Advancements in technology are rapidly changing the ways businesses get work done. Today, it’s reported that over 90 percent of businesses utilize some form of business management system – and the growth isn’t slowing down anytime soon. The business management software market is now the largest in the world, expected to reach more than $80 billion in revenue by 2025. This growth is proving to be especially promising for the new car dealership industry and the addition of a vehicle inventory management system is helping lead the way.
The ways in which consumers interact with new car dealers are evolving with shifts in technology, and dealers need to be able to adapt to these shifts and rising demands. The need for smart, connected technology is becoming a necessity for dealers looking to operate to their full potential. In this article, we’re breaking down how a vehicle inventory management system works and the reasons why your dealership needs to invest in this technology in 2021.
What is a Vehicle Inventory Management System?
Before vehicle inventory management systems were introduced, dealerships often toggled between several different software, or worse, operated on manual processes. A vehicle inventory management system is a GPS-based software that works to support various areas of your business, including inventory and lot management, customer experience, theft protection, and more. With a vehicle inventory management system, each of these key areas is supported in a centralized system, with data and mission-critical information available to be accessed in real-time.
Additionally, this technology serves an even greater purpose for owners and managers operating multiple dealerships as data can be standardized across locations. For example, if an auto dealer owns two, three, or even 10 locations, all of their data can be available in one unified system. Ultimately, vehicle inventory management systems give owners the ability to spend less time on data, inventory, and customer management and more time on closing sales.
Reasons to Invest in a Vehicle Inventory Management System
- Mitigate Risks with Added Security. According to a Traveller’s Insurance report, only about 40 percent of the cars stolen from dealerships are ever found and returned. While vehicle technology is getting smarter, so are the ways in which thieves are capitalizing on unsecured inventory. With a vehicle inventory management system, dealers gain real-time visibility into their lots and inventory through advanced GPS tracking solutions. They know exactly which vehicles they have in stock, where they’re located on the lot, and whether they are ready for a test drive. Also, dealers can further boost security and reduce costly thefts by creating geofences around their lots and setting up alerts when a vehicle has left a designated perimeter.
- Leverage Customer Experience. Whether you want to admit it or not – customer experience is everything. Leaving a lasting impression on your customers will increase their trust and loyalty in your dealership for their future service and purchase needs. The happier your customers, the better the buyer experience, and the more sales your dealership can expect. With a vehicle inventory management system, managers and owners can improve a buyer’s test drive experiences by easily finding their future vehicle. There’s no more wasted time tracking down vehicles or preparing them for test drives. With real-time insights, you can ensure that your vehicles are always ready to go with battery and fuel level reports sent directly to your service staff.
- Harness Customer Loyalty and Retention. More often than not, when a customer purchases their dream vehicle and leaves the lot, that’s the last time you ever see them. Most dealerships lose further maintenance and services to third-party vendors. With a vehicle inventory management system, dealers can maintain a direct connection to their customer’s vehicle for life. Through vehicle inventory management systems, dealers can send automated and customized service alerts to drivers notifying them of upcoming service and maintenance checks.
- Maximize Profit. While some connected car technology is embedded straight into the vehicle, other vehicle inventory management systems, like Elo GPS, can be installed or removed from the customer’s vehicle. Meaning that the entire system can be sold to the customer for added value creation. Elo GPS’ technology expands beyond car dealerships and has functionalities built exclusively for drivers. Detachable systems can function as an added profit center for your dealership. Reap the benefits of the system for your dealership and then allow your customers to experience the same once they leave the lot.
While a vehicle inventory management system might seem like a hefty upfront cost, the value it creates for your dealership, and your customers over time is a worthwhile investment. You want your dealership to operate to the best of its ability and advanced technology is out there to help you reach your goals. For more information on how your dealership can benefit from a vehicle inventory management system, or to demo it for yourself, contact us today to get started.