Category: Trends & Insights

Make the Move to a New Dealer Management System

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The technology you use to connect your dealership operations is like a lifeline. So, it makes sense that a decision to move to a new Dealer Management System is a big deal. For many dealers, making the transition to any new technology is a difficult decision. Disruptions in work and business are just the tip of the iceberg regarding the many fears that can hold people back. Overcoming the fear of change to your daily workflows and access to data goes even further. Fortunately, the dealers in the video below, found the process of switching to a new DMS was calculated, supported, and guided by a team of experts. Furthermore, once they made the switch, they found a technology partner invested in their success beyond the switch.

 

Technology That Doesn’t Hold Your Team Back

New tools and tech often sound glamorous to people with purchase power. But they can also carry an intimidation factor that causes anxiety to your entire staff. If you’re considering a new technology as integral as your DMS, be sure to weigh the pros and cons of its user interface and useability. If your new hires and legacy teammates are unable to learn how to use your DMS, you’ll have an even bigger issue on your hands once you make the switch. Dealertrack DMS is rated the #1 easiest-to-use, so your team can reach full productivity faster and employees can take advantage of its powerful capabilities.

Access to Data Shouldn’t Cost More

Businesses can’t operate without access to the data and insights that help them see the bigger picture. With drill-down reporting, real-time data, and remote access to information when and where you need it, you can make the best decisions for your business. Unfortunately, some vendors hold your data hostage. Dealertrack DMS is backed by Cox Automotive, giving you access to the most powerful source of truth in the automotive industry. In fact, our open system is built to enable reliable, affordable connectivity to your best-in-class preferred vendors. Our open platform allows for third-party integrations and pairs easily with the vendors of your choice, reducing costly integration fees other providers charge.

Ready to learn more? Visit https://us.dealertrack.com/dms/ and start demanding more from the technology driving your dealership.

 

 

Build Your Service Experience and Maximize Every RO

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With fewer cars coming off the factory line and inventory shortages continuing to impact dealers, more car owners are keeping their cars longer. While this trend is less than ideal for new car sales, it presents a real opportunity for your service department to boost dollars per RO and increase profits. Garry Shirley, Performance Manager at Dealertrack DMS, recently sat down with a diverse panel of dealers to discuss a shift in focus toward fixed ops. (Watch the discussion here.)

Building Rapport with Service Departments

Improving the service experience and maximizing every RO is every dealership’s North Star. But Gary Shirley wanted to find out how thriving dealers were actually making it happen. The Dealer Principals and Managers who participated in our panel shared real-life tips and strategies that delivered measurable results for both their bottom line and customer satisfaction. Key to their success was investing in new ways to offer a more personalized approach to service by utilizing every customer’s service history data. Additionally, using both photo and video communication in the service process kept customers engaged and increased the “trust factor” between parties.

Watch the discussion here and check out the new resource center for more tips and insights on improving the service experience and capturing more revenue in your service lane.

Sustaining Profitability Through Operations and Sales

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Between ongoing talent and inventory shortages, operating a dealership has arguably never been more challenging, and it doesn’t seem to be getting any easier anytime soon. With more competition for cars and qualified employees, dealerships have to do more to sustain profitability by improving operations.

Garry Shirley, Performance Manager at Dealertrack DMS, recently sat down with a panel of dealers to discuss key ways to improve operations and stay competitive in a changing automotive industry. (Watch the discussion here.)

Tips for Optimizing Operations

While sustaining profitability is an ongoing effort for business owners, no matter the current challenges, recent challenges in the automotive industry have put considerable stress on retaining talent and hiring for key positions in the service lane. Another topic trending for General Managers is the ongoing inventory shortage. How do dealers keep their sales team operating at peak performance when inventory remains low? In discussions with high-performing franchise dealerships, Gary found it often comes down to uncovering the right metrics and utilizing reporting in order to stay competitive.

Even the basic building blocks of a dealership require attention to make sure they’re operating smoothly. See how thriving dealers are keeping their sales and operations sharp in order to sustain profitability.

Watch the discussion here and check out the new resource center for more tips and insights on staying profitable in today’s competitive market.

