In the Driver’s Seat: 2023 Reflections & 2024 Predictions
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.
AutoSuccess: Vehicle Acquisition
An Inside Look At How to Fill Your Lot & Keep It Full
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.
AutoSuccess: Embracing the New Reality
How Paragon Finished #1 in the Nation
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.
AutoSuccess: The Future of Integration
Connecting the Dots for a Better 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.
AutoSuccess: The Sky is Not the Limit
The Sky is Not the Limit
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.”
Mission Improbable: 2021
Imagine this…A customer walks into a dealership and is treated exactly like they are routinely treated online. They would meet a bunch of people, and it would go something like this:
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.
Can you imagine if this is what the in-store experience was like?
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
AutoSuccess: The Top 10 Companies to Watch in 2021
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:
AutoSuccess: Murgado Automotive Group
Doubling Down
How One Auto Group Achieved Double-Digit Growth Amid the Pandemic with the Help of Integrated Technology
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.”
AutoSuccess: Commonwealth Auto Group
Cultivating the Customer Experience
Commonwealth Auto Group Increases Net Profits by 20% YOY
Like many dealership leaders across the country, Charles Daher Jr. grew up in the family business. He worked his way up the ranks of Commonwealth Motors in Lawrence, MA, by cleaning cars, fixing dealership lots and selling vehicles any chance he could get. After graduating from college, his passion continued as he transitioned into sales and service management positions.
Commonwealth Motors started in 1991 by Daher’s father Charlie, who, over the past 30 years has grown the business to include five franchises — Chevrolet, Honda, Kia, Nissan and Volkswagen — along with a business development center, serving communities throughout Northeastern Massachusetts.
Today, one of the group’s biggest challenges is their location. Lawrence isn’t known for its affluence or attractions, making it crucial to connect with customers in surrounding areas, such as Boston commuters and residents of neighboring cities. Because of their location, they found a blanket approach to their marketing efforts ineffective and realized they needed a more dynamic strategy to reach their target audiences. The Dahers decided to partner with Team Velocity to help them implement a winning strategy focused on data and a personalized customer experience.
AutoSuccess: The Missing Piece
Paragon Honda Paves the Way with Personalized Customer Experiences
As a dealership partner and industry leader, Brian Benstock knows the importance of staying ahead of the technology curve.
For many years, the general manager and vice president of Paragon Honda and Paragon Acura in Queens, NY has made keynote speeches at industry events across the country encouraging dealers to leap into the new age of the frictionless customer experience, or risk getting left behind.
“There is a great quote by Steve Jobs that says, ‘You have to start with the customer experience and work backwards to the technology.’ That is exactly what we’ve done here at Paragon,” Benstock said.
“We have been fighting an ecosystem of siloed applications for five years,” Boice said. “When we first started, Brian was using some of the leading companies in this space, which don’t integrate at all with each other or anything else. As a matter of fact, most of the time, they’re archenemies. So, we had to take a different approach. It’s been a five-year journey of building a new and integrated technology platform.
AutoSuccess: Going Virtual
Bringing the Dealership Experience Online in the Wake of the Coronavirus Outbreak
Most of American life has been affected by the coronavirus outbreak. With many states issuing stay-at-home recommendations or outright lockdown restrictions, it’s clear that daily business will not go on as usual in the near future.
Yet for all the unprecedented issues the coronavirus has brought to the world, engagement in online shopping has never been higher. From groceries to crafts to home office equipment, people are finding ways to purchase the things they need without leaving their homes.
The Shift from Retailing Tools to a Transactional Platform
This Thursday, April 16th, I am hosting a webinar with Automotive News to discuss the future of digital retailing and its necessary evolution in the current customer experience landscape. At NADA, we launched our website platform, Apollo Sites. Since then, I have answered the questions below hundreds of times and thought it might be helpful to publish in advance of the Automotive News webinar.
Q: Why is Team Velocity adding primary websites to its Apollo platform?
A: Here are the top 5 reasons in no specific order:
- Most of our leadership team came from the automotive website space and carried lengthy non-competes. All our non-competes in the automotive website sector expired allowing us to re-enter the website space.
- Many clients asked us to integrate a primary website with a digital retailing application into Apollo using the same technology that generates and deploys all their other advertising. It’s a logical extension of Apollo and a space we know well having previously owned two of the largest privately held website companies.
- Our clients are focused on retention just as much as gaining new customers. They asked for a better-performing website that would provide relevant and personalized experiences for their current customers rather than treating existing customers the same as the public. They said, “integrate my DMS and make my website work like Amazon.” So that’s exactly what we did.
