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eLEND Study: Mobile Technology Adoption Hampered by Resistance to Change

January 30, 2017

NEW ORLEANS — Mobile devices can speed up transaction times, yet 60% of dealers not using them say they are not even considering adopting mobile tablets in their dealerships. The reasons given, according to result of a new study conducted by eLEND Solutions, is cost and staff/management resistance to change.

The snapshot survey, conducted among dealerships nationwide in the fourth quarter of 2016, reveals that tablet usage in the sales department is more prevalent than in the F&I department, which is where, according to recent data, dealers report that the process tends to slow down. While the cost of the average tablet is around $400, the time saved by shaving even just one hour from the sales/transaction process could easily create sales productivity and additional car sales, translating into cost benefits that could likely pay for a tablet in a day.

“This survey reveals yet another ‘perception-versus-action’ disconnect in the journey to improve the customer experience,” said Pete MacInnis, CEO of eLEND Solutions. “Dealers say that mobile tablets offer potential for improvements — even those who aren’t using them suggest that they will speed up transaction times — yet half of those surveyed are not even considering implementing them in their F&I departments because of cost and staff resistance to change.”

The good news is that the other half of dealerships surveyed are either considering implementing mobile devices, or already using them, in the F&I department. The survey suggests that mobile devices offer a solution to the biggest issues that dealerships say impede customer satisfaction and profits: streamlining data flow and solving time clogs.

When asked what they thought are the greatest benefits of using tablets in their dealerships, respondents put “Speeds up the process” at No. 1., following by ‘Increases customer satisfaction’ at No. 2. “Improves dealership efficiency and consistency in the process,” and “Makes dealership personnel jobs easier,” and “Increases selling prices and profits” can in at No. 3, 4, and 5, respectively.

Here are other highlights from eLEND’s mobile adoption survey:

  • 50% of dealerships surveyed are either using (17%), or actively considering (33%) using, mobile tablets in the F&I department
  • 24% are using mobile tablets in the sales department, with another 39% considering using them.
  • 60% of respondents not using tablets will not consider using mobile tablets in either Sales or F&I
  • 37% will not consider using mobile tablets in sales department; 50% won’t consider using in F&I
  • Of dealers using mobile tablets, the No. 1 realized benefit cited was “speeding up the sales process” (44%), with improved CSI (39%) and efficiency and consistency of processes (50%) second and third.
  • Of dealers not using mobile tablets, the top perceived benefit cited was speeding up the sales process, followed by improved CSI, and improved process efficiency/consistency
  • Cost, resistance to change, and undefined ROI were the Top 3 reasons dealers cited for not using mobile tablets.

“We believe that mobile technology offers great opportunities to connect the car buying/selling process end-to-end in the dealership and that, as more dealerships adopt the technology, the results will challenge resistance and speak for themselves,” added MacInnis.

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