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Regional COVID-19 Automotive Consumer Trends

[xfbbcode postid="59634"]Regional COVID-19 automotive consumer trends and what they mean for your dealership

Well, folks, it has been six months since the world came to a grinding halt due to COVID-19. Everyone from the East Coast to the West worked on flattening the curve starting in March, but today’s data on automotive consumer trends tells a story that varies significantly from region to region. Let’s break down Cox Automotive’s most recent update of the COVID-19 Consumer Impact Study to find key takeaways about sales, service and intent to sell in your region.

What does the latest regional car shopping data reveal about consumers’ intentions for buying, selling and servicing vehicles during coronavirus and beyond?

Let’s start with how consumers are feeling. Check out the chart below to find out how consumers’ reported concern about coronavirus has changed over time and where it stands today.

COVID-19-consumer-concern-by-region.jpg


In every region, a strong majority of polled consumers are still extremely or very concerned about the virus. And in the West, concern has actually increased in recent weeks. So, what does that mean for vehicle sales and service in your area?

There’s no expiration date on touchless sales and service.

COVID-19-dealership-virtual-remote-touchless-offerings-1.jpg


Over the last six months, dealerships across the country have turned challenges into huge progress for the automotive industry by implementing “touchless” sales and service options to keep business moving. 65% of shoppers want to do more of the purchase online compared to the last time they purchased a vehicle. And most franchise and many independent dealerships are continuing to prioritize virtual, touchless offerings. Is yours?

As Kevin LeSage discussed in his post Now and beyond COVID-19: At-home vehicle shopping, sales and service, the changes dealerships have made to meet the challenge of serving customers and keeping sales moving during a crazy time aren’t just stop-gap measures. They’re crucial steps for continued success in our increasingly digital world. Consumers aren’t going to move backwards, and neither can our industry.

Offering service pickup and delivery has become a necessity, not a luxury.

More than 3 in 4 non-luxury shoppers and 84% of luxury shoppers say they would select a dealership service center based on the availability of service pickup and delivery options. Those are huge numbers and a competitive advantage you don’t want to miss out on. And by the way, 48% of vehicle owners surveyed said they’d be likely to pay $20 for service pick-up and delivery.2

If you’d like tips for getting started with service pickup and delivery or for making the most of it, check out our Tips for using valet service and repair to drive fixed ops revenue blog post.

COVID-19-service-pickup-luxury.jpg


Need used vehicle inventory? In some regions, more than 20% of consumers are likely to reduce the number of vehicles in their households.

We all know that getting the right vehicle inventory for the right price has been an enormous challenge over the last several months. Recent data from Cox Automotive’s consumer study shows that local consumers may be an ideal source for the used-vehicle inventory you need. Check out the numbers for your region. Then head over to Jade Terreberry’s recent post Creating demand: How to drive car sales and get more used-vehicle inventory for tips and ideas.

COVID-19-consumers-likely-to-sell-a-vehicle-by-region-.jpg


Knowledge is power. Let’s put it to work.

The dealerships that gain ground during and after the pandemic will be the ones who use the latest data (their own dealership data and information like these automotive consumer trends from Cox Automotive) to inform decisions and who take their new practices and services into the future, coronavirus or not.
We’re here to help you do it. To ensure that you don’t miss any updates, subscribe to the blog below. Also, check out Cox Automotive’s resource hub featuring data, insights and best practices for today’s market, The Way Forward. And remember, your local Dealer Success Consultant is always ready to talk strategy.

1 Source of all statistics presented in this post, unless otherwise noted: 2020 Cox Automotive COVID-19 Consumer Impact Study
2Consumer question from 2020 Cox Automotive COVID-19 Consumer Impact Study: “In the near future, how likely would you be to pay [$20/$40] for the option to have a dealership pick up your vehicle at your home, take it in for service/maintenance, then deliver it back to your home?”[/xfbbcode]

Blinded by the CRM

I'm so excited to see what the CRM you are building looks like, @Alex Snyder :cool: so we can end the insanity that is Automotive CRM today!

VinSolutions is pretty bad in this area as not only do they call Duplicates "Bad" but they hide them from the timeline on the "Active" lead. As I recall, eLead, which we did fire years ago, was better at inserting the Duplicate within the timeline. As far as Trade leads, I find myself talking a lot about "how did the shopper raise their hand?" with sales teams. Did the shopper raise their hand on a trade tool, did they raise their hand on the Lease special, etc in order to help them focus on the "why" a shopper took action. Seems to help. It also helps to show sales teams the same path the shopper took to fill that form out. Here's where we could beat up the Trade tools a bit. Once they see that the UX forced the shopper to "pick your vehicle of interest" that lightbulb clicks for them and they seem to then comfortably settle into asking for next steps focusing on the trade with the shopper. I actually have them hyper-focus on that trade and next steps for in-person or remote appraisal without even talking about "what are you replacing it with?". That usually comes up naturally from the shopper which then becomes a pretty natural conversation about vehicle selection.

