Last June, dealership management system giants CDK Global Inc. and Reynolds and Reynolds Co. acquired digital retailing platforms that gave them inroads into online vehicle sales.
Both companies recently shared more details about how they're integrating the platforms into their DMS products and what capabilities they're unlocking for dealerships.
CDK, which bought Palo Alto, Calif.-based Roadster for $360 million, has seen an uptick in dealerships adding Roadster, COO Joe Tautges said on the company's fiscal second-quarter earnings call last week. Those gains are happening among dealerships that use CDK's DMS platform, as well as those using a competitor's system, Tautges said.
Mahesh Shah, CDK's chief product and technology officer, said CDK is enabling more robust digital transactions.
"When using our CDK modern retail product suite, we are now able to support a simple online experience where dealer customers can complete a full purchase online or through a seamless and synchronized combination of online and in-store," Shah said on the earnings call. "Through a combination of Roadster and our cloud platform, we have now digitized the entire workflow."
Leaders at Reynolds and Reynolds, which bought Gubagoo, of Boca Raton, Fla., for an undisclosed amount, consider the provider of conversational and digital retailing tools as a key piece of the company's Retail Anywhere strategy, said Chris Walsh, who was promoted to the role of Reynolds' president in January. Reynolds is working to help dealerships transact with customers online, in-store or in some combination, a process also referred to as omnichannel retailing.
The company will heavily focus on ensuring Gubagoo seamlessly interacts with the DMS and its inventory, desking, finance-and-insurance and e-contracting processes, Walsh told me last week.
"We've made a ton of progress on the e-contracting side of things and a lot of progress on the F&I side of things," Walsh said. "When they do get to the F&I side of things, those payments really have to match to the penny, so we built out that engine so that it does match to the penny."