On today’s show, Jim Fitzpatrick speaks with Michael Roppo, director of dealer fixed-ops consulting and training for WithumSmith and Brown’s automotive division, to discuss the importance of DMS data management in your dealership.
A DMS system is vital for your dealership as Michael explains. A DMS can unlock hidden profits, look at customer loyalty trends, performance, and profitability just to name a few. Depending on how well your dealership uses a system like this, you have the potential to generate more revenue.
But what exactly is a DMS? According to Michael, it is comprised of three essential parts:
- Data Administration: Find a solid data
management system that is right for your dealership. - Data Organization: Track, analyze, and store customer data.
- Processing Efficiency: Automate document management, and open up more lines of communication to encourage collaboration.
If a dealership does not utilize a DMS system, Michael estimates that they could be losing out on 30 percent of performance productivity right off the bat. So, why is it that dealers don’t spend more time focusing on this area of their business? Michael believes that is due in part to dealers not spending enough time with their business intelligence. Dealers might not be aware of some of the data they have at their disposal, or know what it really means. They might employ excellent managers, however, the very people who create these numbers, sales staff, BDC, etc., often don’t understand them.
To improve your customer DMS data, Michael suggests that the system needs to be tailored to suit your dealership’s specific needs. Your staff need to know the critical response indicators (CPIs) that they are responsible for every single day, and also become familiar with their money screens. The business intelligence that your have needs to be communicated to your staff more often than not.
As yourself, how do you use your time? What kind of information can you extract from your DMS? Profit today, don’t wait until tomorrow.
