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Welcome to the Tips & Tools to do it right. A project between Ally and Automotive News Content Studio. On this page, we'll highlight news and insights from around the automotive world. Research, Information & Insider Tips to help do it right at your dealership. We'll feature industry experts to address real life situations that arise in the retail automotive environment and recommend proven tools to lead your store and employees on the path to continued success

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24 December 24, 2018

Do it Right: With Technology in 2019

New Year, New Tools

Whether it’s online tools to acquire, price and market used cars; data analysis and ad-purchasing systems; or online auto retailing apps and platforms for customers, new technologies will remain at the forefront of dealership discussions in 2019. As auto retailers seek to become more digitally savvy and add more online tools for staff and customers, the experts — perhaps surprisingly — recommend that all those shiny new objects not distract dealers from the basics of the business.

Tech Tips and Takeaways for 2019

Aaron Krane predicts that online car buying will reach a tipping point in 2019 — not necessarily as measured by the number of transactions or customer interest but in industry exploration of online services. Krane offers dealerships two pieces of advice: Strategically, he says: “Keep it simple. Online buying is a new opportunity for dealerships, and there are a lot of different solutions out there — different ways dealers can invest and focus their time and business. My advice is to avoid things that … require a complex setup or a complex operational change or a complex new piece of hardware in the store.”

 

KRANE’S TACTICAL ADVICE:

• Invest in what you already have; don’t compete against it

• Choose products that leverage your website, not just sit alongside it

• Embrace solutions that make your sales team more interactive with customers

 

 

 

Chris Sutton recommends that as dealers add digital retailing options, they should make sure online buying doesn’t look to customers like the same old lead-generation tools. “I have heard dealers say they’re not getting as much as they thought from digital retailing,” Sutton says. “But if a customer goes online and the first thing a dealership asks for is his contact information — before the dealership has given him anything as a customer — that shopper may just say, ‘I’m out,’ ” Sutton says. In addition, he says that despite interest in online buying, customers tell J.D. Power’s New Autoshopper Study that they hesitate to submit financial information online — both because of the size of the transaction but also because of fears that it might trigger a credit report and might affect their credit score.

 

SUTTON’S TACTICAL ADVICE:

•  Allow customers to get information, pick a vehicle and explore options before asking for

their information

•  Make it clear to customers that their personal information is secure

 

 

Adam Tobias says that despite all the digital tools and metrics available, a dealership should not lose sight of what’s important to customers and the business. “I look at data from thousands of dealerships every day,” Tobias says, “and there’s a common trend: It doesn’t matter whether it’s a franchised dealer or independent, doesn’t matter what region they’re based in. Successful dealerships know what they’re good at. The highest-volume dealers of any brand are those who sell a lot of core product. Dealers fixate on the market days supply number, the price and the metrics. And in reality, it’s about what they can sell — what their staff is good at selling and what their audience expects from them.”

 

TOBIAS ON 2019 PLANNING:

“As the used-car market gets more competitive in 2019, with prices rising, it’s more important than ever to stay focused. It doesn’t matter if you use complicated technology or not. If you focus on what you’re good at and what your team knows, it will work for you.”

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