2. Purpose
Insights
without actions are meaningless.
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technology and is ready to
discuss your options today.
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Representative to learn how you
can turn insights into profits.
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Table of Contents
Customer Experience 4
Inventory Management 7
Digital Marketing 13
Collaboration 20
Finance & Insurance (F&I) 27
Fixed Operations 32
Mobility 38
Click the green dealership
icons to learn which CDK
solutions can help drive your
dealership Faster Forward™
4. Physical vs. Virtual
An online presence is essential for providing the quick and easy
information that your customers desire. However, it won’t completely
replace your brick-and-motor store.
Customers want to test drive vehicles and view options
Customers want to gather information on vehicles from a person
Customers need to service their vehicles
82% of buyers look to a Salesperson for information during the
research process
Shoppers count on dealers to make sense of everything they’ve
read and heard during their pre-buying research process
Customer Experience
1
2
3
4
5
4
Source: McKinsey & Co, Innovating Automotive Retail: Journey Towards a Customer-centric,
Multiformat Sales and Service Network, 2013
Source: Google, Digital Drives Auto Shopping, November 2013
Source: CapGemini, Cars Online White Paper 2014
The faster you react to market changes
and customer concerns, the easier it will
be to outpace your competition.
5. Car-buying is Emotional
Source: Service 360 Partners, 2013
Customer Experience
Empowering Salespeople to easily complete
their assigned tasks via mobile apps allows
them to better service your customers.
5
Customers have emotional expectations when car shopping. They want
to avoid frustration and stress, while feeling excited and special.
To help your customer …
Avoid Avoid
feeling frustrated Feel excited Feel special feeling stressed
Your staff should be:
A good listener Helpful Helpful Honest
Responsive A good listener Proud of their A good listener
customer service
Helpful Responsive Attentive Responsive
Attentive Attentive A good listener Patient
Patient Proud of their Honest Helpful
customer service
To give your customers the best possible experience, you can meet a majority of
their expectations by listening well, and being helpful, responsive and attentive.
7. Turn Time is the Key to Profit
Do you realize that by turning your inventory 10 days faster, you
can see up to a $200,000 increase in profit?
Look what 10 days can do for your profits:
average
turn time
means your
inventory flips
4.05
times/year
90day
average
turn time
means your
inventory flips
4.65
times/year
80day
average
turn time
means your
inventory flips
5.21
times/year
70day
your profit
could be
$1.8million
your profit
could be
$2.0million
your profit
could be
$2.3million
with profit of $1,500/unit on 300 cars
Source: CDK Business Intelligence, 2014
Inventory Managment
Make the right stocking decisions for your dealership
based off historical success and current market data.
7
8. 17,500,000
17,000,000
16,500,000
16,000,000
15,500,000
15,000,000
14,500,000
14,000,000
13,500,000
13,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
How Important is Your Inventory?
According to 200 senior executives from the world’s leading
automotive companies, 75% believe that managing price and supply
is the key factor in maximizing profitability, up from 40% a year ago.1
With an increase in sales forecasted over the next few years, now
is your chance to maximize profit before sales level off.
New Car/New Light Trucks Sales Forecast2
Inventory Managment
14,501,248
15,605,641
16,444,616
16,725,336
17,045,699
17,289,541
17,142,036
17,012,794
16,927,181
6,873,694
16,799,595
16,782,817
16,780,020
16,749,985
16,574,865
NewCar/NewLightTrucksSales
1
Source: KPMG, Global Automotive Executive Survey, 2014
2
Source: IHS, Industry Analysis, 2014
Dealerships that can assess market data efficiently
will be the ones that will capitalize on additional sales.
8
9. One Small Error Could Cost You
The average OEM incentive is $2,293 and typical dealerships
miss at least 1 per month. That means you could be missing
out on around $27,516 per year, much more than the cost of a
top-of-the-line inventory tool.
Your inventory solution should deliver even more value through
features like accurate market pricing and competitive intelligence.
$27,516+
Money you’re
missing out on from
OEM incentives
per year
Source: NADA Data, 2014
Inventory Managment
Calculate and syndicate incentives
and rebates automatically, so you
can be confident in your pricing.
9
10. Inventory Intelligence
Source: Agile Innovation Advisors, 2013
Source: NADA Data 2013
Inventory Managment
New Car Managers need to know what customers want,
stock the right vehicles, gain insight into competitors’
pricing, and be able to react quickly to market changes.
