Tag: Customer Satisfaction

Why Use An Out-of-State Reg & Title Solution?

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Your dealership’s online presence has done its job and brought in a customer from several states away who’s been looking for a vehicle of the exact make, model, trim and color that you have on your lot. The deal goes smoothly, the transaction is almost done, and now it’s registration and titling time.

Because your dealership prides itself on customer service, you look to provide all customers with a hassle-free experience that includes reg and title work that saves from a trip to the DMV. But not all states are the same when it comes to deal closing.

Let’s face it: it’s nearly impossible for back-office folks at the dealership to know the ins and outs of registration and titling for all 50 states. Among different states you’ll find a wide variety of taxes, rules for categorizing certain vehicles, inspection requirements and exemptions, and insurance regulations. Each state has its own set of required forms that often include rules about who can sign them and when.

Even if you made a dedicated effort to learn about the hundreds of rules and forms needed to cover every state, you’d find it to be a moving target as regulations change and so do forms.

So, what can you do to provide a high level of service for every customer – including registration and title – and gain the CSI scores to show for it? Many dealerships are choosing to add 50-state registration and titling solution to their back-office toolkit.

With the right technology, your dealership can be prepared to welcome customers from anywhere in the country. Be sure to look for a solution that can:

  • Guide you through the necessary registration and title steps and transactions for each deal.
  • Compare deals side by side to help customers choose the option that’s best for them.
  • Identify and provide the exact documents that each deal requires.
  • Confirm data accuracy as you go along to eliminate the need for later corrections.
  • Progress deals quickly and give you the ability to monitor their status so you’ll know when they’ve been completed.

With a reliable cross-border registration and title solution in place, you can support your dealership’s commitment to customer service while gaining efficiency for deal completion and back-office productivity.

Dealertrack RegUSA® simplifies complex out-of-state deals for customers in any state. Find out how!

3 Reasons to Prepare for Out-of-State Reg & Title Processing

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Unless your dealership is on a state line, you can probably remember a time when out-of-state deals were few and far between. The internet has changed all that. Now, your next customer might be walking in the door after a cross-country road trip or a one-way flight.

Anything that makes sales increase is great, but is your back office prepared to handle registration and title needs for these customers?

Let’s have a look at some stats every dealership needs to take to heart:

1. 71% of car shoppers search for deals online before they visit a dealership

Today’s customers are less concerned with where your dealership is located and more interested in whether you can provide the vehicle they want. The key is to be prepared for expanding your customer base – and that includes providing the same registration and titling services that local buyers enjoy.

2. Out-of-state sales have increased by 28% over the past three years

Car shoppers aren’t just browsing online – they’re visiting other states and buying there. As more tech-savvy generations become the primary base of car buyers, it’s safe to say that this trend will continue to build.

3. Customers spend an average of 3+ hours at the dealership before delivery

Three or more hours at the dealership is already a long stretch and making it longer for out-of-state buyers risks your dealership’s CSI score. It can also lead to negative online reviews that may deter future out-of-state sales.

Are you ready?

The out-of-state buyer has chosen your dealership because you have a vehicle that meets their specifications closely enough that they were willing to put in extra effort to buy it from you. Now it’s your turn to make sure you go the extra mile for them.

It’s unlikely that your back office staff is familiar with the registration and title documentation and fee structure for all 50 states, but that’s where Dealertrack RegUSA comes in. This online tool will help you find out what information is necessary to meet state requirements, accurately estimate vehicle taxes and fees, and let you review state forms with the customer while they’re still in the showroom.

To learn more about how Dealertrack RegUSA can help you increase registration and title processing efficiency for out-of-state deals, read our ebook – or request a demo.

Sources:
1. and 3.  2017 Cox Automotive Car Buyer Study
2. 2017 Cox Automotive Research, Out of State Vehicle Registration and Titling Transactions

Dealertrack and the Evolution of Digital Retailing

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Earlier this month, Cheryl Miller, Senior Vice President and General Manager of Dealertrack F&I and Titling Solutions, participated in a keynote panel at the Consumer Banking Association’s CBA Live 2019 conference. The topic was Digital Retailing Evolution: What’s NOW & What’s Next, and Cheryl shared her expertise on digital retailing in the automotive industry and how the technology is bringing lenders and dealers together.

