There’s a raging debate out there. Whether we believe it or not, we’re part of the debate and there’s no other option than to choose sides as the outlook for the future is changing rapidly and so is the automotive industry. Over the last couple of years, hybrid work models have become increasingly popular, not only thanks to the balance they can create in an employee’s work life, but also for how they can provide businesses an upper hand in multiple ways. However, it is really important to look at dealerships specifically and determine whether or not a hybrid work model can be efficient in such a setting. 

Without further ado,  let’s explore some of the ways car dealerships can adopt and implement a hybrid work model to simplify processes and improve their level of efficiency. 

Sales and customer service professionals

The personnel at a dealership includes a lot of sales and customer service professionals, as the main goal of a dealership is to execute sales. A hybrid model can perfectly align with the needs of sales and customer service representatives, given that the majority of their day-to-day involves dealing with customers via email and over the phone, answering inquiries or questions regarding specific vehicles. However, at the same time, they need to be present and available for on-site activities as well. To execute those tasks in the most efficient way, they should be given complete autonomy when it comes to setting up their schedule. A hybrid model is in fact a great way to establish the perfect balance between the two tasks. There’s no denying that sales and customer service reps have a tough job and a hybrid model will allow them to significantly improve their performance.

Another important factor to consider, is that a hybrid model can be amplified using virtual sales and consultations. Sales consultants can leverage technology to showcase vehicles virtually and even close deals. Of course, your team must be trained before this transition towards a hybrid model can be done successfully.

Marketing in the digital world

A dealership’s marketing team will work best within a hybrid model, since most of marketing these days is done through online means. The hybrid model allows the marketing team to work both remotely as well as in-person, depending on the setup of a dealership. However, traditional marketing is still relevant and shouldn’t be neglected. A hybrid model will work best for the marketing team at a dealership, as it allows the team to make the most of both traditional and digital marketing and combine them into one, winning approach.

Training and preparing for a hybrid model

However tempting it may be, the transition towards a hybrid model is no easy feat. The fact is you need to train your employees if you want to move forward with a hybrid model and be successful. All dealerships have various intricate nuances involved in their processes and it is always a good idea to empower employees with certifications and even agile methodologies. Together, with apt training and tests you’ll be able to see if the move towards a hybrid model can be achieved and whether it will be the right step for your business.

A hybrid model can bring various benefits for a car dealership. However, it is highly important that you focus towards creating an ecosystem that supports a healthier environment. This all starts with a positive approach and asking employees what you can do to move forward towards a hybrid model together to make the most of it.

The post Can Dealerships Benefit from Using Hybrid Work Models? appeared first on Modera.

Every business, regardless of its domain, has to function in a streamlined manner, in order to increase efficiency, reduce costs, and boost profits. Enterprise Resource Planning (ERP) software is just what you need when it comes to managing teams efficiently and bringing a high level of synchronization within cross-functional teams.

Why is ERP software required in the automotive industry?

ERP is an all-inclusive and effective solution that helps run the day-to-day operations of a business. It integrates all the departments and centralizes information, eliminating the need for disparate systems to manage different processes. You have all the information at your fingertips, from sales to service, which helps monitor the effectiveness of processes, evaluate productivity, and resolve issues in a timely manner. You save both time and effort, as you don’t have to collate data from multiple systems and generate reports from them. The automotive software empowers dealers to strategize and carry out sales and leasing processes with minimal human intervention.

How your business can benefit

Minimizes operational costs

An automotive ERP software consolidates and integrates disparate systems that exist in your business. For instance, information from departments like finance, marketing, supply chain, inventory, etc. can be gathered and made available from a single central dashboard. It eradicates the need for training employees, eases the process of resource acquisition and makes overall management much simpler. Thus, it can reduce operational costs at various organizational levels.

Inventory management

One of the most important reasons for integrating automotive ERP software into your business is for effective inventory management. This is usually a very tedious job, which can be made easier by the ERP software. It basically digitizes the inventory, so there is no need to organize and keep it updated manually. ERP software automatically keeps track of the inventory, sending out alerts whenever the stock is low.

Enhanced customer support

Customer services can also be improved by using automotive ERP software. When integrated with Customer Relationship Management (CRM software), it can be utilized for following tasks:

1. Expand your target audience by widening overall reach.

2. Nurture leads captured in the sales funnel.

3. Convert leads into sales.

4. Retain customers by forging stronger relationships.

5. Communicate more effectively with customers through every phase of the buying process.

Basically, automotive software improves your understanding of your customers and their needs by analyzing their past purchases and preferences, helps provide customized services, and addresses their requirements thoroughly.

Integrating different teams

The main functionality of automotive ERP software is to bring synchronicity between several departments or teams inside a business. If ERP software is seamlessly integrated into the core of your business, various teams can be combined. For example, automotive service business operations such as supply chain, CRM, management team, and the finance team can all be managed from a single ERP software’s dashboard.

Maintain regulatory compliance

Any automotive business has to comply with numerous regulations such as Federal Information and Security Management Act, Sarbanes-Oxley Act, etc. Automotive ERP software comes with built-in modules that specifically handle regulatory compliance and ensure that the business adheres to all compliance requirements. The software automatically generates reports that have to be submitted to relevant regulatory bodies.

Generating analytics

Automotive ERP software lets you generate a variety of reports such as expense statements, inventory level status, income reports, sales reports, and a lot more. The capability of generating timely reports brings agility into the automotive business, and empowers you to make critical decisions based on data, and respond rapidly to crucial situations. You don’t have to depend on anyone to create and access reports or interpret data.

The post How Your Business Can Benefit from Automotive ERP Software appeared first on Modera.

Originally published in Swedbank’s private banking client magazine “Fookus”.

Looking to buy an electric car? The bold-lined sporty Chinese SUV Aiways U6 would be a trendy choice. Want to go for a test drive? Sure! Just schedule a time at Euronics and the car will be prepped and ready for you. Enjoyed the ride? Great! Get all the necessary steps of the purchase process done on the manufacturer’s website and the car will be delivered to your doorstep.

At first glance, the above story seems to be a bit off, to put it mildly. But this is actually already the reality in Germany, as this is exactly how this specific Chinese car can be purchased over there. And there’s certainly no shortage of interest since one Euronics store sees around 40 test drives a week. 

