Publication - Motor Trade News

Transcription

10 FEBRUARY 2014
Harratts £2.4m
sale
Benfield bet big
Editor’s welcome
Welcome to the February
10th edition of Motor Trade
News, the business
publication for every
franchised dealer in the UK.
On top of the business
news we have some really
interesting stuff in this issue, and whether it
is Paul Smith talking about Mass
Customisation or Jason Dawe questioning
the 20 questions sales process, it’s got to
be all about the customer, hasn’t it?
Tell us what you think on
news@motortradenews.com.
Gordon
Not so good news
Jason Dawe
Autotrader see increased
market activity
In what may be a good proxy for activity in the
UK economy, online car classifieds giant
Autotrader, have revealed an increase in the
number of cars offered for sale each day,
more site visits and a rise in the volume of
leads generated for dealers, including referrals
to dealer websites, email addresses and
‘clicks to call’ made on mobile devices.
During December the firm’s website listed
an average of
377,214 cars
up 8% from an
average of
349,165 for
December
2012. The
upward trend
was also
reflected
quarter by
quarter last
year while so
far in 2014
more than
400,000 cars have been listed and Autotrader
claims to be growing at its fastest rate since
records began.
The increased level of stock and visitors
has seemingly added to the number of leads
and direct referrals to dealer websites, email
and telephone contact points. Reportedly site
visitors clicking through to a full page
advertisement for a chosen car were up by
29% to more than 128 million in December
2013 and there were more than 3 million
click-throughs to dealer websites, a rise of
14%. In addition the number of clicks to call
generated through searches by mobile
devices rose 55% to 382,685, equivalent to a
buyer ringing a seller every 7 seconds.
Talking about the increased activity,
Jonathan
Williams, Auto
Trader’s
marketing
director said,
“Auto Trader is
the largest
online
marketplace
with more cars
listed and more
visitors than
any other.
However, there
is no sense of
complacency and we know our position will
only be maintained if we can continue to
demonstrate value to our customers. Latest
data shows we are working hard to generate
genuine leads. But we are also providing the
market data and intelligence tools that are
driving competitive advantage in our
customers’ businesses.”
SPECIAL OFFER!
FREE 5 x 12 month recovery
and 5 x MOT cover packages
(RRP £99 each) *
*When you issue 5 x 12 month warranties. New business only.
ler
Dea
k
Pac
40k+ Automotive
Jobs
Click here to request your
FREE dealer pack today!
Endorsed by
Sir Stirling Moss OBE
Motor Racing Legend
Vertu Motors PLC acquire
Harratts Sheffield for £2.4m
Vertu Motors has agreed a deal to purchased
Harratts’ Sheffield single site Nissan and
Volvo dealership for £2.4m.
The acquired dealership will be the
rebranded as Bristol Street Motors, and will
increase Vertu’s
presence in Yorkshire to
12 dealerships . Robert
Forrester, CEO of Vertu
Motors said: “We are
delighted to announce
the next step in our
growth with both Nissan
and Volvo. This is the
first time the Bristol
Street Motors brand has been represented in
the major city of Sheffield, which is the fourth
largest in the UK. The new outlets will
complement existing Group businesses in the
region in Barnsley, Doncaster and
Chesterfield. This brings the number of outlets
in the county of Yorkshire to 12.
“We are continuing to develop the Group by
adding to existing franchise relationships as
well as exploring new manufacturer partners.
This acquisition increases the Group to 106
sales and aftersales
outlets and will enable us
to generate further
profitable growth for our
shareholders.”
Shaun Harratt,
Managing Director of
Harratts, said: “An offer
was made for our
Sheffield operation,
which we decided to accept. It refocuses our
business to a predominantly West Yorkshire
offering, which traditionally has always been at
the heart of our operation. We would like to
wish Vertu continued success with two great
brands at the Sheffield dealerships.”
Listers Evesham win
VW top retailer award
JCT600 fleet report
28% growth in 2013
JCT600’s fleet division has sales of 11,200
vehicles, worth around £200m in 2013
representing year on year growth of 28%.
JCT600’s new contracts in 2013 included a
major deal with a daily rental company and
two successful tenders for deals sith top 50
contract hire and leasing companies.
Neill Richards, JCT600 fleet sales director
commented “The growth of the division is part
of an ambitious five year strategy which
includes establishing ourselves as the fleet
dealer of choice locally, regionally and, long
term, nationally,”
“We have already made tremendous
progress and are well on our way to reaching
our target of delivering 20,000 vehicles by
2018. We are confident that fleet sales
volumes will hit 13,000 in 2014 as a result of
the new business from the former Gilders’
dealerships that have joined JCT600 plus the
additional contracts we have secured.”
JCT600 is an independently owned
Bradford-based motor group. Ithas
dealerships throughout Yorkshire, Derbyshire,
Lincolnshire and the North East and sells 19
brands. The group employs a workforce of
1,800 people.
Listers Evesham scooped the number one UK
Retailer at the 2014 national Volkswagen One
Business Awards.
The VW award ceremony took place at the
Volkswagen annual conference which was held
at the Miami Orange Bowl stadium. David
Westwood, Brand Manager at Listers
Evesham, was presented with the award by
Director of Volkswagen Passenger Cars Robert
Hazelwood, and Head of Retail Operations Ian
Plummer in front of 600 other delegates.
The award is based on Volkswagen UK’s
own scorecard system, recognises
performance in customer care and quality of
service, not just retail performance.The
Evesham dealership had been placed in the top
10 at last year’s ceremonyAchieving top spot
marks a steady progress in a competitive group
of 220 other retailers.
David commented: “Without everyone’s help
we wouldn’t have made it this far, it’s a real
team effort and I’d like to thank everybody for
their support”.
The Listers group encompases over 40
dealerships acting as franchise partners for
Audi, BMW, Honda, Jaguar, Land Rover,
Lexus, Mercedes-Benz, MINI, SEAT, Škoda,
Smart, Toyota, Volkswagen and Volkswagen
Commercials,
BUSINESS news
Benfield open
£5.8m Ford
dealership in
Sunderland
Benfield’s £40m capital investment
programme is bearing its first fruits with
the opening of the largest Ford dealership
in the North East at Newcastle Road,
Sunderland.
The £5.8m development opened to
customers on Monday 27th January 2014
after an 8 month construction period.The
new ford dealerships replaces a ‘pop-up’
ford dealership that the group had been
operating at Newcastle Road, Sunderland
since 2012.
The new permanent facilities include a
12 car showroom, a new workshop with
the latest diagnostics technology, space
for 80 used cars on the site, aftersales
facilities and plenty of customer car
parking. In addition to this there is a
Transit commercial vehicle centre on site.
Mark Squires, Benfield’s Chief
Executive, said, “We are delighted with
this impressive new Ford development
and to be again flying the flag so brightly
for Ford in Sunderland.
“The Ford brand is steeped in tradition
and has a great and successful history in
this region. Moving into Sunderland in this
way is a natural geographic fit for Benfield
and we are very much looking forward to
developing and expanding the Benfield
brand and reputation in Wearside.
“The development has taken 8 months
to construct and has also created 45 jobs
and is a tremendous example of the
Benfield and Ford brands working
together to provide a world-class retail
experience with unrivalled customer
service.”
The Benfield Motor Group employs
over 1,500 staff and has 34 retail outlets
throughout the North East of England,
Yorkshire, Cumbria and South West
Scotland across a portfolio 16 car retail
brands.
Send your news to: editorial@motortradenews.com Contact us on: 01832 710635
BUSINESS news
Motorpoint announce
partnership with Honest John
Motorpoint has signed up independent review site, Honest John,
as its exclusive reviews partner.
As a result of the partnership Motorpoint customers will be able
to read impartial Honest Jon review content for every make and
model that the car supermarket has in stock.The partnership
follows the consumer champion’s granting its HAT Standard for
customer service to Motorpoint in late November 2013.
Motorpoint is keen to gain competitive edge as consumers
increasingly make purchasing decisions based on their online
research. Their site It currently receives over 600,000 unique
visitors per month – equivalent to almost 21% of all visits to car
supermarket websites in the UK.
Managing Director of Motorpoint, Mark Carpenter said: “We are
continually looking at ways in which we can improve the car buying
experience for our customers and the introduction of independent
car reviews, powered by consumer champion Honest John, will
form an important part of the value added service that we take
great pride in providing at Motorpoint.”
Sarah Thomas, Commercial Director at Honest John, added:
“We are delighted to be
the exclusive reviews
partner for Motorpoint,
one of our Highly
Approved Traders. This is
a great opportunity for us
to work more closely with
a business that is
synonymous with offering
great service and value for
money to its customers.”
TMS Hinckley announce relocation
and new KIA dealership
TMS Hinckley Volvo will move to a new site at Wharf Farm, Coventry
Road in April 2014. In addition to bidding their station road premise
farewell the midlands based dealer will add a new KIA dealership to its
operations.
TMS Motor Group have confirmed that the new 22,500 sq ft Trinity
Marina site in Hinckley will be the first Volvo dealership in Leicestershire
to sport the latest Volvo corporate branding. The new Volvo design
concept includes a workshop with adjoining lounge where customers
will be able to view the work taking place on their vehicle through a
large viewing window.
The move also marks an expansion for the business, and the Len
Hallows, MD of TMS Hinckley, expects that this will create new jobs
while adding a first KIA dealership to the Hinckley market: “The
relocation of our Volvo business and the start-up of a Kia dealership
represents a significant investment for us. It will also give a boost to the
local economy as we recruit extra staff to accommodate the Volvo
