Some dealers have a love/hate relationship with the Dealer Management System (DMS). They depend on the functionality that the software brings but they hate long-term contracts and the cost associated with the technology.  Placing a value on DMS is not the point of this article.  I would like to focus on the death of DMS systems, as we know them today.

Rarely do I see online forums discussing the latest updates or features in DMS software.  This may just be a reflection on the “boring” nature of DMS software or the lack of real updates from DMS vendors.  What I do see are article about the new features added to popular CRM systems.

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Customer Relationship Management (CRM) software was originally a way to track leads and customers in a database.  Early CRM software made it easier to create follow-up systems via phone or email.   The CRM software had a defined role.

Today, when you look at automotive CRM software, the scope of features and functionality are significantly larger than the original definition.  CRM software is becoming the operational “dashboard” for the dealership.  Automotive CRM software is integrating data from dealer websites, Adwords, Analytics, inventory, merchandising, leads, phone systems, mailing houses, and the list goes on.

I found a marketing flyer produced by VinSolutions about 2 years ago.  This excellent marketing tool asked dealers to write down the costs associated for software products and tools used at dealerships.  At the bottom of his long list, the dealer was asked to total up all those costs.   The punch line was that the VinSolutions website technology and CRM replaced all those individual expenses.  It made an impact on me and I’m sure on dealers as well.

That was two years ago!  Since then VinSolutions has added dozens of new features to their integrated marketing platform, which stirs up some questions for us to discuss on DealerRefresh:

• Is the new breed of CRM products designed to eventually replace the DMS?
  
• Will the best integrated website and CRM companies get dealers stay glued to their integrated tools and reports?
  
• Will DMS become a secondary player; a plugin to the integrated marketing platform’s dashboard?

VinSolutions is not the only company that has and will redefine the term CRM and integrated marketing tools.

I have had the pleasure to see the new Dealer.com CRM software, which will be introduced to the marketplace later this year.  The CRM software tools and dashboards, which integrate seamlessly into their single login platform, were honestly breathtaking.  There is a tsunami of change coming to the automotive industry for companies that have integrated, end-to-end software solutions.

Dealer.com's CRM will give their dealers unprecedented access to data, which will allow their teams to run more efficiently.  The ability for dealership employees to work anywhere, access data on any device, and be held accountable for business processes and workflows is without peer. Dealer.com has a wide range of products on their single integrated platform. CRM was the only glaring hole in their product strategy and now it has been expertly filled.

The product roadmap, although not shared with me, was obvious to me.  Create an indispensable, robust software platform that gives dealers valuable insights into all areas of their business. It is clear that if accounting is on their feature list, DMS as we know it, may become history.

The companies that can provide an integrated platform will, over time, squeeze out single solution companies and our industry will take a major step forward in productivity and profitability.

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Are the CRM products, produced by VinSolutions or Dealer.com, really just CRM?   Absolutely not, they are and will increasingly become the primary dashboard for dealership operations.

A few months back I wrote an article that the new Autotrader.com companies just needed to purchase a DMS vendor.  Now, I am ready to take that statement back.   Why purchase a software company that has a limited, decreasing role when VinSolutions’ own marketing platform can be expanded.

As I look at things from this perspective, will the ADP/Cobalt technology marriage also produce a very strong, integrated software platform where the lines that were once CRM and DMS are blurred?  Will VinSolutions’, Dealer.com’s, and ADP/Cobalt’s integrated marketing platforms shrink the automotive website marketplace from 50+ vendors down to a few dozen?

Time will only tell but the role, function, and future of integrated marketing platforms based around intelligent CRM software looks like DMS killers.

Kevin Frye, Shawn Petley, Jeff Kershner and Alex Jefferson
at Digital Dealer 12

Kevin Frye reviews Digital Dealer 12

by Kevin Frye

Have you made your list? I started Digital Dealer 12 with what might be my favorite part, the Peer Networking roundtable discussions that kick-off the conference. I gathered with the Knights of my Roundtable, and we immediately got to business sharing our immediate concerns, including the rising costs of Search Engine Marketing in our respective markets, the rapid growth of mobile technology and how we as dealers can embrace it, as well as many other issues that face us day to day as dealers. It was also an opportunity to catch up with old friends, including Gordie Boucher, Shawn Petley, Kevin Gordon, Nick Williams, Alex Jefferson and more. One of my greatest suggestions when attending these conferences is to create your “list”, which is a list of email addresses of your peers in the industry that can help you as you seek to answer questions in your day to day work. Curious about a new vendor? Unsure how to handle a negative review? These and many more questions can be quickly sent to an email distribution list that you create in Microsoft Outlook to your peers to get their valuable input to make you a better eCommerce Director.


