Diary of a DMS Guy

The "New" Normal

I have a distaste for the term "The New Normal" for some reason, "Normal"  is constantly evolving but certainly, as we come out of the pandemic the business environment we operate in seems to be settling down into something that is somewhat different to that pre-pandemic.

There have been several key items which are driving this :-

1. The Pandemic Itself

The series of Lockdown's during the pandemic has pushed all consumers towards using online shopping.  They are now more used to this, and have been making more "big ticket" purchases online.

2. The Disrupters

At the same time (and fortuitously for them!) there have been a swathe of big-budget online only retailers hit the marketplace - companies such as Cazoo and Cinch being key examples.

3. The Electric Car and the move to Agency Models

Many brands have taken the opportunity of Electric Vehicle launches to test the water for an Agency style dealer model, and it is clear that much of the new car market in future will operate that way in future.

Over the past 18 months or so, dealers have had to quickly respond to change, providing the ability to "sell" cars online from their Web sites.

For me, it's been an inevitable move and one I've spoken about for several years.    The traditional response has always been "yes, customers will research online but they will always visit the dealer to actually buy".    The Pandemic has proven that this isn't the case - the consumer has been largely happy to consider buying a car - both new and used - completely online, largely because they have to.

But, what does all this mean for the future ?  Will all customers be buying online?  What do dealers need to do to ensure that they are fully placed for the future ?  

The consumer will use a blend of online and physical (Telephone, dealer visits) to buy (and service) their cars.  

Yes, there will be a percentage of consumers (including the author!) who will be happy to complete the transaction completely online.  However, even the "disrupters" are acknowledging that many will want part of the transaction to be physical - witness Cazoo opening Handover Centres across the country.

At the other end of the spectrum, we will find the odd consumer (odd as in low in number !)  who doesn't go online at all as part of their car purchase journey, but wanders into the showroom and buys the car there.

However, for most, the journey will be a mix of online and physical.  A typical car buying journey may start with the consumer researching the car online, and even making an appointment to come and view online before visiting the showroom.  The purchase may not be made whilst they are in the showroom, but maybe a telephone call later to confirm purchase.  The transaction at that point may then need to be virtual - somehow getting a sales order signed remotely and a deposit taken.    The final balance is likely to be by bank transfer and then a physical collection.

The dealer has implemented many tools over the past 18 months to cover some or most of this journey from a consumer perspective - including online reservation, online chat, even the ability to sign up a customer using Digital signature technology.

The real benefit that the disrupters have made is a large investment in technology to ensure that the consumer journey is largely automated, and requires the minimal of human interaction.

The dealer however, in many cases, is like the proverbial duck.  Above the surface, (ie the view to the consumer) the sales process seems very serene and elegant.    However, below the surface (within the dealership) their is a lot of activity making sure that the consumer gets the service they deserve.

For example, the online reservation platform may end up in an online portal or by email.  This means that the sale needs logging manually in the CRM system by the dealer, a Sales Order manually entered into the DMS and manual processing of the online reservation fee.

This "double-keying" has cost.    The main cost is in staff time, but it also has a customer satisfaction cost - for example a customer may have an online chat with the  dealership one day, and then perhaps telephone the dealer the next day and refer to the online chat.  It's quite normal that the person taking the call has no visibility or knowledge of the online chat conversation.

The challenge for the dealer moving forwards is to take the complete sales process - online and physical - and join up into a cohesive single process, with minimal administration required.

To do this, there are several parts of  the equation that need review :-

1. The Online Sales Process

Is the customer actually able to buy online today (including PX valuation, finance application etc) and are the results of this automatically transferred into the DMS and CRM systems ? This is key to scaling up and taking advantages of the cost-savings of online selling.  

2. Online Web Sales Enquiry integration with CRM

Online enquiries, online chat etc need to be integrated directly back into dealer CRM systems.  This ensures that the CRM becomes a central repository for all customer communication - whether it be by online enquiry, chat, telephone, email .

3. Integrate Third Party Communication into CRM

Dealers advertise stock on a number of portals - Autotrader, eBay, Gumtree etc.  Enquiries from these platforms should also be integrated into the Dealer's CRM.

4. Ensure the DMS can do the job !

The DMS system may provide the CRM as well (it should as the benefits of having access to customer history in the Sales Department).    The DMS should also be able to accept communication from the online systems, and interface specifically with the online sales platform so that all online sales can be automatically transferred into the DMS.

5. Don't forget about Aftersales !

It's not only the Sales department that has and needs to move online!    The Service department needs integrated online Service Bookings (so that Repair Orders are created automatically), with online check-in (including upsell, it's surprising how much upsell takes place when the customer can just choose from a menu!), ecommerce payments and online Vehicle Health Check authorisation.

Here at Navigator, we have been compiling all the elements of the consumer journey and are proud that we can help dealers with their complete processes - from integrating existing solutions together through to supplying

• Custom Web Sites,
• Online Vehicle Sales
• Online CRM integration with dealer Web site and third party systems
• Digital Signature and Online Payment systems for Sales Orders
• Fully integrated online Service Booking
• Online Service Check-in
• Aftersales eCommerce

The aim is to provide a cohesive customer journey with the minimal of hassle for dealer staff, driving down the cost per transaction and leaving staff to serve, sell and deliver those services to customers where a physical presence is required.

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