Paul’s entrance into the automotive industry was the result of his passion for cars, thus landing him his first job as a tour guide in an automotive plant during high school. Since then, Paul’s career has remained entirely in the industry, most recently serving as Vice President, Marketing for Jaguar Cars before joining NCM in 2009. Prior to this, Paul worked within the Sales, Marketing and Product Strategy divisions of both the BMW Group and Maserati.
Paul’s experience in strategic automotive planning has taken him to numerous countries, having lived and worked in Germany, the United Kingdom, United States, Canada and Mexico. Paul’s thorough understanding of the global automotive industry and its variety of unique manufacturing, marketing and retail structures, serves as strong background for NCM’s breadth of educational, consultancy and benchmarking services as demanded by their industry-leading clients.
Paul earned his Bachelor’s of Business Administration degree from the University of Georgia and Masters of Business Administration degree from Emory University. He is also a graduate of the Harvard Business School Key Executive Program. Paul is a recipient of the University of Georgia’s 40 under 40 award, sits on the Board of ReverseRisk, LLC, and serves as the President of the Heart of America ESOP Association.
As NCM brings 2016 to a close, I’m excited to share with you some results from a recent research project by TrueCar. I know that you are hungry for data—and we at NCM strive to give you the best franchise and operational data and benchmarks in the business. TrueCar, on the other hand, has substantial insights into the consumer end of things. Realizing the importance of these customer insights, I asked them to research what consumer-focused behaviors helped some dealers outperform their competition.
To answer the question, data analysts at TrueCar examined the aggregated information they’ve collected on automotive dealerships, distilling it into their new report “10 Habits of Highly Successful Dealers.”* The research identified 75 top-performing dealers and set out to understand the key differentiators, sales tactics, and strategies these businesses used to outperform the competition.
In a nutshell, these dealers more directly addressed the pain points of the consumer, in part through their upfront pricing (e.g., transparency), yet still enjoyed close rates that were 2x better than their local competition. Here are some key areas that TrueCar believes set these top dealers apart.
Top dealers aren’t successful because they give cars away. In fact, top dealers sell at 93.6% of MSRP—nearly the same rate as the average dealer on TrueCar (93.7%). They achieve this by investing more time in analyzing and adjusting their vehicle pricing to ensure they remain competitive in their markets. TrueCar found that the high-performing dealers are 1.5x more likely to evaluate their pricing each month, avoiding the trap of “set it and forget it” pricing.
To get more details on what differentiates top performing dealers, download the “10 Habits of Highly Successful Dealers” at www.truecar.com/topdealers.
Better understanding of clients
Top dealers have a solid understanding of car buyers and their buying habits. For instance, consumers often change their minds on which vehicles they want, slowing down the car buying process: 67% of TrueCar new vehicle buyers purchase a different vehicle (make/model/trim) than they originally configured. These dealers stay ahead of consumers by proactively sending them vehicle alternatives (with pricing), which makes it easier for the customer to land on the right vehicle and increases the dealer’s likelihood of closing the sale. It’s a smart tactic.
Value beyond pricing
A critical component to top dealers’ success is the understanding that in the absence of value, it is only about price. The websites of top performing dealers put great emphasis on “why buy here” messaging and their unique value proposition, whether it’s their superior people or process, community involvement, or ownership benefits. Additionally, TrueCar found that vehicle deals that included their consumer ownership benefit called “Buyer’s Bonus,” which includes up to $2,000 in Auto Deductible and Repair reimbursements, closed 35% faster than deals without this benefit.
What this all goes to show is that top performing dealers don’t win on price alone. They streamline the online and offline process and remove disconnects that erode credibility. They deliver a superior in-store experience, build trust by offering the consumer validation, and lead with their unique value proposition.
I hope that you’ve enjoyed these new insights from our content partner TrueCar. Look for more data research soon. In the meantime, learn how NCM Associates can assist your dealership implementing changes that drive performance with our 20 Groups, consulting, software and training options.
*Top Dealers were studied using various methods including online mystery shops, dealer website reviews, management interviews, in-store observations, customer ratings/reviews, and their strategy/tool usage on the TrueCar program.
Our offices are abuzz with excitement about the upcoming convention this April. We’re finalizing travel plans. (If you still need help, just contact our Travel Solutionsoffice and they’ll take care of you. Tell them that Paul sent you.) Our experts are putting the last touches on their product demos and workshops. And the Marketing team is rounding the corner to the finish line.
In other words, things are busy.
Even with the rush to get everything done, preparing for the event has given me a few precious moments to reflect about NCM Associates and how our tradition of innovation has created a dynamic, versatile company. It’s a model, I think, that any business can follow … and creativity can mean the difference between success and failure.
