Does your DMS pass the Profitability Test? It’s time to find out. In a year when people spent less time at your dealership, customer satisfaction also reached an all-time high according to Cox Automotive research. While the reasons for staying home were beyond your control, the ability to deliver top-notch service was in your court. But there’s more to it…
If you have big profit goals for next year, you need to consider the role your DMS partner plays in your success.
It’s time to take stock in your dealership’s biggest, and most critical, digital asset—your DMS. The Dealer Management System is the source of truth for data. All systems pull data from it, and all data points back to the DMS. While many dealers tend to overlook their DMS as merely a utility, it’s actually a critical profit driver. Put your DMS to the test—The Profitability Test—below. If your DMS fails to meet the following six criteria in our list, you should ask yourself, “Why not?”
1. Performance Management
Does your DMS partner show up for you and your team each time you implement new technology? Before your dealership ventures any further into the hybrid online/in-store territory, or adopts any more technology your staff will need to learn, make certain you have a trusted partner who knows a thing or two about working in automotive. If your DMS provider has left your lot before the ink has dried on your contract, you may want to reconsider your relationship. Highly skilled Performance Managers take on change management for your teams. Plus, they help you achieve business objectives and ensure profitability long-term.
2. State-of-the-Art Support
Does your DMS partner show up when things go wrong? Implementing new technology can be scary. If something ever goes wrong, how confident are you that your DMS provider is available to help? Questions, concerns, and fixes that can be overcome through a variety of channels—such as online community forums, chat, and transparent service tickets—keep business running. Beyond the generic ‘bump in the road,’ working with peer groups to discover how best to solve key customer issues, work with OEMs, and overcome obstacles that may improve your staff’s workflows allows new and veteran employees to contribute their knowledge to the greater good.
3. Retaining Top Talent
Does your DMS provide better workflows that improve the way your team functions? The war for talent in our industry is ongoing. Make sure your DMS technology isn’t slowing down your team’s ability to fulfill their assigned roles. The ability to access better customer info ultimately results in a better customer experience. And, removing complicated interfaces, multiple logins, and redundant data entry, allows your staff to thrive in an environment where they can provide better service.
4. Optimize Efficiency
Does your DMS make your dealership processes more efficient? Your DMS isn’t just another expense. It should be an invaluable asset, enabling you to sell more cars, drive profits, and facilitate the kind of buying experience your customers expect. With the right DMS technology, your dealership can facilitate an intuitive, customer-focused car selling experience in a new age of online sales. By integrating intuitively with other dealership technologies (with information that’s shared between platforms), your DMS can give customers a more complete shopping experience, while also eliminating the extra time and hassle involved in trying to coordinate disparate, disconnected systems.
5. Prioritize Integrations
Does your DMS allow you to work with third-party vendors without overcharging fees? Real time, bidirectional technology integrations enable a seamless online to in-store buying experience and allow you to work with the providers and technologies you want. And with the average dealership using seven different technology systems to complete a transaction, make sure your DMS technology isn’t charging hidden integration fees.
6. Your Right to Access Your Data
Does your DMS provide access to your critical data and insights when and where you need them? Data optimization is a critical component of your business. Without it, your ability to create a streamlined and efficient online (or in-person) experience suffers. Consumer data should always be secure, no matter where it is stored. But, your dealership should have the right to full ownership and access of the data. And costs associated with the data should be 100 transparent.
Ready to dive deeper into the why’s and how’s of DMS profitability? Download your own copy of The Dealer’s Guide for Maximizing Profitability with the Right DMS Partner, today. You’ll uncover insights from critical research conducted that shows how real dealers, like you, are optimizing efficiencies and leveraging their DMS partners to make more money.