CDK Global Inc. is rising a new dealership government complement with a downturn-sensitive pricing indication as it tries to interest to smaller retailers and branch patron defections, a DMS hulk said Thursday.
Instead of a prosaic monthly charge, a new DMS, called Drive Flex, comes with a price that varies any month depending on a series of vehicles sole by a dealership, a volume of correct orders created by a use dialect and a series of worker users on a system.
It’s a “pay-by-the-drink” plan, CDK CEO Brian MacDonald pronounced in an interview.
If sales tumble since a altogether marketplace tanks, a dealership’s code runs into headwinds or even if that month is always a diseased one, a monthly price will dump in tandem.
“With this non-static pricing model, we are putting ourselves in a position to advantage when dealers are carrying a good month and also to float a downturn with them,” MacDonald said. “We’re aligning ourselves with a dealer’s success.”
Drive Flex represents CDK’s latest step in a augmenting efforts to residence dual weaknesses that rivals have exploited: difficult billings and a notice that it is overpriced, generally for smaller dealership groups. The pierce comes as a DMS marketplace prevalence of giants CDK, of Hoffman Estates, Ill., and Reynolds and Reynolds, of Dayton, Ohio, is being challenged by systems from Cox Automotive, Dominion Dealer Resources and others.
1, 2 rooftops
While Drive Flex is tailored quite to smaller dealerships with one or dual rooftops and labelled competitively for that segment, it is a full DMS with all a record a dealership currently needs, CDK executives said.
“It’s a full functioning DMS that runs a store out of a box,” pronounced Ron Frey, CDK arch plan officer.
He noted, though, that CDK had found that some smaller dealership groups didn’t need all of a functions that incomparable groups employed in CDK’s other DMS offerings. So for a smaller impending clients of Drive Flex, “we found a change for them” while providing all of a core functions many used during a dealership, he said.
That is only one approach that Drive Flex reflects CDK’s new “We’re Listening” campaign, Frey said. “This is what a marketplace is seeking for: some-more variations in pricing.”
Because a complement was designed around a dealership-user experience, he added, a time compulsory for doing and training when a complement is commissioned will be “remarkably different.”
For example, MacDonald told Automotive News, a complement was built so as to condense a time indispensable for information emigration from a before DMS to a newly commissioned Drive Flex complement from “weeks [with progressing systems] to hours.”
With Thursday’s announcement, CDK will recover Drive Flex to an already-selected organisation of dealerships to commander a complement by June. CDK will denote it during a NADA gathering in Las Vegas Mar 22-25, and start holding orders after NADA. The tangible rollout to buyers will come after June.
Drive Flex is a cloud-based DMS with new interfaces and enterprise-level security, CDK Chief Technology Officer Rajiv Amar said.
For many of a DMS offerings on a market, “the usability is severe — you’ve got to go to 5 opposite screens to do an action,” Amar said. “We pronounced workflow unequivocally matters. Make it probable on a singular screen.”
The complement also offers “modern focus programming interfaces that capacitate easy formation to other program offerings, to put a play in control for destiny expansion and innovations,” CDK pronounced in a statement.
Drive Flex has no ties to Auto/Mate, a DMS provider that is generally clever among one- to two-rooftop dealership groups. CDK is in a routine of appropriation Auto/Mate, in partial to improved offer that niche. The understanding is still going by regulatory approvals.
Separate from a Auto/Mate move, “we’ve been innovating this, meaningful there’s a need for creation in DMS,” MacDonald said.