Car Dealership Finds RFID the Key to Increased Sales

When he hears a "happy tone," McGinn says, he can open the box and access the key. A transceiver inside the box transmits the vehicle identification, its place in the lot, identification of the salesperson, the time and other related information via a Wi-Fi connection to one of four Firetide wireless mesh network nodes. The nodes feed the data wirelessly to an Internet-based application.

To access the application, Bob Lewis Automotive's management team can log onto a password-protected Web site set up by Performance Analytics and then track not only who has a vehicle and how long he has it, but also how often a vehicle is test-driven, which vehicles are not being test-driven, and how often each salesperson is taking vehicles on test-drives. At the end of the day, Bob Lewis Automotive can set the system to deny access to all of the vehicle key boxes. If an employee attempts to open a key box after hours, the system records who that employee is and when he attempted entry.

The system uses RFID-enabled car keys and ID cards.

"This system gives us tons of information about what's going on with our inventory," Steve Lewis says. The dealership uses the system on used cars, which experience the most test-drives. He says he uses the information to determine what cars are sitting on the lot without test-drives, and what vehicles are test-driven frequently but not purchased. Most importantly, he says, it encourages sales by making test-drives more convenient for sales people. "If you're a dealership and the salesmen are inconvenienced by getting keys for the vehicles, it's hurting your sales," he says. "I have not doubt about that."

Previously, when shifting from a manual lock box on vehicles to requiring salespeople to retrieve keys in the office, Lewis says, he saw a 10 percent reduction in sales created by the inconvenience of obtaining car keys inside. He intends to expand the KeyWhere system to all of his company's dealerships, although they have not set a date for that expansion. The monthly cost for the KeyWhere system access and support is $1,799.