Categories
Data Security

Safeguarding Your Data

The Federal Trade Commission (FTC) Safeguards Rule goes into effect June 9, 2023. Did that date sneak up on you? Will your dealership be compliant, or is your team still trying to figure out what IT upgrades are needed to secure private customer data? Let’s breakdown the Safeguards Rule, see how it impacts your dealership and outline steps to consider while working on this compliance initiative. If you’d like another source of information to share with your team, check out EFG’s latest F&I Talk Outside the Box podcast.

Originally enacted in 2003, the FTC amended the Safeguards rule in 2021, but extended the deadline for compliance to June 9th of this year, giving dealerships more time to incorporate the needed equipment and procedures. Specifically, the new requirements include:

  • Designate a qualified individual to oversee your information security program.
  • Develop a written risk assessment.
  • Limit and monitor who can access sensitive customer information.
  • Encrypt all sensitive information.
  • Implement ongoing security personnel training.
  • Develop an incident response plan.
  • Perform periodic assessments of service provider security practices.
  • Implement multi-factor authentication, or another method with equivalent protection, for any individual accessing customer information.

That’s a lot to absorb! Let’s focus on the key component of data security.

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Categories
Dealer Marketing Featured

Dialing Up Digital

When was the last time you really looked at your website? Have you ever visited your competitors’ websites? Pull up any website today, and you’ll probably see a little more than just an inventory listing and online brochure. Over the last few years, dealers have significantly improved their websites with the online shopper in mind, adding online credit applications, trade-in evaluation tools, payment calculators, and more. However, the proverbial phrase “build it and they will come” does not necessarily apply online. There’s quite a bit more that needs to go into your digital presence to turn website visitors into viable customers.

The Cox Automotive Car Buying Journey research revealed consumer satisfaction with the car buying process declined in 2022 for the second straight year. According to Isabelle Helms, vice president of Research and Market Intelligence at Cox Automotive, “while buying a vehicle is a complicated transaction, it does not have to be frustrating for the consumer. With the right digital tools and systems in place, car buying can be a highly satisfying activity, and as efficient and streamlined as consumers want it to be.”

“While buying a vehicle is a complicated transaction, it does not have to be frustrating for the consumer.”

Bingo! That’s the key. The right digital tools and systems can make the difference between a sale – or a frustrated customer who vows never to purchase a vehicle from your dealership. How do you know whether your dealership has the right digital content?

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Categories
Electric Vehicles Featured

Be An ‘Early Mover’ in EVs

According to a J.D. Power Customer Service Satisfaction survey released this month, customer service satisfaction among owners of BEVs is 42 points lower than for owners of internal combustion engine (ICE) vehicles. The two leading factors are recall rates for BEV parts and poor service advisor knowledge.

“As the electric vehicle segment grows, service is going to be a ‘make or break’ part of the ownership experience,” said Chris Sutton, Vice President of automotive retail at J.D. Power. “The industry has been hyper-focused on launches and now these customers are bringing their electric vehicles in for maintenance and repairs. As training programs for service advisors and technicians evolve, EV service quality and customer experience must address both the vehicle and the unique customer needs. The EV segment has the potential to spur massive convenience improvements in how customers service their vehicles—but we’re not seeing the benefits yet.”

While you can’t solve the recall issue, you can address the knowledge issue when it comes to EVs – not just in the service department but throughout your entire dealership. There is no doubt that EVs are coming. Savvy dealer owners who are ‘early movers’ and embrace these new vehicles will reap significant benefits. But there are some factors to consider when adding EVs to the lot.

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