Expert Automotive Knowledge at Your Fingertips

Best Practices

Upcoming Recession? Embrace This Overlooked Profit Center!

By

There has been growing speculation about the possibility of another recession, and experts seem to agree that they aren’t entirely sure if a recession is imminent. Historically, major economic downturns have led to challenging times for many businesses, including dealers. However, dealers can learn how to prepare for a potential recession by embracing an overlooked profit center: the parts department. The automotive industry was among the hardest hit during the recent Great Recession (2007-2009). More recently, the COVID-19 pandemic and supply chain disruptions have presented additional economic hurdles. Despite the financial challenges posed by the pandemic, numerous dealerships have found creative ways to boost revenue and grow their operations. A particularly effective strategy has been establishing a robust online presence for the parts department, which has not only helped overcome pandemic-related difficulties but also catered to rising consumer demands. According to NADA, in 2020, dealerships across the country saw a $6 billion decrease in parts sales. Data from RevolutionParts shows that dealers selling online saw an average increase of 27% in online parts and accessories sales during that year, highlighting how dealers can leverage online sales to offset tough economic times. So, why did RevolutionParts dealers enjoy an average increase in online sales amidst an economic downturn when many other dealers faced financial challenges? Because they were selling parts online during a time when few people were leaving the house, and most of all, because they were able to sell parts outside of their local market. Additionally, if we look at historical data, recessions often trigger an increase in parts sales. During the Great Recession, auto parts retailers like AutoZone, Advanced Auto Parts, and O’Reilly’s Auto Parts showed how resilient the parts industry is. While the stock market drastically fell by over 50%, stocks for companies like AutoZone and Advanced Auto remained steady. On the other hand, O’Reilly’s Auto Parts only dipped 10% in the beginning before seeing the start of immense growth in 2009 (see images below) and saw a massive increase in sales during this time, taking their annual sales from $2.5M in 2007 to $5.7M by the end of 2011. Why Recessions Give Auto Parts Retailers a Boost When a recession hits, the need for auto parts increases, especially for used cars, as the average age of vehicles in operation increases. This is because when people fall into hard financial times, they stop making big purchases, like new vehicles. While this presents bad news for dealers trying to sell new cars and seek a supply of trade-in vehicles, it can mean an opportunity for more parts sales. In an effort to save money, consumers are likely to hold onto their used cars longer. Older cars need more maintenance and repairs to stay on the road than newer cars, resulting in a higher demand for replacement parts. So what is different today compared to 2007? Today, consumers are more likely to shop online than during the Great Recession, a habit reinforced by the 2020 pandemic. Today, 74% of parts shoppers begin their research online, according to Hedges and Company. If another recession occurs, more people will be in need of auto parts, and the first place they start their search is online. Dealers have a unique opportunity to capture these parts buyers and drive more revenue to the dealership. Here are some key benefits to embracing your most overlooked profit center and developing a strong parts eCommerce strategy: Diversifies Revenue By expanding business operations to include online parts and accessories sales, a dealership can diversify its revenue streams and reduce its reliance on traditional in-person sales, which can be negatively impacted during a recession. The COVID-19 pandemic highlighted the importance of diversifying revenue streams. During economic uncertainty, relying solely on traditional in-person sales can be risky, as demand may decline or supply chain disruptions may make it difficult to acquire and maintain steady inventory. Online parts sales can help dealerships reach customers outside their local market. This can be particularly beneficial for dealerships in areas with a small population or limited demand for new vehicles. Increases Parts Accessibility Selling parts online makes it easier for customers to purchase the parts they need, regardless of location or time of day. This can increase sales and customer satisfaction, as customers now expect convenience and accessibility when purchasing goods and services online. By offering parts online, dealerships can meet this demand and provide quality customer experience. Maintains Low Overhead Costs By offering parts online, dealerships can increase profitability without having to add more labor or fixed inventory costs. Selling parts online allows you to sell more parts with fewer staff members than the traditional in-person sales model, as orders can be processed automatically through an online platform. You also can avoid investing in a larger inventory by simply selling what you have on hand and only ordering from the manufacturer the products that have already been ordered. This can help maintain low labor costs and increase the dealership's efficiency during economic uncertainty. This can also help a dealership maintain its sales growth even when understaffed or with limited capital available to invest in additional inventory, which is needed to support traditional parts wholesale channels. Gives You a Competitive Advantage Dealerships that offer parts for sale online can gain a competitive advantage as customers increasingly expect this level of convenience and accessibility. In today's highly competitive retail market, dealerships must stand out from their competitors in order to successfully grow their sales. Offering parts online can be an effective way to gain a competitive advantage and attract customers by providing a level of convenience and accessibility that is highly valued. Ideally, dealers should offer customers the features they expect from a best-in-class eCommerce experience, including multiple payment methods such as credit card and installment options, plus delivery options, including same-day, next-day, and ground service. Provides Better Customer Insights Online sales platforms can provide dealerships with valuable customer data, including purchase history and buying preferences. By analyzing this data, dealerships can better understand their customers and tailor their sales and marketing strategies to meet their customers’ needs. They can even reach out to parts buyers to engage them with marketing campaigns for their service lane offerings. This can help dealerships improve long-term customer satisfaction and loyalty, which can be crucial during challenging economic times. During a time when vehicle owners are keeping their cars for longer and trying to save money, selling parts online and embracing your most overlooked profit center could be the key to recession-proofing your dealership. Overall, the benefits of selling parts online cannot be overstated for dealerships looking to thrive in the face of economic uncertainty. By offering an additional revenue stream, increasing customer accessibility and convenience, maintaining low overhead costs, and gaining a competitive advantage, dealerships can expect to maintain profitability during hard times.

