Essential_Brand_Elements_Tutorial.pdf

Transcript

1. Essential Brand Elements - EBE EBE
2. The program has become essential to many dealers to help finance renovations and improve business techniques. In fact, many dealers accepted the funds and rolled them directly into operations, financing the dealer renovations privately. “Over the years it’s become an integral part of our business plans and forecasting,” said Sam Pilato, a partner at Dimmitt Chevrolet in Clearwater, Fla. “We’d have been sent scurrying had it gone away.” GMAuthority.com August 16, 2016 Essential Brand Elements - EBE
3. Essential Brand Elements (EBE) is the program that GM introduced in 2009 to assist dealers in: 1. Improving or building a new facility 2. Implementing or enhancing an employee training program 3. Implementing a digital sales strategy The original EBE program was scheduled to run from 2009 to 2016. The goal of the program was to assist GM dealerships in offering a more modern, consistent appearance among dealerships of each of GM’s four brands. Essential Brand Elements - EBE
4. Along with GM’s Standards For Excellence program, EBE stands as one of the two major financial programs that GM offers to GM dealerships. The original funding for EBE was estimated to be approximately $100,000 per year for a dealership selling a few hundred vehicles each year to over $2,000,000 a year for big stores. Essential Brand Elements - EBE
5. EBE was renewed in 2016 by GM and included new elements such as: 1. Dealerships having a Business Development Center 2. Digital Signage 3. Maintaining the look and feel of a first class dealership facility Essential Brand Elements - EBE
6. In 2018, GM Accessories has been included in the EBE program for the very first time. This is a significant change to the GM Accessories initiative for GM, GM dealerships and GM ADIs and their personnel. By adding GM Accessories to the EBE program, ADIs and TSMs can expect a renewed and heightened interest in GM accessories directly from their Dealers and/or their General Managers. Dealers expect to achieve their full EBE payouts and will be involved in all aspects of the program, including accessories. Essential Brand Elements - EBE
7. Within EBE, there are two sides of the program: 1. Conformance (see slide #19 for description) – Dealerships receive 80% of their EBE funds from Conformance 2. Performance – Made up of four buckets, each stressing a different aspect of dealership initiatives a. CSI b. Fix-the-Phones c. OnStar d. GM Accessories Essential Brand Elements - EBE
8. Of these four buckets and their corresponding 20% of EBE funds, GM Accessories is the largest one, accounting for 7.5% of a dealership’s EBE funds. By including GM Accessories in EBE, Dealer Principals of EBE enrolled dealerships* will now have a significant stake in GM Accessories. Most dealerships will expect to earn all of their EBE funds, including the 7.5% portion designated for GM Accessories. *Dealerships must enroll in the EBE program annually at a cost of $10,000 per dealership, regardless of size. Essential Brand Elements - EBE
9. HOW DOES A DEALERSHIP EARN THEIR EBE GM ACCESSORIES (GMA) FUNDS? There are three ways a dealership can earn the GMA EBE funds: 1. 7.5% for exceeding their quarterly objective*, OR 2. 7.5% for growing their YOY quarterly sales (Growth in Q1 - 15%, Q2 – 20%, Q3 – 25%, Q4 – 30%), OR 3. 5% for exceeding their quarterly objective** *Objective is based on 2017 Regional PNUR + 10% multiplied by dealer’s quarterly 3 year average RVDs **Option 3 above is for growth of 7% over 2017 Regional PNUR Essential Brand Elements - EBE
10. TSMs can assist dealers in achievement of their EBE GMA funds by: 1. Regularly communicating dealership’s achievement of monthly and quarterly objectives 2. Helping develop a seamless accessory selling process for new and used vehicle sales 3. Presenting alternative ways of selling accessories a. Pre-load b. Mannequin vehicles c. LPOs d. Parts and/or Service sales e. Internet sales f. Business Choice g. More… Essential Brand Elements - EBE
11. What other scenarios might I prepare for when I meet with dealers? Essential Brand Elements - EBE
12. Dealer says…I need to establish a selling process  Meet with the Dealer to obtain commitment to the program  Meet with department heads  Get an agreement of department managers to mark ups in each department  Obtain an agreement to offer a commission plan  Hold a sales meeting kicking off the initiative  During the first weeks of initiative, make it a priority to be there once a week
13. Dealer is interested in setting up Accessories selling process Dealer Visit Guide The Dealer Visit Guide is a helpful tool to make sure you have reviewed all areas with a dealer. Your ADI may add or subtract suggestions as they see fit.
