Tag: Fear of Change

4 Ways eContracting is Easier Than You Think

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When a dealership is planning to introduce new technology, the initial worry is often, “Will it be a hassle?” Here are four reasons that adopting and using eContracting can be easy and beneficial for dealers.

Setup is simple

As with most technologies, eContracting setup is “one and done.” There’s minimal setup and easy integrations with other systems. The daily hassle of paper contracts is much more of an obstacle for dealerships than the minimal setup required by eContracting platforms.

Multiple devices can support eContracting

It’s important to know what hardware is necessary for the eContracting functionality you plan to use. Some providers require proprietary devices for contract review and signing—or otherwise limit your technology options for using their solution. Choosing a hardware-agnostic solution will allow you to work with the devices you already use every day, which will save you time and money.

Lender form changes and updates can be done automatically

When using DMS for paper contracts, there are licensing and programming fees. eContracting has the potential to eliminate those fees, as the latest approved forms from lenders can be added at no charge. With no paper programs, you can avoid paper licensing – and always have access to the correct lender version of every form.

A digital workflow adds efficiency and convenience

Workflows for paper contracting processes are filled with everyday hassles where customers must sign paper form after paper form, all of which are then overnighted to lenders – sometimes sent back for corrections, then shipped again – and finally, securely filed.

eContracting offers a streamlined workflow that is easy to learn and use. The benefits are immediate, with file cabinets full of paperwork replaced by digital deal jackets that include every document needed to complete a deal. Some eContracting platforms even include aftermarket contracts.

You’ll find that integration with other dealership systems means less data re-entry, which helps prevent the introduction of errors. That means eContracting helps dealerships submit accurate contracts quickly and easily, with no more back-and-forth with lenders.

Whether your dealership is considering a switch to eContracting or looking to maximize the benefits of your current eContracting platform, the more streamlined processes of eContracting can help you leave many of your current hassles behind you.

Click to learn how your dealership can take the hassles out of contracting with Digital Contracting on Dealertrack F&I.

The Race for Talent: Why the Right DMS and Technology Partner are Key to Attracting Quality Candidates

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Finding and retaining the right talent has never been more important or challenging for dealerships. They’re now facing the double whammy of historically low unemployment rates and high employee turnover. Fortunately, it turns out a modern DMS backed by a true technology partner might not only be important for streamlining your dealership operations, but also the trajectory of your hiring and retention strategy.

Many dealerships have traditionally followed a recruiting process where the goal is to find employees who already have experience with a specific DMS. That ties their hands in terms of who they interview. Instead of focusing on a prospective employee’s customer-facing skills, many dealerships find themselves fixed on an individual’s technology experience instead. That leaves a large number of talented applicants on the table all because of how hard it can be to learn a legacy system.

With overall staff turnover reaching 46 percent in 2017, according to NADA’s 2018 Dealership Workforce Study, dealerships can’t afford to be held back by the time it takes to train new talent on a legacy system. Making a switch to a modern DMS not only can help expedite the onboarding and learning process for new hires, but also sets them up to be more productive faster. This gives dealerships the flexibility they need to hire the right talent, rather than being limited to those who already know the DMS.

Leaving your legacy DMS behind to offer easy, open and flexible technology will also be key to catching — and keeping — the attention of younger generations who grew up with the latest technology constantly at their fingertips. However, the linchpin to winning over this younger talent lies in the training opportunities. According to a recent survey conducted by Qualtrics and Accel Partners, the number one thing Millennials want when starting a new job is sufficient training. Similarly, a Gallup report titled “How Millennials Want to Work and Live” revealed that 59 percent of Millennials cite opportunities to learn and grow as extremely important to them when applying for a job.

Employees want to continue refining their skills. They want a positive and exciting work environment, and that means mental growth and challenges. If nothing changes for them and they are constantly struggling with a technology system or spending excess time to get what they need, that impacts both employee growth and dealership productivity.

The technology landscape is changing more rapidly than at any other time in history, and if a dealership isn’t on board with that, they will get left behind. According to best-selling author Malcolm Gladwell, it takes 10,000 hours of practice to become an expert. Whether or not you take this theory literally, the overarching concept makes sense. Mastering or building on any skill requires ongoing training and practice. The same thing can be said for technology at the dealership. That’s why when it comes to making a technology switch, the training needs to begin right away and continue throughout an employee’s tenure, empowering them to further their professional development.

The continual training concept is being adopted throughout corporate America. Walmart Academies are teaching advanced retail skills and helping associates take charge of their careers. AT&T is adopting a continuous education culture and helping reskill current employees. Amazon is paying for employee education in specific fields. Each company has a different model, but they’re all trying to keep their employees on board and learning. It’s time for dealerships to take notice and do the same. This, however, will require finding a DMS provider who is your partner first and your vendor second.

