Photo of Peter CookeCRM versus good management

Like many of you, I am offered a
steady stream of apparently increasingly powerful tools for
CRM.

The prevalence of such software has
grown over the last few months, including a plethora of support
systems and triggers to manage both the sales and finance offerings
of dealerships as well as a galaxy of add-ons and value added
benefits.

However, based on the findings of
the BCA Used Car Market Report 2010, which involved an
in-depth survey of four thousand used car buyers, I am slightly
concerned.

One of the questions asked
respondents if they had been contacted by their dealer after the
acquisition of their car. The responses indicated 44% had never
been followed up, while 32% had only been followed up with regard
to servicing their car.

Some 14% reported they had been
asked about changing their car, while 3% were asked if they had
relations, family or friends who might be interested in a car.

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Now, even if these figures were 50%
out, there are still a lot of clients who have not been followed up
by the dealership. Why?

When I was young a key part of the
dealer sales role was to establish and retain relations with the
prospect and buyer – one dealer principal put it to me forcefully:
‘young man, establish and retain a relationship and they will come
back to you time and time again’.

I know that was a long time ago,
but has the salesperson/customer relationship changed so much that
it is no longer one of establishing and retaining customers?

Given the declining new car product
mix, and the associated drop in absolute profit opportunities,
increased warranty periods and service intervals, surely a key task
of any member of the dealership is to nurture prospects and
clients.

CRM is a wonderful concept and I
certainly do not argue with its benefits in building and managing
the customer base. But there is a lot of work the dealership should
undertake before investing in such sophisticated support
system.

A dinosaur like me might ask: “if
the dealer salesperson does not follow up on his or her current
customers, what assurance do we have that they will follow up on
the demands and disciplines of a sophisticated CRM system?”

Yes, CRM systems do far more than
generate leads, but if the basics of follow-up are failing in 44%
of cases, it doesn’t say much for the application of sophisticated
systems.

Before investing in new CRM
systems, ask how you monitor your sales force follow-up.
Sophisticated systems may offer a broader range of contacts and
communications but can be just a sticking plaster over the
inadequacies of the sales force.

A deciding factor in market success is the quality of the
relationship between the sales person and the customer. That
relationship is made up of people – not an IT system. Or am I out
of touch?