Category: DMS

Boost Customer Experience with Convenient Deal Processes

Posted on

One of the most important things a dealership can do to earn loyalty and repeat business is to respect car buyers’ time during the purchase process. Anything you do to reduce wait times, keep data moving without re-keying, and speed steps of the purchase process help to demonstrate that you appreciate and value your customers. Fortunately, some solutions make it much easier to provide the kind of experience that fosters customer satisfaction.

Get a head start on the car-buying process

You can begin to build convenience into the purchase process early on by providing tools on your website such as monthly payment calculators, credit applications, and interest rate comparison tools. These allow customers to feel more informed and better prepared to move forward with their deal, often before they’ve even asked a question.

The most recent Cox Automotive Car Buyer Journey study found that with each step of the finance process completed online, customer satisfaction increases and time spent at the dealership decreases, so anything that can happen in advance helps improve the car buyer’s experience.

You can also use your website to provide educational information about your deal process to set expectations about the steps to follow.

 

Keep the data digital

Once a car buyer has submitted information online, make sure you have the integrations to ensure that the confirmed data follows them through each step of the deal. Being able to pre-fill numerous fields saves a considerable amount of time as you build out the customer’s digital deal jacket and create an eContracting package for them to sign electronically.

Remaining digital throughout the deal speeds the process and lets you stay focused on getting to know the customer. Any car buyer would rather use their time at the dealership to learn more about their vehicle instead of getting a hand cramp signing stacks of paper documents.

Think about lifetime value

Creating a positive customer experience is not just about getting good CSI scores, reviews, and referrals—it’s also about the repeat business each customer can represent. 81 percent of customers say a positive customer service experience increases the chances of them making another purchase.

It will probably be a while before any given customer’s next vehicle purchase, but they will need routine maintenance and repairs averaging around $600 per year that your service department can provide. To help ensure that your dealership gets that business, be sure to incorporate a handoff from sales to the service department as each deal concludes.

With the right handoff and an ongoing service relationship, your dealership can become the preferred source for the next vehicle sale for that customer and their friends and family.

Learn More
Download the free eBook “Drive Success with Key Operational Shifts” to find out more ways to use technology to help you build lifetime customer loyalty.

 

Sources:
“CX Trends 2022.” Zendesk. www.zendesk.com/customer-experience-trends-2022.
“How to Plan for Maintenance and Repair Costs for Your Car.” AAA. www.aaa.com/autorepair/articles/how-to-plan-formaintenance-and-repair-costs-for-your-car.

Unlock Better Customer Experiences with a Solid DMS

Posted on

Consumers have high expectations. Month after month of low inventory, high prices, or high interest rates have given dealers like you an opportunity to step up and be their hero. When you deliver a positive buying experience you can help them overcome some of those frustrations. According to a recent Salesforce survey, 88% of consumers said their experience matters as much as a company’s products or services.¹ Here’s why investing in a high-performing dealer management system (DMS) is more than just a smart move.

Data Continuity and Your DMS

Your DMS is a data powerhouse. A better-integrated solution reduces manual data entry time by pre-filling forms for your customer. Integrated deal processes mean car buyers spend less time at your dealership and reduce the need to re-key customer information multiple times. These workflow efficiencies are just the beginning as better data leads to better opportunities to fine-tune how you run every department within your business.

Utilize DMS Data to Optimize and Improve Workflows

Your DMS holds the key to unlocking business improvements with its ability to track, optimize, and improve the performance of your team. More than simply a giant data repository, your DMS offers insights via reports and metrics like your gross profit as a percentage of sales. When aiming for process and profitability improvements, tracking small improvements can indicate underperforming departments and identify key opportunities for improvements that add up.

Efficient Workflows Make Everyone’s Experience Better

When your DMS is flexible and easy to use, your team can spend less time re-keying data and memorizing codes and more time delivering the next-level customer experience your dealership prides itself on. You’ve probably seen what complicated technology can do to a frustrated team member—new hire or veteran. Bottom line: when you put the focus on the person who needs your assistance, your salespeople tend to shine.

Many DMS technologies are designed to work well on their own. A DMS that improves your entire operation from the back office to the showroom, to HR, finance, and fixed operations through streamlined integrations can deliver the smooth dealership experience that customers expect today.

Driving operational shifts may sound like a tall order, but when you begin with the fundamentals—diving into your data, focusing on the team players, and improving your gameplay—you can deliver the experience your customers are seeking. Your DMS is the one technology you simply can’t overlook when considering what and where to focus within your organization. To learn more, check out this guide: Drive Success with Key Operational Shifts: Smart changes can lead to big dealership wins.

