Purchasing and selling a pre-owned car can be fraught with risk. Buyers need guarantees that the car hasn’t been through major accidents—they want to know that a genuine owner is selling the car. Sellers want the best price for the vehicle and smooth transactions. A frontrunner in the industry, Indonesia’s mobil88 has found a way to address these complex wants and needs with Microsoft solutions.
Engaging the next generation
“The market has moved online. We felt the need to be present online to promote and fulfill our customers’ needs by providing them with a new and easy purchasing or selling experience,” says Halomoan Fischer Lumbantoruan, President Director of mobil88.
By deploying Microsoft Dynamics 365 and ensuring its integration with mobil88’s existing systems, the company has made online buying and selling of pre-owned cars a safe and convenient process. This strategic move has taken mobil88’s sales leadership online and allowed it to engage the next generation of Indonesian pre-owned car buyers.
As one of the country’s market leaders, mobil88 has more than 20 branches and sells more than 13,000 cars annually. Its offerings are diverse and undergo tight quality control. Customer service is critical to its operations. For both buyers and sellers, mobil88 provides technical expertise to assist them through the entire process. Buyers receive a buyback guarantee, certifying that machine and chassis numbers match provided documents and vehicles are free of accidents, floods, and odometer adjustments.
The company chose a digital strategy to compete within the price-sensitive, pre-owned car market in Indonesia. Many of mobil88’s prospective first-time car buyers are tech-savvy millennials who do purchasing research online. Fortunately, according to Fischer, “Our research shows that customers associate mobil88 with safety and trust. We had to integrate those positive associations with a full digital journey for second-hand car transactions. We wanted the result to offer our customers a new experience. We need to be able to compete in a world where change owing to technological advances happens rapidly.” For mobil88, this means improving and accelerating sales and operations.
Making the digital journey
mobil88 had three systems to run its operations: Systems, Applications, and Products (SAP); Hybris for Customer Relationship Management (CRM); and a remote system developed by the company’s Corporate Information System and Technology (CIST) division. SAP was used to generate finance and accounting reports and record final transactions. Other historical information such as leads, assessments, and appraisals were not recorded. Sales advisers and other front-line employees had to fill out paper forms and submit them to an administrator, who handled the encoding.
To meet these challenges, the company ‘s new solution had to integrate end-to-end, so all three systems could talk to each other. “First, we have to prepare our organization to change from manual to digital operations so that we could maximize our investment,” Fischer explains. “Second, we need to educate the market to try our new digital platform. The most important thing, then, is if customers can give us input on how we can improve in the future. We want to engage our customers so we can transform the process into something that completely meets their needs.”
After extensive research, Fischer and his team agreed that Technosoft’s Yana Dealer Management System (Yana DMS), built on Dynamics 365, was the best choice. “We saw that Microsoft was the best solution for our needs, especially the cloud services and applications for operations that can be integrated with our front end. We’re the first pre-owned car dealer in Indonesia that’s using all the modules of Yana DMS,” says Fischer. Technosoft also provided training for mobil88 employees to prepare the organization for the change.
Focusing on customer needs
With mobil88’s new system, customers who want to sell their vehicles can use the platform to upload information and set up a meeting with an assessor, who gives them the best price for their cars. Buyers can browse through 360-degree views of available cars in real time. They can also easily reserve the car they’re interested in. “Updates are automated because what’s key for us is information in real time,” says Fischer. “If cars are sold, they’re delisted on the site. If appointments are made to see cars, customers are informed about the cars’ respective locations. It’s easier for us to provide excellent service when data on the website is accurate,” he adds.
Customers must register before uploading documents or making reservations, which allows mobil88 to do follow-up calls and make promotional offers. The registration process not only provides the company with valuable leads, it also helps build mobil88’s database, which is analyzed by upper management. “Today, we have more complete data to better serve our customers. We have historical information as well, knowing if a transaction went through to help our customers with next steps,” says Fischer.
Working smarter and faster
According to Fischer, many of the company’s manual business processes have been eliminated. “The paperwork sometimes got really messy. Or we’d have back-and-forth phone conversations that sometimes became disputes. With our new system, everything is recorded. Also, all users can input data themselves rather than have the administrator do it. This saves man hours, makes both the front line and back office more productive, and keeps the data up to date. Our customers feel in control,” he explains.
He notes that they have been monitoring the lead time needed for reconditioning, a process that involves making needed repairs and preparations prior to displaying the vehicle. “Since we implemented the Dynamics 365 solution, there has been a 20 percent decrease in the time needed for reconditioning.”
The head office has so far been happy with the results. “Acquiring data used to be a difficult and time-consuming task. We could only extract data once a month. According to our colleagues in the head office, now that we’re using Dynamics 365, analyzing data is easier, faster, and more accurate. They can use dashboards to increase productivity and measure the lead time for all our processes, and they can see the data on a daily basis.”
Doing more for customers
The journey has been a learning experience. “I see two important things I learned from the implementation,” Fischer muses. “Digital transformation requires an internal change in mindset and behavior. With a clean and organized structure, the transition can run smoothly. All team members need to understand their individual roles and the changes that have to be made. The other point that’s critical is to know the timeline for development and implementation.”
Ultimately, the company wants customers to have the confidence to make their car purchase online. “Most people have to see the car first before making a purchase. But we believe that if we can assure them that the car they’re buying is in excellent condition, they will make their purchases online. We can even have the cars delivered.”
The recent solution’s success has inspired the mobil88 team to look to other possibilities. “We are planning to conduct a 100-day evaluation to improve more of what we have now. Because of Dynamics 365, we have a lot more data. We need to think about how to process it to understand our customers better and create valuable products and services for them,” Fischer says.
“We saw that Microsoft was the best solution suitable for our needs, especially the cloud services and applications for operations that can be connected to our front end,” he concludes.
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