The DEETs Issue #3

Ford Europe Adopting Data-Driven “Advanced Franchise” Approach

Remember the idea Ford had a couple of years ago, about selling cars purely online with fixed prices and no physical inventory? Well, they’re kinda changing course now.?

After pushback from dealers and trying it out in the Netherlands, Ford has reconsidered this approach - especially in Europe. In Australia, they’re ditching the fixed prices and in Europe, they’re adopting a mix of digital and traditional dealership models - calling it the “advanced franchise” model.?

Essentially, they’re combining digital advancements with the strengths of the old-fashioned dealer network, hoping to use customer data to understand the buyer journey more accurately while maintaining the important role of their franchise partners.?

They’ve recognized that buying a car is a significant investment for their European customers, and they still like the idea of visiting a dealership and talking to a human before making the decision.?

Data sharing will be a big part of their approach, as their main goal is to use new tech to get to know their customers better while still offering the in-person touch. They plan to leverage data and technology as much as possible, to gain deeper insights into their clientele and track the buyer journey.?

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Trending

The new Renault 5 is so quintessentially French that it comes with a built-in baguette holder, designed to keep crumbs and flour off the upholstery while you transport your daily bread back from the boulangerie.?

Volkswagen has a plan to make driving in the Australian Outback safer by “sonically clearing” the road of kangaroos, via a sound emitter built into their vehicles. It’s a serious problem: roos cause 90% of wildlife collisions Down Under.?

A robot called ARRES (Autonomous Road Repair System) PREVENT designed by tech company Robotiz3d may look like a makeshift spaceship, but it’s designed to tackle potholes using AI. It’s only been tested in a lab so far, but it will soon hit the streets in the UK to start doing live repairs.?

Audi is recalling 17 different models in the USA due to an issue with the passenger seat occupant detection system, which might prevent the airbag from deploying in the end of a crash. (You can check your VIN here to see if you’ve got a faulty one on your hands.)

Better Communication Equals More Sales (Automotive Edition)

Let's face it: people order delivery and then HIDE from the driver. ??

People see a phone call and then WAIT for it to go to voicemail. ??

This is the struggle that comes with customer communication. ??

For dealerships, getting solid contact information and not fumbling the first connection is a big deal.

In our recent blog post, we covered:

→ Why the right communication channels build trust

→ What stops customers from following through with contact

→ The small changes a dealership can make

→ Why ContactVia is a potential solution?

You can read the blog post here.?

Interesting Stats at a Glance

• Nearly two thirds of new car buyers are women, yet barely more than 1 in 5 dealership employees are women and only 7.3% of people employed in automotive repair and maintenance positions are female. (Source)
• 15% of worldwide car sales in 2023 were electric vehicles, up from 8.9% in 2021 and 14% in 2022. (Source)
• According to data from the previous 20 years, the top three car-inspired baby names for boys are Austin, Cooper and Devin. For girls, the top 3 contenders were Morgan, Mercedes and, also, Devin. While 764,000 boys were given automotive-related names, only 142,000 girls had them. (Source)
• Which states have the best and worst roads in America? According to data from the federal Bureau of Transportation, Idaho tops the list with 94.78% of roads in acceptable condition.New Jersey had the worst roads, with only 50.71% meeting the standard. (Source)
• Americans demand four-wheel-drive when they are purchasing a car that will let them feel the wind in their hair. The best selling convertibles in the USA are trucks and SUVs, with the Jeep Wrangler and the Ford Bronco at the top of the list. (Source)

Authenticom Client of the Month

“Data is great, but unless it’s actionable data, I don’t want to look at it.”?

This month’s Featured Partner is Ryan Farina, Founder of Data Driverz.?

In the fast-paced world of automotive retail, even small decisions (from inventory management to pricing strategy) make a big impact.?

We talked to Ryan about how DataDriverz leverages Dealervault data with machine learning to generate AI insights for making daily decisions and enhancing sales performance.?