According to the French consulting company Inovev, the percentage of Chinese electric vehicles in European new electric car sales will grow from the current 6% to a couple dozen percent by 2030. That’s about a million cars per year. 

Changes in the sales model and Chinese car brands are some of the biggest new trends in the European car market. This time, Raido Toonekurg, the chairman of the board of automotive software company Modera, will share his expert opinion on what the European car market has got coming in the next few years. 

Here come the electric vehicles

There’s no turning back when it comes to the rule of electric vehicles. This trend is led by a combination of factors. Firstly, a change in people’s thought patterns where an environmentally friendly car is now a conscious choice. Secondly, the rules and regulations set forth by legislators, and thirdly the decisions of car manufacturers. 

The European Union’s decision to only allow the sale of cars and vans that create zero CO₂ emissions from 2035 is both a clear sign and an assurance to manufacturers as to where to direct their focus from hereon.  

The permission to sell new cars with an internal combustion engine after 2030 does however leave the door open in case not enough lithium needed for batteries can be mined by then, but this does not affect the trend. 

According to Raido, big manufacturers have taken a clear direction towards electric vehicles, and they’re ambitions are great. 

Volkswagen Group, which includes Volkswagen, Audi, Škoda, Seat, Porche and many others and sold a quarter of all the new cars in Europe, has promised that by 2030, 70% of all the cars they sell are electric vehicles. Stellantis, which includes Peugeot, Fiat, Citroën, Opel, Jeep, DS, Lancia and Alfa Romeo and owns about a fifth of the market, is aiming to reach a full 100% by the same time – an ambition shared by the Renault Group with a 10% market share. 

Currently, manufacturers are actively trying to turn their entire selection electric. Raido is certain that this will be achieved within the next two to three years. 

Chinese electric vehicles – a rising trend

Last year, the most sold models of electric vehicles in Europe were Tesla Model Y and Model 3 with a combined market share of 8%. There really are no outstanding leaders on the market at this point. 

On a global scale, Chinese manufacturers have taken a solid lead. Chinese BYD Auto sold over 1.8 million electric vehicles last year and is a clear global leader with a 20% market share. You should memorize the names of their three most popular models Song, Qin and Han, as BYD is looking to bring these models to the European market this year. According to Raido, Chinese electric vehicle manufacturers have finally gotten over the hump, making the increase of their models in the European market one of the biggest trends. 

The selling points are strong. High quality when it comes to both durability and driving range, as well as appearance and the design of the salon. Of course we can’t forget the price as Chinese cars tend to be cheaper especially in the more low-cost price range. At the same time, a Chinese car falling in the average car price range in Europe, usually comes with several premium-class features. 

Although, thus far, the most sold electric vehicles in Europe belonged to Chinese companies, but were initially under European brands such as MG and Polestar as well ask Lynk & Co, now more and more fully Chinese brands like Aiways, NIO, XPeng, BYD and others are finding their footing on the market. 

The consulting firm Inovev believes that it’s quite a conservative expectation that in seven years every fifth electric vehicle sold in Europe will be by a Chinese brand. 

Car from the web and straight from the manufacturer

The rise of Chinese electric vehicles will also change the traditional sales model. Carlos Tavares, the head of Stellantis, has said that if European manufacturers want to stay in competition, they need to find ways to cut costs. One way is to reduce the share of the price given to resellers.

An upcoming trend is buying cars straight from the manufacturers. In Sweden, Mercedes has already started with this model and many other European countries are following their lead. For example, the same decision has been made by BMW and Stellantis Group. Resellers will enjoy the pleasure of organizing test drives along with some compensation, but the buying and selling will happen between the manufacturer and the consumer. 

Some Chinese brands who don’t have an effective cooperation agreement with European resellers are trying out new ways of selling. This is where the story described at the beginning of this article falls under – customers looking to buy an Aiways car can take a test drive at an Euronics store in Germany. 

Although 40 test drives a week per store is not a small number, in the end, what counts is still how many of those drives turn into actual purchases. It would probably be naive to expect a strong reseller-type sales approach from Euronics. Since it’s yet to be determined how significant of a role reseller’s marketing approach plays in finalizing a sale, companies like Toyota, Kia and Renault are still continuing with their existing sales model for now. 

From a buyer’s perspective, it really doesn’t matter whether they’re checking out their choices on the manufacturer’s or reseller’s website and who they end up finalizing the deal with. As a trend however, it’s worth mentioning that the entire car buying process from picking out the model and putting together the ideal fit, to finalizing the leasing and buying contracts, will become increasingly more digital. 

Decreasing importance of owning a car

The time when a kid would work and save money to make their dream of owning a car a reality, is now in the past. Owning a car, or really anything material is not as important to young people anymore and their focus has shifted on being more environmentally friendly. At the same time, the actual need for a personal car is also declining.

A short term rental is easy and becoming even more simple. Numerous car rental companies are making it very convenient to rent a car. Some companies can even deliver the rental car at your doorstep by managing it remotely. These fast developing solutions are also reducing the need for a second or third family car. 

There’s an increasing selection of 4‒6 month rentals. For example, Modera, whose system includes various car sellers, is currently developing an easy solution to rent a car for a few months. 

Delivery service keeps evolving. We’ll see an increasing number of cars that are bringing things right to our doorstep. 

Raido Toonekurg believes that these trends will not drastically reduce the need for new cars however, at least not on a global scale. Big countries such as China and India are just getting started with owning their cars and driving. 

When will we see self-driving cars?

There’s been a lot of talk about self-driving cars, but at one of the most influential technology exhibitions CES, held at the beginning of the year in the USA, big car manufacturers shared a clear message that no great breakthroughs are expected in that area in the next few years. At this time, everyone’s focused on developing electric vehicles and changing their sales models. Autonomous vehicles will evolve where they’re used in a limited area and on specific trajectories. 

On a higher level, where artificial intelligence is driving a car in general traffic without the need for human interaction, there are still many unanswered questions even outside the technology. For example, a programmer would have to install the right choice in the artificial brain in a situation where, in case of an inevitable accident, the car would either hit an 8 year old kid or an 80 year old person. Who’s going to make this decision? Who’s going to be responsible for the end result in that case – would it be the manufacturer? Manufacturers are not eagerly rushing into situations full of potential lawsuits and court cases. 

