The automotive industry is one of the biggest globally, and consists of countless companies that involve design, development, manufacturing, marketing, and sales. It also generates massive yearly revenues with a massive amount of dealers, brands, and independent sellers jostling for their market share. Getting new buyers while retaining existing ones is a huge challenge, so it is imperative to create an automotive campaign that delivers.

What is automotive campaign management?

Automotive campaign management basically refers to creating campaigns for promoting and advertising vehicles and related products or services within the automotive industry. It means strategically planning and implementing various marketing techniques to lure and engage potential customers, boost brand awareness, drive sales, and build customer loyalty. This type of campaign automotive advertising includes activities like traditional advertising, digital marketing, social media campaigns, content creation, events, sponsorships, and other promotional efforts. An automotive campaign is customized to target specific demographics and meet the needs of consumers interested in automobiles. It positions a brand or a certain vehicle as a desirable choice, in a competitive market, for establishing a strong presence in the minds of potential customers.

Ideas for running automotive campaigns

Mobile responsive marketing

Did you know that an average car buyer spends 33% of their journey time on mobile devices? All content, visuals, and ads have to be mobile-friendly. Companies usually develop content keeping the desktop in mind, and then force-fit it for mobile, which is a mistake. Google has now introduced a dedicated channel that helps automotive players ensure an immersive mobile experience. Compared to conventional automotive digital marketing strategies, mobile ads can boost conversions by 45%.

Search engine optimization (SEO)

It is necessary to boost visibility online, so your automotive website has to appear on top of the search results, when users enter relevant keywords. Thus, potential customers see your website first. Using SEO techniques, you can get website pages to rank higher on search engines. Make sure to position relevant keywords throughout the site and blogs – it provides useful information to shoppers and helps in achieving higher rankings too.

Video marketing

Nowadays, video content is ruling the roost in the automotive industry, so it should definitely be a part of your automotive campaign. Potential buyers need to view the car from all its angles, and get a feel of what it would be like to own it. Create interesting videos of a particular vehicle, while highlighting its build and best features (video test drives, accessory demos, and 360 degree visuals), and upload it on your website and social media channels. The videos should be detailed and informative, so viewers engage with them instantly. By tailoring this experience, you subtly convince buyers to take a closer look at a certain vehicle. With your video doing much of the work, your on-site sales personnel will simply need to give a final push to persuade visitors to buy.

Manage reviews

Don’t neglect online reviews, as it is an excellent automotive campaign strategy that can attract more buyers to dealerships. Respond to online reviews, especially negative ones, because potential buyers need to see that you take every customer seriously, even if they aren’t happy with the product or service. You have to actively work on boosting the number of positive reviews as well. In addition to general review sites like Google and Facebook, auto marketers should also be paying close attention to feedback on auto dealership review sites. These platforms are inhabited by serious car buyers, who are more likely to visit your dealership, if customers have good things to say.

Live streaming and events

Live streaming is another potential tool to attract and engage buyers. You can talk about your car features, new arrivals or offers, conduct live sales, address buyers’ doubts and concerns, and so on. Moreover, you can collaborate and participate in other live events. Take part in webinars and discussions and expand your reach.

Remember, you can’t follow any particular formula or a fixed strategy while designing an automotive campaign. It is an ever-changing landscape, and businesses have to adapt to trends accordingly, as it is the only way to grow and stay ahead of competition. Several trends arise in automotive marketing every year – you have to stay updated and integrate them into your campaign if and when required.

The post The ABCs of Creating an Automotive Campaign That Delivers appeared first on Modera.

The aftermath of the pandemic combined with the longstanding vehicle distribution inefficiencies was the perfect storm for the lowest slump in new vehicle sales in years. But these inefficiencies have always existed beneath the surface, the crisis simply thrust them into plain view.

Historically, the process of distributing vehicles from manufacturers to dealers and eventually customers has involved massive amounts of manual paperwork, which has been quite inefficient. However, the industry has now entered a new digital era of vehicle distribution. Attitudes are shifting within the sector. The technology promises more efficient distribution through improved organization, communication, and real-time tracking. This revolution makes managing vehicle supply chains easier than ever while increasing transparency for dealers and consumers.

Vehicle Distribution Has Been Lagging in Tech Adoption

The automotive industry has been facing a significant supply chain disruption for some time now. The combination of production delays and capacity constraints has led to a shortage of vehicles. What is more, the finished vehicle logistics sector has been under heavy criticism for quite some time now for lagging in adopting technologies that provide data accuracy and better process visibility. Functions like ordering inventory, tracking railcar shipments, and managing compliance documents still involve endless spreadsheets, printed forms, physical document mailing, and frequent phone calls.

