i-Dealer, navigating auto retailing in a social media landscape.

1. I-DEALER
NAVIGATE THE AUTO RETAILING LANDSCAPE
By
Strada IQ
November 2010

2. THE DEALER THAT WAS…
A typical dealer from 50 years
ago.
Showroom, service area, front
line of cars, signage, brand
pylon.
There is an enduring element to
brick and mortar. Some things
never change.
Back in the day, many dealers
were in the business of “printing
money”.
It was that easy!

3. MODERN DEALER
The boutique, and waiting area of
a modern dealership.
Is it a shopping destination?
Is it a waiting destination?
Does the cost structure resonate
with diminishing profits.
Is the cost structure aligned with
the direction of the business?
It is impressive!

4. THE DEALER GROUP OF BACK IN THE DAY
Certain franchises were not a viable
stand alone business model. The
strategy of the day was to put a
“group of franchises” in a single
location.
Must have been the start of the
mega dealer / dealer group
movement.
In a group, does one franchise
assist another franchise?
What do you think?

5. CAR SHOPPING
The showroom for countless years
was the repository of all the new
vehicle information.
The sales person was the guardian
of the product knowledge / pricing
information.
The spread from cost to MSRP was
massive.
Would you believe that folks still
purchased vehicles.

6. DEALER AD
Some dealers were “branding”
themselves.
On the premise that a vehicle from
a specific dealer was better than
the same vehicle from another
dealer.
Today dealers post photos and
testimonials on their site, blog,
Facebook page.
Harold had his Facebook page with
photos and testimonials in a
specific area of the showroom.

7. LANDMARK DEALER
With the emergence of suburbs,
dealers began the inexorable
migration from the core of the city
to suburban locations.
Scarborough was one of the first
suburbs of Toronto.
Some dealers became landmarks
and perhaps even institutions in
these suburban locations.
How does a dealer become
prominent today?

8. SHOWROOM
The showroom was and still is the
expression of the brand.
The showcase of a dealer.
The area that defines the essence
of the brand, and the dealer.
The showroom architecture and
activities have evolved, morphed,
progressed through the years.
Still the area where people interact
to complete a vehicle transaction.
Still the area where a dealer
“performs”.

9. THE EMERGING SHOWROOM
The emerging showroom?
Increasingly the various showroom
activities are migrating away from
the brick and mortar showroom.
More than ever the current
showroom activities are crucial to
selling vehicles.
There is no margin for error in
showroom activities.
The be back is almost extinct.
How do you perform on a
“smart device”?

10. SERVICE DEPARTMENT
Has the service department
changed?
The lift replaced the jack, the
individual overhead doors have
given way to the centre aisle layout.
How different is a brake job?
How beneficial is the use of AI
(artificial intelligence) is diagnosing
/ resolving technology issues.
After decades the service
departments still sells TIME.

11. PARTS DEPARTMENT
The first department where
technology was deployed in a
dealership.
Think about it, there is still a parts
counter today.
Parts are still stored on shelves.
The EPC (electronic parts
catalogue) has replaced the
massive catalogues that were on
the counters.
Parts obsolescence is still alive and
well.

12. DEALER MANAGEMENT SYSTEM
The DMS provides the technology
to operate, and measure a dealer.
It started by replacing the Kardex
in parts.
The DMS is pervasive throughout a
dealership.
Simple, effective to stay abreast of
key dealership metrics on a daily
basis.
Most metrics have not changed in
years.
In Canada DMS systems are
fragmented, posing a genuine
future challenge to aggregate
information.

13. APP - DEALER
Do you get the feeling that the
dealer is becoming an “app
platform” where everyone has an
“app” to improve an area of the
dealer.
Need training there’s an app.
Need DMS/CRM there’s an app.
Need social media there’s an app.
Need help in service there’s an app.
Need help in parts there’s an app.
Need help because you need help,
there’s an app.
Need to generate cash flow to run
the business…is there an app for
that?

14. PEOPLE
A dealer is in the people business
through vehicles.
If you are in the people business
and do not have a profound
knowledge and understanding of
people…perhaps there is a
problem.
A dealer needs vehicles to execute
the people business.
Knowledge and understanding of
the vehicles is essential.
Is there an app for understanding
people?

15. SOCIAL AUTOSPHERE
A dealer is in the people business,
with a profound understanding to
create customers.
The emerging social autosphere
(social media) facilitates the task of
being in the people
business/creating customers.
Why does it seem so complicated
or is it?
Technology facilitates, and enables
the various activities of being in the
people business.
Simple…or not.

16. TRADE-IN
The trade in and ensuing used
vehicle has been a fixture of the
retail auto industry for close to a
century.
A dealer is still a “horse trader”.
At times you would think that the
trade-in dropped from the sky only
a few days ago.
Is there an app for the trade-in/used
vehicle? How many do you want?
Is there an app to understand wash
out?
Is there an app for costing a trade?

17. TIME
The biggest competitor of a dealer
is time.
Technology accelerates and
compresses time.
How many dealers have a deep
understanding that time is either a
competitive advantage or a
formidable adversary?
Is it new?
NO
Is it more pronounced than ever?
YES

18. RETAIL ECO SYSTEM
Has the retail cluster of dealers
changed?
The store fronts have changed,
generally brick and mortar dealers
are still clustered together.
The auto malls/auto rows are still a
fixture of the brick and mortar retail
auto business.
Even on search engines dealers
are clustered; some things never
change.

19. DIGITAL
Its been over 15 years that the
digital revolution has been
impacting dealers.
There was a period of relative calm
after a lengthy and at times
arduous learning curve.
For the past 24 months the social
autosphere is buffeting dealers in a
multitude of directions, offering a
multitude of apps, and tactics.
You would think that with a 15 year
learning curve dealers would be on
the forefront of the social
autosphere.