Exceptional infotainment

Let’s end on a lighter note however. Thus far, trying to navigate the touch screen of a car has proven to be much less enjoyable than tapping away on your smartphone. Luckily, there’s reason to believe this is about to change. Finally, car manufacturers have started to focus more on making the info and entertainment systems in the cars easier and more intuitive. 

What’s going to happen with the prices? 

Currently, the price difference between electric vehicles and cars with internal combustion engines is the smallest in the premium-class car range. As a trend, we can see that prices are becoming more uniform in all classes. On one hand, cheaper electric vehicles are entering the market, while on the other hand, the price for petrol cars is on the rise. 

One of the reasons for such increase in pricing are the taxes set forth by governments on cars producing CO₂ emissions. The leasing percentage and insurance payment will also become more dependent on the size of the carbon footprint of the car and the loan applicant. 

The sale of new electric vehicles in the European Union

The light blue bar shows the share of cars running on different types of fuel in new vehicle sales in 2021 and the dark blue bar in 2022. The orange bar shows the percentage increase or decrease in the share compared to 2021. The share of electric cars increased the most and the share of diesel cars decreased.

Electric car sales by country

While electric cars made up 3,4% (731 cars) of all new car sales in Estonia last year, in Norway, it was a whopping 79,3% (138 207 cars). The biggest electric car markets in Europe are Germany (471 394 new electric vehicles sold last year), the UK (267 203) and France (203 122). 

The post New Trends in the Car Market appeared first on Modera.

The automotive industry is rapidly undergoing a sea of changes, especially after embracing digital transformation. According to ABI Research, a whopping US$100bn has been invested by car manufacturers worldwide in 2022, in order to modernize this sector. The figure is set to hit US$238bn a year by the end of the decade.

What are the trends that will define the industry in 2023 and beyond?

Vehicle ownership

There are several reasons why people are changing the way they purchase and use cars. The rising costs of owning a car and other expenses, are playing a huge role in consumers choosing not to own a car at all. Vehicle owners are also becoming more environmentally conscious, and this is sparking a growing trend in vehicle sharing and carpooling. Many people are also working from home, so they don’t feel the need to own a car. Dealers have to factor in these socioeconomic trends while selling vehicles.

More subscription-based services

In a few years, cars could become something that people use only when they need to. It indicates a change in consumer behavior, as they might expect more personalized features such as the position setting of the steering wheel or a person’s favorite radio station will automatically synchronize across the range of vehicles to which a consumer has access, regardless of brand, model or ride-hailing company. As a vehicle becomes an extension of a home and office, retail and business apps are expected to arrive in cars. Such consumer demands of synchronized ecosystems will push dealerships to sell more subscription-based, app-driven operating models.

Autonomous driving software

In-vehicle usage has to be encouraged, while focusing on the complete safety of its occupants. It means autonomous driving (AD) software needs to be operational in most, if not all circumstances. However, this is easier said than done, as it requires millions of cumulated hours of simulation and validation of AD algorithms. The shift towards a more software-defined vehicle will force carmakers to reduce hardware and software dependencies, where software runs only on specific hardware. Dealers have to work harder to convince consumers to adapt to this change.

New vehicle development

Cloud and artificial intelligence (AI) is all set to transform vehicles. The computational power of the cloud and optimization opportunities provided by AI and machine learning (ML) have to be leveraged. Vehicles are becoming more connected, so consumers are demanding more features as well. It will also help to boost cyber security, an area that far too often goes overlooked in the car industry. For dealers, AI can help to manage the inventory more efficiently, by predicting best-selling models. It can assist dealerships in making more informed decisions about which vehicles to stock and when to order new inventory. 

Customer experience

The attention span of customers has become extremely limited. If they aren’t satisfied while visiting your dealership, it takes them seconds to move on to your competition. As mentioned above, with the usage of AI, chatbots can be created to handle customer queries, while providing prompt and accurate responses. These chatbots can help dealerships offer better customer service and build stronger relationships over time. Free up sales personnel at your dealership for more important tasks – AI-powered virtual assistants can guide customers through the buying process (initially) and provide personalized recommendations based on their preferences.

It is an exciting time for the car market, brought on by digital transformation and other factors. Car sales are yet to go back to pre-pandemic levels, but if dealerships can adapt to market trends and demands, they can easily tweak their offerings for customers and boost revenue.

The post Top 5 Lessons from the Automotive Industry in 2023 appeared first on Modera.

There are several ways to build a stronger relationship with your customers, but it all boils down to some old-fashioned face-to-face time. If you’re aiming to get your potential car buyers from your online sales journey to your actual store, we’re here to share some great tactics. From reviews and social media, to using your network and connections, there’s a lot to test out.

Consumer behavior in the auto industry is undergoing a swift change these days. People find that it is more convenient to browse vehicles, configure the features they need, and even scout for financing options – all online. It is up to you to come up with innovative approaches that would tempt customers into visiting your showroom. They should feel that it is worth their time to actually come in, look around the dealership, and then decide what vehicle they wish to buy. Without further ado, here are some new tactics to try out.

1. Get customers to give reviews

Prospects often make up their mind after just reading reviews – it makes them feel as if they can trust the business. But these reviews can’t be generalized. Customers have to highlight exactly why they felt good after visiting your showroom. They have to talk about the in-person shopping experience and services offered. Ask them to write about the aspects that attracted them. Why not ask customers to leave a review when they are at the showroom? The experience is fresh in their minds, so reviews are likely to be more honest. Set up a tablet in the middle of the showroom or waiting room, and make sure the Google review page is pinned on the device.

2. Use social media to your advantage

Nowadays, social media plays an integral role in influencing the car buying process. Consumers are increasingly turning to social media before making up their minds. This makes social media a great marketing channel for car dealerships to engage new customers (and re-engage existing ones). You can use social media to share posts that link to relevant pages on your website, and engage users accordingly. Paid ad packages work great on social media – they let you target a specific segment, so you reach the most relevant audience. Thus, you get in touch with potential customers who have actively entered your sales funnel.

