Tag: Performance Management

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.

 

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.

Boost Your Dealership’s Game-Plan: Staffing & Process

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When it comes to making smart strategy decisions for your dealership, there are two key areas of focus you can’t ignore: staffing and process. You’re likely investing in better technology. And, you’re building a better customer experience, focusing on digital retailing and virtual sales and service options. In fact, by the end of 2020 and heading into 2021, your dealership has done (and is doing) so much to overhaul the way your business runs, you might not even look like the same dealership anymore. But, here’s why optimizing human capital management and developing process improvements that drive operational efficiencies will help you level-up your dealership’s game-plan.

“Even before the pandemic, employee turnover was cited as a major problem and a pain-point for dealerships. Twenty-percent of dealership staff said they were likely to look for another job in the next six months.” – Tyler Anderson, Dir. Business Development, Dealertrack DMS.

Solving Key Human Capital Challenges

Between hiring, onboarding, training, and remote-work management, dealerships are facing difficult challenges within the people-side of the business. Some of these issues are hardly new, while others are unique to the current changes taking place to the retail environment. “Even before the pandemic (according to a Dealership Staffing Study), employee turnover was cited as a major problem and a pain-point for dealerships,” says Tyler Anderson, Director of Business Development for Dealertrack DMS. “Twenty-percent of dealership staff said they were likely to look for another job in the next six months.” The problems for dealers and their staff are often deeply rooted within the varying technologies and systems that employees must constantly learn, and re-learn, on the job. Anderson notes, in a recent webinar, that dealership employees often face redundant entry points for data between multiple, disconnected solutions creating the opportunity for manual errors. By bringing together best-in-class technologies and fully integrating your dealership’s human resource and payroll solutions, is a giant leap in the right direction. (Watch the full webinar below to learn how companies like Netchex and Dealertrack are working together to offer new, integrated solutions.)

“In the midst of these transformations, dealerships still have to manage these processes—quite frankly—to succeed. Or, they’re going to fail…Reporting doesn’t go away, it becomes paramount.” – Randy Wilson, Dir. Performance Management, Dealertrack DMS

Without Operational Process, Organizations Will Fail

Among the many changes dealerships have seen this year are the various services offered to customers who don’t want to visit your store in-person. In fact, according to a Cox Automotive COVID-19 Consumer and Dealer and Impact Survey, two out of three buyers would prefer to complete 100% of the buying process online. Between online shopping and the need for remote service options, dealers are reinventing their standard operating procedures. This means that new team members, returning staff, and training standards must all be re-calibrated to keep your business running smoothly. “Leveraging your technology is crucial to your success,” explains Randy Wilson, Director of Performance Management at Dealertrack DMS. Wilson’s team of Performance Managers work one-on-one with dealer partners and oversees the rapid digital transformation that has taken place this year. But, Wilson cautions, without establishing process improvements to achieve operational efficiency, your dealership’s new online business model could be in peril. “In the midst of these transformations, dealerships still have to manage these processes—quite frankly—to succeed. Or, they’re going to fail…Reporting doesn’t go away, it becomes paramount,” says Wilson.

To learn more about Dealertrack’s integrated Payroll, powered by Netchex and Performance Management for DMS, watch the recorded webinar below.

 

Sources:

2020 Cox Automotive COVID-19 Consumer and Dealer Impact Study
2019 Dealer Impact Study: https://www.coxautoinc.com/learning-center/2019-dealership-staffing-study/

 

Best practice tips for transitioning to a digital dealership

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Dealers are currently beating the odds in the face of economic unrest and uncertainty. According to the Cox Automotive COVID-19 Consumer and Dealer Impact Study, dealerships who have implemented digital sales models are exceeding predictions and can expect to see success in the long-term. In fact, 73% of dealers surveyed have a digital retailing solution in place, and just over 70% of those dealers are seeing buyers complete more of the purchase process online. Still, though, 2020 is only halfway over and Dealer Principal Owners (DPOs)and General Managers (GMs) are looking to their partners for advice, insights, and guidance moving forward. According to Performance Manager for Dealertrack DMS, Mark Gabriella, having the right technology in your dealership has never been more important. “The pandemic has been horrible for both individuals and businesses. Right now, dealers are discovering the opportunities within their business to make it through, but also to survive beyond.” Gabriella and his team of Performance Managers are working side-by-side (virtually for now) with their dealers to hold them accountable for the business goals set for the year. Below is his advice for making the transition to a digital dealership.