 

Three Tips to Ensure a Great Registration and Title Experience

Posted on

If it seems like more of your customers are in a hurry lately, it’s not just your imagination. A study found 39% of consumers have less patience than they did before the pandemic¹. For dealerships, the best ways to set up the experience customers demand are to speed the deal process and avoid any situations that cause time-consuming complications or delays.

That’s true from the moment the customer begins their interaction with you, but let’s look at how you can specifically optimize registration and title steps with technology. After all, the deal is in the home stretch at reg and title, so customers will be particularly aware of whether they’re reaching the conclusion quickly or getting bogged down.

Always Keep Moving

One way to keep the registration and title process running smoothly is to make sure your technology is integrated so that information entered and confirmed earlier in the deal doesn’t need to be re-entered later. You can win with customers by digitizing previously manual processes and setting up the right integrations to make sure that customer and deal data flows from leads to contracts to registration and title.

How annoying is it for customers to have to say the same things over and over? Enough that 93% of people surveyed said they were willing to spend more with companies that don’t make them repeat information.² So, integrations not only reduce aggravation for your staff and customers but can actually put the customer in a better frame of mind for spending.

Avoid Trade-In Complications

Using a trade-in titling solution to get a look at the title before accepting a trade should be a routine step for any deal with a trade-in. If you’ve ever had to unwind a deal due to a surprise co-owner on the title, you know that what you don’t know can hurt you – and lead to the opposite of a great customer experience.

When you can see all the title details up front, you can go into each trade with your eyes wide open and work with the customer to straighten things out before they become a problem. Also, the faster you can take in a trade and get its title in hand, the more inventory choices you have available for the next customers!

Optimize Your Processes

Last but not least, don’t forget to attend to technical details like default settings, templates, and automation to give your workflows extra speed and help your staff focus more on the customer and less on repeating routine tasks. Take full advantage of your integrations and connections with state DMVs and lenders to make your registration and title workflows fast, efficient, and accurate for you and your customers.

Learn More
Download the free eBook “Drive Success with Key Operational Shifts” to find out more ways to use technology to enhance the customer experience – and your profitability.

 

1“The State of Customer Service Report.” April 14, 2022. Netomi. www.netomi.com/the-state-of-customer-service-2022
2“CX Trends 2022.” Zendesk. www.zendesk.com/customer-experience-trends-2022

Operations in a Lean Inventory Environment

Posted on

In the wake of the coronavirus pandemic, the industry faces significant inventory shortages that threaten your dealership’s profitability. With fewer cars to sell, you’ll need to adjust your dealership operations by developing a comprehensive, cross-departmental strategy for thriving in a lean inventory environment. As a centralized force for dealership change, operational staff can help guide and implement that strategy by encouraging departmental collaboration, improving dealership-wide processes, and providing helpful metrics and reporting.

Encouraging Departmental Collaboration

Lean inventory environments present unique challenges that demand increased levels of inter-departmental collaboration. To thrive within such environments, you’ll need to tear down the traditional silos that keep departments operating independently. Important communication and collaboration between the service and sales department will be necessary to source used cars from service customers and to find sales opportunities. Your sales and marketing departments will also need to work closely to segment, target, and close on high-potential opportunities for selling and sourcing vehicles. Operational employees will have the important job of ensuring that everyone within your dealership is connected, communicating, and capturing necessary data.

Improving Dealership-wide Processes

During periods of lean inventory, it won’t be enough to simply improve communication within the dealership. Your dealership’s operational employees will need to develop and refine important internal processes. In many cases, you’ll need to abandon the status quo and adjust processes, adapting them to fit the unique conditions created by inventory shortages. Most importantly, you’ll need to align around an internal process for bolstering inventory by purchasing cars from customers and from vehicle owners in your service lane. Determine the right pay structure for vehicles acquired out of the service lane. Consider paying customer pay rates vs. internal rates for recon of vehicles purchased out of the service lane prior to being serviced. Decide who will approach those customers, what they will say, and how employees will be rewarded for sourcing and selling cars.

Reporting and Analytics

Because your dealership will be shifting many of its strategies, operational employees will also need to carefully track and report performance. You’ll want to keep a close eye on key metrics that indicate whether or not new tactics and processes are actually working. Provide regular reports to each department, allowing them to evaluate their individual performances and adjust their approaches.