3. Bank on local partnerships

You don’t have to depend on digital marketing techniques all the time. Talk to local businesses and build partnerships to get high quality leads. Collaborate with other members of the auto industry (not those in direct competition of course) to start a mutually beneficial relationship that expands both of your networks. For instance, you can talk to a rideshare company, where your dealership suggests their app whenever a customer has their car in your showroom. In return, their company can refer current or prospective drivers to your dealership. Other companies you can consider are local car washes, auto parts stores, car detailing shops, and even auto insurance companies.

4. Referral programs are effective

Expert marketers have agreed that referral programs have a lower cost per lead as compared to any other channel. These programs work based solely on trust. Getting the support of an existing customer can work wonders in gaining the trust of their friends, family members, colleagues, etc. For every lead that you are able to convert successfully, you can give incentives to the referrer, such as gift cards, extended warranties, free service evaluations up to a certain value, cash bonuses, or a discount on a particular service. Referral programs can even include employees, where they are offered bonuses if their leads turn into successful sales.

5. Come up with innovative video content

Creating an informative and compelling video attracts viewers to your showroom as it provides details about what they are looking for. You give them a glimpse of the vehicles in your inventory – they can check out the different features, match cars to their requirements, and so on. Videos help customers view your product in a more cost-effective manner. They are more likely to visit if they have a clear visual of what they want, and nothing helps them envision their dream car like an appealing video. A dull and drab text ad isn’t going to cut it anymore!

6. Organize community events

Ultimately, people will visit your showroom only if you provide an enjoyable experience. Sponsoring, hosting, and setting up a booth at local events are excellent ways to build up a solid rapport at a more personal level. If you take part in events organized by others, make sure you have a target audience among the attendees. Encourage them to provide contact information by offering incentives like discounts on repair services. When you host your own event, do it at your showroom. Thus, you can get good leads, while getting the community under your roof at the same time. During these events, you may offer test drives of a new car model and deals on cars to attract customers.

7. Lastly, include a Call to Action on your website

Texting is an amazing way to follow-up and stay in touch with customers. When you add a “Text Us” button on your website and other online listings, it gives customers a chance to connect directly. Customers appreciate the fact that you are open to communicating on a more personal level. The faster you respond to prospective customers, the more likely it is that you will get their business. You can even set up an autoresponder with some key resources that gives the customer a reply within seconds while giving a real salesperson enough time to respond personally.

Remember, none of the strategies will work overnight – it could be weeks before you notice any lucrative results. It is necessary to be patient and implement the strategies mentioned above; you can decide later on what works for you and what doesn’t. Meanwhile, keep your focus on making sure your online presence is impeccable thanks to a high-quality website as well, as most of your customers will go through at least a part of their shopping journey online.

The post 7 Fresh Ideas to Attract Customers to Your Showroom appeared first on Modera.

Benefits of Retention

Dealerships that provide an excellent customer experience and employ tactics to retain customers will be successful in 2023. In this guide, we will outline how to increase dealership customer retention.

• Some benefits of increased customer retention are increased profits and reduced marketing costs. When a dealership retains a customer, they have an advocate for their business. The customer is likely to recommend the dealership to friends and family, which can result in an increase in business.
• In order to increase retention, dealerships should focus on building relationships with their customers. This can be done by providing excellent customer service and listening to the needs of customers. Dealerships should also focus on engaging the customer and providing a positive experience.

Modernizing Dealership Digital Experiences

• Your dealership is in a competitive market, and customer retention is vital for success. In order to keep the customers coming back, you need to offer them a digital experience that is modern and meets their needs.
• Your customers are used to a certain level of convenience and flexibility from online retailers. They expect to be able to shop online, on their own time, and have their purchases delivered directly to their door. They also expect a personalized experience, catered specifically to their interests and needs.
• You can meet these expectations by modernizing your dealership’s digital experiences. This includes updating your website, creating a mobile app, and using social media platforms to engage with customers. By providing a digital experience that is convenient, flexible, and personalized, you can increase customer retention and build long-term relationships with your clients.

Adapting Customer Service Strategies

Dealerships need to keep up with the times by adapting their customer service strategies. In 2023, customers will expect more from dealerships in terms of service and convenience.

Some ways that dealerships can adapt their customer service strategies include:

• Offering express service for urgent repairs
• Installing self-service kiosks for routine tasks such as oil changes and tire rotations
• Allowing customers to book appointments and track the status of their vehicle repairs online
• Offering shuttle services to take customers to and from work or home while their car is being serviced
• Providing a waiting area with complimentary Wi-Fi and refreshments

Investing in Employee Training and Development

• You can’t underestimate the importance of investing in your employees. This starts with providing staff training and development opportunities that will ensure they have the skills and knowledge required to provide excellent customer service. It’s important to focus on upskilling existing staff as well as hiring new team members who have specialized experience in automotive retail to best serve your customers.
• By investing in comprehensive employee training and development, you’ll be able to create a service culture that is focused on creating meaningful relationships with customers. This will help your team understand the value of customer loyalty, as well as how to deliver outstanding service that meets individual customer needs. 
• Additionally, regular training programs can help your employees stay up-to-date on industry trends, so they are better able to meet customer expectations.

Developing Loyalty Programs for Long-Term Engagement

• Developing loyalty programs for long-term engagement is an effective way to increase customer retention in 2023. With a loyalty program, customers can easily accumulate points and discounts based on their purchases which will encourage them to buy more often. Loyalty programs are also a great way to reward loyal customers with exclusive offers to keep them coming back.
• In developing your loyalty program, it’s important to consider things like how rewards are earned, the types of rewards available, and how easy it is for customers to understand and use the program. It’s also important to make sure that the rewards offered are actually beneficial to the customer. Make sure that they aren’t too difficult or expensive for your dealership to provide. Lastly, make sure that there is a clear communication strategy in place for letting customers know about your program and any updates or changes you may have made.

Utilizing Data-Driven Insights to Increase Customer Retention

Data-driven insights are becoming increasingly important for dealerships to understand how customers interact with their business. By comparing customer data to industry trends, dealerships can gain a better understanding of the success of their operations. Additionally, data-driven insights allow businesses to understand their customer preferences and behaviors, which can be used to tailor their offerings and increase customer loyalty.

Dealerships can use data-driven insights to customize their sales and marketing processes. The analysis of customer data can provide insight into which type of customer is most likely to buy a particular product or service, allowing dealerships to allocate resources accordingly. Similarly, dealerships can also assess data to identify which marketing tactics have been most successful in the past. By leveraging past successes, dealerships can invest in tactics that have proven to be effective in engaging customers.