- A dealership’s website is the hub of their advertising efforts. Our clients need their ads on all other mediums – like Google, Bing, Facebook, YouTube, Email, Direct Mail, etc. – to identically match the sales and service offers on their website, 100% of the time. Dealers lose credibility and opportunities when their primary website is not a perfectly aligned extension of all their other advertising. So, we built a website platform that matches every offer, to the penny, on every single vehicle in stock, across every customer touchpoint, 24/7/365.
- Our clients are increasingly frustrated with the current mentality of most existing website providers. Significant traffic is driven to a dealer’s website, with the hope that the website will generate not just “leads” but an actual service or sales transaction. Unfortunately, many websites are solely focused on generating “forced” sales leads by requiring consumers to fill out a lead form just to get basic information. They also require expensive widgets and plug-ins, have poor performance ratings for speed and mobile friendliness, and can’t distinguish a current customer from a prospect. The “get e-price and unlock savings” is 20-year-old thinking and offers little in terms of useful information. We built a website that fulfills our vision: deliver a friction-less consumer experience, from the initial engagement to a final transaction. Using Apollo’s technology, we dynamically generate a personalized, customer-friendly, widget-free website that is highly rated, independently, for its performance. Our website platform is called, Apollo Sites.
Q: Do Apollo Sites have a digital retailing solution? If so, what’s different?
A: Yes. Apollo Sites has a digital retailing application called Transact. It’s unique from other digital retailing tools because it’s built natively into the entire website platform, making it easy for consumers to navigate. Our vision wasn’t to have just another digital retailing tool, but an entire transactional website platform. Transact is fast on mobile devices and uses the same UX as the website. Consumers never leave the dealership’s site and all the reporting is included in the analytics. Also, when current customers sign in, (using something as simple as their phone number or email), all their information is pre-populated, so they never waste time filling out forms, figuring out their trade value, equity, payoff, etc. Existing customers have a very fast and easy ability to complete another sales transaction with ‘one-touch’. This feature is critical for dealerships who have databases they need to retain. The existing digital retailing solutions are plug-ins to a dealer’s primary website with entirely different UX, reporting, etc. And, they treat every customer like the public. We think this is not only illogical but archaic by today’s standards.
Q: How about Service Scheduling? Does Apollo Site have that capability?
A: Yes. Apollo Sites was built with a complete service scheduling application that allows a customer to schedule service in about 45 seconds. Thus far, it’s generating 2-3x the number of online appointments as the leading providers in every implementation. An added benefit is that it automatically runs all service appointments through Apollo’s equity tools to alert the dealership when service customers are in a good position to upgrade, what specific upgrade options are available, and calculates to-the-penny payments for that particular customer. Everything is integrated, so there isn’t a need for any additional expensive equity mining software.
Q: Given the current challenges related to Covid-19, is there any technology to facilitate service and sales transactions outside the dealership?
A: Yes. Even prior to the Covid-19 outbreak, we were building virtual dealership applications to help our large metro dealers go to the customer versus the customer coming to them. What was once a nice benefit has now become a necessity. Every aspect of Apollo Sites allows customers to select options to have their vehicle picked up for service, sign up for test drives completed remotely, and, for vehicles purchased online, to have their new vehicle delivered offsite (if the dealership is capable). All of this is easily managed in Apollo’s appointment system or can be delivered to a dealership’s CRM.
Q: How are the OEMs reacting to the Apollo Sites?
A: Some of our best meetings have been with OEMs because this new technology solves many of the challenges they face. First, because the OEMs are hyper-focused on loyalty rates, the ability to offer existing owners a personalized, custom experience is ideal. Just a 1% gain or loss in retention is substantial for any OEM. Second, Apollo Sites creates a personal website for every customer, pre-establishing a “one to one” relationship. Dealers can immediately offer existing customers their best pricing without forcing a customer to “get e-price or unlock savings” on their website. OEMs love that feature, and some are starting to think about further personalizing incentives with this platform down to the customer level. Third, current website providers basically outsource Fixed Operations to 3rd parties. Service is an afterthought at best, but the OEMs all recognize the relationship between sales, retention and service. We built all service components into the website platform natively, with zero widgets required. Customers love how easy it is to schedule service, check their service history, get their own custom coupons, have their vehicle appraised while their car is in for service and the ability to check their vehicle’s value anytime. The first major OEM who reviewed the Apollo Sites website platform quickly added us to their list of approved providers, which was a very encouraging sign for our dealerships.