The Knights of the Peer Networking Roundtable at DD12

How low can you go? Let’s address one hot issue being discussed right out of the gate – was there low attendance? The attendance and energy did seem to be less than prior shows, though I have not seen any official numbers. Mike Roscoe shared some frustration that the conference faced an issue with availability of hotel rooms with another major conference going on at the same time in Orlando. Others speculated that having the conference at the beginning of the month removed a lot of people who had to close out their monthly reporting. And finally, with 2 shows a year, many people are choosing to wait for the excitement of Vegas in the fall and are either watching their budget with attending only one show a year, or perhaps going to Digital Dealer in the fall and attending another show as well. I did hear some frustration from folks expressing that there was “no new content” at the conference, but when I asked them what they were looking for, most did not have an answer. I believe there was new content, but I find it more often than not from other dealers that I am networking with while at the show.

 
Rich Lucy, Joe Berna, and Lisa Jo Swain at “The Makings of a Great Internet Director”

Are you an “Old School Fool?” I attended “The Makings of a Great Internet Director” panel moderated by Joe Webb and featuring Joe Berna, eCommerce Director for the Hubler Automotive Group, Rich Lucy, the eMarketing Director for Tim Dahle Nissan, and Lisa Jo Swain, the eCommerce Director of Operations for the SunStar Network. Joe asked several questions from the panel, including what were some of their greatest challenges . “Old school car thinking gets in the way” shared Rich Lucy, and I agree, this is one of the greatest challenges that all of us face. Lisa Jo Swain had several memorable quotes, including “I am like a crying Hitler” and “I use the throw them under the bus approach” on how to keep her people in line. Wow, strong words, BUT – is this how you are leading your people? Unfortunately, many in our industry do this every day and find that it is what works best for them. Why do you think that is the case and what are your suggestions?

Chuck Olsen and Greg Coleman after “50 Best Practices any Dealer can Implement”

 

Open mouth – insert fire hose. Many attendees are looking for a great list of “things to do” when they attend Digital Dealer. Greg Coleman of the Oxmoor Auto Group shared “50 Best Practices any Dealer Can Implement” in a fast-paced session, sharing a long list of helpful tips that can help improve your dealership with its online efforts. I liked the fact that Greg created a website, www.50bestpractices.com, where people could go after the session to see all of the tips, as trying to take notes on every item would be overwhelming. Nice job Greg!

 
Phil Sura, Beth Van Story, Shaun Kniffin and Mike Groves talk Video

If Video Killed the Radio Star, what will it do to automotive websites? Another panel was on my list with Phil Sura of UnityWorks Media moderating “Best of the Best Panel Discussion”, featuring Mike Groves, eCommerce Director of the Apple Auto Group, Beth Van Story from Thinkout Consulting, and Shaun Kniffin, Director of Internet Sales for Germain Motors. I am really watching video closely in 2012 as it appears that Google is again giving great significance to video with its latest Panda rollout. On the non-technical side, you should be placing emphasis on the use of video on your website – your virtual dealership, as video provides a rich user experience for your shoppers, and this panel represented several people who were using video to do just that. I believe Mike Groves is a rising star in our industry, with a significant knowledge of how to do things right with automotive eCommerce, but more important, having the passion to put it into place.