With that kind of an approach, communication has to flow between factories, logistics providers, dealers, and beyond largely on paper. Unfortunately, this creates opportunities for details and vehicles to fall through the cracks. 

At the same time, supply chain visibility is low for dealers trying to manage growing businesses. For example, dealer inventory in the US is currently around over a million units, which is equivalent to a 25-day supply. This translates to a 70% decline from pre-pandemic levels.

What this has done is push some original equipment manufacturers (OEMs), such as BMW and Ford to adopt a build-to-order model. All of the above, has increased the pressure on the sector to seek technological solutions for tasks such as vehicle inspection and yard management.

Digitization of OEMs

Now, digitization, as part of the disruption in the automotive industry, has streamlined these critical distribution activities for enhanced organization and efficiency. It promises the potential to remove human error.

Cloud-based transportation management systems (TMS) give complete real-time views of shipments via user-friendly dashboards. Order status, vehicle locations, and ETA updates are available instantly rather than playing “phone tag.” Digital document storage and automated workflows smooth processes like title work and registration compliance.

For dealers and customers, digitization translates to more reliable and transparent experiences. Meanwhile, precise inventory tracking means fewer vehicles get lost and delivery delays are minimized.

Benefits To the Entire Automotive Industry

As digital vehicle logistics innovation is in full force with importer and OEM specific automotive software being developed, the entire automotive ecosystem benefits. New solutions exemplify how technology can facilitate collaboration between factories, transporters, dealerships, and motorists for optimized outcomes.

While adapting to new systems involves a learning curve, digitization ultimately drives positive transformations in productivity, automation, and consumer satisfaction. What is even more important to the adoption of these new technologies is that they fit like a glove into your existing manufacturing and distribution environment. Systems like Modera’s tie into the existing structures, which reduces the learning curve and implementation time.

Where’s Waldo? Searches are ending as digitization launches vehicle logistics into the modern age. Ultimately these systems allow more focus on moving metal rather than chasing documents. The industry appears geared for growth thanks to shedding antiquated processes at last. The future has arrived, and it’s driven by data.

The post Welcoming the New, Digitized Era of Vehicle Distribution appeared first on Modera.

Technology is evolving every day, and it is imperative to keep up pace, especially when it comes to the automotive industry. The need to combine offline data with online data is imperative when it comes to selling cars, so it can be used to reach the right consumers at the right time. However, it isn’t that simple – auto dealerships have to invest in the proper technology and implement a digital transformation policy, while identifying the required skillset to maintain these new systems.

This time we’re looking at some ways to combine the online and offline automotive experience into a single, smooth and enjoyable ride.

Know what customers want

The very first step to merging online and offline sales channels is to understand what customers want. You have to stay updated with their preferences, requirements, and purchasing behavior. You can use data from the dealership website (having a functional, easy-to-navigate website is a must), social media, email, CRM (customer relationship management) software, to keep tabs on customer profiles and segments. It aids in tailoring marketing efforts and services to each customer group and personalizing their experience across different channels. For instance, you can send targeted offers and recommendations depending on browsing and purchase history, or allow them to book test drives online or in-store. 

Improve the in-person experience

Your dealership and showroom are not just places to sell cars, but also provide the opportunity to engage with customers. Be sure to enhance the in-store experience with the help of advanced technology like digital signage, self-checkout, or mobile apps to provide more information, convenience, and interactivity. Elaborate training has to be provided to staff, so they can be knowledgeable, helpful, and friendly towards customers. Encourage using devices at your dealership, such as tablets or smartphones, to access customer data and offer personalized assistance. You have to create a consistent and appealing brand image across your online and offline channels. You can achieve this by using the same colors, logos, messages, and content.

Utilize data at your disposal

To merge online and offline channels, they have to be connected through a unified platform that can track customer interactions, inventory, and other parameters across channels. Thus, you can provide a seamless customer experience, while optimizing operations and inventory management.

A data management and analytics platform is a must. OEM/vehicle distributors can distribute vehicles in the market, while providing dealers with updated product and market information. It can also be used for collecting sales metrics in real-time. This is where Modera Importer plays an important role by establishing a connection between each and every aspect of the car sales process. Parties with access to the system can zero in on the pain points, analyze data, and supervise the entire process. This is a cloud-based tool for selling and delivering vehicles, while useful data is available at a centralized dashboard.

