Blog

Increasing Automotive Back-end ROI with Digital Retailing

Posted by Insignia Group on Apr 19, 2023 2:51:28 PM

We see you fixed operations manager. Over the past few years, you overcame continual obstacles. Nobody sent you a fruit basket or offered you a break. 

No, it was just phone call after phone call from disgruntled consumers and distributors, followed by management meetings asking you to squeeze out more profit, more ROI, and better CSI.

Then, an even more pressing need to increase revenue was looming amid inventory shortages and plenty of backorders. 

Parts and service managers face the biggest challenges of growing service profit, all while monitoring third-party resources' ROI. And. It’s. Stressful.

Today, the question is, can a dealership create a successful parts department and a thriving service lane—in a post-pandemic world—without working their managers into the ground? The answer is a resounding yes, and it’s found in digital retailing.

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Topics: Dealership, tips, accessory sales, OEM

5 Ways to Be a Better Automotive Internet Sales Manager

Posted by Insignia Group on Apr 12, 2023 9:58:15 AM

The internet sales department was thrust into the spotlight in 2020, becoming center stage overnight. 

The automotive industry is changed forever, and so has the role of the Internet sales manager. That fifteen minutes of fame as the coolest cat in the dealership morphed into a ton of pressure to keep up with demand. Once the sunglasses were a status symbol, now they're covering dark circles from losing sleep over digital retailing.

As car sales continually evolve, internet sales managers can focus on the basics to remain competitive: getting more leads and an excellent staff to pursue them. 

Here are five tips for running a successful internet sales department in 2023.

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Topics: Dealership, tips, accessory sales, OEM

How to Make More Money With Insignia Group and Your Digital Retailer

Posted by Insignia Group on Mar 27, 2023 12:44:49 PM

The future of automotive is only a click away. 

Automotive News reports many big-name dealer groups fully adopted digital retailing last year, selling over 5,000 cars online in Q1 alone. 

As more dealerships work with online customers, kinks in the process start to emerge. 

It’s common knowledge that Vehicle Personalization is a big business and an integral part of car buying. Dealerships can’t afford to leave accessory profit potential on the table just because the customer is shopping online. The problem is that digital retailers don’t allow dealers to set their own pricing and labor for accessories, and stores end up eating labor costs. 

It’s a huge frustration, and some GMs throw the baby out with the bathwater, abandoning accessories altogether. 

Only that won’t work, either. It’s not sustainable long term. Ninety percent of customers will personalize their vehicles—if your store doesn’t offer it, they’ll buy it from the aftermarket retailer down the street. 

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Topics: Dealership, tips, accessory sales, OEM

Why Digital Retailing Creates Better Salespeople [With Longevity]

Posted by Insignia Group on Mar 22, 2023 11:35:44 AM

Digital retailing isn’t going to replace you as a car salesperson. 

Digital retailing is the best tool you’ve had lately—it can make you more efficient, add more money to your pocket, and create a better work-life balance. 

Remember how you felt a few years ago when you realized you would have to sell cars online? There may be some unpleasant feelings of resistance there. 

Hey, that’s a normal reaction when people are forced into something. Today you can breathe easy because you’re in the driver’s seat again. Customers are walking in your dealership's doors as inventory fills the lot up again, and you have the internet at your fingertips. 

It’s the best of both worlds; what a great time to be a car salesperson. Here are four reasons why digital retailing makes you better at your job. 

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Topics: Dealership, tips, accessory sales, OEM

3 Digital Retailing Benefits for the Parts Department

Posted by Whitney Williams on Mar 20, 2023 2:01:10 PM

If we asked your parts counter employees about you, what would they say?

Maybe “Oh, the parts manager? In need of a ten-day yoga retreat, preferably starting yesterday.”

Or would it be more like, “Stop being so darn happy all the time, Bruce!”

We get it. Working in the parts department was never a walk in the park, and the last several years upped the ante.

The industry is continually reinventing itself, and it can be a struggle to change the way things have always been. 

