There is a simple solution to this. When a dealer makes a selection regarding their technical partner, select a partner who understands the dealership business model, personnel, manufacturer relationship, and ALL of your profit centers. There are things he/she should look for in that partner. I will not list them all here. However, to address this specific topic, I will define a few of the items.
Your technology partner should provide a business plan that integrates ALL profit centers with the advantages of the internet. This should also be accompanied by a document describing the scope of effort required by BOTH parties to create PROFITABLE internet marketing. A clear definition of any and all interaction with the DMS should be spelled out as well.
Also included in this document should be a timetable for implementation and training for the different profit centers to come "online". Not many dealerships (or any complex and dynamic business) can handle a complete change of processes in several departments at once.
Your technology partner should also be able to define what services will be available in the future from their company and how they will integrate with the DMS companies' activities in the future (their days are numbered). There should also be a plan to wean a dealer's dependency upon any company that is remarketing the dealerships prospect base (lead vendors, etc.).
This area is more subjective, but will tell you much about the company you are previewing. If your gut tells you that this section is more fiction than prediction, you know what to do with their proposal.
Your technology partner (DMS companies included) should always clearly define a 1, 2, and 3 years or more plans for your relationship. In this time of rapidly evolving technologies, if they cannot accomplish this easy task adequately, they are one of those 3rd party vendors that will fall.
In response to the broad statement about all 3rd party technology vendors falling by the wayside (previous posting), if it were not for the few of us that are and will continue to be successful, most dealer groups would continue to build a huge prospect base for the manufacturers. They would certainly continue to have their profit centers attacked by companies that are providing them potential buyers, and the manufacturers.
The NADA reports that there are currently 22,000 dealerships in America. They predict that half will be gone in 10 years. Americans are on an average buying cycle of 2-3 years. The way you build your prospect base, manage retention programs, protect and market your profit centers in the next 2-3 years will define if you will survive merger mania.
There is nothing wrong with being a dealer who has decided not to prepare or embrace the current consumer shift. You do not have to integrate your dealership with the technology of the internet. Just make sure sell your stores while the economy is hot and franchises are selling at record numbers. Take the money and enjoy!
------------------
Bruce Bingham
bbingham@thirdcoastmedia.comwww.thirdcoastmedia.com