NADA Recap: Top Strategies from NADA 20 Groups

Miss out on the chance to attend NADA this past year? No sweat. We've published a few recap blogs to discuss major points covered in New Orleans this year, and this blog covers one of the biggest ones!

Success in the automotive industry requires constant innovation and a willingness to adapt. NADA 20 Groups bring together like-minded dealers to share best practices, improve profitability, and stay ahead of the competition. Here are some of the best ideas from these peer-involvement groups that can transform your dealership operations.

What is a NADA 20 Group?

A NADA 20 Group is a collaborative peer group consisting of 20-24 dealers who meet multiple times a year to exchange insights and strategies. These groups are franchise-specific, similarly sized, and geographically separated to avoid direct competition. Their primary goal? Helping each other succeed through shared knowledge and financial benchmarking.

Why Join a 20 Group?

Dealers who join 20 Groups gain access to:

• Peer-to-peer reviews and feedback

• Financial performance comparisons

• Industry-leading best practices

• Strategies to enhance profitability

The collective experience of a 20 Group ensures that every member benefits from tested and proven dealership strategies.

Game-Changing Sales Strategies

Perfecting the Sales Process

1. Great Word Tracks for Better Engagement

   • Instead of generic greetings, use strategic questions to identify trade-in opportunities upfront.

   • Example: "Is this purchase replacing a current vehicle, or will it be an additional one?"

2. Sales Pocket Guide

   • Create a monthly folding guide for sales teams, updated with promotions, rebates, and key focus areas.

   • Ensures consistency in messaging across all customer interactions.

3. Customer Relationship Management (CRM) Optimization

   • Regularly review CRM usage and ensure lead follow-up frequency is maintained.

   • Train sales teams on phone, email, and text-based engagement to maximize conversions.

Boosting Sales Through Data & Automation

1. Data-Mining for Sales Opportunities

   • Identify service customers who might be ready to trade in their vehicle.

   • A dedicated team member can offer personalized trade-in suggestions before the customer enters the broader market.

2. QR Codes for Used Vehicles

   • Place QR codes on used vehicles for instant access to service history, inspection reports, and CARFAX data.

   • Enhances transparency and builds customer trust.

3. One-Hour Online Listings for Trade-Ins

   • Ensure trade-ins are washed, photographed, and listed online within an hour of arrival.

   • Use “Just Traded” or “Coming Soon” tags to generate early customer interest.

Maximizing Fixed Operations & Service Revenue

Retention & Upsell Strategies

1. Ping Pong Ball Incentives for Service Contracts

   • Use a fun and engaging way to incentivize service contract sales. 

   • When a service rep sells a set service contract, they get to pull a ping pong ball with an incentivized reward like a cash prize or free PTO day. Employees who sell contracts get to pull from a reward box containing cash prizes, boosting motivation

   • The dealership that implemented this saw its VSC penetration increase from 12% to 63%, meaning significantly more customers opted for service contracts.

   • Ensure you're able to balance the rewards based on the incentives sold. The rewards shouldn't cancel out the increased revenue from the RO.

1. Setting the Next Appointment at Checkout

   • Schedule future service appointments before customers leave.

   • Provide reminder texts and a direct service contact for added convenience.

2. Emergency Labor Rate Strategy

   • Offer a priority service option for customers needing urgent repairs at a premium labor rate.

   • Improves shop efficiency while increasing revenue.

Tech & Innovation in Fixed Ops

1. Guest Wi-Fi Marketing

   • Set the guest Wi-Fi password to something promotional (e.g., "weselltires").

   • Create a splash page highlighting current service specials, increasing alignment sales.

2. Building a Technician Career Path

   • Implement structured career progression plans, including apprentice programs with quarterly raises.

   • Invest in tool sets for new technicians as a recruiting incentive.

Employee Engagement & Dealership Culture

Motivating & Retaining Talent

1. Monthly Dealership Lunch & Awards

   • Recognize employee achievements, service anniversaries, and outstanding performance in a social setting.

2. Thank You Cards for Recruiting

   • Managers carry thank-you cards to hand out to exceptional customer service workers outside the dealership, opening the door for potential hires.

3. Annual Personal Benefits Report

   • Provide employees with a detailed breakdown of their total compensation, including benefits and bonuses, to reinforce job satisfaction.

Creative Training Techniques

1. Soccer Ball Objection Handling

   • Toss a soccer ball around during meetings, having each salesperson answer common objections written on the ball.

   • Keeps training interactive and fun.

2. Video Service Introductions

   • Send personalized service introduction videos to customers post-purchase.

   • Helps build trust and familiarity with the service team.

Takeaways for Success

The strategies from NADA 20 Groups provide a wealth of insights into dealership management, from sales and service optimization to employee engagement. By implementing these best practices, dealerships can drive efficiency, boost profitability, and create a thriving workplace culture.

Are you ready to take your dealership to the next level? Start implementing these strategies today!

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