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Auto Business Outlook: Specials Magazine
When looking at the benefits of cloud computing, you have to start with customer satisfaction. Customers are demanding high levels of services in return for their loyalty. By entering this new era of intelligent and sustainable technology, automakers and manufacturers will need to demonstrate and deliver real value. Cloud computing provides other benefits such as Software as a Service (SaaS), Infrastructure as a Service(IaaS), and Platform as a Service (PaaS) that allows for self-service capabilities without having the complexities of purchasing, managing, and maintaining basic hardware and software requirements on a dayto-day basis. It also enables quicker deployment of information that helps automakers and manufacturers move past the era of siloed IT and into one that promotes collaboration with partners, suppliers, and customers. Cummins has effectively leveraged cloud resources to address the need for additional High Performance Computing (HPC) resources in the engineering space.
Inventory Management & Marketing
“A picture is worth a thousand words.” And, what about videos? "A video is worth a million!" AutoSource Group—an innovative vehicle marketing services provider—is turning this idea into reality by pioneering live videos in a way never envisioned in a dealership environment before. “Videos interact and engage the consumer in a way that pictures just can't do. This, in turn, facilitates conversions and generates sales,” says Kevin Beck, Senior Vice President of AutoSource. That said, even professional, high-quality photos act as a gateway to attracting shoppers and improving overall online vehicle marketing results. AutoSource helps dealers update their online inventory all throughout the week with premium quality vehicle photos clicked by professional photographers, thereby improving time on site and conversions. The company provides auto dealers with interactive vehicle marketing features, including excellent photos and engaging videos to convert shoppers into buyers. Beck goes on to illustrate that if customers check out five stores online, they are likely to walk into 1.2. As such, a dealership has approximately 20 to 30 percent chance of the same online shopper coming in and purchasing their inventory versus customers who haven’t visited the online store. This clearly implies that presentation is of paramount importance. “Staying true to our motto—‘we are a partner to our dealerships and not a vendor’—we provide our dealers with the best online presentation available in the business on a consistent basis and maintain constant communication with them. With a solid reputation in the automotive industry, we are one of the best lot service providers in the market,” asserts Beck. AutoSource’s technology is powered by HomeNet Automotive’s—a leading online vehicle merchandising insights and services provider—Internet Vehicle Marketing Suite.
Automotive Product Consultants
There is no denying that the COVID-19 pandemic has wreaked havoc across multiple sectors. And the automotive industry is no exception. Following the news of the outbreak early last year, an international consulting firm, AlixPartners, estimated a drop of 36 million new vehicle sales globally. Unfortunately, the prediction has been true. As per the market statistics, auto sales in the U.S. alone dropped by 47 percent last year—plummeting demand for cars and causing many panicked car dealers to dump their inventories—in an all-out frenzy. However, those deep in the trenches of the automotive industry believe the current situation is not going to remain all doom and gloom for car dealers. While the pandemic triggered a sudden dip in new car sales, it also created more demand for used cars. If we are to believe the industry trends, one factor driving this used-car demand is consumers who are concerned with the hygiene of public transports but don’t want to invest in costly new cars amid the pandemic. What does this mean for auto dealers? It means that they still stand a chance of reinvigorating their dealership businesses if they start selling the in-demand used cars at the right time, and for the right price. So where is the hiccup, one may ask? Well, it’s important to keep in mind that this consumer interest in used cars is coming after most auto dealers have dramatically reduced inventories of both old and new cars. As a result, many of them are now underequipped to handle the rebound and growing market demand for used cars.
The automotive sales industry is continually evolving and reinventing itself to meet the standards of a new normal. Auto dealers have realized that selling vehicles alone is not the key to driving maximum profit. Dealers are now switching gears and exploring ways to increase revenue with finance and insurance (F&I) products and drive more business to parts and service departments. With top-quality vehicle service contracts (VSC), dealers can provide peace of mind and coverage for future, unexpected vehicle repair costs for their customers, which makes for a great customer experience and leads to incremental sales. However, dealers are often prone to losing revenue and customer loyalty when third-party marketers sell inferior VSCs to their customers. They need an effective post-sale marketing partner that can equip them with the right tools to sell their VSCs after the customer leaves the dealership. Enter Automotive Product Consultants LLC (APC) and their Post- Sale Vehicle Service Contract Marketing Program. APC is an experienced, proven leader in post-sale VSC marketing for the last 20 years in the automotive industry. The company partners with administrators, original equipment manufacturers (OEM), and dealers to help them earn additional income with “turn-key” revenue-producing programs driving incremental service contract sales with no-cost, dealer branded programs.
CXO INSIGHTS
FCA Sees Opportunity for a Positive User Experience with All-new Uconnect 5 In-car Technology.
Vince Galante, Chief Designer of User Experience, FCA Fiat Chrysler Automobiles
Are You Ready for the Future?
Sebastian Fuchs, Managing Director Manheim and RMS Continental Europe, Cox Automotive
How Modernized Encryption Standards and TLS 1.3May Impact Your Security Strategy
Ben Schoenecker, CISSP, Director of Information Security, Hendrick Automotive Group
IN FOCUS
How Does Inventory Management Help in Used Car Dearlerships
Inventory management for car dealerships enables businesses to arrange their cars, quickly find vital information about the used vehicles, and merchandise the offerings online.
EDITORIAL
The Software-Driven Future of Automotive Dealerships
Today, the increasingly customer-driven market trends of the automotive industry are driving leaders to implement software offerings that can help them efficiently manage their deals. In light of this, investments into the deployment of tech-driven dealer management systems are at an all-time high owing to their ability to save time and maximize productivity. Moreover, dealership management solutions are aiding dealerships to overcome the hurdles caused by the disparate storage of critical information by consolidating and coordinating data across all separate systems. From a technology standpoint, the emerging dealership management offerings leverage big data analytics to help dealers gain a deeper understanding of their customer’s needs by analyzing their behavioral patterns, financial status, and more. At the same time, with VRpowered technologies, dealers are delivering a 360-degree viewing experience to their potential customers, saving time and resources. Alternatively, AI-based assistants are automating customer engagement processes such as calls and reminder emails, thereby minimizing the reliance on cumbersome processes and boosting the overall operational efficiencies. In this edition of Auto Business Outlook, we bring you the story of some of the most prominent dealership management solution providers that deliver the best outcomes for their clients. This edition also offers a combination of thought leadership from subject matter experts with reallife stories on fostering robust partnerships and exclusive insights from CIOs and CXOs. We hope this edition will provide you with the right assistance in choosing the dealership management solution providers that best suit your requirements. Let us know your thoughts.
