Automotive News - May 19, 2008 - (Page 42)

42 • MAY 19, 2008 Smart phones help dealerships retain customers Ralph Kisiel rkisiel@crain.com Clever phones Benefits of ADP Dealer Services’ integrated phone system, which links to its dealer management system Instant display of customer information when the phone rings Automated service appointment reminders and special-order-parts notification Click-to-call dialing; user selects a phone number on the DMS screen Logs and recontacts missed calls; analyzes call volume for staffing purposes Source: ADP Dealer Services WEST CHICAGO, Ill. — When Emir Abinion opened his Volkswagen store in suburban Chicago in 2006, he advised employees that customers should “never forget us.” To make that mission easier, Abinion gave his employees a phone system from ADP Dealer Services that is integrated with his ADP dealership management system. That means the phone system, called ADP Network Phone Enterprise, taps customer data in the ADP dealership management system and customer relationship management database. Say a customer calls Fox Valley Volkswagen. The staffer who answers sees the customer’s name and telephone number on a desktop computer screen. The screen also lists any vehicles associated with that caller and any open business transactions, such as service repair orders and appointments. ADP has installed the phone system at about 1,400 dealerships, says Ted Valenti, ADP vice president of imaging solutions sales. Lithia Motors Inc., the eighth-largest dealership group in the United States, uses this ADP system in its 110 dealerships. Reynolds prototype ADP’s chief rival, Reynolds and Reynolds Co., is working on a prototype for its network phone system to offer its dealership customers. “It’s in the final stages of development,” says Reynolds spokesman Tom Schwartz. The product integrates with the Reynolds ERA dealership management system and customer relationship management software. In February, ADP launched its newest version of the phone system, called ADP Network Phone ASP, short for Application Service Provider. That means that ADP manages the system from a secure, off-site location in Chicago. ADP has installed the ASP version at about 300 dealership sites since introducing it during the National Automobile Dealers Association convention in San Francisco in February. Abinion is happy with the previous-generation system. “We spend so much money in marketing and advertising getting people to come in here,” Abinion says. “Then the phones help us to keep them coming back.” c Fox Valley’s Emir Abinion says the store’s ADP phone system keeps customers coming back. works, Mitchell says. Abinion considered other phone systems, including some that cost less. But only the ADP system had the deep integration with his dealership management system that he sought. A key advantage: ADP’s system allows him to send automated calls to remind a customer of a service appointment or to inform a customer when a part arrives at the dealership. “We scan the bar code on the part when it arrives, and the call is automatically made to the customer,” Abinion says. “The part isn’t even on the shelf and the system is calling the customer.” Service boost Fox Valley Volkswagen, a new point for Volkswagen in this community 30 miles west of Chicago, uses the added info to bolster its customer service. “The first impact we wanted to make as a new point was in customer service,” Abinion told Automotive News here last week. “It must be a wonderful experience each time we touch the customer. The phone is part of this experience.” The technology that enables this convergence of voice and data is called “Voice-over Internet Protocol.” It allows a dealership to run voice, data and video traffic across a single network in the dealership, says John Mitchell, ADP director of network solutions sales. Fox Valley Volkswagen runs only one cable carrying voice, data and video to each desk in the dealership. Dealers with multiple stores typically reduce their calling expenses with the system because calls from one store to another use their internal network rather than public phone net- CHRYSLER Dealers urged to back gas incentive continued from Page 3 the camera, really none of us have done the job,” Press told dealers. Although results have been mixed so far, dealers seem to have heeded Press’ plea. “We’re way outpacing every other month — a 30 percent increase at least,” Phillips said. both manager groups delivered the same message: High fuel prices were customers’ No. 1 concern. A task force of 35 to 40 people convened. It wasn’t until late April that the team finally conquered the “hundreds of little speed bumps” so they could submit the complex program for approval, Keegan said. Those speed bumps included finding a hedge against gasoline price increases (see related story at right), ensuring that crooks couldn’t hack into the gasoline cards the company is issuing; and balancing the program against other sales incentives. When Chrysler introduced the gasoline guarantee to dealers in a May 5 webcast, co-President Jim Press pleaded with dealers to throw all their weight behind it. Press told dealers that Chrysler fell 7,000 units short of its sales target in April. Chrysler LLC’s U.S. sales that month fell 23.5 percent from April 2007, to 147,751 units. “Take a look at our results in April — on both sides of Customer confusion Some dealers say customers were initially confused by the offer. “The biggest confusion for customers has been how exactly we’re going to guarantee the price of gas,” said Mike Wolf, general sales manager of Courtesy Chrysler-Jeep in Moline, Ill. “When we explain it to them, they’re very accepting.” Earl Hesterberg, chairman of Group 1 Automotive Inc., a Houston dealership group that owns nine Chrysler stores, said: “We tied in and aggressively promoted at our dealerships almost immediately. In our Dallas store, traffic was up 20 percent. But in some, like Tulsa (Okla.) and San Diego, we got nothing.” During the May 5 webcast to dealers, Steven Landry, Chrysler’s executive vice president for North American sales, said the company expects 15 to 20 percent of customers to choose the gasoline guarantee. One reason responses might differ by region is that some of Chrysler’s 72 dealer advertising associations immediately started running ads, but others waited until the national ad launch today, May 19. Deborah Meyer, Chrysler’s chief marketing officer, said: “Most of our weight overall comes in the week of the 19th in terms of national ad spending.” Chrysler hedged gas price bet DETROIT — When Chrysler LLC decided to offer customers a guarantee of $2.99 a gallon for gasoline over three years, the company had to make sure it wasn’t going to lose a bundle of money if gasoline prices soared. So Chrysler’s treasury and purchasing departments got involved. “We’ve hedged ourselves to protect against fuel price increases,” says Michael Keegan, Chrysler vice president of sales operations and volume planning and one of the chief architects of the gasoline guarantee. “It’s similar to the way we hedge other commodities. “The company hedges precious metals, such as rhodium (used in catalytic converters). You may pay a premium for that hedge, but you’re putting a cap on your exposure to your increase.” Chrysler executives would not say what premium they paid. Under an offer that expires June 2, Chrysler is guaranteeing its customers a gasoline price of $2.99 a gallon over three years. The guarantee is limited to 12,000 miles a year and covers most vehicles. Consumers who opt for the gasoline deal receive a special credit card about six weeks after taking delivery of their new vehicle. The card can be used at the majority of filling stations nationwide, but Chrysler did not identify what stations would be excluded. No matter what the price is on the pump, the consumer is charged only $2.99 per gallon. — Bradford Wernle Boost for diesels? Carl Galeana, owner of Van Dyke Dodge in Sterling Heights, Mich., said Detroit’s dealer advertising association began running local ads immediately. The first weekend, his store sold at least three vehicles to customers who took the gasoline incentives. Jim Arrigo, owner of Arrigo DodgeChrysler-Jeep in Palm Beach, Fla., and Chrysler-Jeep dealer council chairman, said his local ad association will jump in when the national campaign starts. Arrigo predicted that many customers in his economically troubled market might be lured into the store by the gasoline guarantee. But they’re likely to end up taking cash “because they’re upside-down in their trade-ins,” he said. Ken Zangara, owner of Zangara Dodge in Albuquerque, N.M., said Chrysler was shrewd to include diesel fuel in the guarantee because diesel is more expensive than gasoline. “I think it’s going to work, particularly to the diesel buyer,” Zangara said. Dealers credited Chrysler with try- ing something new. Group 1’s Hesterberg said: “It doesn’t bother me when things fail. What bothers me is when people don’t try.” c Craig Trudell contributed to this report http://www.cardonegroup.com http://www.cardonegroup.com

