Insights

It’s said that “age is just a number,” but numbers are what the car business is all about. Generations tend to differ in how they research and shop for a car, and what they expect from a dealership. Understanding them is key to reaching them when selling vehicles and products.

Of course, while their birthdates may categorize them, they’re individuals first and foremost. You will get older customers who do virtually everything online, and younger ones who want to be led through the process.

But generally, these insights and tips may better serve all your customers, no matter their age. Some may quibble over the exact dates, but these are generally how the groups are determined.

Baby Boomers: 1946-1964 (60 to 78 years old) 

Insights: Boomers remember when car shopping was visiting numerous dealerships, studying printed brochures, and – sometimes with good reason. They’ve been buying cars long enough to know things have changed, but they still appreciate a personal touch and guidance through the process.

They’re not crazy with their money, but tend to have more disposable income. Many buy what they want rather than the cheapest deal they can find, and your customer service is going to sell them on you. They grew up with fewer brands and some are loyal to what they’ve “always driven,” but many are willing to see what different nameplates have to offer. 

Tips: Don’t rush through the transaction. They’ve done this before, but they still want to know everything at each step. Don’t assume they need a specific type of vehicle; older drivers are in everything from minivans to sports cars. Determine if they’re familiar with high-tech items, rather than assume they aren’t – “Have you used a self-parking feature before?” They may be more open to extended warranties or protection features that can take the hassle out of future issues.

Make sure everyone, including the service department, knows how they want to be contacted. Many prefer phone calls or emails to text messages, and will be frustrated if that isn’t respected. Remember this: Younger buyers depend heavily on recommendations from trusted family members. Those are the people across your desk right now, and you want to make the best possible impression on them so they send those younger buyers to you. 

Generation X: 1965-1980 (44 to 59 years old)

Insights: Generation X, especially at the upper end of the scale, tends to be close to Boomers for the buying process. However, they may be helping their children or grandchildren with finances or living arrangements. As a result, even though they come into the showroom alone, they might be in the market for family vehicles.

They tend to do more online research than Boomers, and will dig deeper into it. Even so, they appreciate in-person attention throughout the process. They may not have as much disposable income as Boomers do, but they’re comfortable with credit as long as they’re getting value and reliability for what they’re financing. They can also be picky about how they’re contacted, so be sure to ask.

Tips: These customers already know about car choices and features. What might be uncertain is what fits them. They may be looking toward retirement, helping their families, wondering when to downsize, and more. Walk them through their requirements as well as their budgets.

While both Boomers and Gen Xers need to trust their dealers, Gen X tends to put it above brand loyalty. They want to move at their own place through the deal. If they don’t feel they’re considered an equal part of the equation, they’ll go elsewhere.  

Millennials: 1981-1996 (28 to 43 years old)

Insights: Millennials grew up as technology developed, and they are very active online.  They may not have the same level of financial freedom as their parents, but they’re comfortable with taking on debt. Many have young families and vehicle practicality is essential to them. Their lives are busy and even minor inconveniences are issues, so reliability is a key factor.

They’ve already researched everything about the vehicles in your store, and they’re not interested in hashing it all out again over a desk. They want to get right to the test-drive, and they want the paperwork to be fast and smooth too. If you meet their expectations, they’ll be loyal. They emphasize value, and are most likely to appreciate complimentary add-ons such winter tire storage.  

Tips: Millennials have no patience for pain points, and they’ll tell everyone online about any they experience. If something’s unavoidable, explain everything as it happens, rather than just type it silently into the screen. Let them know the issue might be with their credit rating or other factors, so they don’t think it’s something you’re doing poorly.

They’ve already been through every vehicle online and decided what they want, so give it to them. If you don’t have the exact new model, a similar used vehicle may be a better fit than another new one that’s “close enough.” Millennials have a lot of financial responsibilities and tend to hold onto their vehicles longer, so suggest protection products or scheduled maintenance plans to help retain the value.

Generation Z: 1996-2010 (Driving age to 28 years old)

Insights: Gen Z has never known a non-Internet world, and it’s the first group you’ll lose if your online appeal isn’t there. “Z” is the most likely to be influenced by online reviews and ratings. They’re not brand-loyal; their primary concern is how your dealership is perceived by others. Encourage all your satisfied customers to leave online reviews for others to see.

