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5 Reasons Why I Hate CRM Software for Car Dealers.

I have used Dealer Socket, iCar, AVV, Autobase and Buzztrak. In short. EASE OF USE. Seeing all customers, email history, customer history and everything on the fly with 1 or 2 clicks max. Why because salespersons tend not to follow through and BDC reps get busy with a load of leads. EASE OF USE being the key, I would have to go with AVV or Buzztrak as an ILM and let floor, service and follow-up rest in the hands of a CRM.

5 Reasons Why I Hate CRM Software for Car Dealers.

Check out DealerSoft, LLC of Illinois. Their website is www.KeepYourCustomer.com. They charge $300 per month, $99 more for E-Lead module, no contract, minimal onetime upfront for installation, training, setup. Not a web based program, rather client server based which reduces all the security issues you don't realize you have with all the web based CRM products out there

5 Reasons Why I Hate CRM Software for Car Dealers.

I'm not familiar with blogs. I hope this post isn't in an inapropriate place. I have some questions.

I'm looking for a CRM with a sales process application, automated follow up, inventory, showrooom control, ILM and CRM features. I don't care if it works with a DMS. I want something to control sales and follow up primarily.

What's out there? How much can I expect to pay? Is it per frnachise, per roof or what?

5 Reasons Why I Hate CRM Software for Car Dealers.

Great points above. A few points to expand and contrast:

1) ILM's typically lack CRM capabilities too. They typically lack the database of prospects and customers and the ability to market to that database effectively as I understand it. The market is going to converge. Who has the advantage and will win? How?

2) IMO workflow flexibility must be balanced with accountability that managers demand. ILM's allow more flexibility IMO because the Internet department is typiclly small and can held more accountable for results, as opposed to findng where the sales process breaks in the scope of the whole floor sales and sales management force.

4) CRM's have weak email engines, I agree. eMail specialists are preferred to the CRM email tools IMO, because they manage whitelisting and blacklisting issues effectively. It's slightly more difficult for server-based CRM systems to manage opting-in and opting-out IMO. I believe this issue can be fixed, and I'd love to know what CRM's are fixing it in their toolset and email services.

Do you think ILM's don't face so many spamming issues because people have inherently opted from via the internet or by giving their email out via phone typically?

5) This does seem to be an issue CRM companies haven't handles well. I wonder when or if it will change, becuase they are highly complex tools with great value if used effectively. Yet dealers also need to take responsibility for having people who know how to use them effectively. I suspect dealers fail in that capacity more often than they succeed.

One misunderstanding appears to be that ILM does not equal CRM. ILM's are incredible valuable. I too hear iCar is great, and I hear some of the same about AVV. But they are simple ILM's, managing a lead through the sales pipeline. They are marketing engines to target customers and prospects for specific campaigns AND follow them through the floor sales process. In fact, I hear of one dealership using AVV for phone and internet leads, then switching to another CRM provider for floor activity and follow up.

Another reflection on an item above-------------
"I think it also says a lot when there is no contract with iCar while there is a 36 month + agreement with Higher Gear."

It does say a lot, but not what may be implied above. These CRM companies aren't out to ripoff dealers, get their money and pay no attention to them. That's not their intent.

They simply have so much invested in installing and training people on highly sophisticated tools that profitability has to be achieved over a long period of time. In fact, profitability appears quite fleeting in this space, despite what you may hear or believe.

Interesting, automotive CRM appears to be a reflection of CRM's issues in the rest of the world. Siebel has been a disappointment if not a failure for much of corporate America it seems. Achieving great results with all these tools, requires great investment of time. I have come to believe that CRM must be supported by either a) services to help dealers use the tools well or b) services that do it for them.

Reflections appreciated. Full disclosure - I work in a company that owns a CRM company as well as ILM products.

5 Reasons Why I Hate CRM Software for Car Dealers.

We have both Higher Gear and iCar - and I have to say that iCar is the better product. I could go on and on with a list of details, but suffice it to say - Higher Gear works well, but iCar offers a lot more, and is much easier to use. IMO, if you want the best, and are looking to lead in your market, then iCar is the way to go, as it is on the cutting edge and is constantly upgrading to be the best. Some of the best tools we use within our internet department our only available with iCar, and not even an option with Higher Gear. I think it also says a lot when there is no contract with iCar while there is a 36 month + agreement with Higher Gear. Kevin Frye/eCommerce Director/Jeff wyler Automotive Family

5 Reasons Why I Hate CRM Software for Car Dealers.

A good CRM offers a powerful process that provides transparancy and accountability. There is no question that a CRM is not only an asset but is essential to a online marketing strategy.