Commentary & Insights

Meet Kaylee Felio

By

Sales and Marketing Director of Parts Edge The Start Growing up, my dad was a carpenter and worked in construction, and my mom would occasionally work jobs to supplement our income. At one point she helped my grandpa run his garage door company, but she mostly managed the home and was always there for us. I remember calling out sick from school sometimes because I wanted to hang out with her at home. In 2008, the recession impacted my family, along with so many others, quite severely. My dad lost his job and it seemed like no one was hiring. But other things were going on that we didn’t realize then. My dad had become addicted to painkillers after injuring his back on the job years prior. He was still working, but then the crash happened, and everything fell apart.  We lost our home and our vehicles. It was a really tough time for us. Luckily I had already started working. My older brother was my role model. He started working at 15 and had his own car by 16. I wanted to be like him, independent.  A friend of mine was working at Subway, she got me an interview, and I got the job. I didn’t have a car yet, and I was so fortunate that my parents would often drive me to and from work. I had always loved Subway as a kid, so it was a perfect fit for me. I remember working a lot, especially at night. I was in high school at the time and took a work experience class. We had to log our work experience hours for credit, and I remember that mine had to be under-reported due to my age. I was around 16 then; so much had happened in such a short time.  The Foundations “I remember seeing people in suits and thinking: I want that. I want to have a career.” The owner of the Subway store approached me and asked me if I would like to manage the new Subway store she was opening up the road. She was building the store from the ground up, launching a new franchise business; it was an excellent opportunity for me. Also, the store shared a parking lot with PartsEdge . It actually still does. I always wanted to work, but I never really dreamed of going to college in a traditional sense, and after everything that happened, I really didn’t want to take on that kind of debt. That said, working in a leadership position at such a young age, I was still in my late teens at the time, and interacting with customers taught me so much. I knew that I wanted to develop and grow into a career.  I had settled in well and was really enjoying the responsibility when two of our regulars came into the Store and spoke to me about a vacancy they had at their business across the lot, PartsEdge. I didn’t know anything about automotive or parts at the time, but something felt right about it. I knew it was an opportunity that I needed to take. I started out in a client support role. I had always been interested in the sales function of the Business, but there was yet to be a vacancy. I spent some time with PartsEdge and loved the company, but the longer I worked, the more I realized I needed to be in sales. So I decided to pursue a new opportunity that would push me and allow me to pursue my goals of building a career in sales; I got my Real Estate license.  “I had my license for about a year, sold a few houses, and realized that this just wasn’t for me. I wasn’t happy. I didn’t fit in.” It was around that time that I heard that there was a vacancy for a salesperson at PartsEdge and so I contacted them. I had always known that we could have done more, and I had big ideas and goals that I believed could really impact the company; they were giving me the opportunity to implement them.  The Wins  “It was tempting to do everything, but I realized that I couldn’t do it alone, and we needed help.” The first task was to update our brand and website. It wasn’t delivering the message we wanted to convey. Initially, I was unsure what to do and needed to figure things out. I was new to marketing but it felt natural. I spoke with clients, got testimonials, had conversations with my bosses, and understood our brand’s purpose. I had also met someone through the real estate business who specialized in marketing and was starting her company. We hired her to help us update our website and assist us with strategically aligning the company. After talking to many parts managers, I realized that they needed more resources, and by providing them, we could increase awareness and interest in our company. We worked on marketing campaigns and connecting with customers, which required constant attention and focus. LinkedIn was an excellent platform to showcase our brand and connect with others in the industry. The more we engaged our customers, the more it became evident that pushing our technology, alongside our technical understanding of their needs, could greatly serve our customers and our industry. Parts managers deal with a lot of data and can significantly benefit from advanced technology and focused strategies. It’s incredible how much impact this can have on the success of a parts department. “Parts need the same attention and care as used cars.”  Some parts managers manage around 20,000+ parts in their database, and if dealers treat them as they treat their used car department, they would see better results. The goal is to give them the tools to figure out what they need to deliver a better customer experience. Utilizing data and market demand, we are helping our customers figure out when they need parts and, overall, improving the department’s efficiency. There is a huge need for technology to effectively manage and support the parts department, we provide that alongside a deep technical understanding of their department’s challenges and the opportunities that come with it. The Future I set goals last year that I initially thought were unattainable. I wrote them down anyway. Surprisingly, not only did I achieve my goals, but I even exceeded them, which feels amazing.  I want to continue growing, I am setting even bigger goals. More dealers are starting to understand our products and services and how it can impact their business. I strongly believe in the value of what we offer, and it’s rewarding to see the excitement of parts managers who have been in the industry for many years, who have so much experience, who are successful at what they do, ask me, “where has this been all my career?” Our idea is not new, no one else on the market does what we do and our marketing and sales strategy is giving it the light it deserves.  Personally, I am recognising that it’s okay to desire more, to want to grow and to not feel guilty about what I am achieving. I never thought I would be able to be a mom and have a career. I am so appreciative of everything around me but I am learning that it is ok to continue to strive. I am learning to believe in myself, to accept the success and to appreciate what I have. I will of course continue to host my podcast, The Parts Girl Podcast. I look forward to the people I am yet to meet, to interview them, to learn about them. Seeing their joy in sharing their experiences and learning from them is very fulfilling.