Many Gen Z are buying their very first vehicle. Features that appeal to older consumers, such as embedded navigation or satellite radio, are not in the picture; wireless connectivity, screen size, and tech functions are. But Gen Z may overestimate some technologies, such as thinking hands-free or highway-assist driving systems are actually autonomous systems. Make sure they understand exactly what they’re getting.

They are comfortable online and prefer doing as much of the buying process digitally as they can. They may even want a FaceTime call with a salesperson before they decide to come in.

Tips: Gen Z buyers live by online shopping, where everything is open 24/7. Your website should always offer communication, such as an AI assistant after hours, to engage them so you can follow up later. They may be into instant messaging, but they don’t want to be rushed through the process. It’s important for them to understand everything they’re being asked to sign, and they’ll leave if they don’t think everything is fair.

As we look back at the second quarter of 2024, a lot has been going on. The Bank of Canada reduced its rate to 4.75% from 5% in June, and with further cuts expected. That did get some customers to loosen their purse strings, but outside forces managed to put a bit of a damper on sales.

According to DesRosiers, the Canadian new-vehicle market had enjoyed 19 consecutive months of year-over-year increases coming into the end of the second quarter. Canadians bought 169,000 vehicles in May 2024, marking a 9,000-unit increase from May 2023.

But then June stayed virtually the same at 169,000, and while that’s upbeat considering we’re still overcoming the last of the pandemic issues, no one wants to see the market lose its momentum.

Much of that appears tied to one of the biggest stories in the industry: the cyberattacks on dealer software provider CDK Global, which crippled some 15,000 stores in Canada and the U.S.

Canadian Black Book reported a decline in wholesale vehicle prices in early June, with truck prices falling by 37% more than car segments. Demand for auction inventory increased both in Canada and the U.S., especially since many vehicles were selling through other channels before they reached the auction block. Even though used-vehicle prices are expected to fall a bit more throughout the rest of the year, they are still above pre-pandemic levels, and are expected to remain that way possibly into 2026.

Sales trends and prices

Depending on the source, forecasts for 2024 new-vehicle sales are between 1.77 and 1.9 million units. Sales were 1.7 million in 2023, the highest in four years although still 7% lower than the pre-pandemic average.

Among automakers reporting numbers, General Motors led by volume during the first six months of 2024, with almost 141,000 new vehicles sold. Volkswagen had the sharpest gain year-to-date, up 53.9% on sales of more than 40,000 units; while Subaru was next at 43.4% increase on sales of some 36,000 vehicles.

The average new vehicle price is around $66,400. That’s about a 7% increase from last year, and likely includes the fact that premium SUVs have become a hot category for shoppers and could reach their highest levels in years.

As mentioned, used-vehicle retail prices have softened, and in mid-June 2024 the average listing price was $33,900, according to Canadian Black Book. Full-size pickups and full-size SUV prices took a considerable hit during June, while subcompact crossovers/SUVs were among those retaining most of their value. Compact commercial van prices rose – vehicles like the Ford Transit Connect and Mercedes-Benz Metris – possibly because all have been discontinued and businesses may be “stocking up” on them.

What’s driving the Canadian market?

While the Bank of Canada rate cut wasn’t huge, it was enough to prompt buyers who were ready to strike as soon as the cost of lending went down. According to AutoTrader, lower interest rates and increased availability had many shoppers switching to buying new cars rather than used. An increasing number of trade-ins increased the supply of used vehicles and subsequently lowered their prices overall.

Who is buying, and what are they choosing?

New Canadians are a robust source of sales, and many dealers reach out proactively to them. An estimated 32% purchase a vehicle within the first month of their arrival.

Among age groups, slightly more than half of millennials (ages 25-34) are less likely to purchase a vehicle, due to a combination of borrowing costs plus their overall cost of living. When they do, then along with the younger Gen Z, vehicle technology and connectivity are important considerations, as is the way they purchase them. Virtually all age groups use online research to some degree, but younger shoppers are far more dependent on it and prefer to do as much as possible online, including their financing.

Ford’s F-150 remains the best-selling model in Canada, but some six out of every ten vehicles sold is an SUV, which is slightly higher than pickups. Quebec had the highest number of zero emission vehicle (ZEV) registrations in the first quarter of 2024, with a slight decline in battery electric vehicles (BEVs) but a rise in plug-in hybrids (PHEVs). As more automakers offer new vehicles with plugs, and with 80% of Canadians living in urban areas, ZEV registrations are still a small slice of the market but are expected to increase.

