Automotive News Canada - September 2016 - V2 - 16


16

* SEPTEMBER 2016

BREAKTHROUGH

COMPLETING THE SALE
WINNIPEG DEALER
group has developed its own system for fully digitized sales done
completely online by the customer, eliminating mountains of
paperwork and "revolutionizing"
the finance and insurance business.
And when the system is made
available to other dealers across
Canada later this fall it will leapfrog established industry leaders,
beating them to market with a
fully integrated digital sales system.
Birchwood Automotive Group
of Winnipeg, Man., says its
Simplify system has proven since
2013 to significantly increase
gross profits per vehicle sold.
Birchwood developed the system with long time digital services supplier IA-SAL, based in
Vancouver.
While digital technology is
part of the business
office in most dealerships, for the most part
digital tools stick to
their respective functions.
So the current operating procedure for
most dealerships still
entails lots of data re-entry in the presence of
the customer, tailored
finance and insurance (F&I) product offerings that have to be done
manually and with printouts, and
more paperwork requiring in-person signatures.

F&I INTEGRATION
The product will revolutionize the industry, says Michael
Rawluk, Birchwood CEO.
"We're basically going to leapfrog the (digital sale) development
that has been going on in the U.S.
... we will accomplish what Sonic
has been trying to accomplish
[only] we're going to accomplish
it first."
The Simplify system is entirely online, including pursuing and
selecting relevant F&I products,
and full credit approval.
Birchwood made the strategic decision in 2012 to develop the
system on its own.
"We wanted to increase F&I
profits, improve customer engagement and transparency, streamline processes and improve compliance," said Rawluk. "We could
only do that through software
development and working with
our main strategic partners and
suppliers on integration."
IA-SAL, a long-time F&I supplier to Birchwood, agreed to
integrate with the new system
and support its development.
Other strategic partners include
RouteOne, ScotiaBank, and vehicle-history tool CarProof. IA-SAL

ONLINE
New technology from Manitoba
seals the deal, completely online,
for simpler transactions and about
$1,000 more per vehicle
By MICHAEL GOETZ
TORONTO CORRESPONDENT

saw the integrated system produce surprising F&I sales results
at Birchwood and approached the
group about taking the product to
other dealers. The two partners
then formed a separate company
to modify and market the product, now called Simplify.
Two dealerships
are testing the system:
Park Avenue Honda
in Brossard, Que.,
and Classic Honda
in Mississauga, Ont.
IA-SAL will lead the
project as it rolls out,
says Rawluk.
Luc Samson,
vice-president of sales
for IA-SAL, notes the
rapid consolidation of dealerships of late has exacerbated the
problem of digital integration in
the F&I office where one group
may have as many as six different dealer management systems
(DMS). He says Simplify can be
integrated into any DMS.
"But at the end of the day we
will be able to gather all the information in the same system," said
Samson. "This is my promise to
the industry: to provide the dealer network with digital technology that will give them the ability
to do the whole deal in one system."

TABLETS, E-SIGNATURES
The system allows customers
to follow a transaction, or even

When the customer
signs on a pad,
contracts are
automatically sent to
them by email, just like
the Apple Store.
MICHAEL RAWLUK
Birchwood CEO

Luc Samson of F&I supplier
IA-SAL promises to provide
technology for dealerships
to "do the whole deal in one
system."
drive the process on a separate
screen or tablet from the one used
by dealership personnel.
If for example, a customer
wants to know what an extended warranty would add to the
monthly payment, says Rawluk,
the customer can simply request
the change on the tablet and
the system would automatically
reach into the warranty company, pull the rates and complete
the calculation.
"So you get rid of all that
clunky manual stuff, or the
FSM [financial services manager] working behind the screen,"
Rawluk says.
He says the customer can also
go through the menu at home and
continue the digital process as far
as they want to take it.
"All the contracts and paperwork are automatically generated and we have full e-signature in
our group."

PAPERLESS WORKFLOW
"It has transformed our entire
dealer group to a paperless workflow. When the customer signs on
a pad, contracts are automatically sent to them by email, just like
the Apple Store."
Accuracy and compliance are
also increased.
"If one signature is missing,
it won't allow you to deliver the

vehicle," says Samson.
Because Manitoba now allows
e-signatures for contracts, a fully
online sale is possible. Rawluk
says, however, that the group
insists it meets customers in person at some point, out of concerns
about compliance and identity
theft.