Following are some of the subjects Cheryl addressed during the panel.

How has digital retailing evolved over the past year and where do you see it going over the next 2-3 years?

The trend is toward an end-to-end digital experience that gives car buyers the flexibility to do as much or as little of the deal online as they prefer. This opens up new worlds for dealers when it comes to buyer targeting throughout the customer lifecycle, including advertising, purchasing, servicing and financing.

For dealers and lenders alike, it’s driven by customer demand. The way consumers purchase things has changed, and customers want the car buying process to incorporate conveniences such as shopping online. Our research shows 83 percent of customers prefer to do at least one purchase step online outside of the dealership. Using a digital retailing solution can help deliver a better customer experience that’s in line with what buyers want.

This is not the only way dealers benefit from digital retailing. The traditional retail sales process takes 3 or more hours for the average dealership to complete. Completing steps of a deal online saves an average of 30 minutes. A more efficient process gets deals completed more quickly, which gives a dealership more time to serve more customers. Digital retailing solutions better connect the online to in-store shopping experience due to streamlined processes, less data re-entry and increased accuracy.

The market is growing, in large part due to demographics. By 2020, Millennials (consumers in their early twenties to late thirties) are forecast to represent 40% of car buyers. There are more than 75 million members of this tech-savvy generation, and they’re at the forefront of demand for digital retailing experiences. Eventually we expect to see the 100% digital deal where every facet is handled online. Most of today’s customers still prefer to finalize their purchase at the dealership, but each successive generation will be more comfortable with ordering a car online the way they order merchandise from Amazon.

How are dealers and lenders working together to succeed with digital retailing solutions?

Dealers see digital retailing as an opportunity to connect the online experience to the in-store experience, and ultimately as a way to increase revenue. Our 2018 Cox Automotive Lender Study revealed that 51% of dealers say it is important for lenders to offer digital contracting to complement their digital retailing workflow. Dealers select their lender pool based on rate competitiveness, turnaround time for credit application decisions, and the strength of their relationship with their finance partners. Being able to work with lenders via the same platform they use for other digital retailing functions strongly meets two of those criteria.

Dealers today suffer from margin compression, so they are constantly looking for ways to profitably structure their deals with their lender partners. Lenders should strive to bridge the gap so that dealers understand you are there as a partner and what you can bring to the table to assist on margin compression and the deal structure – at the right rate for profitability. We see that most dealers are looking for qualified customers who meet their lender requirements. Dealers are a critical part of the retail experience, often finding the best financing available with valuable incentives for their customers. We offer solutions to both dealers and lenders that are well positioned to offer consumers choices that lead to a frictionless car-buying experience.

Dealertrack and all our Cox Automotive solutions are fully committed to our vision to digitize the process to procure a vehicle “from contact to contract.” We understand dealers and lenders both play key roles in every vehicle sale that involves financing. A well-planned digital retailing solution gives both of them tools that work together seamlessly.

With 85% of all new cars sold needing to be financed, dealers and lenders do play well together. The dealer works with the lender and for them – as well as for the consumer. The dealer provides the lender an opportunity in the form of a sourced lead, the lender is retained, and they work together to sell cars, to the benefit of both organizations. Partnership here is instrumental between dealers and lenders.

Do lenders need to upgrade to digital retailing tools now or can they wait for the industry to mature?

The answer is “now.” The time for waiting is over because dealers are already engaged in some form of digital retailing – many dealers already use their website for leads, digital media/social strategies, and more. Digital retailing enables dealers to capture more opportunities. Thus, now is the time for lenders to act if you are trying to increase your partnerships with dealers and gain market share and grow originations.

The technology is in demand by dealers. Customers are demanding better service orientation and a solution more akin to other shopping experiences, like the way they buy coffee and shop for groceries and other household goods. It makes sense for lenders to put digital retailing tools in place now, even if there are certain functionalities and features that won’t be fully utilized until the industry matures further. Be ready for what is here now, and it will simply continue to grow. Be ready so you can win in the marketplace.

