As we look to tell the stories about people and the products that support auto dealerships, Digital Dealer is shining the spotlight on companies that help dealers do their job more effectively.
We recently interviewed Ujj Nath, CEO of myKaarma, who reflected on his career and offers his insights into the ever-evolving automotive technology landscape. Nath discussed his journey as an outsider in the automotive industry, helping dealerships communicate with their customers and why discipline is a key to his success.
Digital Dealer: What was your first job in the automotive industry, and what did it teach you?
Ujj Nath, CEO of myKaarma: My entry into the automotive industry was indirect. As the founder of an IT consulting firm, our first significant project was redesigning American Honda Motor Company’s distribution system. We implemented a logistics model inspired by FedEx and UPS, using research optimization to efficiently distribute 100,000 cars to 1,200 dealers. This experience taught me two crucial lessons:
This project launched my career in the automotive industry by demonstrating the value of applying cross-industry solutions to complex logistical challenges.
Digital Dealer: What are your proudest accomplishments in the industry?
Nath: Developing and implementing a customer interaction management software called myKaarma. The success of myKaarma is evident in its adoption by 2,000 dealers, resulting in higher customer loyalty, increased average repair order value and improved customer satisfaction. This innovation has fundamentally transformed the automotive service experience, proving that a customer-centric approach can yield significant benefits for both consumers and retailers.
Digital Dealer: Please tell us about your core offerings, any new products or features, and how automotive dealerships are best leveraging those.
Nath: Our core offering is a comprehensive Service Department Management System that enhances communication between dealerships and customers throughout the entire service process. Some of the key features include:
Dealerships are leveraging our platform to increase transparency in the service process, improve customer convenience and enhance relevance of communications at each stage.
Digital Dealer: What is a key innovations you brought to market this year?
Nath: I’m most excited about our new product, ServiceConnect. This innovative follow-up platform builds on our existing communications system and offers several key advantages. It’s a game-changer for both small and large dealership groups, significantly enhancing customer engagement and follow-up effectiveness in the automotive service industry.
Digital Dealer: Can you highlight any recent innovations or strategies that set your company apart in the market?
Nath: Two key innovations set us apart. Our Intelligent Communications Hub in ServiceConnect, a patented system allowing multiple call center agents to manage text, voice, and email communications efficiently. We also have our BusinessConnect feature, which enables seamless internal-to-external communication. These innovations focus on improving cross-boundary communications, which we believe is crucial for developing seamless and efficient dealership operations while maximizing customer satisfaction.
Digital Dealer: What trends do you think will have a significant impact on the automotive industry in the coming years?
Nath: Several key trends are poised to significantly impact the automotive industry including:
Electric Vehicle (EV) Adoption: The rise of EVs is reducing service lane traffic due to lower maintenance requirements.
Declining Profit Margins: As pandemic-driven high margins on new car sales normalize, dealers need to find new revenue streams.
Increased Recall Frequency: More complex automotive technologies are leading to more frequent recalls.
Service Absorption Challenges: Dealers are struggling to maintain service absorption rates amid declining service visits.
Competition from Independent Service Providers: Vehicles beyond warranty periods are often serviced by independent shops.
To address these challenges, dealerships will need to focus on:
Digital Dealer: What do you enjoy most about your role, company, and/or the automotive industry?
Nath: Inspired by Toyota’s approach, we create high-impact products that are revolutionizing automotive service in the U.S. Our approach is like a marathon, requiring discipline, training, and pacing to complete the journey successfully. After 10 years and 2,000 dealers, we’re now competing with our third generation of Service Lane technology tools.
Digital Dealer: What values and principles drive your organization, and how do you ensure they are reflected in the day-to-day operations and interactions within the company?
Nath: Internally we have a culture document that outlines over a dozen values we hold dear. While I’d love to share all them with you, here are four that are critical to interacting with our customers:
Digital Dealer: What advice would you give to someone entering the field?
Nath: For someone entering the automotive retail technology field, embrace the motto: “Retail is about detail.”
Practice Genchi Genbutsu, the Japanese term, for “go and see for yourself”: Spend significant time observing dealership operations firsthand; immerse yourself in various roles: service advisors, shop foreman, technicians; and aim to understand the intricate workings of dealerships.
Develop a deep understanding of operations: recognize that initial observations only scratch the surface and continuously learn and expand your knowledge.
Build a mental model of dealership operations: use your detailed understanding to create a comprehensive view; and identify gaps and opportunities for improvement.
Apply your knowledge: develop products or solutions that address operational challenges; and focus on innovations that can enhance dealership efficiency.
Remember, gaining a thorough understanding of the industry takes time and dedication. Even after extensive observation, there’s always more to learn. This deep knowledge will ultimately enable you to identify opportunities and create valuable solutions for the automotive retail sector.
myKaarma is an exhibitor (Booth 405) at the 2024 Digital Dealer Conference and Expo (#DDCE2024)
*This article first appeared on Digital Dealer here.