Commentary & Insights

Meet Jacci Grillo-Noto

By

Director of Sales Northeast Kelley Blue Book ICO at Cox Automotive Inc. "I thought I wanted to be a Marine Biologist, but I didn't want to live on a boat for three years studying algae." The Start Jacci is a self-described "girly-girl" and the idea of not having running water or electricity on board would result in a diverse career path change. One involving Disney, WEEI-FM Sports Radio, and an incredible tale involving a committed recruiter called Felix, who played a large role in introducing Jacci to in-depth learning in the world of automotive.  Jacci Grillo-Noto: I grew up in upstate New York, an only child with two parents who were married my whole life.  My dad was an engineer, but he was also an executive on the board of the IBEW, the union for the International Brotherhood of Electrical Workers. As an engineer, he would wear a jumper all day and then change into a suit to attend board meetings by night. I thought it was just fascinating. My mother was an artist, and she was hired to draw the first personal computers. Unfortunately, those personal computers she drew replaced her, and that was where her technical artist career ended.  DMM: "I was technical, business and art-oriented," she shares, "well rounded, but an unusual combination at the same time." Jacci decided to pursue business studies, took many Administration, Economics, Human Resources, and Law courses, and attended college in Florida, Rhode Island, and New York.  Jacci Grillo-Noto: I was living in Providence and still in my early twenties when I became very sick. I had been diagnosed with cancer. And I was so young and naive; I was focused on the test I had to study for, the friends I wanted to meet for dinner. My mother had come up from New York to take care of me. We went through that for three years. I had an incredible doctor who was methodical and took good care of me. Eventually, my health insurance was running out. So I left school and got a job as a bank teller. I worked my way up and became an assistant branch manager before I realized I could make such a bigger impact as a mortgage broker.  After some time went by and the business began to change, I remember thinking how strange it was to be able to offer mortgages without detailed documentation. Before all of that began to collapse, I left the mortgage business voluntarily. Something didn't feel right.  The Foundations "I went to work for Disney."  I had worked for Disney in college in Florida. I worked for Radio Disney who was first owned by ABC television, then by the Disney Channel. I got to do a lot of work with some of the up-and-coming Disney Channel tween stars. These kids had their own TV shows, and I was planning events surrounding their arrivals for concerts and appearances in Providence, Boston, Albany, and Hartford markets. My daughter Jessica was around 12 at that time. It was the perfect age for her to hang out backstage with all these tween stars. I loved working for Disney and taking my daughter to all the events with me. I was very fulfilled. I started noticing a shift toward digital, which seemed important to me. However, no one was focused on monetizing digital at Radio Disney locally yet.  I felt that Disney wasn't doing enough quick enough then. Digital was just starting to become a new marketing channel when I was approached by WEEI Sports Radio.  The Wins "We want you to teach seasoned radio people how to sell non-traditional media." They already had established online traffic, but selling digital marketing space was brand new to WEEI. It was my first Director of Sales role. I thought okay, I have this title. I have this suit on; it was yellow and black, resembling something Hillary Clinton would wear. I pulled out all the stops, it was intimidating, and I wanted to show up. I put everything sports-related that I owned on display in my office. I had baseball cards. I had a homerun baseball that somebody in high school gave me. I had pictures with some ex-Yankees that I put up. I didn't realize how important it was that these were rival teams! This had been a really big transition and completely new, but it was one of the best experiences of my life.  Although I had played and watched sports with my father my whole life, I never really understood a fan's obsession with rivalries because NY had so many teams. Finally, I began to experience how love for a sports team or sports brand could translate to marketing. It was also my first time working in a male-dominated industry. I brought a lot of marketing knowledge to the table and was willing to learn and adapt to the unknown. I learned so much there. "We went from $0 to $12 million in billing” I unfortunately got sick again. My personal life was deeply impacted. I ended up fighting cancer and going through a divorce at the same time. It was probably the most heart breaking time in my life. I went back to work, and I wasn't really happy. I wasn't fulfilled anymore. I needed a change. I had a bunch of companies recruiting me. Autotrader had been knocking at my door for a while. I remember telling the recruiter, Felix. I don't want to work for you. I don't want to work for your paper magazine because I’ve been in the digital space so long. I was polite, but I was just not considering it at all. He was persistent and eventually he led from a perspective that he knew would spark my interest; "I want you to look up this Cox Automotive website, look at what they do for the community, look at the culture."  They had gone completely digital, and everything that really mattered to me was there and I almost missed it. As a digital creator and a repeat volunteer for dozens of organizations, I saw what I needed to see to convince me to pursue a career future with Cox Auto. I didn't click immediately. I was good at certain aspects and then not so great at other aspects of the job. So they sent me to NADA Academy, and I had the opportunity to work in an office at an eight-rooftop dealer once a week. I would engage and meet with everyone in the dealership and began to understand the business from the inside. I started to fully embrace and understand the industry and the people. It was an amazing segment and experience. "At the time, my book of business had 65 dealers. Now I oversee 50,000 dealers in my book."  I ended up being number one in my divisions for many years. I won top awards for several consecutive years and have been promoted seven times. After my entry level position,  I became a Product Specialist, a Regional Sales Manager helping launch Kelley Blue Book on the listings side when Cox bought the site, and then went into Trade-In Marketplace leadership. I am now the Director of Sales for Kelly Blue Book Instant Cash Offer, and I feel that I have come full circle in my career. The Future I have always been focused on impacting the teams I work with. The bigger the team, the more people I can impact, those are the accomplishments to which I look forward. I believe in individual development plans, building trust, investing in people, and helping them grow. My approach to leading teams and driving sales has always been to start with an analysis of the weaknesses, which to me, are opportunities. Performance gaps are often gaps in learning. My coaching approach is to understand the gaps and create a structured plan to fill them.  I believe that personal development is important. I recently graduated from Purdue University. Even though the whole world was going through a pandemic, I knew that I needed to get up, exercise, and get ready for my day, and at night, I would go to class and study. This directly impacted my son, Ethan, who wrote about how I had influenced him in a school project. It is important to understand how influence can drive progress and help mould those around you.  I want to spend the next few years impacting people inside and outside the automotive community by sharing my experiences. Right now I am getting so much joy from meeting with and speaking to local high school students. I feel like it is such an important time in their lives, and I want to continue to provide coaching and support their career preparation. But, of course, I plan on doing this all while still building my career with Cox. I want to retire from here; I remain completely committed to my team, the brand, and our communities. 

Reviews

People in Automotive: Introducing Arnold Gacita Sr

By

– Founder of Petra Automotive Products!  I am so thrilled to debut my new feature in Dealer Marketing Magazine where I get the honor of introducing you to someone in our industry who deserves the spotlight! My first “person you should know” is Arnold Gacita Sr., Founder of Petra Automotive Products! I hope you enjoy reading about him as much as I enjoyed interviewing him. Keep your eyes out for this feature every month!  Arnold, thank you for being my inaugural guest! Tell us a bit about Petra and what you do in the industry?  I've been in the automotive industry for 31 years in aftermarket products. Anything that has to do with automotive chemicals or fluids inside or outside your vehicle, I’ve been a part of for over three decades. During the first portion of my career, I worked for a company that was the largest fluids provider worldwide. I left them to pursue the American dream of owning my own business and I’m happy to report this month will be our 13th year in business. We are the fastest growing chemical company in the US, manufacture products for five OEMs, and are in 38 countries. We have over 1000 people on the ground selling Petra, representing 336 products.  Your growth is astounding. What would you say Petra brings to the industry that helped fuel this success?  A lot of our competitors go into a dealership and talk about the product, the technical aspect of the product, and what that product is going do to the car. And we do that too, but we don't focus on that. We believe that we're partners with our dealers, so we focus on keeping them healthy and profitable.  We develop programs like a lifetime warranty. If a customer comes in and gets one of our services at any dealership, that customer is covered by a lifetime warranty. Customer retention, business development, partnership buying up, making the dealership more gross – these are the things we focus on for success. You have an awesome non-profit called Petra Cares – tell us about it.      We’ve always been heavily involved with charities. We’ve worked with Giving Hope out of New Orleans for a very long time and built an orphanage together in Brazil.  I wanted to open something similar to Giving Hope in Houston. I put together a phenomenal board with some top players in Houston and started talking to chambers of commerce, judges, people in our local politics etc. We found a need here in Houston that nobody was addressing. There’s a program in the US that pays for foster children who attend University, if they qualify. Ninety percent of the kids who exit the foster care system don’t apply. They want out because they've been part of the system for so long. Ninety percent will not accept the money. Of that group, 80% of them are either dead, in jail, or homeless in three years and the average lifespan is 23 years. These kids need to be told they have purpose, there’s something better for them and they can do it. So through Petra Cares, we’re going to go get those 80%, we're going to bring them to Petra through a partnership with Lone Star College. We're going to take 60 students a year and bring them through a six week course to be a level one mechanic, with one week of life skills as well. And after seven weeks, when they graduate, we have dealerships nationwide who have agreed to hire them. They will leave the Petra program hired by one of our dealerships. Now they have a purpose. Now they have an education. Now they have a job.  So not only do we change their life, but all the generations to come after them.  You obviously have a very kind heart and are driven by helping and creating community. What is your why?  My why is to see people become better than myself.   What have you seen as a major industry trend that's coming out over the next year or two?  I think most people are re-thinking trading in their car for another car. Because of the economic situation, the uncertainty, the interest rate going up, they're keeping their cars longer.  The average car ownership stat of 12 years is going to slightly tick up. What does that mean for service departments?  Service and Fixed Ops are going to have to be strong to carry 80% to 100% absorption at that dealership.  Tell us something about yourself that most people don't know? I love to cook, and when I say cook, I mean I love to cook good! Like snapper with white wine garlic sauce and crab meat on top of it. I love to barbecue. I have a barbecue team that used to go into competition and we have never lost on our baby back ribs.  Want to reach out to Arnold and his team for more information? Visit  www.petraautoproducts.com  or  https://petra-cares.org/

Get Tips & Tricks every Week!