Disruption Today: Drive Profitability with Emerging Technology

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Based on the workshop presented at NADA 2019 by Mike Barrington, Senior VP of Retail Solutions Group Sales, Digital Retailing & Dealertrack F&I Solutions at Cox Automotive

The rate of technology change today is astounding – and the adoption rate is matching its pace. Not long ago, some of the technology we take for granted today sounded like science fiction. Today, we all carry powerful pocket computers that also happen to be phones, many of us have digital assistants that respond to spoken commands to do things like order groceries, and cars can talk and nearly drive themselves.

Consumers are already using the latest technology in every aspect of their lives. What you might think of as the “cutting edge” of technology is fast becoming the new normal.

Consumers expect their car-buying experience to be as convenient as the rest of their tech-enabled buying experiences. Unfortunately, dealers are already falling behind.

As an industry, we need to create the better, more transparent experience that consumers demand. Here are two major emerging disruptors that will impact the way dealers do business in the near future.

  1. Digital tools to enhance the consumer’s buying journey

Consumers want to be able to choose the points in which they interact with you online or in your store. Having an online presence is a given, but today you must enable the consumer to do a significant portion of their research and buying process online.

This doesn’t mean that the consumer will stop coming to your dealership.  In fact, we know that the majority of shoppers prefer to finish their transaction in the dealership.

However, we know consumers demand more digital tools than ever before. Providing those tools gives you the competitive advantage.

For example, 83% of consumers want to learn about F&I before they visit the dealer, and they are more likely to purchase products that they’ve learned about in advance.

This is a big area where dealerships are falling behind the technology curve. If you don’t have a strategy to provide digital retailing tools, you’re already at a disadvantage.

  1. Proactively communicating with customers on their devices.

Just a few years ago, consumers thought that personalization and online targeting were “creepy.” Now it’s just an expected part of business interactions.

Think about retailers like Starbucks or Amazon that not only connect online experiences to the in-store/in-person experience, but also use their consumers’ data—backed by machine learning and AI—to continually build on their previous shopping behaviors. This helps them connect shoppers with what they want, when they want it.

Essentially, marketing is now a service that efficiently helps consumers find the things they need and want. Dealers who are ahead of the curve are leveraging this technology to deliver messages to consumers with the right context:

  • The product or service that matches their needs,
  • At the time they are looking,
  • With the right information to help them make a decision about taking the next step.

They are delivering a value add, by helping the shopper find the product they need – and they will be rewarded with more traffic and sales.

What dealers can do to stay ahead

Now that you have a better understanding of some of the disrupters in our industry, let’s take another look at the some of the ways in which consumers are interacting with technology today:

  • They use an app to order their coffee.
  • They use another app to order their weekly groceries.
  • They join monthly subscription services so they can have someone shop for their clothing, makeup, pet treats, razors and more.

The trend is that consumers are using technology to save them time and get them exactly what they want. That means dealerships need to think about how they can make the current car-buying process more digital and efficient.

Here are some things we know about what your customers expect:

The role of technology

When you’re examining the technology you use in your dealership, the goal should be to make each customer’s visit shorter, more efficient and more enjoyable. Increasing internal efficiency is one way to do this, but it should be done with a focus on enabling customer relationships at each stage of the deal.

To deliver against consumer demands, you must be willing to shift your current operations, become forward-thinking about your technology stack, and build the right foundation.

You can use this period of disruption to your advantage—and remain competitive and profitable.

 

Why Each Deal Should Include Reg & Title Processing

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Every dealership is looking for ways to go the extra mile for customers. Not only do “above and beyond’ experiences improve CSI scores, they also increase customer loyalty and the likelihood of positive reviews, recommendations and referrals.

One finishing touch a dealership can provide for customers is to handle their state registration and titling process for them. Just imagine how happy your customers will be driving off in their new vehicle, secure in the knowledge that you helped them sidestep a long wait at the DMV.

Set Your Dealership Apart

Many dealerships still hesitate to take on the complexity of registration and title transactions, particularly for out-of-state customers. However, technology has advanced to the point where software solutions like Dealertrack RegUSA make cross-border and out-of-state registration simple and compliant.

Knowing that you have the potential to surprise and delight all of your customers with this final step of their car purchase, it just makes sense to include registration and titling in your deal process.

