Tag: DMS

Technology Without Teamwork Hurts Where it Counts

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A lack of teamwork hurts where it counts. So, who’s counting? The average dealership invests significant dollars in technology every year. If you’re not sure if you’re overspending, chances are you haven’t fully calculated the return on investment (ROI) of your purchases. And many dealerships are simply doing their best to make informed decisions only to be left high and dry by vendors looking to turn a quick profit. Don’t get left high and dry – demand better support from:

Your Vendors

When it comes to selecting a vendor to power your dealership make sure you treat any contract or deal like a true business partnership. Before you sign anything, ask yourself the same questions you would if you were going into business together—because you are—and it could cost you time and money to start over if the partnership doesn’t work out. Does this vendor have a philosophy on doing business? Do they have a plan for success? And do you agree with it? How do they define success? If their definition of success is not about making your business look good, it’s time to move on.

Where it counts: Most dealerships use up to seven software systems to run their store. With seven integrations and average monthly fees of $500 each, dealers are spending $3,500 a month to access their own data. That’s $42,000 a year! (Click here to find out how much you’re paying.)

Your Team

We’re all in the same ship…but is everyone rowing in the same direction? Has everyone on your staff accepted your company’s mission, and are they optimistic about adopting and learning the new technology you’re installing? Could this become part of your career development trajectory to help your team grow into their roles?

Where it counts: It’s OK if your DMS is new to your team—not everyone has to be an expert right away. But your DMS should be easy enough to learn that it’s not driving away potential team members and job candidates. According to the 2018 NADA Dealership Workforce Study, the turnover rate for the automotive industry is 43%. Hiring and retaining team members is extremely costly. If your technology is driving away employees, you’ve got a technology problem and a money problem.

Your Resources

There’s nothing worse than signing a contract, walking away, and getting left high-and-dry without any support. You’ve already invested a lot of money into a new system, and now you’re supposed to become a subject matter expert and trainer to the rest of your dealership, too? Does your new partner offer a peer-to-peer community, training tools, and learning support? When does this start? Try to find a vendor who supports a culture of learning to the community before you even sign a deal, like the NADA Professional Series, or other industry conferences and expos. Your ongoing success depends on continued communication, support, and training from your vendors because technology continues to adapt and adjust every day.

Where it counts: In this Cox Automotive 2018 Service Industry Study, only 54% of new hires receive enough training prior to beginning work. Feeling undertrained can lead to higher turnover and abandonment of technology tools.

It doesn’t have to be this way. Technology tools, platforms, and systems are absolutely integral in today’s digitally connected auto dealerships. But, you can make an informed decision and partner with a provider who has your best interests at heart, provides better resources for continued use and development, and empowers your team to be their best.

Ready to improve the ROI of your technology? Get the Auto Dealers’ ROI Guide here.

Controllers: Meet Challenges & Share Advice

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What does it take to tackle the daily challenges of running an automotive dealership?

Controllers work in a complex role. They’re responsible for training and keeping teams of employees—with varying levels of experience—up-to-speed on complicated regulations, adjusting hiring practices to retain talented employees, and building a family culture in the process. It’s a role that requires experience that goes beyond the job description. Dealertrack DMS has found the best way to grow our knowledge is to do more listening and learning from these experts—and here’s what you had to say:

On building partnerships with your DMS provider…

“Get an answer and don’t be embarrassed about asking the question…at least one person needs to have a complete understanding and grasp of the DMS software and be able to explain it to other employees.” – Reid Williams, Bill Macintyre Chevrolet Buick

On building culture…

“I’m probably at work more Monday through Friday, so that’s really my family…We’re still building a team, but that really did a lot for me; just making it feel like I’m not a number and I’m not somebody who is easily replaceable.” – Liz Nueman, Finance Controller at Audi Kirkwood

On training the team…

“You want to make sure the training [aligns with the] actual culture of the dealership and not just what the manufacturer checks off.” – Karli DeVall, Karli DeVall Accounting

Watch the entire roundtable discussion above and then check out https://us.dealertrack.com/controller-guide/ for more.

 

 

Technology Alone Won’t Drive Profits

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Automotive dealerships do more than sell fast, shiny cars to eager customers. When it comes to adopting technologies to improve workflows, reach new customers, and do just about anything and everything, dealers are pretty “tech savvy.” But, at what point are your systems and programmable platforms doing less to help, and more to hinder, your business?

