Embracing New Digital Communications Tools Can Help Dealers Unlock the Full Potential of CRM Systems

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4 min read

In today’s fast-paced automotive retail sector, nearly every dealership utilizes a Customer Relationship Management (CRM) system to manage prospects and customers. These systems offer powerful capabilities that can elevate the customer experience. In line with the significant increase in digital shopping, consumers increasingly prefer engaging through the use of personalized and instant communication methods. In contrast, many dealerships still rely heavily on email marketing in their prospecting efforts. As consumer communication preferences evolve, so must our approach to CRM effectiveness.

To fully leverage CRM systems, ongoing training and adding new features and capabilities is essential. Without it, dealerships may risk underutilizing valuable tools and resources. To gain further insights to how CRMs have advanced in the last few years, we consulted Steve Roessler, Chief Evangelist at one of the leading industry providers of CRM systems, Drive Centric, who shared his thoughts on how CRM systems have evolved to enhance customer experiences.

“Customers are buying cars faster than ever, armed with information,” Roessler states. “When they’re ready to buy, they expect an exceptional and personal experience from their dealership. Our research tells us that 70% of customers make purchases within 4 days of having decided on the make, and model. Dealerships must focus on a clear engagement strategy rather than just database management. The CRM system is foundational but embracing immediate and exact communications through digital communications’ tools is critical; every customer should be responded to within 10 minutes.”

Dealers excelling in continuous year-over-year growth prioritize balancing customer retention and acquisition. Successful dealerships understand that vehicle sales follow from effective communications and a focus on customer satisfaction. By ensuring staff receive enhanced training on CRM systems and how to incorporate digital communications’ tools, dealerships can improve their performance—not only in sales but also in delivering positive, memorable customer experiences.

CRM: A Path to Acquiring and Retaining Customers

Customer acquisition is essential for dealership growth, and vehicle sales flow naturally from a strong acquisition strategy. CRM systems can help facilitate how dealerships manage sales and customer relationships by transitioning from short-term sales tactics to long-term engagement.

Let’s examine how CRM systems can enhance both customer acquisition and retention:

Customer Acquisition: The True Objective of CRM

In today’s competitive landscape, CRM systems are invaluable for nurturing leads and building lasting relationships. By tailoring interactions to specific customer journeys, dealerships can convert one-time buyers into loyal customers.

  1. Enhanced Accountability: CRM systems help dealerships monitor and track customer acquisition progress, ensuring every interaction nudges the customer closer to a decision.
  2. Data-Driven Insights: CRMs collect data on customer preferences and behaviors, allowing dealerships to refine their acquisition strategies.
  3. Optimized Processes: Automation of repetitive tasks frees up sales staff to focus on delivering exceptional customer experiences.
  4. Targeted Segmentation: CRMs enable dealerships to segment audiences, facilitating more personalized marketing strategies that resonate with potential customers.

Prioritizing Customer Satisfaction Over Vehicle Sales

Dealerships that focus on customer satisfaction create conditions for long-term success. Happy, loyal customers translate into sales. Here’s how CRM systems contribute to enhancing customer satisfaction:

  1. Seamless Transitions: CRMs maintain customer activity records, allowing sales teams to smoothly transition customers from online research to in-person visits.
  2. Personalized Interactions: Detailed customer profiles empower sales staff to tailor their approaches, fostering loyalty and ongoing purchases.
  3. Efficient Follow-Up: Automated follow-up processes ensure customers feel engagement, strengthening their ties to the dealership.
  4. Integrated Solutions: CRM systems work with digital retailing tools to enable seamless online interactions, enriching the customer journey.