Q: What inspired the innovation behind Apollo Sites?
A: It’s just all new thinking. And RE-THINKING what we thought we knew. We were most inspired by the concept of Amazon Prime. Nothing in our industry, except perhaps Tesla and Carvana, have fully adapted to meet the consumer’s expectations. The current offerings lack the kind of thinking and features our clients expect from a website. And we are just getting started with this new integrated website platform. We are re-investing another $6M in 2020 to further improve the Apollo Sites website platform and plan to introduce many features that will be entirely new to our industry. We aim to set a new and very high standard of excellence for both consumer experience and for what dealerships should expect from their websites. Our focus is squarely on facilitating sales and service transactions for both existing and new customers.
Q: The evolution of Apollo to include websites seems like the final piece of the puzzle. Will there be another generation of Apollo?
A: The addition of Apollo Sites has certainly enhanced the entire Apollo platform but there will certainly be another evolution. Here’s a hint on what we are working on next…
What if a dealer’s website, not their CRM, dynamically generated beautiful, relevant, image-based, follow-up automatically? What if it was based solely on ALL the behavior and data collected on each customer and cross-referenced with the DMS? Just like Amazon, VRBO, etc., when customers complete a sales or service transaction, they automatically get new and relevant messaging. Our goal is to create a smart website that focuses on generating service and sales transactions, not just leads. Dealers have been in a stranglehold with outdated, text-based follow-up emails that don’t work well because ADF-XML technology is literally 20 years old. Yet, everyone still uses it. We consider it digital road-blocking and it kills progress. Think about it and stay tuned.
Want to learn more?
If you want to get a deeper dive on the changes we see coming, please watch the Automotive News Webinar recorded here.
David Boice
Team Velocity Co-Founder & CEO
Mitsubishi Offers Dealers Choice of New Digital Tools
But Mitsubishi has big plans as it adds franchises every month, revamps its facilities program and works with alliance partner Nissan on new generations of its crossovers.
A critical part of rebuilding the brand is the new “Small Batch” marketing initiative designed to reach customers through digital-first advertising. And now, Mitsubishi is making it easier for dealers to access modern ad tools in their local markets and bring that more-for-less approach to chasing after customers online.
The Mi Digital Solutions program, or MiDS for short, was launched in November and allows dealers to choose from five curated providers offering prenegotiated rates and 100 percent reimbursement through Mitsubishi’s co-op ad program.
The goal is to strip away some of the vendor clutter and allow dealers to join the cutting edge of digital retailing in an affordable and manageable way.
“Prior to this program launching, we were really only focused on what I would call the traditional elements of the Tier 3 program, which are leads and websites. So, it was pretty basic,” Kimberley Gardiner, chief marketing officer for Mitsubishi Motors North America, told Automotive News.
Gardiner took over as Mitsubishi’s CMO in January of last year after high-level marketing jobs at Kia Motors America and Toyota Motor Sales USA. She rolled out the initial Small Batch campaign for the brand nationally in June, starting with digital ads before expanding to video and broadcast. That same challenger spirit led to the development of the MiDS program at the local level.
Retailers now have Mitsubishi-supported providers offering website management, digital chat, text, data mining, lead generation and other services that are tied together rather than spreading them out across multiple vendors, sometimes with little accountability.
“We really wanted to help our dealers take their digital marketing and digital programming to the next level and couple that with Small Batch thinking, which is: You can be a small organization or a small dealer, but the things we can do can have a big impact,” Gardiner said. “They realize they want to make a change but don’t know where to begin.”
Early Returns
Early results are positive. About two-thirds of the brand’s U.S. dealers have signed up, page views at dealer websites are up by 30 percent, and the conversion rate on digital advertising has risen from 0.9 percent to 1.5 percent. That latter number looks small but marks significant progress, Gardiner said.
Providers in the new program offer a variety of options — such as “good, better, best” tiers — which makes it work for smaller retailers. It’s relatively affordable for the industry, and easy to pay for through co-op dollars, Gardiner said.
The solutions are also tailored for Mitsubishi stores rather than just copying other automakers’ programs. The Mitsubishi National Advisory Board helped shape the program.
“Especially with a challenger brand like ours, we need to really work hard on consistency,” Gardiner said. “At any moment in time, a consumer can have a really great experience or have a less than great experience that could really make or break as to whether they would even consider our brand.”
Gardiner’s team vetted multiple providers and negotiated rates directly, so dealers don’t have to. Mitsubishi chose Dealer.com, Dealer eProcess, Dealer Inspire, DealerOn and Team Velocity to start. Gardiner said additional vendors could be added as needed.