Solo Decisions Don’t Equal Strategy.

When thinking about digital sales strategy or integrated technology solutions, Gabriella warns DPOs and GMs to be team players. “If you don’t involve your management team, you don’t have a strategy. “You’re probably going to be fighting them down the road,” he explains. “You have to show your team what the advantages of a new software are, what your strategy looks like, how you’re going to implement it. And then you have to be open to meet after the implementation on a weekly and ongoing basis.” The true key to a successful launch of anything new within a dealership, is simple: feedback from the team. Are there tweeks that need to be made? Can the team make adjustments? As Gabriella explains, “It should never be just one person’s idea. Make sure your rollout has a plan.”

Find Your Advocates.

A best-practice solution for implementing change in any organization is to identify key champions within the organization who can help their coworkers with their personal experience and willingness to embrace change. Gabriella has over 20 years of retail automotive experience. He worked as an executive manager over nine stores, and the Chief Financial Officer over 18 stores. Identifying who is—and who isn’t—on board with a technology change now comes second nature. “I always try to identify that one individual that embraces new technology and change,” he explains. “ Then, I use them to get other people involved. If you don’t have a champion that wants to take the reins, you’re gonna be fighting an uphill fight.”

Don’t Discount Your Opposition.

Playing devil’s advocate, Gabriella offers the opposite advice next. “But, also look for those who don’t (embrace new technology)” he shares. “It’s easy to find those who do, but it’s sometimes better to look for those who do not and turn them around.” It feels good to have people in your corner, always agreeing with your decision. However, good leaders spend the time to understand the concerns of their team, to make certain everyone is heard, and not to rush a decision.

As dealers move forward, those willing to embrace digital disruption are primed for the ‘new normal.’ Gabriella offers advice for those making the transition to new DMS integrations to enhance their digital dealership: “there’s always a small valley of despair. As employees become more proficient with the technology, it gets better,” Gabriella states. “The Performance Managers can provide a bridge over that valley.”

Download your copy of our guide, The Road to Consensus, here.

 

Master Your Upcoming DMS Transition

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Learn the 4 Steps Dealers Need to Know Before You Roll Out a New Dealer Management System

 

Your dealership relies on technology to drive innovation and meet changing buyer expectations. Finding a right-sized Dealer Management System (DMS) is a big step. But, the transition to your new DMS is a big step on its own. Now that you’ve made the decision to move to your new DMS, make sure you’re ready to launch and hit the ground running with your brand new technology by following these four steps from our Performance Management team.

There’s More to a DMS Transition than New Technology…

Dealertrack DMS Performance Manager Michael Panozzo began his career in retail automotive twenty years ago. He’s experienced the ups and downs of a DMS transition from various roles in the dealership and tells his dealership partners, “Yes, you’re changing technologies, but it’s about more than that.” There are countless fears that hold business leaders back from adopting a new DMS. Eventually, though, when it’s time to switch to a DMS that fits your goals, your budget, and your dealership’s needs, taking the next step can be done well if you follow a few best-practices.

Step One: Be Prepared for Change

It sounds simple, but according to Panozzo, it’s the little things your team wasn’t expecting that become a big deal later. “Understand how the DMS and other departmental tools are used and integrate together, then develop a plan for adoption,” Panozzo explains. “A DMS change is a change to how people do their everyday tasks. Staying prepared and ahead of this is essential!” Being mentally ready for change can help everyone succeed.