Keep an eye on performance

It is imperative to measure performance on a regular basis to identify areas for improvement. Use metrics such as customer satisfaction, retention, loyalty, lifetime value, conversion rate, average order value, and omni-channel revenue. Using these aspects can help you evaluate the effectiveness of your omni-channel strategy. Make sure you collect feedback from customers and staff, and also monitor competitors and market trends – it gives an idea of what works and what doesn’t, so you can adjust your strategy accordingly.

The post Merge the Entire Online and Offline Car Buying Selling Process into a Single Workflow 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.

The automotive industry looks vastly different today than it did a decade ago. The process of buying new and used cars have changed drastically. As automotive industry software solutions, along with other technology have made the purchasing journey more transparent and streamlined. Today’s customers expect an exceptional car-buying experience. And these software solutions can help your staff deliver on this promise – no matter the size of your operation.

What are the types of automotive industry software solutions?

1) Customer Relationship Management (CRM) Software

It is a software solution designed to manage your dealership’s relationships with customers and potential customers. It is important to select a CRM built specifically for the automotive industry, such as Modera Salesfront. With an automotive CRM, dealerships can automate and organize their sales, marketing, and customer service processes. And ultimately sell more cars, which is the main objective.

Automotive CRM software offers numerous benefits. Such as lead management that prevents you from dropping the ball on leads generated online, over the phone, via a third party or through walk-ins. Communication with customers improves drastically as interactions can be tracked through phone, text, or email. Other features available include lead nurturing and generation. Such as the ability to respond immediately to new leads through automatic replies. Every deal of the sales process can be followed thoroughly, without lead leakage, from the beginning to the end.

2) Dealer Management System (DMS) Software

Using a collection of products from multiple software vendors can turn into a nightmare scenario. Using a DMS means a single solution that eliminates these headaches.

To put it in a nutshell, DMS allows a dealership to perform all daily functions in areas of sales, financial transactions, service operations and more, flawlessly from a centralized hub. The integration built into the software allows simplified information exchange between all the operational divisions of your dealership and even with the manufacturer if the automotive agency model is in use. It is a solution where everything is interconnected. Be it the work of the sales department or the preferences of customers. Daily controls become smoother, especially when repetitive tasks are automated.

Benefits of applying a high-quality dealer management system not only helps manage all functional areas of business with one solution, starting from sales to service and everything in between.

But it also helps:

• you improve customer service
• collect and analyze all the data
• improve marketing strategies
• and give you more flexibility, mobility and security.

3) Inventory Management Software

It works best with DMS systems, and is included with most of them. But you can purchase it as a standalone solution too. Inventory management software can help you syndicate inventory to your website and third-party lead providers. It can be used for trade-in programs as well.

4) Website Building Software and Digital Retail

A website that is specifically tailored to your dealership model is a must these days. A generic site built and maintained through WordPress or another universal platform will lack many of the features that make a dealership’s website a user-friendly destination that stands out in the crowd. Digital retail solutions enable an e-commerce like experience on your website where customers can do a lot of the work of purchasing a car online. A comprehensive and easy-to-navigate website will let customers take a peek at inventory, compare prices, explore financing options, making an offer on a vehicle and much more.

Giving customers the best user-experience possible is every company’s first priority. And using automotive focused website building tools for your dealership website is a must to make it happen.

So what should you look for while selecting automotive industry software solutions?

Today’s automotive software offers a unified, fully customizable platform that brings every area of your business under one digital hood. Sales, marketing, service and OEM integrations are all dealt with so transparently that the software itself never gets in the way.

The software should be tailored to fit your business model

No two dealerships operate in the same manner, which is why off-the-shelf dealer software rarely fits the bill. To match the workflows of your team on a regular basis, so the operation is flawless, the platform has to be fully customizable for every department, vehicle make and model, customer type, source of business and market segment.

It should engage the staff

Nowadays, sales processes are tough to manage as they are so varied. The customer is ultimately who matters, when it comes to the journey they take to reach your front door. The right automotive software solution ensures stress-free and workflow-based navigation through the sales journey for both sales personnel and customers. It even includes auto-generated sales report documentation and mobile-ready collaboration for the sales team.

Customer satisfaction is of the utmost importance

How to appeal to the new generation of car buyers? By ensuring you can reach them digitally! When you pick the right software, you will enjoy a tangible boost in customer satisfaction. Thanks to the ability to automatically send timely communication via email and SMS, and the presence of personalized micro-sites through which customers can view the deal on the table and extend their relationship with the dealership well beyond the sale, into after-sales service and maintenance.

