Success Story
Dealernet’s Focus Leads to 70% Increase in Organic Growth in Just 3 Years
Years in Business: 33
Acquired: 2020
Headquarters: Brazil
A Legacy Transforming
A Strong Foundation
Dealernet is a leading Brazil-based dealer management software company with nearly 2,000 rooftops and a 33% market share. With over 150 employees spread across 17 states of Brazil, the company has established itself as a crucial player in the automotive industry.
Acquisition and New Leadership
Founded by Regis Braga and Paulo Monteiro, Dealernet was built on a deep understanding of the challenges facing dealerships across Brazil. As the chosen solution for FIAT dealers in Brazil, the company experienced steady growth, later expanding to include the Hyundai and the CAOA dealership networks, the exclusive importer of Hyundai products in Brazil.
In January 2020, the founders decided to step down and sell the business to Volaris Group. This transition marked a significant change for Dealernet, which now needed new leadership to guide it through the height of the COVID-19 pandemic and beyond. They found a successor in Sergio Rodrigues, with a 35-year history in the automotive market, including stints at both FIAT and Hyundai, was appointed as the new General Manager.
Needing Business Insights to Grow
For Sergio, taking the helm during a global pandemic was no small feat. He was entering a company with a strong, familial culture but noticed a critical gap in the business processes. “Most of the analysis and evaluations were carried out qualitatively and rarely quantitatively, which generally did not lead to the best overall result for the company,” said Sergio Rodrigues.
The Evolution
Focusing In
Sergio and his team knew they had to prioritize their efforts to achieve meaningful results. “We had many items to change, correct, improve, raise awareness, teach, and implement, but we chose not to do everything at once. Rather, we focused on actions that would produce results year after year, even knowing that we still had other important things that needed to be done,” Sergio explained.
The team decided to prioritize two main fronts:
- Focus on organic growth, increasing revenues while reducing operating expenses.
- Structure an internal system to help with customer care and sales.
From Plan to Fruition
Focusing on organic growth meant building stronger ties with customers, renegotiating a particularly unfavorable agreement that limited profitability, and minimizing attrition risk through better-established customer care processes. This became a company mantra, with all employees undertaking the challenge and committing to executing the plans.
“It will not work if everyone in the company is not imbued with this need and importance; hence we define work on specific projects, and the volatility of the Brazilian market makes us correct plans daily,” Sergio emphasized.
Dealernet’s leaders met with customers, reassuring them that the acquisition placed Dealernet in a stronger financial and operational position, which built credibility and strengthened relationships. They re-established a more agreeable contract with a key account, benefiting both parties in the long term. Finally, they implemented JIRA, providing Customer Care with a single-source solution and a reliable CRM sales funnel.
The Results
The changes had a profound impact, resulting in a 70% increase in organic growth in the three years of operating as a Volaris company.
“The arrival of Volaris gave rise to the cultural change necessary to break paradigms and status quo, restructuring the company and putting an end to comfort zones,” Sergio noted.
As expressed by the former owners, Braga and Monteiro, this transformation was only possible with the support and guidance of Volaris Group.
The Future
Looking ahead to 2024 and beyond, Dealernet continues to push for improvement. “Our people know that we don’t like ‘average.’ We prefer to be ‘outstanding.’ But this is an extremely challenging task, and you can never be satisfied; you always must want more, otherwise you become obsolete ,” Sergio concluded.
Dealernet’s journey under the guidance of Volaris Group highlights the power of strategic transformation and focused leadership, ensuring a legacy continues to evolve and thrive in the competitive automotive market.