Conclusion

To sum up, following the tips above should help increase dealership customer retention rates in 2023. However, it’s important to remember that not every dealership will have the same results, as customer retention is based on a variety of factors, such as the quality of the products and services offered, the attitude of the employees, and the customer’s overall experience.

The post How to increase dealership customer retention in 2023 appeared first on Modera.

You must have heard about Customer Relationship Management Software and Dealer Management Software being used at car dealerships these days. The reason is simple – to offer an exceptional car buying experience. So expecptional that customers spread positive word-of-mouth, are satisfied with services, and eventually return as repeat customers. But do you need both Automotive CRM and DMS? What is the difference between the two? Let us find out!

What is automotive CRM Relationship Management Software (CRM)?

An automotive CRM software, enables businesses to enhance their relationship with existing customers. And also to find new prospective customers or win back former customers. When your dealership generates revenues by selling cars and offering after-sales services to customers, then CRM software is a must. Unless all of your new customers simply walk into your store, you have to invest significant time in luring them. Dealerships generally hire salespeople to get new customers. But in order to be efficient and productive, even the best salespeople require a system to help them. That is why you require a CMS as it offers the following benefits:

• Better customer satisfaction.
• Boost in revenue.
• Better internal communication between departments.

There are many advantages to using a dealership CRM software, but it is important to find DMS that syncs with it as well.

What are the 3 types of CRM systems?

The right CRM system can help your dealership communicate with customers and create a healthy, long-lasting relationship. But before purchasing automotive CRM software, it is imperative to understand the differences. There are three main types – operational, analytical and collaborative. Once you know more, you can determine which is the best suited for your business.

A CRM system manages and analyzes customer data and interactions to improve customer service, aid in retention and drive sales growth. Over time, the number of tools and functions of a CRM system has expanded to cover every period in the customer lifecycle. But how does a dealership know which of the three types of CRM system is right for it? Let us take a peek:

1) Operational CRM

Operational CRM streamlines various processes for customer relationships and helps apply them to the central business process. It is used to generate leads, convert them into contacts, and provide the service infrastructure needed to retain customers. And also blends all business processes, such as customer service, marketing and sales, into a single unit within a dealership. Its primary goal is to help streamline business operations, centralize customer interactions and sales, marketing processes, and service and support efforts in one place. Moreover, it stores information on customers, leads and employees using a shared platform to better support existing and potential customers.

A CRM system manages and analyzes customer data and interactions to improve customer service, aid in retention and drive sales growth.  An operational CRM system captures customer details and uses them to provide service across the customer lifecycle. Including marketing, sales and service automation. Take a look:

1.1.) Marketing automation

While marketing activities help businesses communicate information about their products and services to their existing and potential customer base. Automation aims to find the best way to offer products and approach potential customers using campaign management modules. Marketing automation also helps dealerships decide on effective channels. Such as email, phone calls, ads on social media and more, in order to target potential customers.

1.2) Sales automation

Sales automation organizes information to help businesses meet customers’ needs and increase sales more efficiently and effectively. It includes various CRM sales modules such as lead management, contact management and sales forecasting.

1.3) Service automation

This component is the connection point between service reps or teams and customers. Its functionality covers many things, including setting up inboxes that aggregate customer emails, coordinating live chats and setting up chatbots. Further, service automation provides ways to delegate service tasks to reps via ticketing systems and can include knowledge base or FAQ pages as additional features.

2) Analytical CRM

It enables organizations to better understand the data gathered on customers and their interactions with the business. It is a vital resource for turning large amounts of data into actionable insights. The primary goal of an analytical automotive CRM is to leverage customer data into trends and actionable insights the dealership can use to improve the customer experience. Data from an analytical CRM can include customer preferences, channels, touchpoints, trends, forecasting and more.

Analytical CRM systems do a great job when it comes to helping dealerships parse large amounts of data. It helps devise strategies to develop new leads, increase customer retention and create efficiencies for the sales and marketing departments.

However, while analytical CRM systems can help understand a large amount of data, they can also be more technical and difficult to understand without dedicated staff. Additionally, the insights gleaned from the data are only as good as the data entered. And inconsistent entries can skew the results. Analytical CRM systems are best for mid-size and large businesses that gather large amounts of data and want to distill that data into trends and insights.

3) Collaborative CRM

Also known as strategic CRM, it bridges the gap between teams and departments to share information and create a hassle-free customer experience. It enables different teams or functional areas in an organization to share customer data. The result is that everyone uses the same knowledge base about the customers to make decisions. It is imperative for creating a holistic approach to managing customer relationships. While operational automotive CRM tools often focus on marketing and sales, collaborative CRM systems focus primarily on customer service. A collaborative CRM system has two components:

• Interaction management – it tracks the touchpoints between a business and its customers through various communication channels. Interaction management helps the dealership manage and keep track of each exchange to ensure customers are not over-communicated. If that happens, customers might feel like they are being hounded and block all forms of communication from the dealership.
• Channel management – it uses the information gathered from interaction management to help identify the best communication channel to use for a particular customer.

This type of CRM system works to improve the information shared between the sales, marketing and customer support departments. Since these teams work separately, a collaborative CRM tool can help break down those silos to address customer needs and manage customer relationships effectively. However, given this system’s interdependent, collaborative nature, it’ is essential to use it correctly. Otherwise, the connection between touchpoints could break down, and the customer experience will suffer. Dealerships that operate across multiple locations or work in siloed teams can use a collaborative CRM system to streamline how they gather customer information and communicate with them.

What is a Dealership Management System (DMS)?

A dealership management system (DMS) is a business management software provider for dealerships to help them manage their day-to-day business activities. But most systems tend to be generic and are a one-size-fits-all solution for different businesses. The generic options aren’t equipped to handle more specific requirements tailored to the automotive industry, such as parts and service management.

What does a DMS do?

Consider the various departments of a dealership such as sales, finance, customer service and so on. A dealership has a lot of moving parts, which is why it requires tremendous organization to keep those parts running smoothly.

Some dealerships still keep track of departments manually by using pen and paper or a punch card system. These methods slow down processes and leave room for human error. Although using different systems for various departments may work for a period when your dealership is still small, the problem is that these older techniques can’t meet the requirements of a growing business.

