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right to repair act
Are Dealers Ready for “Telematics Right to Repair?”

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"Right to Repair" Significantly Expanded In the November, 2020 election, voters in the Commonwealth of Massachusetts passed a ballot initiative, Question 1 , by an overwhelming margin (75% approved). Question 1 requires that OEM's make diagnostic data collected remotely -- through OEM telematics systems -- available to individual vehicle owners and to independent repair shops. The 2020 initiative expands on a "Right to Repair" initiative passed in 2013. The original initiative required OEM's to make diagnostic and repair data available to individual owners or independent repair shops. In 2013, this meant that OEM's had to provide data access to diagnostic repair tools.  In 2020, this requirement was expanded to include data collected remotely through telematics systems from vehicles that are on the road. The original "Right to Repair" was also first passed in Massachusetts, but in 2014, the Alliance of Auto Manufacturers signed a memorandum of understanding to support implementation in all 50 States and the District of Columbia. This move pre-empted "Right to Repair" initiatives in several other States that were similar to the one in Massachusetts. With the "Telematics Right to Repair" initiative of 2020, however, the Alliance is challenging the expansion of Right to Repair into data collected through telematics systems. The trial began on June 15 and is ongoing. If the Telematics expansion is allowed to proceed, however, dealers should be thinking about the implications to their service business, because this expansion might be much more significant than it at first appears. "Right to Repair" and the Connected Car On the surface, expansion of “Right to Repair” to include telematics may not seem like a big difference. But the difference has the potential to be enormous for service retention, which is why independent repair shops and service chains fought so hard for the Massachusetts initiative. With this change, customers will be enticed to set up an ongoing remote connection to their service provider of choice, putting that provider in the best position to capture and retain that customer.   Once this system is in place, a visit to the local quick lube shop, tire store, or parts store will change. As the customer wraps up an oil change, for example, the attendant will ask the customer to authorize the shop to monitor the vehicle’s diagnostics. This will allow the shop to see when the vehicle is in need of its next service and send out a text or email with a perfectly timed service reminder. Well-run shops will eventually analyze their base of connected customers to determine the optimal time to bring them in – both when the vehicle needs service and when the shop has available capacity. Service shops and chains that do this well will cement a closer relationship with their customers and increase repeat service loyalty.   Alternatively, customers may choose to authorize an intermediate service “broker” to monitor their diagnostics and manage their vehicle’s maintenance. The broker will then be in a position to act as the customer’s trusted advisor, and will route service jobs to the most competitive service provider. Dealers Should Prepare Now The Independent shops and service chains in Massachusetts clearly hope to use this new initiative to gain business from franchised dealers (or prevent current business from being lost to Dealers). In order to maintain and grow the dealers' share of the non-warranty repair and maintenance business, dealers will have to make excellent use of the telematics systems installed by their manufacturers.  Dealers start with a key advantage, which is the opportunity to start a connected service relationship with the customer from the moment the new or used vehicle is delivered. But not all dealers today do a great job activating these systems, and activation for some OEMs is very inconsistent. Dealers must be sure to activate OEM-provided systems and secure customer consent to share service and maintenance data. Dealers then have to do a great job of managing data notifications to quickly schedule customers for any needed service work. Dealers may also want to take advantage of aftermarket systems for their older inventory that lacks OEM-provided telematics. A service like Spireon’s Lojack is a good example of an effective aftermarket system. Dealers will have a very brief head start to fine-tune their use of connected car service notifications, and they will need to take full advantage. If you are a dealer considering connected service and service retention opportunities, please reach out to motormindz to hear more about how to “get” Connected.  
man walking on line
Is it Time to Make the Entrepreneurial Leap?