Join our newsletter and get news in your inbox every week! We hate spam too, so no worries about this.

Commentary & Insights

Meet Adam Dennis

By

Principal at SurgeMetrix The Start Adam Dennis grew up in Rhode Island and described himself as “a relatively athletic geek”. He played football and track and field, but also loved reading books on science such as Isaac Asimov's Guide to Science . Adam says that he started working early with a yard business in his neighborhood and serving as a commercial fisherman with his brother. “I had to save money for college, which drove me to work hard. I did anything I could to get ahead.” “I have done a lot of different things. I like to keep busy.” Meeting with Adam Dennis to talk shop is like sitting down and plugging into several educational podcasts simultaneously. His energy, speed, and ability to navigate numerous topics and bring them back around are remarkable. Moreover, he is knowledgeable about technology, cybersecurity, the power of data, and marketing, making for a great combination of skills and experience. The desire to work hard and do anything to “get ahead” is reflected through Adam’s early years after college. Adam Dennis:  In graduate school, I started a nonprofit graduate student organization dedicated to issues important to our student community. I worked with grad students from around the US (well before the Internet was popular). To fund our organization, and address a critical need for many of us, we started a national health insurance plan for grad students, sold from school to school. What’s amazing, and quite rewarding, is that the organization is still around to this day!    DMM: A few years later, Adam started another nonprofit that provided training to at-risk youth trying to get out of the drug trade in Washington, DC.  “It was quite successful, only two blocks from the White House,” Adam shares. “The kids traveled across the city after finishing school and took training courses in website development and network security.” Educational professionals visited the program from as far away as Japan to discuss the program’s methods and objectives. “We enjoyed what we did and it showed. I take this same attitude with everything that I do to this day.”   “As for my start in automotive, it was largely a fluke.” The Foundations Adam Dennis: I started a SaaS company in Baltimore in 2000. We began by offering a website CMS to a wide range of customers, but then branched into providing it to car dealers shortly after we started. From there, we customized the CMS for dealers and added a whole bunch of other tools, from an inventory display solution, to lead tracking and various other customized tools focused on optimizing dealer operations. I ran the company for five years and then sold it in 2005. DMM: Adam moved to Antigua after he sold the business. “My wife is from the Caribbean, and my in-laws live in Antigua,” he shared. “They are two of the best people I have ever met, so I wanted my kids to grow up around their grandparents instead of just seeing them every 6 months. So, in December 2005, we packed up our house and moved to the islands.” The Wins Adam Dennis: I consulted for several years, both inside and outside of automotive. Then, Dominion Enterprises, who had bought my company, asked me to come on as VP of Software Development and improve the operations of all of their acquisitions’ software teams. “Many of the acquisitions had tech teams that worked hard, but needed to integrate, and have a shared best practice driven value system for producing and engineering their software. That was my job: optimize teams and improve the stability and usability of the software that we produced.”  DMM: After six years, Adam had achieved the mission. “I had done what I was asked to do, so I approached the leadership and informed them that I was no longer needed. That might be surprising to some, but I took this action because I never want to be the Maytag repair guy who sits around with little to do. To Dominion’s credit, I was given a nice package and left the company in 2019.” Adam took some time off before being approached again by Dominion, “I ended up buying their web arm, a part of which I had originally owned and sold to them back in 2005.” Adam and his team reshaped the business, and SurgeMetrix was born.  Adam Dennis: The company was struggling when we acquired it, so for the next six months we focused on stabilizing our revenue, collecting data, evaluating options, and, most importantly, making our customers happy. We reshaped our image and began offering Hispanic marketing services alongside our website and other SaaS offerings. We were doing well, until the COVID crisis and chip shortage hit. This led us to expand our offering to include rich data on the digital ecosystem around a dealer website, such as the demographic composition of the community around the dealership, competitor positioning, and website performance. We needed data so we wrote software that could analyze dealer website performance across the country as well pull in demographic and advertising data too. This data was used to inform work we did for our customers so that we could be sure we gave them the best services possible whether for a Google optimized website or Hispanic marketing services. The pieces fell into place.  “Some dealers spend 100% of their budget on 60% or 70% of their market. It makes no sense.” There is a lot of bad marketing going on in our industry. We have found that in some places, especially around big cities, the Hispanic population is as high as 30-40%. If you operated out of Boston, you wouldn't ignore the Irish culture in your marketing plan, but instead would shape messaging accordingly. Good luck if you ignored St. Paddy’s Day! When the chip shortage hit, many of the dealers in our pipeline decided to hold off on marketing until things settled down. So, we pivoted and started talking to OEMs about data points on the Hispanic population. This was in response to one OEM’s inquiry about the density and composition of Hispanic populations in different parts of the country. Our data service, SurgeRecon, provides information that allows us to analyze the digital ecosystem around the dealership and its competitors. We have successfully built a double-barrel approach to our service and product offering for the dealer community. Efficient websites, and the Hispanic data to position the marketing message specific to the location, are all backed by data. “There was a time when we were not concerned with website sales, but we realized that they were selling without us allocating resources to that part of the business. We have discovered it is in our DNA. We create websites that load quickly, are easy to use, and are focused on selling cars.” The Future Adam Dennis: Finding and solving pain points for dealers is important to us. SEO, an incredibly valuable part of any marketing strategy, too often is ignored or seen as a costly option if the strategy is to generate keyword rich content on a regular basis. Enter SurgeAI, a new solution that we’ve assembled from our tight little team of programmers.   Think about the work that it takes to produce a steady supply of keyword rich content for social media and a dealer website… You need to decide on the messaging, get someone to write the content, and then push it online.   What if instead you could use a tool to quickly identify topics and then generate unique content for your dealership, a dealer group, or even an OEM, which has hundreds of dealers, in only a matter of minutes? Too good to be true? Nope.   What if you could also take that same content and automatically translate this content into Spanish flavored to the dominant country of origin around a dealership? Is that too good to be true? Again, no. SurgeAI can do both with ease. “This is fun stuff. It reduces what used to take days to produce, down to just seconds and minutes.”   Making things even more enticing, we’re creating APIs to feed this rich content to social media outlets such as Facebook and a dealer’s Google Business Profile. Business is flowing and what started as a tough challenge, has begun taking shape. We recognise our DNA which is rooted in our data recon abilities, and we are committed to creating solutions that help dealers succeed in an affordable way.  DMM: Adam and his team enjoy their work and love working with dealers. Adam likes talking about the dealers that have become friends over the years and the role relationships play in the business. He also loves data, a core component of all of his articles.  With much more to come, we look forward to what new things he and his team will do and discuss through Dealer Marketing Magazine.