Is it all the CRM's fault? TradePending, for instance, uses a very slight language differences as to whether the customer updated the miles or left it as default (which in my mind is an indicator of seriousness). "with 75000 miles" vs "with estimated 75000 miles" so a rep really has to dig into the ADF section to review it. A phone call goes way better when the sales rep pays attention to that one word, "estimated", and can apply the correct phrasing of "I see you have about 75000 miles" or "I see average miles for your car is 75000 miles. About how many are on yours?". Can the vendor add a line to the ADF of "HEY YOU THIS SHOPPER TOOK THE TIME TO ENTER THEIR MILEAGE" LOL. And if the shopper entered 75,137, whoa Nelly, lay down alert!

Blinded by the CRM

You bring up a great point. And even the CRM's that tout their "AI" capabilities still often do not have an effective means of alerting us in real time and/or with accurate information regarding "trade-in" requests amongst other requests. And the other issue is that most dealers "lead-forms" (whether from an endemic site, or their own) do not have them labeled appropriately. If the lead came in as "Dealer Website - Trade-in Request" vs. "Dealer Chat Lead" and otherwise (as you mentioned, and I agree) get's marked "bad" you would have a better chance of converting those customers. Sending the same old canned email response - without answering the customers questions - doesn't cut it.

The other thing that CRM's largely fail to accomplish is the UI for "customer data." Wherein, if they are continuing to cram in vendor "integrations" on their "legacy" platforms (chat, text, in-bound calls, etc.) it makes for a daunting process to "read the profile" to put the pieces together before responding. Lastly, let's take it a step further, sure most CRM's (if not all) enable you to push DMS data (deals/service repair orders), but the fact is that because the dealers use so many various tools when the data does finally make it to the CRM it becomes alphabet soup, and to the point above, it makes for a daunting process to work a customers profile.

Trade-in leads are pretty easy to convert, right? Someone wants a number on their current car, and all you need to do is tell them you’re excited about getting another one of those cars because they sell so well at your store.

What if you had a chat tool, a digital retailing tool, and a trade form on your website? You might. And you might have a customer who starts a chat about a trade, goes into the digital retailing solution to focus on a trade, and then submits a lead from your trade form. It sounds unlikely, but I see it happen often.

Because many of the chats are bots or a managed service, one must read deeply into the transcript to discover the conversation went into a trade. And because that is sometimes the first way we know this customer exists, it becomes the first note in the customer history: Lead from Chat.

Then subsequent leads about the trade are marked bad because they’re duplicates, and it is easy to understand why a BDC agent or internet manager misses the fact that this customer wants to talk about a trade. What if the subsequent leads have new information to help write a better email or leave a better voicemail?

Instead, we concentrate the conversation on the vehicle of interest, and that customer never responds to an email or returns a voicemail… another crappy lead, right?

I am seeing this happen more than I’d like. And this is one example of many that speak to the larger issue:

The widely adopted automotive CRMs were coded in a time when dealers were buying $20 leads and needed a way to get refunded. One of the biggest features was that refund capability.

These CRMs use that same lead intake system to receive any kind of data from an outside source as well. ADFs.

So, if the only way fresh data can enter the tool is to receive it via ADF, but the tool is marking those fresh pieces of data bad, one could surmise the tool is no longer relevant. One could go so far as to say automotive CRMs are hindering dealers.

There is no doubt these tools have become archaic and are truly showing just how blinding they are to what the dealers need.

Do your coworkers and staff know the red BAD LEAD words are not a negative sign? Maybe this is a good time to let everyone know those words actually mean: YOU HAVE AN ENGAGED SHOPPER!!!!

Dealership Texting Delivers Conversational Commerce

@todd.smith The entire statute is confusing and courts state this repeatably in my searches. I would also point out that I can't find a single instance of litigation regarding a single instance or even a hundred instances where human action violated TCPA rules. Can you reference one? Everything I've found is tied to class action against large corporations employing automation of high volume (thousands) phone or text activity. My issue in this conversation is the balance of fear vs reality. The 2011 Lithia Ford lawsuit puckered up everyone and then we all clamped down on all texting without understanding what they did vs. what we were doing (I fell in that camp). It happened again this spring at Grieco Ford but they did the same thing Lithia did so shame on them. Again, someone used a 3rd party with no indemnification SMH.