The Takeaway

• Lower interest rates, increased vehicle inventory, incentives, and some remaining pent-up demand are helping to move the Canadian vehicle market forward.
• Prices for new vehicles are generally higher than last year. Those for used vehicles have softened but are still above pre-pandemic levels and should stay there for at least one or two more years. As new-vehicle prices rise, the used market becomes more attractive to many buyers.
• The CDK cyberattack weakened sales at the end of the second quarter, but they should rebound in the third quarter.
• Dealers who prioritize online research and shopping, and who reach out proactively to new Canadians, should enjoy a higher level of success with both new and used vehicles.

It may have originally been just a fictional story line in the Terminator movies, but artificial intelligence (IA) is now a reality. And it’s no longer an “if” your dealership should adopt it, but “when.” The key is to know how to use it to your advantage; its limitations and how to work around them; and most importantly, when you shouldn’t be using it.

There are numerous software providers with a wide array of products, including chatbots, analytics, digital dashboards, inventory integration, mobile apps, and more, whether for a single store or across multiple dealerships. Look for one that will customize the package to your specific needs.

Chatbots can be a useful addition to your website. When a customer visits, the chatbot may be embedded in the body of the site, or appear as a pop-up, with an invitation to connect such as, “How can I help you today?”

There are different types of chatbots to consider if you plan to add one, or upgrade what you have:

Rule-based chatbots are programmed to look for and recognize keywords. When they do, they generate a response likely to be the most appropriate. For example, if a customer types in something like “What are your hours?” or “When do you open?” then the chatbot will pick up on the “hours” and “open” keywords, and respond with a predetermined response – in this case, when you’re open and closed. They tend to be the least expensive, but they’re limited to the words and responses they know. If your customers use the chatbot for complex questions, they may be frustrated by its inability to respond correctly.

AI-powered chatbots use natural language processing and machine learning. Rather than just pouncing on keywords, they determine what the person is asking, and then come up with the best response to match the question.

Generative AI chatbots, such as ChatGPT, in simplest terms, use their database to look for words and patterns to understand what’s being asked, and then formulate a reply. These doesn’t use predetermined responses and so are closest to how a real person would answer. The questions and responses further train the system for improvement.

Customers increasingly want to be able to shop or research 24/7, and a major benefit to chatbots is that they’ll provide some level of communication when your dealership is closed. You also don’t have to tie up an employee to monitor questions for live chats. The chatbots can’t do it all, though, and you still need to communicate directly with customers as necessary. Chatbots don’t have all the answers, and they don’t have the human touch that can be essential to a sale.

Telephone chatbots work similarly, asking questions and responding to the answers. These can also be useful, but tread carefully: You don’t often find people who say they love automated phone attendants, and being asked what you want rather than being told “Press 1 for this” doesn’t really make it better.

Help with writing. As much as people are now more dependent on quick texts, there’s still a need for longer written communication, whether it’s to answer emails, write performance reviews, and more. Programs such as ChatGPT can definitely help with this, as you enter the points you want the piece to cover and let AI write it up for you. It’s almost instantaneous, but never send it out without carefully proofreading everything. AI is sophisticated, but it’s not perfect; it’s not unusual to find factual errors, or sentences that go in another direction away from what you intended.

Advertising can use AI help, but only to a certain extent. You can use it to help write advertisements for vehicles or products, but never run a photo through AI to enhance it. Customers have to trust that what they see in your ad is what they’ll get at your store, and you’ll lose your credibility if customers detect that a vehicle’s picture has been “doctored.” You should even be cautious about digitally cleaning up backgrounds, since customers may wonder if that’s the only thing you’ve altered.

Number-crunching. AI has the potential to analyze data and give you an immediate answer on what’s happening, and across wide swaths of your business. Some of the possibilities include:

Inventory analysis. AI can show you such information as which vehicles sit longest on your lot; what configurations and trim levels are most in demand; and what vehicles and trims are being searched out by customers on your website.

Product sales analysis. In addition to determining which F&I products rack up the highest number of sales, AI can cross-reference them against other factors, such as which aftermarket items are most likely to be bundled into specific financing products, or which vehicles generate the highest warranty sales. Product sales can even be sliced as thin as the customers’ age, income, or trade-in, enabling you to better target your approach to them.