 

Jonika Hoomes fields questions about Google

Pee Wee Herman says the “word of the day” is ZMOT. The 2 things I heard most at Digital Dealer 12 were “Zero Moment of Truth” and “What did you do to your arm?” If you are not on the ZMOT train, you might quickly be confused with a ZIMA drinker, aka someone who is behind the times. Jonika Hoomes shared Google’s findings that there is a 4th step in the marketing mental model, known as the “Zero Moment of Truth”. During the ZMOT, consumers do their research, get smart about alternatives, read reviews, comparison shop, and look for specials. Some key facts that Jonika shared included that consumers visit 18.2 website sources for auto research, compared to about 10 for researching for a vacation. Did you realize that your shoppers are completing this much research? Remember my previous paragraph discussing video? Google shared that 80% of auto shoppers LOVE video. Hmmm, with that knowledge in hand, do YOU think that Google will emphasize video in its search results? And finally, Google shared that 25% of car shoppers use mobile during their research efforts. My dad always said I had a strong back and a weak mind, but even I can see that video and mobile should be part of your eCommerce recipe for success in 2012.

 

 
JD Rucker, Shawn Petley, Alex Jefferson and Jerry Thibeau catching up at the VIN Bash

Bottoms up! The exhibit hall opened with appetizers and cocktails, which is always a great recipe for making decisions on choosing new vendors! It is always fun to meet up with great friends in the industry, while meeting new folks as well. Which brings up one of the first items that were in several conversations – where was Dealer.com? Dealer.com typically has a large presence at the conference as they have a large amount of attendees as customers, and of course are always looking to find more. Many people seemed genuinely annoyed that Dealer.com did not have a booth as they were looking to meet with them for assistance (current customers), and others interpreting the non-presence of Dealer.com as a message that “this conference is not important enough for us to have a booth at”. Would love to hear some input from Dealer.com as I certainly don’t have the answer, but I did hear the frustration.

 

Bryan Armstrong, Kevin Frye, Nikki Allen and Shaun Raines

Did you ever know that you are my hero? (humming along to Bette Midler’s song…). It was great to see my good friend Shaun Raines. Sorry Shaun, but I have to share that you have been a leader for me since the early days of this conference, as someone driven to change our industry for the better from the inside out. I also had a great time visiting the DealerOn booth and meeting with Amir Amirrezvani and Jerry Pettoto. Amir and his team gave me what certainly would have been the leading photo of this review, but last minute editorial decisions ruled that out. You might be able to persuade Amir to send you a copy of this photo, which I promise was quite funny…

 
Amir Amirrezvani and Jerry Pettoto with DealerOn

Sorry Mike, but Kim is much better looking… Kim DePalma was introducing Auto-Bio, with its first time appearance at the show sharing their custom “story book” and digital guide for each of your pre-owned vehicles. Every pre-owned vehicle has a story, if you can tell it, you can sell it, and Auto-Bio presents a solution that enables you to simply do that with your customer. Take a look at www.auto-bio.com and watch the short video. I did have a chance to talk to Mike Roscoe about several things while at the exhibit hall. Mike shared some intriguing ideas they are looking to implement to build upon the success of the Peer Networking Roundtables in upcoming conferences. Maybe a “roundtable on steroids” this fall? Not sure, but something to look forward to.

 

Kevin Frye with Kim DePalma and Kevin Gordon

Text “Are you ready” to 12345… Text Marketing – is it here? I have closely followed text marketing since its inception, and have found that most of the Fortune 500 companies have built their text databases extensively, but were unwilling to market to them due to legal concerns. It appears that the market is now maturing and if I understand this correctly, if you are not trying to directly sell something via your text broadcast, you can utilize text marketing to announce events and similar things. Do I have this correct? Please let me know if not. Two of the text marketing solutions I visited included www.edificegroup.com and www.diamonddigitalsolutions.net. Shawn Petley, eCommerce Director of Quality Imports shared that this is working very well with his digital marketing efforts and I am curious as to how this will grow as mobile is so important to our market at this time.

 
Dave Dumphy with Diamond Digital Solutions

The C-List? OK, here is my challenge for the exhibitors. Listen, I like the celebrities that you bring to the shows, but can we mix it up a bit? Certainly, I love “the Gunny” and Johnny Rodgers, but it’s always nice to meet some new faces. How about Henry Winkler – the Fonz? I know he worked the local Calvacade of Customs Show… Readers – who do you want to see? Let’s hear it!

 

VinBash Blue Man!