10
In 2013, New Car profit dropped nearly 50% to $69
per new vehicle retailed.
In 2013, sales of new cars and light trucks went up
7.5% from the previous year.
50%
Profit of
New Car
retail sales
dropped
New car
and light
truck sales
increased
7.5%
11. The Used Car Drought is Over
Dealerships are selling 5M more new vehicles per year than they did
in 2009. This excess of new cars will create significant opportunities
to source used cars. You need to be pickier about your inventory.
New Car Sales
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
2009 2010 2011 2012 2013
15,524,800
14,441,800
12,734,200
11,554,500
10,401,700
Source: NADA Data, 2014
Inventory Managment
The Used Car drought is over … having the ability to
selectively make the right stocking decisions is critical.
11
13. Audience Targeting
and Audience Management:
The Key to Online Marketing
and Sales Success
75%
of shopping
research is
done online1
60vs.
6of the
TOP
10 Targeting an audience
and managing their
experience will result
in more sales, and
currently, 60% of
online-influenced
sales are from a
targeted audience3
40 %
1
Source: Google/Millward Brown Digital, Influential Experiences, 2014
2
Source: Google/Millward Brown Digital, Vehicle Shopper Path to Purchase study, 2013
3
Source: CDK Business Intelligence, 2014
Digital Marketing
Ensure that your advertising is working for
you by presenting your potential audience
with the vehicles that are of interest to them.
13
research
sources for
auto shoppers
are digital2
14. More is Better
Optimizing multi-channel campaigns in real time – based on shopper
engagement and downstream metrics – can lead to more sales.
To produce a sale, it takes 62 visitors from paid search or 19 visitors
from ads on premium properties, but it only takes 13 visitors who have
touched multiple channels.
62 19 13
Source: Automotive Moneyball – CDK Digital Marketing – July, 2014
Digital Marketing
Consistent branding and messaging is the key to
getting your audience to recognize and remember
you as the dealership to do business with.
14
paid search
visitors
premium ad
visitors
multi-channel
visitors
To make a sale, it takes
15. Customers Love to Search
and Research
Shoppers spend 70% of their online
research time on dealer sites, OEM
sites and research portals1
70%
Shoppers who visit both a dealer website and
Edmunds.com are 4 times more likely to convert
to a purchase than the average website visitor24x
1
Source: Polk/AutoTrader, Automotive Buyer Influence Study, 2013
2
Source: CDK/Edmunds cross-tier research study, 2014
Digital Marketing
Provide potential customers with the information
they need to help them make informed decisions.
15
16. Now You’re Getting Personal
Dealers can leverage audience intent to deliver a personalized,
relevant experience.
Platforms such as Amazon, Spotify, Netflix, Yelp and Facebook
use intelligent, predictive algorithms to match people with things
they want.
Source: AdWeek, I Have Seen the Future of Advertising, 2014
Digital Marketing
Guide your audience to your dealership by segmenting
the right information to the right customers.
16
17. Don’t I Know You?
Get to know your customers better.
They come in 3 main categories:
Source: Agile Innovation Advisors, 2013
Digital Marketing
Knowing your customers will help you
provide the right information to them
at the right time in the buying process.
17
Budget
Conscious Group
(18% of your customers)
• Worst credit scores
of the 3 groups
• Most do not consider
themselves to be very
knowledgeable about
auto financing
• They have trust issues
with auto financing
information provided by
dealerships
• They take a long
time to complete the
transaction and are not
happy about it
Hassle Free
Experiencers
(47% of your customers)
• Good/excellent
credit scores
• They do their research
and know about auto
financing
• They trust dealership
auto financing
information
• They complete the
transaction very fast and
are very happy with it
Price Conscious
Shoppers
(35% of your customers)
• Good/excellent
credit scores
• They do not consider
themselves to be
very knowledgeable
about auto financing
• They are a little
less likely to trust
dealership auto
financing information
than Hassle Free
Experiencers
• They complete the
transaction quickly and
are relatively happy with it
18. Build Trust Early and Often
Over 70% of vehicle shoppers are
comfortable doing their own research
about financing a vehicle, but 75%
are willing to seek financing advice
from your dealership. Gain their
trust and customers are more likely
to return to your dealership.
20% of consumers finance their
vehicle purchases outside the
dealership. A possible reason for
this is 85% of consumers do not
use your dealership website to
learn about auto financing.
