Tag: Switching Technology

THE DMS DILEMMA: IS THE GRASS REALLY GREENER?

Posted on

If you find yourself fantasizing about a new DMS, but dread the thought of switching, you’re not alone.

We surveyed hundreds of dealers to better understand perceptions of their current DMS provider and considerations around switching.¹ Many respondents are dissatisfied with their current DMS, but hesitate to disrupt an established relationship. However, respondents who have switched are happier with their new provider. See what we learned in the infographic below.

 

  1. Surveys conducted by FARM in 2016 and 2017, on behalf of Dealertrack.
  2. Quotes compiled from anonymous survey responses. Edited for content.

Technology Transitions: 5 Steps For Success

Posted on

Technology is an important investment for dealerships. In nearly every aspect of buying, selling, merchandising, and financing auto sales, tech touch-points can either help, or hinder, the process. So when it comes to making a change to even one of the tools that impacts these workflows, it pays to be prepared. Automotive industry expert John Grace has worked with Dealership Principal Owners (DPOs) and General Managers (GMs) for nearly 20 years, finding key insights and practical process solutions. Here is a preview of his findings; watch the full recorded presentation online.

Step 1: Strategy

If your dealership is considering a switch, the fact is: you’re ready. But, no great success has ever happened by accident. You might be ready to let go of your old, outdated technology, but having a game-plan—with a full audit of who will be involved, what systems are impacted, and an idea of how long the transition will take—is the first step. The solution to step one is simple, though. Find a trusted partner who has been down this path before, is willing to understand your goals, and can work with your business needs.

Step 2: Teamwork Makes The Dreamwork

When it comes to a successful transition, if you don’t have support from the top stakeholders, you might want to reconsider your next move. Support has to come from the top-down. Without the guidance and support of leadership, your technology transition will sputter out. Need more time to process a change or onboard the team? That’s where leadership comes in. Having a problem with a vendor who hasn’t fulfilled their end of a contract? Bingo: leadership. Need to convince your staff that the change will work out, despite their understandable worries and fears? Leadership must be willing to address this.

Step 3: Choose Wisely

Now that you’ve made the decision to upgrade, and leadership has your back, it’s time to pull the plug on your old vendor and sign on the dotted line with a partner, not just a provider, who meets your criteria. And—this is key—be willing to ask for what you deserve. Make a list of the shortcomings from your past relationship, and be unwilling to accommodate. This is your chance to be picky, so involve your staff, your operations team, and ask other dealerships for anecdotal feedback, too.

Step 4: Build Implementation Partnerships

The most important part of a technology switch happens during implementation. This process will set the tone of your entire experience going forward, from adoption to mastery. So, be certain to find a partner with verifiable experience, and make certain they have a solid strategy for setting your dealership up for success. Remember: the relationship doesn’t end once you’ve signed a contract.

Step 5: Never. Stop. Learning.

Your business is constantly growing, and key roles will change. Discover what kind of ongoing learning, development, and training options are available for your team. Is there an online support and community to share ideas and master best-practices? How responsive is the customer support should you encounter a problem? Is this partner involved in the community, building a better future for the automotive industry?

Your technology needs are more than a necessity at your dealership. Technology drives your business forward, builds trust with your buyers, and has the potential to forge new, lasting partnerships. Successful planning, strategy, support, and implementation go a long way toward a positive transition that will bring positive results to your team, your buyers, and your bottom line. To watch John’s full presentation and learn more, go here.

Bonus Benefits of a Tech Change

Posted on

Just like spring-cleaning, decluttering your dealership’s systems paves the way for progress.

Updating your automotive dealership’s technology is a lot like spring cleaning. Once you’ve made the mental decision to let go of the old, legacy systems holding you and your business back, you’re free to update your data, your systems, and your processes. It’s a lot like cleaning out the garage! Here are additional benefits your dealership will experience once you upgrade your technology:

#1 – Working Smarter Pays Off

How you work is as important as how hard you work. And your team works hard. Legacy platforms may be hindering the productivity of even the most efficient team members. Upgrading to a software system with an easy-to-use interface frees your staff to focus on more important responsibilities like customer service. And that adds up over time. According to the Cox Automotive 2018 Service Industry Study, around 70% of consumers who purchased or leased from a dealer didn’t return to that same dealership that same year.

#2 – Stop The Integration Fee Madness

Technology has a tricky side-effect: you purchase a system built to run one part of your business, which requires a second tool (with added fees) to connect to your data, which then requires a complex system to set up your reporting and tracking, etc. According to independent research, dealerships are using seven different systems to close a sale. With monthly fees averaging $500 each, dealers are spending $3,500 each month, or $42,000 a year, to access their own data. Dealertrack DMS offers open integration. Your blood pressure can lower, you can breathe a sigh of relief…ahhhhhhh.

Letting go of old, outdated technology feels hard. But making the switch is a decision that comes with added bonuses that impact your entire dealership from your budget to your team’s productivity.

To see more benefits of moving on, and to hear how the switch made business better for real-life dealerships (like you), get the guide: Dealer’s Dilemma: Letting Go of Old Technology

DMS: First Among Auto Dealership Systems

Posted on
The automotive retail market is more competitive now than ever, and car dealers need every advantage.

Almost all franchise dealerships say their dealership-management system is the most important system they use, according to a Dealertrack whitepaper.

Yet, it also seems to cause the highest levels of dissatisfaction. Training, open integration and cost control are central challenges. So, why don’t dealerships just find a new DMS provider that can meet their needs and offer an open, modern and easy-to-use system?

With fears about losing access to their data, costly integration fees and getting locked into another long-term contract, many dealers admit the DMS is the most difficult system to switch.

The automotive retail market is more competitive now than ever, and dealers need every advantage to maintain their edge.

Customers are doing their research ahead of time. They are armed with information they can use in negotiating and choosing which dealership to work with. An outdated DMS won’t cut it.

Here’s why dealerships that aren’t thrilled with their current system should do something about it.

Partnership

A provider should be a partner, not just a software or technology vendor.

That partnership should be evident from the first point of contact, straight through to ongoing training, performance management and continued system operation.

When doing research or getting referrals from other dealers, ask how well the DMS team supports the dealership, both at the time of installation as well as down the line.

If dealer question whether they were sold a system and left to figure things out for themselves, they chose a vendor, not a partner.

Flexible Contract Terms

You shouldn’t have to be trapped in a contract that isn’t working for you. The average contract length of five years doesn’t work for all dealers. Contract terms can tie a dealer’s hands.

A DMS partner should always be on their toes, striving to keep the dealer’s business with great service, key functionality and continued innovation. Contracts are a way of life with many parts of business, but a DMS contract shouldn’t hold you back.

Cost

There’s nothing worse than thinking you know the price, and then getting nickel and dimed. Of course, these days it’s not actual nickels and dimes; it’s hundreds or thousands of dollars. With the average dealership using seven software systems to complete a sales transaction and with average monthly fees of $500 each, dealerships are spending approximately $3,500 a month, or $42,000 a year, to access their own data.

High add-on fees for integrations with other software systems should not be on the DMS partner’s cost menu. The price should be the price, with no surprises.

Experience

Some DMS providers are small start-ups, some large established companies. No matter what direction you go, the key is industry experience. Does the partner really understand what dealers want and need, and do they provide it? How do they treat clients? Do they approach challenges and address issues head-on, with an understanding of how the DMS fits into and supports the greater ecosystem?

Open Integration

A platform that offers open integration enables dealerships to easily connect their various solutions across vendors to create a more seamless workflow.

Through open integration, dealerships have the flexibility to choose the technology they want to use and don’t need to log into different systems to access it. Logging into one system is a big advantage, but even more important is having the data accessible across solutions.

Cloud-Based Platform

Key to selecting a DMS provider is finding one that can address current needs while also having the advanced technology available to evolve at the same pace as the industry. Cue the cloud technology.

With a cloud-based DMS platform, dealers get the most up-to-date version of software without having to maintain a server or do manual updates. Better yet, cloud technology can be accessed anywhere there is an internet connection, while also keeping customer information secure.

A DMS vendor can’t rest on laurels. Otherwise, it will go the way of the dinosaurs.

This article originally appeared on Wards Auto here.

 

Mandi Fang is vice president and general manager of Dealertrack DMS, a Cox Automotive brand. Before that, she spent two decades focused on developing auto retail products and building a performance-management model for dealers.

Three Success Factors for a Smooth DMS Install

Posted on

Changing technology at your automotive dealership has the potential to disrupt your day-to-day workflow, wreak havoc on morale, and halt sales with unknown amounts of “downtime.” In short, it’s not a light decision. But, finding the right Dealer Management System (DMS) is worth it in the long run. Fortunately, Dealertrack DMS installs 40 dealership’s a month with a trusted, professional team of experts. And we build on everything we do with feedback from our partners by establishing long-lasting relationships with the dealerships who grow with us. Just check out these success stories from three outstanding dealers and discover three success factors for a smooth installation at your dealership:

Standardizing Your Processes.

As dealerships grow and expand, acquisitions are common. Yet, bringing a new dealership into your business group often includes adopting old, legacy software systems, unique processes, and dramatically different management styles. When Goode Motor Group began growing rapidly, they needed to find a single, easy-to-use DMS provider they could rely on. With Dealertrack’s proven record for fast, easy transitions, staying on one DMS system company-wide, and across all locations, made analyzing data, training staff, and optimizing their growth plan much easier.

Read about Goode Motor Group’s success here.

Partners. Not Vendors.

When it comes to something as significant as switching your dealership to a new DMS, your provider should be as invested as you are. When Crestmont Cadillac made the switch to Dealertrack from their former provider of 35 years, the anxiety about the change was understandable. Building trust is no easy factor, but having a project champion—someone who believes in the change and communicates the mission from the top of the organization, down—can make a big difference. On Dealertrack’s end, the installation team was committed to being on-site for five full weeks prior to the change to ensure that each team member had the training needed to feel confident and comfortable.

Watch Crestmont Cadillac’s story here.

Ongoing Support.

Upgrading your DMS system has many powerful benefits, including faster access to data, integrated and open systems, and an easy-to-use interface. While these were among the top reasons for Bob Smith Toyota to partner with Dealertrack, the ongoing customer support has been the most important factor in the partnership. Since technology is constantly changing—just like the automotive industry—having a partner available to guide new team members, enlist training services, and build best-practices for the dealership has been invaluable.

See why Bob Smith Toyota uses Dealertrack here.

Dealers have many factors to consider before, during, and after a DMS switch. But, finding a forward-thinking technology provider who helps your team build better processes, offers ongoing support, and becomes a trusted partner will enable a smoother transition from beginning to end.

Can You “Kondo” Your Outdated DMS Technology?

Posted on

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.

Auto Dealer Controllers’ Tips For A Smooth DMS Transition

Posted on

Dealerships with outdated technology are getting left in the dark. The inability to access real-time data on the sales floor, roadblocks in your accounting and F&I processes that frustrate buyers, and clunky systems that drive away employees—before and after they get hired—are just some of the side-effects of a DMS that doesn’t fit your needs. But, with all of these known issues, dealerships tend to rely on old, familiar systems when faced with the sometimes daunting task of upgrading to a new DMS. Why not take the plunge?

The disruption of a DMS switch can seem scary, so we gathered tips from top dealership controllers on managing a smooth(er) DMS transition. Controllers know the ins and outs of dealership operations and had the following advice:

It Starts From The Top
A big change is coming, so be sure to get everyone on the same page. Make certain that communication comes from the top of your dealership and host weekly check-ins and status updates. If leadership is successful in keeping everyone up-to-date on the transition, there should be fewer surprises.

Delegate Responsibilities
Once your Dealer Principal Owner shares the news, or has an update, it’s up to each department head to provide status updates to their team members. Make sure that this doesn’t fall to one person in your organization, and delegate tasks to each team. Whether you’re asking for internal audits of risk, information, or needs from each team, it should be clearly and evenly spread out.

Keep Communication Open
One of the biggest concerns dealerships have about a DMS change is the impact it can have on culture and morale. There’s an increase in stress that occurs whenever a big change happens so be certain to keep your doors open.

Find a Trusted Partner
When you choose a new vendor to take you through the journey, make sure you won’t get left high and dry. Ask a lot of questions about the process before you sign, and be certain that you can trust your new partner to help your team transition. Are you worried about hidden fees? What about losing your data? Is something implied, but not explicitly defined? The bottom line, if it doesn’t feel right, it probably isn’t.

Never Stop Learning
Just as technology continues to change, so too will your dealership. As team members move into new roles and new hires come onboard, who’s going to be there to train them? When your DMS upgrades, how will you learn about the changes? Are there tools and resources to help your team become experts? What about access to an online community for troubleshooting and advanced learning?

If you prepare for the switch, you and your entire dealership family can avoid the frustration of a messy switch. Thanks to the unique perspective of dealership controllers, their shared knowledge among this peer group is valuable beyond measure. As technology continues to advance and impact the automotive industry, it will be this group who drives it.

Visit the Controller’s Hub to get more insights—Start Here.

Overcome Your DMS Transition Fears

Posted on

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

Posted on

“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

Posted on

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