Underutilized CRM Features to Support Customer Acquisition

Despite their potential, many dealerships do not fully leverage CRM capabilities. Here are key features that can enhance customer acquisition:

  1. Lead Scoring and Segmentation: Many dealers overlook lead scoring to prioritize high-potential customers effectively.
  2. Automated Marketing Campaigns: Streamlining outreach with automated tools keeps communication timely and focused on customer journeys.
  3. Customer Lifecycle Management: Maintaining engagement beyond the initial sale promotes retention and repeat business.
  4. Service Reminders: Regular reminders show customers that their needs matter, building trust and satisfaction.
  5. Social Media Integration: Managing social media interactions through CRMs helps reinforce relationships and broaden acquisition efforts.
  6. Mobile Access: Mobile-enabled CRM access ensures that sales teams stay connected with customers wherever they are.
  7. Feedback and Surveys: Regularly gathering customer feedback allows dealers to identify and address areas for improvement.
  8. Performance Analytics: By reviewing CRM analytics, dealerships can understand the effectiveness of their acquisition strategies.

Maximizing CRM for Long-Term Success

At its core, a dealership’s CRM system is integral to acquiring and retaining customers. A CRM should be looked at as a customer intel hub from which meaningful and personal communications should be managed and executed.

As Steve Roessler highlights, “Digital communications have become critically important elements to complement the CRM system with. Personalized videos, live streaming, and engaging through text messaging with GIFs are powerful ways to keep customers engaged. Building a culture of video communication begins with leadership embracing it. The same goes for Artificial Intelligence. AI powered communications already help generate relevant engagement. Dealers need to understand how to utilize the functionality and embrace it for their store. To put it simply: Digital communication determines whether customers visit your dealership.”

Dealerships that harness the full potential of their CRM systems and understand the importance of engaging with the prospect or customer through digital communications’ methods can optimize customer interactions, deliver exceptional experiences, and secure lifelong customer loyalty – transforming sales transactions into lasting relationships.

Author: Jon Karasek

VP of Remarketing, Mach10 Automotive.

Having recently held the position of Regional Director of Digital Strategy and Innovation for the industry’s largest independent auto auction group, Jon’s skills range from mechanical/technical certifications to wholesale and retail sales. Jon was recognized for leadership accomplishments when honored with the 2021 Automotive Remarketing 40 Under 40 Award. He is an accomplished auctioneer with over 20 years of experience in the automotive industry. Jon graduated from the Worldwide College of Auctioneering, and then excelled as the GM of one of Southern California’s premier wholesale auto auctions.

Denyn Pysz

Sales Director

Denyn is a dynamic automotive sales leader with over 20 years of experience, recognized for his expertise in technical certifications, retail sales, and service. With a proven record of driving growth, Denyn has excelled in key management roles across dealership operations, equipping him with a comprehensive understanding of dealership needs at every level. Known for his ability to build high-performing teams and deliver revenue growth, his innovation-driven approach and industry insight make him a trusted authority in automotive sales and service. At Mach10, Denyn advises our clients in Sales, Service, F&I, and Operations, guiding them toward optimized performance and success.

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Kathi Kruse

Financial Operations Analyst

Kathi Kruse is a uniquely qualified and accomplished automotive retail advisor. Recognized as a dealership profitability specialist, digital strategist, trainer/coach, podcaster, and author, Kathi is the creator of the Kruse Control Newsletter, and Founder/CEO of Automotive CFO-To-Go, and Kruse Control Inc.  Born in the heart of Los Angeles to a family of “car people”, Kathi’s passion for the car business spans a 25-year automotive retail career, managing wildly successful $100M+ stores in Southern California. Her exceptional experience, combined with her innovative methods, has led to transformational outcomes and increased profits for over 1,000 clients to date.

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Chris Pero

Managing Director

Chris’ automotive experience spans over a decade in both retail and wholesale. Chris has provided support by growing an auction company at the management level in southern California, and most recently, he was a part of the management team at a Ford and Lincoln dealership.Through his unique experience and determination, he has a proven track record of growth and success and understands the unique needs of the dealership at every level.

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George Pero

President & CEO

Extremely accomplished leader in the automotive industry recognized for his success in retail and remarketing. George’s career achievements include successfully launching and running Auctions In Motion (“AIM”), a regional “mobile” auction company that brings the auction to the dealer. George also holds a wealth of knowledge & expertise in mergers & acquisitions in the automotive sector. He recently served as the Vice President of a national brokerage firm where he was one of the top producers. His experience in the M&A industry brings a keen sense of the due diligence process as well as the art of negotiating while representing both seller and buyer.

