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.
- Enhanced Accountability: CRM systems help dealerships monitor and track customer acquisition progress, ensuring every interaction nudges the customer closer to a decision.
- Data-Driven Insights: CRMs collect data on customer preferences and behaviors, allowing dealerships to refine their acquisition strategies.
- Optimized Processes: Automation of repetitive tasks frees up sales staff to focus on delivering exceptional customer experiences.
- 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:
- Seamless Transitions: CRMs maintain customer activity records, allowing sales teams to smoothly transition customers from online research to in-person visits.
- Personalized Interactions: Detailed customer profiles empower sales staff to tailor their approaches, fostering loyalty and ongoing purchases.
- Efficient Follow-Up: Automated follow-up processes ensure customers feel engagement, strengthening their ties to the dealership.
- 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:
- Lead Scoring and Segmentation: Many dealers overlook lead scoring to prioritize high-potential customers effectively.
- Automated Marketing Campaigns: Streamlining outreach with automated tools keeps communication timely and focused on customer journeys.
- Customer Lifecycle Management: Maintaining engagement beyond the initial sale promotes retention and repeat business.
- Service Reminders: Regular reminders show customers that their needs matter, building trust and satisfaction.
- Social Media Integration: Managing social media interactions through CRMs helps reinforce relationships and broaden acquisition efforts.
- Mobile Access: Mobile-enabled CRM access ensures that sales teams stay connected with customers wherever they are.
- Feedback and Surveys: Regularly gathering customer feedback allows dealers to identify and address areas for improvement.
- 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.