move and our expansion with Kia.”
“We have been looking to move and expand for a while now as our
existing premises are needed as part of the bus station development in
the centre of Hinckley. The Trinity Marina site is perfect for us as we
expand with Volvo and Kia and will be able to showcase over 60 used
cars with ample parking for our customers. We will continue to update
our customers through the next few months as the development gets
underway.”
MG confirm pop up dealership
at Westfield Merry Hill
MG has opted to retain their pop up
showroom at the midlands shopping
complex, Westfield Merry Hill, for
2014.
The UK brand had set up the pop
up showroom for an initial two month
pre-Christmas residency. However
MG has been encouraged by the
results and have confirmed that they
will retain the pop up showroom throughout their 90th anniversary year.
Sam Burton MG’s Head of Sales, said; “The partnership with
Westfield Merry Hill provides a fantastic opportunity for two iconic
Midlands Brands to continue to work together following the great
success we enjoyed at the centre at the end of 2013.”
The shop offers MG enough room to showcase four vehicles to the
23 million shoppers that use Westfield Merry Hill annually. The
manufacture hopes that the strong sales figures realised at the end of
2013, with the launch of the MG3 in the UK, will continue in 2014. The
brand saw November sales jump by 257% when compared with
November 2012.
Westfield Director of Operations; Bill Giouroukos said ‘Westfield is
delighted that such an Iconic UK brand has chosen to partner with
Westfield at our Merry Hill centre to launch a new and dynamic sales
platform for their exciting range of cars. Westfield has changed the
concept of the pop up – where once they were short term take overs of
unused spaces, Westfield is now hosting high profile brands such as
MG in state of the art units for whole seasons or even longer. ’
SALARY
CALCULATOR
ALL FRANCHISES
ALL REGIONS
FREE TO USE BUSINESS TOOL
CLICK HERE TO TRY IT TODAY
BUSINESS news
Motor Trade News
Published by:
Events and Publishing Ltd
145-157 St. John Street
London
EC1V4PY
00 44 (0)207 1938533
Managing Editor:
Gordon Lyster
gordon@motortradenews.com
00 44 (0)1832 710635
Contributing Editors:
Lisa Millard
lisa@motortradenews.com
Sam Sillers
sam@motortradenews.com
Julian Kirk
julian@motortradenews.com
Dealerships and
Groups Editor
Andrew Lyster
andrew@motortradenews.com
Advertising sales:
00 44 (0)1832 710635
ads@motortradenews.com
Database:
data@motortradenews.com
Technology:
Stuart Forrester
00 44(0)1487 773047
stuart@motortradenews.com
This publication and its content is
copyright of Motor Trade News - © MTN
2010. All rights reserved.
Any redistribution or reproduction of part
or all of the contents in any form is
prohibited other than the following:
n You may print or download to a local
hard disk extracts for your personal and
non-commercial use only
n you may copy the content to individual
third parties for their personal use, but
only if you acknowledge the website as
the source of the material
You may not, except with our express
written permission, distribute or
commercially exploit the content. Nor may
you transmit it or store it in any other
website or other form of electronic
retrieval system.
Autoecosse to open new
Mitsubishi dealership in Dundee
Scottish dealer group Autoecosse has
announced plans to open new a Mitsubishi
dealership on 10th February at Monifieth
Road, Broughty Ferry, Dundee.
Chairman, Richard Lawson , who founded
Autoecosse in Dundee in 2005, said: ‘We’re
really looking forward to opening our new
Mitsubishi dealership. This site has been
empty for three-and-a-half years so it’s great
news for the area that we have been able to
regenerate it and create jobs.’
‘We certainly intend to be one of the bigger
Mitsubishi dealers in the UK and set very high
standards in all that we do. Our main focus is
customer care and we have many customers
who we have been dealing with since for many
years because we have built up long term
relationships and catered for their motoring
requirements. That’s the backbone of the
company and we fully intend to provide a
superb experience to new and current
Mitsubishi owners.’
Co- Director of Autoecosse, and Mitsubishi
Dealer Principal Tim Hancock will be
responsible for leading the development of the
Mitsubishi brand in the region. The timing of
the project is positive with SMMT figures
showing Mitsubishi sales were up 38% in
2013, compared with 2012.
Hancock hopes that the addition of the new
dealership will double staffing numbers to 30
employees. He said: ‘We are all very
enthusiastic about the potential in the area for
the Mitsubishi brand – the range is fantastic,
the quality is exceptional and we can market
the models with great confidence.’
Now Vauxhall launch “Now TV”
West London based dealer group, Now
Vauxhall, have embraced video marketing with
the launch of a group TV channel “Now TV’.
The Dealer Group created the online TV
channel to build customer confidence. Videos
produced to date introduce its various
departments and key individuals to
perspective customers. There is helpful
advice in the form of “How To’ demonstrations.
In addition to the introductions featured the
channel will be
ustilised to feature
their used car
offering. It is hoped
that this approach
may differentiate
their stock from that
of competitors. Also
on the confidence
building front,
consumer
testimonials are now
available in video as
part of the channel.
Early signs are
that online
customers are
finding this approach engaging: customers
who visit NOW TV increase their visit time to
the NOW Vauxhall website but 300%. Now
Vauxhall commissioned the initiative following
research that showed 87% of car buyers
reported that video had helped them decide
which car to buy. The company’s partner in
the project is web design agency, Bluesky
Interactive.
Bluesky Interactive explain the benefits of
utilising online video: ”As an agency we’ve
seen the potential of video for some time now,
but were keen to find a way to use videos in a
way that benefitted our client and their
customers. The Now TV channel achieves this
threefold – 1) it helps us to introduce the Now
Vauxhall company and work ethic in an
accessible, friendly format; 2) it works to
convince customers that Now Vauxhall are
trustworthy, and worth buying from; and 3) the
How-to videos not
only help customers,
but give people a
reason to return to the
website – and less of
a reason to leave in
the first place!”
Jon Taylor,
Managing Director of
Now Vauxhall
explains that the
integration of video
into the group’s web
offering has been a
logical next step: “We
have had a mobile
specific website for a
number of years but it is always difficult to
show the full range of offers using this and
with site traffic to our website via mobile
approaching the 50% mark we had to improve
our offering and fast. The responsive website
was the obvious way forward and also makes
keeping the site updated much simpler.
Integrating quality video into this site was the
next logical step forward in responding to our
customer’s needs.”
Ambition. Focus. Drive.
0844 324 5895
info@gforces.co.uk | www.gforces.co.uk
NOT SO GOOD NEWS
Lincolnshire garage prosecuted
by Trading Standards
Lincolnshire Trading Standards has
prosecuted a car garage for making no
attempt to repair a customer’s car, but still
billing her £350.
In May last year, a woman took her car to
H&H Motors in Leadenham to replace its
cambelt.
The job was given to an ex-employee
who had parted company with H&H Motors
but was working to repay a debt to the
business. This man wrongly assumed the
car belonged to the garage, and therefore
decided not to change the part.
Unaware the car hadn’t been fixed, a
partner of the business didn’t check the
cambelt and instead signed the logbook and
handed the keys back to the customer.
The customer said: “When I collected my
car I was told it also needed its turbo
replacing, and the garage could do it for
£800 if I paid in cash. Luckily, I decided to
take my car away and get a second opinion.
“I went to another garage and they asked
me if any work had been completed on the
car recently, so I told them about the
cambelt. I was shocked to hear the old belt
was still in place and burst into tears.
“With my husband, we returned to H&H
Motors and demanded a full refund, which
we got. The partner offered to do the work
himself, but I had lost faith in him.
“I called Trading Standards who advised
me to keep all the evidence that I had. I had
a receipt and a stamp in my service book
saying the work had been done.”
Commenting on the case, Alan Griffin
from Lincolnshire Trading Standards,
added: “Should the old cambelt have
snapped, it could have resulted in a hefty bill
or resulted in a serious accident if the car
was travelling at speed or overtaking.”
The partner in the business was
prosecuted at Lincoln Magistrates’ Court
and pleaded guilty to applying the stamp to
the log book without checking the work had
been completed. He was given a conditional
discharge and ordered to pay costs of
£964.80.
The mechanic pleaded guilty for failing to
do the work and was prosecuted by the
same court. The judge imposed a 12 week
suspended sentence for 12 months. He was
ordered to pay £600 towards prosecution
costs and a good causes charge of £80.
£9,000 HSE fine for fleet workshop
A Hull based vehicle recovery fleet, ABR
Rescue, has been prosecuted after one of it’s
mechanics sustained a serious back injury
including two fractured vertebrae when a
seven-tonne lorry fell from a jack and trapped
him underneath. The 22-year-old worker was
unable to return to work for three months.
Having investigated the
case, the Health and Safety
Executive (HSE), told Hull
Magistrates that the firm had
badly neglected the safety of
its employees. It had failed to
provide safe working
methods and not addressed
the very real risks of harm
associated with working
underneath vehicles. The
court was told the mechanic
was fitting a brake chamber
to the large goods vehicle (LGV). Its rear
nearside wheels had been taken off and the
vehicle was being supported by a single
hydraulic jack – which itself was standing on a
block of wood. Another employee was working
in the lorry’s cab and when he started the
engine, the LGV rolled off or fell from the jack,
trapping the mechanic underneath.
The HSE said the LGV should have been
supported using axle stands, and the
remaining wheels should have been chocked
to prevent it from rolling.
ABR Rescue Ltd of Grindell Street, Hull,