One satisfied subscriber to the Mitsubishi program is David Baum Jr., general manager of Lewisville Autoplex near Dallas. Baum added a provider for his Mitsubishi store — Team Velocity — that has brought several new tools for consumer engagement.
Baum and his team can now see users interacting with the website in real time, and tailor engagement to drive a service visit or a vehicle sale. Customers are given individual accounts and can receive digital coupons they can load onto their smartphones.
“In the past, I always had service coupons on my website,” Baum said. “But I can think of only a handful that were ever presented.” With digital coupons pushed to customers through their accounts and through email, “just last month, we had 286 coupons redeemed from service customers, and those were all Mitsubishis.”
Having Team Velocity within the MiDS program made it easier for Baum to pull the trigger on more digital engagement. Part of the reason is the packaging of several services handled by one vendor, and payment through the Mitsubishi co-op program.
‘Point and click’
“I’m always being pitched from different digital marketing companies, but the pricing is always through the roof, so we don’t even consider it,” he said. With his new Team Velocity account through Mitsubishi, “it’s point and click, and they’re paid and we’re done.”
One of Gardiner’s goals as marketing head is to align advertising with media use by consumers, meaning that as people spend more time online, retailers should shift their mix. Digital also allows for visibility on what’s working and what isn’t by tracking engagement.
Toward that end, Mitsubishi added digital consultants for the first time as part of the MiDS program.
They interact directly with dealers, giving them a digital assessment and action plan on how best to use limited advertising dollars and troubleshoot problems.
“I think you’ll see more stories about efficiency, more stories about better meeting customer expectations, and certainly with those things will come more interest in terms of sales,” Gardiner said.
Original Source: Automotive News https://www.autonews.com/dealers/mitsubishi-offers-dealers-choice-new-digital-tools
Marketing Exec Says Dealers are Missing a Golden Opportunity
In an interview with reporter Sarah Kominek, Boice said dealerships’ returning customers should have online experiences that are relevant to their personal details and the cars they’re driving. Here are edited excerpts.
Q: Why do you think dealerships should use customers’ data to serve them online?
A: These are very common data points that every franchised dealership has securely stored in their accounting systems: The customer’s name, address, phone number and email. Their vehicle’s year, make, model, trim, VIN and estimated mileage. Its service history, any recalls, services due, last service and recommended services. The customer’s sales info — the payment type, down payment, term, payoff, trade value, equity, likely upgrade options, next service visit, preferences and their shopping history. These data points are easily accessible to create a personal online experience for their customers.
A: People want personalized service coupons that need to be specific to the car they’re driving. People really like to know their service history: Does the dealership have all the services that have been performed on record and are they accurate? People also expect you to give them a warning if their vehicle just went under recall. Without filling out any forms, they want to be able to schedule service and incorporate the coupons they’re entitled to. You know my name, you know my car and its VIN. I’m not going to fill out a form with the 14 pieces of information you normally ask me for, because I’ve signed in and I expect you to make scheduling a service appointment easy.
Q: What would the experience be like for a returning customer looking to purchase or lease another vehicle?
Original Source: Automotive News https://www.autonews.com/shift/marketing-exec-says-dealers-are-missing-golden-opportunity
Mission Improbable: A Game of Technology Tag
Before I get to the heart of the article…you might rightfully point out that I missed a few large technology silos. You are correct. I ran out of room, so I included the most common and universal categories that apply to franchised dealerships’ most popular sales and service advertising strategies. And, you would also be correct that some excellent companies are missing all together. Agree, let me know who is missing. The companies included are all great at what they do, and I listed them alphabetically. However, adding more silos and logos only makes the reason I am writing this more relevant to the challenges faced by dealerships in the current 2020 ecosystem.
Now, if you are an entrepreneur, what an impressive list of companies that make up much of the technology ecosystem in the automotive industry for advertising. Some of them cover one silo perfectly while others dabble in 2-3 silos. A few of these companies are worth billions of dollars and many worth hundreds of millions. Not bad, right? But when I reviewed this graphic with my dealer friends, I discovered the average number of companies they work with to help sell and service cars was between 10 and 12 from these main ad categories alone — but way more vendors are required. This is just the tip of the iceberg.
I call this “Mission Improbable”, meaning it’s highly improbable this siloed model is going to succeed. Here are some comments from good, really good, retailers who passionately want to create a frictionless customer journey for their new and existing customers and do it in a way their internal teams can efficiently and profitably execute.