Of course, reports aren’t just about looking backwards. Operational employees can also play an important role in achieving the dealership’s forward-thinking goals, including sales and inventory sourcing. For example, a simple sales trend report for used vehicles can help the dealership determine which models are in high demand or are bringing in high gross profits. Using that information, all departments can solicit trade-ins from customers that own those cars. Website analytics reports can provide similar information based on search volume and VDP views for specific vehicle types.

Enduring and overcoming inventory shortages will require strategic adjustments from every department of your dealership. Those charged with managing dealership operations will have an especially important job—one that requires them to bring all departments together through communication and collaboration. By sharing information and improving processes, your dealership’s operational employees can put every department on the path to success while helping the entire dealership to navigate these challenging times.

To learn more strategies for thriving in the current inventory environment, check out our free Lean Inventory Playbook.


CXT21-0013_Lean-Inventory_Playbook_Website-Thumbnail_650x650_v1

Lean Inventory Playbook

A guide for aligning dealerships strategies with inventory shortages.



Get The Playbook

5 Ways to Help Your Team Adapt to Digital Processes

Posted on
By: Chelsea Verstegen

This article is authored by our partners at Hireology, the automotive experts providing HR Solutions for Dealertrack DMS. 

Implementing new technology happens frequently in dealerships — especially in 2020. Technology platforms have the opportunity to boost employee engagement, streamline daily processes, and save your dealership time and money.

This year, many technology investments have been made to help teams do their jobs safely and efficiently. But, without proper training, they can have adverse effects on employee productivity.

Ensuring your team understands the ins and outs of your products is a necessary step in your company onboarding and training. The same should be required for any new digital purchase. Here are some ways you can help your team transition to digital processes at your dealership.

Make Sure Your Technology is Teachable

Before making a technology transition, think about the adoption of the product. Does it integrate with your existing platforms? Does it need special equipment (Mac vs PC or mobile vs tablets) to run effectively? Does it fit into your team’s current workflow or will it make their job more difficult? And, most importantly, are there others in the retail automotive industry using this technology and will it be easy to teach your team?

Without running through these questions, you risk wasting valuable time and money on a product that will only hinder your team’s performance, so be mindful as you try out new products.

Share Value Propositions with Employees

Make sure your employees know why you chose to purchase new technology. Share with them why your investment was made, talk about competitors that you considered, and detail what made you ultimately make your decision.

You can even involve your team members that will work most closely with the product in the decision making process — they’ll be able to give you great insight into pain points in your current process.

Ultimately, you want your team to understand the impact that each individual has on your ROI, so explaining why a product was purchased to help them achieve that goal will show them they are valued.

Incorporate Tech Training into Your Onboarding

The onboarding process is a time to get to know your new employees and provide them with insight and training to do their job while representing the high standards of your dealership. But it’s also essential to use the onboarding process to get new hires up to speed on how to utilize your various digital platforms to their advantage.

With each new advancement or product rollout, make sure you update your onboarding to include training on it. Make your training comprehensive and detailed so your HR team isn’t bogged down with too many follow-up questions.

Provide Training for Tenured Employees

Make sure all your employees know how to properly use your technology stack — even those that have been with your dealership for a while. New product features can be covered in monthly or quarterly product training sessions to provide employees with a greater understanding of your digital investments.

Ask that managers check in with their team to make sure any questions are addressed and that everyone feels comfortable with their knowledge base on new and existing technology. Use feedback from these conversations to guide your future training sessions.

Incentivise Using Digital Products

There may be some team members that are not used to technology driving their day-to-day, so they may be a harder sell when it comes to the implementation of new digital practices. Create an incentive program that rewards those who adopt the new technology, or try making technological training part of employee bonus or career advancement requirements. This will motivate your employees to learn new skills and give them targets to track their progress.

The right technology platforms have the potential to transform the daily processes at your dealership, but without careful consideration, comprehensive training, and ongoing motivation, your investment could fall flat. Set your team, new and old, up for success with thorough training on new technologies to guarantee positive ROI.

Interested in learning how Hireology can help you take your hiring process digital? You can schedule a free demo here.

Join us at Cox Automotive Experience — Reserve your spot today — and be surprised by what you can accomplish with the partners.
About the author

About the authorChelsea is a content strategist at Hireology. She moved to Chicago from Texas in 2017, and has since worked in content creation roles at other SaaS companies with the intention of creating thoughtful, industry leading materials. Chelsea attended Texas State University with a major in Journalism and a minor in English.

Can You “Kondo” Your Outdated DMS Technology?

