How Many CRM Systems Do I Need?

Originally published in AutoSuccess Magazine Oct. 2009

Over the past few years CRM usage in dealerships has greatly increased and is still a big priority for most dealerships. As internet leads became more and more important, it has become increasingly more important to have CRM solutions that were designed to efficiently handle internet leads. The problem a lot of dealers have is their CRM doesn’t do a very good job of handling internet leads. To remedy this problem, dealers purchase an Internet Lead Management (ILM) solution which is more or less a 2nd CRM solution designed only for internet leads. ILM software, unlike traditional CRM software, is typically web based since it is designed to handle internet leads.

Internet Lead Management (ILM) solutions are great for your internet department and have special functionality that makes it easy to handle internet leads. Some of these special functions include:

• Distributing and routing leads to your internet sales staff
• Sending text messages to alert your staff about the new leads
• Allowing responding to leads on mobile devices to improve response times
• Send automated emails to customers to confirm their leads were received
• Emailing vehicle details, brochures, photos, and videos to customers
• Manage follow up processes by specific internet lead sources

ILM software solutions can help take care of deficiencies in your CRM software. The problem is your dealership is no longer working together as one team. It is important to have your showroom and internet department working together on the same CRM system.

Here are some of the downfalls of having a separate CRM and ILM in your dealership:
• ILM only solutions don’t show you the full sales and service history the customer has had with your dealership.
• Separate ILM and CRM solutions create “skating” problems between the showroom and internet department.
• When an internet customer comes in, you have to additionally log them in to your CRM to desk the deal and do unsold follow up.
• Does your internet department do sold and unsold follow up in the CRM, ILM or both?
• The ILM has powerful email functions that are not available to your showroom salespeople. Don’t all your salespeople need to email their customers?
• Reporting to see what is going on in your dealership becomes more difficult

Automotive CRM solutions have evolved over the last few years to better handle internet leads. All good CRM solutions are now web based to better handle these internet functions. It is no longer necessary to have a separate ILM solution. If you have to purchase a separate ILM, then you are really paying more money to make up for problems with your current CRM. You would be much better off purchasing a new CRM that was designed to handle internet leads as well as handle all your CRM needs.

If you are stuck in a CRM contract and desperately need a separate ILM to properly run your internet department, then I would definitely recommend doing so. When you pick a new ILM system, pick one that also has full CRM capabilities. Doing so let’s you try out the new vendor and will make the CRM switch a lot smoother when your current CRM contract is up.

If you are considering purchasing a new CRM solution, here are some of the advantages to web based CRM systems. These are some of the advantages to web based CRMs:

• No expensive servers to purchase or manage in your dealership
• Less likely to have contracts, typically a pay-as-you-go model
• CRM is available securely from anywhere via a web browser with no software to install
• Software is enhanced more often since the vendor can update it in one place
• Ideal solution for dealer groups who need reporting and BDC functions across stores
• Enhanced email features to allow easily sending vehicle details, brochures, photos, and videos
• Mobile access from your Blackberry, iPhone or other smart phones

As if having a separate ILM and CRM wasn’t bad enough, some dealers even have a 3rd CRM or BDC solution to handle the follow up of their service department. There are now good CRM solutions available that can handle your showroom, internet and service department together. Tying it all together lets you see a customer’s complete history and value to your dealership from one place.

It is important to have one automotive CRM software solution to keep track of all aspects of your customers and keep everyone in your dealership connected. Having one CRM with all the data in one database also allows you to do some amazing reporting and marketing campaigns.

Matt Watson
CTO
VinSolutions

Sorry, your CRM technology is outdated!

CRM technology isn't new. They all do the same thing, right? Manage tasks, schedule follow up calls, mail letters, and other basic things. Sure, they all do that by the year 2000 standards, but this is 2009! The CRM of 2009 can do so much more and do it much more intelligently.

CRM Technology for car dealers continues to rapidly change. The problem is, most car dealers don't even know about it. They are locked in to long term contracts. Contracts with products that in technology years would easily be considered dinosaurs.

The best way to purchase any type of software product is from a vendor that sells it as a monthly service with no contract or strings attached. You also want to ensure that the vendor is still heavily investing in the technology to continue improving it. Because the second they stop improving, is the second it becomes a dinosaur. You aren't looking for a vendor, you are looking for a partner.

I know several of the major CRM vendors who don't even have an R&D budget. They haven't improved the software recently and nor do they have any plans to. Where does that leave your dealership in terms of keeping up with the technology?

Has your out dated CRM solution got you stuck in a low gear?

OK, time for me to get back to working on the automotive CRM solution of 2010.

Matt Watson
Chief Technical Officer
VinSolutions
http://www.vinsolutions.com

VinSolutions and Dealer Track’s Arkona DMS Integrate http://ping.fm/bMNiQ

VinSolutions and Dealer Track’s Arkona DMS Integrate

VinSolutions integrates with DealerTrack’s OpenTrack, a program providing seamless, secure connection to the DealerTrack Arkona dealer management system (DMS). The integration interfaces with customer, vehicle, F&I, general ledger, service and parts data, providing a secure, bi-directional connection between our mutual dealer clients and the DealerTrack DMS.

