Successful tactics of forward-thinking dealers

The last several years have been filled with challenges and obstacles for dealerships. Some of these challenges were new, and others were part of the usual ebb and flow of the automotive industry and the economy.

Despite supply shortages, fluctuations in vehicle pricing, tight credit availability and more, some dealers proved especially resilient. To find out what makes a dealer more likely to succeed and stay ready for the future, Cox Automotive did an in-depth study of more than 500 dealers. From those study results, we’ve identified how forward-thinking dealers sell more vehicles and earn more profits compared to dealers who have not fully advanced their mindset and operations.

To understand what differentiates these forward thinkers in the areas of marketing, inventory management, sales and service, we’ll look at a snapshot of key tactics that these dealers employ in each category.

Marketing Tactics: Making the most of consumer data
 

Forward-thinking dealers use their CRM to its fullest extent:

• Keeping data up to date

• Integrating the CRM with their website

• Actively managing leads and messaging

• Personalizing communications and advertising for customers

• Targeting local consumers for service beyond current customers

Areas of opportunity:

• Immediate response to leads via chatbots or virtual assistants

• Adding automation to pre-qualify leads for sales

• Online transparency for menu pricing and products

Inventory Management Tactics: Strategic acquisition, pricing, and merchandising
 

Forward-thinking dealers understand that maintaining the inventory appropriate for their market requires planning and data:

• Developing a vision for inventory that guides acquisition

• Optimizing prices based directly on market data

• Budgeting for resources to manage inventory • Using syndication to broaden sales reach

• Investing in technology such as video or 360-degree views to showcase vehicles

Area of opportunity:

• Continued investment in efforts supporting a long-term vision for acquisition

Front-Office Sales Tactics: Maximizing profitability at each step of the deal
 

Forward-thinking dealers use customer data to help buyers select the right vehicle at the right time with the aftermarket products that meet their needs:

• Providing online vehicle selection with advanced filtering options such as monthly payment, distance, MPG, etc.

• Tracking optimal customer trade-in times based on equity position and triggering personalized emails with trade-in offers

• Recommending specific aftermarket products to buyers online (including pricing and descriptions) based on their data

Areas of opportunity:

• Optimizing trade-in vehicle inspection with 360-degree image capture and intelligent damage detection

• Digitizing the trade-in payoff and lien and title release process via integrated API

• Using AI to automate desking with reliable, personalized monthly payments, online deal structuring, and lender decisioning

Service Tactics: Optimizing service management and customer interactions
 

Advanced service tactics are a huge opportunity for dealerships and the most forward-thinking dealers are using technology to:

• Keep vehicles moving through the service lanes with closer communication between service techs and the parts counter and promote open service bays during slow periods.

• Allow customers to schedule service appointments in more ways, including text or online chat.

• Include pricing and transportation options when customers schedule service online. • Provide digital multi-point inspections and quoting via call, text or email for customer approval.

• Ensure first service appointments with a handoff between sales and service – and leverage integrations between the CRM, scheduling tool and service inspection tools for future marketing.

Areas of opportunity:

• Adopt an electronic dispatch program to assign service work to technicians.

• Email customers when open service slots are available or to promote specials and discounts.

• Video chat with customers to share their multi-point inspections and gain approvals, and to discuss video issues and repair information.

• Check into the service department via kiosk or mobile app. • Use electronic contracting to manage loaner transactions and geofencing to track loaner vehicle locations.

Next Steps for Becoming a Forward-Thinking Dealer
 

Forward-thinking dealers have the advantage of preparing for what’s next while reaping the benefits of that preparation now. To find out more about how these dealers think and plan, download The Forward-Thinking Dealership eBook