Commentary & Insights

The 4 Must-Haves for Any Company Rebrand

By

Your company’s story and messaging are the core of everything: it’s how you market, how you sell, and how you retain loyal customers. The story is the backbone of your company’s brand and should permeate every aspect of the business. That’s why rebranding your company is such a big project – it’s a chance to revisit the essence of the company and apply it to every part, big or small. Rebranding is a journey to take only if the name, logo, and tone of your brand no longer do your company justice. Whether it’s outdated or misaligned, the decision to rebrand should be intentional and purposeful.  The rebranding process takes time. Dedicating the proper resources and creating a robust timeline is the best way to ensure a frictionless process. Here are four things that helped our company manage our recent rebrand: Start with buy-in  Before beginning any process, it’s critical to get executive buy-in on the process. As mentioned, a rebrand is no joke, so making sure you’re aligned with the leadership of the company will set up the process for success as it becomes a company priority.  In addition to getting leadership buy-in, establish an internal committee responsible for providing feedback along the way. The committee should include different team leaders and members from various departments to keep the feedback as expansive as possible. You want different opinions and perspectives, so ensure the makeup of this committee serves that purpose. Keep the committee intimate and controlled; we found the sweet spot to be about 5-6 people representing different areas of the company.  Once you’re set on a final direction, employee buy-in will kick in. Prepare your team with the tools they need to understand and embrace the change.  Stick to a project plan Creating a master project plan is best practice as there are a lot of moving pieces in a rebrand. Start with a master list and break down tasks by department. Once tasks are assigned, you can rely on department heads to fill in specific details along the way. Use organizational software like Asana or monday.com to help organize the project.  It’s also helpful to create mini-deadlines to support the major deadlines. If you plan on launching your new brand on a specific day, make sure you create deadlines to hit certain milestones before launch day. This will break down the project into smaller, more achievable tasks.  Lastly, you will likely benefit from creating a phase 1 and phase 2 of the project. A rebrand is no small project, and it may be impossible to accomplish everything before launch day. Creating a phase 2 allows for more flexibility and can re-energize the teams heavily involved in the project.  Create a comms strategy  Aside from the master project plan, there should be a separate communications plan that maps out the messaging for each specific audience. How and when will you tell external stakeholders, journalists, enterprise partners, and clients about the rebrand? What does communication look like? Who will be handling this on behalf of the company?  It’s also critical to create an FAQ document for your clients and employees so you can answer any concerns or common questions that will arise.  We used the table below to help us prepare our comms strategy:  While it may seem unnatural, it’s important to make a big deal out of the rebrand, so it helps get your brand’s new story out. Be obsessive about it so the news can spread and you can feel good about the work you put in.  Setup a “war room” The rebrand doesn’t end on launch day. Once the news is out, you want to set up a post-launch execution room with your top players. There will be certain things you can’t set up before the news is out, so this dedicated time will let you focus on pushing live anything that couldn’t be set up pre-launch. You should have a running list of these items, so prepare a checklist prior to launch day, as launch day will be exhausting. Expect things to go wrong and be prepared to fix them. This time is dedicated to setup spillover, inbound questions and requests, and to head-off any mishaps.  Rebranding a company’s story, logo, design, and/or messaging is a big deal - so prepare for it. Be consistent and aggressive with aligning your team, departments, and all stakeholders around the change. And, of course, use the opportunity to create buzz and news about your company. This is your time to shine!