Can you tell us a bit about Data Driverz and the story of how it began?

I’ve been in the business almost two decades, starting with auctions. I was buying cars and started my own company early on. I was told that wholesaling cars was “like printing money,” but that wasn’t the case. I learned a lot, and I got into the franchise side of things almost 15 years ago.?

I started as a buyer and worked my way up, doing every position on the variable operations side. I ended up as the operations director for the group and I oversaw every department. We were able to grow to 22 stores in less than 11 years.?

I built a team around me and we did everything for the groups. We didn’t do it the traditional way where you have a used car manager, new car manager, etc. I called my guys the Navy Seals cause they did everything.?

What are some of the biggest changes you’ve noticed in the industry in the last few years, and how have they affected the way you approach things?

What we did is we really adapted to data. Over the last seven years (and COVID really sped things up), data has become so important and we have went all in.?

I wanted to put anything you would need to know in order to make big, impactful decisions, all in one report. I called it the Miami Report, because I didn’t want to be in Vacaville, California - I wanted to be able to make decisions from anywhere in the world.?

I realized that with data I could see how many leads are coming in and what drives leads, and I could dive deep into all those components. That kind of spins to where I’m at today.?

How does DataDriverz help dealers maximize profits?

It helps dealers understand where they can pivot daily in their business.They don’t need to wait until the end of the month to look at the numbers, because that’s too late.?

They will understand what the key components are to running the dealerships, whether that’s stocking inventory or buying the right inventory or improving customer response times.?

The platform takes data from the reports and uses AI to tell you what action to take. For example, our digital lot walk will tell you: are you missing photos? When was the last time you changed the price? What are we doing daily to improve the way we are representing ourselves?

DataDriverz connects with Dealervault, our data management platform that seamlessly pulls data from thousands of data management systems worldwide. Tell me a bit about how DealerVault helps Data Driverz do what it does?

So, to easily explain my tool, I would say that it is in addition to your DMS and your CRM and I’m able to get direct APIs from your DMS and CRM.?

I signed up with Cox Automotive and DealerVault to get all the dealers information I need from the CRM or DMS. Then, what we do is take 10 different reports within the CRM and DMS and make it into one big, actionable report that dealers can drill into.?

It’s a big equation. They have all the information they need right at their fingertips. How do we understand our business, our performance, our goals, and then take a bite of it daily??

Data is great, but unless it’s actionable data, I don’t want to look at it.?

What kind of opportunities do you think this is going to bring within the automotive industry over the next few years?

I want (DataDriverz) to be a tool that you can plug into alongside your DMS and CRM that will help dealers understand where to focus. I call it DataDriverz because I want to put dealers in the driver’s seat with their data.?

Eventually the tool will be fully simulated with machine learning and you’ll just type in your desired rate and it will tell you what you need to do to get there.?

Right now, the world is ran off a cell phone - and the world is based on data. And I think we can make data easier to understand. If we really hone in on the targets that move the business, it will help dealers focus on what they need to do.?

As long as we can set actions to these data sets, I think dealers are going to win.?

Merchants Fleet Reports Industry Trends

Did you know that although Regular Grade Fuel prices on the West Coast have continued to drop since they last peaked in the fall of 2023, they are still higher than the U.S. average??

The average cost per gallon on the West Coast since Jan 2021 is $3.94, compared to $2.75 for the Gulf Coast and $2.73 for the Rocky Mountain region.?

Why are gas prices so different according to region?

There’s a number of factors involved, including distance from the supply, transportation costs, state and local taxes and retail competition. (For example, retailers may consider selling gas at a lower profit per unit so that they can attract more customers and make up for it on volume.)

This is just one of the studies featured in the latest Industry Trends Report released by Merchants Fleet, the fastest growing fleet management company in North America. The report also covers insights on acquisitions, interest rates, the resale market and more.?

You can check it out here.?