Not advocating a blind eye. Employing common sense and awareness to what level may cross the line of comfort/risk for your dealership is still key.

I would still not use a robo dialer or use an automatic texting tool. Regardless, we are still a target...

View attachment 5067
Hey Dan I agree that using a bulk texting tool is a huge risk that no dealers should engage in it. I believe the point I have been trying to make it to give your salespeople a dedicated number to do all there texting with customers from instead of doing it from there personal phones. Here is why.

1. Data lose- You would need a court order to get info held on someone's personal phone so you will have no visibility into what your team is communicating with customers.

2. Compliance- We can debate all day about TCPA but operating on personal phones without an opt-out functionality is an unnecessary risk.

3. Experience- Consistency means everything during the sales process but when you get texts from one number(CRM) or the salesperson's personal phone, calls from the dealership phone system or again the salesperson's cell the shoppers are hesitant to engage. I believe equipping your team with a dedicated tracking number for all phone and text communication creates a uniformed experience that is missing at virtually every dealership I have shopped.

Finally, I am more than happy to set you up with Mike Semanie from Killgore Pearlman Semanie Denius Squires, P.A who is a top dealership attorney and friend who has represented multiple dealerships on TCPA compliance cases both individual and class action.

Just my two cents on Saturday morning. I hope you are doing great and we still need to make time for a catch-up call soon.

Todd

Dealership Texting Delivers Conversational Commerce

Ok, Dan not sure if it will change your mind or John's, but I figured this would be good for everyone to read. I have spent enough time with lawyers over the last couple of years trying to interpret the law and here are my thoughts. Let me say first I am NOT a lawyer and I don't represent one on DealerRefresh or any other place on earth. I threw some background in there just to help people understand this from a larger perspective.

Background

The TCPA, or Telephone Consumer Protection Act, was originally passed by Congress in 1991 to regulate the use of auto-dialers and pre-recorded messages in order to protect consumer privacy. Now, the TCPA regulates text messages, telemarketing calls, auto-dialed calls, prerecorded calls, and unsolicited faxes. This is also the authority that creates and maintains the National “Do-Not-Call” list.

In 2015, the Federal Communications Commission (FCC) released its TCPA Omnibus Declaratory Ruling and Order in order to clarify the rules and regulations of the TCPA.

Key Terms

TCPA
—Telephone Consumer Protection Act

FCCFederal Communications Commission. The regulatory force behind the TCPA.

ATDSAutomatic Telephone Dialing System or Auto-Dialer.

Any technology with the potential capacity to dial random or sequential numbers, regardless of whether the technology has the current capacity to make the call in issue & equipment to send internet-to-phone text messages.

Text Messages— In the TCPA, text messages are “calls”.

Telemarketing— telephone solicitation.

“Telephone solicitation” means the initiation of a telephone call or message for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services, which is transmitted to any person, but such term does NOT include a call or message

To any person with that person’s prior express invitation or permission

To any person with whom the caller has an established business relationship, or

By a tax-exempt nonprofit organization


Overall, car dealerships can ensure they are TCPA compliant by following a few outstanding principles. Below are key takeaways for businesses regarding the TCPA and its recent ruling.

Prior Express Written Consent

Previously, the secondary portion of the “telephone solicitation” definition of the TCPA allowed businesses to text consumers purely on the basis of an “established business relationship”. Now, businesses must receive “prior express written consent” before telemarketing, advertising, or texting from an ATDS (auto-dialer), prerecorded device, or any kind of software solution. Written consent can be captured through email, with a written signature, by checking a box on an online form, or by voice recording. However, you may not send an ATDS text to request a recipient to opt-in.

Text Messaging Software vs. Personal Phones

The FCC’s current definition and interpretation of an ATDS is extremely broad, and not limited by how the equipment actually functioned when making a call or sending a text message. Text Communications Solution software as well as an employee’s personal smartphone can both be considered an ATDS; several other factors, including the content and frequency of the messages, come into play. Because of this vagueness, it’s prudent for businesses to assume that their method of communication most likely falls under TCPA regulation, and seek out the proper authorization prior to initiating text conversations with consumers.

Transactional and Informational vs. Marketing Texts

There is some gray area between what is an informational text, and what could be construed as a marketing or sales solicitation text. For example, some Text Messaging Solution Providers explain that if a business sends a non-commercial text to an individual, specific to an agreed-upon relationship such as the consumer providing their mobile phone number, they do not need specifically required written consent. This is only 100% in cases concerning services that have already been purchased.

