Category: Trends & Insights

Top Secrets of Thriving Dealerships

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Mastering the changing market has become one of the most important components of thriving dealerships to date. As new and unexpected challenges arise, the ability to adapt, pivot, and thrive in the face of adversity not only sets your business up for survival—it gives you a serious advantage over the competition. But what (exactly) is it about those dealers who always seem to thrive? While others merely survive, they seem to come out better than before. We heard from a dealership that fits that description in a recent episode of Dealer Advantage, in partnership with CBT News. In the interview, SVP of Dealer Software Solutions for Cox Automotive, Lori Wittman, digs deep to uncover the three key secrets that make Byers Automotive Group successful.

Secret 1: Find a DMS Partner Who Helps with Training

The team at Byers, and especially Linda Crossman, Director of Systems Operations and Training, investing in their staff is a top priority. And it starts from day one. “For new hires, we use Dealertrack DMS and VinSolutions ‘new hire’ training. I make sure everybody gets the information that they need. The videos that are supplied online through Dealertrack are awesome,” notes Crossman. And that’s the secret: Crossman and her team know the value of leveraging their technology provider’s resources and assets when it comes to getting each and every team member on track. And Wittman notes, in a recent post, when it comes to thriving dealerships, training can make, or break, your odds of success. “On its most basic level, this common thriver behavior includes cross-training employees and teaching them how to use new technologies,” Wittman writes. “In fact, according to the “How to Thrive” study, almost half (48%) of thrivers provide opportunities for cross-training while only 27% of static dealerships do the same.”

Secret 2: Use Technology that Delivers the Data

Data continuity—or how well your customer’s information travels across key technologies—helps thriving dealerships operate at a higher level than their peers. As Crossman explains, “The DMS is the nucleus of the whole operation.” As access to data becomes more restricted, and as dealerships become more optimized to deliver online services, data is quickly becoming the currency of successful businesses. According to the “How to Thrive” report, 86% of dealers agree that having accurate and complete data is a priority at their dealership. Crossman explains, “Everything coming in, passing through, moving onto the next phase…it’s important that (the DMS) is able to capture all of that information. The DMS is able to help you make that decision on whether you want to take that extra step with your customer. We depend on it a lot.”

“The DMS is the nucleus of the whole operation.” – Linda Crossman, Director of Systems Operations and Training at Byers Automotive

Secret 3: Embrace Change to Level-up

Dealers are no stranger to change in the automotive industry. Yet, as Crossman shares, change can be a big hurdle for some. “We have some salespeople who have not adapted. The ones who have are watching their peers become very successful.” New technology, tools, and processes are simply a must for thriving dealerships, however. This is why the team at Byers partnered with technology vendors who take on some of the change management workloads for them. “We have what called Performance Managers. So when we want to start a new process or make a decision about handling something new a new challenge, we have a Performance Manager for Dealertrack DMS, Xtime, and VinSolutions that helps us move through that process.” With a minimum of ten years experience, Performance Managers partner with dealers to get more from their technology, master skills training, and set goals and initiatives for the business.

Thriving dealers know: if you’re going to step up and move to the next level, you’ll need the right tools, training, and support in place to set your people up for success along the way. And, you can’t be afraid of change. When it comes to stepping up and moving to the next level, the team at Byers leveraged the support of their vendors while taking the time to listen to their customers. They, and other thriving businesses, have proven that tough times tend to make tough dealers even stronger.

Check out the interview with Byers Automotive below and read more about the Data Behind Thriving Dealerships with Lori Wittman.

Support for the Road Ahead

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The industry-wide move toward offering a hybrid online/in-store car buying experience has been a resounding success. New- and used-vehicle buyers are reporting that the process takes less time and is more efficient than before, and customer satisfaction is at an all-time high. But that doesn’t mean change isn’t still scary.

As with anything new, you’re bound to have questions. Bumps in the road, growing pains, and (just maybe) brief moments of existential dread and panic tend to happen whenever you flip the switch.