14. Things to consider  Preparation is key  Ask the questions to help you understand the Dealer’s goals at a high level 1. Will you hold your people accountable? 2. How do you pay your sales people right now with GM Accessories? 3. What's your current process? a. LPOs, RPOs, wait for customer, actively sell, send everything down the road. 4. What's your current departmental mark ups?  Have dealership case studies ready  Have some data but do not be overwhelming  Because they called you…they want to develop a process  Have suggestions and recommendations ready
15. TSMs can assist dealers in achievement of their EBE GMA funds by: 1. Regularly communicating dealership’s achievement of monthly and quarterly objectives 2. Helping develop a seamless accessory selling process for new and used vehicle sales 3. Presenting alternative ways of selling accessories a. Pre-load b. Mannequin vehicles c. LPOs d. Parts and/or Service sales e. Internet sales f. Business Choice g. More… Essential Brand Elements - EBE
16. Dealer is considering LPOs…  What models and in what volume does the dealership sell?  What are the best selling LPOs for each model?  ADI Solutions LPO Report  ADI Solutions DealerDash Board month by month  LPO Labor Claims Section
17. Dealer wants to grow using Business Choice…  Begin the Business Choice discussion with…  How many light duty and heavy duty trucks does the dealership sell?  ADI Solutions Business Choice Report  Marketing Material from GM  Sales Meeting focusing on Business Choice  Follow up training with dealership sales people
18. EBE GUIDELINES Q1, 2018 Accy Objective • Based on 2017, Q1 – Q3 Actual (Regional) PNUR by Model + 10% and multiplied by Dealers quarterly 3-year average RVDs. For Q1, 2018 • Dealers will receive a Q1 Accessories Objective for January, February, and March. • In order to provide Dealers with a ramp up period, Dealers are only required to hit objectives for February & March. • If Dealers exceeds February & March objectives, Dealers will be paid for total Q1 period (Including January). Q2 – Q4, 2018 Accy Objective • Based on 2017 Q1 – Q4 Actual (Regional) PNUR by Model + 10% and multiplied by Dealers quarterly 3-year average RVDs. Dual Dealerships (ie: Chevrolet, Buick, GMC) • Dealers will receive Division objectives which add up to a total objective. • Duel Dealerships will be tracked to the total or “Roof Top” level objective.
19. GM Confidential – Do Not Distribute 2018 EBE Program Quarterly Bonus Opportunities BRAND STANDARDS QUARTERLY BONUS OPPORTUNITY 80% 80%  Facility Compliance*  Training Compliance  Courtesy Transportation Program Compliance  Digital Marketing Program Compliance  Customer Sales and Service Retention (CSSR) Compliance  In-Dealership Digital Network (IDDN) Compliance  Dealer Technology Savings Study  Certified Pre-Owned Compliance  My Rewards Loyalty Enrollment**  Drive Growth PERFORMANCE QUARTERLY BONUS OPPORTUNITY 20% 5% PAYOUT % PAYOUT % 5% 2.5% 7.5% ADDITIONAL QUARTERLY BONUS OPPORTUNITY PAYOUT % See Grid GM & GM Financial Purchase Bonus *Dealers that do not have a compliant facility but enroll in My Rewards Loyalty Program may earn at a reduced rate (30 points of available 80%) **Dealers that have a compliant facility but do not enroll in My Rewards Loyalty program may earn at a reduced rate (50 points of available 80%) Note: Dealers with a Non-GM dual are not eligible to earn ANY of the EBE Bonus Opportunities. GM Confidential – Do Not Distribute Customer Satisfaction Index (CSI) – Regional Average Target Achieved Fix-the-Phones Accessory Sales OnStar Auto Renewal
20. EBE vs Cadillac Pinnacle Program Cadillac will not be participating in the EBE program as they have an incentive program called Pinnacle. However, there will be a similar GM Accessories program offered to them with the following parameters: $35 - Accessories Performance Bucket Dealer Achieves Accessory Sales Objective: • Objectives set based on 2017 annual (regional) PNUR +10% multiplied by average quarterly 3 year moving average RVDs. OR Dealer Achieves YOY Quarterly Accessory Sales Growth: +10% (Q1) +15% (Q2) +20% (Q3) +20% (Q4) • YOY growth “stepped up” throughout year so dealers can adjust processes – pay plans, etc. OR $25 - Second Chance to Earn • Dealer Achieves Accessory Sales Objective: Objectives set based on 2017 annual (regional) PNUR +7% multiplied by average quarterly 3 year moving average RVDs