How do you evaluate a good CRM?

[Dan Sayer]

Desking aside, U/I is important, but I would never trade a good U/I for a CRM with great U/I if that CRM made it difficult to customize processes, accurately track performance, find opportunities, and grow the business. Happy to have an offline conversation of the issues with the other CRMs in these areas (I have worked with dealers using virtually all of them), but VIN is the only CRM that provides all of these must-haves with a decent U/I.

Managing the customer relationship (the essence of what a CRM is supposed to help you do) isn't possible if you can't accurately track and measure the performance of your team and your vendors. For example, when I peel back the layers on the reporting with some CRMs (including the new "hot" CRMs dealers are falling in love with) I find inconsistencies, mysteries, and issues galore. Moreover, none of my clients who've switched from VIN to one of the new CRMs has sold a single incremental unit related to the U/I or bells/whistles the new tool adds - in fact, performance (overall) declines (more than you would see in the past when someone switched from Socket to eLead, for example).

@Steve Stauning hope all is well! Every CRM was the 'hot' CRM at some point in history and they would all still be excited to get that label. I put off Drive for seven years, the first two due to job change but the last five due to they were more "hot" than ready for our stores. Switching a CRM without consistent sales process along with salesperson and manager accountability is just shuffling the deck chairs on the Titanic. VinSolutions reporting is better, although painfully slow and glitchy this year, than DriveCentric's Standard and Advanced Reporting out-of-the-box. DriveCentric's Custom reporting, however, is extremely flexible and we've been able to replicate and surpass most of our go-to Vin reports. At the end of the day, I and other Variable leadership have to ask what we were actually doing with all the reports we had in Vin to begin with. We have arrived at basically two core reporting sets that we focus on in Drive. Both Custom reports with one focusing on Store performance and one focusing on Salesperson performance. Department managers and marketing have all the data they need in the store reporting and all managers, who each have 2 or 3 salesperson direct reports they meet weekly with, have the salesperson performance they need to do their weekly one-on-ones with those salespeople.

At the end of the day, most everyone on this forum including myself, have lost the ability to think like a salesperson on the showroom floor (or even a retail manager for that matter). Our minds run straight past the software programs we use in the showroom and into everything behind the curtain. I met with all 120+ of our Variable personnel and can tell you, through their lens they were EXCITED. Clarity of their opportunity, focused pipelines, simplified communication along with a great AI assist and app, had them engaged like I've never seen with DealerSocket, Elead, or Vin. Good UI and UX is just a way to eliminate friction on engaging with the tool out of the gate especially with the younger set of sales professionals we employ.

Yes, I'm sure there are dealers out there who are making CRM changes based on it being "hot" or because they liked the CRM sales person (I told Roessler "no" 3 times in 7 years lol). I'm sure you see dealers killing it and dealers who were failing but has it ever been solely because of the CRM? Of course not. Dealers who are struggling with process and accountability will meet the same issues upon a CRM switch. We were just at a point where accountability has been ramping up for the last couple years, processes are set, and we were just finding inefficiencies with CRM/AI/Video/Phone in our current set-up with Vin, Impel, and Snaplot. We are selling more cars because we aren't missing our opportunities beyond our showroom.

 

[Alex Snyder]

@Dan Sayer is making my point very clear. Make it so salespeople will use it and CRM will become a true asset to the store.

@Pedram - I'm not avoiding your reporting question. Reports have a place, but both Dan and @john.quinn are giving you some good reasons as to why it is more about nailing usability first.

@Steve Stauning's point about customizing processes is a big part of nailing usability. When John Quinn and I were building the Dealer.com CRM (shelved by Cox) the bulk of development time was spent on the dealership process workflows.

 

[Steve Stauning]

@Dan Sayer And yet, DriveCentric has been unable to replicate any of the custom VIN reporting we've given to their team for months (yes, we've been trying to work them for months). Not even close. Moreover, the clients I have who switched from VIN to DC run centralized BDCs. I ran two reports for one of them last month that (allegedly) use the exact same data, yet the opportunity counts were different by about 20%.