A 360 degree buyer view is must

Buying journeys are more complex that ever and hence must be monitored closely. Automotive software solutions provide real-time data on the customer. By keeping an eye on their journey and interactions with your dealership, it offers a perfect opportunity to incorporate a personal touch. Right at the moment they are most likely to engage with you. This level of sales funnel management has never been available. At least not on such scale and within budget for so many dealerships – until now.

Which Automotive Industry Software Solutions to pick?

To sum up, dealerships should look for automotive industry software solutions that can integrate all the required platforms seamlessly, or an all-in-one software. The latter is the preferred option as it is not only cheaper in the long run. But integrating multiple platforms under a single unit could prove to be problematic.

For instance, some features of those platforms might need to be upgraded. Or a few could stop functioning properly due to some particular feature being updated. It is a hassle to fix those glitches and then get the software working again.

Dealerships that use all-in-one solutions report enhanced customer satisfaction. Including customers feeling more valued and in control of the purchasing process. Happy customers mean more sales, positive word-of-mouth, and repeat customers. Assess the needs of your dealership, and choose carefully.

The post Types of Automotive Industry Software Solutions appeared first on Modera.

Global automotive industry trends are rapidly changing! Therefore, they are likely to cause disruption to the incumbent dealership model. Things are no longer as simple as a customer walking into a dealership, looking at options, going for a test drive, completing paperwork, and then purchasing a vehicle.

What do current trends say?

The relationship between Original Equipment Manufacturers (OEMs) and dealerships have always been symbiotic. OEMs have depended on their dealer networks to sell and service their vehicles. On the other hand, dealerships have fallen back on OEMs to provide cars and components they sell. OEMs are also tasked with financing their servicing activities while vehicles are covered by warranty.

OEMs are now working towards developing capabilities such as remote software upgrades, and establishing direct relationships with customers through ongoing subscription models. Thus, they are increasingly taking ownership of elements of customer relationship, which belonged to dealerships. The latter gets a major chunk of profits from services and after-sales. Activities like new car sales do generate profit, but the margin is quite small.

In this connected, direct-to-consumer landscape, the high margins of the servicing revenue stream for dealerships could be well eroded. Both OEMs and dealerships have to go over their revenue models and relationships with a toothcomb for survival.

What does a changing landscape mean?

Consumer demands of the automotive industry are changing. Apart from a shift in electric drivetrains, the car is now viewed as a component of shared mobility services. Models of car ownership are starting to change as well. Customers are now viewing their vehicle as a “device”, somewhat like their smartphone. They expect it to be updated, and aren’t unwilling to pay a premium or subscribe to a service that offers more benefits down the line. OEMs are working on developing capabilities, with the following benefits:

• Reduction in cost due to predictive maintenance, connected diagnostics and over the air (OTA) software updates.
• More revenue streams via value-added subscription services that are activated by OTA updates.
• Seizing opportunities for direct relationships with consumers, such as innovative techniques to sell vehicles, along with developing a more agile approach to delivering the car as a connected device.

What does this mean for dealerships?

Although many revenue opportunities are opening up for OEMs, it has narrowed it down for dealerships via traditional methods. The following services had previously been under the domain of retailers:

• When a car covered under warranty is serviced, the dealership that offers the service is paid for doing so by the OEM. They decide which parts and services are needed, and ask the OEM to pay accordingly.
• If a customer wants to upgrade, they need to visit a dealership to enable it. This too is paid for by the OEM.
• For quite some time, dealerships have become the face of OEMs. They are responsible for building good relationships with customers throughout sales and service lifecycle.

These aspects, essentially cause a migration of revenue away from the dealership network, and channel it towards the OEM. Dealers’ profit margins and opportunities for customer interaction will likely be reduced. Thus, the financial viability of dealerships is at risk.

What about servicing mechanical components?

Even though technology continues to progress rapidly, we don’t live in a world where we can travel using software alone. As long as vehicles are manufactured using physical components, servicing of these parts will be required. Even if servicing is performed by non-affiliated dealerships and non-dealer garages, there is definitely a role for the dealership in this situation.

How can OEMs support dealerships of the future?

OEMs have to consider the value they place on the dealerships of tomorrow. They have to factor in how dealerships will be rewarded for this too. OEMs are set to take greater ownerships of customer relationships. However, they might have to provide extra support to dealerships to prevent them from disappearing. A dealership that generates greater customer loyalty and brand engagement will benefit the OEM without necessarily impacting the dealership’s bottom line.