Creating Loyal Customers Helps Your Bottom Line

Providing an exemplary customer experience is valuable for much more than just CSI scores. Mid-year 2022 data from NADA shows that the average customer acquisition cost per new vehicle sold was $695. Research from John Wiley & Sons has shown that it costs ten times as much to obtain a new customer as it does to retain an existing customer.

In today’s margin-compressed reality, it’s important to handle every single customer with the utmost care. Dealerships are making good strides in getting repeat business, with a trend toward more buyers returning to dealerships where they have previous experience. Taking care of their registration and titling for customers can be the icing on the cake that builds more repeat business.

Streamline Operations and Boost Satisfaction

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Think for a moment about the interactions your dealership has with your customers. How many people really want to spend more time buying or servicing a vehicle? They want to get in, get out, and get on with their lives. But the unfortunate reality is that most customers dread the in-dealership experience. And it has more to do with the day-to-day operations of your business than you might think.

 

The Frustration of Buying a Car

In the minds of consumers, visiting a dealership isn’t far from a trip to the DMV. That’s because in-dealership inefficiencies lead to customer downtime and a prolonged sales and services process. And when customers have to wait, customers get annoyed. In fact, 41% of customers label the amount of time it takes to complete a purchase as the single most frustrating aspect of buying a car. That’s a higher level of frustration than dealing with salespeople, negotiating a deal, getting a good trade-in offer, or applying for financing.

As you might expect, customer satisfaction and the amount of time a customer spends in the dealership are closely correlated. According to an AutoTrader.com study, average customer satisfaction scores are highest when a customer spends less than an hour in the dealership. And those scores begin to fall off dramatically at the 90-minute mark, with scores dipping below the average at the 2.5-hour mark. The study also reported that every dealership analyzed failed to meet this 90-minute customer-cycle objective, regardless of the operational or sales tactics employed.

 

The Divide Between Dealers and Customers

Yes, it takes time to buy a car. But it’s obvious that there’s a real disconnect between dealers and customers about just how much time is considered acceptable. Most customers come to the dealership already having researched everything about their car of choice for weeks, even months. They want to show up long enough to sign a financing agreement, pick up their keys, and drive off the lot. In their minds, there shouldn’t be a difference between buying a car and walking into any other store to purchase a product. If inventory is available, they want to be able to buy the car and be on their way.

Dealers, on the other hand, understand that the process is more complicated. And yet, many of those complications can still be avoided. When dealerships use non-linear sales processes that involve multiple, potentially deal-breaking decision points and multiple technology systems (that don’t always play well together), tasks get duplicated, processing time increases, and customers wait.

 

A Wholesale Shift in Operations

To improve operational efficiency and improve the customer experience, dealerships need to think about people, processes, and technology as one and the same. In other words, every means available to the dealership should be used to bring about the singularly-important goal of providing a better customer experience.

Dealership and customer expectations will more closely unite when dealerships:

  • Hire, train, and retain talent with the customer experience in mind.
  • Review and improve technology and processes with the customer experience in mind.
  • Inform and incentivize customers about new and improved operational capabilities and efficiencies built with the customer experience in mind.

This wholesale shift toward an improved customer experience can begin when the customer first begins researching vehicles. By moving part of the sales process online, including online trade-in tools, F&I education and offerings, and having qualified salespeople available via chat, more decisions can be made when the customer is most interested. This also cuts down on in-dealership wait time and improves transparency.

By streamlining processes, implementing technology that simplifies operations, and emphasizing a customer-centered culture (including fostering transparency and trust), dealerships can get closer to the ideal in-and-out car-shopping experience. And eventually, dealership by dealership, sales will increase and the negative perception of the car-buying process will begin to change in the minds of consumers.

Dealertrack DMS Helps Heritage Ford Navigate Uncertain Waters of Auto Sales

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After 20 years of service in the United States Navy, Bert Hodge, general manager at Heritage Ford in Southern Indiana, understands what it takes to manage complexity and risk. As a staff analyst commanding five different warships, Hodge learned that mission success is all about communication – the ability to share information seamlessly between people, ships, and stations.

Now, with his military experience as a foundation, Hodge has helped implement a similar philosophy at Heritage, where teamwork and a focus on communication has allowed the business to navigate the complex waters of the auto sales industry.

