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2021 DEALERDMS SENTIMENTSURVEY

YOUR FIRST STEPTO BREAKING FREEThank you for downloading the 2021 DMS DealerSentiment Survey, a guide to help you take backcontrol by choosing a dealer management systemthat meets the needs of today’s dealership.Selecting a DMS is one of the most importantdecisions you will make for your dealership, andour hope is that the conclusions found within thiseBook will help you break free from outdatedsystems limiting your success.We wanted to determine how a DMS canhelp dealers as they pivot quickly in thisrapidly-changing market. With this in mind,we commissioned an independent study tounderstand more about what dealers need fromtheir DMS. In this eBook, we will discuss the toppain points with today’s DMS and share reasonswhy dealers are moving to new solutions.While most software providers emphasize theconsumer experience, we believe that a goodconsumer experience starts with a great employeeexperience supported by the right DMS. Youdeserve a solution that helps your dealershipsucceed by providing the information you need, inthe way that you want it.We hope the findings contained in this eBook willhelp guide you in your journey.Sincerely,Sharon KitzmanPresident, Dominion DMS

PLANNINGFOR YOURNEXT DMSIn this eBook, we highlight the three mostessential requirements of today’s DMS, basedon an independent study of dealer sentiments:Security, Mobility and Features.We hope these findings provide you with aroadmap for making your next DMS decision, onethat can ensure business continuity even duringturbulent or unexpected times.

KEY TAKEAWAYSAS A DMS USER, DEALERS LIKE YOU 1.Want a solution that is secure, cost-effectiveand efficient2.Seek a feature-rich solution3.Agree mostly on which features are Core and Select4.Rank Mobile Service Drive Inspection and Dashboards5.Consider Integrated Multi-Point Inspection (MPI)6.Often describe Quality of Technical Support ashigh on the list of expected Core Featuresto be a top Select Featurea current DMS limitation7.Prefer different pricing models based on company size8.Prefer a cloud solution for its security (89%)9.Identify Microsoft (83%) as the preferred softwareprovider in the automotive space over Googleand Apple

STUDY AT A GLANCETo conduct this study various dealers from an independent panel acrossthe United States were surveyed. The scope of this survey included:Surveyed 220 DMS Decision MakersDealership Size – Mix of sizes andfrom various car dealershipsstructures (including large, single-pointdealers as well as dealer groups, etc.)Discussed pain points, top limitations andSurvey participants included Dealers, Chiefconsiderations made when evaluatingFinancial Officer, General Manager, Controllercurrent DMS and future purchasesand Fixed Operations ManagerResearch objective: to understand whatExamined dealership attitudes toward DMSdealers expect from a DMS

DEALER DMSEXPECTATIONS

WHY DEALERSSELECTEDCURRENT DMSSecurity and Features are the top reasons customers selected theircurrent DMS solution, followed by Quality of Support. Quality ofSupport is often an attribute that customers describe as one oftheir DMS’ greatest limitations.40%SECURITY36%FEATURES29%QUALITY OFSUPPORT

REASONS DEALERS AREUNHAPPY WITHCURRENT DMSPrimary motivators behindswitching often come down toDMS Features’ type and thesolution’s price and security.Top 3 reasons dealers areunhappy with current DMSTop 3 reasons dealerswould switch their DMS

