Some of the most popular workshops and discussions at NADA this year focused on enhanced CRM tools and processes. With all the technical advances, however, the art of good customer service still lies in the hands of people.
The CRM Website
In his workshop, “Technology Based Sales and Marketing,” automotive sales trainer and consultant, Jim Ziegler of Ziegler Supersystems, Inc., stressed the importance for dealers to “get in the game” and use the Internet to market to and maintain relationships with customers. Ziegler, known for his hard-driving “close the sale” training tactics, stressed how dealerships today need at least one website dedicated to customer maintenance and retention. This website should have the ability to capture opt-in (voluntary) information from customers and to create an email database. It should also be able to generate sequential emails over a period of time to maintain ongoing contact with customers.
Through this CRM site, the dealership can eventually build a database that “holds” customers’ information. With database marketing, Ziegler says, dealers maintain top of mind awareness with customers by sending newsletters, emails about the latest rebates and incentives, service department appointments, and more. Because consumers use both the Internet and telephone to communicate with dealers, Ziegler suggests that dealerships have an integrated business communication center to offer a seamless response to all customer inquiries. Because half of a dealership’s service department customers did not actually buy from the dealership, maintaining customer data and good service is as important with new vehicle customers as service customers.
The Importance of CRM in Used Car Sales
Kevin Root, vice president and general manager of Cobalt’s consulting and training arm Dealer Advisory Services (also featured in the January 2004 Internet Sales Trainers issue of the Dealix Dealer Newsletter), conducted a workshop entitled, “Selling Used Cars on the Internet.”
“It can be three-times more difficult to sell used cars on the Internet than new because dealers must match single item, or unique vehicles, with customer needs,” says Root. So, how leads are managed and having a solid CRM process in place can be an even more critical factor in online used car sales. Maintaining a database of customers along with their specific vehicle preferences can mean moving used cars off the lot much faster.
Because front-end grosses can be lower with Internet sales, Root suggests offering “value bundles.” “By this, I mean, three-to-four tangible items of value to the customer,” says Root. “For instance: a service loaner for life, free oil changes, at-cost discounts, etc., that make the customer feel like they’re getting more for the price they’re quoted. This is what we call ‘value-based selling’ and we offer these value items only to Internet customers.”
CRM Does Not End with Technology: the Power Is in People
In some ways, human skills have not kept pace with advanced CRM technologies. Some CRM technology providers complain that their tools are simply not being used by dealers to their full potential. Many dealers are so sales focused that they don’t have the time and resources to dedicate to full-scale CRM programs.
Companies like eLead CRM have found a niche by enabling dealerships to outsource all or part of their CRM services. For instance, by integrating call centers with CRM tools, eLead helps dealers to maintain the personal relationships with their customers. Reuben Muinos, formerly with Galpin Ford and now eLead’s Internet lead management director, says, “With Internet customers, building and maintaining the relationship is essential. An important part of customer relationship management involves calling the customers, staying in touch with them. Dealers need to focus on selling. Outsourcing can be the answer. However they do it, in today’s market place, the dealers who are the most diligent about being in contact with their customers will win them over.”