Therefore, OEMs should look at:

• Incentivizing dealerships to drive traffic to online showrooms. Should dealers be incentivized for driving engagements instead of sales?
• Making revenue sharing work for online sales attributable to particular dealerships.
• Rewarding dealerships financially for high brand engagement via test drives, along with subscription to services offered by the OEM.
• Providing consultancy services to ensure their network of dealerships are properly equipped to offer expertise when required.
• The role of dealership networks in ongoing operations.
• Finding out if the dealership network is properly distributed – if the right dealerships are servicing the correct areas.
• Knowing if dealerships are offering the right kind of experience.
• Deciding if their floor space is optimized to offer the experiences that consumers most desire in that particular location.

Considering the KPIs in the OEM-dealer relationship, they have to focus more on experiences as compared to transactions. OEMs have to be flexible about how this relationship develops over time.

Dealerships have to become more experiential in nature, going forward. They have to work towards offering services such as test drives, VR experiences, and providing human touchpoints to individual customers and consumers of shared services alike. These activities might not directly drive revenue, so in order for the dealership to survive, OEMs may need to part with their hard-earned cash in ways that they have never had to before.

The post What will the Future Hold for OEM dealerships? appeared first on Modera.

When it comes to buying cars, customers are now prioritizing convenience before everything else. Before they actually step into a dealership, they want to have all the necessary information about a vehicle on their fingertips. That is why a high quality automotive DMS (dealer management system) offering full functionality is a must, so you can offer the best of services and close sales successfully.

What is a DMS – Dealer Management System?

To put it in a nutshell, DMS allows a dealership to perform all daily functions in areas of sales, financial transactions, service operations and more, flawlessly from a centralized hub. The integration built into the software allows simplified information exchange between all the operational divisions of your dealership. It is a solution where everything is interconnected – be it the work of the sales department or the preferences of customers. Daily controls become smoother, especially when repetitive tasks are automated.

Benefits of implementing a high quality automotive DMS

1. All-in-one solution

Using a collection of products from multiple software vendors can turn into a nightmare scenario. Using a DMS means a single solution that eliminates these headaches. It makes it convenient for employees to cross-train as and when required. It is all the more helpful for smaller dealerships where headcount is at a premium.

One of the major benefits is that it lets you manage all functional areas of business with one solution, starting from sales to service and everything in between. It means data flows seamlessly from one functional area of the business to another, allowing for accurate and timely reporting for informed business decisions.

2. Improved customer service

The competition today is immensely tough. You aren’t just competing with other local dealerships, but also running the race with third-party websites and online car sellers. The latter category promise buyers the convenience of online shopping. As already mentioned, more customers are getting comfortable with the idea of buying cars online. Offering impeccable and personalized customer experience is a must to retain existing customers and get new ones. DMS can help you with this by tracking more lead data and making it available to your entire team. Dealerships now understand the importance of collecting lead data beyond basic information before getting in touch with buyers and establishing a connection.

3. Data and marketing

As mentioned, data is vital these days. Business owners and sales managers actively research their markets and have a good understanding of what customers want. Despite this, they may be missing key points that can significantly affect the bottom line. With that in mind, a DMS automatically generates massive amounts of data and displays it in easy-to-read reports. For instance, website analytics software can tell you how many people visit your website and request information. You can even know which pages are popular among them and for how long they view the pages. Using this data, the DMS helps you create campaigns, use social media, and track results. Data helps you better understand which marketing efforts work best, and if the message you put out there is getting a response.

4. Flexibility

A common misconception associated with DMS is that they are solely meant for big dealerships with multiple locations. However, any DMS can be tailored to suit your business requirements. Whether you have one dealership or 50, it can be scaled and customized accordingly. A high quality automotive DMS is easy to navigate, so you can work out a solution specific to your dealership’s needs.

A DMS comes with intuitive workflows and a modern, consistent screen interface. This feature makes it easier to learn and use. It allows employees to get up to speed faster and become more productive sooner. Having consistent screens throughout the system with same/similar tasks and buttons in the same location on every screen is one example of how an intuitive design can simplify the learning process.

Cloud-based solutions

It is no secret that cloud-based platforms are shaping the future for businesses of all sizes. Cloud-based architecture provided by a DMS lets you continue running your business even outside the dealership. Additional benefits include eliminating the problems of in-house servers and IT systems overload and the costs associated with them. It simplifies and streamlines the process of deploying system updates. It also cuts down lag time to access data, so you can pull reports and retrieve data in seconds.

Security

Remote working and transferring data outside the walls of the dealership has become the norm. That is why; dependence on security has increased too. When it comes to data security, cloud-based solutions built on industry-leading platforms, use secure encryption methods to protect data and prevent unauthorized access.