When Carvana came out in 2012, people scoffed at the idea of a vending machine approach to car buying. 

Today, buying anything online (sight unseen) is a viable and widely accepted option. 

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Topics: Dealership, tips, accessory sales, OEM

The Psychology Behind Vehicle Personalization

Posted by Insignia Group on Feb 15, 2023 1:21:12 PM

Consumers don’t just want personalization, they demand it.” -McKinsey & Company

Vehicle Personalization isn’t a difficult concept that will lay waste to the car sale. 

It’s statistics. The consumer’s need to personalize has been analyzed in depth. When dealerships understand the driving force behind the custom car accessories market, selling accessories will finally feel like the light work that it’s always been. 

A recent McKinsey report states that not only do consumers expect personalization, almost 80% get frustrated when they don’t get it

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Topics: Customer Retention, Customer Success, Dealership, Accessories sales, customer experience

5 Auto Accessories Your Dealership Should Be Selling

Posted by Insignia Group on Jan 18, 2023 10:32:08 AM

The world of auto accessories is as vast as the ocean. There are many ways to make a dollar using accessories, with both OE and aftermarket catalogs always growing, the possibilities are endless! 

Accessories are adaptable. They hold the power to push a hesitant customer to commit and put an extra incentive in a salesperson’s pocket. Auto accessories add profits in fixed ops, allow for better introductions to service, and transform dealerships into a one-stop shop for consumers. 

Dealers who sell accessories simply make more money. With the right strategy and sales process, your dealership sales are guaranteed to increase. 

An accessory catalog can change seasonally and by location. Still, some auto accessories have proven themselves as tried and true sellers regardless of the time or place. 

When you set out to become a Vehicle Personalization powerhouse, ensure you’re offering these five accessories at every opportunity.

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Topics: Dealership, sales, Accessories sales

3 Factors of Dealership Turnover

Posted by Insignia Group on Dec 6, 2022 10:36:28 AM

Employee turnover has been cited as the #1 challenge for dealerships.

Recruiting, hiring, and retaining top talent has a price tag, and the revolving door of employee turnoverimpacts profitability. According to the 2022 NADA Dealership Workforce Study, "...employee turnover rate within the industry is currently at an average of 67 percent."

That’s a staggering number, considering that just one year before, Auto News reported turnover was the lowest it had been in a decade at only 34%. 

Dealers put money into hiring a new employee, only to lose them before their 90-day assessment. 

Employees that stick around longer end up irritated by the structured payment plans. And let’s face it, we’ve all experienced the pain of reduced margins which impact how sales consultants are compensated. 

So, what can dealers do about this age-old problem?

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Topics: Sales Best Practices, Reducing Turnover, Dealership, sales team

Dealerships Can Take the Sting Out of Oncoming Recession

Posted by Insignia Group on Dec 1, 2022 10:03:38 AM

Economists differ on what’s coming next. One will argue that consumer spending is still strong, employment is still in an upward churn, and we’re just thawing out from the global freeze caused by the pandemic. Another will say an early 2023 recession is inevitable. 

Dealerships have to deal with future forecasts while simultaneously managing current challenges. Will high vehicle prices and low inventory give way to slowed demand?

Regardless of what awaits the automotive world in 2023, cars are an essential business and dealerships are notoriously resilient. 

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Topics: Increase Profits, Dealership, Accessories sales, Gross profit

Break Up With Paper We-Owes

Posted by Insignia Group on Nov 22, 2022 11:10:08 AM

The “due bill,” or We-Owe, originated from a need to protect both dealerships and customers from making false claims on a car sale.

Years ago the industry had a less-than-savory reputation for swindling people out of their hard-earned money. Sometimes, dealers would sell less than road-worthy cars for a premium price, only for the vehicle to break down on the new owner. 

A “he said/she said” scenario was born, with dealerships making promises and later backing out of them. With no proof of prior conversations, the customer found themselves with a lemon and no money.

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Topics: Process Training, Dealership, Best Practice, Lead in