The journey of a person who wants to buy a car does not start at the dealership. Instead, it starts with research. They ask family and friends and try to find the best vehicle dealership.
But as a car dealership owner, how can you win the trust of a prospective buyer even before you meet them? The answer is through automotive CRM.
The automotive industry is cutthroat. Its foundation is trust between dealership owners and clients. You need to manage customers effectively to succeed. Automotive customer relationship software streamlines operations, boosts sales, and improves customer relations.
30-Second Summary
To truly stand out in the competition of the automobile industry, you need to implement a CRM system. Whether you are an established dealership or just starting out, it helps in streamlining your operations and managing lead generation.
In this guide, you will learn about automotive CRM, why it is important for dealerships, its benefits, implementation, popular CRMs, and much more.
What is Automotive CRM?
Customer relationship management in automotive industry serves as the foundation for success. Automotive CRM is a software that is designed to help car companies with sales, marketing, and customer service.
You can collect leads, create a multi-channel sales operation, and build stronger customer relations. Using this software, companies optimize customer-centric processes and gain a competitive edge by delivering top-notch services.
Companies using this CRM see
- Increased revenue
- Better access to clients’ data
- Enhanced customer retention and conversion rates
Why CRM for Automotive Industry Matters?
The automotive industry has changed significantly. 90% of buyers start searching online. Dealership owners who follow up within minutes have a far higher chance of winning the deal than those who follow up in hours.
However, many dealerships still juggle multiple spreadsheets, databases, and disconnected systems. It makes responding to customers difficult.
Auto CRM software solves this issue by
- Automating follow-ups for quick responses
- Centralizing vehicle and customer data
- Tracking leads and interactions in one place
- Increasing ROI by converting leads into customers
In today’s time, this software is not just a tool. It has become the backbone of modern dealerships’ success and growth.
Benefits of Automotive CRM Software
This software provides an organized means to manage multiple aspects of dealerships using a central and secure cloud-based system.
Adopting it has several benefits.
Contacts and Leads Organization
Almost every company creates an omnichannel presence to generate leads. It means that they reach the audience on several platforms, including social media, websites, online and offline ads, third-party lead generators, OEMs, and walk-ins.
A CRM stores all the data in one place. It also helps you identify the platform that is generating the most leads, making you more efficient at lead management.
Marketing Management
Another benefit of car dealership CRM is that it runs personalized and targeted marketing campaigns across multiple channels. It segments your target audience based on demographics, buying behavior, and other factors.
This software also shows you lost sales, closed deals, customer satisfaction rate, the result of marketing efforts, and customer query response rate, along with other information.
Deal Management
A CRM solution ensures that you leverage every touchpoint in the sales procedure. Through it, you can create a workflow that guides your leads through the sales pipeline. Moreover, this process can be automated to increase the productivity of your team.
CRM also comes with cold-calling systems. It reduces the time that the sales team spends on calling leads manually so they can focus on other important tasks.
Communication
An automobile CRM can compile all your interactions across different channels in one place. You get immediate access to all the previous conversations with your customers, whether these are calls, emails, or walk-ins.
It also makes it easy for distributed sales teams to delegate and monitor leads assigned to each team member. It enables every sales rep to be on the same page when interacting with a customer.
Compliance
The job of a sales rep requires them to call customers. It can also disturb customers and distract them from what they are doing at the moment. For this matter, the Telephone Consumer Protection Act (TCPA) was passed.
An automobile CRM is TCPA compliant. Using it, your business can avoid getting penalties or fines.
Features of Automotive Customer Relationship Management
You can enhance your customer management strategies using an automotive CRM. These systems have numerous features.
Lead Management
Automotive CRM enables companies to get leads from multiple platforms and qualify and track them. It ensures that you do not miss opportunities and get more chances of converting leads into loyal customers.
Sales Pipeline Management
It is easy to visualize and manage your sales pipeline through a CRM. It allows you to track the progress of each lead and identify any bottlenecks. You can allocate all your resources easily and invest your energy in deals that have a higher closing probability.
Customer Engagement
This software makes it easy for dealerships to stay connected with their customers through emails, calls, and text messages.
Furthermore, you can build strong customer relations through automated messaging and personalized outreach.
Customer Data Management
You can manage all the data of your customers in one place. It includes contact information, service records, and purchase history etc. Dealerships are able to provide personalized services through this comprehensive view of customer data.
Marketing Automation
Automobile CRM also automates marketing, such as email campaigns and targeted ads. It saves time and helps the dealership in reaching the right audience with the right messages and at the right time. Marketing personalization also improves the effectiveness of the dealership’s efforts.
Some other features include
- Integration: Sync with Dealer Management System, inventory software, and marketing platforms.
- Reporting and analytics: Customizable dashboards for real-time performance tracking.
- Mobile access: User-friendly interface for distributed teams in the field.
- Service and Post-sale Tools: All tools for cross-selling, upselling, and service scheduling.
Step-By-Step Implementation
A CRM in automobile industry is as effective as its rollout. It means that jumping in without a clear roadmap is just another wasted tool and investment.
To start, you need to have clear objectives. Ask yourself, “What do you want to achieve with this software?”
After understanding your goal, it is time to implement.
Assessment: Evaluate existing sales and processes to see where you lack.
Setup and Customization: Integrate it with your DMS, inventory tools, and marketing systems.
