Dealer Huddle Next is a one-day conference that takes place in different Canadian cities, focusing on the future and issues facing the auto retail industry. The Toronto version took place this week at Centennial College in Scarborough and featured presentations from industry experts and selected vendors.
More than 100 people attended the event, including a mix of dealers, vendors and experts. Brian Kingston, President and CEO of the Canadian Vehicle Manufacturers’ Association, opened the event via remote video. Other speakers included: Gerald Wood, President of the Motor Dealers’ Association of Alberta; Daniel Ross, Canadian Black Book’s Senior Manager of Industry Insights; and Fenton Bolden, Fixed Operations Advocate.
Mathew Growden, The Change Optimist, and former Google Canada auto expert, and Bri Newman, Vice President of The Minery, also took part. Keyloop, an auto software vendor, was one of the event’s key sponsors.
One presenter was Mike Mazgay, Sirius XM Canada’s Vice President, Automotive Partnerships & Dealer Operations. He identified a few key trends, including how dealers need to adapt to serve newcomers to Canada, Gen Z and Millennials. They are looking for more of a human touch experience with dealerships when buying cars.
Mazgay focused on the in-store shopping experience compared to digital in his presentation. “I’ve been in this industry a long time and all I hear is ‘we’re going to be replaced by high tech and everyone’s going to want to buy their cars on-line,’” said Mazgay, who said he has been involved in the automotive business for more than 25 years.
He said 75 per cent of prospective Gen Z and Millennial car buyers want to interact with car dealerships and the auto industry is well positioned for them.
“If you’ve been out buying consumer goods over the last couple of years, it’s pretty challenging,” said Mazgay. “Salespeople for the most part are uneducated, uninterested, and a product is a product. We have a model here that the customer comes in and talks to you. The next generation wants to talk to you and everybody in your store.”
He said the second trend is 76 per cent of customers want personalization with their purchasing experience.
“What does that mean? It means 76 per cent of people are also more likely to refer people and return,” said Mazgay. “Why do we spend (money) to get new customers into the store when you’ve already got a great list of customers in your CRM? This is no different. It’s going to make a lot more gross and your sales are going to be a lot easier. Personalize that experience, understand your customers — who they are, what they want, what makes them tick — and you’ll get better results.”
He said the third trend is “staying in the know,” meaning it’s important to be aware of what is going viral. “Understanding that (what) drives your customer is important (when) looking at sales,” said Mazgay.
He said what’s on top of car buyers’ minds now is price, noting the average price of a new car in Canada is $65,000. And he said that was a concern even before the tariffs became an issue. “That’s quite a bit of money, no matter who you are, and I think the customer telling us they are price conscious is more about being value conscious,” said Mazgay. “So build the value of that vehicle and the dealer role.”
He said another trend is how drivers view their cars as an alternate space. “It’s really important to understand they are viewing their vehicle as an extension to not only their home but their office as well,” said Mazgay.
He said 71 per cent view listening to audio as a crucial part of their driving experience, and that the industry tends to overlook this. He said manufacturers spend a lot of money developing incredible infotainment systems but tend to ignore the audio experience.
“I think we need to spend a little bit more time focusing on what is available in that audio entertainment system so your customers have a better understanding of what’s there,” said Mazgay. “Show them how to access different content.”
Gerald Wood, meanwhile, touched upon various challenges going on in the industry, but emphasized dealers from coast to coast are resilient.
“They are trying not to overreact right now,” said Wood. “The first four months of the year have been very strong, both on the fixed operation side as well as on the new vehicle, so they are in a very good place. Concerned is probably the best way to describe what they are kind of looking at moving forward.”