A CRM that has been developed by and for online car sales, intefaces with the dealership web site, considers the online sales cycle and have the flexibiltiy to adjust to the existing dealership culture is a tall order.

CRMs provide a permanent database and the process to manage it and can spit out accurate reports on you sales staffs perfomance or how succesful you marketing campaigns are.

Lets not kid our selves several companies offer CRMs that provide all of the above and are relitively easy to use.

The biggest challenge to implementing a CRM is the how well it is accepted on the lot. Every Dealership has a distinct culture that must buy in to any new process. The flexibility of the CRM to mimic the best practices of existing processes and its ease of use may contribute to it acceptance.

It is only a matter of time before all dealerships are using CRM technology many are just waiting for the right time and the right CRM.

5 Reasons Why I Hate CRM Software for Car Dealers.

We have found most Lead management tools to be very complicated and difficult to use by the sales team and management. To many reports to run and screens to go through to get what you need to know.

Process control is critical in any product you select and far out weights any other need with a lead management tool. You either believe that sales people do their job naturaly or that you must manage and direct them. As a current fact sales people do not naturaly do whats correct next and your lead management tool either helps them decide this or hinders them from knowing it.

Dealer Peak and AVV currently do the best job over all of making it simple for sales people to know what to do next and management knowing if they do it. Dealer Peak is currently the best one that allows good and simple work flow process change based on status change. It will also notify a manager when the status dictates it is needed. My company sees them all, uses them all and this is the opinion of a consultant of more than 30 stores who was in this prior to any tools existing and I have watched most ofthem over develope to the point of being useless with great reports.

5 Reasons Why I Hate CRM Software for Car Dealers.

I have worked with almost every major lead tool and I have to say ADP, Reynolds Contact Manager and Dealer Socket have to be some of the worst. Unless your sales staff all has computer science degrees, don’t waste your time or money.
If you want user friendly for your sales people then I would recommend DealerPeak or AVV. Out of AVV or DealerPeak I would have to say DealerPeak is the most user friendly when it comes to teaching your sales staff how to use. AVV on the other hand has a few more reports that make a mangers job a breeze.
One of the most positive things I have seen with DealerPeak is DealerPeak is open to new Ideas and they understand that a cookie cutter CRM is not the way to go. Ever try to get AVV to make a change? It has taken AVV three months to make AVV work with windows Vista.
In conclusion, when choosing a CRM don’t be blinded by all the bells and whistles. Make sure you sales team can use it and understand it. With the increases in internet business your team can’t spend half the day trying to find where a customer is in the system. If it came down to it and I had to choose I would go with DealerPeak. Good customer service, ease of use and flexible to some extent when it comes to making changes to fit your needs.

And, no, I do not work for or get paid by dealerpeak.

Jeremiah
Compliance manager
Automotive Internet Management

5 Reasons Why I Hate CRM Software for Car Dealers.

Many CRM vendors, like many website and vehicle management tool vendors, have a tendancy to overpromise and under-deliver.

Before leaving my last dealership, I intentionally brought in 3 CRM vendors for demos since I was only masterful with one, just to see what else was out there.

Since, I was able to assist some friends that had two of those three vendors. Upon seeing first hand, nothing like the presentation or demo.

Even if one is able to understand how to set it up, will it work how it's supposed to? More importantly, will the end users easily understand how to use it according to their responsibility, sold deals may get locked if you're lucky enough to have quality consistent pulling from the DMS, how easy is it to pull reports? I do agree there many things not easy to do in some CRMs.

I do believe a full time person for maintenance is essential though, especially if it's mulit-rooftop. Even if the tool can be set up properly while it's implemented, processes usually need to be adjusted afterwards. Also, the CRM tools are designed to do so much, and must integrate with so much (DMS, inventory, websites) that it's always an ongoing project.

Just as someone is needed to post specials on the dealer website weekly, monitor inventory feeds to and from vehicle management tool to website to vendors, someone is needed to know the CRM tool for adjustments, glitches, and full utilization. However...

This is where the dealership needs to decide who's responsibility it is for such work but most still don't see beyond the current sale being worked in the showroom. If a CRM tool is properly utilized to even 75% of it's capacity, that salary should be easily covered many times over.

