Tag: dealerships

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EFG Companies Featured

Northwood University and EFG Companies Join Forces to Shape Future Retail Automotive Leaders

northwood_university_logoNorthwood University and EFG Companies, the innovator behind the award-winning Hyundai Assurance program, announced today a national partnership to drive greater opportunity and development of tomorrow’s retail automotive leaders. 

Under this new agreement, EFG and Northwood University will pave the way for future generations to leverage the hard-fought learnings of today and evolve business practices to successfully navigate the changing dealership landscape of tomorrow.  These two award-winning organizations will host thought leadership forums, develop specialized continuing education programs, conduct joint industry research, and cross-publish content.  Northwood University has also granted EFG Companies a seat on its National Automotive Marketing Advisory Board to represent the Finance & Insurance sector of the automotive industry.

“During this time of increased compliance oversight and economic recovery, it is imperative that we provide the auto retail industry with individuals equipped with leadership capabilities, and who can analyze current market trends to evolve their business for future success,” said Keith Pretty, President and CEO of Northwood University. “Our partnership with EFG Companies adds to Northwood University’s ability to prepare our students for a career in this critical U.S. industry.”

This partnership will allow both organizations to leverage the experience and knowledge of Northwood University’s dealer alumni, and EFG’s national dealer network for the benefit of the university’s student base.  As the industry continues to rapidly evolve, this essential think tank will help drive innovation and cultivate adept leaders to challenge the retail auto industry to new levels of growth and profitability.

“Since 2008, the industry has gone through rapid, and, at times, painful change,” said John Pappanastos, President and CEO of EFG Companies. “The Great Recession forced dealers to significantly improve their operations, adopt new technologies and become much more analytical. There is no question that dealers today face an entirely different level of complexity than previous generations. Our partnership with Northwood will help our future industry leaders tackle growing issues like the evolving sales processes, the optimal management of digital assets, the increasing role of consumer protection products in the dealership profit model, and heightened regulation.”

Both the EFG leadership team and the Northwood University faculty will provide input and guidance to ensure that Northwood students experience the continued benefit of the most relevant and thought-provoking retail automotive curriculum available in the U.S.  In addition, EFG will provide internship and employment opportunities within its franchise dealer base as students seek to apply their classroom experience to the real world.

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Dealership Training Economy

Make More Money on Returning Lessees

Contributing Author: Stephen RoennauRe-stating the obvious

  • Consumers held on to their cars much longer than normal during the recession or simply did without.
  • Post-recession consumers slowly came back into the car market. However, they were much more wary. Leases and used cars did better on average than new-vehicle sales.
  • Now, those lease terms are coming to a close, and dealerships can expect an influx of returning lessees, whom they can turn into new-vehicle owners.

What this means for 2014

According to “Automotive News”, General Motors saw those lessees start returning in November and they have only continued to grow.

Returning lessees pose a huge opportunity for dealership profit in 2014. Why? Because you’ve already done the legwork.

You’ve already built an ongoing relationship, bringing these consumers back to the dealership on a regular basis. Lease customers are on the hook, now you just have to reel them in with superior service and products.

What do we mean by service?

First there’s the follow-up. Evaluate your contact strategy for this audience. When do you begin contacting them? What is the contact frequency? What are your messages for this audience?

Remember, you don’t want to spam them, but you do want to stay top-of-mind. This is most easily done with your content rather than frequency. For example, many people, especially first-time lease customers, do not fully understand the process for lease-end. Educating them on the available options and inventory can go a long way toward influencing their purchase decisions.

You can also use your email communication to invite the customer in for a free trade appraisal to see how well the vehicle is holding its value. Simply getting them back to the dealership dramatically increases the chance of retaining lease customers. Remember, the customer who leased three years ago may be able to take advantage of better options. Many captives have stronger lease offers. Residual values in general have increased and the market has stabilized. Also, some lease programs waive the acquisition fee or security deposit on a re-lease or have other incentives for loyal lease customers. All these things add up to a greater opportunity for you to retain that customer.

