You’re always looking for ways to hit your increasing monthly quota and grow your automotive business, adding more happy customers to your books. As a used car dealer keeping on top of and growing your customer base can feel like spinning far too many plates. If there were only an all-in-one solution enabling you to efficiently manage your business from end to end…
What is a Dealership Management System (DMS)
A Dealership Management System (DMS) is a software specially designed for car dealership operations. It encompasses and streamlines all the processes dealers need to keep on top of to retain current customers and win new customers. This includes the sales process, marketing, lead management, customer relationship management, financing and invoicing, inventory management and most other backend and customer relations processes.
Importance of a DMS in a used car dealership
As DMS brings together all operations across the business from overall analytics to day-to-day customer communication, it ensures efficiency from when a customer first inquires to when they leave a review. This efficiency increases your capacity to serve more customers and it creates a better customer experience that encourages repeat business and recommendations.
6 Benefits of Having a DMS
So what tangible outcomes can you expect from investing in a DMS?
Data insights
By managing all your operations in one place, all your data is stored in one place. A centralized database can more easily be mined for trends and processed for forecasts so you can use real-time data to stay ahead. Team members can share data and insights within and between departments, ensuring everyone has access to the bigger picture of how the business is doing and where it is going. Whether you’re a single team or an international franchise, knowing your numbers will benefit your bottom line.
User-friendly organization
A dealership management system is designed for everyday use. It makes it easy for your team to manage transactions whether sales reps are checking the inventory or sending over contracts and collecting payments from buyers. As most DMS are cloud-based, it has the additional user-friendly aspect of accessibility. The system can be accessed from any location, supporting flexible and multi-location working.
Streamlined costs
All the tools involved in running a used car dealership can add up quickly. Instead of worrying about paying for individual software for CRM, text marketing, inventory management and more, combine it into one payment on one platform. Integrating all your tools into one platform isn’t just convenient. It’s very cost-effective.
Improved inventory management
Keeping on top of inventory is vital for keeping up with customer demand. Running out of in-demand models or parts delays service delivery, tainting the customer experience, and could lead to lost sales. However, over-purchasing is costly. A system that can manage what has been sold, what is in demand, what to order, and where everything is located enables you to keep customers happy without compromising your cash flow and storage.
Scalability
A DMS is software that can be easily scaled according to the size of your team, the growth rate of your customer base and the expansion of your company. It has enough flexibility to meet the needs of independent dealers, large-scale franchises and everything in between. If you have big ambitions for your dealership, it’s a good system to have in place because it gives you the tools you need to grow and efficiently manage the extra workload.
Payoff for customers
Improving your backend system improves your customer-facing efforts. Your team has tools at their fingertips to effectively meet customer needs. Prospects are more likely to turn into customers, boosting your conversion rate. Customers are more likely to be happy with their service, boosting customer satisfaction and retention rates. Those same happy customers are more likely to leave you a positive review, boosting your lead generation efforts. You’ll establish a cycle of happy customers.
11 Key Features of a DMS
That being said, not all dealership management systems are created equally. There are some core features to look out for to ensure you are investing in a DMS that can get you the best possible results.
Inventory management
Managing inventory is a key process for dealerships and it’s one that can be quite easily automated with a tool for tracking inventory and reporting demand. You can even set up automated reordering to maintain levels of key stock as standard.
Reporting
Data drives business. Today’s technology can collect and process incredibly detailed data insights so you can better understand your customers, what they want from you and your business growth. What gets measured gets managed. You can be proactive about adapting when needed and doubling down on what’s working.
Customer relationship management
Buying a car is a multi-step process so a successful dealership requires a reliable customer relations management system for responding to inquiries, following up with leads, closing the sale, and supporting customers post-purchase. With a CRM embedded into your main system, it’s a seamless workflow.
Service management
Dealerships service cars as well as sell them. This aftercare is just as important to the customer experience and therefore success of the business. Look out for service management features such as automated scheduling and reminders to upgrade your servicing.
Vehicle dealing management
Selling vehicles is your bread and butter. Make sure your DMS has the capabilities to support that, for example, with integrations to OEMs and other essential tools for marketing, selling and closing deals with buyers.
Accounting
Don’t let lengthy and laborious payment processes be the reason you don’t close sales and reach your quota. With the comprehensive financing capabilities available with DMS software, accounting is made easy.
Sales automation
There are multiple parts of the sales process that are quite repetitive. Using templates and automation, you can efficiently help customers make their purchase decisions. For example, buyer’s guides could be automatically sent to customers after they book a test drive.
Credit application
As vehicles are high-ticket items, dealers usually offer multiple finance options. Streamline this stage of the sales process by embedding credit application into your DMS.
Employee management
A DMS isn’t just for managing customers, it can help you manage your team by embedding key employee processes into the system such as scheduling shifts, tracking performance and even housing employee training.
Lead management
The customer journey starts at the first contact a prospect has with your business. Keep on top of and in contact with your pool of leads through the communication tools available in your DMS.
Marketing
It all starts with the marketing you put out inspiring potential customers to get in touch and start the customer journey. Managing and tracking your marketing efforts is possible within your DMS.
Top Dealer Management Software Platforms of 2024
Podium
This is an all-in-one lead generation platform that’s powered by AI. Its capabilities include:
- Online review management
- Integrated payments, text marketing and webchat
- A unified inbox that tracks customer conversations across communication platforms
- Integrations with OEMs
CDK
This is a dealership Xperience platform that offers seamless automotive retail solutions including:
- Intelligent data insights
- Finance and insurance management
- Customer relationship management (CRM)
- Digital retail that supports the integration of online and in-person sales
Dealertrack DMS
This is a centralized system for managing the day-to-day transactions of a dealership including:
- Funding packages
- Registration and titling
- Loan applications
- Rental agreements and other contracts
Dabadu XRM
This is an efficient, secure and sustainable CRM with extra benefits including:
- Lead management
- Ongoing customer communication
- Inventory management
- Credit application management
VinSolutions Connect CRM
This platform offers dealerships a suite of solutions including:
- Customizable customer relationship management
- Performance management
- Data-driven insights
- Targetted marketing campaigns
Tekion
This is a cloud-based platform that offers end-to-end automation of dealership processes through:
- SOC 2 Type II security designation
- AI-powered personalized selling
- Digital retail
- Open APIs
DealerCenter
This platform is designed for independent auto dealers, providing them with capabilities such as:
- A mobile app
- Inventory acquisition and merchandising
- Customer Relations Management (CRM)
- Buy Here Pay Here (BHPH)
A DMS is vital for dealerships to optimize operations, enhance the customer experience, and maximize profits in the competitive used car market. Podium has the DMS tools you need to hit your monthly quota and then some.