Overall, artificial intelligence can improve customer satisfaction, make tasks easier, and help run your dealership more efficiently. The key is to getting the best AI products for your needs, and then using them to their maximum potential.

Auto theft is a huge issue in Canada right now, and for dealerships as well as consumers. The “old days” of trusting everyone are over.

Vehicle theft is a big part of it, but you also have to protect yourself and your customers from identity theft, fake identification, and falsified records. Here are some suggestions on how to do that.

Protect yourself from vehicle theft
Auto theft is usually a crime of opportunity. Your goal is to make it as inconvenient as possible to make off with a vehicle.

• Sales and service key boxes shouldn’t be visible to the public, and should be checked daily to ensure all keys are there. Store second-set keys separately. Watch for “customers” who seem interested in where you keep your keys. At closing, lock the key box and the door to the room where it’s kept. A coding system is more secure than putting the vehicle information on the key tag.
• Consider an electronic key system. Depending on the system, these can register when a key went out and who has it; limit accessibility; and even track keys by GPS.
• Never leave a vehicle with the key in it, even if it’s in the service drive-through. When you bring a vehicle to the door for delivery or after a service visit, shut it off and hold the key. Thieves have been known to jump into a running vehicle in those few seconds between when you get out and the customer gets in.
• Ideally, the after-hours drop box should have a chute that sends keys inside the building. If that’s not possible, it should have a baffle so keys can’t be fished out of it.
• Put premium vehicles at the back of the lot with not-quite-as-enticing models parked in front. At night, block the gate with an inexpensive used car.
• On test-drives, ask for a second (or even third) piece of ID along with the driver’s licence, and photocopy the front and back of all. Watch for fakes, especially with out-of-province licences. Most provincial alcohol/gaming sites have information on how to spot a fake. Print out and distribute their guidelines to staff for quick access. When a customer returns from a test-drive, immediately use the key to ensure it wasn’t switched for another one.
• Thieves watch for routines, so switch up regularly. Don’t send someone to the bank at the same time each day; vary which doors you unlock or lock first.
• If you suspect someone and they leave, call any neighbouring dealers with a heads-up. You can create a “neighbourhood watch” where everyone works together.

Protect your dealership from fraud

• Be wary if someone frequently checks notes when filling out any forms. Most people have to double-check some items, of course, but watch for those who look like they’re working from a “cheat sheet.” Compare application forms for consistency in spelling and numbers.
• Look for information about new scams by using Google, the Competition Bureau of Canada, and your insurance or credit providers. Keep your staff up-to-date on scam detection.
• Authenticate all information given, including matching a trade-in’s ownership against the customer’s data before adding it to the deal.
• “Synthetic” identity fraud is where people create identities and credit scores using a combination of real and false information. Warning flags on a credit report can include numerous credit inquiries in a short period; credit history out of sync with the person’s age; or inconsistencies between the report and the information the person gives you. Work with your credit providers on best practices to avoid fraud.
• As much as you’d like to think otherwise, your employees could be part of the problem. It used to be just parts or supplies going home with them. Today, it can include stealing customer data; “straw purchases” when they manipulate information to get a loan on someone’s behalf; or stealing credit card numbers or chargebacks. Do a thorough background check when hiring, and immediately investigate any accounting discrepancies or irregularities.

Protect your customers from theft

• Consider offering aftermarket protection devices, either during purchase or at follow-up visits or the service counter. These can include tracking devices, Faraday key pouches, steering wheel or pedal locks, wheel chock locks, or battery disconnectors.
• Protect your customers’ personal information as closely as your own. Never leave files lying around; keep filing cabinets locked; and lock all offices at night. Equip all computers with privacy screens, and shut off the monitor if you have to leave your office. Use a paper shredder, or if you use a shredding company, ask for a locked bin for documents waiting to be shredded.
• Don’t talk to your customers on speakerphone. Keep their half of the conversation private, and make sure your voice isn’t carrying through the store for others to hear.
• Use proven data security measures on your computer systems, including on your credit/debit machines; set the computer system so everyone must frequently change their passwords; and avoid using emails for sensitive information, such as credit card numbers.

All of this is a lot of work and usually involves spending money, but these days, it isn’t “if” your dealership will be targeted but “when.” And overall, it’s easier to prevent crime than to deal with it after it happens.

