CRM Software: Cultivating Customer Relationships

Nowadays you can't afford to let customers slip through the cracks. Customer relationship management (CRM) software can help you improve sales closing ratios and build long-term customer relationships. But to maximize your return on this tool, you need to get all employees on board.

Embracing Change

Some old-school salespeople are comfortable managing customer lists with an index card file box. But there are more efficient and effective ways to organize your business, of course.

A properly implemented CRM system can dramatically improve sales, lower marketing costs and build customer loyalty. You just need to train your employees how to use CRM to its fullest. And buy-in must occur throughout the organization, a silo approach to CRM that focuses only on one dealership area, such as new car sales or service, won't optimize results.

Tracking Data

CRM software gathers information from your salespeople individual records and then integrates it with F&I and service department customer files. CRM software acts like an electronic administrative assistant. It can, for example, systematically remind salespeople when to make follow-up calls and remind the service department when to send out oil change or tire rotation reminders.

Every time the dealer contacts a customer, or a customer visits the dealership, it recorded in the CRM system. This input enables owners to track progress, such as salespeople hit rates and the effectiveness of e-mail blast campaigns. It also helps dealers retain valuable customer information during staff turnover.

Once they've reviewed the results, some owners offer monthly bonuses to employees who consistently enter data into the CRM system, as well as to the salesperson with the most improved sales closing ratio.

Segmenting Your Market

Customers can be categorized by current model, future vehicle interests, desired method of contact, and other demographics. This helps dealers reach the right customer in the right way. When dealers flood customers with too many impersonal calls, direct mail pieces, or e-mail promotions, they're less likely to listen to your message or read your materials.

Customers entering the showroom and service bay present opportunities to update contact information, such as their home and cell phones, e-mail addresses, changes in family status and model preferences. To avoid appearing pushy, some dealers enter updated customer information cards into a weekly drawing, say, for a free oil change or new floor mats.