The Data-Driven Path to Automotive Retail Success | Brendon Reardon, Cox Automotive

The automotive retail landscape is undergoing a profound transformation, with dealerships facing a sobering 30% decline in profitability compared to 2022 highs. Market volatility, rising floor plan expenses, and increasing advertising costs are squeezing margins like never before. But amidst these challenges, forward-thinking dealers are discovering pathways to sustainable success.

In this eye-opening conversation with Brendan Reardon, Associate Vice President of Sales at Cox Automotive, we unpack the strategies that top-performing dealerships are implementing to thrive despite market headwinds. The secret lies in the powerful combination of data intelligence and customer-centric selling approaches that fundamentally transform the car buying journey.

Today's car buyers aren't just seeking vehicles – they're demanding experiences. They want to buy cars rather than be sold them, through processes that are transparent, collaborative, and respectful of their time and intelligence. This shift requires dealerships to leverage sophisticated data tools that identify the most promising leads before they even reach out, and then respond with hyper-personalized communications that acknowledge the wealth of information customers now share about themselves and their preferences.

The results speak volumes: dealerships utilizing AI-powered solutions like Deal Central are experiencing double the close rates, 15% higher back-end profit, and hundreds more in profitability per deal. These impressive metrics stem from creating experiences where shoppers encounter consistent information across all touchpoints, collaborate side-by-side with sales professionals, and ultimately leave feeling confident in their purchase decision. When executed properly, this approach creates a virtuous cycle of satisfied customers who are 4.5 times more likely to share their positive experiences on social media and 3 times more likely to return for future purchases. Ready to transform your dealership's approach to meet the evolved expectations of today's car buyers? This episode provides your roadmap.

Chapters

• 0:00 Introduction to Consumer Expectations
• 0:57 Dealership Challenges and Profitability Decline
• 1:45 Lead Conversion and Data Solutions
• 3:35 Improving the Shopper Experience
• 5:25 The Value of Customer Satisfaction
• 7:40 Key Takeaways and Closing Thoughts

Transcript

Jim Fitzpatrick: 0:04

This is Driving Solutions exclusively on CBTNews. com. Hey everyone, I'm Jim Fitzpatrick, thanks so much for joining me this morning for another episode of Driving Solutions here on CBT News. Today we're discussing consumer expectations in automotive retail and how dealerships can improve the car buying experience to increase efficiency, improve customer satisfaction and boost profitability. Joining me for a deeper look is Brendan Reardon, Associate Vice President of Sales at Cox Automotive. Thank you so much, Brendan, for joining me on the show today.

Brendon Reardon: 0:38

Yeah, Jim, thanks for having me. I'm excited for the conversation.

Jim Fitzpatrick: 0:41

Sure, as I am as well. So let's kick things off with the dealer's perspective. What have dealers been telling you so far in 2025? There's been kind of a topsy-turvy landscape out there for dealers, but what are you hearing so far?

Brendon Reardon: 0:57

Yeah, there's a lot of fear. Oh yeah, profitability is definitely at the top of everyone's mind right now. Oh yeah, dealership profitability has declined about 30% compared to 2022 due to rising floor plan and advertising costs. But probably the biggest thing is the market volatility and the uncertainty that's really come with all the tariff announcements and things like that. So, you know, we're really leaning in on a couple of things to try to help our dealers focus by really focusing on improving lead conversion and then also improving the shopper experience, like you said.

Jim Fitzpatrick: 1:36

Yeah, yeah. So what are the most successful dealers doing to combat the profitability decline and improve lead conversion and improve the shopper experience overall? I'm sure that shoppers are just as concerned about things as the dealers are.

Brendon Reardon: 1:50

Yeah, you're right, you're right, and I guess I'll start with improving the lead conversion. Right, it might sound really simple, but without the right tools and the data more importantly, the data it could be next to impossible. There's, quite frankly, more data available than many of us can realistically manage, but that data is incredibly valuable when you're equipped with tools that enhance your sales workflows. With FinSolutions, predictive Insights, for exampleying signals tell you which leads are most engaged and which ones are most likely to buy. And, jim, I'm telling you that's not just for hand raisers for leads. Right, the tool uses shopper data from AutoTrader, kelley, bluebook, dealercom to identify active shoppers from your database who haven't even reached out to you yet. Yeah, so this really opens up the opportunity to not just sort through the best leads but also capture more of them. Right, and with this kind of technology, you can meet shoppers where they're at and practically bring them into the buying process. Yeah, yeah, for sure so you know.