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The last year and a half has been one of the immense transitions and has left many of us asking if we’re in the right place and if what we’re doing is worthy of our time and energy. For those of you who may be asking yourself if there is more you can do or additional ways you can help, I encourage you to consider whether it’s time to make the leap to consulting. I’ve had the privilege of owning my own agency for more than two decades and have been asked several times how to make the transition from employee to agency owner. Below are a few of the tips I’ve gleaned from my own experience and the successful entrepreneurs from which I’ve been able to work and learn.  How do you begin?  I get this question often. Many people want to know when I knew it was time to go out on my own and how I began. I was fortunate enough to have a mentor who helped get me started but will say that there is an inner calling in most consultants I know. Some speak of it as an intense desire to help the industry, some speak of it as outgrowing their current circumstance and needing a challenge, and others say it was born out of a need for the next step. But every single story has one thing in common – successful entrepreneurs have something burning within them – gnawing at them – that won’t go away. Whether it’s an idea, a new way of handling a current situation, or for me, a desire to control your own destiny and be the person in charge of your interactions. Do you have an idea that won’t go away? A feeling that propels you to act, even if it’s scary? If so, it may be time to go out on your own.  Networking is Key Once you decide to make the leap, it is time to network, network, network. Reach out to current and past colleagues, let previous business partners know that you have begun your own company and post as often as possible on LinkedIn. When reaching out on social media, ensure you are giving value through advice and offering to connect people, versus just asking if the people in your network need your services. As Sandy Zannino, Founder of Innovative Auto HR has wisely stated about starting, “I should have started networking sooner. Begin before you’re ready.” Time Box like a Pro  I have long been a huge fan of the idea of time boxing. Time boxing is setting aside chunks of time to accomplish specific goals. When I first began my PR firm, I would literally sit at my desk during the time I had set aside for working, even if I didn’t have the client work. Instead, I would focus on my website or branding. Anything to set me in the mindset that the time I had set aside was for building my business. Today I am fortunate enough to say I no longer have that problem, but I do keep the time boxing methods to ensure I stay productive and don’t lose my momentum to meetings, phone calls and social media.  Keep Going!  Owning your own agency is not for the faint of heart. It takes patience, joy in risk and a strong amount of grit. Many of the most successful firm owners I know have fallen in some way. But more importantly, they’ve gotten themselves up and found a new way to go after what they want and continue their calling.  Is this the year you heed the call and make the leap to owning your own consultancy? Is an idea or concept calling to you at a louder and louder pitch? Do you have the grit to keep it front and center? I’m betting on you and hoping that the answer will be yes! 
car retail idea
The Automotive Retail Shift

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The automotive industry on the retail side has been seeing some nice profitable shifts in recent months. Here we are in the hottest-selling part of the year and we are dealing with supply and demand issues. While it is a beautiful thing to watch dealers be profitable and command the market for a change I am worried about what will happen to our selling skills for the future. Right now anyone can be a superstar and gross $4,000 per unit just by showing a vehicle and going through a few steps to the sale. But what happens when supply levels come back to normal? How will we be able to maintain the same level of profitability while selling three times more units? I make it a point to look at inventory at some of the biggest dealerships in the nation to truly understand what our fellow partners are going through. I see Facebook groups that include retail automotive professionals from all walks of life posting pictures of empty lots and explaining how they cannot even put cars into showrooms since they are selling fast. These are scary times because dealers cannot afford to slow down. This is such an expense-driven business that we must continue to progress forward. I even saw a few posts where salespeople complained that their dealership is cutting pay plans because they are paying out way too much money for people that do not deserve it.  The big question is how do we move forward? We must remember that historically our industry has been resilient through the toughest times and came back better than ever. It will happen again very soon. We are in a business that forces “survival of the fittest” and things will normalize again. Now is the time to think about how we are going to sharpen our skills. Let’s get back to focusing on customer service. Let’s get back to focusing on building our sales and marketing skills. It is time that we take matters into our own hands and take control of our own personal development. Ralph Waldo Emerson once said, “The only person you are destined to become is the person you decide to be.” We must refuse to be stuck in continuing to do everything the way that we always have done it. The automotive retail shift has incorporated new ways for us to sell and acquire vehicles. Technology has given consumers the power to shop and be more knowledgeable than ever before about vehicles and the shopping process. It is time to train, self-develop, and improve how we handle our business. I recommend fifteen minutes of personal development daily every morning by reading a good book and watching some wonderful inspirational YouTube videos.  Additionally, we need to invest in training our people at dealerships. We need to empower our people to use our tools better. It is time to master the CRM and finally use it the right way. It is also time to create a process to use digital retailing tools to improve how we negotiate and talk to our customers. If customers will not start to embrace digital retailing the way that we as an industry planned then we need to once again take matters into our own hands and use these tools to improve our own salesmanship. Opportunities to improve are all around us. Let’s grow!
