Consumers are all about convenience. The Internet has opened access to instant information and new technology continuously enables consumers to accomplish goals faster, access information more easily and organize their lives -- all without the help of a single live person.

In fact, the most influential new technology may well be voice assistants such as Amazon Echo and Google Home, which were by far the hottest selling technology devices this past holiday season.

These powerhouse companies continue to add functionality and other technology businesses are working feverously to ensure their products can integrate and work with these devices. Consumers can now order groceries, laundry detergent, you name it – all without even looking at a computer screen. Not only that, but they can play music, games or, more importantly, access information instantly without having to touch a keyboard or turn on a computer.

Well guess what -- now, this technology is coming to a vehicle near you.

The 2018 Consumer Electronics Show (CES) saw plenty of announcements about automakers adopting and integrating these technologies. Not unlike the adoption of Apple and Android by OEMs via CarPlay and Android Auto, soon a consumer will be able to schedule a service appointment simply by asking Alexa. In fact, Toyota/Lexus announced that Amazon’s Alexa will be integrated into some of its 2018/19 models.

So why is this important?

Currently, with Amazon Alexa, when you notice you are low on laundry detergent you can simply say “Alexa, order more laundry detergent.” And Alexa will. But how does Alexa know what brand or size of detergent? You set it up in advance. Amazon certainly doesn’t randomly choose what to send you!

Imagine once this technology is integrated into vehicles and is adopted by consumers on a broad scale. What will happen when a customer asks Alexa to schedule a service appointment? How will Alexa know which dealership to make that appointment for? Well, as with the laundry detergent, where Amazon/Alexa was previously notified which brand to order, the customer will have set up a preferred dealership for Amazon/Alexa. Now, when they request a service appointment, that’s where Amazon will schedule it.

My bet is that this will soon be part of the delivery process for sales and service; where you set up the in vehicle integrated voice assistant to identify your dealership as the customer’s preference.

Of course, if you don’t treat the customer right they can easily change that. But, if you do, consumers will have a very easy way to continue to do business with you, make service appointments and receive communications – all without picking up their phone.

There can be no arguing that most dealerships operate in silos. Typically, four exist: New Car Sales, Used Car Sales, Service and Finance. These four departments usually work independently of each other, each with its own revenue and volume goals, yet all are undeniably intertwined. And, as their goals aren’t aligned, the resulting friction costs revenue.

Frequently, to make a deal, heated discussions occur about having the used car manager step up the value of the trade, so the new car sales department can hit OEM and profitability goals. This often kills the used sales ledger and commissions paid from that department. Then used car managers argue with service directors over reconditioning charges. Salespeople are upset because they believe their commission from front-end profit is shifted to the back-end in finance, reducing their paycheck. And while the finance department typically communicates with sales managers to structure deals properly, it also has an edge, with add-ons that can make or break a skinny deal.

How then do you change the mindset and break down the silos?

One dealership in Texas seems to have found part of the answer to this and unified its departments by introducing a new process in sales: salespeople discussing F&I products with customers prior to entering the finance office to finalize the transaction.

According to Automotive News, by simply training its sales staff on available F&I products, providing brief summaries on what the finance manager will be discussing with the customer, the dealership has increased finance revenue by an average of $200 per vehicle.

Why? Because the finance manager has a limited amount of time with each customer (typically 45 minutes to an hour). While the salesperson oftentimes invests much more time in establishing the customer relationship, earning and building trust.

The sales staff, mind you, isn’t selling products, just pre-educating customers, teeing them up for the finance manager thereby creating a smoother process in finance. How does the dealership motivate the salespeople to care about this -- much less complete this process? The salespeople get 5 percent of the back-end gross in commission.

I know of at least one salesperson who got a $100 bonus for every deal that went into finance with a $1,000 back-end. Do you think he was motivated to discuss finance products with his customers while waiting to go into finance -- in that awkward dead-time that inevitably happens after hands are shaken and a deal is made? This seems like a perfect solution to increase gross without much effort, while also changing dealership culture away from silos and into teamwork.