Disaster recovery is another aspect of security that needs to be considered. It is impossible to predict when and where outside influences like natural disasters, power outages, economic downturn, or health crisis may lead to downtime for your business. Regardless of its duration, downtime has a negative impact on your bottom line and reputation. DMS ensures quick data recovery for all kinds of emergency situations. It also allows off-premises data back-up that can be accessed by any internet-connected device.

Thanks to cutting edge technology, an automotive DMS offers a comprehensive solution to help car dealerships manage their entire business from a single hub. It ensures better marketing, customer service, communication, and inventory management, all of which have a positive impact on increasing vehicle sales and service requests. Efficiency is enhanced, as the DMS helps to cross-reference data for identifying trends, opportunities, and ways to reduce costs.

If you are looking for a dealer management system for your dealership(s) then take a look at Modera Importer (for dealer network management) and Modera Salesfront (Automotive specialized CRM) solutions.

_______________________________
Cover image from Pexels

The post 6 Benefits of a High Quality Automotive Dealer Management System appeared first on Modera.

With the Covid-19 pandemic still casting a long shadow, the economy continues to fight an uphill battle. The present economic situation has made it clear that it is high time for original equipment manufacturers (OEMs) and dealerships to transition to a sustainable sales model. It is no longer a choice but an obligation. Moreover, there isn’t much time left for implementation.

What is the need for a new sales model?

One of the main reasons to change the sales model is rapidly changing customer expectations. They want a smooth buying experience across both online and offline channels, hence an omnichannel approach is a must. In addition, they want a personalized dialogue with the brand and cross-channel price transparency. Due to the Covid-19 pandemic, there has been increasing pressure regarding competition, costs, and margins. Thus, OEMs and dealerships are forced to rethink sales structure and models.

When it comes to the B2C sector, companies like Tesla have depended on online sales via strategically placed showrooms, from the very beginning. In comparison, several established OEMs still rely heavily on conventional three-tiered sales. However, this isn’t sufficient:

• Outdated, decentralized IT system landscapes prevent uniform usage of sales channels.
• Storing customer data in silos makes consistent customer interaction extremely tough.
• Existing retail processes can’t solely achieve the end-to-end experience customers want.
• When capital is tied up in inventory, it increases risk for dealers.
• A margin-driven, dealer-focused price war leads to drawn-out price negotiations from the customer perspective.

The idea shouldn’t be about replacing the dealer network that has developed over time with a direct online sales channel. Rather the objective should be to run several sales models in parallel, in order to utilize existing dealer assets efficiently. It can also help to deal with organizational and technical challenges.

Welcoming the agency sales model

The agency model combines OEM steered online sales with conventional retail sales – it is the perfect balancing act. It optimally utilizes existing dealer infrastructures and digital sales to guarantee benefits for all parties involved.

For the very first time, this type of ecosystem across all distribution levels allows OEMs to achieve a 360 degree view of the customer. Moreover, it means lower costs associated with sales and newer revenue streams as well. Thus, it paves the way for an innovative, customer-centric, and omnichannel sales process. It also allows the adoption of a target-oriented approach and transparent reporting.

In the agency model, dealers evolve from pure offline salespeople and become agents, while continuing to be the face that customers are used to. On the other hand, OEMs start interacting directly with customers as they are now responsible for the sales transaction. Keep in mind there will be new challenges, as OEMs take over processes and workflows from dealers, as well as risks and assets. This shift in responsibilities protects the existence of dealer networks, especially in times of crisis.

To transform an established sales organization sustainably, there must be considerable investments in organization, processes, and IT systems. Moreover, there are usually organically cultivated heterogeneous structures in the individual national sales entities. Introducing the agency sales model in this context, can be viewed as an opportunity to establish harmonized processes and systems. But this requires time and effort. Decision-makers should examine both sides and evaluate the long-term cost reduction and sales potential in addition to the one-time investment costs.

How do customers benefit?

A global survey by Capegemini Invent was conducted with 6000 consumers, from six of the most crucial automotive markets worldwide. They are China, UK, Germany, Spain, France, and Sweden. The results show that it is not only OEMs and dealers who benefit from this model, but customers do too.

A cross-channel sales process, universal price consistency, and possibility of buying directly from manufacturers’ websites can be optimally implemented with the agency sales model. It allows OEMs to set prices and define specific targeted online incentives for customers. Apart from that, consistent prices reduce intra-brand competition – a huge benefit for both dealers and customers. Dealers can differentiate based on overall experience, while focusing on better services and consultation. This way, customers don’t feel pressurized or obliged to compare offers from third party-providers.