Posted on

Have you heard about the trend that is Marie Kondo, the Netflix star and best-selling author of The Life-Changing Magic of Tidying Up: The Japanese Art of Decluttering and Organizing. This cultural phenomenon has sparked a movement encouraging everyone—at home and at work—to declutter and experience more joy in minimalism. Which leaves the question: How tidy is your dealership?

What’s really holding you back from switching your DMS?
The fear of a technology transition holds many dealerships back from switching to a DMS that meets their needs. And, this is very true: status quo, the comfort of a familiar system, and dealing with the discomfort of change management can delay a much needed upgrade. But there may be more to it than that. Dealerships aren’t run by robots, they’re run by human beings. And humans have a hard time letting go.

If you overpaid for it, it’s hard to let go.
The average dealership is now running on about seven different technology systems. Those numbers add up—seriously!—and that has a funny psychological side-effect. It turns out, the potential aversion to losing anything your dealership has invested a significant amount of money in will always outweigh the perceived benefit of change. This “sunk cost fallacy” is only holding you back, so many dealerships invest in more technologies to integrate with the systems they’re already paying for, rather than give up on a failed investment.

“Switching over was kind of like cleaning out the garage, taking everything out, blowing out the cobwebs, and putting it back the way (we) wanted to put it back.” – Sean Flanagan, Vice President of Smythe Volvo 

Once you make the decision to clean out the mess, it’s like a fresh start.
While the cultural trend of “letting go” and decluttering might feel like hype, you can take it from our partners at Smythe Volvo on the benefits of a DMS change. According to Vice President Sean Flanagan, “The switch to Dealertrack enabled us to really organize the way we thought about (our) business. Switching over was kind of like cleaning out the garage, taking everything out, blowing out the cobwebs, and putting it back the way (we) wanted to put it back.” That sounds a lot like “life-changing magic” to our ears!

Ready to learn more about making a DMS switch? Get a copy of our guide, Dealer’s Dilemma: Letting Go of Old Technology.

A Right-Sized DMS: What’s Tech Costing Your Dealership?

Posted on

The business of selling cars is complex. Technology solutions were supposed to streamline and simplify the process so your team could focus on what you do best: serve your customers. But, as dealerships began adopting technology at a rapid pace, their investments haven’t always served them back.

According to our research, dealerships now run on average of 6.8 technology systems just to make it through the day. At this rate, it’s important to take a minute and ensure that the technology you’ve invested in is returning the favor. Watch the video below to get an end-to-end view of Dealertrack DMS and the goal of a dealer management system right-sized for your dealership.


Then, dive into the actual study, the Dealers’ Digital Ecosystem, and determine whether or not your technology is helping, or hindering, your goals.

Read the study here.

 

 

Driver’s Village: More Than A Vendor, A DMS Partner

Posted on

The crew at Driver’s Village relies on their DMS for a lot of things: running a smooth business, digging deep into their data and analytics, and growing. So, when it came time to choose a new technology, they didn’t want to purchase a vendor, they wanted to find a partner. That’s where Dealertrack DMS came in. But, what does it take to make the grade? What are the key attributes that make a DMS provider qualify as a partner? Here are the four top qualities that Driver’s Village looks for in their partnership:

A True Partner Drives Connectivity
With Dealertrack DMS and Opentrack, there’s a bi-directional connectivity with other partners and integration that allows dealerships the ability to look back. And when you have the ability to dive into your dealership’s history, like Driver’s Village, you’re more empowered as you move forward. Connecting, empowering, and making all data easily accessible is step number one to being a good partner.

Good Partners Help You Grow
Driver’s Village has actually partnered with Dealertrack DMS since the 1990’s and a lot has changed. As they’ve grown (and grown!), Dealertrack DMS has been there each time a new dealership has joined the family. Having a partner who helps Driver’s Village reach their goals, without being a roadblock or a burden, is key.

“We don’t consider Dealertrack DMS as a vendor,” says Firas Makhlouf. “We consider Dealertrack DMS as a partner.”

A Good Partner Brings Bright New Talent to Your Dealership
The old, archaic days of DMS in the green screen is the fastest way to scare away millennials when recruiting new team members. With high turnover rates and an increasingly difficult race to master the millennial market, a shift in DMS technology can be the key to finding, onboarding, and retaining potential candidates. “Our new hires? They like that ease-of-use and point-and-click…When we show them a nice DMS user-interface, with point-and-click, they feel at ease,” says Fira Makhlouf, CIO of Driver’s Village.