Example

Imagine a service department customer bringing in their car for an oil change, but a dealership employee texts them to notify them that they also need new tires. Technically, it could be argued that this message is not within the scope of the exception, and count as marketing messages to sell other automotive services or products.
@todd.smith The entire statute is confusing and courts state this repeatably in my searches. I would also point out that I can't find a single instance of litigation regarding a single instance or even a hundred instances where human action violated TCPA rules. Can you reference one? Everything I've found is tied to class action against large corporations employing automation of high volume (thousands) phone or text activity. My issue in this conversation is the balance of fear vs reality. The 2011 Lithia Ford lawsuit puckered up everyone and then we all clamped down on all texting without understanding what they did vs. what we were doing (I fell in that camp). It happened again this spring at Grieco Ford but they did the same thing Lithia did so shame on them. Again, someone used a 3rd party with no indemnification SMH.

Not advocating a blind eye. Employing common sense and awareness to what level may cross the line of comfort/risk for your dealership is still key.

I would still not use a robo dialer or use an automatic texting tool. Regardless, we are still a target...

View attachment 5067

Dealership Texting Delivers Conversational Commerce

I don't know about this.....the Example and how it applies to the other stuff in your post really just doesn't make sense. A Text is considered a Call. A phone call to that service customer is absolutely not a violation. However, if a Text is sent from device that is utilizing an Internet to Phone api it is a violation. If the message had been sent from a Business Cell Phone, no violation. If the message had said "Your Oil Change is done", no violation.

I personally believe that as long as we stay away from the mass or bulk text messaging arena, we should be just fine. Just my opinion.

I believe the most important thing is that any communication you do on behalf of the dealership (Business) falls under the rules of TCPA. Sending any message from an individual personal phone without a legal opt-out function puts the business at risk. Also, let us just assume you are ok with that. Your employee sends a customer a text message from there personal cell phone (Very common) and the customer says STOP for whatever reason. The employee never texts the customer again. You fire the employee and they leave with that message on there phone and most likely they just delete it. Three months from now you send a text message to that shopper for whatever reason not knowing they have opted-out on your previous employee's phone. You absolutely now have a potential legal problem. I think maintaining an opt-out list of everyone who comes in contact with the dealerships is a must-have in this day and age similar to the DO NOT CALL registry. We can split hairs all you want but all it takes is one lawyer who is looking for a payday. I think we would both agree there are more than a few of them out there so why risk it.

Dealership Texting Delivers Conversational Commerce

Ok, Dan not sure if it will change your mind or John's, but I figured this would be good for everyone to read. I have spent enough time with lawyers over the last couple of years trying to interpret the law and here are my thoughts. Let me say first I am NOT a lawyer and I don't represent one on DealerRefresh or any other place on earth. I threw some background in there just to help people understand this from a larger perspective.

Background

The TCPA, or Telephone Consumer Protection Act, was originally passed by Congress in 1991 to regulate the use of auto-dialers and pre-recorded messages in order to protect consumer privacy. Now, the TCPA regulates text messages, telemarketing calls, auto-dialed calls, prerecorded calls, and unsolicited faxes. This is also the authority that creates and maintains the National “Do-Not-Call” list.

In 2015, the Federal Communications Commission (FCC) released its TCPA Omnibus Declaratory Ruling and Order in order to clarify the rules and regulations of the TCPA.

Key Terms

TCPA
—Telephone Consumer Protection Act

FCCFederal Communications Commission. The regulatory force behind the TCPA.

ATDSAutomatic Telephone Dialing System or Auto-Dialer.

Any technology with the potential capacity to dial random or sequential numbers, regardless of whether the technology has the current capacity to make the call in issue & equipment to send internet-to-phone text messages.

Text Messages— In the TCPA, text messages are “calls”.

Telemarketing— telephone solicitation.

“Telephone solicitation” means the initiation of a telephone call or message for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services, which is transmitted to any person, but such term does NOT include a call or message

To any person with that person’s prior express invitation or permission

To any person with whom the caller has an established business relationship, or

By a tax-exempt nonprofit organization


Overall, car dealerships can ensure they are TCPA compliant by following a few outstanding principles. Below are key takeaways for businesses regarding the TCPA and its recent ruling.