It turns out, dealers’ are using nearly 7 software technologies to run their businesses. When it comes to the technology within your auto dealership—who’s really in control? Before you add another system to the mix, consider the following tips:

First, who owns the management of your technology systems?
Does your dealership have an IT Operations team? Are you paying a staff member to monitor a server on your premises, or does all of your important information and data (you know, like customer credit cards, contact information, forms for financing, etc.) get stored in the cloud? Would you like to take on this responsibility—because it is a full-time job—or would you like to continue to focus on meeting the needs of your customers?

Second, are there any expensive technologies you’re currently paying for that aren’t being used?
Ask yourself if you’re paying for specific licenses or user-access fees for roles and positions within the dealership that no longer exist. Or, are there any that could be easily outsourced? Did you have to sign an expensive contract for a service that is currently collecting dust? If so, you might not need another tool.

Third, do any of your systems have impossible learning curves?
If this is the case, consider this: it’s probably costing you more than you think. Hard-to-learn tools and systems drive away potential candidates and keep current employees from reaching their full potential.

Fourth, have you read the fine print on your contracts?
If you need a complicated turnover plan to shift roles, logins, legacy contract information, and more to the next-in-line, you might be in for a surprise. Not everyone can access a system that was purchased by a previous team member without complications.

The biggest lesson frequent technology adoption should teach everyone is that teamwork is key to driving higher ROI. To learn more, and discover greater insights—in detail—get your copy of the guide, The Auto Dealers’ Technology ROI Guide.

Get the Guide here.

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

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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.

 

 

Get Leadership’s Support For A Smooth DMS Switch

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Switching your Dealer Management System (DMS)  is the first step toward updating your technology strategy. Adding intuitive and easy-to-integrate solutions that better fit your overall business objectives will enable your team to fully focus on what’s most important—customer interactions. There’s just one problem: How will your staff react?

Disrupting the status quo can be difficult. A technology change impacts everyone at the dealership, so it’s important to remember there may be employee concerns around the switch and how it will affect their day-to-day work. That’s why it’s crucial to get leadership on board with the change first.

According to a Prosci study of 575 change leaders, 84 percent of participants rated manager and supervisor involvement in change initiatives as “extremely important” or “very important” to the success of a project. Managers and supervisors are critical to the outcome of a change initiative because of the unique relationship they have with the organization’s staff members, effectively positioning them as an influential force during a time of transition.

So, how exactly do you get your leadership team’s buy-in? It’s important to listen to them and include them in the change management discussion. Providing this open conversation and truly hearing their ideas will help get them on board with the transition. They know the details of how they get their jobs done. You want them to feel comfortable that they will also be able to do their jobs in the new system.

This is essential, as you will need to look to management to help relay the key change messaging to the rest of the staff, act as an advocate for their departments and manage any resistance. Having your management team be part of the messaging distribution will enable them to take greater ownership in the decision to adopt a new system, ultimately helping them to more confidently communicate the ‘why’ of the transition to their respective teams.

Management can also provide invaluable insight into each department and its inner-workings. A service manager or sales manager, for example, might have a valid concern that you need to share with your chosen DMS vendor so that it can be addressed as part of the switch. A smooth transition can only occur once any and all concerns or problems are out on the table.

Even with a leadership team that is on board with the switch, there can still be risks in trickle-down communication. If you can, take the reigns and control the narrative being passed around from employee to employee by communicating directly with the entire staff upfront. Share your vision of how this new technology will help boost the dealership’s bottom line and increase efficiency for everyone and every department. Once the pace has been set, you can train management on how to continue driving the messaging moving forward.

Understanding the importance of getting buy-in and involvement from management, one of our dealer partners created a video series detailing the reasons for making the switch and the benefits to the dealership. The videos were shown to management and employees at each of the dealership’s rooftops and went as far as to detail how work life would improve with a new DMS system in place. The videos were received positively and helped secure both leadership and employee buy-in, enabling a smoother transition process overall.

Another dealership shared a written narrative around why they were making the switch. This was a dealership that had been on the prior DMS for 30+ years. But the written word spoke to both their storied past and their exciting future. That future, the owner believed, was only going to happen with a new, modern and flexible DMS.

Let’s face it, change can be scary. That’s why it’s imperative that you disseminate change messaging early on. This is a task no one can carry on their own. Having your full management team on board will be essential. Work with your team and new DMS provider to address fear of change head on and explain why the switch is necessary to ensure 100 percent employee buy-in.