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Michael Yanke

Vice President Marketing, M&A

Michael has demonstrated success in expanding multimillion-dollar sales and fostering growth while providing sales leadership in highly competitive global markets. Michael brings decades of marketing management with a proven record of achievement. For over 25 years, he has been successful at building new businesses, securing client loyalty and forging strong relationships with external business partners. His extensive knowledge of marketing strategies, channels, and branding has helped companies achieve success through his leadership, communication, and collaboration abilities.

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Jon Karasek

Vice President

Having recently held the position of Regional Director of Digital Strategy and Innovation for the industry’s largest independent auto auction group, Jon’s skills range from mechanical/technical certifications to wholesale and retail sales. Jon was recognized for leadership accomplishments when honored with the 2021 Automotive Remarketing 40 Under 40 Award. He is an accomplished auctioneer with over 20 years of experience in the automotive industry. Jon graduated from the World Wide College of Auctioneering, and then excelled as the GM of one of Southern California’s premier wholesale auto auctions.

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Chris Pero

Director, M&A

Chris’ automotive experience spans over a decade in both retail and wholesale. Chris has provided support by growing an auction company at the management level in southern California, and most recently, he was a part of the management team at a Ford and Lincoln dealership.Through his unique experience and determination, he has a proven track record of growth and success and understands the unique needs of the dealership at every level.

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David Foley

Director, Dealer Operations

David is a seasoned automotive executive with over twenty years of industry experience. As a results-driven Sales Manager, he consistently delivers impressive revenue growth and prioritizes customer satisfaction. Renowned for his ability to build and lead high-performing teams, David’s visionary approach and innovation-driven mindset keep him at the forefront of the automotive sector. His unwavering integrity and keen eye for industry trends position him as a trusted leader actively shaping the future of automotive sales.

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Sam Abergel

Director, Fixed Operations

With over four decades of automotive industry experience, Sam’s impressive career began in sales at a Chrysler Plymouth dealership, where he was promoted to Service Manager within 18 months. Noteworthy achievements include leadership roles as the President of the Parts and Service Managers Guild in Los Angeles and representation on the Porsche North America Round Table. Sam’s extensive experience and track record of performance improvements includes orchestrating successful dealership transitions, managing and growing service and fixed operations as a transformative leader at Chrysler-Dodge, Audi, Lexus, and Porsche dealers. At Mach10, our clients benefit from Sam’s expert knowledge in driving dealership profitability through strategic guidance, coaching, and creating tailored client solutions.

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Shasta Pellegrino

Executive Administrator

Shasta is a dynamic professional who excels at identifying and implementing effective solutions to complex problems. Her dedication to Mach10’s administrative needs and her commitment to excellence make her an invaluable asset. Shasta's passion for working closely with people and ability to collaborate seamlessly with colleagues and stakeholders alike makes her a perfect fit for the Mach10 team. With her blend of administrative expertise, people skills, and proactive approach to problem-solving, Shasta is poised to contribute significantly to the success and growth of our team and our client partners.

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Carsten Preisz

Chief Marketing Officer

Carsten’s extensive achievements includes introducing and establishing Dutch Supercar Spyker in the Americas and holding senior management/executive positions with esteemed and iconic automotive OEMs to include Rolls-Royce, Bentley, Peugeot, and Fisker Automotive. Most recently, Carsten’s contributions with Market Scan Information Systems, Inc., were key to the company being acquired by S&P Global Mobility.

Whether the challenge calls for creating the customer standards for Bentley/Rolls-Royce or being responsible for the Los Angeles Marathon TV-broadcast, which led to an Emmy nomination, Carsten is instinctually entrepreneurial and an out of the box thinker who enjoys solving strategic challenges to elevate the client experience and maximize profitability.

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