Commentary & Insights

Retail is an experience, not a location

By

Retail is NOT a physical location. RETAIL IS AN EXPERIENCE.  This statement may raise questions, prompt pushback, or lead to realizations. Retail across all industries began to shift long ago. We can credit or fault disruptors like Amazon for pushing the boundaries and expanding the concept of retail to include digital experiences. But even Amazon has blurred the line between physical and digital with pick-up/drop-off hot spots and a few retail store outlets. While I don't love the term "phygital," it conveys the idea that physical and digital are now blended and part of a single experience. Charles Dunstone, founder of Carphone Warehouse, stated that "the future of retail is the integration of internet and digital experiences and services with the retail network." This is an interesting perspective, but what does it mean for automotive retail? The industry was already experiencing a significant shift, which was further disrupted by the global pandemic. This disruption was compounded by a significant supply shortage that caused inventory issues. As a result, we are now facing fast-moving customer expectations and shifting business models in the industry. Despite the uncertain future, there are numerous paths to achieve greater value and opportunity. The questions become: what do we want to be, and how can we deliver it?  We must develop core capabilities to flex our muscles and future-proof our business. What could it look like? Sometimes it's easier to look outside of our own industry for examples and benchmarks to understand the actual experience and benefits without getting caught up in what can and can't be done in our own business. In the world of the Future of Retail, I would like to bring up Disney, perhaps surprisingly. Not the Disney store in your local mall, but the Disney Park in Orlando. If you've been there in the last 5-10 years, you've probably noticed the advancements in personalizing the entire experience. Here are a few highlights of what they provide (and the experiential capabilities): A personalized trip plan that's tailored to you and your family's needs and desires, created before you even depart for the trip Online and offline tools that work together to create a seamless experience The ability to meet the characters of your choice and highlight certain themes and areas of the park that are your favorites Suggestions on shows, pop-up meet-and-greets, and other immersive experiences to enhance the personalized engagement A connected bracelet is given or worn upon entry to the park to accommodate location-based services (tracking, payment, selected experiences) The ability to choose rides, preferred times of day, food selections, and other amenities in a planned and time-windowed preference Overall communication, alerts, and updates to facilitate the desired experience throughout the day. So, you say, that’s great, but what does that have to do with automotive retail or retail? I would suggest that this is exactly the future of the retail experience. Well, let’s break it down. It offers the basics of retail; goods and services available, shopping, buying, servicing, and experiences (that are very personalized). But it does it in a way that is so much more than transactional. This retail experience is: Personalized Needs-based Highly experiential Immersive Digital and Physical Supportive Memorable and ongoing (carries on after the original visit) Interactive …and extremely human-centric (despite all the bells and whistles, it is still focused on the people) Is there anything in the experience above that we think should not be possible or available in an auto retail experience? While the cost of Disney is getting extremely expensive, we still pay 10x-20x that amount for a vehicle transaction. Shouldn't acquiring a vehicle be as engaging, personalized, easy, delightful, memorable, and immersive as described by a customer? That's what we want in auto retail, yet we often fall short of these capabilities and benefits. While we may all agree that some or all of these elements would be desirable and beneficial, the challenge is in figuring out how to achieve them. So, what do we do? While recognizing the need for change and transformation is crucial, it's even more critical to determine how we can seize this opportunity and make it beneficial to our long-term success. How can we future-proof our business? I believe we need both a Mind Shift and a Business Shift. We cannot improve or achieve what we do not measure or set as objectives. The traditional measures of success in the automotive retail industry focus too heavily on transactional events. While sales, profits, and margins are important, the focus needs to be updated. To drive the necessary change and successful future business models in auto retail, we need a mindset shift. The following are some of the key areas where this shift is necessary: Experience-driven, not transaction driven Need Management over Lead Management Personalized, not mass marketed Customer-managed relationships (customer in control), not Customer Relationship Management (CRM) Human-centric, not Product-centric Omni-channel experiences, not one-channel events Human-centric, not product-centric Restructuring of Talent Management and compensation aimed at customers for life and experiences, not transactions. These may sound obvious, but without these as objectives, supported measurements, and infused into our business model and business processes, they do not happen. These must become our North Star view of success and capabilities. They also need measurement, training, focus, and ongoing innovation and support. Thus, next comes the business shift. We are witnessing numerous pilots and experiments in new retail storefronts and immersive design, as demonstrated by Porsche. We are also observing new sales and demand management models, such as regional warehousing and agency sales models. Additionally, we are seeing a greater influx of technology beyond traditional dealer management systems. As a dealer, it can be more effective to start with the customer and their current and future needs, rather than simply implementing massive business model shifts and new technologies. Customers desire mobility, personalized offerings that meet their journey needs, and an easy, trustworthy, and accessible process that fits their schedule and preferred channel. Therefore, to truly understand the customer, we must capture all relevant data and insights possible, to be agile and flexible in assessing and executing against their needs. Although dealers currently possess a lot of data, we lack a clear and visible view into one customer, one journey, with multiple needs. Furthermore, our current business model and capabilities do not make it easy for us to proactively respond and offer solutions to those customer needs. Unless the customer engages us, we typically do not discover and meet their needs until it is too late. Assuming that our goal and North Star is to enhance the customer experience beyond the basic transactional model of today, we need to align our data and insights, metrics and measures of success, people and training, processes and workflows, and tools and enablers to support that target operating model. Currently, a sequential, transactional, one-way experience is the norm, and trying to restructure outcomes from within that framework is ineffective. Instead, we must change the operating model and framework to align with the new definition of success. This is a simple concept, but not easy to execute. It requires clear goals, alignment, and an agile, ever-transforming process. Some of the key business shifts will include: More insightful use of data Processes and workflows focused on experience, not transactions New key metrics and objectives instilled and measured Talent Management and Reward structure in line with the objectives Building of agile capabilities aimed at customer experience and mobility access for customer A defined Target Operating Model to address the “to be” state …there is much more to continually do, but it does start with getting a clear vision of “your customer experience” and how you can deliver against that. Just start, and keep going. Never stop. Customers evolve. Their expectations grow. The industry of mobility is continuously transforming. We must continue to become “platforms of mobility access meeting customer needs wherever, and however, their personal journey requires it.” Steve Jobs said, “you’ve got to start with the customer experience and work backward for the technology.” I fully agree but would only add: “Start with defining your customer experience North Star, then build out the tools and processes to support it.” And never stop. The timing and delivery of your customer’s experience will be an ever-lasting, continuous journey, and one built as an enterprise capability (a muscle you can flex), not as a project, one-time program, or technology.

Commentary & Insights

Meet Owen Moon

By

CEO of FIXED OPS DIGITAL The Start "I grew up in Southwest Minnesota. No one lives there because, well, it's way too cold."  Owen grew up in a small town, "just 14,000 people," he shares.  He went to college in his hometown. "My focus in college was actually financial planning; I thought I was going to be either a financial planner or a stockbroker, you know, something in the financial sector. "  Owen, however, also really enjoyed marketing.  Having a conversation with Owen Moon about the automotive industry is like getting into a fast car and just accelerating. A fast-talking, quick-thinking, honest CEO, Owen is very open about who he is, the challenges he has faced, and how he plans on launching over any obstacles that come his way.  "As I got out of college, and I started to look at opportunities, I realized that being in financial planning, you know, selling money, felt a little limiting." Owen Moon: I needed to let my creative side go, and I got lucky enough to end up with an advertising agency that was fully focused on automotive. Being a small-town kid who had never owned a new car, it was just great.   Owen's first brand-new car came shortly after starting his automotive career. It was a white Chevy Tahoe, "I loved that truck. I absolutely loved that truck," Owen smiled. "I was fortunate enough to be in the dealerships, sitting with the owners and general managers, working with high-level executives every day. I became a sponge and was absorbing everything around me, learning the industry from the inside out."   The Foundation “This is my 23rd year in the business, working with Dealerships.” Owen Moon: I was purely focused on helping my clients when I got introduced to my Business Partners. We had a discussion about how we could take some of the strategies that we've seen work on the sales side and move them to the service side of the business. FIXED OPS DIGITAL was born.  Owen Moon: Most of the service marketing that you'd see out there was email or direct mail campaigns, and a lot of it was retention-based marketing where dealerships target people in their DMS, their past customers. What wasn't being addressed was the online service customer. These customers are done with their warranty and are searching for great value and great service. We realized that there was an opportunity for us to move in that direction.  The Wins   "I had to learn how to be a CEO." Owen Moon:   I feel like I'm growing every day. When it started out, it was just four of us, and we all were kind of splitting up duties. Then, as we grew, we started to add personnel, and we began creating departments. My role has drastically changed in a lot of ways. "Today, I'm more focused on partnerships and working with the OEMs to help move us forward as a company."    “It wasn't always easy.”  Owen Moon:  Our industry experienced a lot of challenges during the recession. I had a full-service agency back then, and we were doing a lot of TV, Radio, and Print Ads. I had a major Group out in Hawaii and was traveling a lot, working with really big marketing budgets. I was meeting with all the publishers and media stations, and then that all came to an end. All of a sudden, I found myself working with smaller franchise and independent dealerships throughout South Dakota.   "I love the dealers out here. They are so great, real car guys but just a whole different game." Owen Moon: Being a CEO is a different challenge. People need to evolve, you need to take chances, and you need to avoid being comfortable. As you're growing in your career, you're gonna have to do a lot of different things. Not all of them will be what you want to do, but they are necessary, and they need to get done. I have a lot of conversations with different industry friends, and I'm still learning from everyone I meet. I like having conversations about our industry. I like speaking with high-level executives from other groups, OEMs, and vendors. What also keeps me grounded is that I have a lot of people on my team who are talented and have a lot of experience, but still come to me for advice. They want to do a good job. They want to represent our company well. I still feel like I operate on both sides of the business. I am paving the trail for myself within this role but also in the trenches with my team.  I am giving them advice, something I never had. I had to make mistakes on my own.  Trust me, I made a lot of mistakes, and there have also been those times when I thrived and made the right decisions. I learned from every one of those experiences, good and bad.   The Future As we progress into 2023, we're focused on continuing with our partnerships from an OEM level. We will continue to create integrated partnerships, looking at what we can do to help our dealerships with all of their fixed operations profit centers.  "We want to connect." This past year we were able to implement some interesting features and benefits with our software to help customers easily find services during inclement weather. We want to ensure that we are able to bring connectivity through other areas of our partners' business. We want to engage within the industry and vendor spaces.   Owen is gifted, but beyond that, he understands our industry. He has put the work in, gained real experience, and integrated fully into the dealer environment. We look forward to Owen’s 2023, his contributions and watching his story develop further.

