NADA 2017 (A Brit's View)

For the last few days, I've been at my equivalent of Disneyland ... the 2017 NADA Convention and Expo in New Orleans.  The Brits call it "nada" and the Americans "N.A.D.A",  but either way we know that for the automotive retail industry, it's - to quote Ron Burgundy - a big deal.  Over 23,000 visitors and 1.1m square feet of exhibition space.  This is the premier event for seeing the products and services that power American dealers.

I've attempted to use this blog as a scrapbook for my thoughts.  

1) Analytics and tracking

The principle theme that I spotted from a digital retailing perspective was analytics.  The number of Dealer Management Software (DMS) vendors exhibiting, and the language used in their marketing collateral, highlighted the value in using data to understand and improve your business.  There was some very interesting new companies who were providing better insight into online traffic, handling of leads and business performance.  The importance of internet traffic (the vast majority of consumers start their car search online) uncovers a number of data sources for audience profiling and tracking.  These tools which are quite common in other areas of digital marketing are flowing through into other areas such as call and email handling. 

I'm a big fan of data and can only encourage dealers to use this to understand their business to help make informed decisions.  However, I still also believe that an "art" remains in connecting with a consumer.  There is a danger in becoming robotic in process and data.  But combined with an underlying philosophy around customer service, they can provide real insight and opportunity to deliver significant improvements.  There was almost an embarrassment of such companies on show, to which I provide a warning that data and tracking is only of use if it is analysed and acted upon.  

2) Digital replacing physical exhibitors

I last attended NADA 3 years ago.  Comparing this visit to my last, I felt that there was fewer exhibitors of "physical" goods (showroom facilities, hydraulic ramps, mechanic equipment etc) at the expense of software, media and website companies.  Given my profession, that should be a good thing.  But the child in me felt a little sad to see fewer of the exhibitors of stuff that I never normally get to see, but is very cool.  I still managed to find myself falling into a trance watching an automatic car washing machine.  A feat of engineering excellence.  Here's some particular favourites:

Hydraulic lifts

(this pick up is big, no problem for this lift. Magic!)

Big Ass Fans

(Big Ass Fans is my favourite company name ever)

Planes

(yes, planes! I'm assuming they'll attach the wings later)

3) Manufacturer support

A key difference between NADA and smaller shows in the UK is the manufacturer support.  Ford, GM and Toyota had very large presences here as did some smaller retailers such as Suzuki and Mitsubishi (and some beautiful Shelby customisations).  The OEMs on show used this event to get their team together for seminars and account management meetings.  Their dealers were made to feel special and would have felt pride in representing their brands.  I hope that OEMs begin to support the British shows to help build an easy way for dealers to gain insight into latest trends and products.

Toyota

GM

Ford

(this is the pick-up I'm after - perhaps it might be overcompensation for my height!)

4) Cox Automotive

Cox Automotive (parent company of Motors.co.uk) made a real statement at NADA.  Its "village" (almost as large as the actual village I live in) consisted of enormous stands for group companies including: AutoTrader.com, Kelley Blue Book, Dealer.com (the Media division); VIN Solutions (CRM software); Xtime (after-sales software); vAuto (stock intelligence); Stockwave (intelligent stock provisioning); Manheim (including supporting inventory solutions businesses); and Dealer Track (DMS software).  I was proud to be representing Cox Automotive International working with colleagues from Australia, Germany and Canada on the variety of solutions we offer across the world and welcoming travelers.  

The investment in the stands shows the ambition of the group and a commitment to supporting dealers with a comprehensive product set.  The video below provides a quick tour of the "village".  I can't underestimate the professionalism of the production and how this was brought to life by 600 team members passionate for the products.

Cox Auto @Nada100 from Phill Jones on Vimeo.

5) USA! USA!

A final thought, the show epitomised the USA in many ways - it was big, loud, impressive and a bit confusing!  But one thing that stuck in my mind was positivity.  Dealers came into the exhibition open minded to learning about new providers.  It was common to see dealers signing up to new products in the exhibition hall.  Selling wasn't a dirty word, it was good.  If America is the home of capitalism, this show was its epicentre.  But people weren't signing to show off, they were signing up because they want to improve and were open to ideas and taking risks.  

It might be the local ale talking, but at a time when our thoughts of America are conflicted by scary messages in the news, I remained impressed by the ambition that fuels the American dream.

Now get me back to the UK before I start high fiving people... Hell yeah!

The Brand Or The Car?

When I was at school, there was rarely less chance of getting bullied than if your parents drove a Skoda.  Kids whose parents didn't even have a car took the piss, it was deemed worse than having a car.  Fast forward twenty years and Skoda regularly wins awards for its cars and has generated strong customer loyalty.  I know enough about them to know that they are genuinely good cars at great value.  But, push come to shove, I probably still wouldn't buy one for fear of being taunted by the playground.  Their brand perception has improved drastically to a point that I wouldn't have thought possible as a smarmy 10 year old.

Worse than not having a car?!
Source: Wikipedia

The long term value and association of a brand lingers.  It can be repaired, it can be altered, but our emotions towards a brand are personal and affected by our own interactions with the brand - it's not a quick fix.  This obviously creates a nightmare for marketeers who would love to deliver quick changes in a homogenous manner.

The brand relationship is particularly powerful with cars.  We have recently changed our family car, and it forced my wife and I to look outside our usual brands.  As a couple, we have a number of shared values, and a respect of German cars was one of them (albeit, not something we lingered on in early dates).  For reasons of budget and model range (we "needed" 7 seats and 4x4) we were taken away from our German bruders.  

(as an aside, research from Motors.co.uk shows that German brands have the biggest brand allegiance - 59% of BMW drivers intend to stick with a BMW next time)

Naturally, I used the Motors.co.uk Smart Search to help decide the best car for our criteria.  I'm afforded the responsibility of identifying the shortlist of cars for consideration.  This one took some convincing, because it you're not spending north of £40,000, a 4x4 purchase tends to be a utilitarian purchase.  The romance of the process was lost as we conceded the need for practicality over fun.

When it looked like a Volvo was the most likely outcome, I was satisfied, my wife was in shock.  "How can I be a Volvo driver!" she exclaimed.  I was perplexed.   She knew that the decision was a good one, based on a market leading car search tool(!), but her emotional reaction to the brand put her hackles up.  As far as Bianca was concerned, we might as well get two labradors, wear cardigans and become bores who discuss A roads and NCAP ratings.

I, on the other hand, was very comfortable with this.  Not only do I back myself when it comes to A roads and NCAP ratings, my parents had Volvos when I was younger and my perception of them was very different.  The first car I drove on passing my test was a Volvo 440, quickly moving onto 2 different S40s.  I didn't perceive them as boring.  I knew that such a view existed.  But I viewed them as almost luxury cars.  No other 17 year old was driving as nice a car as me.  I was a Volvo driver, and proud of it.  (If you didn't know me as a teenager, this paragraph will give you a very good impression of just how cool I was)

Hilarity from the Volvo Touing Car Team - I loved it!
Source: TouringCarTimes.com

Common sense, and a lack of other attractive options prevailed and we are now Volvo owners.  I'll probably wait a couple of years before joining the owners' club, but I do hope that I'll be able to transform Bianca's views on the brand.  For the millions spent on glamorous TV advertising, the real connection with the brand comes from personal experience.  This is an area that should never be underestimated by brands.  Your brand isn't your advert, it is your product and everything that surrounds it.

I'm pleased that we reached a rational outcome.  Though, I should probably admit that on paper arguably the best choice for us was a Land Rover ... but I refuse to become a Land Rover driver.

Perfectly rational.