Everybody gets angry on occasion – it’s just part of being human. For most people it’s relatively fleeting, but for some, long or frequent outbreaks are a fact of life. If it’s an issue for someone in your dealership, it can affect relationships with other employees and with customers. It can also be difficult to deal with it, and you may need to tread carefully to address the problem.

Look for warning signs. Some are obvious, such as screamers or people who throw things. Others are harder to identify. When anger bubbles up, it could manifest in passive-aggressive behaviour; sabotaging the work of others, or the dealership’s operations or reputation; gossiping or spreading rumours; excessive absenteeism or inattention; directly bullying others; or obsessive and dangerous behaviours such as road rage.

Pay attention when you know people have stressful conditions outside of work, too. Those going through situations such as divorces, or issues with their children or aging parents, may be more likely to fly off the handle when something goes wrong at work. Someone who’s putting in longer hours or desperately trying to close deals could have money issues, and that can also create a strain that worsens when anything minor goes wrong.

You have a responsibility to other employees. Any situation can have the potential to go sideways, but fortunately, very few workplace anger incidents turn bad enough to end up on the six o’clock news. Even so, no one should have to tolerate scenes or harassment in their workplace. You need to step in when there’s an outburst, even if it’s someone who rarely loses their cool. Try to get them away from everyone – “C’mon, let’s go get a coffee and talk about this.”

It’s very important to recognize that responsibility and to work towards a solution. If something does go wrong, or the situation is allowed to stay simmering, your dealership might be legally liable for knowingly permitting a toxic workplace environment to flourish.

Watch for patterns and office dynamics. Some get mad at things ¬– a glitchy phone, for example – while others get mad at people. There can be underlying anger issues in both cases, but if it’s people-on-people, look for outside factors. The problem might not be with the person who’s outwardly angry, but the one who’s constantly goading them into misbehaviour. Be on the lookout for bullying, power plays, and anything else with the potential to flare up.

Be cautious about how you handle the issue. If someone is truly disruptive, you may consider requiring them to take anger management courses; or if the situation is bad enough, terminating their employment. The problem for you is that they may be legally protected from this, including by regulations that cover hiring and firing practices; or that recognize medical or mental health conditions that can trigger this behaviour; or that determine the inability to control outbursts is a disability.

Discuss the issue with the HR department, if you have one; or reach out to governing bodies in your jurisdiction for labour relations, or health and safety. Be sure to document any outbursts, so you have a record of the person’s behaviour. The last thing you need, in addition to the anger issues, is a lawsuit for wrongful dismissal. There may even be the potential for repercussions if you label that person as disruptive or otherwise determine “what’s wrong with them,” either directly to the person or to other employees or customers. You have to be very careful in these situations.

Involve the entire dealership. While you might not be able to single out someone for anger management courses, you could consider bringing in a life coach or other professional to make presentations to everyone. It’s a commitment in time and expense, but it could ultimately be beneficial to everyone, especially if it touches on life skills beyond just anger management, such as relationships with customers and coworkers, or balancing work and home life. This can even ultimately improve people’s health, since intense anger issues may contribute to problems such as high blood pressure and heart attacks.

Are you watching for your own issues? Studies have shown that many people who have anger management issues don’t actually realize that they do. This can be especially true if that anger manifests itself in quieter ways, such as passive-aggressive behaviour or sabotage instead of more-visible reactions such as yelling or throwing things. Are issues quicker to upset you, are people getting on your nerves, do you find yourself overreacting to relatively minor problems? This is the time to sit down, take a deep breath, and consider your behaviour. Everyone gets angry, but if it’s happening too frequently, it’s time to take a closer look and work towards finding a solution.

It’s safe to say that few people like employee performance reviews. Managers seldom like writing them up, and they can be extremely stressful for employees. Some companies have eliminated them, but that’s not necessarily a great idea. They can be helpful for your employees, and just as importantly, they can be a two-way street with the potential to help you improve your business.

If you’re not already doing these reviews, you should consider it. Everyone knows you’re already looking at their sales numbers, and how they shape up as employees overall. A performance review is up front about all that, and gives them a chance to present their side of the story on any negative points, and provide input on anything the store could improve. What should you know to make the most out of performance reviews?