Forging the path ahead for OEMs

When OEMs transform parts of their sales models to agency sales, they can improve sales and gain an advantage in the market as well. Moving to an agency model is an attractive option for OEMs, and increasingly, they may have little option but to do so.

OEMs that quickly adopt the agency sales model have the chance to test the omnichannel approach for selected markets or vehicle models. For instance, they can start with a specific product, such as electric vehicles. It offers large OEMs and dealers the possibility of gaining experience with the new sales model while reducing risks on both sides. The early buy-in and integration of dealers is something that can’t be eliminated.

How can the automotive agency model help your dealership?

1.) Increase in Sales

It is estimated that the introduction of the agency sales model will eventually lead to a long-term increase in sales. Let us find out more:

1.1.) Increase in transaction prices

Transaction prices, which are the actual sales prices achieved, are one of the biggest profit levers for car manufacturers. When transaction prices increase, it has a 1:1 effect on the profit of the sales organization. So if it is a three-step sales model, the dealership acts as an independent vendor. They ultimately decide the transaction price. The maximum level for the lower price limit is determined by a fixed retailer margin. Situational sales promotion measures for specific model or customer group are taken into account too.

Each year, OEMs and importers shell out loads of money in sales promotion measures. Thus, they have a negative influence on the transaction prices in the markets affected. Due to lack of credible data, it isn’t possible to systematically monitor success and optimize measures. It leads to the fact that sales promotion measures are generally used reactively to achieve short-term sales stimulation.

In the agency sales model, the importer decides the transaction price in a market. Moreover, centralized sales systems and data management across all sales levels ensure strategic planning of transaction prices and sales promotion measures dynamically. In this way, the highest possible transaction price can be achieved. Apart from the optimization of sales promotion measures, uniform prices in a market prevent intra-brand competition. Both effects improve transaction prices in the long-term.

1.2.) Better sales volumes

The chunk of data provided by the agency sales model ensures the importer can move away from short-term measures aimed at selling certain vehicle models. Instead, they can work towards holistic customer lifetime value management. The new data can be used to evaluate customer behavior in a targeted manner. Dealerships can find out how high customers are willing to pay, or more about their loyalty to a brand. It helps generate the decisive motivation to buy at the right moment. Thus, new customers can be acquired, while turnover rate and churn rate, goes up and comes down, respectively. All this adds to customer lifetime value and increases sales volumes in the long term.

1.3.) Upselling potential

Apart from increasing transaction prices and sales volumes, upselling potential can be realized as well. This way, new business models can be implemented more efficiently. Whereas vehicle and digital services are separated in the traditional sales model, they are offered centrally from one source in the agency model. It can create a closed ecosystem, so customers can be retained throughout the customer life cycle. It makes it much easier for importers to offer customers additional products and services, digital services, and new mobility formats.

2.) Cost Reduction

Almost a quarter of the costs of car sales can be associated with distribution. The costs are split across all three steps of the value chain. Take a look:

2.1.) Centralization

As per the traditional sales model, till date several functions have been organized in a decentralized manner. Each dealership has its own dedicated resources for marketing and customer service. Cost-effective online sales solutions are also operated using a decentralized approach by individual dealers.

Until now, the focus of importers has been more on the administrative management of the dealer network. In the agency sales model, the importer assumes an operational role that requires more diverse competencies. For example, it includes the operation of central online stores and central lead generation. It also involves establishing central customer service and marketing departments. The shared service centers reduce redundant functions in the sales organization, while realizing economies of scale. Moreover, quality can be given a boost by bundling competencies and setting standards.

2.2.) Streamlined digital processes

Centralization of competencies is a good idea, but leaner sales processes are required as well. The agency model provides precisely that, along with harmonization of the IT system landscape. It leads to cost reduction in the sales organization. A streamlined, digital agency sales process can eliminate almost 40% of administrative tasks at dealerships and importers. It is due to the fact that time-consuming price negotiations and complicated manual approval processes and system changes are not required anymore. The expected increase in online sales and the provision of self-service functionalities will also reduce the burden on retailers.

2.3.) Resource relief

When prices are transparent and uniform, they indirectly contribute to a reduction of effort in the retail trade. Customers visit up to 3 retailers due to price negotiations before the purchase is closed. It results in resource expenses for the trade organization. However, it can be avoided by the provision of uniform prices in the agency sales model.

