CRM Dead? Not a Chance

Cliff Banks September 16th, 2009

Recently, I’ve heard several comments alluding to the fact that CRM (customer-relationship management) is dead, or at least is at a point where people are tired of talking about it. There is a notion among many dealers that vendors have over-promised and underdelivered. It might be dealers are expecting too much.

Ask for a definition of CRM and you’ll get 10 different answers. The problem is, automotive retail is a complicated business with a lot of moving parts. Add to that, dealers will have different goals or objectives for their CRM initiatives, and that makes measuring the return on investment difficult.

In the store, it’s easy to get bogged down in the details of the process, and if there isn’t a well-defined goal, dealership personnel get CRM-fatigue. Before long, you’re writing a check for a solution that sits on the shelf that never gets used.

Enough of the problems, what are some solutions? It’s not giving up on CRM — now, more thn ever, you need to find ways to drive both sales and service traffic. There are several simple solutions.

Here are some creative things dealers have told me they have done the last 12 months that have helped business. Nothing earth shattering — nevertheless, there may be some nuggets for you.

First, market to customers in your database. You already have the relationship with them. Offer something of real value on the service side. You can generate a ton of service traffic and repair orders with simple campaigns marketing to folks that haven’t been back to your store within the last year.

To do that you should find a solution that integrates easily with your dealer-management system. Being able to pull data from your DMS and integrate it with information in your CRM tool is invaluable.

Many of you are looking for used-vehicle inventory. CRM can help you do that. Create a list of vehicles you need, and then send targeted offers to people in your database that have those vehicles. Make it a special invitation, not a generic direct mail piece.

I know Cash for Clunkers probably is a dirty word right now in your stores. It was an intense program while it lasted and nobody wants to even mention the term now. But there has to be a way to continue leveraging those sales, and even the people who didn’t qualify who left the store without buying.

Offer a special service incentive for people who bought cars using the the program. Some dealers are planning a Cash for Clunkers after party a few months from now to generate service business. It doesn’t have to be a Clunkers party — it could be a party or picnic celebrating anything.

Tie into the local sports teams — whether it’s college, professional or high school. For example, offer free oil changes or car washes if the football scores 40 points. You can go in so many directions with this.

All of these things can be defined as CRM. The point is, be creative and aggressive now. Business is there, but it needs prodding.

Good luck, and if your store is doing something unique that is working, I’d love to hear about it.

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Related Topics: Sales, Marketing, Advertising, Leadership, Best Practices, Internet, Management, Fixed Operations, General

6 Comments to “CRM Dead? Not a Chance”

1. David Ruggles Says:
   

   September 16th, 2009 at 11:28 am

   CRM dead? The only problem with CRM is a lack of execution and imagination on the part of dealers. I say this with the perspective of having been the original Autobase rep back when it was a DOS program.

   It is true that many CRM programs are so comprehensive that dealer staff is overwhelmed and fails to fully capitalize on the tool their dealer has invested in.

   I introduced CRM in Japan in the mid 1990’s. Recently a wind shift brought a massive amount of Chinese pollutants into the Japanese atmosphere. Industrial fallout fell on any car parked outside in Japan. My client crafted an email to their customer database of customers and offered a free car wash to those owners. It brought instant traffic into the service departments and generated incredible good will and free publicity for the dealership group.

   I am amazed at the number of dealerships that don’t even ask for email addresses when obtaining contact information from customers who physically visit the dealership as either potential vehicle buyers or service department customers. I have zero sympathy for whatever plight these dealers experience regardless of the economic climate.

   BTW Cliff, how did you escape the elevator?

2. Mike Bowers Says:
   

   September 16th, 2009 at 11:32 am

   I think dealers would be wise to engage in some mystery shopping to find out what their customers are seeing as a result of the dealer’s CRM investment.

   The next time someone from a dealership contacts me to follow up on a service visit will be the first time, ever.

   And yet I know that my dealer, who owns 30+ stores, uses one of the big CRM vendors. When I bought my car a few years ago, I was given a package of member benefits and a “frequent customer” card. The cashier at the store now looks at the card like she has never seen one before. E-mailand direct mail contact from the dealership in the last 12 months has been zero.

   I’m due for a new car and they should be all over me.

