Use Tablets to Gain and Retain Without Pain - Mike Porro VP/GM

Use Tablets to Gain
and Retain Without
       Pain

Jim Hughes                 Mike Porro
Co-Founder                 VP/GM
IntellaCar LLC             Sam Swope Honda World

Thousand Oaks, CA          Louisville, KY

jimhughes@intellacar.com   mporro@samswope.com

805-241-5000               502-499-5041

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The views and opinions presented in this educational program and any accompanying
handout material are those of the speakers, and do not necessarily represent the views
or opinions of NADA. The speakers are not NADA representatives, and their presence
on the program is not a NADA endorsement or sponsorship of the speaker or the
speaker’s company, product, or services.
Nothing that is presented during this educational program is intended as legal advice,
and this program may not address all federal, state, or local regulatory or other legal
issues raised by the subject matter it addresses. The purpose of the program is to help
dealers improve the effectiveness of their business practices. The information
presented is also not intended to urge or suggest that dealers adopt any specific
practices or policies for their dealerships, nor is it intended to encourage concerted
action among competitors or any other action on the part of dealers that would in any
manner fix or stabilize the price or any element of the price of any good or service.

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Mobile Trends
      Mobile devices now outnumber the entire population on Earth
      More than two billion mobile devices will be shipped globally this year
      50% of the average global mobile web users now use mobile as either their
       primary or exclusive means of going online
      Like it or not, consumers now do everything on their mobile devices
      In 2015, 22% of buyers will be Gen Y, the largest base of potential buyers since
       boomers
           o Other than when Gen Y’s are asleep—there seems to be little or no time
               when they're not connecting to their mobile devices

          Source: supermonitoring.com/blog/state-of-mobile-2013-infographic/

Industry Tends
Challenges associated with selling today’s mobile minded consumers

      Knowledge Gap
         1. Consumers now know more than our sales people
                 11 Hours of Research
                 20+ Different Sources
                 Research 5 to 6 Dealerships
         2. In this fast-paced world, the ability to memorize and retain product details
            has been significantly reduced
         3. Problem: Sales people are now forced to give unprepared answers to
            well educated consumers

              Source: Google Auto Shopper

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Challenges associated with selling today’s mobile minded consumers

      Showrooming
         1. Definition: Customers using their mobile device to shop elsewhere while at
            a dealership
         2. It’s the new reality of car sales
         3. 63% of customers use their Smartphone’s while at an auto lot
         4. Problem: Current processes require sales people to leave the customer
            unattended

          5. How Showrooming can increase the chances a customer will visit a 2nd
             dealer

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Challenges associated with selling today’s mobile minded consumers

      Lack of Trust
          1. Problem: Customers often do not trust what our sales people tell them

             Source: Gallup, 2013

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Challenges associated with selling today’s mobile minded consumers

      Low Utilization
         1. Problem: Dealerships are paying for CRMs and other tools that do not get
            used
                  11% of phone leads get entered into CRM
                  40% of showroom leads get entered into CRM

Challenges associated with selling today’s mobile minded consumers

      Turnover
          1. Problem: Constant new hires makes creating a consistent positive
             customer experience difficult
                 On average, 62% of sales people quit or get fired annually

             Source: NADA

Solutions
      You can make an excuse or you can make a change. Only one of these will
       make a difference.

      More and more OEM’s and Top Retailers are using tablets to engage customers
       including:

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Case Study | Sam Swope Honda World
  •   # 1 Honda Store in Kentucky | Sales

  •   Sells 65% of New Cars in their Market Place

  •   Regularly Outsells Toyota and Ford

  •   $6 Million Net Profit

  •   Heavy Tablet Users Increased their Sales 64% in 4 months

  •   Used Car Impact using Tablets in the last year

         •   Used sales increased 8%

         •   Used gross profit increased 40%

         •   Used car sales boosted back end profits an additional $129,000

  •   Close Rate Increase 22%

  •   Transaction time Reduction 25%

  •   Facebook Fans increase 900%

     Key to Success
        1. Every step of the process is preparing the customer for what will happen
            next
                Customer is never left alone
                All handoffs are smooth
                Customer is never forced into making an unexpected decision

     Steps to the Sale using Tablets
         1. Greet Customer
                 Capture customer info into CRM
                 Qualify/Preference interview
                 Offer to buy trade
                 Introduce to manager

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2. Select Vehicle
       Inventory Search
       Side-by-side comparison
       Features/specs
       E-brochures
       Vehicle-specific video content

3. Appraise Trade
      Customer and manager appraise vehicle together
      Review with customer on tablet the used vehicle research source
         they used

4. Work the Deal
      Enter buyer’s notes and actual selection in CRM
      Sales associate calls manager
      Manager brings first pencil
      Negotiation/Close/TO
      Introduce customer to business manager at sales associates desk

5. Pre-Delivery
       Business manager interviews customer
       Review of important information
       Hand off to delivery specialist
       Video explanation of features
       Accessories presentation
       Show F&I introduction video

6. F&I
         Use custom menu to present products
         Complete paperwork
         Facilitate hand-off back to delivery specialist

7. Delivery
       Take photo and testimonial video
       Help customer post to social media sites
       Do final survey
       Deliver car
       Send thank you video

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8. Monitor & Improve
      Measure iPad activity against results in CRM
      Best practices at all weekly sales meetings
      Ongoing training

   Results Using Tablets in the Sales Process
       65% Market Share
       Units per Salesperson of Heavy Tablet Users | up 64%
       Close Rates | up 22%
       Used Car Profits | up 40%
       Social Media Friends / Followers | up 900%

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