was fined £5,000 and ordered to pay £3,760
after admitting breaching the Health and
Safety at Work etc Act 1974.
Speaking after the case,
HSE Inspector Dr Nicholas
Tosney said, “This young
mechanic was working
underneath an inadequately
supported and unchocked
LGV whilst another employee
was working in the cab. Jacks
are for lifting, not support, and
in these circumstances it was
entirely foreseeable that
when the engine was started
the vehicle would fall. Because ABR Rescue
had not looked properly at the risks of the job,
they had not identified the measures needed
to control those risks. However, the
precautions that should be taken are wellknown in the industry and if the company had
fulfilled its duty of care, then a young worker
would have been spared a serious injury.”
Dawn raids target
large scale car
clocking ring
Police have made one arrest following a
muti-agengy operation to crackdown on a car
clocking ring which is believed to involve
nearly 200 vehicles.
The National Trading Standards Boardfunded Scambusters team worked in
conjection with the Met Police, Trading
Standards and Redbridge Council to carry
out a series of dawn raids.
The investigation was launched following a
number of allegations of car ‘clocking’
involving high value cars being bought and
used for leasing and then sold on.
The investigation is looking into claims that
vehicles were ‘clocked’ back by thousands of
miles before being sold either through the
trade or to private individuals.
Throughout last year, it is suspected that
nearly 200 vehicles were sold by the
companies being investigated. These
vehicles are being examined as part of the
investigation.
Consumer minister Jenny Willott said:
“This is a shocking example of the type of
criminal activity Trading Standards and
Scambusters encounter day in, day out.
“This raid sends out a clear message to
those looking to break the law – we will catch
you and bring you to justice.
“Car buyers should always do their
homework to stop them being ripped off.”
The Met Police have arrested one suspect
and served a restraint order to suspend
business activity.
Ruth Clark, cabinet member for planning
and public protection at Redbridge Council,
added: “I am absolutely delighted with the
results of this operation. Our trading
standards officers have put in a huge amount
of time and resources to investigating this
issue.
“Car clocking can be very difficult for
members of the public to spot but means they
would be paying well above the value of the
car unwittingly. I’d like to thank members of
the public for their information and reports,
which helped us launch this investigation.”
There are
sTill
Those ouT
There
who believe
in beTTer
values.
In a study of the last 8 months, each month we have
been more accurate than the competition at valuing
the top 100 selling cars.
see for yourself at:
www.glassbusiness.co.uk/wevaluebetter
we value better
SsangYong Motor UK
appoint 5 new dealerships
South Korea-based automobile manufacturer
SsangYong has confirmed the appointment of
five new UK dealerships.
The new appointments are as follows:
n Grovebury Cars, Tring, Hertfordshire
n C S G Pollitt, Exeter, Devon
n Racecourse Garage, Chepstow,
Monmouthshire
n Roseisle, Musselburgh, Edinburgh
n t.i.m. UK Motors, Ilkeston, Derbyshire
Paul Williams, CEO of SsangYong Motor
UK: “We warmly welcome these five new
partners to the SsangYong franchise, and the
first of several Chevrolet dealers taking on the
brand. We think dealers used to selling
Chevrolet will appreciate the Korean quality
and reliability of the SsangYong product, as
well as our straightforward, no nonsense
approach to business.”
Williams also stressed the continued
commitment by the manufacturer to expand its
dealer network: “The last two years have been
spent building the foundations of our UK
dealer network, and with several new models
in the pipeline, we are now looking to improve
the professionalism of the network, while also
adding new locations.We are actively looking
for the right quality of dealers to represent us
in a number of locations”
MG add five
dealerships
in one week
McLaren expands
global dealer network
McLaren is continuing the expansion of its
global dealer network with the appointment
of a new outlet in Thailand.
McLaren Bangkok is the eighth location in
Asia for the company and marks the 30th
market worldwide. It will be operated by
Niche Cars, which boasts extensive market
experience and are leaders in the sourcing
and sale of luxury and performance cars
throughout Thailand.
The latest location to be added to the
McLaren Automotive retail portfolio will be
located in the Siam Paragon luxury
shopping mall in the country’s capital, which
is one of the largest shopping centres in
MANUFACTURER NEWS
Asia.
Mirko Bordiga, McLaren Automotive
regional director for Asia-Pacific ,said:: ‘We
are extremely pleased to announce our
latest retail partner in the region. The
Asia-Pacific region has seen rapid growth
recently with the significant expansion of our
retailer network, and further strengthens our
brand presence globally.”
Niche Cars Co managing director Vittawat
Chinabarramee added: “We are delighted to
be appointed the representative for McLaren
in Thailand. It is with great pleasure that we
can bring the 12C and, most notably, the P1
to all car enthusiasts here in Thailand.”
MG has completed a busy period of
dealership expansion by appointing
Wingrove Motor Company in Newcastle
as its latest dealership. The move comes
on the back of a four dealership contract
that the marquee have completed with
Carshop.
Wingrove Motor Company is the
eleventh MG dealer appointed in the past
six months. The Newcastle showroom is
situated close to the Metrocentre on a
2.5-acre site in the west of the city.
Facilities include a 200 sq. metre
showroom at that has been purpose built
for MG with an initial investment of more
than £100,000.
Managing Director of Wingrove, Louise
Parker- Dalkin said: “It’s fabulous to be
involved with such an iconic sporting
brand as MG and we are really excited
about the future. Everyone here is so
impressed with both the MG6 and the
MG3. We’ve driven both, and they drive
superbly well, as well as offering great
value for money. We know the new MG
range will be a great success in the North
East and we can’t wait to start showing
the cars off to our customers.”
MG has also confirmed that two
after-sales centres will come on stream
this year at MG Newcastle North on the
Nelson Industrial Estate, Cramlington,
Northumberland, and at MG Newcastle
East on the Silverlink Retail Park,
Wallsend, Newcastle.
The developments in the North East
come hot on the heals of four
appointments earlier this week in a deal
with used car supermarket Carshop.
Carshop were appointed as franchised
dealers for new MG vehicles at their
operations in Norwich, Northampton,
Swindon and Doncaster. While the latter
half of 2013 saw dealers appointed in
Dudley in the West Midlands, Spalding,
Woking, Gloucester and two in Sheffield.
MANUFACTURER NEWS
Audience targeted TV
advertising from Sky
Television has long been the missing link in
automotive retailer marketing. All but the
largest retailers have rejected it for being
prohibitively expensive, and most have
recognised that it can be a blunt instrument in
an age when many marketing disciplines are
becoming increasingly targeted, delivering a
better return on investment.
A report from media analysts at Forrester
Research anticipates major change in TV
advertising over the next three to five years,
and highlights the need for marketers to adopt
new tools and strategies to achieve better
reach and results. The organisation points to
a number of significant trends, including the
rise of on-demand viewing and ‘TV anywhere’,
both of which change how people view TV
content. Notably, Forrester also references
the need for ‘addressable advertising’, where
different ads can be delivered to different
viewers to match their interests.
To tackle the challenges, and in particular
the opportunity of ‘addressable advertising’,
Sky recently launched its revolutionary Sky
AdSmart service, which for the first time in UK
TV history allows national channels to offer
highly localised advertising.
Until now everyone watching a commercial
TV channel at the same time saw the
same adverts, albeit with the option for
limited regional differentiation. With Sky
AdSmart, different adverts can be shown to
different households watching the same Sky
programme, which means companies can
focus their television marketing spend at a
very specific audience for each campaign.
Households can be selected based on
factors like gender, age, location and lifestage, derived from a combination of Sky’s
own customer data and information from
consumer profiling experts such as Experian,
via its multi-channel consumer classification
tool, Mosaic.
advertisements can be substituted with more
relevant ones and people should see more
of the products and services they’re actually
interested in. The development of tools to
focus advertising in this way echoes the
recent evolution of online advertising.
Recognising the potential for Sky AdSmart
For example, if a luxury car retailer wants to
target the demographic most likely to buy its
to supersede many traditional forms of
advertising, GForces took the opportunity
to enter into an exclusive partnership
arrangement with Sky Media, the advertising
sales arm of Sky. This makes it possible for
automotive retailers to access Sky AdSmart
vehicles, it can advertise to men or women
between the ages of 40 and 60, rather than
those in their 20s and 30s who might be less
able to afford its products. By combining
viewer attributes to form thoroughly-profiled
audience groups, that retailer can be certain
to implement affordable, hyper-targeted TV
marketing campaigns, generating immediate,
trackable results.
to hit its desired demographic. This benefits
not only advertisers, but also viewers who will
now see advertising more specifically suited
to them.
This new way of delivering commercials
via a satellite feed to set-top boxes offers
a huge degree of versatility. Enabling
targeted ads to be delivered only to specific
and relevant households chosen by the
advertiser. No longer the preserve of larger
automotive brands, television advertising
becomes accessible and affordable, notably
for car retailers and groups targeting
specific territories.
With the ability to deliver targeted advertising
at an individual household level within linear
broadcast feeds, Sky AdSmart is an innovative
and highly sophisticated service that presents
