highlight model features, showcase trim levels and paint options, and even include vehicle walk-through videos. They also feature exclusive Model Release pages for major new models before their official launch.
Actionable insights & reporting. Apollo Sites is integrated with Google Analytics 4 (GA4) to monitor website performance, content engagement, traffic trends, and conversion metrics. As a founding member of the Automotive Standards Council (ASC), we ensure that your website is tagged and measured to the highest industry standards. Our detailed reporting provides insights that empower data-driven decisions for SEO strategy improvement.
One website, two experiences. Just like Amazon, customers can choose to utilize your public website or log in for a customized retail experience tailored to their unique customer profile.
Powered by your DMS. Apollo seamlessly integrates with your DMS, harnessing your first-party data goldmines to create personalized websites for each customer.
Personal vehicle details. When a customer logs in, they are greeted with their name and current vehicle details, including their current payment, pay-off, mileage, trade value, open recalls, and complete service history with your dealership.
Dynamic website banners. Enjoy automated banner updates that dynamically reflect each customer’s shopping activity and your latest specials—no manual intervention required. Plus, when a shopper returns to your website, their last viewed vehicle takes the spotlight in the banner, ensuring a personalized and enticing experience every time they visit.
Upgrade customers to their next vehicle. With Upgrade Matrix®, our patented trade pattern prediction tool, you can predict and promote a customer’s next vehicle with 85% accuracy.
Make scheduling service a breeze. Proven to generate 4x the number of service appointments as the leading 3rd party providers, Apollo recommends relevant services for every customer based on their unique service history and activity status with your dealership. Customers can apply coupons and schedule service with optional pickup and delivery in seconds. It’s also integrated with Xtime for automated DMS writebacks.
Collect customer favorites. Make it easy for customers to save their favorite vehicles and review their customized payments.