NEW FLEXIBILITIES
It's one thing to have digital
F&I tech, but it's another to use
it to its fullest potential, says one
service provider.
"New technology puts the control in the [customer's] hands.
Some dealers understand that and
will benefit from it; others will be
challenged by it," says Alan Bird,
CEO of SCI Marketplace, which
offers both Customer Relations
Management and credit-portal
platforms.
Bird believes that tablets,
mobile apps, secured links and
other digital solutions can be
used to push what used to happen
in the business office "further
upstream."
There is no "one-point-in-time
solution," he said.
"F&I products need to be available when the buyer is ready to
look at them; that might mean
upstream or in the business
office."
Bird said that customized F&I
presentations based on data technology that harnesses what you
already know of the customer,
and a strategy of asking the right
questions, will better match products to each customer to improve
profits and customer satisfaction;
basically, fewer products offered
with higher take rates.

MERGER OF ROLES
At the Birchwood Group, the
combination of integration and
a customer-friendly digital road
map means that sales staff help
customers deeper into the process, and into traditional business-office territory.
"You could sit with your sales
person and go through the entire
process, start to finish. So we're
really talking about the merger of
roles. It also gives the customer
the option to start the transaction
online and go to the end if they
want to, but at any time they can
come to the dealership and pass
the baton to the salesperson to
carry it to the end."
With Birchwood customers
"in control" they can also easily choose to "not select" any F&I
products on the online menu.
Rawluk realizes that many in
the industry think this is a deal
breaker, but Birchwood contacts
"non-takers" with a follow-up
phone call or email.
And the numbers speak for
themselves: "We're up approximately $1,000 on F&I gross profit
per vehicle since 2013."- ANC



Table of Contents for the Digital Edition of Automotive News Canada - September 2016 - V2

Automotive News Canada - September 2016 - V2 - Intro
Automotive News Canada - September 2016 - V2 - 1
Automotive News Canada - September 2016 - V2 - 2
Automotive News Canada - September 2016 - V2 - 3
Automotive News Canada - September 2016 - V2 - 4
Automotive News Canada - September 2016 - V2 - 5
Automotive News Canada - September 2016 - V2 - 6
Automotive News Canada - September 2016 - V2 - 7
Automotive News Canada - September 2016 - V2 - 8
Automotive News Canada - September 2016 - V2 - 9
Automotive News Canada - September 2016 - V2 - 10
Automotive News Canada - September 2016 - V2 - 11
Automotive News Canada - September 2016 - V2 - 12
Automotive News Canada - September 2016 - V2 - 13
Automotive News Canada - September 2016 - V2 - 14
Automotive News Canada - September 2016 - V2 - 15
Automotive News Canada - September 2016 - V2 - 16
Automotive News Canada - September 2016 - V2 - 17
Automotive News Canada - September 2016 - V2 - 18
Automotive News Canada - September 2016 - V2 - 19
Automotive News Canada - September 2016 - V2 - 20
Automotive News Canada - September 2016 - V2 - 21
Automotive News Canada - September 2016 - V2 - 22
Automotive News Canada - September 2016 - V2 - 23
Automotive News Canada - September 2016 - V2 - 24
Automotive News Canada - September 2016 - V2 - 25
Automotive News Canada - September 2016 - V2 - 26
Automotive News Canada - September 2016 - V2 - 27
Automotive News Canada - September 2016 - V2 - 28
https://www.nxtbook.com/nxtbooks/crain/canada_202402_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202401_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202312_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202311_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202310_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202309_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202308_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202307_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202306_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202305_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202304_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202303_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202302_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202301_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202212_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202211_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202210_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202209_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202208_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202207_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202206_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202205_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202204_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202203_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202202_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202201_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202112_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202111_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202110_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202109_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202108_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202107_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202106_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202105_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202104_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202103_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202102_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202101_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202012_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202011_ifm
https://www.nxtbook.com/nxtbooks/crain/canada_202011_acg
https://www.nxtbook.com/nxtbooks/crain/canada_202011_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202010_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202009_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202008_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202007_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202006_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202005_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202004_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202003_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202001_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201912_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201911_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201910_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201909_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201907_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201906_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201904_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201903_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201902_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201901_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201812_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201811_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201810_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201809_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201808_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201807_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201806_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201805_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201804_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201803_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201802_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201801_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201712_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201710_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201709_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201708_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201707_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201706_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201705_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201704_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201701_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201612_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201611_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201610_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201609_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201608_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201607_v2
https://www.nxtbookmedia.com