In addition, it’s important to evaluate their experience in the showroom. You already have a database filled with information about their needs.

  • You know the current make and model of their car.
  • You know how many miles they drive.
  • You know their service history.

With these data points in mind, you can do much more than show them the new version of their car. You can offer suggestions on other makes, products, or financing options that might fit their needs better. When they come in, how prepared is your sales staff to meet their needs and exceed their expectations?

What about those products?

As with every customer in your dealership, returning lessees want the most for their money. After all, that’s the whole reason they chose to lease in the first place. Now is the perfect time to re-evaluate your F&I products and your provider. So, talk to your service advisers. They can tell you how quickly claims are processed, whether your admin is professional and courteous, and how many claims are approved. Those F&I products not only reflect back on you. Outside of the upsell opportunity, they can also help or harm your service drive, depending on how much red tape your service advisors deal with on a daily basis.

EFG Companies knows the importance of customer service combined with superior products. Everything from training to product administration has a single goal in mind – to be your partner for go-to-market success. Our agile product innovation and customization is backed by unmatched partner engagement and industry leading claims administration.

Make EFG your key to driving business. Contact us today.

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Agency Services EFG Companies

3 Tips to Insulate Your Agency from Dealership Consolidation

Contributing Author: Paul RobersOver the past three years, market consolidation in the retail automotive space has been a trend that has continued to gain momentum.  For example, in 2011, Penske Automotive owned 166 franchises in the U.S. and today, that number has grown to 173. Large, privately-held dealership groups have rapidly acquired rooftops across the country throughout 2012 and 2013. As the economy continues to recover and people return to purchasing cars, it stands to reason that dealership consolidation will continue to escalate.

As a dealership agent, you are probably focused on what this means for you. You have probably felt the sting, or know someone who has, when one of your dealership clients gets bought out by one of the large dealership groups. Unless, that dealership group uses your services, you automatically lose that business.

It might be tempting to fall prey to the idea that there’s nothing you can do about this. You have no control over dealership consolidation. But, there is something you can do. In fact, there are three definitive actions that can make a difference.

Diversification

While it’s true you have no control over which dealerships groups like AutoNation, Penske or any of the other large dealership group take over. You do have control over your own business. So how do you insulate your business from consolidation? It’s simple. Always be diversifying.

When business is soaring, it’s easy to sit back and enjoy the fruits of your labor. However, it’s better to always assume this time will end all too quickly. Don’t get tied down with simply servicing your clients. Every client has a lifespan. While servicing your clients and maintaining relationships is important, it’s equally important to always work to expand your business.

Network

You’ve secured a client and established relationships with the top brass. However, while the dealer principal and GM are important, lower-level employees could provide inroads to future business. While servicing that client, you also need to fortify relationships with other sales managers, F&I directors, and general employees. You never know when lower level employees will become decision-makers and you want to have positive relationships built up by the time they reach the top. In addition, it’s important to maintain contacts when employees leave their current dealership for those same reasons.

Be a Problem Solver

You do this every day for your current clients. Why not do it for prospects? When researching prospective clients, do your due diligence in identifying areas where they can improve operations and incorporate them into your presentation. Mystery shop their store. Review their website. Submit an online inquiry and evaluate their follow-up practices. Look at their online reviews. Determine the strength of their social media presence. When you call them, use your research and ideas to have something interesting to say. The dealership personnel will be more intrigued to see what you have to offer and how you can make them more successful.

Dealership consolidation will only continue to grow. The best way to fortify your business is to focus on your expansion opportunities, as well. At EFG Companies, we have over 36 years of experience servicing agents and dealerships across the U.S.  With our industry insight and client engagement, our agent clients receive valuable tools, insights and strategies to face their unique challenges. Unleash your growth potential with EFG. Contact us today.