They shouldn’t be a substitute for regular communication. You should always have an eye on the dealership’s “thermometer,” seeing what’s running hot or cold. Periodic one-on-one meetings, even just to have a conversation, can alert you to issues before they escalate. Employees should know that they can talk to you any time they need, without having to wait for their official reviews. The frequency of your performance reviews can vary, but twice-yearly or quarterly may provide better results than an annual review.

Numbers aren’t always everything. Someone who closes a lot of deals needs to be recognized for it – and along with the pay cheque and any bonuses, a “thank you” or “great job” goes a surprisingly long way.

Everyone wants a dealership full of top-grossing performers, but always look at the big picture. You may have salespeople whose numbers aren’t quite at the top, but they score high in customer satisfaction – taking their time with customers, following up with them, helping with their vehicle’s service, and so on. If they’re bringing up your CSI and getting new customers into your store, they’re very valuable as well.

Frame criticism properly. No one likes to be told they’re doing something wrong, but doing it properly can lead to a positive outcome.

• Be specific with any complaints. Rather than, “Customers don’t like the way you talk to them,” cite examples, such as, “We noticed you were a little snarky over a customer’s trade-in.”
• Don’t present hearsay about them. No one should be told, “I’ve heard that some people don’t like the way you do this.” If you are hearing gossip about someone, talk to those employees directly to get the full story.
• Recognize where the problem initiated. Did you provide the right training from the start? Do all your employees know what’s expected of them? You may even have to go up the chain – are your managers properly trained in how to teach new employees the ropes?

Be prepared to accept criticism. A one-way review isn’t using the interview to its full potential. Don’t just analyze the employee’s performance; ask that person to analyze the dealership’s performance. You might not like what you hear, but it could be useful to improving the dealership. “I didn’t think that was an issue, but it sounds like it’s not the best way for us to do things. How do you think we can make it better?”

Is each employee in the right position? A dealership obviously doesn’t offer as much opportunity for advancement as a large corporation does, but use the review discussion to see how each person fits into the position they occupy. When you do, don’t automatically think “up.” Some people may be racking up sales and profit numbers, but it’s extremely stressful for them to do that. This might be someone who would like to step back a bit into a lower-key role, but doesn’t know how to ask for it.

Finish up with a forward plan. You know how your employee has performed in the past – that’s all in the review. Where are you both going from here? You should have already had a plan outline ready, but be flexible. Make changes as needed, depending on what the two of you have discussed during the review. That can include the part you need to play in that plan, such as providing additional training, or handling any issues with other people in the dealership.

Follow up again one-on-one within a month or so, to find out if that person thought of something later that should have been brought up, and if any issues that concerned either of you have been resolved. A performance review is more than just how someone has performed. If it’s done right, it’s a chance for both of you to learn, to grow, and ultimately, to improve the dealership’s performance to everyone’s benefit.

Along with achy knees and more candles on the cake, one way to tell you’re getting older is if you remember when vehicles came with all their services included. Turn on the radio and you heard music, hit the navigation button and you saw a map, and it was included in the price. But today, automakers are increasingly turning to paid subscriptions, and everyone in your dealership needs to be familiar with them. Even if you don’t directly make money on the subscription, it’s still an opportunity to improve customer satisfaction with your store.

There are varied customer reactions to subscription services, and you need to know how to generate interest in them, as well as clear up any misconceptions. For example, many people automatically default to the automaker that planned to charge extra for its seats to heat up, and so they want no part of anything with “subscription” in its name. That was a real thing, but it was promptly rescinded – and that’s the part many people don’t remember. It’s up to you and your salespeople to introduce them to what’s available and what it can do for them.

While most of these services benefit the customer, vehicle health and service reminders can work in your favour. These let customers know when maintenance is due or if something in the vehicle needs attention, and some can connect the owner directly to your dealership to make an appointment.

Ask about their other subscriptions. It may be the customer’s first experience with a car that offers paid subscriptions, and they’re not sure about this “new concept.” But it’s very likely they already have subscriptions on their devices for music, television shows or movies. Making the auto version as familiar to them as their other subscriptions is the first step towards acceptance.

Be prepared when demonstrating the features. Know exactly what each subscription-based feature can do. Some are capable of performing functions such as changing the cabin temperature by voice control, so be sure to show that. Just as importantly, know what the feature can’t do, so you’re not fumbling in front of your customers.

Some subscription companies offer online sales training on their products. If so, take advantage of it.

