F&I and Showroom, April 2014

Letter From the Editor The editor has a little egg on his face after discovering that his recent criticisms of technology pushers were unwarranted By Gregory Arroyo I get a lot of public relations pitches every month Each one touts some cure to what ails our industry If Im not buying what theyre selling I typically respond with a promise to contact them with questions once Ive reviewed their press release But Im usually willing to stay on the phone for a few minutes to hear what they have to say I spent a little time in PR myself so I know a good pitch when I hear one And when Joan Witte the PR person representing the subject of this months cover story contacted me last summer I knew I had a real pro on the line So I gave her a little time to get through her pitch Witte talked about new customerretention strategies being employed by captive fi nance companies and how her client was driving those efforts I reminded her that the magazine was geared toward dealers and asked if the companys solution was marketed to that segment I got a mixed answer No it wasnt but yes dealers will benefi t Witte and I communicated a few more times before the close of last year but I just wouldnt bite She tried me again in January as I was preparing for my trip to the National Automobile Dealers Associations annual convention in January She wanted me to meet her client I begrudgingly agreed See I arrived at the 2014 NADA Convention Expo after penning an editorial that was critical of technology pushers who want dealers to take transactions online in the name of the customer experience My main beef is we cant ask dealers to do that using untested and unproven solutions and processes 6 F I and Showroom April 2014 In fact I opened with that line each time I met with exhibitors at the convention To back up my statement I relayed what dealers had been telling me about General Motors Shop Click Drive online buying option that shoppers were dropping off once they were asked to complete an online credit application Surveys might say they want to buy online but it doesnt appear to be happening Id say Most executives I met with just grinned back at me as if they knew something I didnt My hunch was confi rmed when I spoke to executives with Wells Fargo They stop there but theres technology that will solve that said Bill Katafi as the banks national indirect production manager He was right As I made my way across the show fl oor I began to realize that technology and go to market strategies are beginning to align And from what Ive gathered these strategies have dealers in the mix I wasnt sold however on giving ChannelNet any ink when I met with its founder Paula Tompkins I even kicked off my interview by telling her about my editorial the one in which I was critical of fi rms like hers She didnt fl inch one bit Instead she showed me how her company is bringing together OEMs captives and dealers to help move the metal My eyes were opened and I admitted as much at the close of our conversation Well you can correct yourself in your next editorial she said I will admit that things are moving faster than I thought but I still believe Im right in saying there are still issues that need to be resolved However the technology is there once they are So what did I see Youll have to read about it on Page 14 What I will say is I am noticing a change in how technology is developed Remember when inventory management systems were all the rage during the downturn Yes the need to move cars over the curb was the main driver but what happened was providers of these solutions were teaming up with information sources like Experian Automotive Kelley Blue Book and Black Book to provide real time data to help dealers manage market and source used inventory Well companies are once again teaming up on solutions geared toward other dealership departments including F I So I encourage you to take a look at my story Even if you dont agree captives should have the connection to customers I describe you need to know whats going on right now Look I understand how protective you are of your turf Im not saying you need to lower your defenses What I am saying is that we shouldnt be so afraid of technology that it stops us from seeing whats possible Besides with 55 of all transactions involving a trade in vehicle theres no way a vehicle is sold without the brick and mortar element I dont believe at least in my lifetime that the traditional dealer network goes away said Scott Fink a Florida dealer who has seen ChannelNets solution in action At the end of the day people can do all the due diligence in the world but theyre not buying a camera from Amazon Its not realistic The car is too complex of an asset I couldnt have said it any better Captive Audience