Nationwide Study Reveals Dealership Networks Are Too Slow

Today DealerIT is releasing the results of a first-of-its-kind survey of network speeds in retail automotive dealerships conducted in July 2020. Utilizing more than 2,200 testing devices across 1,132 unique sites, DealerIT directed each to perform a network speed test at specified times to paint a fully detailed picture of network performance under multiple circumstances.

This study was conducted because today’s dealerships rely on bandwidth and a reliable network infrastructure in order to sell and service automobiles more than they ever have. With salespeople utilizing video walkarounds and using Facetime to interact with their customers and dealerships relying on CRM and digital retailing tools, internet speed has become vitally important. Even service writers and technicians are taxing dealership networks with virtual communication and video solutions. Dealership bandwidth issues will be even more amplified as the connected car becomes more prominent.

The results of this nationwide test consistently demonstrate that most dealerships studied do not possess a network capable of achieving speed that is sufficient to adequately support the customer-facing and internal technology tools required to conduct business in today’s connected climate.

This determination is achieved using three key measurements (defined below) – upload speed, ping and download speed – with a minimum acceptable threshold determined for each based on DealerIT’s understanding of the complex interdependencies of a dealership network.

The results represent the average of tests conducted three times daily on Monday, Wednesday, Friday and Saturday of a given week. To ensure results were not skewed by specific events (like a month-end closeout) a week in the middle of the month was selected. Neither the day of the week or the time of day produced significant variation in the outcome of the testing. Speeds were consistently poor.

In terms of upload speed, 59% of all dealerships measured below the “good” mark of 50 Megabits per second. Ping speeds, determined to be adequate at 20ms or less, were even more concerning with barely 40% of all dealerships meeting or exceeding the benchmark. Download speed was most alarming. Less than 1% of all tested networks (only 6 dealerships) achieved a desired speed of 100 Megabits per second or higher.

Compare this to the speed of your network at home.  Would you tolerate a slow, choppy connection while you’re binging Netflix? Of course not. Then how is a slow connection acceptable for your business?

What is upload speed?
Upload speed is the speed that a given device on your network can transfer or send information to the network. Think of all the data you transmit. Credit applications, deal data to your cloud based DMS, and now those video walkarounds you are sending sales and service customers. When your upload speeds are slow, you are making someone wait. Waiting creates a negative customer experience.

What is download speed?
Download speed is the speed that information on the internet is transferred to your computer. Watching a virtual auction to get the perfect pre-owned car for your market? Your download speed could cause you to miss your chance to bid. Working with your finance partner to discuss add-on options and pulling information from their website? Pulling a report from your DMS? If these daily tasks are frustratingly slow, it’s more likely your network download speed than the resource you are working with.

What is ping?
Ping is a measurement of how long a small data packet from your computer takes to reach a destination on the internet and come back. Sometimes referred to as latency, this test can be considered a practical example of the combined impact of your upload and download speeds. The speed of anything you do on the internet is impacted by your ping speed. If a website is slow to load or an email takes forever to send, your ping speed is out of line illustrating the degree to which your overall network performance is taxed by all of the other activity occurring on it.

How’s your network?
The data suggests your dealership network is not nearly as fast as it needs to be. Remember, more stress is being placed on it every day. Every technology tool you are adding to improve the customer experience and simplify your team’s workflows and processes is likely having the opposite effect. How often have you said, “this website is so slow” or “It takes forever to do anything in our CRM.”?  In most cases, we blame the technology provider when a resource is not working properly but it may not be their fault.  If the foundation of your dealership internet speed and network infrastructure is not solid, it’s like building a house in the sand.

With less than 1% of all dealers utilizing networks that are fast enough to support their operations, there is obviously a lot of shaky technology infrastructure out there. To see how your network measures up and receive more information on how your dealership’s network performs, click here.