Can Technology Save Automotive Retailers? CRM systems can run into the millions of dollars and take over a year and half to implement-in the automobile retail space – in which simple database consolidation can run from $65,000 to $125,000 a year in annual licensing fees alone – the problems of communicating, wooing and retaining customers are not easy to fix. The problem stems from a lack of connection between dealerships and customers that no IT system can solve alone. The automotive industry is a classic example of this disconnect. On average, interaction between an auto company and a customer occurs 1.2 times per year. That simply does not provide enough data to answer such crucial questions such as, which people should get what offer on which product at what time? Who’s responsible to connect to the customer post purchase- sales consultant-parts personnel-service advisor? For dealerships that have implemented a business development center this should be its focus but rarely is. In my ten years in this industry, I’ve found that business development centers tend to morph into internet departments which rely on appointments set that result in a vehicle purchase to establish a return on investment. This is due because nine times out of ten a Business Case was never drafted to show the real financial benefit to a business development center or CRM system. Companies need an approach to CRM that marketers – and customers – can embrace. Embraceable CRM starts with a simple premise; the most important part of the database is the data. To gain the information necessary to embrace the customer, relationship programs must be based on three principles: · First, they cannot wait until the first purchase is consummated to begin to understand consumer preferred method of communication, instant message, text message, phone, and direct mail. The key is to recognize that different customers would like to communicate with the dealership through different channels at different times of the day. Effective CRM systems must dive deep into the purchase decision before the purchase is made. Call this communication channel.· Second they need to log the interests, concerns, desires, and habits. The key to unlocking value is to recognize that different customers follow different purchase paths. Effective CRM systems must dive deep into the purchase decision before the purchase is made. Call this purchase-cycle intimacy. · Third, because different customers follow different ownership paths, effective CRM systems must link deeply and broadly to the individual’s ownership experience – the consumer’s relationship with the car throughout the ownership cycle. Call this Lifecycle management.Acting on these principles requires companies to bring otherwise separate technology programs together in complementary ways. For example, online engagement solutions (live chat or instant messaging) make it increasingly possible to capture valuable insights about consumers at the beginning of the purchase process. Live Chat software is quickly becoming a valuable and cost effective tool to the dealership -is proving to be excellent tool to engage consumers in dialogue while they are perusing the dealerships web site. Online activity at home or in the office represents another vital opportunity to achieve purchase-cycle intimacy. The bursting of the e-commerce bubble should not obscure the fact that some 75% of consumers in the U.S. use the Internet at some point during the automotive purchase process.Multi-channel CommunicationNow consider what happens to a dealerships ability to achieve and use communication channel with purchase-cycle intimacy when these tailored consumer engagements move from the Internet into the CRM solution for Lifecycle management. Live-Presence has entered into the automotive space with the ability to integrate with CRM products from Reynolds and Reynolds, ADP, its sister company BDC and heavy weight player Microsoft CRM.Even with bail out money in place, dealerships need to communicate to their prospects in their preferred method. Customer and prospects are growing accustom to the speed and convenience of instant messaging, text and email and to be delivered at a time which is convenient to them. Data flowing back to manufacturers and dealers will enable them to tailor follow-up campaigns that effectively bridge the gap between marketing and sales. The ability to develop incentive packages tailored to be delivered in the preferred communication channel of the customers through the purchase cycle and lifecycle management to get customized packages in front of receptive audiences. Vastly more preferable and effective to placing a full page ad in the local newspaper that costs thousands of dollars per week offering that same package to everybody. Those dealers that think riffle marking over shotgun will find themselves riding the crest of the wave out of this downturn. FootnoteAs I wrote this article; I have four methods of communication open on my desktop with my office and cell phones sitting on my desk with skype open for international clients to contact me by voice over IP on the ready. Currently, I have three threads of communication going an email conversation and two instant messaging sessions. I’ve attended a webinar and received tech support by way of chat from my lap top vendor and while charging my IPod for a weekend on the slopes.Author: Eugene Gonzales, Founder of Business Development Concepts and Live Presence. http://www.live-presence.comhttp://www.bdcsoftware.com
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