a breakthrough advertising opportunity.
0844 324 5895
www.gforces.co.uk
Ultimately though, the new service will deliver
far better results for every Sky AdSmart user,
regardless of their size, not least because
it’s priced per ‘impression’, only generating
charges where the target household sees
at least 75% of the ad at normal viewing
speed. Furthermore, to ensure the consumer
demographics data used through Sky AdSmart
is robust, the audience measurement specialist
RSMB has been appointed to perform an
independent audit of the methodology.
By tailoring the advertising to TV content
and information provided by Sky subscribers,
MANUFACTURER NEWS
Ford Retail’s parts division breaks through £100m
Ford have announced that turnover in their
parts division, @first Parts has exceeded
£100m in 2013.
The results mark the largest turnover for the
division since its inception as a stand-alone
entity in 2004. More importantly the figures
represent at 14% increase on the previous
trading year. This overall parts increase is
slightly higher than the 12% reported for parts
sales from the Ford dealerships.
Managing Director of @first Parts, Jon Harte,
says that the improvement in sales has resulted
from customer focus: “at the heart of @first
Parts’ business strategy has been putting its
customers first; making sure the process of
purchasing parts is as easy as possible and
ensuring they receive an excellent service.”
Harte says that the division sees further
growth ahead for 2014, which should result
from new products, training and an expansion
of the sales team:“Key to this will be the national
roll out of the @first Express solution,
investment in new technologies and sales tools,
as well as improved efficiency within the
warehouse and logistics operations. The year
ahead will also see an increased focus on
training and development across the @first
Parts divisions.”
INDUSTRY NEWS
Audio Branding – How does
your dealership sound?
A survey of 242 motor traders by PH Media
Group has revealed the most popular audio
branding techniques employed in the sector.
It may come as no surprise that the male
dominated automotive retail sector opts for a
male voice, aged between 35 and 50, to speak
its pre-recorded messages to consumers. Dan
Lafferty, Head of Voice and Music at PH
Media Group say this is all about easing
potential consumer anxiety: “An older, deeper,
male voice can be used to convey a sense of
authority, especially when combined with
corporate music. This is important in a trade
where comparatively high order values and
sometimes limited product knowledge can
prove a major source of anxiety for
consumers.”
However,
before you
start the in
house talent
show for the
most
authoritative
male voice
between 35
and 50, it
may be
worth
double
checking if
this really is
the right voice for your customer base. Dan
Lafferty explains: “Companies should use a
voice which best reflects their products,
customer base and service proposition. In
some cases, a regional accent may even be
best, conveying a sense of tradition and an
understanding of a very specific customer
base.”
The rule of thumb regarding the use of
music to build your brand identity is: avoid the
use of popular music tracks, instead opt for
something that will be fresh to your customers’
ears. According to Dan Lafferty this principle
results from the wish to keep the consumers’
emotional baggage out of the equation:
“Placing a piece of commercial music in an
on-hold situation, no matter how cheery and
upbeat it may seem, is a lottery of the
individual’s previous experience of the track.
I can identify with this point, having once
been placed on hold by a bank, and then told
by a soothing female voice, that: “We give
every customer as much personal attention as
possible”. The soothing pre-recorded female
stopped talking and the hold music kicked in:
“Hello darkness my old friend, I’ve come to
talk with you again!”
Dan explains the benefits of fresh tunes: “A
bespoke music track starts from the ground
up, with
each
element
forming or
reflecting
the brand
proposition,
and with
there being
no previous
exposure
among the
client base.
The
physical
attributes of the track - whether major, minor,
fast, slow, loud or quiet - are used to
communicate emotional meaning, rather than
the personal experience of the individual.”
The final piece of advice that the audio
branding executive sees as key: make sure
that the audio changes regularly: “From a
music and voice perspective, changing
messaging makes sure that the callers don’t
suffer from the fatigue of being fed the same
information repeatedly in the same manner.”
…Your call is important to us….
Benfield partners
with HPI
Dealer group Benfield has signed a
partnership with used vehicle information
provider HPI. Under the agreement, HPI
will be providing a full suite of products and
services, alongside its core offering, the
HPI Check and National Mileage Register
(NMR).
Benfield has 34 dealerships across the
North East of England, Yorkshire, Cumbria
and Scotland, and represents 16 brands
including Alfa Romeo, Audi, Ford, Honda,
Nissan and Volkswagen. Through its
partnership with HPI, Benfield will be
offering HPI Driveaway, the short-term
insurance cover, enhancing the customer
experience. In addition, HPI’s Spec Check
service will help Benfield’s dealerships
make more accurate valuations and
maximise profits.
David Hall, Benfield’s group purchasing
manager, said, “We are delighted to team
up with HPI and through this partnership
we can ensure the quality of our stock,
protecting both our business reputation
and our customers from the dangers of
potentially buying a car with a hidden past.
“The partnership sees us benefit from
more than just the HPI Check and NMR
offering. HPI’s Driveaway and Spec Check
services offers our dealerships vital sales
tools to help us deliver the quality care our
customers expect from Benfield.”
HPI automotive director Roger Evans
added: “HPI’s core vehicle information
service remains a valuable offering for
dealers, but we continue to develop market
leading products and tools that help motor
groups, like Benfield, maximise sales
opportunities and win and retain customers.
We look forward to working closely with
Benfield to bring its dealers the benefit of
HPI’s growing suite of services, protecting
its customers from used car fraud and
boosting its bottom line.”
INDUSTRY NEWS
BCA to add LCV video appraisals
Auction giant BCA is to rollout a new commercial vehicle video
appraisal service this year.
These appraisals allow buyers to view every aspect of the exterior
and interior of each vehicle in advance, showing the condition and
specification of the vehicle.
Commenting on the move, BCA’s general manager commercial
vehicles, Duncan Ward, said: “We are delighted to announce that
vehicles offered by many of the biggest blue chip vendors of light
commercials will include the BCA Vehicle Video Appraisal service for
2014.
“We conducted a thorough and comprehensive pilot during 2013 with
selected vendors and the results were exceptionally positive.”
Ward points out that average residual value performance increased
notably when the service was used as part of the pre-sale marketing
and first-time sale percentages improved.
He added: “Buyer response was overwhelmingly positive and the
service proved very popular with BCA Live Online bidders.”
BCA uses the latest generation tablet technology to produce a
360-degree video of the vehicle’s interior, exterior, roof and loadbay
condition. The video runs in HD format on PC, tablet and mobile
devices and takes 2 minutes to view with a fast scroll option if required.
It also offers multiple still images with a zoom feature, to give buyers
more flexibility. The video appraisals are accessed through the online
BCA stock locator.
It polled its buyer customers about the new service during the pilot
period. More than 70% of buyers polled said BCA’s Online Video
Appraisals give them the confidence to bid higher, while 73% said they
would be more confident to bid via Live Online.
OFT provides details on Lookers/
Shields Land Rover case
The Office of Fair Trading (OFT) has published its 36 page decision
regarding the potential competition issues arising from the purchase
of Shields Land Rover by Lookers PLC.
Lookers PLC announce the acquisition in May 2013 following the
decision to retire of the owner Shields Land Rover, Joe O’Donnell.
The deal came under the scrutiny over competition concerns as the
Lookers PLC already owned the Taggarts group, who operate the
only other Land Rover dealership in South Glasgow and Motherwell.
The OFT launched an investigation in September 2013. The
OFT’s investigation was concluded on 9th December 2013, when
the body signaled that there would be no referral to the Competition
Commission.
With the complete details of the decision now published, it has
become apparent that chief among the OFT’s concerns was
possible lack of competition on: ”the supply of retail servicing and
non-warranty repairs for Land Rovers less than three years old and/
or still under warranty. “
The OFT felt that the reduction in competition was mitigated by
the relatively small size of market for the services in question, and by
the presence of alternate options for consumers in this market. The
report states: “ the extent of any price effect [of the reduced
competition] is likely to be reduced by the actual and/or perceived
threat of supply-side responses. For example, there is some, albeit
limited, constraint expected post-merger from a number of sources:
rival Land Rover franchise dealerships, independent garages and
Land Rover specialists. It is also the case that national chains, such
as Halfords, and Kwik Fit will provide a service to a manufacturers’
specification.”
Project1:Layout 1 25/2/10 11:40 Page 1
Glass’s launches dealer stock service
Glass’s has launched a new tool that gives dealers the ability to connect
with other traders to buy and sell stock online.
TradeAlerts allows dealers to source new stock or quickly sell stock
that doesn’t match their dealership profile. The service works through
email alerts.
Commenting on the new development, Steve Worrell, head of dealer
sales at Glass’s, said: “In an industry that is getting more and more
competitive, good stock management is vitally important and Glass’s
works hard to help customers make intelligent decisions in this respect.
“TradeAlerts is a simple concept that we believe will make a positive
impact on our customers businesses.”
When dealers are reviewing stock, they will inevitably come across