20. DOING BUSINESS
Its understandable, dealers are
immersed in their daily business.
Putting together a “month end”
under “dynamic pricing” conditions
to reach objectives is challenging.
But…after 15 years, its understood
there is a “brick and mortar” and a
“digital” dealer.
New and used vehicle sales have
completely migrated to the digital.
Service and parts is brick and
mortar.
Sales is the i-dealer.

21. BRICK AND MORTAR
Is the retail auto industry too fixated
on the old school brick and mortar
which is still essential to doing
business?
Its probably easier for us to grasp
the concrete that we can touch,
feel.
The knowledge base to deal with
the brick and mortar is literally 100
years old.
If a dealer is challenged by the
brick and mortar it’s a serious
problem.

22. THE OTHER DEALERSHIP
Is the business conducted through
processors misunderstood?
Its been going on for 15 years, it
should be relatively simple to
comprehend.
More important, every dealer must
be in a position to elaborate and
execute a strategy to conduct
business through increasingly
sophisticated forms of technology
(processor usage).
Technology is inexorably moving
the consumer seamlessly through
the purchase process. Deeper into
the dealer.

23. ALWAYS OPEN
Keep in mind that your
i-dealership is on 24-7-365, it
never closes.
The “social consumer/customer”
has extended hours.
Yes… 35% of online activity is
between 7PM to 7AM.
Yes…its challenging, you have to
constantly visualise the appearance
of your i-dealership.
Safe to conclude that “tire clicking”
is a constant activity.

24. VARIABLES
Controlling variables to arrive at a
level of success, while generating a
profit is not an easy task.
This effort can consume a lot of
time, often generating meager
results.
The brick and mortar variables
must be easy to control.
The digital variables require
additional focus, commitment, and
prescience.
It’s a challenging and demanding
task to develop, and operate an
i-dealer.

25. KNOWLEDGE
A dealer must have his own in
house knowledge base that is
pervasive among all the
employees.
Especially as it relates to the brick
and mortar operation.
For the digital operation is the
knowledge base directed towards
the future, or is it a tired “rear view
mirror” perspective?
A dealer must grasp the future,
while empowering his employees to
THINK.

26. METRICS
The metrics relating to the fixed
operation, part of the brick and
mortar are still valid after countless
years.
The metrics relating to the variable
operation, part of the i-dealer are
evolving, and morphing into new
measures.
The variable operation that is still
conducted in the brick and mortar
the metrics are known.
The metrics that apply to the
variable operation operating
through processors is an ongoing
challenge.

27. SUMMARY
 Hopefully we are provoking a thought process.
 Much of what occurs in a dealership is not
new, its an enduring knowledge base.
 Dealers are immersed in a demanding daily
routine that is time consuming.
 Dealers are increasingly confronted with
technological change that upsets the status
quo.
 There are applications for a myriad of tasks, a
dealer is similar to a “smart device”…with a
myriad of apps.
 Can it generate confusion…absolutely!
 Its no longer the internet department, or the
internet “something”.
 The variable operations (sales) function in 2
mediums the brick and mortar and digital.
 The digital medium is crucial.
 The fixed operations can acquire a distinct
advantage through the social autosphere.
 Here’s the thing…its millions invested in the
brick and mortar with substantial fixed costs, to
then operate from the digital.
 How do you mirror the brick and mortar and the
digital?

28. ANSWERS
When no one seems to have the
answer, and everyone is urging
everyone to jump in?
The answer is to take a hard look at
your dealership (if you own or
manage one) and look ahead 5
years (not easy).
What will your customers expect in
5 years, what do you expect?
Agreed its very challenging.
Agreed it might be a lonely task.
Agreed that having a “sounding
board” might be useful.

29. GET THE ONE THAT WORKS FOR YOU…
When social autosphere answers
are elusive.
The landscape becomes ripe for
applications of “snake oil”.
Ensure that you get the “one” that
works for you.
Be certain to have the “one” your
customers want.

30. LOOKING AHEAD
Some trends:
Immediate: time is increasingly
compressed.
Transparent: information that is
aggregated is a competitive
advantage.
Change: embrace change
proactively.
Mobile: inexorable migration to
mobile.
Tribe: crucial to have a tribe of
followers.
Influencers: beneficial to have
social autosphere influencers
on your side.
Outlook: have a 5 year vision for
your business.

31. THINK
You know the saying:
“Think big or go home”.
Technology empowers your
dealership, your employees, your
customers to think REALLY BIG.
When you think big, you stretch the
boundaries, you ignite your
imagination, you provoke your
creativity.
A good portion of your business is
virtual, you can make it as BIG as
you want.

32. LEAD
If you are going to think big, you
might as well lead.
Have you noticed all the “talk” from
various sources on leadership, and
how to be a leader?
Lead in a fashion that employees
want to follow, customers form a
tribe.
Lead in a fashion that folks are
engaged, empowered.
Did you think we were going to give
a lesson on leadership?

33. PASSION
Do you have a burning passion?
Does your dealership have a
burning passion?
Is it passion that exudes
style
magic
creativity
excitement
in all your retailing activities?

34. THOUGHT PROCESS
Its not old school, new school…but
a case of thinking, of initiating a
thought process.
With 2011 on the horizon, there are
many opinions, apps, pundits,
analysts, trainers, directions,
strategies, tactics.
Which ones will you espouse?
Which ones will engage your
customers?
Which ones will generate your
vision, the results you expect?

35. GET IN TOUCH…
For your attention!
Did it provoke your thought
process?
Increase clarity in your vision?
Tell your friends, colleagues,
business acquaintances.
Want to contact:
colonel.t890@gmail.com