• This thread is just the tip of the iceberg.The people ahead of the curve aren't Googling for answers — they're already in here, having the conversations you haven't found yet. DealerRefresh is free.Get the full picture →

5 Reasons Why I Hate CRM Software for Car Dealers.

Nate, I was on Higher Gear for over a year and did everything that I could to make the product work for our dealer. The program is very "Big Brother", it does a decent job with showroom traffic but severely lacks in the ILM department.

The big problem that I had with Higher Gear was that opportunities were based on vehicle of interest and that is fine but it's the way the system implements it that makes it a pain. If you have a customer that is interested in 2 vehicles, Higher Gear generates a separate workplan for each vehicle. This is not a huge deal for showroom logins but a huge pain for internet leads.

If a customer submits more then 1 lead from your website or 3rd party lead provider you have just as many workplans for each lead. This forces you to go into each and every customer with more then 1 vehicle of interest and delete the work plan for each vehicle "opportunity".

Another obstacle that my sales team found annoying was the fact that you would not view all of your active customers on the fly. My sales people were use to AVV Webcontrol and liked having the flexibility of placing your customers in different status within the "active folder". This allows you to view all of their active customers on the fly. With Higher Gear you are forced to run a report each and every time you want to view customer customers in a designated status.

When working your customers in Higher Gear you are forced to work your workplan. Not a bad thing but you will find yourself jumping from screen to screen to achieve different tasks. Many things (like deleting those duplicate lead opportunities) you have to have a managers access do. I found myself spending too much time managing the CRM rather then performing real CRM/BDC functions.

Customer service was average to "sometimes" above average when compared to many other CRM vendors in this business (which basically sucks).

A nice plus is that they would send a trainer out to the dealer every month . A big props to Jeff White - he's one of their best trainers and knows the product in and out. If I were to implement Higher Hear at my dealer I would insist upon having Jeff there for the install and training.

No remote access is a huge disappointment for me (since it's server based) and up to the time we stopped using them (a little over a year ago) they still could not page my phone when I had a new customer.

With all of this said, at the end of the day a CRM is only as good as the people working it. All CRM's have their issues and shortcomings but figuring out how to work the system and implementing into your dealers process is the real answer not the software itself.

I made a pact with myself after signing our last CRM contract with eLEAD CRM. From here on out I want a working demo account that I can log into and use/test the system for at lease a month OR visit a dealer for a few days that is utilizing the vendors CRM to it's full potential.

Most CRM vendors install the system at your dealer and "train" you how to use the software..let me repeat, they train you how to USE the software! Many to most DO NOT train you how to implement the CRM software and a CRM process. There is a huge difference!

Choosing the right CRM the first time is very important. If you are constantly changing CRM systems, your sales people will recognize this and will never take it serious. Do your homework and don't base your decision on price. You get what you pay for!
 
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.
 
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?
 
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
 
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.
 
We are a new dealership from the ground up and started with the Dealersocket product. I looked at well over 20 CRM's and it came down to two vendors. I felt Dealersocket was the most comprehensive product, priced competitively, and had the best install process and after-install support.

My feelings have so far been backed up by their 4 day in house installation and training. Our staff quickly learned the system and have embraced it for the benefits it gives them. I am also impressed with the responsiveness of their support via email and phone. Although we have only used the system for about a month, I would highly recommend Dealersocket.
 
If there is one thing I have figured out working for multiple dealers, multiple lenders and now multiple CRM companies, no product is any better than the people who use it. What I always find is negative feedback about how bad someone is yet the person posting isn't even a good user of the product.

When I served my dealer community as a lender, I had many times where in just an attempt to improve relations with a store, I woudl get management to agree to approve anything within set basic parameters, (I wont bore you with the criteria but trust me when I say I took the leash off). Did dealers take advantage of it? No. Why? This is the central issue.

It seems to me that dealers seldom become and maintain a certain level of progressive thought and execution. What's the proof? I have heard that 80% of all dealerships change their technology vendors when the agreement reached full term. This may not be 100% accurate but I wouldn't doubt it. Recently both VinSolutions and DealerSocket made big time lists of natioanlly recommended publicists for high achievement in growth. Is that proof?

Kevin Frye's comments above further support my claim. He used Higher Gear, then iCar, then VinSolutions. All since 2007. Proof?

Bottom line is that you are only as good as your commitment to utlizer fully a product. Cars are complicated things. You just pour juice in them and they go. DO you really expect your CRM to be simple to?

Next time you evaluate a CRM ask yourself the follwing:

1. Will they support me and proof of it

2. Does the tool support as much or more of my fixed operations as it does my variable operations? Fixed ops are the key to nearly every store.

3. If it is easy to use a salesperson should be able to make 3 - 5 hash marks for the numbe rof times their fingers had to type something on a keyboard leading up to taking a deal to the tower.

4. Your next CRM should be able to "Stop" or "Cease" it's automated workflow plan (Day 1, 3, 5, 7, etc follow up tasks) tasks or actions anytime someone in the dealership owns and is being responsible for the deal. Many CRMs will fire automated redundant work tasks even though the sales person has already set up a plan of action in the system.

5. Your CRM must should be certified and real-time integrated with your DMS. This isn't always possible but many CRM providers will disguise the truth to earn your business. A nightly file drop is not what I am talking about here. Pull but not push doesn't cut it either.

6. How does your CRM show you it's ROI? I only know of one CRM that will literally show you when it's working and can be credited for business. With the average car salesman forgetting their non-sold customer in 2-4 weeks, (Or so I have been told / experienced) your CRM can't, shouldn't and when used right wont't.

7. I think your CRM should create a culture of tranparency and a culture of accountability. I am not talking about just for the dealership either. Will your CRM display when there is a push error wih the DMS with out burying the info? This little feature will save you painstaking troubles down the road...trust me.

8. Finally, service after the sale. I have only experiencd one CRM that on their own dime partners with you on a regular and consistant basis, even coming to the store to consult on the tool so that your results can be targeted and modified as you grow and change. Most CRM companies focus too much on selling you the product and not ensuring your success. Does your CRM reps pay get negatively affected when your usage drops or you are not performing? That is commitment.