When you stop creating, you stop growing.
The digital era is defined by innovation. The internet offers us unusual opportunities to disrupt traditional business models and communicate directly to consumers. This is great for companies like Airbnb, but I think it’s more challenging for an established, mature industry like automotive to find its way—especially when so many of the new models are dedicated to dismantling the old ways.
Trust me, we get it. NCM Associates is nearly 70 years old, and our primary service, the automotive 20 Group, was invented shortly after World War II in 1947. That’s a very mature product. So, let me share the secret to our success.
Innovation isn’t a thing; it’s a culture.
You can’t just demand that people innovate. Instead, you have to build a business—and, yes, a dealership—culture that encourages people to do more than the everyday. You also have to show employees that new and unusual ideas aren’t just tolerated, but welcomed.
Here are three of the ways we make this culture happen.
1) Let’s do this: Get everyone invested. NCM Associates is a 100 percent employee-owned Employee Stock Ownership Plan (ESOP). Each and every individual in our company has a personal investment in our organization’s growth and performance. They feel the impact, every year, when our business is valuated. This approach means that we all work together to propel the company forward.
Now, not every company is an ESOP. (But I encourage you to learn more about them). However, I challenge you to think of ways you can encourage your employees to feel a strong and deep-rooted commitment to your business. Consider events that encourage camaraderie and collaboration. And, if all else fails, performance-based bonuses are a tried-and-true motivation method.
At NCM, we like to focus on teamwork as a motivator. Each of our associates has this little sign on their desks:
“Let’s do this” is important to me. I’d like to take credit for the statement, but I didn’t invent it. (Sadly, I also can’t recall where I first read about it, so if you know the source, please comment below!) Another writer, Matt Frye, has a great explanation of what it means.
To me, “Let’s do this” is a good reminder that successful businesses are the result of every person working together as a team to achieve a particular goal. The more creatively we can accomplish this, the better.
2) Share your knowledge. The cornerstone of NCM’s business is information and experience. We require that all our moderators, consultants and instructors come from a solid background with many years spent at the dealership. And we have the best minds aggregating member information to create the best benchmark data in the industry.
Even though we keep lots of things private, the true value in knowledge comes when you share it. Our experts travel throughout North America to present their knowledge at conferences and workshops, and many of them write thoughtful articles for this blog.
We’ve recently launched our NCM Fundamentals whitepaper series, which includes insights our clients have used to successfully address many problems commonly encountered in the dealership. More books are in production, because we believe it’s important to give everyone an opportunity to improve their business and create an accountability culture. If you’d like one, sign up for one of our product demos or mini-workshopswe’re hosting at the NADA Conference. Every attendee will receive a complimentary printed copy.
Now, few dealerships have the resources to write whitepapers. But there are lots of ways you can share information. Encourage team members to discuss new ideas during daily roundups. Support training for your employees, and offer a monthly book club that encourages them to better their personal and professional lives. (And, please, supply the books!) Consider writing an article for one of many industry publications and, if you have a team member you plan to groom for management, encourage them to write about and share their successes with others.
And, speaking of knowledge sharing, no community has done a better job of collaborating than 3D-printers. That’s why we’re so excited to announce that NCM has partnered with Ultimaker, a 3D printer developer and manufacturer, to offer a complimentary 3D-printed business card holder or moveable car for visitors!
Stop by booth #3013C to pick one out and see the 3D printers work. Here’s a sneak peek of what you’ll see:
3) Take risks. Have you heard about NCM axcessa®? I remember the day I signed the papers establishing a partnership between NCM and ReverseRisk, the developers.
There was no question that the product was remarkable, but I certainly didn’t know how the market would react to this innovation. While NCM axcessa offered an entirely new level of transparency and accountability for dealers, it would require a significant change in dealership culture to be the most effective. Would people be willing to do that?
A few years later, here we are! NCM axcessa has exceeded all our expectations, and we’re proud of giving our clients such a useful software solution for managing their operational and financial needs. In 2016, NCM will be launching the NCM LiveAudit® dealership payables monitoring platform that allows you to dive deep into your payables activities to watch for unexpected expenditures and fraud, as well as manage recurring contracts. You can test it out at our booth at NADA, too.
How can you take risks as a dealer? Remember my suggestion to encourage idea sharing during meetings. Invest in one of them. Try a new marketing strategy. Offer a new promotion. Whatever the idea, make a small investment in testing it and see what happens. The results may surprise you, and your willingness to try something new—even if it fails—may drive the next big thing in your business.
Ready to innovate? Come see our creativity at Booth #3013C this April in Las Vegas. We hope to see you there.