vehicles that simply aren’t selling, and they will get a feel for cars that
will sell well on their forecourt. With TradeAlerts, through a simple
system of email alerts, potential buyers can source new stock from
more than 3,500 other dealers.
Users also have access to live retail pricing data through GlassNet
Radar, enabling them to understand retail potential of individual
vehicles.
Worrell added: “We are committed to continually bringing products to
market that help our customers improve their bottom lines.
“We believe TradeAlerts will have a positive impact on buoying up the
industry and helping dealers to become more profitable.”
RML’s subscription service is tailored exclusively to the UK automotive industry.
A low monthly fee entitles you to expert legal advice and assistance
on any industry issue, from contracts and complaints to criminal law.
We promise…
✓ No time recording
✓ No fee building
… just cost-effective guidance from experienced industry professionals
For more information about our
legal subscription service call:
01832 293 003
e-mail: info@retailmotorlaw.co.uk
visit: www.retailmotorlaw.co.uk
FINANCE FEATURE
CAP Automotive warn of potential
oversupply in ‘nearly-new’ market
FCA compliance
made simple
CAP Automotive have flagged the presence
of two potential threats to the stability of the
used car market.
The data and market and analysis service
is seeing swelling numbers of ‘nearly new’
cars coming to the market. This trend is the
result of changes in manufacturers’ strategy
at the end of 2013 to gain market share;
specifically their increased appetite for short
cycle rental market and dealer preregistration.
Coupled with the oversupply of younger
cars is the scarcity of “clean’ vehicles in the
3-4 year bracket. CAP report that “only
around 20% of cars available in the current
trade market could be described as
anywhere near clean”. The concern is that
the oversupply in the nearly new market will
cause a ripple effect to older vehicle values,
as consumers start to engage with better
value newer cars.
Derren Martin, Senior Editor at CAP
Automotive said: “We are already seeing
some pressure on values where short cycle
Dealers concerned about becoming FCA
authorised and regulated in time for the
April 1st deadline could have a solution
thanks to a Lancashire business who are
currently working with Hillendale Land
Rover and Jaguar Bolton.
Chestnut Business Solutions of
Leyland near Preston offers appointed
representative status to dealerships, who
can concentrate on the sale of vehicles
safe in the knowledge that all the
compliance checks and procedures are
being adhered to.
Talking about the service they are
providing, Jemma Holden, Director of
Chestnut Business Solutions said, “Our
aim is to deliver first class compliance into
your company with minimum fuss. We are
individually authorised by the Financial
Conduct Authority. Involving Chestnut in
your business will provide you with you
immediate savings on your FCA fees and
the peace of mind that your compliance
procedures are in safe hands.”
Speaking as a current user of the
service, Lee Collins, Managing Director of
Hillendale LR Ltd said, “The involvement
of Chestnut in the business has brought
many benefits, other than the obvious
FCA legislations. Having someone on site
that can provide instant insurance quotes
and a cover note for the vehicles often
helps close the deal.
“Mark, Jemma and the team are very
friendly, customer facing and
professional. They are a real asset to the
Hillendale business and our relationship
is testament to the excellent level of
service that they provide.”
cars are returning to the market. This
increase in rental business is not confined
to the usual suspects among the
mainstream volume manufacturers, with
some premium German brands also posting
very substantial increases in that area too.
“Nor is the issue of growing supplies of
newer cars confined to increased rental
business. Certain manufacturers who have
not pursued the same course have, instead,
simply increased their number of selfregistrations. This shows that, in the pursuit
of market share, there is more than one way
to skin a cat.”
iAutoUK launches first franchise in Solihull
iAutoUK commenced its franchise roll out in
Solihull, where the first of 15 state-of-the-art
service centres due in 2014 opened for
business.
The company was founded in Coventry in
2009 by former financial recruitment
consultant, Andy Fox. Its business is as a
professional main dealer alternative for the
service and repair of German brands and
Land Rover.
The success of
the enterprise in
Coventry lead
Mr. Fox to the
British
Franchise
Association to
help develop a
franchise model
for the business.
The Solihull
franchise is the
result of a
six-figure
investment by
local businessman, Kamran Saleem, who has
become the brand’s first national franchisee.
Located at the town’s Monkspath Business
Park, the launch has created five new jobs
with ten more expected in the next few
months, as the workshop has the potential to
accommodate up to 40 cars per day.
iAutoUK founder, Andy Fox, explains his
reasons for choosing Solihull: “We felt that our
first franchise should be located in the
Midlands, so the new Solihull site fitted our
aspirations perfectly, as did our launch partner,
Kam Saleem, who is already a successful
businessman in his own right. The response
from potential investors has been nothing
short of phenomenal. In addition to supporting
Kam and his team over the coming months,
we plan to open 14 more iAutoUK franchises
this year, including another three in the
Midlands region.”
Mr Saleem,
aged 32, from
Solihull, who is
also a director
of a
Birminghambased
accountancy
and asset
finance
business, has
confidence that
his new venture
will deliver for
the iAutoUK
brand: “I have
absolute confidence that our focus on
professionalism and value for money will be
well received by local consumers. In time, it
could pave the way for further investment in
other sites.”
iAutoUK is an approved member of the
Office of Fair Trading’s service and repair
code, ‘Motor Codes’, run in association with
the Society of Motor Manufacturers and
Traders. Technicians are registered with the
national Automotive Technician Accreditation.
INDUSTRY NEWS
m-hance to power NextGear Capital UK
Vehicle stock funding organisation NextGear
Capital UK is to adopt a range of management
solutions from m-hance.
The company, which is aiming to support
independent dealers, is implementing a
portfolio of financial management, mobile
eProcurement and document management.
m-hance’s integrated solutions will provide
NextGear Capital with efficient purchasing
processes and financial transparency and
control by negating the need to manually
handle and circulate paper-based documents.
The planned go-live is May 2014.
NextGear Capital is set to become the UK’s
largest stock funding provider to the
automotive industry with initial funding
estimated to be ten times more than any other
comparable provider. Aimed at independent
dealers that retail cars as their primary income
source, NextGear Capital’s UK funding
programme has bold plans to grow in excess
of £125 million within a few years.
Commenting on the news, David Mercer,
CEO at NextGear Capital UK, said: “We
wanted a scalable and integrated solution that
could support a sustainable business model
as we grow. The solution also had to be
user-friendly and incorporate mobile
connectivity which could evolve with changing
industry conditions, while sparing us the
burden of paper-based inefficiency costs from
the beginning.
“As an experienced implementation partner
with a strong reputation for delivering quality
within the professional services sector,
m-hance was the unanimous choice to
support us in this exciting new venture.”
m-hance’s integrated solution will provide
NextGear Capital with fully automated
processes to provide fast financial reporting
and bank reconciliation to aid transparency.
Scanned purchase invoices and employee
expense claims will be electronically routed to
authorised employees to approve, reject or
query from the desktop or via tablet and
smartphone devices using the system’s
intuitive mobile functionality.
The web-based solution will also allow
NextGear Capital to introduce approval
hierarchies by transaction type and easily
report on its expenditure, preventing
unauthorised spending and ensuring tight
financial control.
Vehicle manufacturers losing out online
The vehicle manufacturers remain reluctant to
start online sales initiatives and are losing
important market shares to other players,
that’s the view of international management
consultancy firm Arthur D. Little’s (ADL) which
comes out of their latest report, Spinning the
Wheel Online – Online Transformation in the
Automobile Industry.
The ADL report looks at the impact of the
online experience for automotive customers,
their buying behaviour towards traditional
channels and requirements for the online
channel as well as the strategies of
manufacturers and dealers addressing these
changes
Introducing the report,
Giancarlo Agresti ADL’s Head of
Global Automotive &
Manufacturing Group says, “We
think that those who are
prepared to abandon the old
patterns that have
characterized the amazing
story of success for the
automotive industry of the past
century will discover that
customers are ready to
participate with enthusiasm in
new forms of communication
and interaction with automotive
manufacturers - and dealers.”
Unsurprisingly the firm’s research found
that the internet has a massive impact on
customer behaviour, with people spending
more time doing research online before
purchasing a car or arranging a repair.
Manufacturers and retail are replying to these
needs with increased multi-channel marketing
and online customer care. However,
experience shows that the digital
transformation potential has not yet been fully
tapped: seamless customer interaction
throughout all channels and tailored sales
initiatives are lacking. Taking into account that
more than 50% of new car buyers consider
finalizing the car purchase online; and that the
online share of car sales will reach up to 6%
by 2020, there is substantial top-line potential.
Talking about what they found, Rosa
Meckseper, Principal of ADL’s Automotive
Practice says, “Almost 70% of customers use
online tools for information research and
configuration, enabling OEMs and dealers to
guide the buying intention of potential clients.
Customers’ don’t want to go through this
process twice and therefore require