While dealer management systems have advanced significantly over the last few decades, many industries still lack industry-specific, “all-in-one” systems. Systems that are customized as per their business model. Dealers will benefit most from a fully integrated DMS that streamlines all the operational areas of a dealership in one place. Allowing the different departments of a dealership to operate seamlessly with one another.

Why is DMS required?

Pretty much every dealership can benefit from having a DMS. Be it sales, finance, service, parts, or IT, a DMS allows dealers to manage all aspects of their business and reduce inefficiencies between departments. Anyone at a dealership can use a DMS to boost productivity and efficiency, including service managers, accountants, technicians, and more.

Although there are many DMS solutions out there, you will have the most success choosing the one that caters specifically to the automotive industry. Ultimately, it is not the computer system that will solve business problems – it is the people who solve problems. But if you spend several hours trying to figure out what the problem is, then you have less time fixing it. The challenge is that as your dealership expands, your problems become more complex. Dealers with multiple locations or that are expanding fast may find that switching to the right DMS solution will help increase their efficiency. And resolve those complex problems faster and more effectively.

The good news is that there are dealership management solutions created for specific types of dealers. But if you are not aware of the available options, you may end up with a disappointing generic platform. At the same time, it is indeed difficult to sift through all the generic options out there to find your industry-specific DMS.

What is the relationship between Automotive CRM and DMS?

In order to use the information provided by the automotive CRM in an effective manner, you need DMS. The CRM system collects loads of data about customers in the form of emails, surveys, notes, call records and more. Most of the time, your employees are working with a CRM system in order to find new customers or sell to existing ones. But customer relationships require a lot of paperwork. Your employees may have to generate new sales contracts, find existing paperwork, or add specific sales orders to your customer files.

If employees constantly have to leave your CRM in order to search for emails, contracts, or other documents, means they are spending unnecessary time and effort on non-productive tasks. Switching between tasks can cause staff to lose focus. In the meantime, it takes a lot longer to respond to your customers. And to get the job done because your employees are searching for documentation. That is exactly why you should integrate the CRM and DMS systems.

Should you use automotive CRM and DMS together?

If your salespeople can work inside of your CRM and generate new business, they are doing what they do best. Integrating your CRM with DMS ensures that they are finding new customers instead of hunting down paperwork. Or collecting new paperwork outside of your CRM. While integrating your CRM with your DMS may only save your salespeople a few minutes on each transaction, this time adds up.

CRM is essential for your business, and DMS is an essential office solution for information management. Switching to a paperless office with dealer management software is also important if you don’t want to waste time looking for paperwork. Fortunately, Automotive CRM and DMS can work well together, as long as you choose the right solution.

Regardless of what type of CRM your company uses, dealer management software is necessary to connect the dots. Your CRM provides you with important sales data while your document management software collects internal information, too, including your financial data. Your DMS helps you organize all of your documents and records in a meaningful way. Instead of searching through files on your employees’ computers, emails, or filing cabinets, there is only one place you need to search when you need a document.

Why is CMS and DMS integration necessary?

Automotive CRM without DMS is like a car without fuel, only worse. Think of customer relationship management, as a perfect library where everything is tidily arranged. It manages your client relationships and organizes all the information about your interactions with customers.  But even with that treasure trove of information, you still need to do some heavy lifting to effectively useit. That is where DMS plays a crucial role. Adopting a full integration is where you really start to see results, with reductions in labor hours of almost 50%, all while reducing costs across the board. Simply put, Automotive CRM and DMS integration is the way of the future.

What is the difference between Automotive CRM and DMS?

CRM centralizes your business’s information about customer interactions, automating interactions and outreach while tracking customer journeys. Whether a customer is making a purchase, getting help, or interacting with one of your ads. CRM takes all that data and rolls it up into one tidy package. 

DMS is also all about centralization. It streamlines business operations by taking your documents — from contracts to text files to emails, scans, and more — and organizes them in an easily manageable repository. So what are the benefits? No more wasting time searching for the right document, and no more waiting to seal the deal. 

So how does a Automotive CRM and DMS integration work?

Think of it this way. Your CRM gives you a more complete picture of your customers and tells you what you need to do. DMS lets you actually do it. In real-world terms, your employees might work with a CRM to sell more cars to customers, while the DMS provides them with contracts and other paperwork to speed up the process.  Automotive CRM and DMS can save your business time and money on their own. But put them together, and the positive results can be exponential. Integration of automotive crm and dms can help in the following way:

• Workflow automation – with an integrated system, sending documents over email is a thing of the past. That means no more missing contracts and no more lag-time. Your documents are automatically organized and sent to the right place by your CRM. Exchange-heavy processes such as onboarding and training can be sped up dramatically. 
• Costs savings – your business is trying to generate and find new customers. CRM makes that process easier, but adding DMS to the mix kicks it up a notch. Every minute not spent chasing after a document is another minute that can be spent making sales and boosting revenue. And over thousands of interactions, that time-saving quickly adds up to significant cost savings.
• Time saved on manual data copy-paste – a DMS will keep your documents organized, but filling them out can still be a labor-intensive process. Integrating with a CRM system means that document templates can be auto-filled with the right information. In other words, no more manual copy-and-pasting, so hours are saved.

In summary

For salespeople and customer representatives, Automotive CRM and DMS (dealer management system) integration can speed up every interaction with customers. For project managers, a smoothly functioning team is the dream. And if you are not hunting down documents, it frees up more time for big-picture thinking and high-level strategizing. Ideally, it is best to have both software at a dealership, so it can function smoothly, but please conduct sufficient research on the types of automotive CRM and DMS available so you could decide which is the best suited for your business.

The post Difference between Automotive CRM and DMS? appeared first on Modera.

How to Set up a Car Showroom

Those who have a passion for sedans and roadsters, and possess an entrepreneurial flair, should seriously think of setting up a car showroom. But keep in mind, it requires a lot of startup capital, extensive licensing, legal provisions and brand partnerships, and much more. But if you can execute it properly, it can be a significantly lucrative operation, with huge room for expansion. Let’s get started and see how to set up a car showroom!