We’ve all been there. That’s why having a partner that prioritizes innovative customer support and industry-leading client services is so pivotal. When you’re on the road to something bigger, you shouldn’t have to go there alone.

A Net(work) Benefit to Every Dealer

Automotive sales is a competitive, cutthroat industry, but when it comes to navigating the complexities of technology and transitioning to new sales processes, working together benefits every dealer individually (and the industry as a whole).

Partnering with a DMS provider that brings dealers together through a dedicated platform to freely express their needs and learn together any time of day or night, opens a door to a whole new level of transparency, community, and industry progress.

As your dealership adapts to the changing automotive sales landscape, take advantage of every resource available to you (including those in previously unlikely places) to find new ways to leverage your technology and make online car buying more seamless and profitable.

Learning, Together

Does your DMS provider give you the answers you need to improve your customers’ buying experience? Or, are you on your own to figure it out? Do you dread reaching out via phone call to customer support, when it would be easier to power through and find a workaround on your own?

Having a partner in your corner means knowing your vendor has your back in the event that something goes awry. It also means that your skills and expertise are valuable to your fellow peers. Your business is part of the reason that the entire automotive industry continually improves for buyers. And we’re leveling up, together. This is a major leap forward in automotive retail. It’s one that requires coordination, transparency, and total investment from your technology partners. With a community forum, live case updates, and online training and courses, DMS360 offers dealership staff an online resource that they can personally interact with, contribute to, and incorporate into their learning programs.

Seek out a DMS provider that helps you learn from what other dealers have already gone through. After all, time is money, and a true technology partner can help you leverage every resource available to get your dealership’s new digital processes up in running as quickly as possible.

Learn how next-level support leads to profitability for dealers by downloading The Dealer’s Guide for Maximizing Profitability.

 

Leadership Lessons: Partners Make a Difference

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If you were looking for a quick fix to maintain dealership profitability in the last eighteen months, I hope that you’ll share it. That’s because, in my career of thirty-plus years in retail automotive (most as a GM), I haven’t found the magic bullet. As the Director of Performance Management for Dealertrack DMS, it’s my experience that it takes a specific combination of factors to help our dealer partners become more profitable. It’s not rocket science, per se. And it’s not magic either. It’s more like common sense combined with the human touch. And, when faced with economic uncertainty, it’s the right tools, processes, and partner insights that make the most difference. If you watched our webinar recently, I went into detail—based on key research and learnings from Cox Automotive on this topic. (You can watch it here.)

Technology Tools Improve Process

Better tools do make a difference. As rapid adoption of digital technology in retail automotive takes place across the board, we are seeing massive improvements in customer satisfaction across the board. According to the 2020 Cox Auto Car Buying Journey Study, the vehicle buying process is becoming more efficient and satisfaction levels are increasing. When I looked at the data, I was surprised to learn how much the right tools impacted the buying process for our partners. Those defined as “Heavy Digital” buyers were cutting forty minutes off their time at the dealership. That’s truly significant, especially when you consider that, often, General Managers and Principal Owners view their software (like the Dealer Management System) as more of a utility than a profit driver!

A Partner in Your Corner

Technology tools are changing the way dealers do business. And new processes are being implemented to meet the needs of consumers as they change rapidly. But, the number one request I continue to get year after year from our clients is simply…a go-to person. A person they can call when an entirely new process needs to be rolled out. Or, when a new sales manager comes on board and needs to be introduced to the DMS. As that relationship takes hold, and trust is established, the true value of our team, Performance Management, really begins to shine. That’s because our team of committed professionals—each with a minimum of ten years in upper-level retail automotive management—actively helps you achieve your business objectives. Planning, strategizing, and attaining your quarterly projected goals are their main priorities. They know the DMS inside and out, and they can help you pull targeted data from this single source of data for all of your reporting needs. With that kind of support in your corner, achieving your ambitious goals shouldn’t feel like wishful thinking. It should feel like a must-have.

Maximizing your dealership’s profit potential should be your goal. It’s ours. Watch the full webinar here to learn more.

