7 Ways a Great Lot Management Solution Drives Revenue for Dealerships

New Lot Management Solutions Speed Up Sales Efficiency and Customer Engagement

We’ve seen it coming for years. The way cars are made have dramatically changed from analog dials and combustion engines to touchscreen “infotainment” systems and electric engines. Whether balancing a budget online, finding restaurants on an app, or even tracking your runs with GPS, electronics are becoming more digital and connected. Auto dealerships need to make sure they’re ahead of the digital curve or they could lose customers and overall business due to inefficient lot management practices experienced by the customer.

By adding a lot management solution to vehicles, new dealers can greatly speed up the customer experience so they’re on the road faster and safer. Here are 7 value-add and operational efficiencies to look for when considering a lot management solution for your dealership:

1.  Reduce the Car Buying Process 

With the right lot management tool, your sales team can find cars to test drive faster. They can search by make, model, trim, color, stock, VIN, battery level, and your team can see the exact location on a map – saving customers 30 minutes per deal!

2.  $200-300 More Per Copy 

When deals are quicker, you get happier customers. Happier customers tend to spend more in F&I so by providing extra assurance that the car can be located and it can ensure their loved ones are driving safely, then that’s a valuable option customers want.

3.  Lift CSI 

By saving time for customers, this also means that you the dealer can improve your customer satisfaction index (CSI) scores dramatically. With higher CSI scores, the more money in your pocket from the manufacturer in addition to boosting your reputation.

4.  Pinpoint Vehicle Location with 4-Foot Accuracy 

The rise of mobile shopping opens up the door for your customers to leave if they have to wait long to take a simple test drive. The lot management tool should be able to show you the exact location of all your vehicles up to 4 feet! This include dealer trades, extended test drives, stolen vehicles, and loaner cars.

5.  Streamline Battery Management 

Have you been to a dealer where the car you wanted to test drive had a dead battery? That alone can tarnish the car buying experience for many, especially if other cars took too long to find and also had a dead battery. To reduce this nightmare scenario, use a lot management tool that not only locates the exact car location but also reports on battery levels regularly so your service team can make sure there’s plenty of juice for every car.

6.  Early Theft Warning – After-Hours Alerts 

Improve security and reduce costs with after-hours geofence alerts. With the right solution, you can simply set alerts for times when your dealership is closed, then get notified on your phone and in a web portal if vehicles move off the lot at restricted times.

7.  Mileage-Based Service Alerts 

According to the National Automobile Dealers Association, service and parts for new dealership totaled to a whopping $114 billion in 2017. A solution that provides accurate GPS-based mileage, you can send the right service message to the right customer.

If You Improve Lot Management, They Will Come

This guide should point you in the right direction when comparing different lot management solutions to improve your business efficiency and how your dealership engages with customers.

One of these lot management solutions is Kahu by Spireon, which is available for both dealers and consumers. Dealers can easily manage inventory, track specific vehicle location, and see low battery indicators using a mobile phone or tablet, streamlining operations and creating a better buying experience for consumers using the Kahu app.

Learn more and schedule a free Kahu demo at /kahu/#becomedealer or or by calling one of our friendly experts at 800.557.1449.

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