Research & Analysis

Hispanic Car Buying Preferences

By

Social Media and Culturally Sensitive Advertising Most people these days can be found on one social media site or another spending countless hours looking at whatever pops up that piques their interest. It doesn’t matter who you are, or where you're from, you're more likely to be on social media than not. The Hispanic community is no different than the general population in that they are online and in force. Actually, that’s not exactly true. In 2021, Pew Research found that Hispanic women can be found repeatedly above the national average for Facebook, Instagram, Snapchat, and TikTok usage. Hispanic men, on the other hand, were found to spend more time than the average on LinkedIn, Twitter, WhatsApp, and Reddit.  In the case of advertising, any advertiser knows that advertising works. Spend money, focus that money on a message that will be heard, and you can get sales. For the Hispanic community, there is a lot of data which shows that if you market to them in Spanish (especially with a culturally tailored message), you will be heard.  For our 2022 Hispanic Car Preferences survey , we collected data that gives perspective on Hispanics use of social media and the impact of Spanish language advertising. Let’s look at the numbers…  2022 Results We asked a series of questions about the social media platforms that Hispanics prefer and their attitudes regarding auto dealers who market to them in Spanish and/or speak Spanish themselves. The survey did not delve into the nuances of culturally flavored advertising, but is widely understood that Spanish language advertising works well, but is even better when you provide a cultural twist such as recognizing events celebrated by Hispanics throughout the year. Will You Visit Dealers with Spanish Ads? This is the essential question when it comes to Spanish language advertising. When you look at our data, and those of others, you quickly see that advertising in Spanish works. So, when our respondents were asked, “ How likely are you to visit a car dealer who advertises in Spanish? ”, 63.4% of the respondents answered “Very” or “Extremely Likely”. But that’s not where it gets interesting. For the same response, 100% of the women agreed, while only 37.5% of the men only said that they were “Very Likely”, and none said that they were “Extremely Likely”. Travel Plans Anyone? When asked “ Would you travel further to shop at an auto dealership if they marketed to you in Spanish? ”, the results are quite interesting with 100% of women responding with an emphatic “Yes”, while only 55.5% of men shared similar sentiments. Average the two and you get 74% agreeing to the question.  Referring Dealers if They Speak Spanish? Let’s play out the idea a little further. What happened when we asked “ How likely are you to refer a customer to a dealer who speaks Spanish? ”? Women spoke up again, in very clear terms, with 100% of those surveyed saying that they were Very or Extremely Likely to refer a customer to a dealer who speaks Spanish. Men, as you will again and again, had a different view. Only 48% agreed with the women. None of the men actually said that they were Extremely likely. Those are some real differences that should inform any dealer marketing to the community. Favorite Social Media Platforms Now we get to look at the community’s favorite social media platforms. When asked “ Which are your 2 most favorite social media platforms ?”, both men and women picked Instagram (at 33.3 %) and YouTube (at 27.5% ). Interestingly, men and women held roughly the same view on YouTube at ~27%, but widely differed when it came to Instagram. For Instagram, men preferred at 72% while women favored it at only 27.4% . Digital Sources You Use For Research? Our final survey question wanted to find out how people shopped for vehicles so we asked “ Which online sources are you likely to use when you research buying a car, truck, or SUV? (Check all that apply) ”. What we found was that there was no definitive source although men’s search behavior was considerably less diverse than women’s. Here is how the information broke down: Digital Research Sources What Stands Out What’s notable for these data segments is that men and women often differ in their beliefs and behaviors. You see this repeatedly in an extreme way with the advertising segment, but less so with social media behavior. Nevertheless, these differences should stand out as you consider your approach to the market. Trends From Previous Years Advertising in Spanish Our first survey was done in 2020. At that time, when we wanted to explore if Hispanics preferred dealers who are bilingual, we found that roughly 55% of the respondents preferred to buy a vehicle from a dealership that advertised in Spanish. In 2021, when respondents were asked if they would visit a car dealer who advertises in Spanish, 79% chose that they were moderately likely or higher. Moreover, 66% said that it was moderately to extremely helpful if a dealership advertised in Spanish, and 43% said that they would travel further if a dealership advertised to them in Spanish. Compare this data to our 2023 report and it looks like shopping with dealers who advertise in Spanish, and traveling further to shop with those dealers is trending up from the previous years. Online Activity Our 2020 survey told us that Hispanics are very engaged online with search engines and the dealer website as their primary source of information. And, even more interesting, Hispanic women were found to use more channels when researching cars than men so we can see that the pattern we found in 2023 has roots in the previous years. For example, for 2021, our survey found that the three most popular social media platforms are Facebook ( 34% ), Instagram ( 47% ), and YouTube ( 42% ) indicating that Facebook use has declined in 2023. Finally, when it came to researching a vehicle, 88% used major search engines and 59% cross-selected with dealer websites. The numbers varied a bit from 2023, but it is clear that Hispanic online activity consistently tracks heavily from year to year. What Does This Data Tell Us? The data here suggests quite strongly that you should market to customers in Spanish if you have a large community around your dealership. Furthermore, the trends over time support the argument that marketing in Spanish is a tactic that is growing in value, as opposed to declining. Next, the data also shows that you should have bilingual digital presence targeting a range of social media platforms if you want to be heard by the community. Finally, and to us most importantly, if you are a dealer who wants to reach the community, you should seriously consider crafting a mixed message for men and women… whether when you advertise or conduct sales. For example, the data tells us that women more than men will drive further if a dealer advertises in Spanish and prefer a test drive almost exclusively. In response to this information, if a Hispanic woman is shopping for a car and I were a sales person, I would always offer a test drive as part of my primary pitch. Facts and data give you the power to sell well and succeed over time. We hope that you put this data into practice and reach out to us if you have any questions. For now, feel free to download the surveys by following this link …  