My advice to all dealers is make a CRM change at your own peril. What makes you think your team will use the new one any more than they used the old one? Unless you're using one of the "OMG, this CRM sucks" tools (I won't name names), there has (so far) been very little (if any) upside to making a switch.

 

[Dan Sayer]

@Dan Sayer And yet, DriveCentric has been unable to replicate any of the custom VIN reporting we've given to their team for months (yes, we've been trying to work them for months). Not even close. Moreover, the clients I have who switched from VIN to DC run centralized BDCs. I ran two reports for one of them last month that (allegedly) use the exact same data, yet the opportunity counts were different by about 20%.

My advice to all dealers is make a CRM change at your own peril. What makes you think your team will use the new one any more than they used the old one? Unless you're using one of the "OMG, this CRM sucks" tools (I won't name names), there has (so far) been very little (if any) upside to making a switch.

I would say that initially, my complaints of Reporting were met with a fairly dismissive attitude from Drive. "It's just because our terminology is different than Vins" was their initial response. I was in a little disbelief off how bad the reporting still was knowing some of the dealer groups they deal with. I was figuring some of those players would have pressed for a better Reporting set. There was A LOT of context confusion with my Drive support team on "tomato, tomato" for Vin terms and math (Part of what prompted my post below earlier this month). Since then, we just finally got to a point where our reports work for us but only in Custom. @Steve Stauning if your stores are having issues, DM me and I'll trade notes with you on the route I took to get ours.

Those of you familiar with the path of "Internet Sales" over the last 20+ years, whether Retail or Vendor, probably have a single KPI that sits atop your reporting: Internet Lead Close Percentage. This one metric has been the center of debate among the "nerd" department in dealerships for decades. I'm not going to get into the typical retail arguments that sway topics of Internet close rates like, "That's not a Good lead, they didn't buy, don't count it," or "That's an Internet lead because they called from AutoTrader," or my favorite, "Can you delete this lead, they're unrealistic about their trade".

But let's talk about a particularly elusive math puzzle that still baffles many: Sold from Leads or Sold in Timeframe. In full disclosure, I've been calculating Internet Close rate by the latter since 2001. Internet Leads Sold in timeframe divided by Lead count within same timeframe. I didn't even know of the "Sold from Leads" math until I joined a dealer group with Ford stores in 2010. Some "Internet god" in a suit and tie from FordDirect would come with Internet Close Rates for our month. His numbers never matched ours PLUS prior months seemed to change ongoing. It took a couple of visits before he and I figured out we were doing different math. FordDirect, at the time, was using and defending "Sold from Leads". I think they've since shifted to "Sold in Timeframe"? Ford "Internet god", you still out there?

Breaking it down...

Sold from Leads (old FordDirect, VinSolutions option, DriveCentric Standard Reporting default are the ones I know)
10 Leads in October
1 Sold from those 10 Lead names = 10% Close Rate

10 new Leads in November plus still working the 9 names from October that didn't buy
1 Sold in November but it was one of the October names
0 Sold from those 10 Nov names = 0% Nov Close Rate BUT
October Close Rate is now 20% because 2 names in the October lead bucket of 10 sold.

Sold in Timeframe
10 Leads in October
1 Sold from those 10 Leads = 10% Close Rate

10 Leads in November plus still working the 9 from October that didn't buy
1 Sold in November but it was one of the October names
1 Sold in November (doesn't matter how old it is) and had 10 Leads in November = 10% Close Rate
October Close Rate stays 10% (and will never change) and now November Close Rate is 10% as well.

In the Sold from Leads example, past Internet Close Rates can change. Imagine reviewing salesperson performance and coaching a rep based on their 10% close rate at the end of Oct. In November, they now show a 0% for month end. How do you coach that? "You sold one but it didn't count on your KPI this month. You were at 0% in Nov but good job on getting Oct to 20%!"

This entire topic has been revived in my mind because I learned that DriveCentric actually has Sold from Leads as their core math on their Standard Internet Report. I'm 5 of 7 stores into a CRM change (and very happy about their CRM overall). Their language for Sold from Leads is "Fixed" and their language for Sold in Timeframe is "Rolling". Thankfully, we CAN have them flip that switch within their custom reporting to "Rolling". VinSolutions provided both equations within reporting and you could just select the one you want but their default on Coaching Dashboards was Sold in Timeframe.