Staff Training: Train your team to help them understand how to use the system effectively.
Optimization: Keep monitoring the performance of your CRM and optimize it as you go to enhance its effectiveness.
Training Strategies for the Staff
Comprehensive training to onboard your dealership staff is necessary. You need to make sure that your team is confident in using the CRM and explore it to its full potential.
It is also essential to have clear onboarding strategies for your team. Only a knowledgeable team can deliver maximum results for your dealership using the system and its functionalities.
Additionally, start giving incentives and other rewards to team members who effectively use CRM and achieve positive results. It will encourage adoption and reinforce the use of CRM for the success of the dealership.
Choosing the Right CRM Tool
Before choosing a CRM tool, understand the particular needs of your dealership. Here are four key qualities your CRM tool should have.
Scalability: Select a CRM that is easy to scale as your business expands.
Integration Capabilities: Make sure that your automotive CRM integrates with your existing tools, such as DMS, marketing platforms, and accounting software.
Ease of Use: Choose a software that is easy to navigate for your team. You can easily train your team if the system is easy.
Customer Support: Consider the support provided by the vendor. Always choose the one that has 24/7 support and a dedicated account manager.
Best CRM for Auto Dealerships
Below are some of the best automotive CRM solutions trusted by many.
Salesforce
Salesforce automotive cloud-based CRM has the power of AI that helps sales reps take the best next step.
- It allows team members to call clients directly through the browser.
- It offers reporting and analytics to track the performance of your sales agents.
- It enables the sales team to customize dashboards according to the dealership’s needs.
Pricing Plan: The prices of its four plans are: Essential is at $25 per user per month, Professional is available at $75 per user per month, Enterprise is $150 per user per month, and Unlimited is $300 per user per month.
Leadsquared
Leadsqaured captures leads from all channels and automatically distributes them to the right showrooms and consultants.
- It improves your customer experience as well as markets your car dealership business effectively.
- It can track interactions from calls, email, text messages, test drives, and communication through any other channel.
- It guides you through lead qualification and scoring and shows you the required sales actions.
Pricing Plan: It has four pricing plans that start from $1,250 per month per user.
Freshworks CRM
Freshworks CRM has many features to streamline your entire sales process.
- It has an AI called Freddy to help your team focus on the right lead for more closed deals.
- It provides insights into your sales pipeline at every stage.
- It has a forecasting feature (available only on the Enterprise plan) that analyzes every deal to guide you with the next best steps.
Pricing Plan: It has three plans. The Growth is available at $15 per user per month, Pro is $39 per user per month, and Enterprise is $69 per user per month.
Zoho CRM
Zoho CRM has a powerful system that enables you to engage with your leads and turn them into customers.
- It helps you make smarter business decisions by streamlining your lead nurturing process.
- It has an advanced AI named Zia that helps with deal predictions (available at advanced pricing plans).
- It sends out alerts when it is the ideal time to contact your leads based on your past successful interactions.
Pricing Plan: It comprises four pricing plans: Standard Edition at $14 per user per month, Professional Edition at $23 per user per month, Enterprise Edition at $40 per user per month, and Ultimate Edition at $52 per month per user.
Harnessing AI and Predictive Analytics
Another advantage of using an automobile CRM is that many advanced systems use AI. This feature helps dealerships in multiple ways.
- It can predict buyers’ intent by analyzing communication and browsing patterns.
- It scores leads automatically so that the team prioritizes the right prospects.
- It has intelligent chatbots that answer the queries of customers instantly.
- It recommends upsells such as service packages and financing options based on customer history.
Cross-department Communication
Having a CRM system allows you to collaborate with multiple departments.
- The sales department can see history for better trade-in offers.
- Service teams can provide personalized maintenance recommendations based on customer purchase history.
- The marketing team can run segmented campaigns based on the data provided by sales and service departments.
When every department is collaborating on a unified platform, the dealerships eliminate silos and provide the best customer experience from first query to long-term loyalty.
Future Trends in Automotive CRM
Let’s explore the future trends that will change the automobile CRM software.
- AI-powered virtual assistants that will answer the queries immediately.
- Voice and conversational interfaces will allow the sales department to update CRM with voice commands.
- AR and VR showroom experience will be integrated with CRM for personalized recommendations.
- Blockchain integration will provide transparent vehicle history and secure transactions.
Final Thoughts
Automotive CRM has become a necessity in the current times. As the automotive industry is highly competitive, it helps you stand out by streamlining your dealership tasks. It allows you to boost sales by managing leads for long-term success.
Furthermore, CRM in the automobile industry is scalable and powered by AI, making this investment worthwhile for your business.
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FAQs
What is an Automotive CRM?
An automotive CRM is a software designed for vehicle dealerships to manage customer interactions, lead generation, sales, and service all in one place.
Is Automotive CRM different than generic CRM?
Yes, automotive CRM is particularly designed for dealerships and their tasks, such as handling test drives, trade-ins, vehicle inventory, and service reminders.
How can CRM software help my Dealership?
It can provide a comprehensive view of your customer base, streamline operations, and allow a personalized experience for improved customer satisfaction.
What Features should I look for in an Automobile CRM?
Some important features are marketing automation, lead tracking, customer service tools, reporting, and mobile access.
Is Customer Data safe in Automotive CRM?
Yes, reputable CRMs adhere to security regulations. They comply with data privacy laws, offer encryption, and backups for security.
