• DigitalDealer-horizontal-Logo
  • ATTEND LAS VEGAS
    • Attendee
      • Registration & Pricing
      • Agenda At-A-Glance
      • Exhibitor List/Floor Plan
      • Sponsor List
      • Hotel & Travel
      • Hosted Dealer Program
      • FAQ
      • Mobile App
    • Exhibitor
      • Exhibit/Sponsor
      • Advertising Opportunities
      • Exhibitor Resources
      • Exhibitor Tips
    • Education
      • Overview
      • Show Schedule
  • ABOUT
    • Conference Overview
    • Best Of Awards
    • Become a Speaker
    • Press Inquiries
    • Partnership Programs
    • Health & Safety
    • Contact Us
    • Get Updates
  • RESOURCES
    • Webinars
    • Downloads
  • NEWS
    • Auto Retail News
    • Digital Editions
    • Press Releases
    • Submit Editorial
    • Subscribe
  • .
  • ATTEND LAS VEGAS
    • Attendee
      • Registration & Pricing
      • Agenda At-A-Glance
      • Exhibitor List/Floor Plan
      • Sponsor List
      • Hotel & Travel
      • Hosted Dealer Program
      • FAQ
      • Mobile App
    • Exhibitor
      • Exhibit/Sponsor
      • Advertising Opportunities
      • Exhibitor Resources
      • Exhibitor Tips
    • Education
      • Overview
      • Show Schedule
  • ABOUT
    • Conference Overview
    • Best Of Awards
    • Become a Speaker
    • Press Inquiries
    • Partnership Programs
    • Health & Safety
    • Get Updates
  • RESOURCES
    • Webinars
    • Downloads
  • NEWS
    • Auto Retail News
    • Digital Editions
    • Press Releases
    • Submit Editorial
    • Subscribe

DealerPoint: May 21-23, 2024
Conference & Expo:
October 8-10, 2024

REGISTER NOW EXHIBIT / INQUIRE
Q

NEWS:

Dealer Ops & Leadership | Marketing & Advertising | Sales & Variable Ops | Trending Industry News
January 29, 2021

5 Tips to Drive into a Profitable New Year

Posts:
Dealer Ops & Leadership | Marketing & Advertising | Sales & Variable Ops | Trending Industry News
January 29, 2021

5 Tips to Drive into a Profitable New Year

By Phil Spagnoli, Regional Sales Director, Elead

According to a report by the Economist, new-car sales will be up by 15% in 2021.I think we’re all happy to have 2020 in the rearview mirror. Now it’s time to refuel, refine and ride into stellar sales numbers.

Get every department in your dealership in tip-top shape and drive into profitability with the following five tips:

Tip 1: Market to new audiences. 

Commit to reaching new audiences this year. Millennials and Generation Z (those born between 1993 and 2007) are rapidly gaining buying power. Generation Z alone is estimated to have direct spending of up to $143 million, according to research company Frost & Sullivan.

These digital natives prefer to do their vehicle research on YouTube and spend their days using apps like WhatsApp and Snapchat. It’s smart to add these channels to your marketing mix. When it comes to messaging, authenticity and transparency are critical to them. They don’t want to be sold; they want to be informed. In their minds, your role is a consultant – helping them to find the best vehicle for their needs.

Many dealerships are outsourcing their marketing, which makes a lot of sense. An outsourced firm has many employees with different ideas and skillsets who can help you to adjust your marketing messages for different audiences.

Tip 2: Manage leads with an outside BDC. 

Furloughing staff helped keep profits up during the pandemic shutdowns. While stores were running lean, at the same time, online and phone leads spiked, so it’s likely that leads fell through the cracks.

If your on-site employee numbers are down, and you are struggling with lead management, lean on an outside BDC. A professionally trained automotive BDC can expertly handle an influx of leads and also make CSI and service calls. All lead information flows into your CRM so your salespeople can spend time closing the best opportunities.

Outsourcing is also a solid cost control move because you don’t have to pay high employee wages plus benefits. Yet, you get all the benefits of a professional team who will work long hours and never call in sick.

Tip 3: Sell with digital retailing. 

The pandemic proved that shoppers are ready for rapid digital change. Dealers with digital retailing tools experienced a spike in activity that’s likely to stay. It seems shoppers like to search inventory, take a 360-degree walkaround, review all pricing options, and get trade-in information – without stepping foot in the dealership. Yet only 15% of dealerships offer this online experience. Digital retailing tools offering “the Carvana experience” and seamlessly interact with salespeople to create quick and accurate quotes are needed badly. Dealers who continue to insist that shoppers come into the store will lose out to more forward-thinking competitors.