 

 

The Dealer Who’s Different Demands a DMS Who Cares

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Making the move to a new Dealer Management System requires careful consideration from the stakeholders at your dealership. When evaluating the technology that houses the data driving your business, your entire staff will be affected by making the switch. For the team at Greg Hubler Automotive, who made the switch to a new-to-market DMS in early 2022, the promise of a better experience for both their guests and their people was reason enough to leap into the unknown. However, when the promise from their vendor was under-delivered and their employee morale took a big hit, Matt Lohmiller, VP of Operations, was ready to pull the plug. Greg Hubler Automotive is a different kind of dealer—one who truly values its people and its guests. Here’s their story.

A DMS Partner Who Lives Up to Their Promise

A few months after implementing their new DMS, Lohmiller received feedback from his team that things weren’t on the up and up. “I was going to potentially be losing some team members if we stayed (with the other DMS) …and I couldn’t have that.” Employee retention and satisfaction have always been key components of what makes Greg Hubler unique. While going through multiple DMS switches within several months isn’t ideal, Lohmiller took careful consideration from his team and decided to switch to Dealertrack DMS. After hearing their input, it was clear which direction they wanted to go. “We had to make the change,” he recalls.

A Partner Committed to Their Success

A key benefit of making the switch to Dealertrack DMS was the ability to observe the implementation process first-hand and compare the difference from Greg Hubler’s previous provider. The switch to Dealertrack DMS was more streamlined and the level of support “has been great, all around,” said Lohmiller. “Even after the implementation team has left, we have a Performance Manager we can reach out to any time.”

For the people at Greg Hubler, the difference has been night and day. The change enabled ownership and management to keep their promise of being a different kind of dealer—one that listens to team members cares for customers and prioritizes people.

Looking for a DMS who matches your values? Read Greg Hubler’s full story here. 

Making the Switch to Your New DMS

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Changing technologies might be the right move for your dealership, but it’s never an easy decision. Many dealers hold off switching to a new Dealer Management System for fear of disrupting workflows and downtime. It’s not a decision that any dealer takes lightly, which is why it’s so important to find a DMS partner committed to helping you every step of the way. Watch this video and discover why making the move to a more flexible DMS was worth the switch for these real-world franchise auto groups.

Trusted Partners

Your DMS provider should be invested in your success. When it comes to the time for installation, your new DMS team should be on-site, ensuring that your dealership has everything it needs to succeed. That means answering your questions, ensuring that every employee is up to speed, and employing industry best practices for data migration and installation.

Ongoing Support

Once your installation is complete, your new DMS partner should help you get the most out of your new technology. Your provider should have an ongoing presence in your dealership, consulting with your teams on a regular basis to improve performance and help enact operational changes when necessary. Because technology and the auto sales industry are constantly changing, your DMS partner should be forward-thinking, providing ongoing support and updates to help your dealership grow, as the industry evolves.

Watch the video below to see how real-world dealers, like you, made a successful transition to a new DMS and DMS partner.

Control Your Data with the Right DMS Partner

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Your dealership’s data is your business, literally. It’s the key to invaluable insights into your customers, your operation, and the overall performance of your dealership. When you’re in control of how you run your operation—and whom you choose to do business with—you not only save time, but you also save money. Find out why dealers like you are switching to a DMS partner with open and integrated solutions. Watch the video.

Seamless Open Integration

Are you spending money to access data you already own? It sounds wild, but certain vendors can and do charge (often hidden) fees just to access customer information. The average dealership now uses up to seven software systems to complete a sale—and that can add up over the course of a year. Most franchise dealers are paying up to $42,000 every year on integration fees, alone. * (Yowza.) A DMS partner who offers seamless integration with bi-directional data flow and third-party software and OEM integration, would speed up processes and save dealers a lot of cash.

Real-Time Insights

How you access your data is just as important as how you share it. Your data should be on demand, not waiting for you the next day after a lengthy overnight download. Your DMS partner should empower you to access your data when you want, whenever you want. With unrestricted data access, you can get up-to-the-minute insight into transactions, account balances, and dealership performances. You have the freedom to make quick, effective decisions at a moment’s notice, with every possible piece of information.

It’s your data. You should be able to access it when, and where, you need it most.

See how real-world dealers, like you, are taking control of their data with a true DMS partner in the video below. 

