Customers are creating a lot of new traffic within the automotive industry, and for a number of reasons. They’re increasingly shifting from direct purchase to leasing cars, trucks, and other vehicles. What’s driving the driver? In large part, it’s about cash flow. Furthermore, people and businesses may not have full funds in pocket. In many cases, they see more security in conservative spending. As a result, they spend less up front on one item or service. They can use that money for other things they need and want.
For example Car Lease ERP Software. It is a recent trend that the demand for cars as a product is replaced by demand for transportation services. Simply put, they want the ability to establish a transportation budget for leasing services that aren’t limited to cars.
So business is booming for many car lease companies. But it’s not enough to hold out well-packaged but fairly rigid offerings. No matter how many options you can provide for a car. Today, everything’s about the customer journey and whether you can accommodate new trends that meet their needs for choice, simplicity, best pricing and service…that’s daunting. Car leasing is packed with complexity. And furthermore they want this strictly orchestrated across back, middle, and front offices. Companies find that car lease ERP software designed to manage all this can’t fold in additional complexity that enhances customer choice, purchasing power, and front-end experience. Not to mention “keeping it all simple.”
There is a solution—there always is. Let’s set some context for current options for car leasing. And also how can you be more customer-centric and ready to accommodate diversification.
A brief look at approaches to care leasing: Financial and Fully Operational
Financial leasing
Set the framework and standard within the automotive industry. A long-term agreement makes the customer the owner of the car(s), whether they’re consumers or businesses. While the company or dealer handling the lease takes care of the “under the hood” complexity mentioned above, the customer as owner is required to handle insurance, taxes, registration, some or all service and maintenance, and claim the car as an asset. In most cases there’s an option to purchase the vehicle at the end of the lease period. Customers do benefit—leasing incentives open up makes and models they otherwise couldn’t afford. They can opt in or out of purchasing at end of the lease, etc. On the other hand, they’re de facto owners during the car lease period, juggling responsibilities and bills from multiple sources.
Fully operational leasing
It is emerging as a choice that’s more in in line with the emerging trend for transportation as a service. In this scenario, the long-term lease is based on a fixed price per month that bundles in service, taxes, insurance. The leasing company organizes and delivers all financials, makes sure the car is properly serviced, and retains full ownership rights. The appeal here? Everything’s packaged in the single clean bundle that makes life easy for customers—and while they must respect terms of agreement, they don’t bear the responsibilities of ownership. In a world where people expect all-in-one bundles, where products follow the mindset of “everyday a new app,” fully operational leasing reflects a groundbreaking trend.
Both approaches have appeal for different types of customers. Both need to ensure myriad requirements are in place to ensure smooth lease management. How can it help you simplify and adapt entrenched business models to meet the moving target of customer expectations?
The right car lease ERP software is the solution—here’s what you’ll want it to do
It’ clear that profitable success for car leasing now depends on whether you can offer customers choice, simplicity, and competitive pricing. Completely revamping your business practices and processes is a pretty sure bet for failure. But with the right car lease ERP software, you can adapt current practices and gain flexibility to move with new trends. Below, you’ll find highlights for what you’ll want your car lease to do.
Connect back-to-front via an open platform
You’ll want your car lease ERP software to fit seamlessly with your ERP platform and customer-facing websites, connecting users, operations, and communications across back, middle, and front offices. In addition everyone needs to view and work with information drawn from system-wide, real-time data and updates.
Keep things simple but accurate with built-in integration
Your car lease ERP software should serve as a back-office solution embedded in ERP, supporting all fixed asset financials, purchase, sales, service, fuel management, and more. In addition you’ll want to give CRM users and website customers to quickly access role-based capabilities and information that come directly from the back office solution.
Move with trends
Car leasing demands tight structure, which is why base integration should be locked and loaded, but you also need the ability to keep-pace with the latest and most effective ways to lease across multiple or single channels. So your car lease ERP software should also let you create the integrations and leasing variations you need. We’re talking here about flexibility that minimizes custom programming and extra add-ons. Your goal is to adapt your ways of working and diversify offerings and customer experience without disrupting operations and communications. This is another key aspect of a solution that works with an open ERP platform.
Minimize human intervention with end-to-end workflows
“Action management” is the buzzword here. It triggers workflow that takes care of leasing processes and document management across channels and locations—no more manual intervention and ad hoc communications. Whether a rep is working with a CRM solution to initiate a lease or accountants are deep in asset management, there should be no gaps that lead to errors and delays.
Orchestrate complex requirements with ease
Your best bet is a standard solution can be tailored to specific, complicated requirements without compromising performance. That includes automating all financial and operational leasing and documentation, plus calculation, services, replacement, and selling. As a result, your system should take the burden off employees for handling complex/multi-level lease agreements, engagements with third parties and government, keeping pace with regulations and compliance—you name it.
Get the secret to service
Customers are impatient, and even if your company spans multiple channels and locations, you should never need to ask twice for the same information. For example, if a customer is in your system, a rep should be able to pull up a name and see a full customer record.
Effortlessly keep all stakeholders informed
Hands off—your car lease ERP software needs to cover all internal and external communications, agreements, invoicing, and more. After a setup configured to your requirements, the solution should auto-send and monitors all communications to reps, service techs, third-parties, customers, and other stakeholders. This may be key to helping customers manage financial leases—options could range from sending reminders and alerts to bundling their multi-source bills and documents into a single invoice—they’re still responsible, but they’ll appreciate that you’re reducing their workload.
All these capabilities should offer a strong foundation for seguing into “transportation as a service” that is inevitably going to include other kinds of vehicles—motorcycles, bikes, trailers, etc. The pressure’s on to go beyond traditional approaches to leasing and offer customers innovative choices and options. You can make it happen. As we said, there’s always a solution. We do encourage you to consider and explore DynaLease for Dynamics AX as an option. To learn more, contact me at mtoppers@to-increase.com and I’ll be happy to set up a conversation about your needs and what our car lease ERP software can offer you.
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