Walk the customer through the process when the vehicle is delivered, including activating the subscriptions so everything is working from that first drive off the lot. It’s important to consider that part of the delivery process for customer satisfaction, especially since it can be confusing to set up some of the programs if customers aren’t familiar with them.

Outline the benefits. Most vehicles today come with smartphone connectivity, such as Apple CarPlay or Android Auto, and customers may be content to use that. But that could chew into their data plan, depending on how they use it, while a subscription would use its own connection.

Paid subscriptions are continually updated, such as with new map information. This can be important for people who live in freshly-developed areas, where embedded navigation may not recognize brand-new subdivision streets. If the vehicle is equipped with a hands-free highway driving system, its subscription will also update as more roads are mapped with the information required for that operation.

Remote connection is also very popular with customers, providing the ability to operate some of the vehicle’s information from a phone, such as locking or unlocking it, finding it in a parking lot, setting limits for teen drivers, or checking the fuel level or an electric vehicle’s battery charge.

Keep any demonstrators up to date. If you offer overnight test-drives or loaners, make sure their subscriptions are activated, and demonstrate what they can do before the customer drives away. Many people don’t know they want subscription services until they’ve tried them.

Not all subscriptions are automatically included. Some vehicles, especially in lower trims, don’t have subscription trial periods but can be retrofitted with the service. If that’s the case, the after-sale follow-up should include a reminder that they can be added. Subscriptions may also be available to add to used vehicles, which can make them more enticing.

Know the sticking points. What makes people shy away from connectivity subscriptions? According to research, the reasons include the price; that the smartphone offers similar services; or that the service isn’t useful to that person. Another primary reason is that the customer didn’t know the services were available, and the salesperson didn’t offer them.

On the other hand, research also shows that once customers have used subscription services in their vehicles, a huge number of them – often close to 90 per cent – renew them once they expire. That’s a lot of people who are obviously happy with that aspect of their vehicle, and satisfied customers are what it’s all about.

Of course, you’re good at negotiation – after all, that’s pretty much the job description. But just as with any other skill, honing your negotiation technique is vital to staying in top shape.

That’s especially important because the business is changing so rapidly, and usually to the customer’s advantage. People are going online to find pricing and features long before they come into your store. Along with that, “no-haggle” all-in pricing is now part of the industry. If your store doesn’t feature it, some of your competitors do.

And in addition to accurate knowledge, your customers may also be finding information online that isn’t correct, but they’re trying to use it as part of the process. So how do you keep everyone sharp, and how do you train your new employees on how to negotiate the best possible deal? Here are some suggestions.

Treat your customer as your equal. Confidence is essential, but overconfidence can ultimately work against you. You are undoubtedly the better negotiator – this is what you do, after all – but others have to feel they’re being respected and their needs are considered. This can be especially important with salespeople who are new to the business, and who may go a bit overboard as they try to prove themselves when closing deals. The person on the other side of the desk is the customer, not the opponent.

Listen and get to know the customer. When others are talking, we often have a tendency to think about what we’re going to say next, rather than actually listening to everything that person is saying. You’re trying to find out what your customers need and want, what they can afford, what they can live without if it’s necessary to stay on budget, and their comfort level for risk, which can determine what plans, financing, and insurance coverage will work best for them. Your customers will feel more comfortable with you, and you’ll have a better idea of what to offer them and how to sell them on it.

Know when to be quiet. New salespeople are often afraid of “dead air.” They’ve made their presentation and then, when the customer says nothing, they continue to talk. Teach them to recognize that point where the customer is now mulling it over and needs that silence to concentrate on a decision.

Keep up-to-date on what people are reading online. The Internet is filled with sites that gain clicks by warning people how to “protect” themselves, and dealerships are a common target. They’ll tell people you will lie to them, bait-and-switch them, overextend them…the list goes on. If you suspect your customer believes it, bring it up first. “I’m going to show you a few items you might consider. I’m not trying to get you to overspend; this is about choosing what’s going to work best for you.”

Don’t throw out too much at your customer. When there are multiple options for products, the magic number is three. More than that, and people get overwhelmed; while only one or two can make customers feel hemmed in and unable to negotiate what they want. Even if none are exactly right, your customer will likely look at the one that’s closest – and from there, you can tweak it to everyone’s satisfaction. The important thing is that they have chosen one, and now the negotiations can move forward.