Look for a provider who is willing to partner with you to deliver the training and education necessary to keep your employees engaged and using the DMS effectively. Make sure they offer training courses and online resources that your employees can access at their own speed. Enabling your employees to take control of their own development based on their needs, learning style and interests is vital to maintaining a positive and strong workforce.

Hiring, attracting and retaining staff is still the top challenge for dealership leaders today, and the Q1 2019 Cox Automotive Dealer Sentiment Index suggests it’s only getting harder. The top driver of buyer satisfaction in the dealership experience is their interactions with salespeople — even more than how long the car-buying process took or the price paid, according to the 2019 Cox Automotive Car Buyer Journey Study. If salespeople aren’t fulfilled, they aren’t representing your dealership well. Hiring and retaining the right people matters, and it’s up to you to work with your DMS provider to ensure you have the technology and training opportunities necessary to win talent over.

This article originally appeared on Digital Dealer here.

This is the final piece in a five-part series by John Grace on overcoming complacency and fear of change at the dealership.

It’s Time to Think About a Change

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Dealerships rely on a network of business operations running behind the scenes to make sure all of their information is easily available when needed. The DMS is a core component of this, along with other major IT systems playing key roles in dealer operations, including sales, F&I, digital marketing, registration and titling, inventory, back office functions — the list goes on. Without these technologies, dealers simply cannot focus on customer service and building a positive buying experience.

When the technology isn’t working for the dealership, it’s time to think about a change. That’s not an easy decision, especially when it comes to your DMS. A lot goes into choosing a provider and then transitioning to a new DMS. Here’s a roadmap of what to consider when choosing a DMS provider, and why they should treat you as a partner, not just another customer.

Flexible Technology

One of the first things to look at is the flexibility of your provider’s technology. Salespeople and management used to hover over their desktop computers to access all the details needed to run their operations. That data was stored on-site in big servers. If a staff member was off property, good luck getting the needed information.

Technology has changed 180 degrees. Today, we need data that’s accessible and secure from any location. It should be available on laptops, smartphones, and tablets.

That availability from any device and location is key. Given how rapidly technology is changing, you should be confident your provider is keeping up with technology. What works now may not work in five years, or it may just be clunky and no longer supported. That’s why many dealers using legacy systems are rethinking their choice in technology. If a provider isn’t forward-looking and introducing new functionality, how confident are you that they’ll adapt to changes in the future?

Real-Time Data

Real-time data means different things to different people. For some, it means hours. But what you really should expect is one to two minutes at the most. Imagine a customer walks into the service lane with an appointment. You want to update that appointment with new information as you check them in on your tablet. What if that update doesn’t get pushed through for another 15 minutes? How does this impact your productivity? What about the customer experience you provide? Your DMS provider should be enabling your strategy rather than holding you and your operational efficiency back.

Accessing Your Data

It’s commonly accepted the data in your DMS is your data. However, the devil is in the details. Not all providers make it easy to access that data. Think about putting your money in a safe at the bank. It’s your money, but you can’t get it unless the bank is open, and you’ve brought all the right information with you. Perhaps, you’ll be charged a fee every time you want to get into the safe. Unfortunately, some providers hold your data hostage when archiving it.

Before choosing a provider, find out about their data access policy. Who can access the data? Who authorizes the data? It’s critical you make sure data ownership is spelled out clearly in the contract. You should be able to get access to your data whenever you need to. End of story. Security is always an issue, and that data should be protected. But it should not be held hostage.

Open Integration

The system architecture should enable you to partner and work smoothly with other vendors and software solutions in order to fit your strategy and needs. Just as data shouldn’t be held hostage, your DMS provider should make it an easy process to integrate with these other solutions, no strings attached. Some providers require customers to jump through hoops, like charging inflammatory monthly fees that are great for the DMS provider, but if it’s not making things easier for the customer, then what’s the point?

Flexible Contract Term

You should have the freedom to run your business the way you want without contractual constraints. Yet, with the average DMS contract length spanning five years, this is easier said than done. Delve into contract terms and length before signing on the dotted line. Flexibility to change providers is important if they can’t accommodate the elements vital to your business. Plus, when you aren’t locked into a contract, it’s your provider’s job every day to earn your business and help you succeed.

