EP 9:09 Solving Dealers' Biggest Challenges: Tackling CDK Cyber Outages and HR Deficiencies

Millionaire Car Salesman Podcast

Welcome to another exhilarating episode of the Millionaire Car Salesman Podcast featuring LA Williams and Sean V. Bradley as they navigate through the tumultuous yet exciting automotive industry landscape. This dynamic duo dives deep into recent issues, providing insights on how to master adverse situations and leverage innovative solutions like artificial intelligence and international staffing to safeguard and enhance dealership operations.

In this episode, Sean and LA discuss the extensive impact of the CDK cyber attack that affected around 15,000 dealerships, leading to an estimated 100,000 fewer cars sold in June 2024 alone. They break down how dealerships can better prepare for such crises by focusing on essential backup plans, seamless lead routing, and the power of artificial intelligence. The duo elaborates on how some dealers turned to manual systems and collaborative strategies to stay operational during the outage. Additionally, they spotlight the importance of HR strategies and how international staffing can be a game-changer for your dealership.

Tune in to gain valuable insights and practical advice that can transform your dealership's approach to crisis management and operational efficiency. Don't miss this opportunity to learn from the best in the industry!

Key Takeaways

• Importance of preparedness in dealing with unexpected crises like cyber attacks.

• Strategies for handling automotive industry disruptions, such as lead rerouting and manual backups.

• Leveraging artificial intelligence to maintain operations and enhance customer interactions.

• Utilizing international staffing solutions to fill HR gaps and improve overall dealership performance.

• Upcoming Dealer Synergy events and initiatives aimed at transforming the automotive industry.

Resources:

Podium: Elevating Dealership Excellence with Intelligent Customer Engagement Solutions. Unlock unparalleled efficiency and drive sales with Podium's innovative AI technology, featured proudly on the Millionaire Car Salesman Podcast.

Dealer Synergy & Bradley On Demand: The automotive industry’s #1 training, tracking, testing, and certification platform and consulting & accountability firm.

The Millionaire Car Salesman Facebook Group: Join the #1 Mastermind Group in the Automotive Industry! With over 28,000 members, gain access to successful automotive mentors & managers, the best industry practices, & collaborate with automotive professionals from around the WORLD! Join The Millionaire Car Salesman Facebook Group today!

Win the Game of Googleopoly: Unlocking the secret strategy of search engines.

The Millionaire Car Salesman Podcast is Proudly Sponsored By:

Podium: Elevating Dealership Excellence with Intelligent Customer Engagement Solutions. Unlock unparalleled efficiency and drive sales with Podium's innovative AI technology, featured proudly on the Millionaire Car Salesman Podcast.

Dealer Synergy: The #1 Automotive Sales Training, Consulting, and Accountability Firm in the industry! With over two decades of experience in building Internet Departments and BDCs, we have developed the most effective automotive Internet Sales, BDC, and CRM solutions. Our expertise in creating phone scripts, rebuttals, CRM action plans, strategies, and templates ensures that your dealership's tools and personnel reach their full potential.

Bradley On Demand: The automotive sales industry’s top Interactive Training, Tracking, Testing, and Certification Platform. Featuring LIVE Classes and over 9,000 training modules, our platform equips your dealership with everything needed to sell more cars, more often, and more profitably!

Navigating Cyber Attacks and Embracing AI in Automotive Dealerships: Insights and Innovations Key Takeaways

• Proactive crisis management: Emphasize preparation and rapid response to potential cyber threats to minimize business disruptions.

• AI and international employees: Leveraging AI and international talent can enhance operational efficiency and service quality.

• Continuous innovation: Staying ahead of technological advancements and evolving business practices to ensure long-term success.

Proactive Crisis Management Amid Cyber Threats

Recent events in the automotive industry underscore the vital importance of preparing for and managing crises. Sean V. Bradley and LA Williams of Dealer Synergy delve into the ramifications of the recent CDK cyber attack that impacted 15,000 dealerships, revealing essential strategies for resilience and recovery.