Making the Switch to a New Partner
An overhaul of your dealership’s DMS technology is a big deal. Although Driver’s Village has been with Dealertrack DMS for several decades, each time they acquire a new dealership their team faces the reality of changing the new business’s DMS to Dealertrack. The emotional process of making the switch, however, is softened by having a good partner at-the-ready. “Dealertrack’s DMS is intuitive,” explains Lou Bregou, Director of Operations. “Dealertrack has a history of integrating companies.” Plus, Driver’s Village points out that Dealertrack DMS is backed by Cox Automotive. It’s a partnership that the their team has come to rely on as more than just a vendor. “We don’t consider Dealertrack DMS as a vendor,” says Firas Makhlouf. “We consider Dealertrack DMS as a partner.”

Your dealership will always work with outside vendors, SaaS providers, retailers, perhaps even marketing agencies. And those vendors can be the key to your success or drive your downfall. It’s vital to select technology vendors who understand your goals, have reliable platforms, and are willing to work together to drive the success of your business. Ultimately, take time to select your vendors wisely and to forge partnerships with real people you trust. Read more about Driver’s Village and watch their story here.

 

5 Unique Lessons from the Experts: Hire Better, Not More

Posted on

The automotive industry faces high turnover, employee burnout, and staffing struggles that cost dealerships more money than most realize. Considering most employees reach their highest level of productivity at three years on the job, it’s disheartening to learn the average employee tenure rate at most dealerships is as low as 18 months. Dealertrack DMS AVP of Operations, John Grace, reached out to Van Horn Auto Group’s leadership team to learn the secrets of their high employee tenure rate. In their conversation, Chief Financial Officer Tom Stocco discusses Van Horns’ innovative hiring practices and unique strategies. Here are five valuable takeaways from the conversation, which was recorded and is available to watch anytime here.

Those Annual Reviews Should Really Be Daily Reviews
The saying goes, “Culture eats strategy for breakfast.” According to Tom Stocco, if you’re focused too much on the strategy of people management, and not on the culture of where actual people are working, those annual reviews are not going to work out for you. Instead, Tom recommends managers check in daily to get a pulse on the team’s satisfaction with their role and their workload. Checking in once a year is, sadly, too little, too late.

When Hiring, Tell The Story Of Your Dealership
When a candidate is interviewed at Van Horn Auto Group, transparency is key. Tom suggested that dealerships make an effort to tell the story of their dealership. Where did you come from and where are you going? What are your goals and aspirations as a company? Let the candidate know, and be upfront, because this will tell them more about your culture than you know. And, speaking of culture…

It Shouldn’t Take A Personality Test To Learn About Someone Sitting Across From You
Tom and his team threw out the personality tests a long time ago and instead opted to go with trust. According to Tom, it hasn’t always worked out. However, it feels more honest. Having multiple people within the dealership meet and interview each candidate, and giving each person the benefit of their full attention and time, is part of their culture.

Make Your Dealership Family A Priority
Investing in your employees needs to be more than lip-service. Company picnics and parties are nice, but your dealership needs to do more to prioritize their people. At Van Horn Auto Group, the leadership knows employees work harder for companies who actually care about them. Van Horn wants to see their team become successful long-term, and to prove it, they’ll pay half of the tuition cost for their employees to get a college degree. They also have serious focus on creating community, with shared experiences, within the dealership.

“Everything that we’ve done has focused on creating shared experiences and building a family.” – Tom Stocco, CFO of Van Horn Auto Group

Technology Is Critical Today. Embrace it!
Technology can, and should, bring knowledge to the transaction, to the customer, to your entire sales experience. If you aren’t making training and learning opportunities mandatory for your staff, you’re making a mistake. Reach out to your vendors and ask for additional training if you feel that your team would benefit from it. The bottom line is that dealerships spend a lot of money on technologies, and if you’re unable to optimize it, you’re hurting your employees.

In addition to these valuable takeaways from John Grace and Tom Stocco, you can view the full webinar on-demand here.

Overcome Your DMS Transition Fears

Posted on

Breaking the news to your controller that your dealership is switching technology is a difficult day for any Dealer Principal Owner or GM. While a technology transition can seem intimidating, staying stagnant with an out-of-date Dealer Management System (DMS) is much, much worse. Slow systems, data held hostage, expensive add-ons, poor customer support? These are practically nightmares! Take a look at the steps outlined in the graphic below and discover five ways to make the switch—and what you’ll gain once you do!

Download the full eBook and get ready to Overcome the Fear of Technology Transition today.