So, dear Internet Sales enthusiasts, what's your poison? Sold from Leads or Sold in Timeframe? If you're out there bragging about your Internet Close Rate in peer groups, make sure you know what mathematical sorcery you and others are using so you can be on the same page.

@Alex Snyder and @Jeff Kershner I tried to launch this as a Poll but no go....?

 

[joe.pistell]

@Pedram pinged me and asked that I toss in my $0.02.
I believe the CRM model as we know it is toast (as are most of the old CRM KPIs)

LLM-Powered CRMs: A Brand New AI World is Here​

Executive Summary: In the rapidly evolving landscape of Customer Relationship Management (CRM), a transformative shift is underway with the integration of advanced Language Models (LLMs). This vision document explores the profound impact of LLMs on CRM systems in the context of automotive retail. It highlights the tasks LLMs can replace and the pivotal role they can play as sales reps' personal assistants. Moreover, it demonstrates how these advancements will revolutionize the current Key Performance Indicators (KPIs), ushering in a new era of CRM effectiveness.

Table of Contents:

1. Introduction
   • The Unprecedented Potential of LLMs in CRM
   • Purpose and Scope of this Vision Document
2. Tasks Replaced by LLMs
   • Automating Routine Administrative Tasks
   • Personalized Customer Assistance
   • Data Entry and Maintenance
3. LLMs as Sales Reps' Personal Assistants
   • Enhancing Customer Interactions
   • Streamlining Workflows
   • Real-time Information Support
4. Impact on Current CRM KPIs
   • Evolution of Traditional KPIs
   • Introduction of New KPIs
   • The Importance of AI Utilization Rate
5. Conclusion
   • Embracing the LLM-Powered CRM Revolution
   • Preparing for the Future of Automotive Retail

1. Introduction: The integration of Language Models (LLMs) into Customer Relationship Management (CRM) systems represents a groundbreaking shift in the automotive retail industry. This document explores how LLMs are set to redefine CRM practices, making them more efficient and customer-centric than ever before.


2. Tasks Replaced by LLMs:

• Automating Routine Administrative Tasks:
  • LLMs can take over time-consuming administrative tasks like data entry, appointment scheduling, and report generation, ensuring accuracy and reducing human errors.
• Personalized Customer Assistance:
  • AI-driven CRM can provide personalized product recommendations and assist sales reps with real-time information during customer interactions.
• Data Entry and Maintenance:
  • LLMs can handle data entry and maintenance tasks, ensuring data accuracy and completeness, freeing up sales reps to focus on building relationships.

3. LLMs as Sales Reps' Personal Assistants:

• Enhancing Customer Interactions:
  • LLMs enable sales reps to offer more personalized and engaging interactions with customers, improving satisfaction and conversion rates.
• Streamlining Workflows:
  • AI-powered CRM streamlines workflows, reducing the time spent on administrative tasks, allowing sales reps to focus on core sales activities.
• Real-time Information Support:
  • LLMs can assist sales reps with real-time information and decision support during customer interactions, ensuring a smoother sales process.

4. Impact on Current CRM KPIs:

• Evolution of Traditional KPIs:
  • Traditional KPIs like IRT, Connection Rate, Appt Set, Appt Shown, and Close Rates will evolve to incorporate AI-driven metrics such as AI Utilization Rate, Personalization Effectiveness, and Workflow Efficiency.
• Introduction of New KPIs:
  • New KPIs will measure the impact of LLM-powered CRM on customer engagement, satisfaction, and revenue.
• The Importance of AI Utilization Rate:
  • AI Utilization Rate will become a critical KPI, reflecting how effectively sales reps and the CRM leverage LLM capabilities.