ev charging
The Coming Wave of the Electric Vehicles and the Impact on Auto Retail

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The State of EV “Oh we gonna rock down to ELECTRIC AVENUE!” We have all read and heard the recent headlines around the auto industry. Electric, electric, electric. It is coming fast and furious! Depending on the source, the forecast for future electric vehicle sales vary, but recently with all the activity the sources and forecasts are starting to align on the growth potential and likelihood as being significant and expansive. It will no longer be a splinter niche customer set, but rather a significant profile and proportion of sales and even trending towards the majority. According to a few sources, the likely truth will probably be somewhere in the following projections and forecasts: Sopheon notes that the additional product offerings coming could push global EV sales to between six million and 11 million by 2025, rising to between 11 million and 19 million units a year by 2030 The real interesting pieces come from IHS Markit's forecast for 2021 and beyond. This year, the firm believes we'll see electric cars take a market share of 3.5%, just about double from 2020's number. Fast forward to 2025 and the company forecasts EVs will make up 10% of all new cars sold. That would be a massive shift in buying trends . According to Edmunds, by the end of 2021 there will be 26 electric vehicles available for sale across the sedan, truck and SUV segments. That is expected to grow significantly over the next 5 years with as many as half the models for sale in 2025 having EV options. So EV is here and coming in an even more substantive way. What does it all mean? How will car buying, owning and servicing change? What does this shift do to retailers? In fact, what will the very retail footprint and experience need to look like to accommodate this market disruption? A few quick questions I have heard? Do I need to treat an EV customer different from my “normal” customers? Will I need a separate showroom or sales process? How will this affect my service business? What other considerations will I need to train my staff for in selling EV’s? The answer to each one of these is that there will be differences and nuances that need to be accounted for with EV customers and products. But the amount of change needed depends on your current dealership’s focus. If you are a retailer focused on customer experience and lifetime value as two key driving forces and metrics of success, then the change may not seem as drastic. If your store is more transactional based and price and profit are the only main drivers of operations, the EV customers and opportunities may be tougher to capitalize on. So What Really Changes for Retail? We Just Sell Cars, Right? Wrong. The bottom line is that the very retail model will have to adapt and shift. Retail will not be about moving product, or transactional based, but it must become first and foremost centered on experiences. Electric vehicles require a different value proposition as part of the sales process. The service experience will also be very unique for these products and owners. The focus needs to be on truly meeting the customer’s needs, value, and overall experience. Retail itself must become synonymous not just with the purchase, and not just the physical in-store engagement, but rather the entire customer engagement process along their entire journey. There was already major transformation coming in the industry due to technology and customer expectations, but the significant uptick in electric vehicle availability, sales and ownership will continue to disrupt retailers to become more of a mobility platform and mobility experience center. Rather than try and detail all the changes that will have to come and the capabilities that retailers will have to develop, consider the following graphic. This is just a high-level framework of some thoughts on how a future auto retailer will have to focus, operate and thrive. We can certainly debate the major function headings, or the specific services and functions themselves, but the fact remains that even if 80% accurate, this is quite a shift from the current operations and focus of today’s retailer. Why will this shift happen? Notice I said “will” not “if” or “might”. There are too many disruptive forces coming to play into the auto industry and the auto retail environment. Major Challenges and Disruptions Growing customer expectations (On Demand Economy / Instant Access) Mobility needs shifting Disruptive technologies (Connected, 5G, Autonomous, Electric, Digital) Electric vehicle growth (global view and movement) Autonomous vehicle technology On Demand services (including vehicle features themselves) Covid after-effects / Urban exiting / Virtual working (commute) Increasing mobility choices (mode, access) All of these factors and many more will demand a new retail model. One that engages customers to meet their mobility needs in any and