7 New Year Resolutions Your Car Dealership Should Make in 2024

Table of Contents

Executive Summary
As we step into 2024, it’s crucial for your car dealership to set ambitious resolutions for the year ahead. Enhance customer service, embrace technology, and prioritize sustainability to drive success. From establishing a robust feedback loop to optimizing inventory rotation, these resolutions are designed to boost efficiency and profitability. Implement cloud-based systems, fortify data security, and strengthen your online presence to stay competitive. By committing to these resolutions, your dealership can thrive in the new year.

As we kick off a new decade, it’s the perfect time to reflect on your car dealership’s goals and aspirations.

What better way to start the year off right than with some New Year resolutions to help take your business to the next level?

From improving customer service to increasing profitability, we’ve got you covered with our top-resolution picks for your dealership.

Keep reading to find out more!

What Goals Could You Set and Achieve in 2024?

73% of customers believe that exceptional service influences their choice of dealership.

Did you know that 67% of car buyers conduct online research before even stepping onto a lot? The digital highway is where the game begins, and embracing new technologies is the turbo boost your dealership needs.

From virtual showrooms to personalized online interactions, the data-driven roadmap to success is paved with innovation.

Only 15% of car dealerships actively engage in sustainable practices. Imagine standing out not just for your sleek rides but for your commitment to a greener tomorrow. It’s not just a resolution; it’s about implementing change.

So, let’s dive in and discover the key resolutions your car dealership should make in 2024.

1. Set Up Customer Feedback Loop

The customer feedback loop is the process that allows you to collect feedback from customers, analyze it, and use it to make improvements to your dealership.

This can help you identify areas where you’re doing well and areas where you can improve and make changes to boost the overall customer experience.

Here are some steps to set up a customer feedback loop at your car dealership:

Choose a feedback method: There are several ways to collect feedback from customers, including surveys, feedback forms, and social media. Choose the method that works best for your dealership and your customers.
Determine what information you want to collect and how you will use it. Will you collect feedback on the sales process, service experience, or overall customer satisfaction? Will you use the feedback to improve your inventory, customer service, or marketing efforts?
Set up a system for collecting feedback: Create a system for collecting feedback, such as a survey or feedback form, etc. Make sure the system is easy to use and accessible to all customers.

Analyze & Respond: Once you’ve collected feedback from customers, analyze it to identify trends as well as areas for improvement. Use this information to make changes to your dealership, such as improving your inventory, customer service, or marketing efforts.
Respond to customer feedback in a timely and professional manner. If a customer has provided negative feedback, address their concerns and work toward resolving the issue. If a customer has provided positive feedback, thank them for their input and let them know how you’ll use their feedback to improve.
Share feedback with employees: Share customer feedback with your employees to help them understand what customers are saying about your dealership. This can help them identify areas where they can improve customer experience.

2. Optimize Stock Rotation

In the automotive world, establishing a first-in, first-out (FIFO) stock rotation system is akin to making sure that the older model years or units are given the spotlight first.

Just like a car enthusiast might appreciate a classic model, prioritizing the sale of older inventory helps ensure each vehicle gets its time on the showroom floor.

Regularly checking the “expiration dates” for cars – perhaps those with outgoing model years – and prioritizing their sale is like ensuring that every vehicle finds its new owner before the next exciting model arrives.

It’s not just about preventing financial losses; it’s about showcasing the unique features of each vehicle and offering customers a chance to experience the full range of what your dealership has to offer.

Just as you’d want to take your customers on a memorable journey with their new cars, a well-thought-out stock rotation strategy ensures that every vehicle gets its time in the spotlight. It contributes to overall efficiency and customer satisfaction at your dealership.

3. Implement Inventory Rotation to Promote Higher Turn

In the automotive world, utilizing inventory rotation means ensuring that your dealership has precisely the right number of vehicles on hand, aligning with customer preferences and market trends.

It’s like having the latest models ready for display and test drives without overcrowding your showroom floor.