Tip 4: Build your service techs. 

As of late June, vehicle travel steadily ascended to pre-pandemic levels as most states and municipalities reopened. It follows that dealerships all over the country were, and continue to be, flooded with repair work. That’s a problem if you need additional service technicians. Techs are increasingly hard to come by and hard to keep due to cutthroat competition.

The answer is to build your own technicians. Hold an event or volunteer to speak at a local high school. Bring in someone young that you can train in your core values and processes. Then value them for their work. Younger generations thrive on praise and positive reinforcement. Hold daily or weekly meetings to talk about wins and single out top performers. Competitive pay plus recognition can stop attrition in its tracks.

Tip 5: Train employees to wear multiple hats. 

Leaner operations likely mean employees are wearing multiple hats. You may have a service marketing person taking over sales marketing. Or a service advisor who’s now in the service drive. Don’t throw these employees to the wolves. Offer some level of training so that employees don’t get frustrated and so that customers receive a consistent experience. Consider job shadowing or informal one-on-ones. Always reward good work with recognition since you are asking employees to go above and beyond.

These five tips will help get every department on track for improved profitability this year.

About the Author

Philip Spagnoli serves as Elead Sales Director for the Western Region of the U.S.

Dealer Ops & Leadership•Marketing & Advertising•Sales & Variable Ops•Trending Industry News

SHARE

Share on Email
Share on Linkedin
Share on Facebook
Share on Pinterest
Share on Twitter
← Previous Article Next Article →
Posts Dealer/GM News

New Research Reveals Age and Gender Differences in Vehicle Add-On Purchases

When consumers purchase cars at an auto dealer, they often buy supplemental products and services called voluntary protection products (VPPs). These provide additional coverage and protection for certain vehicle components or services not covered by
Posts Dealer/GM News

Nearly 4,000 Car Dealers Ask President Biden to Slow Down EV Push

Car dealers are asking President Joe Biden to “tap the brakes” in his administration’s electric vehicle (EV) push. A total of 3,882 franchised car dealers the U.S., calling themselves the EV Voice of the Customer, published the letter on No
Posts Dealer/GM News

New Research Reveals Age and Gender Differences in Vehicle Add-On Purchases

When consumers purchase cars at an auto dealer, they often buy supplemental products and services called voluntary protection products (VPPs). These provide additional coverage and protection for certain vehicle components or services not covered by
Posts Data & Analytics

Digital Retailing Continues to Grow at Auto Dealerships

A recent report found car dealers offering consumers the ability to do a deal online has grown to 40% in the last year—but an urgent need to cutdown on repetitive steps happening in the showroom. Nearly all car dealers currently using digital retai
Posts Dealer/GM News

Ciocca Agrees to Purchase 10 More Pennsylvania Dealerships

The Ciocca Dealership group is growing its holdings in Pennsylvania. The agreement has Ciocca purchasing Apple Automotive, the automotive division of York County, Pa- based Stewart Companies. Terms of the deal was not disclosed, with the final transa
Posts Dealer/GM News

Mercedes Launches First Charging Hub in U.S.

Mercedes-Benz is offering a change to the way Americans charge their vehicles in the same way Starbucks altered the routine of getting a cup of coffee. Mercedes, in a joint venture with MN8 Energy to launch a network of premium electric vehicle (EV)
Posts Digital DealerEveryone

Digital Dealer Unveils New Branding & Announces Launch of DealerPoint, Offering Targeted Networking and Driving Innovation

Digital Dealer has revealed its new branding and announced the launch of DealerPoint, a dynamic addition to its event portfolio.   This unveiling of the refreshed logos marks a symbolic step forward for Digital Dealer, aligning with its commitment
Posts Dealer/GM News

Hyundai Dealers Will Be the First to Sell Cars Through Amazon Platforms

Amazon is getting into the (virtual) car dealership business. At the Los Angeles Auto Show Nov. 16, the Seattle-based online behemoth announced auto dealers for the first time will be able to sell vehicles on Amazon’s U.S. store in 2024—with Hyun

NEWSLETTER

SUBSCRIBE

DEALER MAGAZINE

Dealer Magazine March/April 2023 Issue Featuring an Interview with NADA 2023 Chairman
MAGAZINE

Explore All Our Brands

FOLLOW US ON

  • Follow
  • Follow
  • Follow
  • Follow
  • Follow
© 2023 Emerald X, LLC. All Rights Reserved.

ABOUT    CAREERS    AUTHORIZED SERVICE PROVIDERS   DO NOT SELL MY PERSONAL INFORMATION   TERMS OF USE   PRIVACY POLICY