While you may have a couple of star running-backs, you’ll never win the game if the offensive linemen don’t make those blocks and protect them. By breaking down silos, not only will your dealership operate more efficiently, it will also enjoy increased revenue which, by default, benefits everyone’s wallets.

Much progress has been made in the journey towards paperless transactions. We can now sign tax returns online; sign electronic pads at many retailers when using credit cards; and, in some cases, receipts are even emailed to us. When FedEx or UPS make deliveries we no longer sign a paper log, but a mobile electronic pad.

So, why is the automotive industry not doing this?

Despite the many new technologies now available to car dealers that enable electronic signatures, customers are still forced through a trillion signatures and countless initials (front and back, mind you) to complete a transaction -- EVEN IF the dealership has adopted e-signature technologies.

Think how frustrating, confusing and, frankly, distressing that is for the consumer. Imagine going to a retailer to make a purchase, inserting your credit card and signing the electronic pad, only to have the cash register spit out a paper receipt which you then also must sign. My first reaction would be, “why do I need to sign this PAPER receipt when I just signed my name on your e-signature pad?” Well, that is exactly the experience dealers are providing to their customers. Whether this is happening in finance or service, it doesn’t matter.

I do understand that some state regulatory bodies, such as the Bureau of Automotive Repair (BAR) in California, require physical documents with original signatures. Whereas the federal statute allows for e-signatures, which is why you can buy a home without a single wet signature.  

Is this dated system required in our industry because dealers are not bothering to challenge it, or is it because the local enforcer (such as the BAR rep) claims it is necessary?  Regardless, I also know that this level of redundancy is so irritating that some dealers refuse to comply. For the sake of the customer’s experience, they allow customers to just sign electronically; willing to face any fines or lawsuits that may (but probably won’t) come back around. Not that I recommend going against any laws, I am just illustrating how frustrating this is for dealers – and their customers.

We’re at the point where the Federal government now accepts e-signatures, and many state governments have jumped on board. E-signatures are acceptable enough for credit card companies and financial institutions. You can even deposit a check via your cell phone! Yet, here we are in the automotive industry still wasting reams of paper on a single automotive transaction.

While we may all be nodding our heads in agreement with fully paperless transactions, we continue to demand the redundant paper signature -- even while adopting e-signatures! This just confuses customers and forces dealerships to continuously find storage facilities for the decades worth of documents that could easily fit on a single hard drive. Think of the storage costs, shredding costs, wasted time, effort and customer frustration. And let’s not forget the environmental impact of all that paper -- all while our ecologically-friendly governments, states, counties, cities, communities, neighbors and family members encourage us to use less paper and preserve the environment.

Does this sound like progress to you?

A trending technology is the use of bots in customer service. While bots can certainly help companies manage communications faster, sometimes they fail to provide the correct information and consumers just stop communicating with them, pick up the phone and overload call center phone lines.

Have you ever tried to ask Amazon’s Alexa for information, or to complete a task, just to have it misunderstand you? The same thing happens with bots. When seeking information, customers quickly become frustrated if the bot doesn’t give correct answers, or they end up arguing with a technology that is supposed to make the buying (or information getting) process easier.

However, bots have proven one thing – they are efficient. So efficient, in fact, that they are ruining Christmas for a lot of consumers. A recent article in The New York Times reports that efficient scalpers and resellers are using bots to snatch up in-demand toys faster than any human could ever click and submit, as well as “hot” theatre tickets for shows including Hamilton. In fact, in one case, a scalper purchased 1,000 tickets to an U2 concert in less than a minute.

While bots helped make this nefarious and unscrupulous activity possible, and caused many consumers to miss out on these tickets for Holiday gifts, the one thing this illustrate is just how efficient bots are at accomplishing a fixed task. Given the right programming, bots can make a business incredibly efficient. Think about how long it would take you to purchase 1,000 tickets to ANYTHING – especially when there are ticket limits. The mere activity of searching for tickets, adding them to a shopping cart and going through the checkout process can take anywhere from 5-15 minutes, depending on how fast you can type.