Look at the long game. Individual sales are important, but loyal customers are even more vital. They come back, and they send their friends and family. Don’t be so focused on maximizing a sale that you jeopardize your future ones.

Avoid questions that can be answered with “no.” Every question should move things forward, not provide an opportunity for the customer to bring it to a stop. Ask for input that leaves the negotiation decision to customers, who in turn will feel like they’ve also had an equal hand in the bargaining process and got what they wanted. “We need to substitute one of these two items to reach that price – are you going to switch this one or that?”

Practice makes perfect. Even experienced salespeople need to take an honest look at their skills and see where they can be tightened up. Some like to practice in front of a mirror to see how they look to customers. If you have new products to sell, run through scenarios, looking for the best way to present them. This is also a good way to train a new person, playing the part of the customer and hitting them with questions you know will be asked. It may even be beneficial to consider professional negotiation training, either one-or-one or group sessions. The time and money spent may be more than worth it in the long run.

It would be wonderful if every workplace ran smoothly all the time, but that isn’t reality. There will be conflicts between employees, and while minor disagreements are inevitable and usually easy to smooth over, longer-term grudges are disruptive, both for employees and for customers who can’t help but notice the chill in the air.

As management, your position shouldn’t be simply a referee who tells the combatants to go back to their respective corners. Even so, you have to be more than just the judge who listens to both sides of the story and makes a decision. Instead, you want to be a mediator, guiding the people involved to come to a truce. From there, you should be periodically looking at the overall “operating temperature” in your store, to help prevent more issues in future.

Be aware of what’s happening in your store. Very few conflicts explode full-blown from the start; most are issues that grow over time. Minor disagreements usually blow over, but follow up later to ensure everything is settled. You’ll want to be proactive if there’s noticeable tension between people, which seldom gets better without intervention.

Watch for inter-department issues. There was likely a fault line between sales and service on the day the very first dealership opened its doors. Salespeople might sense resentment when they bring a customer to the service desk, while service advisors might think they’re being bullied to put that person ahead of their own customers – and in some instances, either suspicion may be correct. Meet up with the service manager regularly to go over any problems either of you may be encountering. It might even be helpful to occasionally get everyone in both departments together for a discussion on the best way to look after all customers.

Look for warning signs. Bantering and occasional venting are normal behaviour. These occasional blow-ups have the potential to worsen, but don’t step in too quickly – you don’t want to look like the playground supervisor. Give people a chance to work out their grievances on their own, and if you are approached, suggest they try to figure it out themselves. Even so, watch the situation to make sure it doesn’t get out of hand. Intervene if you notice bullying or gossiping. Those can spread as others take sides, turning the entire department into a toxic environment.

Figure out a plan of action. When there are issues between two people, formulate a strategy before you step in, which can better help you maintain control of the situation. You know these people and can tailor your approach to them, but overall, experts suggest bringing the people involved together from the start. No matter how impartial you think you are (or try to be), people have an inherent tendency to form opinions based on the story they hear first.

We’re back to you being a mediator, not referee. You may have to step in occasionally to shut down interruptions when someone is presenting their side, but the goal of your plan is ultimately for the people involved to come to a solution under your supervision and guidance in the meeting.

Delegate responsibility if it’s the best plan of action. If the issue is with people who work under one of your managers, or if you have an HR manager, have that person speak with them. It’s possible you may ultimately have to step in, but it’s best to start within the department, rather than bypassing those managers and going directly to the “big boss.”

The business always comes first. This of course seems obvious, but personal feelings can sometimes get in the way, especially if one of the people involved is an employee you consider to be a friend. Don’t dismiss issues because you’re uncomfortable disciplining someone who’s become close to you. The initial problem will still be there, and now other employees may be hesitant to approach a boss who “takes sides.”

Always follow up. Once people have talked it out and come to an understanding, give it a couple of days and then do a quick check to be sure the issue actually is resolved and everything has moved forward from there.

Foster an “open-door” attitude with your employees. If you handle issues promptly and fairly, word will get out. Either individually or in a staff meeting, let all your employees know your policy: That not everyone gets along all of the time, and you realize this; that it’s best when people are open with each other and try to work it out on their own; and if that isn’t possible, that your door is always open for those who want to talk about what’s going on. Above all, the focus is on everyone working together, and when they do, the customer experience improves and so does everyone’s success in the business.