5 Reasons Why I Hate CRM Software for Car Dealers.

I have to agree. We use UCS, so nothing can be updated through the DMS (ergh...UCS), so that's not a huge issue for me personally.

What really kills me is the sales process, like you said. The only CRM I've ever used that has worked well is Compass. (AutoNation's in-house CRM). I would gladly pay twice the money to use Compass. Everything works so fluidly.

You can tell the difference between the company that believes CRM is the way to go, and has spent tons of dough to get it right (AN) vs. the company that put something together to make an additional couple hundred bucks a month from us.

Rules Rules Rules!!!

Hi Jeff, thanks for a great site, I value your opinion as well as the many others who contribute here. Building on that - I don't want you to be "neutral", I want to hear your honest input regarding the issues that each of us faces with internet sales at our respective dealerships, just as I want to hear the honest input from the other folks who post as well. I know that you are not paid or endorsed by any vendors for this site, and that the cost of running this site comes out of your pocket, and I sincerely appreciate that. Keep up the good work! Kevin Frye/eCommerce Director/Jeff Wyler Automotive Family

Google Local – Is your dealer listed?

Jeff,

As a DMOZ editor, I can definitely say things have changed. The site inclusion requests are down since the outage and it is perfect time to get your site added for review. It normally takes a while as we have to go through so much spam and users submitting to wrong categories. If you submit to the right category and follow the guidelines your site will get listed.

Ya... post on the review topic will be perfect. Thanks for the Yahoo Answers heads up... I was actually thinking about building a tool that a you could add yourself too and it would alert you whenever a review comes up. I wonder if Angie's list will give me access to their backend to plug in.

Google Local – Is your dealer listed?

The website vendors can't really do this for the dealership as it requires authentication... but if they did not inform you then you should defiantly be asking why not.

Also when filling out the profile make sure to choose the right category mix.... for your dealership... you can use the overture keyword tool link at the bottom right of this form... to help you..

Also while you are doing Google spend extra 30 minutes and set your self up on ... MSN, Yahoo, SmartPages, SuppperPages and DMOZ... DMOZ powers Google directory... and is worth it.

To cover your self for any future yellow pages like site launches... update your data on InfoUSA and Acxiom... InfoUSA update URL is http://list.infousa.com/dbupdate.htm

While we are on topic... add Google alerts for your dealership and keep a tap on your dealership reviews... CitySearch.com, Yahoo Local Reviews, LemonFree.com and etc... take control and shape your own local search reputation.

--Farooq.

Are you missing internet leads from your dealer website?

We include all of those points that you have mentioned because of the SFE standards that is already a part of Cadillac and is rumor to be spread to Chevy pretty quickly. The problem I'm having is getting the response that they think that this is an internet response because it's too long. The message is all informative. We answer their questions but it seems like if they don't have direct questions, they see it as an Auto Response. For April we ran 39% appt to leads. That's not contacted leads. That's the actual lead. We are selling on average 81 cars a month however we are reaching for 130 to 150 cars a month. I'm speaking with my SFE advisor to see if there are better ways to get responses. If there is not a phone number we have a real hard time to get a response especially from our 1st day repsonse. I think the most popular is the one from me, the director saying how an our managers help or the one subject: Please respond. Any advise is greatly appreciated.

Are you missing internet leads from your dealer website?

Jeff-

You raise some great points. I immediately became concerned about my leads some time ago, particularly so when a dealer can switch CRMs from time to time, so the question is: Am I seeing ALL my leads? One very easy way (a little time-consuming) is to get a cc to your email address. Make an inbox for each lead provider, and when you have confirmed they have been sent to your CRM, move them to the appropriate in-box. At the end of the month, the number of leads in the in-box should match what you are paying for (or what your CRM tallies). If a server crashes, (on the CRM, or elsewhere) you simply respond to the lead in the cc email.

As far as how much information, that isn't always easy. We generally send a greeting which is a why buy from us, followed shortly by a quote on a couple of vehicles including a pre-owned one if appropriate. Then a phone call to thank them for their inquiry, and to see if they received the quote. If the answer is yes, the next question is "Which one did you prefer?"

The answer is almost always what is the difference between the two or they prefer the cheaper one. Great! Set the appointment.

That has worked pretty well for us, and we average 24-26% appt set ratio to leads.

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