AGREEMENT ONCORE FEATURESA Core Feature is one that must beincluded in a DMSBolded features, such as Integrated MPI, Vehicle Barcoding, and HR/EmployeePortal were considered Select Features that a large portion of respondents didn’toapoApashbDCORE FEATUREI wouldn’t consider a solution without this feature.SELECT FEATUREInclusion of this feature would influence me tochoose this product over another.PREMIUM FEATUREI would expect to pay extra for this.rdsintmMenainttSencFian c h edxeuledinMOgenpsReusTepaxtiirEnDoc stim g /NumatotificPa ent esatirtMsBongmt/Pa arcorts W din ScannghMino b olegsailelAu Ser ingvitocematic DriFixeveDdO i sp apsPatcOhiyrnlngolinlAeOpPnlai n p l iceati ymeVContoesl l e h ic nlectiSaoInte ns M lesgraatHed n agRSu M P e m eintIVe tehicl eBRem a rcotodinH eDgMR/ESACe mpl cceosntra yee s / WlizPMob ed P orta FHileaylroAC / TllaHbletEDD mplMigSita oyeAelPa cceAC DeyalHm sseVe Jacke ntndCetontra r PaymAd lizedenvaAnctccedounRepo tingrtingexpect to be part of a Core Package.LEGEND60%50%40%30%20%10%*All features presented in the survey were considered necessary, no respondents chose the “Not Needed” option

DASHBOARDS AREMOST IMPORTANTThis is considered afeature that must beincluded in a DMSThe 9 features in the table were considered CoreFeatures regardless of dealership size.In addition, dealerships with employee counts ofless than 100, Parts Wholesaling and Mobile ServiceDrive were the top features that would persuade adealer to switch their DMS.For dealerships with employee counts of more than100, Parts Wholesaling and Repair Estimates werethe top features that would persuade a dealer toswitch their DMS.Dealership Size1 - 100 EmployeesDealership Size100 7%10%53%34%13%

SMALLER DEALERSHIPSEXPECT MOREDealers are split on whether Payroll Applications,HR Suite, and Remote DMS Access/Work FromHome (WFH) features were Core or Select Features,regardless of company size.This graph also identifies Premium features, which areexpected to cost more.LEGENDCORE FEATUREI wouldn’t consider a solution without this feature.SELECT FEATUREInclusion of this feature would influence me tochoose this product over another.PREMIUM FEATUREI would expect to pay extra for this.Dealership Size1 - 100 EmployeesDealership Size100 30%53%17%37%41%22%

MICROSOFT IS THEINDUSTRY’S FIRST CHOICEWhen DMS users were asked to rank theirtop 3 software providers for the automotiveindustry, they chose Microsoft as their firstchoice %Amazon4%40%57%Apple5%33%62%

A DEEPERLOOK AT DMSEXPECTATIONS

WHAT TO LOOKFOR IF YOURDEALERSHIP HAS100 EMPLOYEESCoreSelectPremiumMobile Service Drive64%28%8%Appointment Scheduling60%33%6%Maintenance Menus58%32%9%Dashboards57%34%8%Fixed Ops Texting / Notification57%33%8%Repair Estimates56%36%7%Document Mgmt / Scanning55%35%9%Parts Barcoding54%31%15%Parts Wholesaling52%36%11%Fixed Ops Online Payments48%36%16%Automatic Dispatching47%40%14%Payroll Application46%43%11%identified nearly half of the listed features asIntegrated MPI45%49%6%Core Features, with Mobile Service Drive (64%)Collections Management43%47%10%listed as their top Core Feature.HR Suite42%32%26%Mobile / Tablet DMS Access40%31%29%Online Vehicle Sales40%41%20%HR/Payroll Employee Portal39%43%19%Centralized Payroll36%41%22%Remote DMS Access / WFH36%40%24%Vehicle Barcoding33%49%18%Digital Deal Jacket31%35%33%Centralized Accounting23%49%28%ACH Vendor Payment22%45%33%ACH Employee Payment21%39%41%Advanced Reporting15%32%53%Based on the study, the largest dealerships64%of larger dealerships sayMobile Service Drive shouldbe a Core Feature in their DMSFeature Type