75%
of vehicle shoppers are
willing to seek financing
advice from your dealership
85%
of consumers do not
use your website to
learn about financing
Source: Agile Innovation Advisors, 2013
Digital Marketing
Throughout your customers’ research phase,
provide information on the financing options
you offer and their benefits.
18
20. What’s Your Name? What’s Your Name?
What’s Your Name?
Dealerships ask
customers to provide
their information an
average of 3.2 times
3.2x
Source: Google, Consumer Survey, 2014
Collaboration
Integration of your phone system, CRM, desking
and menu solutions is critical to minimizing having
to ask customers for their information over and over.
20
21. Email is Out …
Phone Leads are Back In
Phone leads are up 46% vs. Internet leads over the
past 2 years. Phone calls have recently skyrocketed,
while form leads have been relatively flat.
46%
Source: Automotive News, 2014
Collaboration
Investment in a robust, multi-functional phone system
is more critical than ever to your dealership’s success.
21
Phone Leads
22. You Don’t Know What You’re Missing
Customers are doing most of their research online. They even
click-to-call from their mobile phones to set appointments. These
“sure things” are the most important calls to take … 16% of calls
are missed.
of calls are missed
16%
Source: Marchex, Mobile Consumers are Calling, 2014
of dealerships don’t
have insights into the
amount of missed calls
45%
A call reporting system that alerts you
when calls are not being answered can
help improve your CSI and increase sales.
22
Collaboration
23. Setting the Appointment is Critical …
One and Done
In a survey of more than 1,000 dealers, the number of customer visits
to the dealership for a vehicle purchase dropped from 5 visits to just 1.
1
The number
of customer
visits to the
dealership
is down to just
Source: Service 360 Report, 2013
Top 3 critical connections for phone calls: 1) Routing the
customer to the right person (who is available), 2) The ability
to easily view their customer profile, and 3) Pulling customer
information directly from the call into the related task.
23
Collaboration
24. The Answer May be in Your Pocket
Texting is quickly becoming the new way to contact customers.
of Sales Reps text
customers at least
once per day
60%
Source: CDK Business Intelligence, 2013
Collaboration
Give your employees texting capabilities
with your dealership phone number instead
of their personal cell phone numbers.
24
26. Holding Pattern
According to FI employees, the main causes (almost 60%) of
“held offerings” are paperwork errors, such as missing forms,
misalignments, improper calculations or missing signatures.
Source: CDK Business Intelligence, 2014
Finance Insurance
Align your desking and menu solutions electronically
in order to reduce errors and provide a faster,
positive experience for your customers.
26
of “held offerings”
are paperwork errors60%
almost
27. Take off the Blindfold and Hit the Mark
8 out of 9 FI Managers say they want a better way to gather accurate,
complete information for assessing a customer’s auto financing needs.
Bad information leads to miscommunication about interest rates, terms
and payoff amounts. Having accurate information from the start will
streamline the transaction.
Source: Service 360 Partners, 2013
Having the ability to recalculate pricing in seconds based
on your customers’ desires is essential in speeding up
the process, helping them make faster decisions.
27
Finance Insurance
8out of 9 FI Managers
want a better way to gather accurate
and complete information
28. of dealers lose gross
profit due to a re-sign
67%
Get it Right the First Time
67% of dealers lose gross profit due to a re-sign, which could
cause lower CSI and increase the risk of losing customers for
repeat Parts and Service business.
Source: Electronic Signature Records Association, 2014
Finance Insurance
Ensure your contracting process has documents
linked together so nothing is forgotten.
28
29. Cobbled Credit Workflows
Cost Big Money
The average dealership spends $182,754 per year to comply
with federal mandates governing employment, business
operations, vehicle financing, sales, marketing, and vehicle
repair and maintenance.
Source: Wards Auto, 2014
Finance Insurance
An investment this big should give your employees
a unified, straightforward process that saves
time and helps reduce errors.
29
The amount the average
dealership spends per year to
comply with federal mandates
$182,754
31. The Chosen Ones
Your dealership can only determine the equity position on 47% of Service
customers, because those customers purchased their vehicle from your
dealership. The other 53% did not buy their vehicle from your dealership,
which means you lack equity insight on more than half your customers.
Source: Pearl Technologies, 2014
Fixed Operations
An ideal equity solution reviews nearly 100%
of your customers, rather than only the
ones who purchased from your dealership.