seamlessly integrated processes over all
channels.”
Off the back of the research,
ADL make five core
recommendations to cope with
the new challenges:
1. One voice to the customer
OEMs and dealers need to
align marketing and CRM
processes to provide a reliable
and seamless customer
experience across all sales
channels and touch points
2. Innovative and new sales
formats
The sales approach of the future
has to serve customers at a
location of their choice
3. Sustainable price position
Online sales must not accept price
competition
4. Connected after sales
Customer loyalty is key for a sustainable
revenue stream beyond the initial car
purchase
5. Online sales incubator
Complex headquarter structures will not be
able to keep up to speed with new internet
competition - the best chance is to start in an
incubator mode by trial and error.
IMI adds two new
award qualifications
The Institute of the Motor Industry (IMI) has
launched two new award qualifications for the
body repair sector.
The level 2 and level 3 Multi-skilled Vehicle
Collision Repair Qualifications cover paint,
panel and MET (mechanical electrical trim)
disciplines, and were developed in conjunction
with Fix-Auto, a national body repair chain.
Funding for the awards has come from the
Department for Business Innovation and Skills
(BIS), Employer Ownership of Skills (EOS)
investment fund.
The qualifications are also available as part
of a Multi-Skilled Collision Repair
Apprenticeship.
The first two IMI Awards approved centres
to deliver the qualification are Barking &
Dagenham College and S&B Automotive
Academy, both as part of their apprenticeship
training programme, which incorporates the
qualifications required for the SASE compliant
apprenticeship and also includes additional
ATA assessments into their branded
AutoRaise programme.
As a new qualification, Multi-Skilled Vehicle
Collision Repair is available to IMI Awards
approved centres, providing them with a wider
option for candidates and businesses to invest
in.
INDUSTRY NEWS
G3 Remarketing sees 24% boost in
online attendance during January
G3 Remarketing says attendance at its online
auctions was up by 24% in January as dealers
and car supermarkets sought to buy stock.
According to the online remarketing firm,
bidders increased by 36% during the same
period. Actual bids placed jumped by 46% and
the average ‘under the hammer’ duration rose
in January too, due to higher bidder numbers
by seven seconds to 43 seconds per lot.
Car supermarkets continue to be the
strongest bidders, making some 38% of all
purchases through the firm’s online auctions.
January’s auctions achieved an overall
conversion rate of 87% and a total CAP clean
of 101.3%.
Commenting on the strong start to the year,
Matt Dale, director of G3 Remarketing, said:
“These stats show that dealers are becoming
more confident in buying stock from online
auctions and see the benefits of the online
platform, over a bricks and mortar auction. We
know buyers like the convenience and time
saving features of bidding online from the
comfort of their office, or while they are on the
move.
“Our audio and visual description of each
vehicle has gone down very well with dealers.
This allows them to view comprehensive
electronic vehicle appraisals, a full library of
detailed images and listen to a specific audio
commentary guiding both the vendor and
purchaser around each vehicle.
“Our interactive auctioneer brings a sense
of occasion to the proceedings and provides
iVendi reports surge in use of mobile
devices to access dealer websites
Used car customers are increasingly using
smartphones and tablets to visit dealer
websites, according to technology specialist
iVendi.
The company says that, based on usage
figures of its Car Finance Checker web tool,
around 55% of buyers now use a mobile
device compared to 33% in July.
Commenting on the trend, iVendi director
James Tew said: “The rate of change is
astonishing. There has been a definite sea
change in a matter of months, perhaps
powered by very high tablet sales over the
Christmas period.
“Of course, what this means is that dealers
need to ensure that their web sites work
extremely well on smartphones and tablets. If
they don’t, you will unquestionably lose out on
business to those that do.”
Tew added that mobile device use of Car
Finance Checker was dominated by iPhone
and iPad users, which were well ahead of
Android and other devices. He said: “While
sales indicate that Android devices are well
ahead of Apple, the statistics indicate that iOS
users represent the overwhelming majority of
online used car buyers.
“This is a large group of customers who are
happy to choose, finance and complete a
used car deal on their smartphone. Dealers
have to meet their requirements by creating a
high quality online journey.”
an interactive and entertaining experience,
more akin to the environment witnessed at
physical auctions.”
G3 Remarketing offers vehicles from a
range of sources, including Citroen and
Peugeot Financial Services, Ogilvie Fleet,
Sema Lease, Lex Autolease, TCH Leasing
and many other fleet, finance and leasing
companies.
IN BRIEF
Click on stories to read on
motortradenews.com
NFDA offers dealers help
with FCA compliance
IMI SkillAuto programme
nominated for training
award
Little & Often!
Neil Addley, Managing Director of Trusted Dealers
Neil Addley, Managing Director of Trusted
Dealers
A long time ago I was told to use my
ears (two) in proportion to my mouth (one)
when selling and I guess the rule holds
true today.
Most people that turn up to a showroom
have a good idea of what they fancy and
through the course of a natural
conversation they’ll answer nearly all the
questions you need to qualify them.
Sure, you may need to probe a bit on
finance once you’ve built a rapport and
you certainly wouldn’t expect them to leave
without giving contact details and an agreed
follow up – either call or appointment.
The same applies online – less is more. If
someone wants to “chat” they don’t want to
give their email address or phone number –
well not straight away!
For me the biggest sin is still that, having
got all this information, we don’t always
follow them up – that would be like Kylie
Minogue giving you her mobile number and
you decide you’d rather watch “Deal or No
Deal”!
JASON DAWE
When qualification
becomes interrogation
Name, address, contact telephone number?
It’s the minimum standard when it comes to
gathering customer details, but I’ve noticed
how this list has grown in recent years.
Email address, date of birth, mobile, office
and home numbers. Current car, method of
funding, annual mileage, intended date of
change, other models considered, monthly
budget…..the list goes on and on.
I witnessed this ‘information gathering’
face-to-face recently. I was sat in a
showroom, a customer walked in and within
seconds a salesman had led them to a
desk, the questions began and a keyboard
was soon being tapped.
The customer seemed happy enough
about the basic stuff; name, contact
number, email address but as the sales
person started to dig deeper I sensed a shift
in the mood. The conversation had become
one way, the customer responded to
questions but asked none of their own, the
conversation had become an interrogation.
So why had this happened? Almost
certainly because the dealer had a DMS
system that needed to be populated with
data, the sales person had been taught the
importance of qualifying the customer and
the managers had set a standard that
insisted that all the information was
gathered.
On paper at least the data capture would
probably be considered text book, but in
reality I don’t think it went that well. As the
interrogation drew to a close the customer
made his move to leave, the intended look
around the cars became a cursory glance at
the exterior of a pre-registered model by the
exit. The promise to ‘come back in once he’s
read more on the website’ was blurted out with
no conviction at all.
I pondered on the course of events. In the
sales department morning meeting the
‘prospect’ would be discussed, the data
capture reviewed and the CRM plan followed
to its natural conclusion. At some point the
customer would probably be downgraded to
‘a waste of time’ and future contact diarised for
1/1/2016 (it’s a nice easy date to type into a
computer field). Or maybe I’m being cynical.
We all know how valuable prospects are
now, many of us are prepared to pay big
bucks for decent ones. But all too often when
we get a prospect that actually approaches
us, I think we get it wrong. Rather than sit
back, listen and consider why they have
made contact, what they want from
us, and how we can help. We seem
to abdicate all sense of interpersonal
skills by letting our CRM systems
drive the conversations.
Can you imagine if we had
to follow a script when it
came to meeting our life
partner? That we could
only have asked them
specific questions,
‘Where are you from?
Where do you work,
what do you earn,
what are your contact
details?’ At best they
would think we were weird,
at worst they may suspect
we are some kind of stalker.
Either way a second date would
be unlikely.
The best relationships, the most enduring
and trusted relationships are built on a
fundamental liking of the other person.
Shared values a similar senses of humour
and thoughts and ideas that are two way
and free-flowing. Contact details, address
and previous work life comes later, and in
truth can seem less important at the outset.
So let’s think about our customers as
people rather than data fields. Stop letting
the CRM system define the pace, content
and order of the conversation and get back
to the idea of getting to know people. In the
grand scheme of things we may miss the
odd fact that we could do with knowing
somewhere down the line, but do you know
what? If the customer likes us, they won’t
have a problem giving us that information
when we ask for it later on.
Ask yourself the question, why do we
qualify customers? For me it’s not about
ticking boxes or satisfying our managers
or auditors. Data capture (I hate
the word capture as it implies
some kind of restraint against
ones will!) should be about
finding out information that
can HELP the customers
get what they want and
along the way make them
feel comfortable and
welcome. If your CRM and
data capture tools are
changing the way you want
to talk to customers, think
about changing the system
not your staff.
TELL JASON WHAT YOU THINK: jasondawe@motortradenews.com or tel: 01225 760612
TECHNOLOGY NEWS
Mass customisation in UK car dealerships
As part of a series of technology-focused