Check out what the numbers say

The amount of startup capital could range from a few hundred thousand dollars to a couple of million, depending upon the type of inventory you wish to stock. Of course, you can also anticipate higher startup costs if you are franchising brand-name vehicles than if you are dealing in local second-hand cars. Some expenses are one-time, while others are on-going. These are the type of costs to bear in mind:

• Rent for the lot, parking, garage, business office and service centre.
• Early inventory.
• Technology such as computers, phones, printers, dealership CRM software, website development etc.
• Employee salaries.
• Bonds and licensing.
• Franchise fee (if applicable).

The type of dealership matters

Do you wish to be a franchised reseller of an existing, established brand, or an independent front? What about selling new or used cars?

• Franchise – entering into an agreement with big automakers and getting a license to sell their vehicles.
• Independent – no contracts with a major auto manufacturer, so you have a wide selection of brands in your showroom.
• New – selling only new vehicles that are the latest models.
• Used – selling vehicles that are second-hand and could be as old as a decade.

Depending on your financial situation, it is important to consider which business model is more doable.

Take care of legal requirements

There is an enormous list of legal requirements you must adhere to. Although it isn’t possible to cover all, here are some of them:

• Visit a state or provincial government location and apply for a business license and a dealer’s license. 
• Pass a criminal background check or conduct a personal questionnaire from a licensing department. 
• Pass a mandated deal training course and an inspection of your dealer premises. 
• Obtain an employee identification number and state/provincial tax number. 
• Apply for several dealer plates and pay the necessary fees. 
• Abide by full disclosure regulations on all known mechanical issues with your fleet of used cars (if applicable). 
• Submit copies of your insurance policy and auto dealer surety bond agreement.

Depending upon your jurisdiction, there could be additional compliance requirements as well.

Don’t skip market research

It is imperative to conduct market research to know about the demand for your products and services. You are managing an extensive selection of significantly-priced automobiles, so you have to be thorough.

• Find out the number of vehicles sold in your vicinity over the last 12 to 18 months.
• Compute the currency amount of sales for your types of products and estimate how much of it you can actually attract.
• Determine the types of cars most sold in your area (sedans, trucks, sports cars, etc.). It would also be prudent to identify the brands of automobiles, too.
• Decide how you will advertise your showroom and what kind of marketing campaigns you will initiate. 
• Identify either your ideal customer, or a typical consumer in your area (age, gender, employment and income level). 
• How many existing car dealers do business in your market? This is necessary for assessing competition.
• Learn where most motorists get their vehicles serviced, such as a dealership or local repair shop. 

Keep in mind that this is a massive entrepreneurial investment; you need to think about every avenue of the industry and consider all possibilities. It is critical to understand who will be your primary demographic and how you can pad your bottom line.

Do obtain licensing and insurance

A fully-fledged dealership has to go through proper channels to ensure that it possesses sufficient licensing, insurance, and bonding. Without these features, your showroom and dealership is always under threat of being shut down, or could face legal hurdles. Moreover, all dealerships need to purchase comprehensive insurance coverage. The most common insurance products are general liability, lot coverage, inventory loss and property damage. With bonding, you will need a surety bond, so you are shielded from contract defaults, whether it is with a wholesaler or a vendor.  A surety bond is critical to safeguard your transactions, even if they are completed with the most reliable third-party. After all, you never know what can happen. 

Hire the right people

Of course, there is no point in opening a car showroom if you can’t hire adequate sales personnel. Being a salesperson isn’t easy at all! It requires a knack, flair and strong perspicacity. Whether you sell used BMWs or a new Honda Civic, every sales agent needs to apply a diverse array of strategies to execute a transaction. It is of the utmost importance to communicate effectively with potential customers. Don’t worry – some of the initial transactions might not be successful, but your employees will learn as you grow over the years.

There are many more aspects involved when it comes to setting up a showroom, so you have to cover all the bases before getting started. Knowing how to set up a car showroom means building an inventory, assessing a service department, establishing an online presence, etc. are equally important. So make sure you don’t miss out anything!

The post How to Set up a Car Showroom? appeared first on Modera.

In today’s extremely competitive industry, it is imperative that your car dealership has a cutting-edge dealership website that can attract customers and retain them as well. It could make the difference between a customer who is merely browsing and the one who wants to actually purchase a vehicle. So if your car dealership doesn’t have a website yet or its not meetind demands of todays customers expectations, it is time to start looking at various automotive website solutions.

Why is important to have automotive focused website system?

The ability to make a sale depends on how much of that time you capture online, and the experience you create for them, when customers visit your dealership website. It should be consistently updated to display the most up to date and accurate information about your dealership and your vehicle inventory. With so many consumers doing a large share of research on the Internet before they even walk into a dealership, an engaging automotive website can be the key to attract, engage, and convert your web visitors into buying customers. Most dealerships however, have some work to do in this category.

Apart from captivating visuals and clear, informative and high quality content, consumers will benefit from:

• Full vehicle detail pages with photos and videos that explain features and specs.
• Accurate pricing information.
• Comparison guides that explain the differences between similar models.
• Trade-in values and information so consumers can get an idea of their budget.

If your current dealership website is not marketing your business the way it should be, it might be time for a redesign. If you want your dealership to become a leader in sales and automobile marketing, an engaging automotive website is the best place to start.

The online experience in car buying process is more vital than ever!

Retail lessons from businesses’ adjustments to the Covid-19 pandemic and related shutdowns have been complex and varied. And have included a focus on making sales with little or no physical contact. A good automotive website solution allows easy communication between dealership representatives and customers. As well as serving as a virtual showroom to get the buying process started. When this happens, the path to purchase changes into a more modern, efficient, customer-friendly approach!

For many years, the all-online car sale was not an option for shoppers, due to the need for processes such as F&I and paperwork to take place in person. This is changing too. The rise of cirtual F&I, accomplished through video chat meetings, has empowered many dealerships that have a sufficient technology integration and staff knowledge.

While this focus on online retail has seen its importance and urgency increase due to the Covid-19 crisis, it should not be mistaken for an emergency measure that will be forgotten when people feel safe congregating in public again. When customers can accomplish dealer interactions online, they reduce the time spent in the showroom. This, in turn, makes those customers feel less pressure, which boosts their experience. People who have positive car-buying experiences enabled by strong online resources may not just become buyers, but satisfied long-term customers who are happy to deal with your dealership for service and future purchases.