Want Higher Profits? Don’t Overlook Your DMS.

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Dealers purchase technology to increase their profitability. That makes sense. After all, you wouldn’t invest in new digital steps if they cost more money than they were worth. And, if you’re like a lot of dealers in the last year, you’ve added at least one new technology to your business. According to the 2020 Digitization End-to-End Study from Cox Automotive, 69% of franchise dealers did just that. And it seems to be paying off. Overall buyer satisfaction rates hit an all-time high of 72% recently. Yet, dealers tend to overlook the major role their DMS technology plays in driving profit and saving money. The reason? It’s not always obvious…at first.

Profit Driver vs. Utility

According to Randy Wilson, director of Performance Management at Dealertrack, “A DMS is required to function.” Simply put, most dealers tend to view the Dealer Management System as a utility—not a profit driver. “But,” he emphasizes, “it’s critical to the profitability of today’s new digitized landscape. Your DMS holds much of the data required to run payroll, for example.” You may not have considered your DMS as much more than a utility running in the background for the past twelve months. But, while you were working on navigating the changes needed to adapt to a more digitized landscape, your DMS was likely feeding each new system the data needed to fully function. Businesses have been busy scaling up technology like never before in the wake of lockdowns, furloughs, and new social norms. In the same 2020 Cox Automotive Study referenced above, 84% of franchise dealers expected to increase online sales in 2021. With so much rich data being delivered to all the major departments of your business, a DMS that could leverage the right data, at the right time, would set up any dealer for success. (And a failure to do so would lead to the opposite.)

More Than Money

You may have spent the last year increasing your digital reach to find the right customer and match them with the right car. But, having the wrong technology can cost you more than just money. Many departments within your dealership operate almost independently from each other. Escaping the siloed nature of our industry may not be possible, but one thing is certain: everyone is impacted by the DMS. Buyers may have changed the way they interact with your dealership, but speed and efficiency are still king. The ability to deliver a superior experience whether in-person, online, or a hybrid of the two will rely heavily on your team’s operational efficiency. Stubborn and complicated interfaces, workflows that create manual re-entry of data, and systems that don’t communicate across departments can hinder your success. All data begins and ends with your DMS. A failure to optimize can cost you in team performance, turnover, and time.

Sneaky Fees Hurt Where it Counts

Technology can connect your business to more data, more customers, and more profit potential. But at the end of the billing cycle, the growth you had expected may come up short. Was it margin compression or something more sinister? Sneaky fees may be hiding in plain sight—and they’re easy to miss. With the average dealership transaction requiring up to 7 technology systems to complete, integration fees could be driving up the cost of doing business. When your DMS provider treats each third-party vendor you work with like a sales opportunity, they’re able to charge exorbitant fees against you. And it adds up to the tune of about $42,000 every year! That’s according to a Cox Auto Community Poll from 2017, which means, those fees are likely higher now. New restrictions on first-party data are going to up the ante on your DMS provider’s data access fees. This means that the true cost of DMS technology depends on how open and transparent your DMS partner chooses to be.

Ultimately, the technology driving your dealership should deliver better business decisions. It should reduce backlogs of old data, manual re-entry, and clumsy reporting that hinders your operations. And, it shouldn’t charge exorbitant or hidden fees. Finding the right partner is more important than ever. Your profitability depends on it.

Looking for an end-to-end software solution that streamlines operations and drives profitability? Speak with the team at Dealertrack DMS at Dealertrack.com/DMS.

 

A version of this article originally appeared on Wards Auto here.

A DMS Designed to Work Well With Others

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Technology driving franchise dealerships is more connected, more powerful, and faster than ever. As you strive to meet the needs of your customers (two out of three buyers surveyed by Cox Automotive want to complete 100% of the car buying process online¹), digital retailing has likely become your new go-to strategy. And with that new digital strategy, you’re likely rolling out new tools and tech. So, what do you do when your Dealer Management System (DMS) doesn’t work well with your new technology suite? When it comes to working well with others—having a DMS that is compatible by design is paramount. That’s what our dealer partners are saying.