Step Two: Operational Efficiency Starts with People

So, you’ve decided to change your DMS. You’re pretty excited and looking forward to the new functionality of the new system that touches every corner of your dealership. But, keep in mind, “you’re changing your technology, but it’s about a whole lot more than that,” Panozzo states. You can’t roll out a shiny new system and expect everyone to embrace it simply because it works better, or because it’s easier to learn. Your organization runs well because of deep-rooted operational efficiencies that rely on people. Make sure you include them in the transition at every step. And, speaking of including your people…

Step Three: Communicate Again and Again

According to Panozzo, Dealer Principals and Managers cannot over-communicate when it comes to preparing the dealership for a new DMS. If you’ve just signed on for a transition, you likely have time to prepare the team. “Don’t waste it! Communicate often and encourage good performance. Find out what motivates your team and go from there.”

Step Four: Master the Mindset

In his experience, Panozzo knows that to be truly successful with your upcoming DMS implementation, your dealership’s leaders must learn to master a bit of psychology. “Something like seventy-five percent of learning a new DMS is all psychology,” he states. “It’s a total mindset shift.” Helping your team adapt to change begins there, so “begin early and help shift the way your team operates before launch, not after.”

Dealertrack DMS has mastered the art of installing your new technology at the dealership. Our team is with you every step of the way to ensure a successful launch. Prepare your dealership staff for change with steps in our guide, The Road to Consensus.

Process & Efficiency: The Key to Profit & Success

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At the start of 2020, my team of Performance Managers had big goals and aspirations to bring our dealer partners up-to-speed on some of the new and exciting developments that would enhance Dealertrack’s Dealer Management System (DMS) and bring much needed process improvements to our partners. And then, it seems, the worst happened. Dealers were suddenly thrust into a series of rapid transformations and were in a rush to set up remote access for staff, launch their safety protocols, and get their virtual sales up and running. All of that was extremely important, but, as we’ve all seen, dealers couldn’t afford to ignore their basic, everyday operational processes. Rather, in the midst of these rapid transformations, dealers had to find a way to manage operational processes in order to succeed. Reporting didn’t just go away—it became paramount!

Now, with almost half of the year behind us, it’s clear that the key to profitability relies on improved process.

Trusted Partners Help You Roll Out New Technologies

The right technology within your dealership is important. A DMS that aligns to your goals can help you succeed whether things are going right or you’re suddenly forced to reinvent the way you interact with buyers. But, there’s a difference between surviving and thriving in business. Traditionally—and this was the case in my early career—launching a new technology at your dealership was generally the last interaction you would have with your vendor or account manager. Any upgrades or updates that came along after that fact could be missed along the way, too. So, it was easy to get frustrated with your investment. Working one-on-one with a Performance Manager, dealers no longer have to launch their DMS technology and figure it out from there. We have a team of experts who know the in’s and out’s of the system and who can help your team how to understand it.

Consistent Management, Monitoring, and Goal-setting Leads to Improvements

As I said before, getting the most from your technology tools makes a huge difference in the performance measured from your investment. Every dealership has unique needs, so simply handing over a complicated, one-size-fits-all system would be a disaster. With Performance Management, dealerships can fine-tune custom reporting so that you get the data and details you need. This year, Dealertrack DMS began rolling out new integrated solutions for our Payroll and Reporting features. With direct feedback from my Performance Managers, we were able to build customizable features that are generating a lot of excitement in the DMS world. By building consistent measuring, monitoring progress, and establishing goals for our partners, we’re able to help dealers reach—then exceed—their goals. A good day for the Performance Management team is when our dealers are successful.

Faster Funding, Streamlined Fixed Operations, and More

Dealers now have the ability to use data-driven practices, without needing to rely on gut-instinct alone, to hit their targeted goals each month. With so much at stake, particularly recently, having access to faster funding and streamlining your operations can seriously impact your odds of success. Dealertrack DMS recently launched Critical Analytics which aims to improve Sales to Accounting (solving the age-old “desk vs. accounting” problem), improve Business Office Summary, and help you get fund cash faster! There are more features, too, but you would need to spend some time with your Performance Manager to see all the customizable features unique to your dealership.

Technology advances at a rapid pace and dealerships who can keep up will have an advantage. Yet, having a trusted and valued partner to roll out the right changes, bring your dealership up-to-speed on custom features, and build unique processes that align to your goals will truly be the key differentiator that sets your business apart for the remainder of 2020—and beyond.