31
Your dealership lacks
equity insight on more
than half of your
service customers
53%
32. The Importance of Knowing
What is Important
In a survey of automotive executives, 80% said that a ‘Quality Service
Experience’ was an ‘extremely important’ or ‘very important’ factor in
consumers’ purchasing decisions.
Source: KPMG, Global Automotive Executive Survey, 2014
Fixed Operations
Your dealership as a whole is being evaluated; poor
service in the Sales department or Service department
will greatly affect your profits for the entire dealership.
32
of automotive executives
feel that quality service
is a top priority
80%
33. The More They Know …
Customers want truth and honesty from vehicle service centers. 81% of
drivers agree that quality service is more important than price. Providing
them more information about repairs can help.
Source: Service 360 Partners, 2013
Source: Google+ Sterling Driver Insights Study, 2013
Fixed Operations
Providing the information via tablets allows your
employees to become more helpful and effective.
33
1 2 3 4 5
of drivers agree that quality service
is more important than price
81%
34. of drivers continue
online research
even after shop visits
62%
Savvy Drivers Fact-check Throughout
Consumers do their research before bringing their vehicles in for service.
Even after shop visits, 62% of drivers continue online research for price
comparison and confirmation of Technician advice.
Source: Google+ Sterling Driver Insights Study, 2013
Fixed Operations
Having personalized information readily available for your
customers gives them confidence that you will provide a
professional, hassle-free experience now and in the future.
34
35. Every Opportunity Could
Turn into a Lifetime Customer
Consumers are keeping their cars longer – due to better quality vehicles and
fallout from the recent recession – and dealerships are not being utilized for
servicing these vehicles. 50% of dealership Service vehicles are less than 4 years
old, but the average age of passenger vehicles on the road is over 11 years old.
Source: Service e360 Partners, 2013
Fixed Operations
The experience is critical. Ensure you
are utilizing technology to maximize the
check in and check out process.
35
of dealership Service vehicles
are less than 4 years old
50%
Average age of passenger
vehicles on the road
11years
37. The Agility of Mobility Brings Stability
Tablet and smartphone traffic have nearly exceeded desktop
traffic to the CDK network.3
1
Source: Nielsen, 2014
2
Source: Google: Mobile Path to Purchase, 2013
3
Source: CDK Business Intelligence, 2014
Mobility
The right mobile digital advertising strategy
can help maximize your online efforts.
37
of mobile auto searches
lead to a purchase
50%
Your audience is mobile. Your digital strategy should be too.
Today, an average American owns 4 digital devices and spends
60 hours per week consuming content on them.1
In addition, more than 50% of mobile auto searches lead to a purchase.2
The average American:
owns
digital
4 devices
spends
hours
per week
using them
60
38. Further Down the Mobile Rabbit Hole
91% of consumers say access to content any way they want is important.1
Consumers are 3 times more likely to be influenced by good reviews on
tablets and mobile.2
When looking at new vehicle sales of a popular brand in a single month …
dealerships with an average star rating of 4 or more stars sold 47% more
vehicles than dealers with an average star rating of 3.5 or less.3
1
Source: Salesforce Mobile Behavior Report, 2014
2
Source: JumpstartAuto.com, 2013
3
Source: CDK Business Intelligence, 2014
Mobility
Your reputation needs to be monitored and managed
to ensure customers see you in the best light.
38
Dealerships rated
with 4+ stars sell
more vehicles
47%
39. Simplify
Use large images, large fonts and few words to convey one simple
message that supports your digital marketing strategy. Remember,
less is more.
This Works This Doesn’t Work
• Simple, clear, concise message • Too many words
• Large and clear fonts • Too many font sizes
• Fonts contrast with background • Fonts are too small
• Easy-to-read font types • Hard to read on background
Source: CDK Business Intelligence, 2014
Mobility
Yes, it’s that easy … keep it simple.
39
40. Mobile Payments are Here to Stay
Source: Statista, 2014
Mobility
Customers expect it … provide them
easy secure payment options.
40
800
600
400
200
0
2010 2011 2012 2013 2014 2015 2016 2017
52.9
Annualtransactionvolume
101.1 163.1 235.4 325.2 431.1 563.4 721.4
The value of mobile payment transactions globally will top $325 billion
for 2014, almost a 100% increase since 2012.
Global mobile payment transaction volume from 2010 to 2017
(in billion U.S. dollars)