Come Together, Right Now

“We are finally gonna go mobile!” For Tom Wood Auto Group, going mobile was the next logical step to delivering better service options, even before the events of 2020 struck. “With the new Dealertrack DMS system and the integration of xtime, our appointments, our walkarounds—all those systems—are right here,” explains Bill Demaree, Director of Fixed Operations for the auto group. Since the average dealer uses around seven different technology systems each time they make a sale², driving up the hidden cost of integration fees, Dealertrack’s open-source technology is uniquely designed to reduce fees and hidden costs that third parties tack on. And, since it’s backed by Cox Automotive, Dealertrack DMS already works with the family of Cox products that Tom Wood Auto Group uses. As Chad Kirchhoff, Director of Operations for the auto group explained, “What I like best is, it integrates with all the other Cox Automotive products that we use. We have Dealer.com, we have VinSolutions, we have vAuto…now they integrate seamlessly behind the scenes so we won’t have the ‘back and forth’ between the DMS and a third party system.” As the demand for more digital technology increases, a DMS that works well with others is highly suited for the job.

New Technology, Familiar Challenges

The process for selling and servicing cars may look different than a year ago, but your operation still faces the same challenges like hiring hard-to-fill roles and managing month-end. Dealertrack DMS now partners with best-in-class technology leaders to deliver integrated solutions. By seamlessly unlocking the data within your dealership, these offerings are able to provide powerful insights and address real challenges like turnover. For one dealer, Budd Baer Auto Group, connecting their DMS to Integrated Payroll, turned a mostly manual month-end payroll process into a point-and-click operation. “If I had to guess, we won back three to four labor days in a month,” explains Bryan Baer, General Manager.

A DMS, by design, simply must get along with your dealership. As the primary technology that fuels your operations, business ledger, service department, and more, a DMS touches multiple teams and departments creating either roadblocks or efficient workflows that result in accountable time- and cost-savings. Don’t just take our word for it, though…

The technology at the center of your business can deliver the unexpected. See what people are saying.

Sources:
¹2020 Cox Automotive Dealer Sentiment Survey
²2017 Cox Automotive Community Poll (small base)

A version of this article originally appeared on Wards Auto here.

Does Your DMS Pass The Profitability Test?

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Does your DMS pass the Profitability Test? It’s time to find out. In a year when people spent less time at your dealership, customer satisfaction also reached an all-time high according to Cox Automotive research. While the reasons for staying home were beyond your control, the ability to deliver top-notch service was in your court. But there’s more to it…

If you have big profit goals for next year, you need to consider the role your DMS partner plays in your success.

It’s time to take stock in your dealership’s biggest, and most critical, digital asset—your DMS. The Dealer Management System is the source of truth for data. All systems pull data from it, and all data points back to the DMS. While many dealers tend to overlook their DMS as merely a utility, it’s actually a critical profit driver. Put your DMS to the test—The Profitability Test—below. If your DMS fails to meet the following six criteria in our list, you should ask yourself, “Why not?”

1. Performance Management

Does your DMS partner show up for you and your team each time you implement new technology? Before your dealership ventures any further into the hybrid online/in-store territory, or adopts any more technology your staff will need to learn, make certain you have a trusted partner who knows a thing or two about working in automotive. If your DMS provider has left your lot before the ink has dried on your contract, you may want to reconsider your relationship. Highly skilled Performance Managers take on change management for your teams. Plus, they help you achieve business objectives and ensure profitability long-term.

 

2. State-of-the-Art Support

Does your DMS partner show up when things go wrong? Implementing new technology can be scary. If something ever goes wrong, how confident are you that your DMS provider is available to help? Questions, concerns, and fixes that can be overcome through a variety of channels—such as online community forums, chat, and transparent service tickets—keep business running. Beyond the generic ‘bump in the road,’ working with peer groups to discover how best to solve key customer issues, work with OEMs, and overcome obstacles that may improve your staff’s workflows allows new and veteran employees to contribute their knowledge to the greater good.

