Pub. 12 2014-2015 Issue 3

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 4 , 2 0 1 4 12 new jersey auto retailer Dealers commonly use only 30% of their DMS software. That might not be a major problem in al l cases, unless i t is the WRONG 30%. This article will explain how dealers can get the most out of their DMS systems. A computer system is installed in a dealership for three main purposes. First, it should efficiently manage the dealership’s data. Second, it should result in cost savings due to a reduction in clerical errors and the number of people needed. Third, the system should help the dealership generate more revenue. The first and second are achieved by most dealers but the third is where most dealerships fall short. The two large growth areas for new software are in new and used car sales and the service department. The battle is to de- cide whether to bolt on a third party software or go with the integrated DMS proprietary software. A battle is currently being waged between the DMS and stand- alone Customer Relationship Management (CRM) software. In fact, throughout the industry, many DMS providers are rewriting and improving their CRM and fighting to keep out the competition. How does CRM help Sell cars today? The CRM brings the ability to filter through thousands of opportunities and send a relevant message— a message that really connects the dealership to the needs of each individual customer. Years ago dealers mass-marketed to tens of thousands of people through radio, television, newspapers, and direct mailings. These were shot gun approaches. Today we have laser accurate filtering and contact tools to reach out, first to our own custom- ers, and then prospects. Make Your CRMRepresent You One very successful dealer contacted his customers every three months. It did not guarantee the next vehicle bought by that customer would be from his dealership, but it usually gave him first shot at selling him his next car. Take your CRM and customize every letter. Do not fall into the pit of canned responses to your customer. Every dealership has a style. It might be a slogan or service motto. Each and every mailing must ref lect what makes your relationship unique. The customer might own the car for three to four years. That means a contact every 3 months will reach beyond typical birthday and anniversary letters. Dealers are best served by a CRM system that allows them to filter the opportunities and determine how the customer wants to be contacted. Remember, the medium is just as important as the message. Some people prefer a personal phone call, while others might prefer an email or text. Tailor your communications to the vehicles your cus- tomers prefer (and are more likely to respond to). Getting the Most For Your Dollar From Your DMS Provider BY PAUL GILLRIE