I’m so blue… Did the Blue Man Group come to Digital Dealer 12? No, but close… One of the funnier moments of all of these conferences was attending the VinSolutions Bash on Tuesday night. The party was poolside and VIN decided to try and imitate their logo by having huge plastic balls in the pool with a “blue man” inside who would dance and flip along to the music while floating in the pool. I had to take one of Vin’s pics to share with you. Absolutely hysterical! I have a crisp one hundred dollar bill if VIN repeats this stunt with Sean Stapleton inside in the blue costume… Great time!

 

Sean Wolfington and Shawn Petley – Great presentation Sean

Is the label on your 2 soup cans connected by string considered to be mobile marketing? Sean Wolfington kicked off Wednesday morning with “The Mobile Revolution is Here and Now”. Sean shared many useful facts about the relevance of mobile to our market, while inspiring attendees to continue to push themselves for their best performance. “Give the customer what they want and anticipate what they want” was one of the quotes that Sean shared that I agree with strongly. Anticipating what they want means providing alternate cars to look at, offering online trade-in and finance tools, and more. I have seen Sean several times before, but I felt this was one of his best presentations and I agree wholeheartedly that if you are not embracing mobile, you are behind the curve.

 
Having fun with AJ Maida and Katie Richter at The Blue Martini

It’s not just about selling… My next session was spent in the exhibit hall where I met with current vendors to address pending issues for my group. While I apologize that I missed reviewing some more sessions for you, I would also share that this is one of the areas where I find great value at Digital Dealer. I will save major issues I need to address with vendors and bring them with me to the conference to sit down in person with my provider and work things out. I met with AutoTrader, KBB, VinSolutions, Blackbook, and more, learning about new products and seeking help with current solutions I have in place.

 

Alex Jefferson, Mike Roscoe and Igor Kalassa having a great time at the Ice Bar


Caught between a rock and a hard place… Shaun Raines moderated “Knowledge is Power” and did an exceptional job. Why? Let’s face it. When you have a panel, the conference must provide a large room to accommodate the stage, table, multiple panelists, and a moderator, as well as a large number of attendees. The problem is that a panel is supposed to be engaging, but it is very hard to do that when some of your audience is over 100 feet away. Shaun showed how to engage the crowd by leaving the stage and spending his time in the audience, a la “Oprah” style, and using unscripted questions posed by himself and the audience for the panelists. This was a great panel session. One of the key points people received was from Bryan Armstrong, who shared that he uses other dealers as his primary “consultants” when it comes to questions and issues he faces every day. Sounds like Bryan has one of those “lists” I was talking about…

 
A roomful of smiling faces are waiting for my Buffoon stories…

Do you know the name of my cat? I presented “The 7 Highly Ineffective Habits of Internet Buffoons” after lunch and had a wonderful group of dealers to interact with. Before I present, I like to try and meet with some of the dealers who sit in my session and I was able to meet 2 young Internet Managers from Paul Sherry Chrysler Jeep Dodge RV, Luke Schenkel and Ryan Lashaway, who are trying to take their dealership to the next level in eCommerce. My answer was to take them upfront to meet 2 young eCommerce Directors I met 2 years ago that have been doing the same thing in Canada. Just like Alex Jefferson and I have been mentoring Kevin Gordon and Nick Williams, we are now encouraging them to mentor these 2 young dealers. Passing the baton – the relationships you make at these shows is what make them most valuable. And if you missed my session, you missed some great embarrassing pics of several of our industry leaders, including Jeff Kershner…

 

Jim Flint gives my favorite presentation with Moneyball: Prioritizing your Digital Ad Spend


My favorite session. Hands-down, it was Jim Flint’s “Moneyball: Prioritizing your Digital Ad Spend”. Jim did a great job utilizing the movie “Moneyball” as an analogy for putting together his batting lineup when determining where to spend his automotive advertising budget. Jim walked us step by step through his thinking on where to put his advertising money. His approach is to allocate the spend to where the sales are coming from – and I agree. Take a look at Jim’s eBook at http://info.localsearchgroup.com/moneyball. I would strong recommend Local Search Group as Jim is one of the true superstars in the industry and he knows automotive marketing inside and out. My only complaint was that I did not have this same exact session last fall when I was putting together our 2012 advertising budgets!

