I recently read an interview in Automotive News with Cox Automotive COO Mark O’Neil. He discussed the baby steps Cox Automotive is taking to ease consumers into buying cars online. Of course, Cox Automotive owns companies that can provide pretty much every step in the process, from offering trade-in cash through Kelley Blue Book’s Instant Cash Offer to allowing dealers to make counter offers or adjust financing terms through online messaging site MakeMyDeal.
One element that Cox doesn’t have (yet, probably) is bricks and mortar – dealerships where the cars can be picked up. O’Neil made a case for the continued relevance of dealerships with an interesting analogy to Amazon’s recent purchase of Whole Foods, which we all know was more about the real estate than selling pricey healthy food.
The retailer (i.e. the dealership) still has the role of distribution and delivering “the retail experience,” he said. Customer experience is already a huge focus of a dealership’s operation, but it will need to adapt to a new kind of customer who expects a new kind of retail experience. Dealers should be thinking about that now so they don’t get left behind.
Part of a good retail experience is having employees who understand and are committed to a dealership’s mission of delivering that customer service, having an “ownership mentality.” This week, Kendall Rawls looks at how to get employee understanding of and buy-in to that mission. It starts at the top.
Also this week I profile Brad Deery, one of the prolific Deery family of dealer principals. This Deery was a nominee for Time Dealer of the Year in 2014, if that rings a bell. He just acquired a Ford franchise in Iowa. Though Deery told me he doesn’t have a growth plan per se, but he is always open to considering a good opportunity, I am skeptical. Deery has been involved in 13 buy sells, so I suspect he is more strategic about growth than he lets on.
We also have the ever-popular Transaction News.
Enjoy!