“The sea is an unforgiving environment,” Hodge said. “Whether venturing out alone or coordinating operations between multiple ships, there is a tremendous amount of risk and complexity. There are a number of different functions that have to be performed by different individuals that have to be properly coordinated. Being able to share information seamlessly between stations is critical. Mission success is derived from the fusion of those diverse information sources.”

“I find the same to be true for dealerships,” he continued. “Our mission is to provide value that our customers seek in purchasing, maintaining, and repairing vehicles. In doing so, my staff members perform a number of different functions that require close coordination.”

To help with this mission, Hodge and Heritage Ford needed a technology that could integrate people, processes, and products. And, in researching different DMS options, Hodge found that most products were great in concept, but failed in execution. But, with Dealertrack DMS, Heritage Ford found a provider that was as committed to communication, coordination, and the success of the dealership as its team members. Dealertrack DMS has allowed Heritage to integrate a number of different industry task-related software tools. And, with its simple interface and intuitive design, it keeps employees focused on customers instead of tech problems.

“I have been very careful to choose tools that allow information to flow freely,” Hodge said. “I want my staff to focus on helping our customers, not struggling with using the DMS.”

With a commitment to ongoing communication and support from Dealertrack, Hodge knows that, even in the complex and uncertain market of auto sales, Heritage Ford will continue to gain valuable insights from its information as needs evolve.

“In the past 5 years, there has been a tremendous change in markets,” Hodge said. “Increased competition has resulted in reduced margins. If I have the correct view of the industry, the pace of change will increase. Success will continue to come from insights derived from our data,” he added. “It is vital that (we’re) not hindered by (our) DMS.”

“For me, it’s nice not to have to worry about whether or not our most foundational tool, our DMS, will keep pace … and help us navigate the changes ahead.”

To learn more about Heritage Ford’s story and the value of technology integration within a dealership, read Dealertrack’s full case study.

How to Know What Your Customers Want

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Apple founder and famous tech giant, Steve Jobs, famously said, “A lot of times, people don’t know what they want until you show it to them.” Throughout his career, he derided customer data and declined to perform market research. Many have suggested that, “Jobs was right but only in the very narrow category to which he aspired: where his products…either redefined or created product categories. That’s not the domain in which most businesses play.” It’s definitely not the domain in which car dealerships play.

Automotive retail is a mature, highly competitive industry where careful attention to customer insights can mean the difference between success and failure. But how can dealerships find and use those insights? Not surprisingly, it starts with their own data.

 

Connect Online to In-Store

It should come as no surprise that the process of understanding what a customer wants actually begins before that customer visits your dealership. Today, most car buyers are beginning their purchase processes online—researching specific models, selecting features, and comparing prices. It’s now possible—and imperative—to greet a customer on the lot and to pick up exactly where they left off on your digital retailing-enabled dealership website. Examining a customer’s own research and preparation is the very best way to understand exactly what they want.

 

Learn From Past Behavior

Most dealerships are now keeping a central record for each customer, with the help of sophisticated DMS and CRM systems. Those records include a history of past purchases and past trips to the service lane. When a customer visits your lot, don’t treat them as if they’ve never been into your showroom before. Reference, acknowledge, and discuss their current and past vehicles to narrow in on what they may be trying to accomplish. Make an effort to surmise what the customer might be interested in based on their last three or four transactions.

 

See Things On the Spot

Of course, it does you very little good to make those connections during post-deal analysis. You need to see and understand customer behaviors, trends, and tendencies during an actual deal. That’s why it’s so important to use a DMS that provides real-time data with remote- and mobile-access. By incorporating up-to-the-minute insights into each transaction, you can make decisions on the spot, whether you’re behind a desk or out on the lot.

Dealerships can’t afford to ignore customer behaviors and dealership data. To succeed in this mature and competitive industry, they must leverage technology to access and analyze customer information, then put it into action. With the right systems in place, dealerships can leverage online activities, learn from past behaviors, and access customer information on the spot. Leveraging that data may not help dealers to redefine the entire world of technology, but it might just help them run a more profitable dealership.

 

To learn more about how a modern DMS can help you, download our guide 5 Ways a Modular DMS Platform Opens New Possibilities for Profit