Auto dealers are constantly looking for ways to get an edge in the digital age, yet many continue to follow the same sales and advertising practices that they’ve been using for decades. Let’s face it, consumers have access to much more information, and choices, than ever before. In the past the dealer controlled all of the information, but today it’s just the opposite. Any information you offer is now carefully scrutinized and validated by a vast amount of online data. As a result, the likelihood of old-school sales practices backfiring has increased substantially. In this dynamic session, I’ll be discussing ways to break down deep-rooted stereotypes and embrace the transparency that consumers have been begging for. A transparent business model can greatly enhance your sales, reputation, customer retention, and bottom line. You’ll find that customers will actually be willing to spend more when they feel they’re buying from a business they can trust.

1. USING TRANSPARENCY AS A COMPETITIVE ADVANTAGE
Winning Strategies for Today’s Consumer-Driven Economy
Presented by:
Jim Radogna

2. Are you transparent on the phone?

3. How do you handle internet leads?
In his article Does Not Being Transparent Make You Invisible to
Customers, Ron Henson from DrivingSales notes:
“The work I do with dealers affords me the opportunity to review
many Internet mystery shops of dealerships all over North
America. It blows me away how many times we ask for a price and
get an answer like:”
• We'll make you a great deal. When can you come in?
• We've never lost a deal over price. Come on down.
• What monthly payment were you hoping to get?
• Do you have a trade?”

4. Is your advertising transparent?

5. How about your negotiating process? Transparent?

6. F&I Processes?

7. Are you upfront about vehicle histories?

8. Is your pricing transparent?

9. Do you properly disclose all fees?

10. The Case AGAINST Transparency…

11.  We have to do whatever it takes to stay ahead of the
competition. Everybody else is hiding information.
 This way of doing business has been successful for
decades.
 The chances of getting into a legal bind are pretty
slim.
 If you give customers too much information they’ll
just use it to shop you.
 Customers have no loyalty.
 Why should we be at a disadvantage by following
regulations that our competitors ignore?

12. The Case FOR Transparency…

13. REASON #10 – Avoid Legal Problems
State & federal regulators frequently target “non-
transparent” dealer practices as unfair and deceptive:
Advertising Violations
• Bait & Switch (just get ‘em in)
• Failure to Sell at Advertised Price
• Internet Advertising (dot.com disclosures)
• Mailers
Unfair and Deceptive Acts and Practices (UDAP)
• Spot Delivery
• Payment Packing
• Vehicle History Disclosures (rental, demo, damaged)

15. • Getting “caught” is no longer a just a fine and slap on
the wrist. Regulators have begun using the media to
penalize those dealers caught in order to intimidate
others. Regulators want press, and the tougher the
press is on the offending dealers the better it is for the
regulators in charge.
• The severity of the offenses is often exaggerated.
• •The social media age brings more long-term
consequences and public humiliation than businesses
have ever seen before.
• Do you want your customers seeing Your dealership on
the 6 o’clock news?

16. REASON #9 – Increase Lead Conversion
The ultimate goal is still to “get ‘em in” and close the deal,
but for an increasing number of shoppers, transparency is
the only thing that will get them in. Not being upfront
about details used to have its benefits. Up until recently,
the salesperson could control the selling process because
he or she controlled the information. Today, it’s just the
opposite - consumers have all the information they need
at their fingertips. If you resist answering customer’s
questions, chances are you’ll never hear from them again.

17. REASON #8 – Increase Closing Ratios
Higher levels of satisfaction with the selling process
result in higher closing rates and higher sales.
A survey by Maritz Research of over 163,000 Americans found the following:
64.0% are completely satisfied when one person with pricing authority negotiates
the deal vs. 20.7% when two or more with no pricing authority are involved.

18. REASON #7 – Improve Your REAL Reputation
What Is Your Reputation Worth?
• A dealership’s reputation is difficult, if not impossible, to
maintain when staff members depend on “old school”
deceptive practices.
• Customers often make decisions during a vehicle sale
transaction that they come to regret after the “ether has worn
off”.
• You can be sure they’re telling somebody about the
transaction. Or perhaps they’re telling thousands of people
online?

19. REASON #6 – Increase Customer Satisfaction
Lack of transparency and old school tactics diminish
the customer experience. Nobody likes surprises.
Sure, you made the deal but are your customers
truly satisfied with your processes or do you just
wear them down?
Higher Customer Satisfaction = More
Repeat and Referral Business

20. REASON #5 – Increase Customer Loyalty
Customers only have loyalty if you earn it from them.
Transparent processes help build customer loyalty and retention.

21. REASON #4 - Your Customers Have Unprecedented
Access to Information in Real Time
A recent JD Power report highlights a
growing trend called 'Showrooming'
where prospects sitting in your
showroom are actually price competing
your deal with another dealership using
their mobile devices.

22. Consumers not only have more access to
information but also have access to more dealers.
In the past, consumers were limited to dealers in their local
area. The increase in the amount of information available to
consumers has brought consumers a quick and easy way to
analyze not only different prices via internet quotes but also
to identify who they want to do business with. Customers
simply have too many choices and will quickly discard
dealers they feel are hiding something. Hiding (or reducing)
the amount of information available to consumers will only
make them trust you less.

23. The days of internet-savvy customers being
in the minority are long gone.
The internet is probably never going to take over car
buying and it’s likely that dealerships will continue
to be the primary way that customers will purchase
vehicles. But remember this; while customers may
always choose to do business with dealerships, they
don’t have to choose to do business with your
dealership. Just because customers shop your
competitors with a perceived better deal, it doesn’t
mean they’ll buy there.

24. REASON #3 – Reduce Chargebacks
Once the ether wears off and the customer goes
home and reads the contract how much do you get
to keep?

25. REASON #2 – You’ll Stand Out From Your
Competition
What percentage of dealers are transparent today?
There’s an opportunity to not only be transparent, but to
trumpet the dealership's transparency. The "friendly,
courteous dealer" claim doesn’t resonate with very
many consumers anymore. However, using transparent
processes to clearly demonstrate the honesty of the store
can and does resonate.

26. Progressive Dealers Are Marketing Their Transparent
Processes and Customers Are Responding

27. REASON #1 – Transparency Is What Your
Customers Have Been Begging For, Why Not Treat
Them The Way They Want To Be Treated?
“The difficulty lies not so much in developing new
ideas as in escaping from old ones” - John
Maynard Keynes
TRANSPARENCY IS NOT A DIRTY
WORD BUT COMPLACENCY IS