Prior Express Written Consent

Previously, the secondary portion of the “telephone solicitation” definition of the TCPA allowed businesses to text consumers purely on the basis of an “established business relationship”. Now, businesses must receive “prior express written consent” before telemarketing, advertising, or texting from an ATDS (auto-dialer), prerecorded device, or any kind of software solution. Written consent can be captured through email, with a written signature, by checking a box on an online form, or by voice recording. However, you may not send an ATDS text to request a recipient to opt-in.

Text Messaging Software vs. Personal Phones

The FCC’s current definition and interpretation of an ATDS is extremely broad, and not limited by how the equipment actually functioned when making a call or sending a text message. Text Communications Solution software as well as an employee’s personal smartphone can both be considered an ATDS; several other factors, including the content and frequency of the messages, come into play. Because of this vagueness, it’s prudent for businesses to assume that their method of communication most likely falls under TCPA regulation, and seek out the proper authorization prior to initiating text conversations with consumers.

Transactional and Informational vs. Marketing Texts

There is some gray area between what is an informational text, and what could be construed as a marketing or sales solicitation text. For example, some Text Messaging Solution Providers explain that if a business sends a non-commercial text to an individual, specific to an agreed-upon relationship such as the consumer providing their mobile phone number, they do not need specifically required written consent. This is only 100% in cases concerning services that have already been purchased.

Example

Imagine a service department customer bringing in their car for an oil change, but a dealership employee texts them to notify them that they also need new tires. Technically, it could be argued that this message is not within the scope of the exception, and count as marketing messages to sell other automotive services or products.

I don't know about this.....the Example and how it applies to the other stuff in your post really just doesn't make sense. A Text is considered a Call. A phone call to that service customer is absolutely not a violation. However, if a Text is sent from device that is utilizing an Internet to Phone api it is a violation. If the message had been sent from a Business Cell Phone, no violation. If the message had said "Your Oil Change is done", no violation.

I personally believe that as long as we stay away from the mass or bulk text messaging arena, we should be just fine. Just my opinion.

Dealership Texting Delivers Conversational Commerce

I think @john.quinn and I are on the same page. In my review of the TCPA laws over the last few years, and I am also not a lawyer, actions taken when it comes to a phone number aren't separated by text or voice call when it comes to a human dialing. TCPA sees them as the same thing. We don't call people to see if we can call them...
We don't have any automated text campaigns hitting marketing lists as that does get into Opt-In rules and from what I can tell, is where most all lawsuits derive from (show me one that didn't). We use a phone number that a customer has provided for text and/or phone and see those actions against that number as the same thing. If they submitted a number on the lead form, we have green light on text and call with no opt-in. We have 90-days to attempt contact if they're on the DNC list but obviously can take a hint after a much shorter time if we get no response. We have 18 months to market to their number if they transacted with us.

The advertised fear and a dealer's unwillingness to research the rules on their own provide many sales opportunities for vendors in this space. Not saying that's you but if a dealer sees value in letting someone do it (as long as they get indemnification) because then they don't have to worry about it, go for it.

Change my mind @todd.smith

...and I do agree, texting is where it's at.

Ok, Dan not sure if it will change your mind or John's, but I figured this would be good for everyone to read. I have spent enough time with lawyers over the last couple of years trying to interpret the law and here are my thoughts. Let me say first I am NOT a lawyer and I don't represent one on DealerRefresh or any other place on earth. I threw some background in there just to help people understand this from a larger perspective.

Background

The TCPA, or Telephone Consumer Protection Act, was originally passed by Congress in 1991 to regulate the use of auto-dialers and pre-recorded messages in order to protect consumer privacy. Now, the TCPA regulates text messages, telemarketing calls, auto-dialed calls, prerecorded calls, and unsolicited faxes. This is also the authority that creates and maintains the National “Do-Not-Call” list.

In 2015, the Federal Communications Commission (FCC) released its TCPA Omnibus Declaratory Ruling and Order in order to clarify the rules and regulations of the TCPA.

Key Terms

TCPA
—Telephone Consumer Protection Act

FCCFederal Communications Commission. The regulatory force behind the TCPA.

ATDSAutomatic Telephone Dialing System or Auto-Dialer.

Any technology with the potential capacity to dial random or sequential numbers, regardless of whether the technology has the current capacity to make the call in issue & equipment to send internet-to-phone text messages.

Text Messages— In the TCPA, text messages are “calls”.

Telemarketing— telephone solicitation.

“Telephone solicitation” means the initiation of a telephone call or message for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services, which is transmitted to any person, but such term does NOT include a call or message

To any person with that person’s prior express invitation or permission

To any person with whom the caller has an established business relationship, or

By a tax-exempt nonprofit organization


Overall, car dealerships can ensure they are TCPA compliant by following a few outstanding principles. Below are key takeaways for businesses regarding the TCPA and its recent ruling.