Redirecting Communication Channels

One immediate response to the cyber outage was rerouting leads to different email addresses to maintain communication with potential buyers. Bradley emphasizes the necessity of such measures to mitigate the effects of system failures:

"First of all, there was a major outage, so our systems were down throughout the country. But keeping the public informed and maintaining communication was key."

Such proactive measures ensure that businesses remain functional during crises, even if they cannot rely on standard operational procedures.

Utilizing Paper Forms

Another adaptive strategy during the CDK outage was reverting to paper forms. Many modern dealerships, accustomed to digital processes, were unprepared for a scenario where they needed to operate without digital systems.

"Some dealerships didn't even have paper buyer's orders," Bradley notes, highlighting a critical oversight that can be easily rectified through preparedness.

Ensuring that essential documents, like buyer’s orders and trade appraisals, are available in physical form can serve as a contingency, providing a fallback when digital systems are inaccessible.

Leveraging AI and International Talent

In an industry increasingly shaped by technological innovations, the integration of AI and international employees is emerging as a transformative strategy. Bradley and Williams explore how these tools can address labor shortages and enhance dealership operations.

Artificial Intelligence in Crisis Management

Artificial intelligence (AI) played a crucial role during the CDK outage. By redirecting leads to AI-powered platforms like Podium, dealerships were able to maintain customer engagement despite significant disruptions.

"Dealers rerouted all their leads to their podium AI platform, allowing them to intelligently organize follow-up communications and keep track of customer interactions," explains Bradley.

With AI handling communication, dealerships can ensure consistent customer service and engagement, even when internal systems are compromised. This approach not only addresses current issues but also sets a precedent for handling future crises more effectively.

International Employees (W8 Ben Employees)

Bradley introduces the concept of W8 Ben international employees, particularly from countries like the Philippines, as a solution to the automotive industry's labor challenges. These employees, functioning as general contractors, provide a myriad of operational benefits without the overhead costs associated with traditional employment.

"They work on a Zoom call all day, using Voice over IP phone systems to take consumer calls and manage CRM systems just like they were sitting in the dealership's office,” Bradley explains.

The integration of international employees helps dealerships manage high operational volumes without the added financial burden of domestic employment laws and costs, allowing for a streamlined and efficient workflow.

Continuous Innovation for Long-Term Success

Innovation remains a cornerstone of success in the automotive industry. Bradley and Williams emphasize the importance of staying ahead of technological trends and evolving business practices to ensure long-term growth and resilience.

In-House Call Centers

A novel approach is the development of in-house managed call centers, such as a potential expansion into Belize for Dealer Synergy.

"Imagine creating a team that we can train with our regimens, CRM processes, and artificial intelligence, leveraging the best practices we’ve built over years in the industry," muses Bradley.

By establishing call centers in regions with favorable labor conditions and time zones, dealerships can maintain high service standards while managing costs effectively.

Expanding Industry Engagement

Dealer Synergy's ongoing involvement in high-profile events and collaborations, such as speaking at NADA 20 groups and expanding contracts with OEMs like Toyota, reflects a commitment to industry leadership and continuous improvement.

"We are collaborating with NADA's 20 groups and expanding our relationships with Toyota OEM, among other initiatives," Bradley shares, demonstrating a proactive approach to fostering industry partnerships and driving innovation.

These engagements not only enhance industry knowledge but also ensure that dealerships remain at the forefront of best practices and technological advancements.

Navigating cyber threats and embracing technological advancements are imperative for automotive dealerships aiming for long-term success. By implementing proactive crisis management strategies, leveraging AI and international employees, and continuously innovating, dealerships can resiliently navigate disruptions and capitalize on emerging opportunities. The insights from Bradley and Williams highlight the necessity of preparedness and adaptability in an ever-evolving industry landscape.