 

Look who I found! Andrew Difeo and Stan Sher

I need me some social… Alexi Venneri moderated “Social Media Results Unveiled” where we learned about the social media efforts of several dealers, including Jim Flint, Brad Mugg, GM of Norm Reeves Honda Superstore, and Adam Simms, Managing Partner of Price-Simms Automotive Group. One of the things that stuck in my mind was that they found 70% of dealer Facebook pages do not have an inventory tab. If you are not supposed to sell in social media, is this a mistake? Share your thoughts! Alexi also shared that many dealers fail to post any of their dealership reviews, which I do believe is a mistake, as social to me is what other people have to say about you, and engaging with them.

 

Nick Williams and Kevin Gordon of the Jim Pattison Group enjoying the 22 Degrees Ice Bar


Data Data Data... Wow, we have so much customer data available to us now that it is overwhelming. David Winter and Max Steckler presented “Win Every Moment: Selling Across the Entire Digital Consumer Journey”, offering practical insights on online automotive shopper behavior. Did any of us think that we would have this much inside info on our customers shopping behavior 5 years ago? While there was a lot of data shared, perhaps the best nugget to walk away from at this session was that the best bang for your buck is retargeting. This is a must to get those “be-backs” for your virtual dealership.

 
Want a massage with that message? Dealers United has the most unique booth

Who’s talking behind my back??? The buzz on the floor was Dealers United. First – congratulations to Dealers United on the most creative booth. Visitors could stop and get a relaxing massage while watching a short video on how Dealers United works for their benefit. By the time the show ended, my good friend Kevin Gordon had received about 15 massages and knew the video word by word… Dealers United was right next to the Homenet booth and I had to laugh about the positioning, but I would also share that the folks at Homenet had nothing but great things to say about Jesse Biter.

 

Kevin Frye and Jesse Biter – Jesse fields the tough questions


Straight from the source… I was able to spend some time with Jesse and share some of the hard questions that were being discussed on the floor. From the vendors’ side, many vendors were complaining that the commission they would have to pay Dealers United to participate would equate to a deal for the dealers that would not be optimum. “Absolutely not” was the answer Jesse gave me. Dealers United is providing a guarantee that we as dealers get the absolute best deal, and Dealers United retains the right to audit their chosen vendor to ensure that no other dealer gets a better dealer than the one provided by Dealers United. The other issue from larger dealer groups was “what can Dealers United do for me that we don’t already for ourselves with the buying power of our group?” “You have nothing to lose” shared Jesse. Let’s say you already have a great deal with a current vendor, but Dealers United gets an even better deal from that same vendor. You can then accept that better deal and the agreement with Dealers United is that they are obligated to accept you at the better deal. Sounds like you have nothing to lose and everything to gain…

 
Vanessa and Joe Webb – now we know what makes Joe so great


Nothing new at this conference – really? This might be the most exciting initiative in our market at this time. Jesse has certainly proven himself as providing a first class product for automotive with Homenet, and I am confident his goal is to do nothing less with his efforts with Dealers United. I know that many of the dealers I have spoken with want to sit on the sidelines and see how this works out, but I have to share that I am excited about where this is going.

The hardest working guy in automotive press... Dave Barkholz from The Automotive News is constantly roaming the floor and speaking with dealers, while also attending multiple presentations. Dave works hard to keep abreast of what is going on in our industry at a personal level and I am impressed. I would suggest that is why he is one of the best writers at Automotive News…

 

Mark Boyd and April Rain at The Ice Bar event hosted by Edmunds.com and DealerOn


I have heard about Purple Rain, but what about April Rain?.. April Rain did a great job hosting the party at The Ice Bar, sponsored by DealerOn and Edmunds.com. If you have not been there, it is a unique club that features an “ice bar” that is 22 degrees inside and features a large variety of flavored vodkas served in solid ice glasses. I have to share that I was at a loss when I placed my solid ice glass onto the solid ice table to take a picture, and then turned around to find that my glass was frozen to the table… I was finally able to meet Joe Webb’s better half Vanessa while there and catch up with Joe’s great success in our industry (another one of my inspirations..).

 
Does vodka served in a solid ice glass in an ice cold room get any colder?


