How do you evaluate a good CRM?

[Jeff Kershner]

after years of being hounded by Steve.

Many of us can relate. - But I don't mean that in an overt negative way.

 

[jon.berna]

One of the perspectives that most impacts a CRM is what stage the company is at. If you evaluate all of the CRM companies based on employee size, founding date, whether they've been acquired or not the reality is companies hit their sweet spot right before they get acquired. If you go back in time and look at who was the hot CRM at any given time it was likely the one right before they hit this window.

Most of the CRM providers in our space have been acquired, which means the core team is gone and they have rebuilt the company at least once but probably 2-3x depending on duration. So within that group the gaps are pretty vague now as they are feature matching and working to get more profitable. There are however key differences in how they are building into their acquisition's sister company landscape.

But if you want to innovate your likely going to have to sacrifice in some other areas (integrations, reporting, etc.). All things are in flux and we've seen the post acquisition chaos and entire products evaporate from ownership change. The signs for this are typically pretty clear and that's why its important to have flexibility contracts and your ear to ground for what's out there.

 

[BillKVMotorCo]

I think it also helps that all of the lessons learned throughout the years can be added while it's built as a whole rather than having add things.

One of the perspectives that most impacts a CRM is what stage the company is at. If you evaluate all of the CRM companies based on employee size, founding date, whether they've been acquired or not the reality is companies hit their sweet spot right before they get acquired. If you go back in time and look at who was the hot CRM at any given time it was likely the one right before they hit this window.

 

[Todd Thompson]

Hey everyone! Hope you all had a Happy Thanksgiving!

We are constantly striving to get feedback as we build product. Considering the size and importance of CRM I thought I ask this community on some methods used to evaluate a good CRM. During my days as a GM I thought these basic KPI's (IRT, Connection Rate, Appt Set, Appt Shown and Close Rates) were good indicators. I know these metrics are also people and process driven, but curious beyond these old metrics if there are other ways you all evaluate a good CRM. Things like design, UI, etc are nice but tough to put a finger on the impact it makes. Appreciate the feedback and look forward to learning more!

Number one to me is... how does this integrate with our DMS. My experience with CRM tools is it basically doesn't. Use the CRM tool and it won't be long before:
1) your dms is an out of date address book
2) you are stuck with your CRM since you can't afford to lose all the data they keep in their own silo

The love affair with your CRM tool starts fading the day you sign the deal. Choose wisely and make sure you have your 'prenup' done up and no what to expect and what you're left with when the shine comes off. Because the shine will come off... guaranteed.

 

[Dan Sayer]

Number one to me is... how does this integrate with our DMS. My experience with CRM tools is it basically doesn't.
1) your dms is an out of date address book
2) you are stuck with your CRM since you can't afford to lose all the data they keep in their own silo

The love affair with your CRM tool starts fading the day you sign the deal. Choose wisely and make sure you have your 'prenup' done up and no what to expect and what you're left with when the shine comes off. Because the shine will come off... guaranteed.

Yes, I agree, a full DMS to CRM integration would be ideal.

As far as your warning of

Use the CRM tool and it won't be long before:

I don't agree on those points.

1) Your DMS is the source for truth and accuracy for all transactional instances in fixed and variable (and OEM access) so if it becomes an out of date address book, something is wrong with the dealership and that has very little to do with blaming CRM. DriveCentric integrates pretty okay with Tekion at this point and that is improving. If anything, the DMS is holding our stores accountable to accuracy within the CRM because of the way Drive won't allow input of "truth" to match up to garbage in the CRM.
2) This seems like a really outdated warning since most all the major players that I'm aware clearly understand that customer data is federally controlled and protected at this point in the US and a CRM provider's ability to operate within our industry ends pretty quick if they hold customer data hostage. Bad breakup or not, no one is going to jack around with who owns customer data.

 

[Todd Thompson]

Yes, I agree, a full DMS to CRM integration would be ideal.

As far as your warning of

I don't agree on those points.

1) Your DMS is the source for truth and accuracy for all transactional instances in fixed and variable (and OEM access) so if it becomes an out of date address book, something is wrong with the dealership and that has very little to do with blaming CRM. DriveCentric integrates pretty okay with Tekion at this point and that is improving. If anything, the DMS is holding our stores accountable to accuracy within the CRM because of the way Drive won't allow input of "truth" to match up to garbage in the CRM.
2) This seems like a really outdated warning since most all the major players that I'm aware clearly understand that customer data is federally controlled and protected at this point in the US and a CRM provider's ability to operate within our industry ends pretty quick if they hold customer data hostage. Bad breakup or not, no one is going to jack around with who owns customer data.

I appreciate your viewpoint.
many if not all don't integrate well (if 'pretty ok' works for your own store, then thats fine). You get what you expect.
Working outside of your dms using a 3rd party crm tool, you take your chances. I could name off an easy half dozen that are 'fails' that I've personally been involved with. Just don't want to offend anyone who may be promoting one. Communications, conversations etc. largely don't push properly back to the DMS. Not sure if that is by design (they keep you at the trough), or by inability of the crm or the dms.

Just my two bits.

 

[Todd Thompson]

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).

Couldn't agree more. We ended up building our own. The amount of inconsistencies, exceptions, ifs/ands/buts were boundless. Not a solution for everyone I'm sure but nothing beats "rolling your own", in my opinion. You get the tools you want. Work the way you want and most importantly.. integrates the way you want with your DMS.

 

[Pedram]

Really appreciate everyone taking the time to reply. Its great to have views from all various personas to ensure there is a balanced perspective. Here is a summary based on the feedback and my own observations the last couple of weeks:

1. Simplicity - Users need to hit the ground running with minimal setup and training. Durning my journey when I built my own product and our Analytics product I learned, complexity sells well, simplicity drives results so this really stood out.
2. Utility - Features that are meaningful to help me organize a way to focus on what matters. More features does not mean more value, features that help drive engagement (both users and customers) is critical. Common challenge with any product, overbuild thinking you added more value yet the users only use 10-15% of the platform. Joe - AI is going to serve a big role in utility, just needs to be more refined.
3. Visibility - Automotive is a performance business, if you can't see how well you are performing you wont succeed. Visibility is a combination of KPIs and reports. I know each persona (GM, GSM, Internet Managers, BDC, Marketing, etc) may have different needs, but empowering the front line first and working your way to the top seems to be the best approach.
4. Integrations - There are many tools that revolve around CRM, DMS being the core. But there are other tools and products that need to push and pull data. How easy the product integrates and works with others is important.

Look forward to many more engaging conversations around this. Thank you!!

 

[jon.berna]

Pedram, this is well a developed list. If I were a product manager an auto software company I would print that off and put it on the wall.

Another way of saying this. Sales, marketing and high-skill power users drive new features in companies which often don't translate into value for the center mass of the audience that actual need them. For customer's buying software you have to ignore the distractions and focus on how the application will fit within the various personas your org.

 

[Ryan Hartigan]

Really the most important facet of a CRM is if your sales staff is actually going to use it. There's only one way to test that, but best thing you can do when evaluating new providers is ask people who have worked with that CRM and what the customer base think about it.