A Partner, Not a Vendor

Yes, your DMS will come from a vendor. But the smart vendors consider themselves partners. It shouldn’t be a one-and-done type of sale. If you succeed, they succeed. Each dealership has different needs, whether that’s staff members fearful that making a change will impact their sales, or someone who doesn’t want to send an email and wait back for a reply to a pressing question. A partnership values both parties. Mike Tourtillott, general manager of Sisbarro Dealerships says it well: “We needed a partner who would really be there for us. Someone who would pick up the phone when we call, and also give us a system that works around what we do and not the way they think it should be.”

Creating this partnership fueled by a DMS provider that is flexible and adaptable will be essential to the success of your dealership and the ease of the switch process. With this roadmap in place, you’ll be on your way to partnering with a DMS provider that’s willing to mold to your strategy rather than the other way around.

A version of this article originally appeared on Digital Dealer here.

About the author, John Grace

John Grace

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.

Can You “Kondo” Your Outdated DMS Technology?

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

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

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

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

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

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

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.

When a Fear of Change holds you back

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“Time, training, resistance, nightmare, contracts and confusing.” These are some of the first words that come to mind when a dealership considers making a DMS switch. These words are also often at the root of the ultimate decision to forgo the switch.

A fear of change and the potential roadblocks linked to switching technology has locked many dealerships into complacency, with many choosing to stick to their legacy DMS even if it means they are unable to integrate with new tools or keep up with the changing needs of the modern consumer. While concerns of losing finances, employment records or customer data — not to mention the potential for staff resistance — may understandably discourage dealership managers from modernizing their DMS systems, if they are willing to open themselves up to change, a seamless transition is achievable.

To stay competitive in today’s environment, dealerships need to meet consumers on their terms, and that means dramatically upgrading their technology systems. When purchasing a vehicle, consumers are now looking for a connected experience. They want to find a dealership where they can begin the car shopping and buying process online and complete it in-store. Keeping up with the changing needs of the customer is vital. In fact, according to the 2016 Salesforce State of the Connected Customer report, half of consumers report they are likely to change brands if a company doesn’t anticipate their needs.

The comfort that comes with keeping to the status quo, and the time and money that has been invested in training employees on the legacy system, make it easy to stand still. However, in a time where adapting to the changing industry is vital to a dealership’s long-term success, stagnation is no longer viable. With the right planning, open communication, ample and ongoing training, and invested partner in place, a DMS switch can give dealerships the opportunity to propel themselves forward and overall grow their business. It’s time for dealerships to take on fear of change head-on and implement modernized technology that can help tighten operations and increase efficiency across departments.

A version of this article originally appeared in AutoSuccess Magazine here.

About the author:

John Grace is associate vice president, 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 a master’s degree from Purdue University and a bachelor’s degree from the California State University.

Frozen with fear: why dealers stay put

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Ever feel stuck? When faced with a tough decision that could improve the dealership greatly, but could also (potentially) be a difficult transition, Dealer Principal Owners (DPOs) can feel frozen.

And so the story goes for many dealerships working through the day-to-day issues of an out-of-date Dealer Management System (DMS). Sure, it’s a struggle now. But, it’s a familiar struggle. So, what are DPOs most afraid of? What could be holding them back? It turns out there are actually five common fears holding most dealerships back from technology transitions:

The (completely real) fear of data loss
Data drives your dealership. Losing it (or open access to it) would be costly. Pulling the lever on a DMS switch with the potential of data loss is a big factor holding many dealerships back.

Lost familiarity
So your current DMS doesn’t work very well. But, at least everyone on the team knows how to use it. The hours spent learning workarounds and memorizing the functionality of your systems was a big investment. Giving that up—even for an easy-to-use DMS that everyone can use—might hold you back.

Flipping the switch
If only it were as easy as turning on a new machine, right? The big installation process of a new DMS is a lot of work to do on your own. If you had to do this without a trusted partner who was with you every step of the way, it would be a nightmare.

Change Management
Your dealership operates with varied integrated systems. And the DMS can feel like the central nervous system keeping everything going. If your DMS suddenly changed, and worse—wasn’t an open platform, ready to integrate with all of your systems—you might be ready to panic.

Culture impacts profit
Your employees’ ability to do their jobs well impacts morale. It impacts the bottom line and the overall culture of your dealership. It would be really scary if your DMS wasn’t easy to use. Today’s workforce demands point-and-click user interfaces with a modern look. If it looks outdated, it probably isn’t operating like a modern DMS either.

Change is scary. But, change is constant in the automotive industry. Dealerships face it every day, successfully. The ones who brave technology transitions and implement new, faster, and more efficient DMS platforms (like the real-life success stories in this guide) know that facing your fears is the best way to conquer them.

Overcome your fears. Get the guide: Overcoming the Fear of Technology Transition