Over the past few months, we have shared sneak previews of sessions that will be held at 2024 Digital Dealer Conference & Expo (#DDCE2024)! But the introductions we have written have left attendees wanting more.

To that end, session leaders have offered an expanded explanation of what is in store at their session in Las Vegas. Informativ’s Curtis Knievel offers a deeper insight for the session titled Stop the Daredevils at Your Dealership.

Daredevils are known for their death-defying stunts, pushing boundaries, and embracing risk with every jump, twist, and turn. However, while these thrill-seekers may dazzle audiences, similar daredevils working at your dealership can bring more harm than excitement.

In the world of automotive retail, fraudsters and reckless sales behavior are the equivalent of high-speed crashes and dangerous jumps—they’re risky, unpredictable, and potentially disastrous. This article will guide you through strategies to stop these daredevils from derailing your dealership and ensure a smooth and secure operation.

Problem: ID Fraud Is Hard to Detect & My Team Doesn’t Consistently Check for It

ID fraudsters are like stealthy bikers weaving through traffic—they’re hard to spot, unpredictable, and can cause significant damage if not caught early. These fraudsters have become increasingly sophisticated, making it difficult for even seasoned professionals to detect their tricks before it’s too late. Sales teams, focused on hitting their numbers, might skip essential ID verification steps, leaving your dealership exposed to fraud.

Solution #1: Know Your Risks. Just as a daredevil must anticipate sharp turns and sudden obstacles, dealerships need to be aware of the tactics used by fraudsters. These daredevils typically strike when your dealership is busiest, taking advantage of your team’s distraction. They operate with reckless abandon, showing no concern for costs, saying “yes” to everything, and pushing hard for remote transactions where their true identities can remain hidden.

Recognizing these patterns allows you to put up the right barriers. Fraudsters may be fast and fearless, but they’re not invincible. By understanding their methods, you can build guardrails that stop them in their tracks before they can pull off their high-speed heist.

Solution #2: Limit Your Risks. Imagine catching a daredevil just as they’re revving their engine, preparing for a dangerous stunt. The earlier you intercept them, the better. Similarly, implementing robust ID verification at the start of every transaction—whether in-store or remotely—is critical. Leverage technology that can quickly flag fake IDs, much like a speed trap catching a speedster going over the limit.

In 2023, fraud detection tools identified and flagged over 5,300 fake IDs, preventing an estimated $100 million in vehicle thefts and saving dealerships 416 days of valuable time. By using this technology, you can stop fraudsters before they even get out of the starting gate, protecting your dealership from costly and reputation-damaging crashes.

Problem: Compliance Is Complicated, Expensive, and Slows Dealers Down

For many dealerships, compliance feels like going up a hill with a flat tire—it’s tough, slow, and frustrating. Sales teams, eager to close deals and hit their targets, often see compliance as an unnecessary roadblock, leading them to take risky shortcuts. This reckless behavior is akin to a daredevil attempting a stunt without the proper safety gear—it might seem faster, but it’s a disaster waiting to happen.

Solution: Remove the Roadblocks. To keep your sales team from veering off course, it’s crucial to make compliance as smooth and straightforward as possible. Going digital and eliminating paper processes in your showroom can streamline compliance, making it easier for your team to stay on track without feeling bogged down by cumbersome procedures.

Think of it as equipping your staff with a Drivers Assist System. Leveraging intuitive, mobile technology allows your sales team to navigate the compliance landscape without unnecessary detours. And when they understand the benefits of compliance—not just for the dealership, but for their own success—they’re less likely to take risky shortcuts.

By removing the roadblocks to compliance, you keep your team on the right path, avoiding the dangerous detours that lead to non-compliance. It’s like ensuring your racers have a clear, well-marked trail, so they’re less tempted to take off-road risks.

Problem: The Daredevils in My Showroom Are Collecting, Storing, & Sending Customers’ Info on Their Cell Phones & Personal Emails

Salespeople, much like drivers with their customized gear, often rely on their personal devices to manage customer interactions. While this might seem convenient, it’s like racing without a helmet—risky and potentially disastrous. When sensitive customer information is stored or shared improperly, it creates significant risks for data breaches and compliance violations.