   Every one I speak with about contacts from their dealership says the same thing. There is no contact.

   I’m a fan of CRM. I like it that my grocery store and pharmacy know how much money I spend with them and offer me special discounts and a free turkey at Thanksgiving. I like it that airlines know how often I fly with them.

   Dealership CRM is supposed to be an automated process yet it seems that dealership employees are somehow thwarting the process and short-circuiting the dealer’s intentions.

3. Wendi Venable Says:
   

   September 16th, 2009 at 1:40 pm

   I couldnt agree more with you Mike! The problem when all the layers are peelesd back, are not the CRMs capabilities or limitations, it is our lack of attention to the “management” of our people consistently and objectively WHILE THEY ARE REQUIRED TO USE OUR CRM INVESTMENT!
   Dealers quite often invest in “tools” to streamline and improve processes in their store (i.e. CRM’s) and then expect “auto pilot” to work as thwir management tool. People who the CRM’s are intented for- are rarely if ever held accountable by mid management (the people who ARENT writing the monthly payment for the CRM) to consistently use the system.
   I was with one of the leading CRM providers for 4 years and time and time again when we would send a trainer into review/retrain the store we would come across those “performers” who were allowed to slack when it came to using the CRM tool because he or she “consistently sold”…..this started the loss of credibility in management AND the CRM in the store.
   What most people failed to realize was that the “top performers” who’s toes were not held to the fire as it related to use of the CRM tool, were also usually the people blowing through the most opportunities in order to reach their sales numbers. So really- they weren’t the top performers management percieved them to be at all!
   THE KET TO OVERCOMING CRM COMPLACENCY: MANAGE THE PEOPLE WHO MANAGE THE LEADS! Period!-when that is consistently done in a store, the tool will be used and the results the dealer bought into the CRM for in the first place will be realized.
   Thats my story and Im stickin to it!

4. Bill McCalla Says:
   

   September 16th, 2009 at 8:52 pm

   As long as there are lemon laws, this is proof CRM is dead. CRM will stay dead unless the whole customer interaction chain from dealer contact (receptionist, service desk, parts desk, sales desk, finance) to the warranty folks to the assembly plant and corporate executive management can empathize. In 1983 I had an electronic engine module go bad on a holiday vacation weekend. After a 60 mile tow, I was given a huge break on the replacement part price, although my warranty did not cover it. (one plus). Within weeks I got a recall on same module. Local dealer says bring it in and he’ll swap it out anyway no charge, because he’s not sure I got the post recall version. (another plus). I wrote a letter to corporate and included my reduced price receipt and tow charge. I was fully reimbursed (yet another big plus). Over the next 20 years, I then proceeded to buy another 8 cars of the same brand from 6 different dealerships and all were positive experiences. I will probably buy many more of the same brand, even if I never get a free car wash. CRM management is loyalty management. When you operate like there are other fish in the sea, you will never have CRM.

5. Guy Manasse Says:
   

   September 17th, 2009 at 12:40 am

   Mike and Wendi are so right on. My partner and I are taking a tour the last 2 months all over the country and touching Dealers. The two biggest things we are finding is the lack of follow-up from management and training. The old saying “you cannot expect what you do not inspect” Management needs to simplify there process which long term gives better results from staff and returns from customer/clients. The other huge problem is because of Dealership turnover the original process gets lost in translation from newer to newer employees. We stress to Dealers to let the CRM provider train and certify all new employees as originally intended so the process stays the same and consistent. We have Dealers put that requirement for new hires in there handbook. CRM was intended to take a lot of process out of people’s hands and automate. Dealers get smarter and then make it harder. Utilize the expertise of the CRM companies that provide consulting or outside companies that are in stores across the country that can provide you best practices that have worked in other areas. Money well spent

6. Jason Johnson Says:
   

   September 17th, 2009 at 11:07 pm

   Excellent article, Cliff. As the above folks pointed out, it takes effort on both the dealer and vendor to make CRM work. CRM does not work in a vacuum. I think the mistake most dealerships make is that they try to implement too much, too soon, and turn their entire organization upside down in a day. It takes a well laid plan over the course of months, not days, to reap the benefits even the most rudimentary system can offer.

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