Snippets

Where’s the best place to own an electric car? This study, by Kelley Blue Book and Realtor.com, identifies the top 20 spots in the country where driving an EV is a breeze. The study factors in both the availability of public charging infrastructure and the percentage of homes advertised as EV-friendly. San Jose, Salt Lake City and San Francisco top the list.?

Top tip: You are what you read and there’s a lot of great content out there that’ll help you grow your business. Find inspiration in these 10 Best Dealership Management Blogs.?

Missed the solar eclipse? Don’t worry, you’ll have more chances to see one over the next couple of years, depending on how far you’re willing to travel.?

Helpful resource: Check out this inspiring episode of The Dealer Playbook podcast, featuring General Manager Gabrielle Abinion of Fox Valley Volkswagen in St. Charles. Gabrielle shares her experience navigating a family business and forging her own path in a rapidly changing industry.?

That sinking feeling… The owner of a lovingly restored 1939 Packard Coupe looked on in horror as his vintage vehicle rolled into a California lake during a photoshoot.?

Does Your Auto Dealership Have a Word of Mouth Strategy?

According to an Ogilvy Cannes study, 74% of consumers consider word-of-mouth recommendations a critical factor when deciding to make a purchase.?

But most auto dealerships haven’t created a strategy for encouraging their customers to speak highly about them to their friends and family.?

Word of Mouth advertising doesn’t just happen. It’s something you can increase by taking strategic action to make your customers sing your praises. When you do, people will be more likely to mention their exceptional experience to others and promote your business without you having to spend money on advertising.?

What are some ways that an automotive dealership can increase their chances of getting great Word of Mouth referrals?

• Focus on providing excellent customer service and encourage customers to leave positive reviews on sites such as Google, Yelp and Facebook.?
• Come up with a creative “Talk Trigger,” as explained by Jay Baer in this episode of Inside Automotive. It should be something unusual enough to get people talking, but still appropriate for the context of your business.?
• Consider partnering with local influencers to promote your brand. An influencer is often a trusted individual within a small niche community, and their endorsement of your company will resonate deeply with their followers.?
• Data analytics can help you to gather insights into the buying patterns and preferences of your customers. Then, use those insights to tailor your marketing campaigns and customer service. When customers have a more personalised experience, you’ll be more likely to delight them so much that they mention it to others.?
• Create a loyalty program that rewards your customers with something of value, such as gifts, points, vouchers and discounts.?
• Partner with other local businesses in your area to set up a referral program, where customers get rewarded with gift vouchers for local shops and restaurants.?

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Around the Web

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Someone put a Go-Pro camera inside a tire with balance beads and drove around to show how it works, and it’s pretty fascinating.?

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Need a distraction? Can you solve the puzzle and put the tiles in the right order? (It’s harder than you might think!)

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A Nebraska woman has been arrested for scamming over 7,000 gallons of gas. A glitch that put the pump into “demo” mode allowed her to get nearly $30,000 worth of free fuel over six months.?

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Is this duck spinning from right to left, or left to right? (If you really concentrate, you can make it change direction!)

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A billionaire in Japan had a 200 million dollar race track built into the side of a mountain, so he had somewhere to take his wife and kids. (And if you aren’t in the mood for a drive, it’s also got an infinity pool, restaurant, gym and karaoke room.)

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And Now For An Important Legal Reminder:

Are you up to date on your state’s consumer privacy laws?

The federal government hasn’t made broad consumer privacy laws, so many states have their own. California was the first with the CCPA in 2018, and 12 other states made similar laws after that.?

The laws are different in each state, but what’s important to know is that most of these laws forbid businesses from treating customers differently based on their privacy choices.?

Privacy laws are enforced by state attorney generals and California allows limited private lawsuits under CCPA And CPRA.?

It’s absolutely crucial to stay up to date with your state’s laws, as compliance requirements regularly change. Penalties for violations range from $2,500 to $7,500, with the potential for higher fines depending on the infraction.?

If you have questions on what you need to do to stay compliant, our experts can help. Contact us here.?