every way possible. That will need to include micro-leasing, access on demand, fleet / rental options, subscription services, mobile services, downloadable software, pay-by-the-mile, features-on-demand, and much more. Imagine a customer virtually test driving a vehicle, and specific features and accessories via virtual reality from the comfort of their own home. Then having the electric vehicle for the weekend, dropped off at their house. They return the vehicle to the dealer, cash in their energy tokens, and then purchase a mobility monthly subscription pass for the dealer’s mobility platform options. Sound far-fetched? It is happening in pieces through various companies and channels now. It will be up to auto retailers to become the one platform to provide (or at least manage) these services in order to keep customers engaged and to be sustainable and meaningful into the future. Shift Happens So how do retailers get ahead of this rather than trying to chase the opportunity when it is too late? This must happen with adaptive strategy and operations. A few key action plans include: Assess what drives your operation and how can it become more customer experience focused (what you measure is what will matter) Continually develop customer data and insight to always be prepared to meet the customer where they are in their mobility needs Begin to view and structure your operations not as departments, not as inventory and assets, but as seamless and frictionless enablers to capabilities. Define your North Star. What will make your dealership different? What will truly separate your customer experience from the dealership down the street? Enable employees to do what is right, not what is standard and expected. Leverage technology to enable frictionless experiences, not become more cumbersome. Always be customer-focused, agile and adaptive to their shifting needs These capabilities will insure deeper customer connection and engagement. What you sell in the future may change, but it will not matter if the basic customer experience is not there now, tomorrow and along the way; because your customer will go to where they can receive the best experience. Customer experience is the bridge from the present to the future, from the known to the unknown. Our future monthly operating report and operational structure will look much different than today, but the core customer experience fundamentals must exist continuously to survive and thrive in that new world.
Beyond the Shopping Cart: The New Era of Going Digital

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The automotive retail industry is changing at the most significant pace in its hundred-year history. COVID-19 has accelerated retail trends in the automotive industry, so the 21st-century car buyer is no longer limited to dealerships but is now an "anywhere" buyer. Slow-to-adapt dealerships have been faced with the harsh reality that to succeed "”not merely exist"” they must move the buying experience from the showroom into the living room. An end-to-end digitally delivered experience, from first look to purchase, has been the only option for customers wary of public places. The next generation of automotive retail will be defined by convenient financial options, backend logistics, and rapid home delivery. Dealers must bring the showroom, F&I, and white-glove delivery to their customers regardless of physical location "” whether a showroom, a living room, a back yard, or a tent. Meanwhile, customer expectations for seamless remote purchasing experiences have been raised dramatically, thanks to the influence of Amazon, Apple, Facebook, and Netflix. A  McKinsey report  predicts millennials will represent the largest new-car-purchasing demographic by 2025, making it critical to address the preferences of these digital natives who expect smooth, "contactless" experiences. Breaking the Retail Mindset The old mindset was that "going digital" meant updating the dealership website with a catalog and a shopping cart. But going digital encompasses a lot more than online inventory. It means enabling a "buy anywhere" approach. It means adopting a flexible, process-focused mindset based on operational speed and dependability to address customer pain points. It means mastering the logistics of contactless product delivery, customer service, and remote sales. The key to successful remote sales is breaking this outdated retail mindset and moving to a modern approach based on operational speed and dependability. Once merely an online bookstore, look at how Amazon evolved to become a logistical juggernaut capable of delivering goods to any doorstep the next day with stunning dependability. What Your Customers Really Want A business exists to make its customers' lives better. If the customers' most significant pain points are around time, complexity and trust, every new feature or service rolled out should be designed to address those pain points. And the dealership needs to make that clear in its "brand