3. Retaining Top Talent

Does your DMS provide better workflows that improve the way your team functions? The war for talent in our industry is ongoing. Make sure your DMS technology isn’t slowing down your team’s ability to fulfill their assigned roles. The ability to access better customer info ultimately results in a better customer experience. And, removing complicated interfaces, multiple logins, and redundant data entry, allows your staff to thrive in an environment where they can provide better service.

4. Optimize Efficiency

Does your DMS make your dealership processes more efficient? Your DMS isn’t just another expense. It should be an invaluable asset, enabling you to sell more cars, drive profits, and facilitate the kind of buying experience your customers expect. With the right DMS technology, your dealership can facilitate an intuitive, customer-focused car selling experience in a new age of online sales. By integrating intuitively with other dealership technologies (with information that’s shared between platforms), your DMS can give customers a more complete shopping experience, while also eliminating the extra time and hassle involved in trying to coordinate disparate, disconnected systems.

 

5. Prioritize Integrations

Does your DMS allow you to work with third-party vendors without overcharging fees? Real time, bidirectional technology integrations enable a seamless online to in-store buying experience and allow you to work with the providers and technologies you want. And with the average dealership using seven different technology systems to complete a transaction, make sure your DMS technology isn’t charging hidden integration fees.

6. Your Right to Access Your Data

Does your DMS provide access to your critical data and insights when and where you need them? Data optimization is a critical component of your business. Without it, your ability to create a streamlined and efficient online (or in-person) experience suffers. Consumer data should always be secure, no matter where it is stored. But, your dealership should have the right to full ownership and access of the data. And costs associated with the data should be 100 transparent.

Ready to dive deeper into the why’s and how’s of DMS profitability? Download your own copy of The Dealer’s Guide for Maximizing Profitability with the Right DMS Partner, today. You’ll uncover insights from critical research conducted that shows how real dealers, like you, are optimizing efficiencies and leveraging their DMS partners to make more money.

 

 

 

Your DMS is a Profit-driver. Not a Utility.

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I’ve had the privilege to listen to Dealer Advisory Boards and other groups who share their feedback on the technology used to run their business in my career, and often, it’s not always good. It’s not always bad, however. In the last year, despite an economic downturn, the car buying process has largely improved. With the rapid rise of online shopping, buyer satisfaction rates are up, year-over-year, to 72%. That’s remarkable.

It’s exciting when new technology helps your customers find what they’re looking for faster. Everyone is happier. Business gets better. But, without a partner in your corner, reaching profitability becomes a constant struggle. Dealers often view their DMS as a utility. I’m here to tell you that your DMS, in most cases, is an untapped resource. With the rapid rise of digital technology, process, and data, having the right DMS partner is a crucial component of maximizing your profit potential.

No Slowing Down

For the most part, dealers don’t see their Dealer Management technology as a profit-driver. A DMS is required to function. Your DMS holds much of the data required to run payroll, for example. But it’s critical to the profitability of today’s new digitized landscape. For one thing, dealers are scaling up their technology like never before, and they’re not slowing down. According to a report, 84% of franchise dealers expect to increase sales in 2021. With so much rich data being delivered to all the major departments of your business, a DMS that could leverage the right data, at the right time, would set up any dealer for success. (And a failure to do so would lead to the opposite.)

A DMS Partner (Not a Vendor)

If you happened to catch Tracy Fred, Vice President of Dealer Sales and Service Solutions for Cox Automotive in this recent interview, she put it bluntly. “With the convergence of technology, processes and data, dealers are left to figure it out on their own in most cases. It’s difficult to do that in a silo,” she said. I agree.

The more data that flows through your auto group, the better. Right? Not necessarily. Better insights into the data you collect, combined with newer processes to improve the way your team operates are key. But, there’s still a piece missing. As Tracy Fred points out, “You need people who can help you connect those three things. That’s why Dealertrack has a team of Performance Managers.” That’s where my team comes in.

