According to recent surveys, the cost of finding new customers is estimated to be three to five times that of retaining existing customers. One remedy to this issue is to implement a customer relationship management system (CRM). A good CRM will track and manage all aspects of interaction that a company has with its customers, whether it’s sales- or service-related. A good CRM is invaluable, as it will enable you to better understand the customer, retain old customers and attract new customers, decrease customer management costs, and increase profitability. In this video, Hunter Swift of Dealer Socket shares the three things to look for when choosing a CRM.
Perhaps most obvious, when selecting a CRM, you need to look at the technology. Technology has changed not only the way companies interact and communicate with customers, but also the buying behaviors of customers. The strategies and processes of a good CRM system will utilize technology to collect, manage, and link information about the customer with the goal of letting you market and sell services effectively. Before choosing a CRM, think about if the system will fit your needs, as well as how it will enhance your preexisting marketing campaigns.
Some CRM systems require only basic setup and preparation before organizations can begin using them, while others require some substantial customization before they can be implemented. Once the system is initially implemented, you should be able to create and implement new processes with ease. As your company grows, so will your customer base, so being able to easily adapt your processes is imperative. A good CRM will enable you to continually update and improve your processes to better serve your customers.
Although the technology and process are important elements of a good CRM, the people are easily the most important. To be successful with your CRM, you need people to train you and support you as you learn the ins and outs of the system. CRM systems offer a wide range of tools for you to learn and master, and it will often require multiple exposures to these tools for you to gain the skills needed to succeed with your CRM. When selecting your CRM, be sure to learn if the system provides written documentation, videos, self-paced trainings, or in-person trainings.
Check out this article to learn more about what questions to ask when selecting a CRM. For more tips and tricks from the best and brightest in the auto industry, download our ultimate recap of NADA 2014 here.