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Automotive News - May 19, 2008 Ford eyes smaller F-150 cousin Sonic: Mercedes tries to 'extort' store upgrades Chrysler seeks 25% slash in parts prices Dealership managers pushed Chrysler's latest incentive Crain names 4 new VPs Automotive News staffers win Wheel Awards GM will keep cutting sales to fleets GM studies the future of full-sized trucks American Axle plans to expand in Asia At Lexus, the sales laggards are cars VW positions Tiguan as 'GTI' of small SUVs Tata enters race for 100-mpg car Harley Earl was the daddy of auto design Focus will follow Fiesta as a global vehicle Lexus shows how it sweats details Industry slows tide of state CO2 rules Chevy tweaks Cobalt to add fuel economy Be careful; don't do anything dumb Looking ahead to different industry They thought they knew everything Cerberus doesn't belong in autos Dealers as scapegoats Smart, steady growth works best for suppliers Farley's smart to value Ford's heritage Absurd logic in the U.S., cowardice in Germany BMW, Daimler keep a wary eye on U.S. economy James Franey Dealers' approach can lessen pain of staff cuts GM plans to distinguish Opel with image makeover Make or buy? Software can estimate costs for company Honda, Toyota see robots in their futures Bosch aims to lead in hybrids technology King of hearts Clarke aims to get GM back on track in N.A. Fields navigates Ford through 'white water' LaSorda steers Chrysler's global ventures Toyota's Lentz: A crash course in hard times Truck sales fall 13% in April Modine sells Thermacore unit Alcoa to close Mexico plant Toyoda Gosei expands in Mexico Hayes Lemmerz plans to close Georgia factory Japan's sales slide 2% in 1st quarter; output climbs Dealers Hyundai let U.S. direct Sonata freshening After .com and .edu, is it time for .car? Panoramic sunroof of Lincoln MKS boosts Inalfa sales Chrysler hedged gas price bet Smart phones help dealerships retain customers CAW completes pacts with GM, Chrysler early GM, UAW resolve 2 disputes New media buyer for Chrysler Visteon names Stebbins CEO Convertible registrations drop Ferrari: From denial to debut Buildings Porsches in U.S.? Depends whom you ask Toyota will go slow in Tupelo Ghosn is glum on prices, U.S. sales prospects Pischetsrieder has earned a celebratory cigar NHTSA spins VINs, averts meltdown F_RD GU_S WI_ BUI-_KS 50 PEOPLE FOR 50 YEARS Yutaka Katayama Clarence Talley Jim Morton Pete Brock Marvin Runyon Yoshikazu Hanawa Bill Bruce Shin Maki Jack Collins Mitsuya "Scape" Goto Bob Link Soichi Kawazoe Jerry Hirshberg Takashi Ishihara Roy Rogers John Parker Bob Thomas Teruo Uchino Morrie Sage Bob Thomas Nobe Wakatsuki Earl Hesterberg Carlos Ghosn Lee Clow Jerry Benefield Yutaka Kume Doug Betts Tim McCarthy Jed Connelly Atsushi Nakatsuji Dave Hubbard Joe Opre Patrick Pelata Yoshiyuki Kimura Diane Allen Mad Mike Taylor Chuck King Larry Dominique Mark Igo Mitsuhiko Yamashita Shiro Nakamura Tom Mignanelli Dick Roberts William Cushing Emil Hassan Chester Luby Jane Nakagawa Louis Schweitzer MR. K Ray Lemke Richard McCutcheon

Automotive News - May 19, 2008

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