“A world-class customer journey isn’t possible with this many companies and competing technologies involved. It’s too hard, so we settle for mediocrity.”
“It’s like a game of Technology Tag and I am always it. Nothing quite works together like we are all promised.”
“We have 8 offer management platforms just to price out cars and create compliant offers. None of them are consistent. It’s no wonder customers lack trust in our process.”
“I have 4 franchises; my OEMs all use different certified vendors in their Co-Op programs. It compounds our challenge by 4x. It’s getting worse every year.”
“It’s too expensive and the real costs are all the people we need to hire, train and re-train in order to use these technologies that were never designed to work together.”
“All these companies are all chasing the exact same people. I only have two types of people to sell or service…my existing customers and prospective new customers in my market. Is it really that hard?”
“We have all been so focused on the customer journey, we all forgot about the dealer journey through all of these independent platforms.”
So, the problem for dealers is logical and well-said by the growing frustration of dealerships who are spending more for technology and getting less of a return, if any.
What’s the solution?
With every big challenge comes a great opportunity to solve it. As we enter the new decade in 2020, I would propose some or all the below suggestions to help combat Mission Improbable.
Here are my Big 5.
- OEMs. I would encourage you to do this ‘silo’ exercise with your current and future programs. Some technologies are setup to share data and integrate with other companies through secure API’s. Some are not structured to integrate and never will. The current universal method of sharing data is through ADF-XML which is 20 years old. This was originally designed for getting lead forms with very basic data into a CRM. The entire world has changed, and data integration has exploded. You have the power and position to force real integration across silos to dramatically improve the customer journey while reducing the burden on your retailers.
- In 2020, you will see companies (like ours) continue to develop and rollout technology that already integrates and connects the silos. We won’t be alone, but the customer journey now touches everything from targeted communications like email and mail, to all the major digital media companies to websites. Integrating all those offers and experiences is the best way to ensure a positive customer journey. Just look at the most successful digital retailers like Tesla, Carvana, Amazon Prime, etc. Less technology silos, less friction, less expense, and more of what you want…transactions.
- We must rethink 20-year-old technology as the primary manner to share basic data amongst companies and platforms. I am hopeful, but doubtful, that the current landscape is ripe for this type of cooperation.
- Consolidation and/or real integration. Some of the companies should get together and start creating “Reese’s Chocolate Peanut Butter Cups” with their ingredients. Dealers want less solutions that do more and are easier to use. I can see some solid partnerships forming in 2020 that offer dealers and/or OEMs fully integrated solutions that were intentionally designed to work together.
- Go Direct. Digital advertising is perhaps the most siloed, crowded and fragmented of them all. Starting with the public groups and the large privates…dealerships are going to start to bypass traditional digital vendors and OEM programs all together. By either creating a solution themselves, or by endorsing a few existing tech platforms, the big media companies have everything to gain (and so do their advertisers) enabling dealers to advertise their inventory and services directly without the need for an agency. Think about it, what value does a travel agent offer its passengers these days? Very little. Google, Microsoft, YouTube and Facebook will have to look at this in 2020. There is too much at stake not too. And while standalone franchises might be able to muscle through the myriad of companies in these silos, large groups have to scale and be more efficient. Dealers will develop direct relationships with the major digital media companies that the vast majority of their money is already flowing into. It only makes sense for them.
I am going to be at NADA this year with Team Velocity at Booth #4288C in the main hall. If you want to talk more about this, or set up a time to see how we are solving the game of Technology Tag, please send me a private message.
David Boice
Team Velocity Co-Founder & CEO
AutoSuccess: The Top 10 Companies to Watch in 2020
Team Velocity is an automotive agency with artificial intelligence technology that is revolutionizing the industry — and how dealers sell and service cars. Their proprietary technology platform, Apollo, is made by dealers for dealers. It analyzes sales and service data to predict who will buy, what they will buy and when they are ready to service. Apollo generates dynamic, offer-based campaigns across all channels, including search, display, social, pre-roll, email, text, direct mail, personal websites and landing pages. Eliminate the risk of traditional marketing when you market with Team Velocity and Apollo, which provides the ultimate consumer experience across every touchpoint — both on desktop and mobile. Team Velocity and Apollo’s site of capabilities successfully increases revenue and efficiencies for both dealerships and original equipment manufacturers. Predict, track, sell and service more customers with Team Velocity’s human-fueled creativity combined with the innovative, fully automated AI platform of Apollo.
Learn more about Team Velocity and the other 9 companies to watch in 2020:
