Next-generation dealership management systems can provide auto retailers with a number of benefits, and can ultimately help them save money
Any automotive dealership that is looking to break free of the status quo has already invested in a dealership management system (DMS).
Incorporating a bundled management information system provides a dealership with the ability to manage their financial, sales, parts, inventory, and administration needs from one independent software.
By recording any and all information that is ever collected, a dealership is able to track securely, the various streams of work, track sales, product performance and associated revenues that help inform budgeting and planning.
A DMS offers more tailored services, and when the tools are used appropriately, the processing of information can lead to better organization and efficiency.This is done by streamlining all services by unifying both the dealers and manufacturers.The overall goal is to reduce the time a business would normally spend switching between multiple systems. And when time is managed properly, there is an increased focus on the customer, which ultimately delivers more sales.
More importantly, and what is catching the attention of many dealers, is the value of gaining specific insight into the needs of a customer: their current or future needs, which can translate into customer satisfaction, and in turn greater potential for a returning customer, and greater revenue.
When choosing a specific DMS, there are several rules of thumb that should be applied, including: taking an inventory of what your dealership needs and wants from a DMS; taking the needs of every department into account; prioritizing the features and integrations you need to make; and understanding the pros and cons between web-based systems and software that needs to be installed onto a server.
Other suggestions are to make sure the system you are researching can integrate with current vendors; research and asking colleagues and other dealerships what DMS they use and their thoughts; consider the time impact and cost of a transition; ascertain the return on investment; and make the effort to train your team appropriately. And above all else — because selecting a DMS is a big decision for an auto dealership, don’t take it lightly.
Of course, in every area of technology, there are new developments and improvements, and the same applies here. Next generation dealer portals continue to increase in popularity, and the options are varied and again.
A certain level of research is required to ensure a fit that meets your needs, because the system is both a delivery platform and an integration platform that caters to the needs of sales, finance, inventory, F&I, parts, and administration components of the dealership. It also gives customers the capability of purchasing and/or trading their vehicles online.
More often than not, customers have already done their online research prior to stepping foot inside a dealership. Next generation dealership portals are embracing this behaviour and taking it one step further by allowing consumers to purchase automobiles from the comfort of their own home.
The information is all online, but now the capability of following through with the making of a purchase is possible at the click of a button. It’s the flexibility and convenience behind this model that entices consumers and provides greater transparency.
Of course, with any new or emerging technology comes the issue of how best to ensure security. But it’s this type of advancement in technology that can’t be ignored, because it’s not where consumers are heading — they are already there. Online purchasing is an everyday occurrence, and it extends from household items to clothing to furniture — and increasingly, automobiles.
One thing is clear: the benefits of a dealer management system outweigh the challenges. The obvious benefits include improvement in availability at a dealer or market level, the capability to control service department parts volume and inventory, and increased customer satisfaction. It’s a significant decision, but it’s also an investment in the future that can save dealers and OEMs money.