promise," the experience customers should receive every time they interact with the dealer. The traditional brand promise is that the dealership is the biggest, cheapest, largest, friendliest, most award-winning, etc. But today, a brand promise must relate to solving the biggest pain points through speed, convenience, and transparency while being consistent across all customer touchpoints. These can include: Connected online visits so customers can continue their journey right where they left off Transparent and upfront pricing 100% online purchase with available home delivery or curbside pickup Online cash offers for trades Service pickup and delivery 7-day exchange program Lifetime engine/powertrain warranty Dealerships need the right technology foundation for becoming a customer-centric and digitally efficient dealership. They have to take advantage of emerging retail technology to grow their market share, increase F&I profitability and exceed customer expectations. The Silver Lining Because of COVID-19, the shopping experience that used to be a matter of convenience has become a matter of necessity. Dealers are now transforming their operations and connecting more effectively with buyers in any location. By focusing on proven digital strategies, dealerships can make a great leap forward in their ability to promote, sell, finance, and schedule delivery of cars remotely. They will not only survive in this new era, but thrive.
Your Dealership's New Unforeseen Competitor. How Will You Keep Up?

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Your dealership isn't competing with the dealer next door, it's competing with Netflix. The fight for digital real estate is real. In-market car shoppers are also in-market baby clothes shoppers, or Netflix-obsessed parents, or perhaps college seniors looking for their first apartment. With every Google search comes a story -- a digital footprint-- that tells the internet who that person is and what they want to see.  This means that the in-market shoppers landing on your website, searching for cars in your inventory, or even needing an urgent oil change, have other non-auto related interests.  Shocker, right?  So while you need to make sure you're #1 in your primary market area, your dealership is also competing against some of the biggest e-commerce giants in the world to gain real estate on every page possible at just the right time.   So... will that newly promoted mother of three see the Carter's clearance ad for the onesies she was eyeing or will she see your lease special for the Suburban she's always wanted? This is where the real competition lies in 2021.  How will you keep up? It's obvious that dealerships need to operate as technology companies in order to compete with technology companies like Netflix. Manual, thin-on-tech digital marketing will no longer cut it when competing with the big guys. Is your dealership optimizing ads in real-time? Are your inventory ads VIN-level specific to match shoppers' interests? Are you running your A/B tests on autopilot? Below are the top three principles that your dealership should be abiding by to play at the same level as the "big guys." Speed There should be no lag time when it comes to updating your ads and campaigns. While going in manually to adjust pricing and disclaimers used to be acceptable, if you're not operating at lightning speed, you're creating irrelevant customer experiences with outdated targeting and messaging. Changing and optimizing your campaigns in real-time will give your dealership the proper leverage to compete at any time of the day, yes, even at 3 AM.   Scale The expression don't put all your eggs in one basket has never been more true when it comes to vehicle-specific ads. Picking 5-10 models to focus on each month will limit your targeting range. Your dealership should cast a wide net, leveraging every single car to target the right people at the right time so that you can scale your marketing. Leverage technology to market every car as if it's your only car, creating scalable optimization tests that run on autopilot to give every vehicle a chance to find its buyer. When you can scale your A/B testing to tens of tests simultaneously, and you can create algorithms to combine the best keyword strategy to find the cheapest quality leads, you're operating on a competitive level.  Specificity  When your dealership has the speed to optimize 24/7 and the scale to market every car with personalized messaging, you're then able to make the specific matches between shoppers and inventory, ensuring that your message will be prominent for the buyer at just the right time. This granular 1:1 targeting means that your ad will always show up for that newly promoted mother of three, beating out Carter's every time.  When it comes to marketing in 2021, it's critical to adopt these principles and operate as a technology company so you can beat out the competition and stay on top of mind -- and top of Google search pages-- for your shoppers.