What is the best solution for dealership website?

To really stand out you need a website building system that is specific to the automotive industry. To make sure that this is accessible from everywere and everyone on your team, you need cloud-based website content management system that can help to build an incredible automotive website to boost sales and revenue. You can’t function without an online presence these days. Even if you have a dealership website, it must have a proper structure and the correct tools and elements.

Customer experience is of prime importance today. To ensure your customers have the best experience, the website has to be attractive, easy-to-navigate, and have compelling content.

This is where Modera Webfront comes in. To build an automotive website for your company, the smart and most effective choice is the Modera Webfront solution. It has the following features:

• Editors can modify, add or remove content of pages directly while seeing the dealership website from the live site perspective.
• Comparison of several vehicles so the customer can decide which one perfectly fits their requirements.
• Clients can design and build their next car with the Car Configurator feature.
• Create a virtual showroom to present the vehicles down to the finest detail, such as prices, specifications, available options, visuals and marketing collateral.
• Publish inventory, keep it updated, and let visitors find their next vehicle with just a few clicks.
• Similarly, visitors can find accessories and even order them for their vehicle.
• Customers might want to get their vehicles valued for trade-ins, so this feature is available as well.
• Clients can book convenient slots for test drives.
• You can create and manage all type of promotional material – banners, special offers and campaigns. Keep customers updated about what is going on in the dealership with latest news.
• Let customers schedule their service sessions online via a booking form.
• Maintain all data in a centralized format.
• Last but not the least; ensure that your dealership website is visible more via SEO tools.

Dealerships striving to remain relevant among changing market forces can strengthen their position through digital transformation. Automotive website solutions are some of the elements in that transformation and deserve focus. If it has been too long since your dealership revamped its site, this should be a priority. You should emerge from this process with a secure, easy-to-use site that allows customers to browse comfortably from any device and collects data that will improve their experience in the future. Modera Webfront is exactly what you need to accomplish this purpose!

The post Why cutting-edge Automotive Website Solutions are necessary? appeared first on Modera.

The automotive industry is evolving quickly, so dealerships have to adapt in order to meet demands from both the sector and customers. Similarly, the car buying process has undergone a drastic change – what worked a couple of years back, won’t necessarily pass muster now. So when it comes to selling used cars at your dealership, it is time to rethink strategies!

Here are a few tips to help you along – take a look:

1. Engage virtual shoppers

A chunk of customers begin the car buying process online, by conducting research regarding preferred makes and models. Having an informative, engaging, easy-to-navigate, and professional-looking website is a must. It is the touchpoint for virtual customers as they check out the used car inventory at your dealership. Your website is a digital showroom that kickstarts their journey as a prospective buyer!

2. Tap into the power of social media

If your dealership isn’t on social media, you are missing out on a great opportunity. It is an excellent way to interact, engage, and ultimately sell to millions of people. For instance, you could upload a virtual test drive video on YouTube. Watch time of test drives increased massively in the last two years, so the video might attract potential buyers this way. Shine the light on your showroom and give social media users a sneak peek as to what you can offer via a video uploads on Facebook, Instagram, LinkedIn and Twitter. It is time to position your dealership as industry experts if people want to buy used cars. You can also use social media to interact with other dealerships and the local community.

3. Target the right audience

Remember, you are in the business of selling used cars. Thus, your marketing strategy has to be different from those of brand new luxury Porshe and BMWs. The prospective groups you are targeting have vastly different concerns, questions, wants, and requirements, as compared to those investing in a new car. They are concerned about how many miles the car has traveled, if warranty can be extended, what parts have to be replaced or repaired, if the vehicle was in an accident, and so on. You have to tailor the marketing campaign accordingly by getting the right message to the right person.  It is important to study car buying trends too. There are several unofficial “car-buying holidays”, as per research done by TrueCar.com and U.S. News & World Report. Figure out when things are busy, steady, and slow and then adjust your campaign budget accordingly.

4. Offer incentives

Why not offer the potential customer a great deal on an extended warranty? Or talk to them about flexible payment options? How about offering pocket-friendly financing rates? Outline the benefits that will entice the customer, as people love sales incentives. Tell them how long they have to take advantage of incentives, and let them make the decision without pressure. 

5. Create a referral program

Selling used cars can prove to be tricky, but a referral program can boost sales. You just have to tell existing customers that if they refer someone who can buy a vehicle or avail a service at your dealership, they could get a better deal or discount. Some dealerships are using online referral programs with success. You send an email with an invitation to join the rewards program and then offer prizes for vetted referrals from them.  

6. Use an automotive CRM

Nowadays, it is all about creating the perfect customer experience, and an automotive CRM software helps to achieve that and much more. It streamlines dealership operations, and makes the task of selling used cars more convenient.

• Leads won’t fall through the cracks again, even when things get busy. Every lead is a potential car sale, and the CRM ensures you build a solid relationship with them. Check when the lead was last contacted, which used cars they are interested in, and other information. Members of your sales team can log notes from calls or emails with customers – everything is recorded.
• Monitor progress via regular reports. Find out what strategies work in your favor, as the CRM lets you collect data about prospects and deals, and generate reports from them. You can see who your customers are, what used cars are selling the most, etc.
• Boost customer satisfaction! When you focus on building meaningful relationships with leads, it lets customers see what type of personalized and unique service you offer. It is something they won’t forget.  People want to spend money where they feel appreciated and cared about, and they keep coming back to that place. A CRM will help create a group of loyal, returning customers for your dealership.

7. Don’t underestimate customer reviews

When it comes to automotive marketing, the best way to instill trust is to let your customers speak for you. Reviews can be an extremely effective marketing strategy. Ask former customers to leave reviews and testimonials on prominent platforms like Google, Capterra, social networks, your own website, etc. You can also take things a step further by creating customer success stories and videos with your most valued customers. Create paid social ads, newsletters, and email campaigns with such content.

Keep in mind that while car sales today start online, most of the final deals are closed in person – in the dealership itself. Thus, it is up to you to create a modern-day car buying experience for the customer. You have to perfect the hybrid model – a seamless blend of offline and online marketing to sell more used cars at your dealership.

The post Tips to Boost Used Car Sales in 2022 appeared first on Modera.