Automotive News Canada - April 2022 - F10

FIXED OPS JOURNAL
SCREEN SHOT
T
KEN WYSOCKY
foj@autonews.com
o James Stephens, using dryerase
whiteboards and lifeless
posters taped to walls to promote
fi xed ops services is so yesterday.
" A lot of what you see inside dealerships
today is very outdated, " says the fi xed
ops director at Nashville-based Beaman Automotive
Group, part of Hudson Automotive
Group.
But that's not the case at the four Beaman
stores, which feature sleek big-screen monitors
that display attention-grabbing content
in service lanes and most customer lounges,
courtesy of Digital Dealership System. Th e
company specializes in customized, in-house
digital ad solutions for dealerships.
" I wanted to replace all those antiquated
and less attractive in-house displays with
something vibrant and welcoming - portray
a more modern atmosphere, " Stephens told
Fixed Ops Journal.
Th e transformation began in early 2017 at
Beaman Ford in Dickson, about 40 miles west
of Nashville. In the store's service lane, a giant
monitor features a " Dare to Compare " display,
which contrasts the store's prices for
routine services with competitors' prices.
Every 15 seconds, the monitor displays other
relevant customer content, Stephens says.
Th e content can be easily changed and customized
as needed, unlike posters and the
like, says Todd Katcher, managing partner at
Digital Dealership System.
Th e monitors can showcase whatever stores
want to highlight - seasonal maintenance
specials, a $50 gift card for taking a test drive, a
solicitation for trade-ins or even gourmet coffee
in the lounge, Katcher says.
On lounge monitors, customers can see status
updates as their vehicles pass through the
repair process as well as view commercial-free,
non controversial and entertaining
TV programming, he says.
Not just eye candy
Th e in-house advertising also helps Beaman
stores generate more service revenue.
Before adopting digital in-house ads, the
Ford store grossed about $120,000 a month in
service revenue. Six months after establishing
the program, that number jumped to between
$160,000 and $165,000 a month - about a 33
PAGE 10 APRIL 2022
"
Todd Katcher, managing partner,
Digital Dealership System
percent increase, Stephens says.
At Beaman Toyota in Nashville, which features
two large monitors in the service drive
and one in each of two lounges, gross service
revenue hovered around $375,000 a month in
2020. Now it routinely reaches nearly $700,000
a month, Stephens notes - around an 86 percent
increase.
" We get so many inquiries about our services
from customers that watch those TVs, "
he says. " So I absolutely think they've been a
big factor. "
Moreover, the monitors display dealer-recommended
services that harried advisers often
don't have time to thoroughly communicate
to customers, he says.
More effective
Digital in-house ads trump conventional inhouse
marketing displays, Katcher notes.
" Th ere's usually very little digital content inside
dealerships, " he says. " But we live in a
digital environment. "
Furthermore, studies show digital content
In-house digital display ads help dealerships bring sizzle to fi xed ops
captures 400 percent more views than static
displays, boosts the average purchase amount
by 25 percent and increases brand awareness
by almost 48 percent. Moreover, 83 percent of
customers remember digital ads, he says.
Digital ads also can move customers over
the twin hurdles that often dissuade them
from patronizing dealerships for service: price
transparency and lack of communication.
" Our digital technology addresses both of
those concerns, " Katcher says.
Beaman Automotive Group uses big-screen
monitors to show its stores' service prices.
" Too many dealers live
by the door and die by
the door. They're so
focused on driving traffi c
to stores that they forget
what's going on inside
the stores. "
From service to sales
Dealers spend big bucks to get customers
into showrooms to buy vehicles. But they virtually
ignore service customers - a captive
audience already inside the store and spending
money, Katcher observes.
" Too many dealers live by the door and die
by the door, " he explains. " Th ey're so focused
on driving traffi c to stores that they forget
what's going on inside the stores.
" But if you put the right tools in front of customers,
maybe you incentivize them to get off
the comfy couch in the lounge and take a test
drive or get them to trade in a vehicle - at
least start some kind of conversation, " Katcher
says. " Th e lounge is part of the customer journey,
too. "
Furthermore, the cost of in-house digital ads
that move existing customers from service lanes
to showrooms is signifi cantly lower than the cost
of driving new customers to stores, he adds.
Great ROI
A Digital Dealership System can cost anywhere
from $100 to several thousand dollars a
month, depending on the number of screens,
the functionality dealers want and whether
they're installed by the company or the dealership
, Katcher says.
Th e four Beaman stores spend about $900 a
month on the systems, ranging from $100 for
the Beaman Buick-GMC store, also in Nashville,
to around $400 for the Toyota store. But
Stephens says it's a pittance compared with
the return on investment.
" I don't see how any dealer can look past
that, " he says. " In terms of the ROI, $100 a
month is nothing.
" I know how I behave as a consumer, " Stephens
adds. " If I go to a store with digital advertising,
that's what I pay attention to because
it's entertaining and engaging. " 
"
Automotive News Canada - April 2022

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