While this example did leave a string of upset people who missed out on buying something, it also proves that bots aren’t going away. In fact, bots are increasingly used by businesses to lessen workloads, increase customer service times and to allow consumers to gather information quickly, without having to call into customer service, tackle a phone tree and wait on hold.

Resellers and scalpers have already figured out how to take advantage of bots for their own profit and OEMS and dealerships are quickly figuring out how to do the same – but in a much more beneficial way for the customer. While chatbots, including Siri and Alexa, are designed to answer questions on a universal level, auto industry-specific chatbots are designed for specific interactions.

Ask Alexa, “What is the warranty on a 2012 Jeep Wrangler?” and she’ll respond with “Sorry. I can’t find the answer to the question I heard.” (Go ahead, try it.) However, a chatbot tailored for that specific purpose, fed knowledge that’s appropriate for questions about its industry, (e.g. various basic warranty issues) would be able to answer this with ease.

Here’s an example that could happen before long:

Customer to service advisor: How do I transfer the warranty on my CPO vehicle that I just sold?

Augmented-Intelligence Assistant to service advisor: To transfer your warranty go to this link and fill out the transfer agreement

Service advisor to customer: Dear Mr. Nath: To transfer your warranty go to this link and fill out the transfer agreement, and please give the new owner my direct dial # (310) 310-3100.

Normally, the service advisor would have to login to the manufacturer portal, search for this process, compose their own message, copy/paste the links, and then send it out to the customer, a process that could take as much as 10 minutes. With the chatbot-assisted model it takes a mere 5 seconds.

Consumers want information when they want it without having to jump through hoops. Consider this reality as you analyze just how effective (or ineffective) your communication is with your customers. Are you providing the right experience and reeling them in, or simply driving them away due to a lack of fast and efficient customer interaction?

You might just find that implementing procedures and/or new technology which offers faster and more efficient communication delights your customers while increasing your productivity and profits -- no more Grinch stealing your future profits!

For some people, it’s family. For others, it’s pets. Others will maintain it’s their career, and some will point to their favorite pastime. Regardless of what anyone chooses, there is a common denominator used to keep up with their passion -- one that has become the center of the Universe for many people -- and that is a smart phone. 

Have you ever watched your customers in the waiting area? I’ll bet most are head down, engrossed in something on their smartphone! Smartphones have become so integrated into our lives that they serve as our primary communication tool -- our calendar, web browser, email provider, and, in many cases, our entertainment center.   

Why? Because as they have become smarter and more powerful, we can now consolidate many things into one portable, pocket-sized piece of technology. And, all is wonderful.   

Until it isn’t.   

Today’s consumers have become used to the simplicity and efficiency technology enables. But, there are always those who make using our phones annoying!   

I once called a dealership and was forced to listen to a 90-second welcome message, (yes really, over one and half minutes) extolling all their virtues and reasons why I should buy or service my vehicle there. There was no way out. I was trapped. And didn’t like it! 

I’m amazed that anyone could sit and listen to that without being annoyed. It would be interesting to discover just how many potential customers simply hang up and move on to the next dealership… the one that answers the phone. I’m sure many consumers just keep pressing 0 to get to an operator and when they cannot, they hang up – that’s business walking out the door just because a message that is supposed to attract customers in fact drives them away. 

When I call Google for support, the phone is answered immediately -- there is no welcoming intro but rather they immediately ask where I need to go. Say, “Technical support” and your call is transferred. Boom! 

In this era of “NOW!” efficiency, Google walks the walk. Ever wonder why Google’s home page is pretty much blank, with just a search bar? Google decision makers know that people aren’t visiting Google’s home page to be sold something, they are there to initiate a search query… and Google doesn’t get in your way, or try to hold you hostage by distracting you. 

Start introducing friction through insane phone trees, or force them to listen to long-winded recordings before they can act, and you may find they choose not to communicate with you.   

Don’t try and force your message on customers trying to communicate with you. Keep it short, keep it simple! 

Are your employees communicating well at your dealership? At most of the dealerships I have visited they are not! 