References

*Avg. $500/month x 7 third-party apps x 12 months = $42,000/year

 

Find a DMS Partner Invested in Your Success

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A good salesperson can earn your business. And, often, that business transaction ends at the point of sale. But a great partnership is built long after the ink dries on the contract. Your DMS partner should work hard to help you achieve success. Improving your day-to-day operations and accomplishing long-term goals is an investment in the future. You expect your technology to do a lot for your organization. It’s time to start expecting more from your partners. See why dealers like you are making the decision to switch to a partner invested in their success. Watch the video.

An Invested Partner

A great business partner should empower you to be the company you want to be. That means working with your team to ensure a seamless installation and technology migration. It means helping you find solutions to all your questions and working with your dealership to get the most out of your technology. Your DMS partner should be an invaluable resource to you, helping your team navigate industry complexities, enact operational change, and grow your business.

An Intuitive Technology

Any technology you take the time and resources to invest in should be intuitive to learn for new and experienced employees alike. It should make your operations more efficient by reducing the number of clicks to complete a task and making it easy to access information. That includes being flexible enough to integrate seamlessly with third-party systems and meet the requirements of every dealership department.

Flexible Contract Terms

Finally, your business partners should be easy to do business with. Technology providers should earn your business every month, giving you the freedom to choose and the ability to change direction at any time. That means offering flexible contract terms, not auto-renew clauses. In other words, you should be in control of the direction of your dealership, not your DMS provider.

Watch the video below to see how real-world dealers, like you, have made the transition to a DMS partner that’s invested in their success.

 

 

 

 

Unlock Your Dealership’s Profitability with Connected Technology

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When the data in your dealership doesn’t sync with the technology you’ve invested in, your staff will almost certainly struggle. Don’t settle for manual processes and broken workflows that frustrate your customers and your employees. Rather, opt for connected technologies that deliver time-saving solutions that result in higher profitability. Watch the webinar.

The fact is today’s increasingly competitive franchise dealerships must create seamless experiences that win repeat business and add additional revenue. Fortunately, connecting your service technology and DMS helps maximize efficiency and revenue while strengthening your dealership with the power of continuous, real-time data.

Utilizing and Tracking Discounts

When you combine the power of Dealertrack DMS and Xtime, you give your team the tools they need to successfully utilize and track discounts, including:

  • Dollar Discounts
  • Percentage Discounts
  • Variable/Manager Owner Discounts
  • Actual Retail Value Discounts
Tracking Your QL Effective Labor Rate

If you’re like most dealerships, your effective labor rate is probably not very good. By combining Dealertrack DMS and Xtime, you can separate mechanical repair (ML) and quick lane (QL) to:

  • Obtain Accurate Reporting
  • Manage True Effective Labor Rate (ELR)
  • Increase Warranty Rates
  • Avoid Disrupting Employee Processes

To learn more about how to unlock your dealership’s profit potential, book your personalized demo, today.

 

About the Webinar Presenter

Jade Mitchell

Jade is the Sr. Manager of Performance Management at Dealertrack DMS. He has more than two decades of experience working inside automotive dealerships. Today, he works with dealerships to maximize utilization and to drive process and profit improvement. He believes that deep-dive DMS data can have a sizable, measurable impact on dealership success.

Strategies for a DMS Switch

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Dreaming of investing in new technology to give your dealership that next-level boost over the competition? Many dealers get sold on fancy technology promises but lose sight of their goals and business needs in the process. Finding a new DMS partner is a big decision. But you can break it down into smaller, more manageable steps with the advice of Cox Automotive’s Director of Product Consulting, Josh Bickerton. Learn how to Invest in a Strategy to Overcome Inertia below and watch the full webinar to Demystify a DMS Switch when you’re ready.

Understand Your Dealership

Understanding your own dealership goes beyond the day-to-day workflows. If you’re not taking a close look at your mission statement and what sets you apart from the competition, you’re at risk of losing sight of your core values in the overwhelming decision-making process. Start here, otherwise, you’re at risk of letting technology own the decision you’re about to make.

