Page 31 - GIADA May-June 2020

4 Ways to Operate Strategically

By Ash Bauer, Executive Vice President, Assurant Resource Automotive

Short term, social distancing measures tap as F&I remains a significant part and can even speed up the final steps of
could lead to an 80-90% drop in sales of dealer gross profits. We’ll likely see the transaction – a big win for customer
volumes in auto retail. Looking longer- consumers have an increased interest experience.
term, 2020 SAAR forecasts suggest new- in wallet protection, so educating and
vehicle sales could fall 15-35% year-over- demonstrating the value of F&I products 4) INVEST IN YOUR PEOPLE. Dealership
year. While there’s an anticipated recovery to customers early in the online sales margins were already tight before
period for our industry approaching, as process can help build trust and lead to the spread of COVID-19. In this new
automobiles continue to serve as a critical greater sales. environment, margins could become
driver of business and everyday lives, razor-thin for most, if not all. However,
there’s also an opportunity to seize the 3) LEVERAGE READILY AVAILABLE TECHNOL- your people will remain the lifeblood of
moment when it comes to sales and your OGY. Sure, digitizing your retail process your dealership and a catalyst for driving
storefront, seen in four major strategies: takes time and strategic planning and sales in the short-and long-term. Putting
won’t happen overnight. So, while various financial capital behind human capital will
1) SCALE YOUR SERVICE. Parts and service are members of your team are knee-deep in be the ultimate differentiator for you and
a significant driver of profitability (almost development and integration, your sales your business.
50%, according to Cox Automotive), and staff can keep business flowing by taking
no matter the headwind, vehicles will advantage of the readily available technol- The x-factor to that approach in the
continue to need scheduled maintenance ogy that’s already out there. absence of physically convening is through
and service. remote training. Remote training can help
Since showroom visits are limited, set your team up for the best chance to
For your storefront, review local and state you can offer consumers the option of meet and exceed consumer expectations,
guidelines to see if you can extend your communicating with your sales team no matter the environment.
shop’s hours to offer greater flexibility through video chat. The ability to see
for customers. Let customers know someone face to face, securely and safely, An unprecedented time, calls for
your operating hours and if there are may just be the comfort a customer needs unprecedented thinking. We must think
opportunities to complete paperwork to sign on the dotted line. Zoom has strategically to navigate the curve thrown
online. been the defacto platform of choice for at us. n
both businesses and consumers during
2) DIGITIZE YOUR SHOWROOM. Speaking of the crisis, with over 200 million users. Ash Bauer is Executive Vice President of
online, with physical showrooms closed/ And with the ability to share screens Assurant Resource Automotive. With three
operating sparsely, some dealers are hyper- and minimal to no startup costs, Zoom decades of industry experience, he leads the
focused on developing or advancing their is a quick and easy way to get your team day-to-day operations of Assurant Resource
omnichannel and digital retailing efforts. humming again. Automotive and is responsible for driving the
growth and expansion of the division.
Furthermore, doubling-down resources Platforms like DocuSign can help with
toward online F&I is another source to the litany of pages that need signing

GIADA Independent Auto Dealer MAY/JUN 2020 | 29