I see far too many stores that still utilize walkie-talkies or paging systems and while this may seem like a good idea, in my mind it is a “spray and pray” tactic.  Often you will find advisors walking around with their headsets dangling, until someone who has just heard a page says - “Jack, Steve wants to know if the lady has okayed the parts.”  Such interactions completely defeat the purpose of the instant communications. They wonder why their CSI is poor; why staff are never on the same page. 

Internal dealership communication is hugely important. When you seamlessly connect all staff via a desktop or mobile app, CSI and gross immediately increases, along with dealership morale. 

Dealerships have so many communication methods – each employee having a preference – that most fail to communicate efficiently. Think about it. The sales manager pages salespeople to the sales desk. The service advisors run around looking for a specific technician to answer some questions. The business office emails the F&I manager from the office right next door. The general manager receives text messages from the sales desk. You get my point. 

While these certainly are communications, they are happening on such a random, disjointed level that confusion sets in and customers pay the price. How many times a day do you need answers NOW?  Instead I bet you’ve had to put a customer on hold to go search for Joe to answer a question, just to find that Joe is off property at lunch. Now what? This isn’t just a lack of communication – it’s a CSI killer.  

Want to improve CSI? It’s simple: Ensure your entire staff has a standardized process of efficient communication channels, allowing everyone to be on the same page and get questions answered quickly. In addition, be sure to have a record of those communications for future reference. 

Many things are going on at a dealership at any point in time, all of which affect a customer in some way. Sometimes that customer is at the dealership, sometimes they aren’t. Either way, there are plenty of instances where acquiring information quickly can make or break a customer experience. Geographical challenges due to dealership layout can also exacerbate this disconnect, acting as a further roadblock to effective communication. 

If your dealership lacks a centralized communication tool that seamlessly connects all staff via a desktop or mobile app, you will be left wondering why it takes so long to get answers, assist customers and accomplish simple tasks. It gets even more frustrating when that poorly serviced customer takes it out on your dealership with a negative CSI survey. 

Get rid of email clutter and those awful loud speaker pages in your dealership. Instead, implement a communication method that unites your staff and creates more efficient conversations.  

You’ll find the entire staff more productive because they are no longer forced to hunt down answers and can continue working. In addition, morale will greatly improve, and your customers will be happier - which will take your CSI scores to the next level. 

Let’s cut to the chase. Internal debits from warranty claims are costing dealerships $100,000+ a year. And, with larger high-volume dealerships, this amount can be dramatically higher. Whether your dealership “needs” the money or not, my guess is that the owner would rather have it than not! 

Why is this happening and what can you do to prevent it? 

Well, it is happening due to a systematic failure in process. It starts and ends with poor documentation which in turn translates to rejected warranty claims. 

The very structure of a dealership lends itself to this phenomenon. Technicians get paid for each job they complete – most of the time at flat rate. Their motivation is to complete a job and then move on to the next. The more jobs they complete, the more money they make. Inputting the relevant documentation (pictures, video, written notes) for the warranty repair into the DMS is downtime for them. They either speed through it, or don’t do it until much later when their memory isn’t as clear. 

Then you have the person processing your warranty claims in the dealership. It’s a hassle when a warranty repair is unclear, or missing information, and just causes more work for them. This person either chases the technician down to get the details, or files a warranty claim missing important information. This, of course, leads to rejected warranty claims and internal debits which, in the most simplistic explanation, means loss of revenue for the dealership that was already reported in their financials. This can happen immediately, or it can be months later during a post-claim audit by the manufacturer.  

Consider adopting a new process in your dealership… video diagnostics. The technician simply uses their smartphone to make a video of the vehicle during the inspection process walking through all the issues, followed by another video after the repairs are completed. By so doing, they don’t need a good memory and, as long as they keep speaking about the repair during the taping, the person processing the claims doesn’t need to chase them down for lack of information. In addition, post-claim audits are easier because there is video evidence – that can easily be kept in the cloud and instantly retrievable – to share with the auditor. 

Adopt video diagnostics as a process and you’ll find technicians are more productive since they can move to the next repair faster; claims get filed faster as information is readily available when needed; and warranty claim acceptance increases.

Ujj Nath shares his vision of the fate of multi-point inspections in this short video blog.

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