A version of this article originally appeared on DigitalDealer here.

 

John Grace is associate vice president of operations for Dealertrack DMS, Cox Automotive. Grace brings nearly 20 years of high-tech operations and support experience to this position.Grace joined Xtime in 2011 from Tastingroom.com where he was vice president of operations. Prior to Tastingroom.com he spent nearly eight years as a member of the executive staff of the Location Services Division of Autodesk. At Autodesk, he played a critical role in the growth and expansion of the division, delivering middleware and application solutions to wireless telecommunications companies. He was responsible for managing SaaS solutions, customer premises equipment, and customer support for domestic and international customers. Grace has extensive experience with pre-IPO start-ups, as well as more established companies in all phases of technical and business management.

5 Steps to Reduce Turnover at Your Dealership

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Turnover in the automotive industry is not only a huge problem—it’s a growing problem. According to a study conducted in 2016, turnover increased in 2016 by 3%, reaching 43% annually for dealerships. That means most dealerships lost around 23 employees every year. And turnover is expensive. The cost of replacing a single lost employee can reach $45,000 each year. This type of issue should be top-of-mind for every single General Manager (GM) and Dealer Principal Owner (DPO) working today. To combat this issue, Dealertrack DMS hosted a live session with industry expert John Grace and Tom Stocco, Chief Financial Officer at Van Horn Automotive Group—a 16-store dealership group with a great retention track record—for advice.

Improve Training with Better Technology Tools
Van Horn Auto Group doesn’t cut corners when it comes to training and part of that commitment includes investing in easy-to-use technology. The investment goes further as the dealership employs two,full-time learning professionals and trainers who travel from store to store to ensure proper onboarding and continued education efforts are aligned with the company’s objectives.

“When people feel empowered that they can affect change and reach their goals, I think that has such a positive effect on culture overall.” – Tom Stocco, Chief Financial Officer at Van Horn Automotive Group

Empowerment is the Key to Great Culture
“Culture” can be accused of being a buzzword if you don’t take it seriously. For Van Horn, allowing each department the autonomy to set their own goals, meeting as a team, and sharing wins and losses, together, helps drive the overall culture across multiple stores. According to Tom Stocco, “When people feel empowered that they can affect change and reach their goals, I think that has such a positive effect on culture overall.”

Adjust Your Hiring Techniques
No one gets hiring right, every time. But, patience is key. You’ve spent time and money on building your dealership’s culture, so don’t rush it. Be sure to tell the story of your dealership to each and every candidate who walks into your door. And, when you do, be open and transparent about it. Otherwise you won’t find the right fit.

Tie Your Hiring Strategy to Business Strategy
If you’re willing to invest in your employees, it will benefit your dealership in the long run. Van Horn hires employees with the expectation that they’ll stick around, and they’re willing to incentivize them as such. The dealership will help cover half the fees of a college tuition for employees going to school. This type of long-term investment keeps Van Horn’s turnover low, helps improve the career trajectory of their team, and goes a long way towards the strategic improvement of their hiring plan.

Think Differently
Van Horn’s management training includes two-day courses that include hiring best-practices and compliance strategies. But beyond that, Van Horn also takes its managers through training to grow and develop as better and stronger leaders. The investment is aimed to help each manager discover how to better motivate their teams and discover ways to improve each staff member’s career in the automotive industry. It’s this “next level” of leadership training that strategically impacts the tenure of employees.

The people side of the automotive business faces the challenges of hiring and retaining talent greater than many other industries. But, DPOs and GMs have faced many challenges before. It will be the creative innovators whose dedication to the development of their employees and the transparency of their business who come out on top.

See the entire interview between John Grace and Tom Stocco of Van Horn Auto Group here.

A Dealership’s Digital Ecosystem

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Today’s modern dealerships are adopting technology at a rapid pace. This new shift is changing the way consumers buy and use cars, as well as the way businesses sell them. But, does adding more tools, software platforms and services add value to the process? Sometimes it’s hard to see the forest through the trees. Dealertrack partnered with an independent market research firm to conduct a comprehensive study about dealers’ most used technology systems. Take a look at the data displayed below from 229 respondents and discover a new insight into the role technology plays for the modern franchise dealer.

 

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

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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

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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

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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.