Document Your Objectives

Fear of change can derail even the best decisions. Make sure to stay aligned as a team by writing down how well a potential provider addresses your wants and needs. Catalog each department’s unique challenges to ensure you have a clear line of sight into the issues you hope to address by a technology switch

Identify Employee Needs

Don’t ignore the fact that a new DMS will impact your current and future team members. Millennials and Gen Z now make up a significant portion of your workforce. According to a
report from cloud networking firm, HPE Aruba, 93% of surveyed employees believed their workplace would be better if their employer made greater use of technology, and 64% believed their companies will be left behind if they didn’t implement new technology. *

Overcome the Fear of Change

The natural reaction to risk is to stick with the status quo. The ‘unknown’ can be perceived as threatening and switching to a new DMS can make even the most experienced employee feel like a novice again. Will your paycheck suffer? Will there be a negative impact on the business? Investing time and effort in learning a new system (or training new employees due to turnover) is also a common fear. Will my support staff assist with the change, and could we lose our data? It would be a mistake to ignore these very real, very common fears. Leaders and decision-makers need to address and acknowledge the anxiety that comes with any technology change.

Set Expectations

Knowing that no software change will be a perfect fit is not only realistic; it is also the antidote to the fear of change. When your staff understands that there will be grace given for a learning period due to change, and expectations are managed, some of the anxiety will be released.

Expectations of Accountability

Have an agreement with your team that evaluating your new technology will be given a wholehearted effort. While many software companies may try to earn your business with shiny bells and whistles, you and your team will do your best to put in the discovery work and find a solution that meets your unique business needs.

Validate your Contract End Date (CED)

Before you make the decision to switch (or put the fear of change on the table) take a good look at your DMS vendor contract to fully understand when your contract ends. If you have ongoing 3rd-party vendor agreements, be sure to evaluate those as well.

Making a DMS switch impacts your whole dealership. From the data you use to deliver premium customer experiences, to running payroll, your DMS is the backbone of your entire business operation. But finding the right partner can empower your franchise to profitability once you’ve made the move. While it may seem overwhelming, it doesn’t have to be. Watch the on-demand webinar, Demystifying a DMS Switch: 7 Key Principles for Success.

Demystify My DMS Switch – Watch Now

 

 

 

Source: https://betanews.com/2018/06/04/technology-improves-job-satisfaction/

 

The Business Benefits of Easy-to-Use Technology

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Retail technology changes fast. As car shoppers continue to evolve their preferences, they increase their demands for dealerships to keep up. Despite the pace of change and the pressure from consumers, many dealers aren’t in a rush to refresh their old technologies—especially their Dealer Management System. After all, change is difficult and many dealership employees aren’t excited about having to learn new tools, systems, and processes.

Hanging onto old, outdated DMS platforms may be a common practice among dealerships, but it doesn’t make much business sense. When dealerships refuse to evolve, they lose ground to their competitors and they risk losing customers who expect a more modern, technology-assisted buying experience. And, with new, easy-to-learn technology tools, the cost of making a change has gone down drastically. Consider the following important impacts of implementing easy-to-learn technologies at your dealership.

Onboard New Employees Faster

Onboarding is an important process at every dealership, but the process of getting new employees up to speed can distract from revenue-generating activities. One recent study suggested that it can take up to eight months for fresh new hires to reach peak productivity. When your DMS is easy to use and easy to learn, your new hires get up to speed faster and more efficiently.

Hire For the Skills You Want

When your dealership runs on a difficult-to-learn DMS, it becomes necessary to hire employees based on their past DMS experience. In fact, candidates with prior DMS experience often edge out better candidates that don’t have a history with your difficult DMS platform. Unfortunately, eliminating impressive job candidates is not a good formula for customer satisfaction. When your DMS is easy to use and easy to learn, you can hire candidates that will fit your culture and care for your customers.

Develop Your Engaged Employees
In today’s job market, the very best employees aren’t just looking for a job. Instead, many young digital natives are looking to develop new skills while advancing their careers. To attract and retain them at your dealership, you’ll need to offer lots of opportunities for professional development. In fact, a surprising 87% of millennials listed professional development as even more important to their job search than time off and compensation. An easy-to-learn DMS offers endless opportunities for continued learning and a community they can turn to in order to develop new skills.

Technology change—especially DMS transitions—can be difficult, but holding on to old, outdated tools is harmful to customer experience and dealership profitability. An easy-to-learn DMS helps you hire better employees, onboard them more quickly, then keep them engaged with ongoing educational opportunities. Watch the video below to learn more about the business benefits of an easy-to-learn DMS.