With a minimum of ten years of dealer management experience, a Performance Manager is a dedicated resource who ensures that our partners are leveraging the software we supply to its fullest potential. Training, reporting, goal-setting and analytics are also part of the role. It’s not a sales position, it’s a business partner who ensures your dealership performs with the tools we provide.

Efficiency is Key

More of the buying process has moved online. But the idea that buyers are forgoing any interaction with your sales team is sort of a misunderstanding. While it’s true that heavy digital users have reduced their time at the dealership by up to 40 minutes, in one report, they still visit. Some interactions will be 100% virtual. Others will take place in the showroom or the service center. Optimizing efficiency is key. And the way to do that is by streamlining your workflows, reducing the friction points your staff encounters when switching from disparate software systems that enable transactions and when pulling valuable data.

Change Management Partners

New technology and software can be disruptive to your staff’s workflows upon installation. In fact, Change Management is one of the top fears holding dealers back when considering a technology switch. The dealer principal owners I’ve worked with almost always have a few key “champions” within their auto group willing to embrace new technology…and also one or two detractors who are less than excited. When choosing a new technology vendor, it’s important to find a partner willing to take some of that burden off of your plate. Again, the Performance Managers can help get every staff member on-track, from each location, so that each of your locations is functioning on the same level upon launch.

Ongoing Support

Signing a new partner and launching a new DMS is a big endeavor. But, dealership staff tends to turnover frequently. So what are dealers supposed to do each time they bring new hires onboard and their vendors are long gone? In general, dealers do a good job of hiring the right staff. Your sales managers and service pros already know how to do their jobs (or you wouldn’t have hired them). But if your technology stands in the way of letting them get to work, then it’s on us to bring them up-to-speed. If you don’t have a partner who is staffed and dedicated to training your team—and fast—then you might want to reconsider your contract. Technology changes constantly, and it’s on us to ensure our dealer partners are getting the most out of their tools.

Finally, Is Your Tech Helping or Hindering Sales?

Ultimately, the technology driving your data should deliver better business decisions. It should reduce backlogs of old data, manual re-entry, and clumsy reporting that hinders your operations. And, it should drive profitability. If it isn’t helping you make more money, it’s helping you lose money. Having a business partner with real dealership experience, who can hold your team to critical reporting and key metrics that deliver results, while keeping your staff up-to-speed is more than just a utility. It’s a partnership.

Discover more insights and recent trends in Randy’s upcoming webinar, 6 Ways Your DMS Can Maximize Your Profit Potential. Registration is open now—Sign Up Today.

 

Ask the Experts: Driving the Diversity Initiative in Your Dealership

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The automotive industry has a diversity problem. This probably isn’t news to most dealer owners. Although, it might be news that things haven’t gotten better since we last checked. In fact, only 6% of dealerships are owned by minorities and only 19% of traditional, new-car dealership employees are women. These uncomfortable figures are hard to hear. But, it’s important to recognize where our industry is coming up short. For one thing, a lack of diversity can diminish your brand’s reputation leading to lost sales and a lack of qualified employee candidates. After all, more than half of millennial job seekers take your brand’s reputation into consideration before applying. Beyond that, however, a lack of diversity also turns away qualified buyers, creates a poor customer experience, and will cost your dealership. Change doesn’t always happen overnight, but there are actionable steps you can take right now to drive the diversity initiative within your business. We reached out to the experts at Hireology, We turned to the experts at Hireology, the hiring and HR experts, to learn more:

Make the Case to Management

Your upper-level management team needs to be aligned on the importance of diversity and inclusion in the workplace. So show your investors and leadership team that a diverse staff is a non-negotiable. Use data to make your points stick, like an inclusive culture results in a team that’s twice as likely to meet or exceed financial targets, six times as likely to be innovative and agile, and eight times more likely to achieve better business outcomes.