Overland Park, KS, June 11, 2009 – VinSolutions announced today they have completed their integration with DealerTrack’s Arkona DMS. Providing a seamless, secure connection for their mutual dealer customers enhances efficiency and productivity. “We are constantly looking for ways to supplement our offerings and make our clients’ lives easier,” said Doug Kinney, CEO of VinSolutions. “Allowing us to provide our mutual clients with secure, bi-directional access to their data sets in a cost-effective open platform does both.”

The OpenTrack program allows for secure data encryption and either batch or real-time data processing, and interfaces with customer, vehicle, F&I, general ledger, service and parts data. “With OpenTrack we are truly delivering on our promise to the marketplace that the DealerTrack DMS will be an open and cost-effective platform,” said Raj Sundaram, senior vice president of the Solutions and Services Group at DealerTrack. “This is a win-win for all parties.”

Dealers using DealerTrack’s DMS can access this feature by clicking on the “Push to DMS” button in VinSolutions’ desking module.

About VinSolutions (http://www.vinsolutions.com)

An industry-leading developer of Internet-based desking, automotive CRM software, and Internet lead management (ILM) software, VinSolutions provides 24/7 dealership sales and marketing information to their clients anywhere Internet access is available. In addition to CRM, ILM and Inventory control products, VinSolutions builds custom dealership Web sites, uploads inventory photos, offers their clients quality training and consulting services, as well as valuable customer support. VinSolutions is GM, Ford, Chrysler, Subaru and Audi certified and has working relationships, alliances and integrations with several automotive software service providers such as Kelley Blue Book, CarFax, AutoSoft, Inc., Autodata, RouteOne and DealerTrack.

About DealerTrack

DealerTrack’s high-value software solutions for the automotive retail industry enhance efficiency and profitability across every department in a dealership. DealerTrack’s Dealer Management System (DMS) delivers flexible and cost-efficient functionality to manage dealership data and operations. Its Inventory Management, Sales and F&I, and Compliance solutions help optimize dealership inventory, increase sales and protect against legal risks. DealerTrack operates a leading online automotive credit application network, which includes approximately 19,000 dealers and over 730 financing sources. For more information visit www.dealertrack.com.

Using "similar vehicles" to sell more cars

"Similar vehicles" is one of the best functions of a good CRM system. Here are a couple example of how you can use this excellent functionality.

Initial auto responders. Rarely do customers buy the car the inquired upon. So why not give them some more options right up front? More options to contact you and come to do your dealership?

Trying to do this manually would take forever and be nearly impossible. So it takes smart software to compare the year, make, model, bodystyle, price, mileage, engine, and all sorts of other factors to evaluate which vehicles are the closest matches.

In this example, the first vehicle is what they inquired upon, and the next 4 are similar vehicles. This same technology can be used to supply similar vehicles to a new car lead, or similar new cars on a pre-owned lead.

Unsold follow up - Weeks later the car they were interested is now gone. Why not send them some similar vehicles that you now have available?

Matt Watson
VinSolutions
Automotive CRM Software provider

VinSolutions Automotive Software Solutions

VinSolutions’ suite of products spans the scope of a dealership’s needs. Whether you own a single store, or command a multi-rooftop operation, MotoSnap is the perfect software solution. A proven trendsetter in on-demand Automotive CRM Software, Dealership ILM, Dealer Inventory Management Control and Custom Automotive Dealer Websites. VinSolutions’ development team continuously advances software technology through leading-edge innovations. Our fully integrated Business Development Center (BDC) and Dealership Desking modules round out our complement of dealership Internet software solutions.

VinSolutions not only offers world class Internet software, but we provide exceptional service products as well. Our Training and Consulting personnel are well-versed in automotive sales processes. Our design team creates fully integrated Dealer Web Sites intended to attract vehicle shoppers and convert them to vehicle buyers. Our automotive SEO experts will get help your website rank higher and generate more website traffic.

All VinSolutions software solutions are available with NO CONTRACT.

Google Notebook

Google Notebook seems pretty cool. I made one!

http://www.google.com/notebook/public/04514591006850580197/BDR12SgoQ9_resckj

Leveraging YouTube for Search Engine Exposure (Video SEO)

My last post was about a common myth about search engines: "Search Engines Love Video"

Search engines don't love video, they love popular websites. YouTube is one of the most popular websites there is and it has a very high Google Page Rank. So any content created on the site stands a good chance to rank well in the search engines. Simply putting a video on a webpage alone doesn't make google love it.

"Video SEO" is really using video to create content on YouTube. There are two main reasons every dealership in the country should use YouTube:

1. YouTube is the 2nd most popular search engine there is. It gets more searches daily than Yahoo, MSN, Ask and all others except for Google. So there are a lot of users searching for virtually anything. You need to get your products and your dealership in front of those millions of users. Luckily YouTube will let you do it FOR FREE.