About the author:

Randy Wilson | Director of Performance Management, Dealertrack DMS

With over thirty years of experience in the retail automotive industry, Randy Wilson brings exceptional wisdom to his role as Director of Performance Management to the Dealertrack DMS team. By leading a team of Performance Managers who have all previously held high-level dealership responsibilities in their careers, he is committed to driving rapid transformation and building measurable growth for our partners. Randy joined Cox Automotive in 2012 and works tirelessly to bring real-world experience into the development of technologies that enhance the day-to-day performance and efficiencies of every aspect of the business. In his spare time, he can be found sporting his Cheesehead gear and spending any spare moment boating and fishing on the ocean. He and his wife have four children together and five grandkids.

 

How Dealertrack DMS is Investing in the People Behind the Buttons

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ORIGINAL ARTICLE WRITTEN BY PAUL WHITWORTH, SENIOR VICE PRESIDENT OF DEALER MANAGEMENT SYSTEMS AT DEALERTRACK

 

Today, the automotive industry has more pressure than ever to drive a seamless, technologically enhanced experience for consumers at all points of the car shopping, buying, and owning journey. To meet the needs of consumers, both dealers and technology providers have often found themselves investing in more buttons rather than the right ones. At Dealertrack DMS, we took a step back and asked ourselves: What is the right strategy for us? What is the best way to serve dealers? To answer these critical questions, we started to dig into the purpose of the DMS and how it was being utilized by dealers. After several working sessions, dozens of customer advisory board meetings, and too many data-deep-dives to count, we came to the conclusion that what dealers really want is a DMS that’s open, easy, and flexible to use. With this insight, we ultimately came away with the mission to focus more on the client experience and less on the buttons. Since that time, our dealers have driven every moment, every design, and every decision that we’ve made.

 

A Look Back at Our Latest Strides:

 

At NADA 2017, Dealertrack DMS unveiled its Performance Management offering, which provides dealers with an industry expert who, similar to a personal fitness trainer, helps dealers maximize the full potential of their DMS and develop both long and short-term objectives to achieve their business goals.

Additionally, in Fall 2017, the company announced DMS Edge, its first annual user event series that brings on-demand training and DMS best practices right to the dealer. DMS Edge reached 3,500 dealer participants in 2017. We also plan to continue our controllers conference as an annual event, where controllers from across the country can learn more about how Dealertrack DMS can help them run their dealership as well as have more peer-to-peer exchange around best practices.

Now, Dealertrack DMS is continuing to double down on its dealer-centric approach with the introduction of DMS 360. Set to debut at NADA 2018 later this month, DMS 360 is an all-encompassing self-service portal where dealers can get support and interact with one another and with Dealertrack DMS team members. At the core of DMS 360 is its peer-to-peer functionality. We’ve developed a virtual community where dealers can collaborate and engage with each other, such as ask questions and respond to other DMS users’ cases. DMS 360 also enables dealers to track and receive real-time support and better understand their DMS. Through DMS 360, dealers gain instant access to DMS help documentation and can search by topic any knowledge articles that exist in Dealertrack DMS’ Wiki or newly created articles that are added into DMS 360.

But our work to drive a dealer-centric business doesn’t stop at DMS 360. We are heavily invested in helping our clients get more out of their DMS and will be providing dealers with ongoing education through a series of online learning courses that we will be releasing this year. We also have a big project underway to share all best practices and processes we’ve learned over the years with dealers in what we are calling Books of Knowledge.

By focusing less on the buttons and more on the client experience, we’ve made it our mission to meet the needs of our clients and build a system that’s easy and flexible for our clients to use every day.

 

To learn more about DMS 360 and our dealer-centric approach visit us at Booth #2737C at NADA 2018, March 23-25.

 

 

Paul Whitworth, Senior Vice President of Dealer Management Systems at Dealertrack, has been at the forefront of automotive retail technology advancements his whole career. Paul graduated from the Massachusetts Institute of Technology and has held positions with J.D Power & Associates, Accenture, Hyundai Motor America, and Cox Automotive as well as leading several start-up companies.