articles commissioned by Motor Trade
News, Paul Smith, Managing Director of
key management solutions firm eTag
Solutions asks, how do we apply the
mass customisation revolution to UK car
dealerships?
I recently read an article by the BBC’s
long-standing global business
correspondent Peter Day. The piece was
based on the BBC Radio 4 programme
he hosts called World of Business.
Entitled The World Turned Upside Down
it elucidates Day’s reflections based on
conversations he has had with leading
business thinkers over the last 10 years.
Its central thesis is that we are at the start of a
post-industrial revolution – an era in which the
business winners will be those that can
precisely meet the needs of many, many small
groups of like-minded individuals – an era of
Mass Customisation: http://www.bbc.co.uk/
news/magazine-23990211
He contrasts the newly emerging era with
the industrial revolution and specifically the
founder of Ford Motor Company, Henry Ford,
who pioneered efficient mass production and
mass distribution. To be a major company you
needed to sell your products to the maximum
number of people wherever they are in your
home market and around the globe.
The techniques of mass production and
mass marketing pioneered by Henry Ford are
still being played out by big business in the
West today. But the nature of manufacturing,
in the developed world at least, is changing
now that manufacturers have worked out that
no matter how much they improve production
methods; build standardised parts; and cut
prices through the supply chain - they can
never compete on price with the developing
world: the BRIC economies of Brazil, Russia,
India and China, for example.
So what is the future of making things in the
UK and the rest of the developed world I hear
you ask? The answer appears to lie in
focusing on creating systems and machines to
help us customise products cost-effectively;
work more collaboratively to innovate –
globally if necessary; and of course listen to
customers more acutely to ensure that we
deliver exactly what they want, when they want
it. With all these elements in place, mass
customisation is possible. The final key
ingredient is high quality. We must achieve
that to differentiate ourselves from the new
mass producers.
If you delve into the world of manufacturing
and industrial automation today, much of the
focus is on building production line machines
which are capable of rapid retooling and
reconfiguring so that products, including cars,
can be mass customised. One article I read in
a leading industrial automation title Drives and
Controls highlighted mass customisation in
action at an industrial automation components
business called Danfoss where, for over 10
years, “Instead of mass-producing large
numbers of standard products and stocking
them in warehouses where they wait until an
order has been placed”, they instead
manufacture individually tailored products to
order.
Many of the products they manufacture are
shipped within 24-hours of orders for them
being placed: http://www.capsule-group.com/
digital/dac/B310/files/assets/basic-html/
page26.html
It’s impressive stuff and clearly requires very
sophisticated IT systems combined with
precision engineering. Robotics is increasingly
used on production lines for this reason.
Stepping away from ‘big manufacturing’,
Peter Day talks about the idea of being able to
‘draw and print’ highly customised products.
He sees 3D printing as an enabler of mass
customisation. It also uncovers why firms like
Google have become the business megastars
of the age while many dotcoms went by the
board.
Google sees the world as all businesses
need to see us - the consumer - as individuals
or at least small groups of individuals. As one
Silicon Valley-based dotcom pioneer Joe
Kraus said to Peter Day: “The 20th Century
was about dozens of markets of millions of
consumers. The 21st Century is about millions
of markets of dozens of consumers.”
Does that also mean the era of mass media
communications is also over? Again not
immediately but it is changing as the digital
world offers us a whole lot more choice in
what we read, listen to and watch. It naturally
fragments the audience so mass advertising
for example is not as valuable today as it was
10 years ago – the audiences for even the
most popular TV programmes are just smaller
than they used to be. Even UK national
newspaper circulations continue their
inexorable declines.
So if all this is happening around us, can we
not take some of the lessons learnt in
manufacturing or by Google, into a service-led
world of car dealerships? I believe the answer
is yes.
My advice is start by thoroughly
understanding your customer-base. What
is their new and used car history and
aftersales buying history and what are
they not buying from you? Work out why
they are not buying. Use everything at
your disposal to gather this intelligence
– online surveys, questionnaires
completed in the dealership or from
home.
Once this has been completed and
analysed, begin to segment your
customers into meaningful groups. So
one group might be ‘first time car buyer
prospects’, another ‘loyal used car buyer
who does not currently buy servicing from
us’ etc.
Once this work has been done you can
begin to analyse how they would like to be
communicated with – are they interested to
know about the latest offers on regular
servicing or financing options, for example?
Tailor the communications specifically to these
pools of customers. Don’t be afraid to get to
know them much more than you do today.
Some of the feedback will be negative but you
cannot engage with them more effectively
without properly understanding what makes
them tick.
Take the example of how many golfers buy
golf clubs today. The clubs are custom made
to suit the height, weight and swing of each
individual. The top five brands have built
specialist high tech fitting facilities in golf
shops to provide this facility. If you are serious
about golf you are likely to go with one of those
five brands but at the same time the clubs you
get are customised so no two sets are exactly
the same. The customer becomes the focal
point. The buying experience becomes both
an enjoyable and educational one. That
sounds like a great model for buying a car.
What about extending that customisation
into how you communicate with your
customers? Allow them to configure the way
they engage with you. Do you track and record
every interaction with them and use this
information to ‘describe’ them?
Vehicles are already highly configurable, but
are your aftersales services equally so? Are
your servicing and finance products available
for consideration and purchase online? Are
they supported with an online chat facility?
Can you take service bookings online around
the clock? If not, why not now that we are all
organising our lives via the web from almost
the moment we get up to just before we head
to bed?
Even Peter Day is unsure exactly how the
new era of mass customisation will pan out for
a service-led economy such as the UK. But
surely if we continue to innovate by creating
new service offerings; get closer to our
customers; tailor our offerings to more
accurately meet their needs; and treat them
more as individuals, then you too can deliver
the service equivalent of mass customisation?
PEOPLE NEWS
Group 1
Automotive UK
CEO resigns
Chris Hayden, CEO of UK Operations Group 1
Automotive resigned from his position on
Thursday 6th February, citing ‘personal
reasons’.
Mr Hayden joined Group 1 Automotive in
2011 following a decade serving as CEO of
Ford Retail Group. His initial post was as
Market Director at Group 1’s US division. In
May 2013 Hayden moved within the Group
taking up the position CEO of UK Operations
Group 1 Automotive. His responsibilities
included running the day to day business as
well as growing and integrating new
businesses into Group 1 UK.
The announcement of Hayden’s resignation
comes hot on the heals of Group 1’s
publication of year-end results for 2013. The
group’s UK division reported revenue
increases for the year of 38%. UK revenue is
quoted at $197.4m (£120.7m). The revenue
figures break down as 37.5 percent and 94.3
percent increases in new and used vehicle
retail unit sales, respectively. The group
attributes the growth to recent acquisition
activity.
Group 1 operates over 100 dealership
worldwide and 19 in the UK trading under the
brands; Chandlers, Barons, and Think.
Vehicle brands offered include BMW, Mini,
and Audi. Chris Hayden’s next move has yet
to be confirmed.
Senior GM job for Vauxhall chairman Aldred
Vauxhall chairman and managing director
Duncan Aldred has been appointed to a senior
position within parent company GM in
America.
The long-serving Vauxhall employee will
become US vice–president, Buick-GMC
sales, service and marketing from the
beginning of March and will be based at GM’s
global headquarters in Detroit.
Aldred joined Vauxhall as an undergraduate
at its Ellesmere Port plant in 1990 and, with
Vauxhall sponsorship, went on to graduate
from Liverpool John Moores University with a
BA (Hons) in 1992. He subsequently worked in
various positions in Vauxhall sales and
marketing and was appointed retail sales
director in 2004. In July 2006 he moved to
Budapest as director, sales, marketing and
aftersales for GM’s South East Europe region,
transferring to Germany to take the role of
sales operations director for GM Europe in
2009.
He returned to the UK in January 2010 to
become managing director of Vauxhall Motors,
adding the chairman’s responsibilities in
December 2011. In addition to these roles,
Key appointment at Honda Motor Europe
Honda Motor Europe (HME) has announced
the promotion of Philip Ross (pictured) to
senior vice-president with responsibility for the
pan-European sales performance of Honda
cars, motorcycles and power equipment
products.
He moves up from his role as general
manager, Honda Finance. Ross joins fellow
senior vice-president, Ian Howells, following
Howells’ appointment in April 2013.
These moves to strengthen Honda’s
European management team come as the
business continues to expand its motorcycle
and power equipment product range, and
prepares for 4 major new car launches in
2015. Both Howells and Ross will report to Mr
Manabu Nishimae, President, Honda Motor
Europe.
Ross said: “I am delighted to make this
move as Honda enters a period of exciting
product launches and look forward to working
closely with the sales teams during this
important period for our European business.”
He joined Honda in 1996 and was
responsible for setting up Honda’s own