Prior Express Written Consent

Previously, the secondary portion of the “telephone solicitation” definition of the TCPA allowed businesses to text consumers purely on the basis of an “established business relationship”. Now, businesses must receive “prior express written consent” before telemarketing, advertising, or texting from an ATDS (auto-dialer), prerecorded device, or any kind of software solution. Written consent can be captured through email, with a written signature, by checking a box on an online form, or by voice recording. However, you may not send an ATDS text to request a recipient to opt-in.

Text Messaging Software vs. Personal Phones


The FCC’s current definition and interpretation of an ATDS is extremely broad, and not limited by how the equipment actually functioned when making a call or sending a text message. Text Communications Solution software as well as an employee’s personal smartphone can both be considered an ATDS; several other factors, including the content and frequency of the messages, come into play. Because of this vagueness, it’s prudent for businesses to assume that their method of communication most likely falls under TCPA regulation, and seek out the proper authorization prior to initiating text conversations with consumers.

Transactional and Informational vs. Marketing Texts

There is some gray area between what is an informational text, and what could be construed as a marketing or sales solicitation text. For example, some Text Messaging Solution Providers explain that if a business sends a non-commercial text to an individual, specific to an agreed-upon relationship such as the consumer providing their mobile phone number, they do not need specifically required written consent. This is only 100% in cases concerning services that have already been purchased.

Example

Imagine a service department customer bringing in their car for an oil change, but a dealership employee texts them to notify them that they also need new tires. Technically, it could be argued that this message is not within the scope of the exception, and count as marketing messages to sell other automotive services or products.

Dealership Texting Delivers Conversational Commerce

Hello Dan Sayer, we have a widget that resides on the dealer website that allows consumers to fill out a form to start a text conversation. The form goes to the dealer as an email and when the dealer responds to the email, it strips out any previous conversations and texts the consumer back.

The percentages are the increase and decrease of consumers submitting the text requests through our widget when compared to the same month for the prior year. For example, in March 2020, there was a 28% decrease in the amount of text requests that came in when compared to March 2019.

I was hoping to show that during the covid lockdowns, the number of consumers that want to communicate via text has increased.

Thanks,
Ah, I got ya. Curious as to why the widget would be a Text to Email exchange? Seems like it would inherently take something that was meant for speed and slow it down? Not that any tool creating a handoff between a shopper's phone and a sales person's phone is fast. I suppose we've created a mess of text pathways ourselves with no perfect handoff:

1. Form Fill on sites from CTA for "Confirm Availability" etc have a "Prefer Text" option. Our sales team reply SMS via Vin's tool or MMS via Snapcell which also has Vin integration. They both rely on sales person getting push notifications from the Vin or Snapcell applications on their phone. Downside is customer sees two different numbers if the conversation switches from SMS to MMS.

2. Chat/Text via CarNow on the websites is a hosted chat/text and really just in how the hosted conversation is delivered on the shopper's device; chat box or text client.

3. Direct to sales person phone. This happens a lot since we have our sales team cell numbers on their cards and email sigs. Usually this is an exchange that happens post sale or repeat sale. Yes, I would like it to be in a system that logs to the CRM but not going to die on the hill if customer initiated the text conversation to the sales person's personal device.

Dealership Texting Delivers Conversational Commerce

Hello Dan Sayer, we have a widget that resides on the dealer website that allows consumers to fill out a form to start a text conversation. The form goes to the dealer as an email and when the dealer responds to the email, it strips out any previous conversations and texts the consumer back.

The percentages are the increase and decrease of consumers submitting the text requests through our widget when compared to the same month for the prior year. For example, in March 2020, there was a 28% decrease in the amount of text requests that came in when compared to March 2019.

I was hoping to show that during the covid lockdowns, the number of consumers that want to communicate via text has increased.

Thanks,

Dealership Texting Delivers Conversational Commerce

We have a texting solution that allows consumers to text you and the dealer answers the texts using email.

Here are some numbers across our texting platform when comparing year-over-year numbers:
  • March 2020: -28%
  • April 2020: 10%
  • May 2020: 80%
  • June 2020: 71%
  • July 2020: 63%
aside from March and April when many dealers were closed or only partially open, it looks like the pandemic increased texts to dealerships.
@CarlAutofusion I literally have no idea what you are talking about ^^^ Can you give some context to "dealer answers the texts using email" as well as what -28% means in comparison to 63%? Thanks.