2. Posting videos on YouTube has some intrinsic indirect SEO benefits. Listing videos on YouTube is not going to create more direct traffic to your website. What it will do is give you a chance to get good penetration in the search engines for long tail key phrases and other phrases that you post videos for. Search engines will drive traffic to your videos on YouTube which will then in turn drive more traffic to your dealership.


What kind of videos should you post on YouTube?

1. Videos about your dealership. Give your current and potential customers a glimpse of your showroom, service department, parts department, and more. Highlight your history, what separates you from your competition, and anything else that would be relevant about your dealership.

2. Your TV commercials. This is probably the easiest thing to do. Get a digital copy of your commercials from your ad agency and upload them to YouTube. You never know, they could be the next viral video sensation on the Internet!

3. Videos of your inventory. As you take photos of your vehicles and prepare them to sell online, add to that process by taking a quick video of your vehicles. If this process seems technically challenging, a product like VinCamera from VinSolutions can make it simple.

4. Anything else you can dream up! Interviews of your staff, video of the hot dogs you give away on busy saturday afternoons, video of your special Mustang club that gets together every month. Anything is possible!


Now of course you should also post all these videos on your website where they appropriately fit in.

You can also include all your videos on YouTube right on your website like so:

http://johnsonautoplaza.com/youtube.aspx
http://www.roosterbush.com/youtube.aspx
http://pontiacindy.com/youtube.aspx

Posting links on your website back to your YouTube videos will help cement to the search engines that the videos are important and will improve their performance in the search engines.

You can also use all this video content as part of your internet and BDC department. You can use your ILM/CRM system to email videos to your customers. For example, send an email to your sold customers with a video about your service department and their scheduled maintenance that needs to be performed. Anything is possible!


For more information visit http://www.vinsolutions.com/motosnap-videos.aspx

Matt Watson
CTO
VinSolutions

Defining Web 2.0 – Part 1: We're Talking Back

“Web 2.0” is a buzzword used all over the place these days. So what does it mean? Web 2.0 actually means a lot of different things and it means different things to different people. This is the first of a multi-part series attempting to define Web 2.0. Follow my blog at http://www.drivingsales.com/blog/mwatson/ for future posts.

Part 1 - “We're Talking Back”

One definition of Web 2.0 is the ability for everyday people to change the Internet.

A few years ago the Internet was mostly created by businesses for shopping, news, travel, research, forums and other important things. The Internet was largely a “read only” collection of information where everyday people had no input.

Today, a very large percentage of the content on the Internet was created by everyday people. Wikipedia, blogs, Facebook, MySpace, YouTube and dozens of other websites are all based on content created by every day people. We now have the ability to create our own web pages (ex. MySpace & blogs) and make our mark on the Internet. You could say that Web 2.0 gave us our freedom of speech online.

So how did we get here? Well... it didn't happen over night.

In 1996 web communities like Geocities became common. They allowed users to create their own websites. By the end of 1997 Geocities had 1 million users and was the 5^th most popular website on the Internet. Geocities was eventually purchased by Yahoo and still lives on today as a simply way to create your own website, including a blog.

Blogs aren't really that new either. A web blog, as a concept of online commentary or online diaries started in 1993. Although the term “blog” didn't come around until 1999. However, blogging didn't become mainstream until 2004. I created my first blog in 2003... and it still exists today.

Web 2.0 can mean a lot of things to a lot of people. To me, one of the things it means is we have the ability to create the content of the Internet.

We're Talking Back.

Matt Watson
Chief Technical Officer
VinSolutions

Digital Documents - How do I email my delivery documents to a customer?

Anyone who uses an automotive CRM that prints on plain paper via a laser printer can probably already create digital documents today. Most people probably just don't know how to.

If you're using pre-printed forms, then you can't create digital docs from those of course. (As a side note, you might consider switching to forms printed via a laser printer to save yourself some money.)

So how do you use your current CRM to create "digital documents" you can email to a customer?

Easily! If you can print the form, you can create a digital copy. If your CRM exports the forms to a PDF to print, well then simply click the save button and email the files. If not, then you can install a utility like Adobe (not reader edition) or dopdf (there are other products like this) to print to a PDF that can then be saved and emailed.

So the key is... any document that can be printed on a laser printer can be printed to a PDF and emailed, even if it isn't a PDF (using programs like Adobe, MS Office, dopdf and others). Now of course that involves more steps than maybe just a "email to customer" button.

Of course there are some CRM vendors that have the nifty "email to customer" functionality built in. I have also seen some companies that tout "digital documents" as a product. To me it just seems like a basic ILM/CRM/Desking function, not really a product in itself... maybe I'm wrong on that point?

You could also use the email functionality to email the documents to someone within the dealership or to a 3rd party vendor. Like emailing a book out sheet to the bank, or a desk manager emailing a salesperson a purchase proposal.

Matt Watson

VinSolutions