WARNING:
Legacy CRM vendors need their most brilliant minds on this. They must understand that Perdram's team has no revenue to defend, they can start fresh and build the reps personal assistant.
Mark My word,
Car shoppers will have their own personal car assistant that will include negotiating the deal.

p.s. My AI assistant and I brainstormed this vision doc with about 6 revisions in 60 mins.
p.p.s. If you don't think this is coming fast, here is SalesForce PR
p.p.p.s. google "AI Agent Swarms" and then, buckle your seatbelt & google: "Q Star (aka Q*)"

 

[BillKVMotorCo]

A lot of killer answers, but I'll put my simpleton take out there. UI for the salespeople is really all that matters. Whatever makes it easier for them to use. I've switched CRM's three times. All three times were a struggle and, of course, the last guy to get it down was my 30-year vet. Switched to DriveCentric and it was like nothing ever happened. I never heard my 30-year guy complain (yes, you read that right) and he had it down in a week. That's when I knew we found the right CRM.

 

[joe.pistell]

AI is to work what the gasoline engine was to the horse. Its impact on commerce is as dramatic as the railroads were to the Erie Canal. AI will reshape the structure of dealer organizations. My next post will be a vision document on its impact on the CRM tool.

Below: The joint AI presentation by AMZN/NVDA showcases the speed and profits that will benefit all organizations capable of pivoting. C-suites will have no choice but to fully embrace AI. The AI rollout will reduce staffing to an extent that may raise concerns in Washington.

 

[Ryan Everson]

At the end of the day, most everyone on this forum including myself, have lost the ability to think like a salesperson on the showroom floor (or even a retail manager for that matter). Our minds run straight past the software programs we use in the showroom and into everything behind the curtain. I met with all 120+ of our Variable personnel and can tell you, through their lens they were EXCITED. Clarity of their opportunity, focused pipelines, simplified communication along with a great AI assist and app, had them engaged like I've never seen with DealerSocket, Elead, or Vin. Good UI and UX is just a way to eliminate friction on engaging with the tool out of the gate especially with the younger set of sales professionals we employ.

Yes, I'm sure there are dealers out there who are making CRM changes based on it being "hot" or because they liked the CRM sales person (I told Roessler "no" 3 times in 7 years lol). I'm sure you see dealers killing it and dealers who were failing but has it ever been solely because of the CRM? Of course not. Dealers who are struggling with process and accountability will meet the same issues upon a CRM switch. We were just at a point where accountability has been ramping up for the last couple years, processes are set, and we were just finding inefficiencies with CRM/AI/Video/Phone in our current set-up with Vin, Impel, and Snaplot. We are selling more cars because we aren't missing our opportunities beyond our showroom.

Agreed. We are also making the switch from Vinsolutions to DriveCentric after years of being hounded by Steve.

From a group level admin / reporting perspective I hate it compared to Vinsolutions.

But salespeople, sales managers, and F&I managers love it.

And that's what truly matters. If it generates more sales, more efficiently, I'm all in. So I love it and am willing to deal with some of the admin / reporting deficiencies because it's ultimately what's best for the dealership, not what's easiest for me to create reports.

I think a true testament to the impact of UI/UX is we had several BDC managers and Sales Managers freaked out about switching CRM's - they kicked and screamed. Change is hard and Vinsolutions is probably the second best CRM in automotive.

Fast forward after being live a month and when you ask them their opinion now - they all beg us to never switch back to Vin and that they would gladly pay the added expense out of pocket personally if it meant staying on DriveCentric. They love using it, it's easy to use and makes them much more efficient.

 

[Dan Sayer]

AI is to work what the Gasoline Engine was to the Horse. Its impact to commerce is as dramatic as the RailRoads were to the Erie Canal.

The AMZN/NVDA joint AI presentation (youtube) shows off the speed and profits that will come to giant orgs. AI will cut staffing by amounts that will scare Washington. AI will shift the structure of Dealer org.

We dissolved a 12-person sales BDC because of the volume downturn in the last year and don't see that coming back because of DriveCentric's use of Ignitify's AI in lead pursuit, engagement, and follow-up. I had a 20Group peer, Steve Koch with Joe Cooper, tell us, "You won't be replaced by AI. You'll be replaced by those leveraging AI." Love that quote.

 

[Pedram]

Amazing feedback everyone, very fortunate to be part of this community. Will be reaching out for more 1:1 feedback with some folks to continue to learn and build a better product. This post has been very educational. Let me know how I can be of help for any of you!