Dealership Texting Delivers Conversational Commerce

We have a texting solution that allows consumers to text you and the dealer answers the texts using email.

Here are some numbers across our texting platform when comparing year-over-year numbers:
  • March 2020: -28%
  • April 2020: 10%
  • May 2020: 80%
  • June 2020: 71%
  • July 2020: 63%
aside from March and April when many dealers were closed or only partially open, it looks like the pandemic increased texts to dealerships.

Dealership Texting Delivers Conversational Commerce

I think @john.quinn and I are on the same page. In my review of the TCPA laws over the last few years, and I am also not a lawyer, actions taken when it comes to a phone number aren't separated by text or voice call when it comes to a human dialing. TCPA sees them as the same thing. We don't call people to see if we can call them...
We don't have any automated text campaigns hitting marketing lists as that does get into Opt-In rules and from what I can tell, is where most all lawsuits derive from (show me one that didn't). We use a phone number that a customer has provided for text and/or phone and see those actions against that number as the same thing. If they submitted a number on the lead form, we have green light on text and call with no opt-in. We have 90-days to attempt contact if they're on the DNC list but obviously can take a hint after a much shorter time if we get no response. We have 18 months to market to their number if they transacted with us.

The advertised fear and a dealer's unwillingness to research the rules on their own provide many sales opportunities for vendors in this space. Not saying that's you but if a dealer sees value in letting someone do it (as long as they get indemnification) because then they don't have to worry about it, go for it.

Change my mind @todd.smith

...and I do agree, texting is where it's at.

Dealership Texting Delivers Conversational Commerce

I know opinions are like.... snowflakes (;-)) -- and I'm no lawyer, but here goes:

TCPA deals with automated phone dialing. As texting is considered a "Phone" function, texting is covered under TCPA.

However... if your texting solution has NO automation -- one human being hitting one button that sends one and only one text, TCPA has no interest nor is applicable.

Sooo.... pragmatically, what does that mean? If your solution provides no robo-texting functionality, there's no legal requirement to get permission to send text.

As far as permission: Best practice? Good idea? Sure. TCPA compliance? Stay away from text campaigns or any sort of text automation, and TCPA is not relevant.

Creating demand: How to drive car sales and get more used-vehicle inventory

[xfbbcode postid="59269"]Every dealership I’ve talked to lately has had the same couple of things on their minds: how to get more used-vehicle inventory and how to get consumers to buy now. Today, let’s talk about how dealers’ and consumers’ needs can come together to create used-vehicle inventory and car sales.

Since talking to Kevin LeSage about his recent post on used-vehicle inventory acquisition, I’ve been thinking about even more ways for our dealers to acquire used-car inventory and drive sales revenue at the same time. Given the market we’re in right now, how can we meet our customers’ needs and our goals?

I believe there is a potential car deal happening in at least 1 in 10 households right now – a deal that can get us the inventory and sales we need. We just have to control the TIMING by planting the right seeds and educating consumers.

Many households could benefit from selling or making a trade now (which could mean sales and used-vehicle inventory for you).

Change and unknowns are just about the only constants during the COVID-19 pandemic, but even so, most consumers:
  • Still and will likely always need transportation.
  • May not have the same transportation needs they did five short months ago.
  • Are more budget-conscious than ever and thinking about what their futures may hold.
  • Have saved some money over the past few months or need to in the next couple of months.
  • Need a pick-me-up.
Right now, I believe that 10% of all households have a potential car deal to be mined. That number may seem high, but let’s think about it. The pandemic and economy have caused five months’ worth of pent-up demand and created new reasons to trade, buy and sell: a car that needs to be liquidated for financial reasons, a payment that needs to be reduced, a need for fewer vehicles (since many families aren’t driving as much), a mileage milestone they shouldn’t cross for depreciation purposes. . . the list goes on.

While many consumers could benefit financially from making a car deal right now, many of them haven’t realized it yet. That’s where you come in.

Okay, so how can we get those consumers ready to trade, sell or buy?

With a little (and I mean very little) prompting from a dealer they like and trust, I believe today’s consumer will take the leap into making a deal.

So, I decided to test my theory.

I had a small (social distanced) pool party with four couples from my neighborhood. They always ask me about the economy, the automotive industry and any car question that comes to mind. I knew throughout the course of the night the topic would come up. And it did.