Consciously Recruit

Hiring efforts can’t be inclusive without actively working to make it so, because every single individual has unconscious biases that can influence their decisions and judgements. That means you and your team should put in work to attract, hire, and retain diverse individuals. You can do this in a variety of ways, like writing nondiscriminatory and gender neutral job descriptions, ask all interviewees for a particular position the same questions, and make your hiring decisions on role requirements over “culture fit”.

Check Your Company Culture

You won’t be able to attract or retain diverse employees with a toxic culture, so evaluate your current work environment and make changes where necessary. Establishing an employee value proposition can help you determine all the reasons employees would want to work at your dealership, and doing some competitive research can show you where your gaps or shortcomings lie.

Additionally, requesting employee feedback through an employee satisfaction survey can give you incredible insight into whether or not your team feels like your dealership is an inclusive place to work.

You can even create an inclusion council to help set goals around hiring, plan company events, and provide a space for open communication. At Hireology, our Diversity, Equity and Inclusion Council meets once a week to collaborate on company events, discuss real-time worldly issues, and all-in-all create a safe and welcoming workplace.

Promote From Within

When it comes to hiring for upper-level positions, you should always first look to your internal staff. Not only does it help with recruitment to show applicants that they have real growth opportunities, it also builds internal morale and motivates your employees to do their best work. Highlight possible career paths on your career site, and share testimonials from employees that have had successful career opportunities within your company to spread awareness to your candidates and employees alike.

Be “In the Know”

The events of the past year have had dramatic and lasting effects on many individuals. From the devastating impact of the pandemic, to the social injustices that continue to occur, your team is dealing with a lot. As a leader, it’s important that you recognize these events and offer your team time to process and heal. Whether that’s done on a company-wide level, or as a message cascaded down from managers, it’s important that your employees feel that they are valued and cared for, especially during tough times.

 

Discover more valuable tips on building a better work environment from the 9 Keys for Hiring & Retaining Staff.
TO LEARN MORE FROM THE EXPERTS AT HIREOLOGY, VISIT THEIR WEBSITE HERE.

 

Sources:

https://www.autonews.com/article/20170206/RETAIL07/302069958/building-a-diverse-staff-requires-a-dealer-push
https://www.wardsauto.com/nada-convention-and-exposition/dealers-hiring-more-millennials-struggling-retain-them

Digital Technology Ushers in New Level of Partnerships

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According to buyer sentiment, digital adoption in the auto industry is here to stay. It’s not just that dealers have adapted to new norms and implemented new digitization tactics. Although, they are. (And at record pace!) According to the 2020 Digitization End-to-End Retail Study from Cox Automotive, 69% of franchise dealers now boast at least one new digital step to their buying process such as test drive home delivery, purchased home delivery, and online credit apps. It’s also due to overall record buyer satisfaction rates—72% at recent count.

With so many changes taking place, who can dealers turn to for guidance and accountability? For the following dealerships, finding the right Dealer Management System to drive better efficiency across the entire organization was the first step. The second, was finding a true partner—not just a vendor—they could trust.

A Vital Business Partner

For Downtown Auto Group, finding the right Dealer Management System (DMS) was a process that spanned over 18 years. In most cases, what felt like the right solution ended up being more of a burden. However, Dealer Principal Matt Garner, calls their current DMS a “no brainer.” Garner specifically selected it for its intuitive nature and simple integration with other systems. But, more than anything else, Garner and the team benefit from the expertise of their Performance Manager.

“A DMS is such a critical part of the dealership, and choosing Dealertrack DMS was a no brainer… But the number one thing for me, hands down, is the fact that Dealertrack DMS comes with a Performance Manager,” explains Garner. With Performance Management, Garner has a dedicated industry veteran available to help his dealership capitalize on new growth opportunities. And with the roll out of new digital technologies, the auto group also has a resource to ensure everyone gets the most from their technology.

Read their story here.

