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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.
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) software is designed to help companies manage their many customer relationships in an effort to improve overall profitability. According to a report by Grand View Research, the global CRM market is expected to reach over $90 billion by 2028.
Dealerships leverage many types of business management tools including CRMs and Dealer Management Systems (DMS). The challenge is getting those robust systems to talk to each other in real-time.