It was fantastic getting back together as an industry at the NADA conference a couple weeks ago. It’s amazing how much interpersonal communication we lost during the pandemic, and we’re grateful to have it back. There were a couple of things we saw there about the future of auto retail that really resonated with Motive Retail’s experience and highlighted a key issue in the industry - how will OEMs and dealers work together?
Motive Retail Blog
With NADA 2022 behind us, we can all agree that the digitalization of automotive retail is not going away. We continue to hear system integration is top of mind and is still seen today as a key inhibitor in moving the ecosystem forward.
If you are the person at an automaker responsible for integrating dealer systems, no doubt you are busier than ever. All of those seamless digital experiences the business is strategically pursuing require more and more real time integration with dealer systems, DMS, CRM and others.
Data handling has become increasingly more important in the past 5 years. We've seen a growing number of legislative requirements regarding consumers' rights over their data and increasing concerns around privacy and cybersecurity that have reached a fever pitch, with no end in sight.
Automotive retail is transforming before our eyes, digitalizing the way everything is done in the dealership. It seems like everyone in the industry is working at a breakneck pace to shape the digital future in their interest. What isn’t clear is who will be in the driver’s seat, defining how the digital future will turn out.
Driven by COVID lockdowns, our industry is in the midst of an urgent rush toward long overdue digitalization. The transformation taking place is like nothing seen before in our lifetimes. No aspect of the way cars are sold or serviced will be left out. At the core of these digitalization efforts is the integration of the various systems that manage retail operations. The modern North American car dealership today uses between 10 and 20 different software systems to run its business. The digital dealership requires that they all work together seamlessly. The implication is clear: every dealer system provider - DMS, CRM, service management, inventory management, etc - must either provide easy integration with their systems or be left out of the digital future.
Customer Relationship Management (CRM) is software designed to manage all of your company’s relationships in an effort to improve overall profitability, and According to a report by Grand View Research, the global CRM market is expected to reach over $90 billion by 2028. With dealerships leveraging many types of solutions from CRM to Dealer Management System (DMS) and more, those growing systems bring with them complex integration needs and requirements.
Motive Retail got its start in 2008 conducting global certification programs for some of the largest OEMs in the automotive retail vertical. We have consulted with OEMs to specify, onboard, test, authorize, authenticate, and activate proprietary API solutions via a secure certification process over the last decade. We are proud of our legacy and capabilities as we continue to roll out mission-critical and strategically important integrations from the OEM to the dealer bodies across sixty countries.
Global experts estimate that nearly 85% of the world’s vehicles will be connected to the Internet by 2022. Given the magnitude of data outputs and sheer power of wireless connectivity, alongside new auto and data technology shifting due to COVID, the connected car is radically changing integrations and how they’re used in the automotive industry.
As every OEM knows, the automotive industry is operating in a dynamic and challenging environment. For future-forward firms, this environment is an opportunity to innovate. In particular, analytics, advanced integrations, and one-to-many API value chains are areas of real potential for firms who want to differentiate themselves. s every OEM knows, the automotive industry is operating in a dynamic and challenging environment. For future-forward firms, this environment is an opportunity to innovate. In particular, analytics, advanced integrations, and one-to-many API value chains are areas of real potential for firms who want to differentiate themselves.
The traditional method of OEM, DMS, and Third-Party Integrations implementation has been for the OEM IT organizations to work directly with the various DMS and Third-Parties to create, certify, and support custom integrations. These integration efforts can take a lot of time, management, and expense to roll out.
Sell or Pre-Sell More F&I Menu Products and Accessories Online than In-Store Resulting in More Profitable Car Deals!
As consumers shift to buying cars and scheduling dealer services from their couches, in-home offices, or wherever, car manufacturers (OEMs) and third-party software providers are capturing more of the buy/service process on their websites or applications. And, as dealers continue to execute on physical demonstrations of vehicles, sales closing/delivery, and vehicle service, OEMs, third parties and dealers must have seamless integration to ensure the customer experiences a smooth handoff from online to the physical store.
Customers increasingly want to shop for and purchase vehicles from wherever they are most comfortable, be it from their couch or in-store. While the shift to digital greatly accelerated over the past year, as the dust settles, it is evident many consumers will continue to visit their local dealership to compare models, get a demo drive, or confirm the value of their trade via an appraisal. Car buying is still a large purchase decision, and after shopping online, customers may just take in the experience of an in-store delivery. Or they may take delivery at home. Their choice.