“A DMS is such a critical part of the dealership, and choosing Dealertrack DMS was a no brainer… But the number one thing for me, hands down, is the fact that Dealertrack DMS comes with a Performance Manager.” — Matt Garner Dealer Principal, Downtown Auto Group

A Partnership Built on Respect

For the service center at Lawton Kia, finding the right provider to meet the needs of their state-of-the-art facility would require more than just top-tier technology. The dealer group prides itself on delivering no-nonsense experience. And that’s exactly what they were looking for from their next DMS partner. Lawton Kia soon discovered that the right DMS was more than just an expense—it was a profit-driver. “We love having our Dealertrack DMS Performance Manager. He brings a lot of value to the table—from real-world experience and his ability to think outside the box, to helping us with campaigns, finding gains, and reviewing analytics,” explains Service Manager Frank Seitz. “He helps us strategize how to capitalize on more opportunities and bring us more profit.”

Read their story here. 

The right partner should do more for your dealership than hand over a contract. With Performance Management, data-driven insights, and streamlined workflows that integrate with technology at your dealership, finding the right DMS partner can optimize your entire business. Learn more.

Measure What Matters: Tracking Employee Statistics

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You probably know how many cars are on your lot right now (or at least a good idea, we hope). Your accounting manager tracks payroll down to the minute. And you use smart data to gain insights into profitability from dashboards and reports. But, you still have a problem—a people problem. With an average dealership turnover rate of 46% for employees and 80% for salespeople, the industry needs to get better at tracking employee statistics.

Calculating the True Cost of Turnover

Your managers know turnover hurts. The best way to combat this key issue and win back the losses to your budget is to formulate a smart strategy. Calculating the true cost of employee turnover requires measuring more than just lost wages. Here are several key metrics to monitor:

  • Unemployment Compensation and Exit Interview Fees – If your dealership expects to spend money paying furlough fees, unemployment, and other costs, these should be included in your metrics.
  • Replacement Costs to Advertise Open Positions – Pre-employment screening and money lost during downtown are often hard to estimate. Yet, dealers have reported spending up to $10,000 on resources like advertising, interviewing, and recruitment.
  • Training New Labor – Your dealership may require service technicians to obtain costly certifications setting you back thousands of dollars like the ones offered by the National Institute for Automotive Service Excellence.
  • The Productivity Gap – It may feel impossible to measure a loss to your team’s productivity or morale. However, studies show employees reach full productivity after three years on the job.

It’s Not All Doom And Gloom

Your dealership has already been through a lot this past year. With rapid adoption of digital tools, shifting buyer habits, and an uncertain economic market, you’ve made fast-changes to keep up. Change is a constant in your line of work. And, almost any issue is solvable—as long as you measure it.

93% of employees polled believe their workplace would be better if the had access to better technology.

Here are the often overlooked statistics you should be tracking:

  1. Employee Satisfaction and Happiness – A happy team works harder and sticks around longer. Measuring employee satisfaction is the first thing you and your managers should monitor to improve retention. Hindsight is 2020, but catching a problem before it occurs is even better!
  2. Voluntary Turnover Rate – Tracking how often your staff leaves for greener pastures over time will give you a benchmark to help establish a normal level of tenure at your dealership. It can also signal a problem (if this number suddenly jumps) that something isn’t going well.
  3. Involuntary Turnover Rate – Layoffs are extremely unfortunate. Your hiring brand suffers over time, and you could earn a reputation as a poor employer. Tracking this metric could indicate an HR issue, like a mismatch between skills and job description.
  4. Retention Rate by Department and Manager – There’s a saying that people don’t leave bad jobs, they leave bad managers. You may want to invest in manager training and development if you’re seeing this metric spike.
  5. Training Expenses per Employee – Could the wrong technology be impacting your turnover? 93% of employees polled believe their workplace would be better if the had access to better technology.

When you measure what matters, you arm yourself with the data to battle the problem. Your dealership can reduce turnover over time. This industry-wide issue has proven resilient over time. But, so has your dealership. Discover new research and key insights in the guide, 9 Ways to Reduce Turnover and Improve Retention: A Dealer Principal’s Guide to Hiring and Retaining Talent.