INTEGRATED MPI ISAN ESSENTIAL FEATUREMost dealerships, regardless of size, consideredVehicle Barcoding ranked higher due to a larger percentage of top DMSIntegrated MPI and Centralized Accounting as partcustomers (49%) categorizing it as a Select Feature whereas the group as aof their top three Select Features.whole, selected HR/Payroll Employee Portal at similar rates (46%).ALL RESPONDENTSCUSTOMERS OF TOP 3 COMPETITORSIntegrated MPI / 48%Integrated MPI / 49%Centralized Accounting / 47%Vehicle Barcoding / 49%HR/Payroll Employee Portal / 46%Centralized Accounting / 49%Vehicle Barcoding / 45%Collections Management / 47%Collections Management / 45%ACH Vendor Payment / 45%ACH Vendor Payment / 45%HR/Payroll Employee Portal / 43%ACH Employee Payment / 39%Online Vehicle Sales / 41%Centralized Payroll / 39%Centralized Payroll / 41%Digital Deal Jacket / 38%Remote DMS Access/ WFH / 40%

SECURITY ISTOP REASONFOR MOVINGTO THE CLOUDMoving to the cloud is more than a trend. It provides greatersecurity, mobility, and availability with minimal maintenance.Mainly for security and efficiency reasons, cloud solutions arepreferred over on-premise solutions. It helps them take backcontrol of their data and minimize threats from cyberattacks.89%of larger dealerships seeka DMS vendor who offerscloud solutions

CLOUD-NATIVEAPPLICATIONS AVOIDDISRUPTIONS IN SERVICE“Cloud-native” is building and runningapplications completely in the cloud –no on-premise infrastructure required.These are the features thatdifferentiate a cloud-native DMS.FEATURESCLOUD-NATIVE DMSTRADITIONAL / ON-PREMISE DMSInfrastructureNo on-site infrastructure, removingneed for IT and maintenanceOn-site servers required, taking up dealershipspace and resourcesCapacityScales up automatically during peakhours to meet capacity needsBuilt for the worst-case scenario and cannotscale without expensive upgradesDeliverySoftware updates implementedimmediatelyServer updates require application changes andlonger test cyclesRecoveryRapid response for native,automatic disaster recoveryNeed hours or days of prep time to handledisaster recovery and servers at other locationsLeverage closest data centerfor faster service and optimalperformanceDependent on server location, which can impactperformance speedWeb-based application that’saccessible anywhere without VPNVPN required to access, limiting off-site andremote connectionGeographic ReachAccessibility

ABOUT SHARON KITZMANSharon Kitzman is the President of Dominion DMS. OverSharon is recognized as an expert in DMS technologythree decades, she has managed the strategic directionand development. She has received numerous industryand product development for three leading DMSaccolades including Automotive News Top 100 LeadingProviders: Reynolds & Reynolds, Dealertrack DMS, andWomen 2015 and 2020, Auto Remarketing Women inVUE DMS, a Dominion Dealer Solutions company. SharonRetail 2021, and AutoSuccess Women at the Wheel 2021.is a recognized leader in the automotive industry for hersales, marketing, product lifecycle management, processre-engineering, OEM management, professional services,and customer services.Sharon joined Dominion Dealer Solutions following asuccessful tenure at multiple DMS providers to leadthe launch and long-term growth of its cloud-nativeDMS, VUE. She will continue to build VUE’s strategicpartnership with Microsoft and other third-partyproviders in this role. In addition, she will draw on herexperience in elevating customer satisfaction and growingmarket share to ensure VUE is the DMS partner of choice.

ABOUT VUE DMSVUE DMS, the first cloud-native dealer management solutionbuilt on Microsoft Azure, provides US-based retail automotivedealers the digital security, flexibility and efficiency to meettoday’s rapidly changing market. Leveraging decades ofexperience serving dealerships, VUE DMS enables dealers totake back control to deliver a superior experience, reduce costsand protect their business. Learn more at VUEDMS.comVisit VUEDMS.com/DMSsurvey or call 877.421.1040 to learn how you canbenefit from the security, efficiency and mobility of a cloud-native DMS

VUE DMS, a Dominion Dealer Solutions company. Sharon is a recognized leader in the automotive industry for her sales, marketing, product lifecycle management, process re-engineering, OEM management, professional services, and customer services. Sharon joined Dominion Dealer Solutions following a successful tenure at multiple DMS providers to lead