Think about it like this: you wouldn’t want to fill up your dealership lot with cars that might not align with current customer demands. Think like a customer and place the hot vehicles where they will catch the most attention. Have the optimal inventory to meet customer needs without excess baggage.

It’s akin to offering a streamlined and dynamic showroom experience, where every vehicle is strategically placed to meet the pulse of the market.

This approach helps avoid pitfalls of excess stock but also frees up capital that can be invested in other aspects of your dealership, like customer service or marketing.

4. Invest in Cloud-Based Inventory Management Systems

Implement cloud-based inventory management systems that offer real-time visibility and accessibility from any location. This facilitates better coordination among team members and allows for quick decision-making.

A cloud-based system, such as Autosoft, provides this flexibility, ensuring that you and your team can coordinate efforts efficiently, whether you’re at the dealership or miles away. It’s like having the ability to steer your business in the right direction, no matter where the road takes you.

This investment isn’t just about upgrading technology; it’s about empowering your team to navigate the digital terrain with ease. As cloud-based systems offer real-time visibility, your dealership gains the agility needed to stay ahead in the competitive automotive landscape.

5. Online Presence Enhancement

Strengthen your online presence by actively engaging with customers through social media platforms, forums, and online communities. Share valuable content, respond to customer inquiries promptly, and showcase the unique features and offerings of your dealership.

A vibrant online presence not only attracts potential customers but also builds a community around your brand.

Moreover, implementing targeted advertising ensures that your promotional efforts resonate with the right audience. Utilize data-driven insights to identify demographics, interests, and online behaviors of potential customers.

This precision allows you to tailor advertisements that speak directly to the needs as well as preferences of your target market. Platforms like social media and search engines provide effective channels for deploying these targeted campaigns, maximizing their impact.

6. Utilize Sales & Customer Management (SCM) Software to Strengthen Relationships

Implementing SCM software in your automotive dealership brings numerous advantages. SCM acts as a centralized repository, consolidating customer information, enabling personalized interactions, and facilitating targeted marketing efforts. It streamlines communication through automated processes, ensuring consistent engagement and follow-ups.

The software aids lead management, prioritizing prospects, and automating nurturing processes to increase conversion rates. SCM tools enhance sales efficiency by automating routine tasks, allowing the sales team to focus on building relationships and closing deals.

Data analytics provided by SCM systems offer insights into customer behavior, preferences, and overall sales performance, empowering informed decision-making. Loyalty programs and personalized incentives foster customer retention, contributing to long-term brand loyalty and advocacy.

SCM software also promotes team collaboration, allowing different departments to work seamlessly together. Overall, SCM software revolutionizes how dealerships manage relationships, streamline processes, and elevate customer satisfaction, ultimately leading to increased business success.

7. Fortify Customer Data Security

Lock in like a pro and safeguard your customers’ data with fancy encryption and secure access controls. Then, revitalize those customer connections by making every interaction spot-on and super reliable.

Stay on the good side of the rules by using your dealer management system (DMS) to track and manage compliance effortlessly.

Want to make your crew the A-team? Automate the boring stuff with a DMS, giving everyone more time to shine. Educate the squad on how to be data superheroes with some top-notch training because knowledge is horsepower.

Lastly, be the hero in case things get a bit rocky – back up that precious data and have a plan to get back on the road fast. These resolutions not only promise a stellar 2024 but also show your commitment to being the best dealership in town!

Summing Up!!

To drive your dealership towards a sustainable and successful future, implement eco-friendly practices both in vehicle offerings and operational strategies.

Introduce hybrid and electric vehicle options to meet the rising demand for environmentally conscious choices. Also, adopt eco-friendly initiatives within your dealership operations, reducing your carbon footprint.

Enhance customer experiences with SCM software and automated systems for seamless appointment scheduling and reminders.

Additionally, staying ahead in the automotive industry requires staying informed. Attend industry conferences & workshops to connect with the latest trends and innovations.

Keep a close eye on new car models and evolving technologies to remain competitive and meet customer expectations. By combining sustainable practices with staying abreast of industry trends, your dealership is not just driving toward success but also contributing to a greener and more progressive automotive landscape.