I shared some of the economic predictions and angles I had heard, but very sincerely shared with them my sentiment that now is the best time to buy – possibly ever. I shared some simple facts and questions about why now’s the time to buy, sell or trade:
  • “Dealerships and OEMs need your business.”
  • “Rates are low and incentives are great.”
  • “Inventory is scarce, so you’ll likely get a premium for your trade-in.”
  • “A new car warranty would bring you peace of mind. How valuable would it be to know that you won’t have any big unforeseen vehicle expenses in the near future?”
And, it worked. A ten-minute discussion led to 50% of those couples deciding they’re ready to buy a car and potentially make a trade. And when I did my Sunday drive through the neighborhood this past weekend, I saw at least 10 temporary tags in my subdivision, representing 10 recent sales and a bunch of trades, as well.

Trading and buying are contagious, even in a pandemic.
It’s no coincidence that I saw so many temporary tags in my neighborhood or that half my visitors decided now was a good time to buy. Seeing the neighbors make a move makes others want to do the same. People talk, and right now, car deals are a win-win for the buyer and the dealership.

So, let’s talk about a grassroots approach to educating consumers on why now is the right time to buy, sell or trade!

5 ways to get vehicle sales moving and acquire the inventory you need:
Here’s my 5-pronged approach to stimulating the auto industry, solving the inventory scarcity problem, helping customers get great deals, and increasing dealership success by controlling the timing of purchases and trades.

1. Your sphere of influence
I shared my story of filling in my friends about why now’s the time to buy. Think about the people you already know who haven’t even considered a vehicle purchase in this crazy environment. They may be ready to move if you give them the facts and get them excited about how you can help them.

2. Mining your CRM
Your CRM is your dealership’s sphere of influence. It’s a gold mine of people that like you and trust you OR have expressed interest in buying from you at some point along the way. Bucket your lost, sold, and even bad and duplicate leads into a few categories. Write a couple of scripts that go into the reasons to buy now that I mentioned above. Then start dialing for dollars and referrals. Set goals and have contests.

3. Geographic farming
Real estate salespeople “farm” neighborhoods all the time. It’s a long-standing cornerstone of their marketing approach to build their books of business. We should adopt it in the car business because it works.

Have each salesperson pick a neighborhood, send a postcard or drop off a marketing piece with the reasons to buy, sell or trade now. And when the buzz starts happening about the great service and great deal their neighbor received from you, your phone is going to start ringing.

Be creative on ways to get the word out in each neighborhood. Network with the homeowners’ association and get a ‘congrats’ section in their monthly newsletter for every new proud vehicle owner with a happy delivery photo! Make it personal and real and fun! Have your new customers share their experiences on social media and reward them for doing it. The goal is temporary tags with your logo in every driveway in the neighborhood.

4. Becoming a networking machine
Be a networking machine and remind all of your salespeople to be. Talk to everyone. Consciously and deliberately network with everyone who crosses your path – standing in line at Wal-Mart, when your grocery or dinner delivery driver drops off your food (they surely need a car with better gas mileage, right?), when pumping gas, at school, while walking in your neighborhood. Tell people why it’s the time to trade, sell or buy. And reward your salespeople for every new opportunity they pull in.

5. Events, reimagined
With a little imagination, events can drive business, even during the pandemic. How about a contactless drive-thru trade-in appraisal event or a “we’ll come to you” week, when customers have you come to their homes to do visual inspections and make an Instant Cash Offer. Or how about an online virtual event featuring your new-car 2021 line-up with walk-arounds and presentations about the best features of the new models? We did tent sales for years, why not try a “Tent Buy or Trade”?

You can move the needle for your dealership.
Remember, car buying is contagious, so spread the word. You know how selling, trading or buying could benefit your local consumers right now, but they may not yet realize it. So, let them know!

We have the ability to influence our entire industry while growing our businesses. Are we going to be let the economy and pandemic drive us, or are we going to turn it into an opportunity that makes us stronger and wins us more happy customers?

In my next post, we’ll dive deeper into the each of these five strategies. We’ll talk more about each, and we’ll dive into goal setting, calculating numbers to see what’s working for you, talk tracks, and more.[/xfbbcode]

Canada takes over RefreshFriday w. Mitch and Craig - #RefreshFriday

[xfbbcode postid="59260"]Aboot f’n time we honored our friends in the North! Canada
:flag-ca:
takes over RefreshFriday this week.

What the heck do those Canucks do up there? How do they sell cars and what’s so different to the US?

Longtime community members @Mitch Gallant and @craigh are going to tell us the differences between the provinces and the states… when it comes to the car biz. Catch us LIVE on Facebook at 1:00 PM EST - Like the DealerRefresh page and turn on notifications.

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