3.) Improve Customer Experience

The customer buying journey in the automotive industry is replete with inefficiencies. Most OEMs find it daunting to have a 360-degree view of the customer profile due to the fragmented data collection at dealerships. Moreover, inconsistency in the service levels remains a concern since the OEMs’ control over the dealers is limited. In the agency model, with sales not being the primary responsibility of the agents, OEMs can create innovative compensation methods to encourage customer service and data capture.

Customer-centric activities like test drives, walk-in engagement can be well compensated and bonus paid on qualitative outcomes like customer satisfaction and data quality. The agency model, through unification of data and control of online and offline channels, allows OEMs to unlock a vast revenue potential by building an authentic omnichannel experience with a seamless customer journey.

How can agency sales remain viable?

Dealerships must be viewed as the customer’s primary contact and partner. Personal contact between customer and dealer will play a fundamental role in the agency model. As per research, dealers and OEMs agree that the introduction of a new sales model in such trying times might be difficult. However, it is necessary to ensure survival in the market on a long-term basis.

Dealers are keen to transform the sales landscape because of the high costs retail costs. In fact, these expenses can exceed the earnings potential and lead to a need for non-automotive activities to cross-subsidize the original core business. There is extremely high competition from new startups too. It is imperative to counteract this pressure with appropriate solutions. Agency sales can only succeed if there is equal partnership between dealerships and OEMs.

Fair and sustainable remuneration model to ensure customer centricity

Level of remuneration – replacing the sales margin (difference between purchase and sales price) – is one of the most crucial success factor at all levels. A very decisive success factor, which is emphasized by all dealers surveyed regardless of size, is that all agents should receive same commission. Moreover, all customers should be charged the same price too. Uniform provisioning is required to ensure dealer satisfaction, along with a shift towards customer centricity. To sum up, adequate commission is a must to make the model work.

Price transparency and competition as a lever for increased customer satisfaction

As mentioned, the customer visits up to 3 different retailers before deciding on a purchase. If OEMs specify uniform prices, it can spare the customer those tedious visits as there won’t be any requirement for price negotiations. A transparent and uniform price guarantees dealers better planning with secured margins. It also means reduced intra- and inter-brand competition. Customers get a better experience across several channels, including online sales offers. Dealers can focus more on the customer, which means greater satisfaction for all stakeholders. Price transparency is what matters – customers shouldn’t feel they have missed out on a better offer.

New IT infrastructure and processes to optimize the customer approach

Changes to retail contracts associated with the introduction of agency sales will promote sharing of data between dealers and OEMs. With better access to data, dealerships can approach customers in a more targeted and analytics-based manner. Increased transparency in the lead management process, along with an improved 360-degree customer perspective can open up new sales opportunities. A consistent IT infrastructure and new processes adapted to digital channels are necessary. Remember, customers are the main initiators and drivers of change, so their requirements for an integrated customer experience must be taken into account. Appropriate IT and new processes are important.

What is the break-even relevance?

To make a solid investment decision, the initial implementation costs and potential long-term expenses and sales need to be compared. The investment for a medium-sized market usually pays off after approximately 4 to 5 years. Fair distribution of the expected profits is vital for the investment to succeed. To that end, decision-makers should develop a transparent remuneration and bonus model. It should be done with retailers while designing agency sales and setting up the investment case. If there is an equal partnership, the agency model can successfully combat the upcoming challenges in the upcoming years.

But let us take a pause…

Even though the concept isn’t that difficult to comprehend, there is significant investment costs involved. The introduction of the agency sales model needs a proper commitment from all partners across every sales channel. Chalking out a long-term viable plan is necessary for a sustainable and successful introduction of the agency sales model. Here are a few points to keep in mind:

• Increase in transaction prices through standardized pricing across sales levels and dynamic sales promotion measures.
• Increase in volumes through data-based and customer-specific approaches throughout the entire customer lifecycle.
• Utilization of upselling potential through the customer data acquired and the offer of vehicles and services from a single source.
• Reduction of costs by centralizing functions and minimizing redundancies.
• Use of leaner sales processes to relieve the burden on the sales system and resources.

There are going to be several challenges in the upcoming years, such as new drive systems, decarbonization, autonomous driving, new forms of mobility, and new competitors, to name a few. At a time when automobile manufacturers are transitioning to digital processes, it is all the more necessary for the agency sales model to be implemented. It is a sustainable model that guarantees a plethora of benefits over the long-term, while being able to address the challenges of the current system too.

Let us help bring your automotive agency model into reality with a dealer network management tool, an automotive CRM for dealerships, automotive-focused website builder, an e-commerce site with a car configurator and a used cars trade in tool.

The post What is the Automotive Agency Model and how can this Help Your Dealership? appeared first on Modera.