*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*

By Tim Eckert

For all the negative disruption COVID-19 has created for automotive retailers, it’s also had one interesting side effect: speeding up the rate of technology adoption.

Out of necessity, dealers have had to fast track implementation of digital and remote solutions and services that make for a safer car-buying and servicing experience. It doesn’t hurt that those solutions also represent lasting improvements that boost customer satisfaction by emphasizing convenience and transparency.

Contactless payments are a perfect example. True, this technology was already available in many areas of our lives for years before the pandemic: airline tickets, parking meters, sports stadiums, subway systems, and even some grocery stores.

But automotive retailers, and even a significant chunk of consumers, have been slower to adopt.

Not anymore.

During the first half of 2020, 38 percent of all wearable devices (mainly prominent in watches and fitness trackers) had mobile-payment functionality via near-field communication (NFC) technology, with the number expected to approach 50 percent by the end of the year.

Meanwhile, one survey found that 26 percent of respondents expect to use less cash following the pandemic when compared to before, while 27 percent say they expect to use credit and debit cards more often.

And, among those who have adopted contactless payment as their new normal, 74 percent said they would continue to use the technology post-pandemic. In other words, once people become familiar with contactless payment, they like it.

Finally, we know from our own data that injecting convenience into the car-buying process makes a real difference.

Put it all together and a clear picture emerges: Consumers are gravitating to a more convenient and transparent digital future, and contactless payments in the dealership are a no-brainer. It’s a permanent process improvement you could implement right now to start making a difference in customer satisfaction and, ultimately, your bottom line.

The Benefits of Going Contactless

How, specifically, do contactless payments improve your business? There are four key benefits:

• It’s safe. We should assume, even in a post-COVID society, people are generally going to be more conscious of public health concerns. When it comes to one’s personal hygiene, contactless is inherently safer than any other payment option.

• It prioritizes the customer. Nothing communicates “We take you and your time seriously” to your customers like speeding up a step in the car-buying or servicing process. Contactless payments can take as little as 10 to 15 seconds, much faster than cash and even chip-enabled cards, which can take 30 to 45 seconds.

• It’s convenient. It’s worth stating again – the more convenient, flexible, and transparent your dealership processes are, the better. Contactless payments come in all forms – some of which the customer doesn’t even have to be present in your store to complete a payment, such as online or text. It’s all about catering to your customer’s lifestyle and giving them options on how to pay. Having a customer-centric reputation only does good things for your business.

• It’s secure. You might assume a digital payment is less secure than a payment made on a chip-enabled card, but contactless payments are encrypted wireless communications. They’re very safe, meaning you’re not losing any functionality or risking any security measures by switching to this faster and more convenient option.

Another feature of contactless payments is that it isn’t limited to a single method of delivery. Various forms of implementation include paying via your website, text message, mobile device, a tap-to-pay option, or even Bluetooth.

This flexibility once again emphasizes customer convenience above all. By presenting so many options, you meet them on their terms while still delivering great service.

With the end of the pandemic on the horizon, automotive retailers will soon be faced with a choice: to go back to the old way of doing things, or to take the lessons of COVID to heart and turn them into opportunities for permanent improvement.

With contactless payments, your dealership has one such improvement ready to go, just waiting to be implemented. Are you ready for the future?

About the Author

Tim is a Product Planning manager at Reynolds and Reynolds for the ERA-IGNITE platform, Business Office applications, Document Archiving solutions, Networking solutions, and ReyPAY®.

*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*

By Scott Worthington

A lot of dealers think “Employee theft won’t happen to me” or, “I trust my employees.” But the numbers around employee theft tell a different story.

There was an article in Automotive News about a dealer who lost nearly $2 million to embezzlement from his controller. How common is that?

According to the Association of Certified Fraud Examiners, 88% of businesses who experience theft or embezzlement don’t get all their money back. They never see that money again. As a matter of fact, 1 in 4 theft cases resulted in losses of $1 million or more. Furthermore, 51 percent of dealers have confirmed they experienced theft or know a dealer who has. What’s more disconcerting is the 49 percent who think there is no embezzlement at their dealership. But how can you know for sure?

When you leave your house in the morning, do you lock the door? Does that mean you don’t live in a safe neighborhood? No. It just means you’re being cautious and reducing the risk that someone will come into your house and rob you. We think of theft as a burglar in a black mask, breaking in from the outside, when more often than not a trusted employee you consider a friend, could be responsible for the biggest losses. With a quick internet search, you can find several stories of theft involving employees dealers trusted. In one, the dealer expressed how devastated he was about the situation, but what bothered him most was the mental and emotional drain knowing he trusted someone who took advantage of him.

You can’t be everywhere all the time. Hiring the “right” people isn’t enough either. There needs to be a better way to check for possible suspicious activity. You may be thinking, “That’s why I pay a CPA.” However, you might be surprised to learn CPAs don’t actively look for embezzlement. They ensure your dealership is using generally accepted accounting procedures. You could hire an auditor if you suspect something is going on but on average, dealership theft takes 18 months to find.  In total, it could be hundreds of thousands – maybe millions – before you find the theft.

To ensure your dealership is reducing your risk of theft, you need a dealership-wide monitoring solution that constantly analyzes system data for unethical business activities. This system should monitor your day-to-day operations and alert you when suspicious activity has been found.

How much will it take before you lock your dealership’s doors?

About the Author

With over 26 years of experience with Reynolds, Scott Worthington started as an ERA® trainer in 1991. His other roles included being an original member of the Reynolds Consulting Group, running the Service Readiness organization, Marketing Director, and ERA Solutions Executive. Currently Scott is Director of Product Planning responsible for the ERA-IGNITE and POWER platforms, Business Office applications, Data Archiving, Reporting and Analytic Solutions, and ReyPAY®.

*This article previously appeared in the Reynolds and Reynolds FUEL monthly newsletter*

By Scott Worthington

While it’s always important to implement processes that protect your dealership from fraud and theft, it’s just as critical to know the reasons why an employee might decide to steal from you. Let's dig deeper into employee theft and embezzlement to give you more insight to protect your dealership.

Key to understanding this is the Fraud Triangle, which breaks down the factors behind why employees steal thus:

Motivation: Does an employee have incentive to commit fraud? Is there pressure motivating them to embezzle? Often we hear stories about dealership employees who are struggling with something outside of work. It could be anything: pressure to pay off credit card debt, illness, a craving for a different lifestyle. In one case, a dealership employee stole millions of dollars so she could buy her family extravagant luxury items and take them on international trips. The reason? She wanted them to feel loved and she wanted to feel like a good mother.

Justification: Does the employee feel stealing is warranted? Maybe she was passed up for a promotion. Maybe she notices coworkers taking long vacations she can’t afford. Maybe you’ve been asking her to work a lot of overtime. To someone without the justification, it might seem far-fetched that these are reasons an employee would steal. But for the employee? These feel like valid reasons to commit fraud or embezzlement.

System Opportunity: Once an employee has the motivation and justification to steal, there is only one more step their brain must make before they start. Can they get away with it? Of the three sections in the Fraud Triangle, this is where you have the most control. Does your dealership have processes in place to deter theft? Processes not only make the dealership run more efficiently, they also show employees you’re keeping tabs on the dealership, even if you aren’t there. What about a system that monitors transactions across your dealership for suspicious activity? Even with processes in a place, an employee who has the motivation and justification might find a loophole. A dealership-wide monitoring system that informs employees its tracking transactions will take your security one step further.

Keep yourself informed of the ways employee theft happens in the dealership. The more informed you are, the better your chances are of preventing it.