Solution #1: Have the Right Equipment. Equip your sales team with the right tools, ensuring they’re collecting and managing customer information securely. Providing them with a digital process—preferably an app on their phone—ensures that data is handled correctly, much like giving a racer he best safety gear for their stunts. This approach not only secures customer data but also creates and stores FTC-compliant deal jackets, reducing the risk of human error.

It’s like upgrading your daredevils’ vehicles with top-of-the-line safety features, ensuring they can perform their tricks without endangering themselves—or your dealership.

Solution #2: Control the Starting Line. In racing, controlling the starting line is crucial—it’s where the action begins and where potential risks are first encountered. Similarly, controlling the entry points of information into your dealership’s systems is key to preventing fraud and maintaining compliance.

There are four main points you need to monitor:

• The Meet-and-Greet: Direct, face-to-face interaction with customers.
• Consumer Text/Phone: Gathering data from a customer’s mobile device.
• Synthetic Collection: Pulling credit reports or using other methods to verify personal identifiable information.
• Remote Transactions: Receiving customer information and product delivery through any method other than in-person.

These are the critical junctures where discipline can falter, leading to compliance breaches and increased fraud risk. Think of these points as checkpoints in a racecourse—ensuring your team doesn’t cut corners or take dangerous shortcuts is essential. Establishing clear guardrails at each entry point keeps your process in check, preventing the daredevils in your showroom from exploiting any weaknesses.

Problem: My Dealership Has Turnover—So Training Never Sticks!

In an industry with high turnover, training can feel like trying to keep up with a racer constantly changing vehicles and tracks—it’s challenging, and even when you catch up, the impact is fleeting. New employees come in, old employees leave, and the training you invested in can quickly become outdated or forgotten.

Solution: Build Guardrails for All Your Daredevils. To counter the effects of turnover, invest in technology that enforces a compliant process from lead to sale. This approach not only reduces the need for constant retraining but also ensures that every transaction is handled according to your dealership’s standards, regardless of who’s behind the handlebars.

Documenting and training your processes are a start, but technology that proactively enforces these processes is where real protection lies. Compliance training and audits are reactive—they catch problems after the fact. But with the right technology in place, you can catch mistakes as they happen, allowing you to correct them in real time.

Think of it like setting up a safety net for your daredevils. They might try new tricks or push the limits, but with the right guardrails in place, they’ll stay safe, and so will your dealership.

Dealership Investment

Dealerships often invest in technology to manage minor issues, such as key machines to handle $350 key fobs, because salespeople can’t always be relied upon to bring them back after a test drive. Yet, when it comes to the 100+ pages of FTC obligations, many dealerships still rely on people to manage these complex requirements manually.

This is where daredevils can find opportunities to exploit gaps in your process. By investing in systems and technology that enforce your desired outcomes, you can stop these daredevils from ever getting a chance to veer off course.

Stopping the daredevils at your dealership requires a proactive approach, a deep understanding of the risks, and the right tools to enforce compliance. By knowing and limiting your risks, removing the roadblocks to compliance, controlling the starting line of information, and building robust guardrails, you can keep your dealership secure and compliant, ensuring a smooth and safe ride for everyone involved.

Whether it’s fraudsters trying to pull off a high-speed heist or salespeople tempted to take risky shortcuts, your dealership will be equipped to handle whatever comes its way.

DDCE2024 Events

#DDCE2024 is a 2.5-day event, Oct. 8-10, 2024, at MGM Grand in Las Vegas that will bring together automotive dealers, OEMs, thought leaders, and solution providers to power business growth and connections. The 2024 Digital Dealer Conference & Expo is your chance to discover innovative solutions and gain cutting-edge strategies, actionable insights, and new ideas to implement for maximum impact.

Digital Dealer Conference & Expo will include:

• Enhanced networking: more meetups and fun ways to connect throughout the event
• A Speed Networking program, which offers dealerships and vendors a relaxed yet efficient way to explore a variety of innovative solutions
• An expo hall with 120+ cutting-edge auto retail solutions
• 75+ actionable sessions
• Masterminds and interactive labs
• And more!

Digital Dealer offers full conference and expo badge options, as well as an expo hall-only option for Dealerships/OEMs. Digital Dealer Conference & Expo attendee badge types include:

• Dealership (exclusively for dealers and employees of a dealership)
• OEM (exclusively for vehicle manufacturers)
• Allied (anyone that supports, services, or sells solutions to dealerships falls under this category)

Click here to register now.