Brendon Reardon: 3:03

And then the other thing I have to mention in any discussion about leads right now is the importance of the quality of response to them. Right yeah, Shoppers are sharing more information about themselves and their interests than ever before, and we have to have a way to engage with them that reflects that. So, again, that's where the right tools come in. Vin Solutions has a new generative AI solution that instantly creates professional, personalized communications for your salespeople. And take it another level with our automotive marketing platform that can automate sending out those targeted communications. So we're trying to really lean into those types of things.

Jim Fitzpatrick: 3:47

Yeah, yeah, and those are good things to lead into for sure. What else should dealers be thinking about when it comes to improving the shopper experience? And what is the top of the I should say the top pain point for today's car buyers that are coming into showrooms or calling or clicking in?

Brendon Reardon: 4:03

Yeah, you know I always look at this as a shopper. Right, Car buyers want to buy a car instead of being sold a car. They want, you know, they want a process that is transparent and collaborative and that's really, you know, a big driver of why we created Deal Central, our new AI-powered deal-making solution. With Deal Central, we tried to simplify that process by keeping the customer experience top of mind. Yeah, I mentioned the value of meeting shoppers where they are earlier. This is critical, not just in the early stages of engaging as a lead, but throughout a shopper's entire buying journey. So Deal Central makes it easy to pick it up with a shopper where they left off online, then literally collaborate with them side-by-side using an iPad or a computer to put a deal together that makes sense for them and for the dealership?

Jim Fitzpatrick: 5:08

Yeah, for sure. So are there any other consumer expectations that dealers should be considering in all of this?

Brendon Reardon: 5:15

Yeah, I just reiterate how important transparency is in today's shoppers, with today's consumers. Consumers want to be confident they got the best deal for their vehicle. So I guess the biggest thing is to provide clear, you know, consistent information on vehicle pricing and history, have honest communication which will help them. You know the buyers feel secure in their purchase decision and one way to build trust is making sure that shoppers are given options for how they would like to work the deal. And also, the bigger thing is probably to see the same deal terms at every touch point. You know, nothing will undermine their confidence like seeing one monthly payment online and then hearing another when they come in for the test drive. Yeah, that's right, Right, right.

Jim Fitzpatrick: 6:05

That's not going to work.

Brendon Reardon: 6:07

It's not going to work and if we stick to our guns, this approach leads to higher customer satisfaction, repeat business and, obviously, positive word of mouth in the market.

Jim Fitzpatrick: 6:18

Yeah, no question, and that repeat and referral business is critical to overall success for a dealer today, right?

Brendon Reardon: 6:25

Yeah, absolutely. You know it isn't just about the repeat sale. It isn't just about the repeat sale. In my mind, it's about a good buying experience that sets you up to create lifetime value across the full ownership journey. Yeah, including service and trade-ins right, right, right. But again, that's only possible with a full, accurate picture of your customer from the robust data data. That's why at Cox Automotive, we're so committed to providing the first-party shopper data to all our dealers in a way that they actually can act on it. We have to remember that consumers will share their dealer experiences and that will impact the dealer reputation. Consumers who are satisfied with their car buying experiences are four and a half times more likely to post about it on social media, three times more likely to recommend you, three and a half times more likely to buy from you again. Wow. So you know we're seeing results that are very positive. Shopper experience in preliminary data from Deal Central, dealers that are using it are seeing a two times higher close rate, 15% higher back-end profit and hundreds more in profitability per deal.

Jim Fitzpatrick: 7:42

Any parting thoughts as we approach the close of Q2 for dealers.

Brendon Reardon: 7:48

Yeah, first and foremost, thanks Jim for having me on. It's been a pleasure. We talked about a few puzzle pieces here today Deep data, relevant communication and collaborative dealmaking with the consumer. I believe the magic happens when all of these pieces come together. Yeah, all of these pieces come together, yeah, yeah, it's really the combination of all these shopper-centric elements set your dealership up for long-term success.

Jim Fitzpatrick: 8:17

Yeah, for sure. Brendan Reardon, Associate Vice President of Sales at Cox Automotive, thank you so much for stopping by CBT News. It's always great catching up with you, and certainly Cox has got so many solutions for dealers, and so I really appreciate you taking so much time with us today.

Brendon Reardon: 8:33

Man, it's great to be here. I appreciate the time as well, Jim, thanks. Thanks so much, all right.

Jim Fitzpatrick: 8:42

Thanks for watching Driving Solutions exclusively on cbtnewscom.