Commentary & Insights

Meet Steve Schmith

By

Director of Automotive Strategy, Acxiom The Start "I followed a girl to Detroit; that's where it all started." Steve Schmith was paying his way through college working at Olive Garden when he met a girl. "I had been working there a couple of years and had just clocked in for a normal shift. I walked around the corner, and there she was on her first day training. I knew right then she was the one.  Seven years later and a move to Detroit, we got married.”  Looking back he says that was likely the most influential moment that sparked a lifelong career in the automotive industry.  He’s always been a good storyteller and it’s something that has served him well in a journey that has included being a communications specialist at an automotive supplier, nearly two decades with Deloitte and a stint at Automotive News. All of that has led Steve to head up Industry Strategy for Automotive at Acxiom . We had the privilege of hearing Steve’s story. A story that naturally includes lessons learned, challenges overcome and successes celebrated over the years. But also a story filled with layers of being human; growth that comes from experiences and wisdom, mistakes made and striving to help others not make those same mistakes, encouraging people to try new things. “Afterall,” he says,  “what’s the downside? Failure? So what, it happens to everyone.” That’s a side of Steve that is not always obvious. If you know Steve, you know he has a lot of energy.   He has competed in triathlon since 2009, in addition to leading and moderating industry-defining panels, authoring thought leadership,  and sharing points of view on industry trends and the impact on automotive brands throughout the value chain . It all began when Steve walked over to the Mass Communications Building at Southern Illinois University in Edwardsville (SIUE). “I had found my people, after spending three years studying nursing” he smiled. “I remember doing reel-to-reel,” Steve explains how you would physically cut and attach pieces to splice tapes. He studied journalism and loved writing, television, and radio production. The “mix of storytelling” had impacted him; he had found his calling, which would serve as a strong foundation for his career.  “You have to be a good storyteller. Whatever the medium, or audience, and what I studied served me well.”  Steve had walked past so many posters in the halls of journalism school, posters for the Detroit News, the Detroit Free Press, “nobody moved to Detroit,” he smiled. Three years later, his life would change.  The Foundations “She calls me, and she asks, you want to go?” Steve’s future wife had just been promoted and given responsibility for the state of Michigan. One U-Haul, one car-on-a -trailer, one Prince tennis bag, and a one-way ticket to Detroit later, and Steve had found himself witnessing snow, in May.  Steve Schmith: Our first weekend in Detroit together, we hopped in my car and decided to drive around.  We found ourselves at a coffee shop in Dearborn, MI flipping through the classifieds, and there was a job for a communication specialist at a very small auto supplier that did outsourced purchasing for some of Detroit Three automakers at the time. I knew nothing about the industry, absolutely nothing. I applied at multiple places, but I remember this one in particular. I called them every Monday. They hired me and gave me a chance.  “Ultimately, that started my career in automotive and marketing communications.” I learned a lot about the industry, and quite frankly, looking back, I think procurement was probably the best place in the automotive value chain, at least for me, to start. It exposed me to how that entire value chain was structured. Suppliers, tier one, tier two, OEMs, the importance of supply chain, manufacturing, and all of the components of the ecosystem. It was a really good company, and I spent five years with them.  “I don’t think I had an appreciation or a clear pathway to what my career could be until 2003.” The Wins Steve cites the culture at Deloitte as one of the biggest influences in his career. “The investment, the challenges, the people,” he shares, “this is leadership, this is how to build relationships, this is how you think strategically.” Steve Schmith: I learned how to work with people who have different chemistries, and it’s literally that, we all have different DNA. How you bring people together, and in terms of shaping who I am as a professional and a leader, I attribute all of that to the Firm and its commitment to every one of its individuals. It was there where I had that a-ha moment. I began to develop in automotive, working with big brands, working with some of the smartest people I have ever met, and they invited me into the room, not just to listen but to share my ideas. The exposure you get and the opportunity to view things through a different lens has shaped me.  “I had a choice to make.” The tutelage, the trust, 17 years of exposure and growth, and the ability to build relationships in automotive had transformed Steve.  Marketing and consulting were within Steve’s capabilities, but they were not his defining identity. After 17 years with Deloitte, Steve realized that he was, at his core, an automotive professional.  Steve Schmith: I had to ask myself, do I love the Firm enough to do something else to achieve a title? Or do I leave, use what I learned, and not lose sight of what turned out to be the most important thing to me: 20 years of relationships I had established in the automotive industry? I was at a crossroads, and it was either staying with a company or within the industry. I chose to stay with the industry.  Automotive News was looking for somebody to lead their Data Center.  Steve started his journalism education, walking the halls of SIUE looking at posters advertising internships at the Detroit News and the Free Press. He had during his time at Deloitte led the Firm’s relationship with Automotive News and leading the data center felt like the right next move for his career.  It was both new and nostalgic "to be back in the newsroom." "Seventeen years with a company can create blinders and in some cases a sense of comfort. It wasn't until I made the move to Automotive News that those blinders came off that I looked up and could listen to my gut much more." Steve Schmith: The newsroom is literally a newsroom, and they were passing articles over the walls saying, "hey, can you edit this?' It's a very close-knit group of people; the best journalists in the automotive industry. I was there for about a week until COVID hit. The question then becomes, how do you help strategically lead a business through these major changes? I learned a lot there. I was trusted to co-host the Automotive News Daily Drive Podcast and to be the Director of the PACE Program which is their program which celebrates early-stage, supplier-led innovation. Those opportunities gave me the chance to talk to and learn from a lot of people and be at the forefront of very cool innovation underway in the industry.  We explored the science behind making EV batteries, how connected technologies could save lives, investments in advanced manufacturing, navigating some very turbulent times and how the deprecation of third-party cookies was forever going to change digital marketing.  All of that, says Steve, continued to prepare him for the role he has today at Acxiom. The Future Steve Schmith:  “I am more tuned in, and I listen more to my intuition.”  I found myself at a crossroads again, sooner than I expected. I read this job description from Acxiom, and it is exactly right. Thought leadership, industry strategy, strong industry relationships, and media representation. I get a call, and they begin to illustrate the role in more detail: a perfect hybrid of my experience at both Deloitte and Automotive News.  The work to be done drew me to the role, it sounded challenging. I had heard about the digital transformation underway in digital marketing from guests on the podcasts. The team at Automotive News was itself working through that transformation. For me, it was about the opportunity to continue growing that was very appealing. And I knew this was where the industry was going. Questions around how you create personal consumer experiences when shopping for a car, how you create experiences as the inside of your car becomes an environment. As you look to the future, the necessity to own a car continues to diminish. We just had this conversation on stage at CES 2023. It's not going to take one brand; it's going to be this ecosystem of brands coming together to create these experiences. So this is the perfect spot for me. It is what I studied to do. It's my calling, and in a culture that I love.  “I am in an industry that I love, with people, a team that is world-class and a brand that I love.” I think what really matters is acknowledging the people behind the scenes who allow us to commit and integrate the way we do. The support at home is incredibly important. My journey started with my wife, and now my son is heading off to the same school that started it all for me.  What continues to resonate throughout this interview series is the humanness, the human centricity, of everyone we meet.  As Steve shared how his family have shaped his journey, and continue to do so, it becomes evident that the network we create around us, and the interconnectedness of it all comes down to human beings, telling human stories.  Steve’s story is one we have loved to tell.