finance company. Over the last 17 years he
has overseen the growth of Honda Finance as
it has played a key role in supporting Honda’s
sales performance.
Duncan took
the
assignment of
acting vice
president,
sales,
marketing
and
aftersales for
Opel/
Vauxhall in
January 2013. His successor will be
announced at a later date.
IN BRIEF
Click on stories to read on
motortradenews.com
IAAF appoints new Chief
Executive
Isuzu Truck UK appoints
Network Business
Manager
people news
Automotive Jobs
Dealer Principal
General Manager
we now have an exciting new
opportunity for a Dealer
Principal in the Yorkshire/M62
region. In this key... role of either
Dealer Principal or General
Manager...
Our client has a major challenge
for a General Manager with real
credentials.
Yorkshire
Prestige Sales
Manager
CM Postcode
To head up a small but busy
sales team. The Sales Manager
represents the interests of this
dealer in all aspects related to...
Surrey
Dealer Principal
ENGLAND
who can demonstrate both a
stable and successful track
record in a similar automotive
role. The salary package will be
fixed against the US Dollar, but
equates...
Warranty
Controller
Share In Our
Success
Seeking an experienced
Warranty Controller to join their
medium sized operation.
We have a limited number of
exclusive, postcode protected
areas available to selected
achievers to invest in the...
Kent
Business
manager
Birmingham
A tremendous opportunity to
join an independent Group
Various Nationwide
100s of
car jobs at
CLICK HERE
Dealer Principal
Wilmslow
has arisen for a Dealer Principal
to take on this expanding
business within the luxury
automotive sector... role of either
Dealer Principal or General
Manager...
Branch Manager
Sussex
An excellent opportunity has
arisen for an experienced
General Sales Manager to join
this medium sized franchised...
Dealer Principal
Birmingham
Trade Job: Dealer Principal for
Main Dealer in South...
Vacancies: Dealer Principal
Required for Main Dealer.
Experienced Automotive Dealer
Principal required in...
Business
Development
Manager
National
An exciting opportunity to join a
well established Independent...
LCV Sales
Consultant
West London
This is an excellent opportunity
to work with a well known, large
and established dealership
groups in the outskirts of West
London.
Business
Manager
London
Our client is seeking an
experienced and proven
business Manager to join their
prestige operation.
To advertise your vacancies e-mail: jobs@motortradenews.com
people news
Automotive Jobs
General Manager
London
and accomplished General
Manager for an exciting... This
job was originally posted as
www.totaljobs.com/JobSeeking/
Automotive-General-Manager_
job58591207
Parts Sales
Representative
M62 Corridor
Opportunities to progress within
the group are extremely good.
General Manager
ENGLAND
General Manager Automotive
Company- Wednesbury- Salary
48k + benefits Company An
automotive company who...
Operations, the General
Manager will be responsible...
General Sales
Manager
General Manager
Sales Executive
This is a fantastic opportunity for
a top flight dynamic, process
driven Sales Manager looking to
join a top flight dealer group.
General Manager Automotive
Company- Wednesbury- Salary
48k + benefits Company An
automotive company who...
com/JobSeeking/GeneralManager-Automotive-Industry...
You would be responsible for
the sale of New and Used
Vehicles and F&I.
General Manager
Sales Manager
and accomplished General
Manager for an exciting... This
job was originally posted as
www.totaljobs.com/JobSeeking/
Automotive-General-Manager_
job58591139
This premium franchised client
is seeking an experienced Sales
Manager for a well established
dealership in Sussex.
Cambridgeshire
Oxford
ENGLAND
Sussex
Oxford
Brand Manager
CR Postcode,
Surrey
looking for a dynamic and
enthusiastic individual with
General Sales Manager
experience to positively...
Repair Data
Manager
RG Postcode
Reporting to the Head of
Operations to lead a team
responsible for repair data
acquisition and formatting of...
WHAT ARE
YOU WORTH?
Service Manager
General Manager
ALL FRANCHISES
seeking to appoint an
experienced UK based Service
Manager capable of managing a
significant site.
General Manager for an
exciting, hugely successful and
prestigious dealership in
Leicester. This role is ideal for
an experienced General
Manager who has a...
Aylesbury
ALL REGIONS
Leicester
FREE TO USE BUSINESS TOOL
CLICK HERE TO TRY IT TODAY
Toautomotive
advertise your
vacancies
e-mail:
jobs@motortradenews.com
The only
publication
sent
to every
UK retail car dealership
people news
Automotive Jobs
General Manager
General Manager
Chris Eastwood
Automotive ltd
lo ndon, ENG
General Manager for an
exciting, hugely successful and
prestigious dealership in Bury St
Edmunds. This role is ideal for
an experienced General
Manager who has...
va ried technical sales role
which is 50% account...
conduct all pre-sales activity
Sales Manager with at least 2
years experience gained
within a Prestige Dealership/
Manufacturer, must be
currently working as a Sales
Manager / GSM and have...
A dynamic General Manager is
required for a large volume
dealership.
Branch
Manager Automotive
parts, Guildford
Branch
Manager Automotive
parts
New Car
Controller /
Manager
Customer Service
and Operations
Manager
of high quality automotive
aftermarket products to
independent garages and
national brands. We are
Colchester, ENG
of high quality automotive
aftermarket products to
independent garages and
national brands. We are
Looking for an exceptional
person with a proven and stable
history within a main...
Client is a Specialist provider in
fleet management...
General Sales
Manager
National/UK Sales
Manager
(Refinish)
Area Sales
Manager
(Aftermarket
Parts)
Business
Development
sales Manager,
Automotive
Electronics
vehicle sales
Manager
1000’s more
jobs online
@ motor tradenews
Hot Recruitment
Essex
This prestige franchised client is
seeking an experienced
General Sales Manager for a...
Area Sales
Manager
(Aftermarket
Parts)
London
THE JOB TITLE: Area Sales
Manager/Field Sales x4 THE
SALARY: Competitive Basic +
Car + Bonus + Benefits... Depot,
Regional Manager
North London
Exciting and role covering the
South East region for a niche
4x4 manufacturer, importer.
.com
ENGLAND
Manager, Regional Sales
Manager, Retail Manager, Retail
Sales, Sales Administrator,
Sales Account Manager... Sales
Engineer, Sales Executive,
Sales Manager, Sales...
Logistics
Assessor Southern Region
Working as a Consultant to w
FTA Clients you will be required
to identify areas of growth within
the region whilst building their...
London
Lancashire
London
Car/Automotive Aftermarket
Parts THE COMPANY: UK...
PG Automotive was formed by
Industry Professionals to
100s of
car jobs at
Bury St. Edmunds
Cheshire
Sales Office
Manager - North
West - (Parts)
Manchester
JOB TITLE: Sales Office
Manager THE SALARY
PACKAGE... background within
the automotive parts industry to
oversee an internal sales
department. Your overall...
Used Car Sales
Manager Prestige Dealer
West Yorkshire
The successful candidate will
benefit from a competitive basic
salary and excellent on target...
CLICK HERE
Sales Controller/
Business
Manager
Hereford
Sales Controller (Automotive)
Duties and... in the office. Sales
Controller skills and
specifications - Knowledge
about sales world - Excellent...
Bodyshop
Manager
Kent
Bodyshop Manager to take
control of a small franchise
Bodyshop based in Kent.
Sales/Technical/
Manager
(Refinish)
Stoke-on-Trent
Area Sales, UK Sales, Regional
Sales, Territory Sales... Field
Sales, OEM sales, Territory
Manager, Sales Executive,
Sales Manager, Product
Demonstrator, Sales...
Toautomotive
advertise your
vacancies
e-mail:
The only
publication
sent
to every
people news
Automotive Jobs
Aftersales
Manager
Surrey
Our client requires an
experienced Aftersales
Manager for this successful...
Field Sales/
Regional Manager
(Chemicals,
Refinish, Car
Care)
Field Sales/
Territory Sales
Manager
(Refinish)
Birmingham
Area Sales, UK Sales, Regional
Sales, Territory Sales... Field
Sales, OEM sales, Territory
Manager, Sales Executive,
Aftersales
manager
London
ENGLAND
A skilled and experienced
Aftersales Manager who will
have current experience, within
a PLC environment.
Sales Executive
(Prestige)
Branch Manager
(Parts)
This is an opportunity to work
with a great group, selling a
great product with a world wide
reputation. Package includes...
Automotive Distribution
Network. THE ROLE: As part
of... which can include an
Assistant Manager, Telesales
Executives, Parts Advisors, Van
Drivers and Warehouse...
THE JOB TITLE: Regional
Sales Manager. THE
PRODUCT: Automotive
Devon
Branch Manager
(Parts)
Birmingham
Network. THE ROLE: As part...
which can include an Assistant
Manager, Telesales Executives,
Parts Advisors, Van Drivers and
Warehouse...
Tyne & Wear
You need to be an Experienced
Manager to lead this dealership
to continued and greater...
Technical
Workshop
Manager
Middle East
Our client is a leading importer
of prestigious cars in one of the
Middle East countries.
Service Manager
Kent
Must be familiar with Aftersales
KIP’s and have excellent
communication and customer
care skills.
Branch Manager
(Parts)
London
Network. THE ROLE: As part...
which can include an Assistant
Manager, Telesales Executives,
Parts Advisors, Van Drivers and
Warehouse...
ENGLAND
Service Advisor
East Sussex
Main dealership experience
essential
Aftersales
Manager
Sales Office
Manager (Parts)
Our client is looking for an
experienced Aftersales
Manager with a strong Service...
THE COMPANY: Leading
Network... experienced Unit
Manager/Parts Advisor with a
strong background within the
automotive parts industry to...
Surrey
General Sales
Manager / Branch
Manager
Manchester
Toautomotive
advertise your
vacancies
e-mail:
The only
publication
sent
to every
HIDDEN
DANGERS!
Part Worn Tyres
A recent TyreSafe investigation
into part worn tyres found:
• 98% were illegal for sale
• 16% contained dangerous
or unsafe repairs
• 18% contained other
potentially lethal forms of
damage or non-compliance
If they were called
‘part-safe’,
would you
still buy them?
SAFE TYRES SAVE LIVES tyresafe.org

Publication - Motor Trade News

Transcription

Similar documents

Window Sticker

the road ahead - Geffen Mesher

HELP THEM HELP YOU! - American International Automobile

GNYADA Sales Academy - Greater New York Automobile Dealers

RHS AND CRYROP - Redlands High School

DataCar_CRM_QG LEAD MANAGEMENT_EN

ourisman volkswagen dealership

to view additional information on Horseman`s Edge® and this

DEALER MARKETING SOLUTIONS

www.bardenhomes.com