Using your CRM to its full potential will enhance your ROI, but there is a strategy behind those increased profits.
The CRM is the most under-used software in the automotive industry.
That is according to PBS Systems CRM Consultant Jeremy Hensel who, in an interview with Canadian auto dealer, described the shift from dealerships relying on inherent customer behaviours, to a now more personalized experience that requires reaching out to consumers for regular servicing visits.
“Because everything is now personalized, based on your driving habits and your buying habits, dealers are realizing they can’t just sit back and wait for people to come in,” said Hensel. “Everyone goes to McDonald’s, but there’s still a McDonald’s billboard everywhere you go. There always needs to be a top-of-mind awareness.”
“The reason Google and Facebook are valued so much is because they have all the data on all the users that use it. And essentially that’s what I try to stress to my dealership.”
— Jeremy Hensel, PBS Systems CRM Consultant
Many dealerships have been promoting their services and special offers during the pandemic in some form or another, but how many have been keeping it all in their CRM—inbound and outbound?
Hensel’s argument is that, since dealerships are aware of how customers are reacting within their store, and because no two customers are the same, they can better and more proactively market to consumers through their CRM.
For example, PBS Systems released a new chat manager in the spring where all texting and emailing can be done within the CRM, both internally and externally, and everyone can see which messages are going back and forth from the customer and their staff.
Roadster’s third Dealer Impact Study with the National Automobile Dealers Association (NADA) on digital retailing use in dealerships, released May 2021, revealed that text and chat are gaining traction on phone and email as the dominant preference for remote interactions among consumers—and particularly those shopping for a vehicle online (45 per cent chat versus 39 per cent text).
It also found that only 20 per cent of inbound chats are engaged in meaningful conversations, which can lead to missed opportunities.
“That’s how people are communicating in their real lives, and something we’re constantly trying to mirror both within the dealership for their own staff and for dealerships to communicate with their people,” said Hensel. “Because ultimately, everyone’s going to read a text right away.”
Using a cloud-based CRM should present opportunities for dealerships, bringing them to the surface without forcing the retailer to dig through massive amounts of data.
Finding new, innovative ways to mirror cell phone habits is a big thing, according to Hensel. His advice around how dealers use their CRM is to “stay in and watch it”—put a dedicated staff on the CRM post to watch what is going in and out of it, and to keep all the data together.
This includes data from sales representatives, the receptionist, service advisors, and others. And it involves using the data, including the analytics and going over the KPIs, to make sure the information is accurate and that it remains accurate as new leads come in.
“The reason Google and Facebook are valued so much is because they have all the data on all the users that use it. And essentially that’s what I try to stress to my dealership,” said Hensel. “Do you have the same power? All the data on all of your customers? And if so, why not use it the same way Facebook and Google does?”
Manage the rotation
The idea of having a dedicated employee to focus on your CRM system is one that is echoed by Vicky Goupil, Associate Managing Director of Torque Management in Quebec.
She sees the need for a lead manager (or dispatcher) as an important consideration when looking at the number of leads coming into the dealership, compared to the pre-social boom.
“For several years now, when we receive internet leads, we wanted to close at 10-15 per cent.” said Goupil. “But the issue with social networks, and especially Facebook, is that we receive more than 100 leads per month—we receive 400, 500 or 600. And that 15 per cent closing? Forget it, there’s no more 15 per cent.”
That number, she said, which is more of an average for small- and medium-size dealerships in Quebec, now falls to four or five per cent because automotive retailers are inundated with leads.
In fact, some dealerships may recognize the challenge of one, not having enough employees to manage the issue and two, ensuring your dedicated employee is motivated enough to deal with the five per cent closing rate. It would be like saying five per cent of your job works really well, but the other 95 per cent does not.
“Within that reality, you have to remain motivated enough to sell that 5 per cent,” said Goupil. “Right now, dealers are receiving an incredible amount of leads and they’re not necessarily selling more vehicles, so they have the same number of staff as before.”
The answer to this growing trend is not only to assign someone to deal with these leads, but to involve more people. Dealers need someone that can use the CRM, that has been trained on it, and that is comfortable with it. And then that person will inevitably need to share the incoming leads, because there are just too many.
“There are dealers that say they receive only 120 leads. In fact, you measure 120 leads — per month,” said Goupil. “You need staff that use the CRM, that are trained for it. And you need more than one person, taking turns, so they can stay motivated.”
Torque Management’s CRM software was designed for the Quebec automotive market and allows all the systems (example: lead management, evaluation, CRM) to connect with each other. That includes its recent renewal tool that is directly linked to its CRM.
High quality cloud-based CRMs that allow various systems to speak to one another are gaining traction in the industry by adding greater efficiency to the user, or rather, users.
Benefits of a cloud-based CRM
According to Jane Webb, VP Product Management and Service at Quorum, a great CRM connects dealers with the right customer, at the right time, with the right message. For her, automation and task management fueled by strong data mining practices ensures dealers get the most out of their CRM.
“Furthermore, a good CRM should seamlessly balance automation and personal interaction to maximize connection rates with consumers,” said Webb, adding that “the CRM is key to delivering a consumer-friendly digital experience.”
Using a cloud-based CRM should present opportunities for dealerships, bringing them to the surface without forcing the retailer to dig through massive amounts of data.
For Maury Marks, President and CEO at Quorum, dealers can learn more about customer purchasing habits, servicing requirements, and automatically anticipate a customer’s next interaction when harnessing the power of the data collected by a quality CRM solution. This allows employees to focus their efforts in more meaningful ways to help capture more business.
“Utilizing the metrics within the CRM, management leverages better business intelligence to make better business decisions,” said Marks.
Many dealerships do use a cloud-based CRM, as these systems deliver on key activities remotely in an ever more virtual world. But not everyone has adopted this approach or upgraded their system to the cloud. Marks believes one of the reasons dealers are wary of adopting a cloud-based system is related to concerns over security and data retention during a disaster.
He said cloud-based CRM providers are responsible for protecting that confidential information, since their business depends on it. For example, Quorum’s system includes automated backup policies and very specific data recovery plans. Dealers who are uncertain about using a new cloud-based CRM should ensure the provider’s measures are transparent and clearly explained.
In a world where dealers may be overwhelmed by the amount of software solutions they need to run their business, it is worth noting that high-quality cloud-based CRM solutions are meant to provide greater compatibility with other software applications, which should allow for an easier exchange of information.
For example, Quorum’s MyDeal digital retailing solution seamlessly integrates with its Desking and Sales CRM so that the finance and lease payments that a customer gets online will match the numbers provided by the dealership’s sales staff.
“Overall, understanding the capabilities of a good CRM solution, and tapping into the ease of use and features that drive business intelligence, leads to effective decision-making,” said Marks.