He drank an itsy bitsy, eenie weenie glass full of Blue Martini… The Blue Martini was absolute chaos this year, packed to the absolute limit with both dealers and vendors. Sponsored by ActivEngage,  HookLogic and HayStak, it felt like “Walk of the Penguins” trying to walk from one end of the club to the other. Add to that my arm in a cast and getting a drink could be quite a challenge, UNLESS your friend is Joe Webb and he is taller than anyone around you. Thanks for taking care of me Joe! Speaking of AE and HookLogic, we are trying their product at our Cincinnati Chevrolet dealership and are quite pleased. Take a look at the inventory pages to see for yourself.

 
The Blue Martini event hosted by Activengage,  Hooklogic and Moore & Scarry is packed


Summing it Up… Once again, I walked away with a large list of “things to do” when I return. I take that list and start inputting tasks into my Microsoft Outlook for follow-up after the conference, and I bring home a lot of great ideas. The ideas come from my roundtable, vendors, presenters, and others that I network with during the show, so I find value in many different areas. Most of all, these conferences inspire and motivate me to become better at what I do, as I meet so many people with excellent ideas and vision. Keep up the great work everyone, and I look forward to seeing you at Digital Dealer 13 in Vegas!

by Kevin Frye

As I return home from three, week long trips to various dealerships, I can’t help but reflect on the similarities. There is something so serene about being on a plane; maybe it’s because I can avoid all the day-to-day, hour-by-hour, distractions and focus on a few topics rather than fifteen! I have seen 9 different dealerships this month and I am in each dealership for the same reason - to consult and provide sales team training.

I beg the question, how can 9 different dealerships suffer from the exact same setbacks? 

The internet prospects and incoming phone calls have been escalating for years now.  The floor traffic seems to diminish year over year. With these basic observations, you must ask yourself, how is my dealership changing with these statistics? In other words, are you more focused on sales training for walk-ins or for incoming phone calls and internet prospects? Are there sales processes for all aspects or just mainly one?

I continue to see the focus, if there is a focus, on walk in traffic. I understand. There is nothing better than a prospect in your showroom! But, why the lack of focus on processes for the other two lead sources? Combined, you have majorly more sales opportunities, in most dealerships!

The most complicated part of what I am about to say, will be recognizing your areas of opportunity and implementing changes...‘execution’ IS the most difficult aspect of change.

The first thing that I generally recommend is that the manager’s get more involved. It’s that simple. Yesterday’s managers are a thing of the past; it’s time to get some energetic, get out of their seats kinda people...ready to show a salesperson how it’s done- kinda attitude! We need managers that aren’t afraid of the phone, they love, capital ‘L’- LOVE the phone! They can hold a quick sales team meeting on the fly and huddle the group together and take a ‘live’ incoming sales call and follow the process that has been road-mapped out for the dealership! This sales manager is no old-school, “sales, how can I help you?” kinda guy or gal...he/she is modern with fresh ideas and approaches! At best, this sales manager can be a team leader AND coach!

Sounds too good to be true?

I believe. I believe you can hire, groom and develop this kind of talent! You want it? You want it bad enough? You will focus on it and you will work towards it and you will achieve it! Like anything, this requires focus and dedication.

Today’s sales managers have to be able to rock the phone! They have to be able to send emails to prospects and not just a template that says, “Hey, I’m the manager and I am here to help you buy a car.” This manager can personalize any email template and make it a value-based, obligation established, professional and engaging kinda email! This manager can show his/her team how to make it happen, day after day!

Today’s sales manager must be able to train and to hold a team accountable hour-by-hour....with a “do-whatever-it-takes” kinda attitude!!!  He/she’s picking up the phone and calling each salesperson when a lead has been sitting there for 3 minutes! You feel what I’m saying?!

The sales manager is as well versed on the CRM as anybody could be! In fact, this manager could be a trainer for the CRM company he/she knows it so well! That’s what I’m talking about! This manager is buzzing around the CRM all day looking for tasks - both completed and incomplete. Calling a salesperson out when tasks aren’t being completed!

See something missing in your formula for leading a great team to the highest level? It’s time to refocus on hiring a new wave of sales managers.  New skill sets not just deal makers but a jack of all trades.

The CRM is a critical component to your success and everyone needs to know how to use it. Yet, why are most dealerships falling short here?

Are your sales managers in the 21st Century?