Automotive CRM

Developing a CRM Strategy

CRM, what does it mean? In the most basic form, CRM is making use of your most valuable asset to your organization, your customers. After all, that is what the name implies, Customer Relationship Management. But what does it really mean and how do you create a CRM strategy that will give you the competitive edge you are looking for in this tough economy?

First and foremost, we will define CRM. CRM is putting your customers at the center of your business. The objective is to have a 360-degree view of your customers which will enable you to improve the quality and satisfaction of each customer interaction and maximize the profitability of your customer relationships, helping you create a win/win scenario. Without CRM, customer loyalty and relationship marketing, the two things that help move your customer from a transactional interaction to an emotional relationship are a lost opportunity.

Now that we have defined CRM, we need to dive into the most important aspect, creating a CRM strategy. CRM will need to be looked upon as a strategy, not a process. This strategy will need to define segments and targets. A full development of customer acquisition, retention and development plans will need to be defined. In addition, your business will need to sort out the channel strategy first, then sort out which products, services, bundles of value to offer those chosen customers.

Your CRM strategy will aid your goals to acquire, grow and retain profitable customer relationships to create a sustainable competitive advantage. With this in mind, you must remember without a doubt, customer loyalty is the key to profitability. This aspect must be an integral part of your dealership's strategy - particularly in a time of industry consolidation. Understanding customers' requirements is fundamental to business success. The most important basis for strategy development, however, is a comprehensive understanding of what drives customer loyalty and how strong those are. The key to understanding what compels your customers' loyalty lies in answering the following questions:

• How does our business define customer loyalty?
• Are our customers loyal? To what extent or intensity?
• How do we create, build or earn customer loyalty?
• How can we use customer loyalty strategically and tactically for positioning?

You will need to measure both customer satisfaction and customer loyalty. In working toward a thorough understanding of your customer, begin by looking at why your customers leave. It is essential to have a solid grasp of which factors in your business relationship with your customers are most important to them.

Listen to your customers and then begin developing your CRM strategy because if you don't satisfy your customers, they won't come back. And remember:

• CRM isn't CRM unless it affects the customer's experience
• CRM is a strategy, not a project
• CRM should improve ROI
• Technology is a means, not an end
• You want a 360-degree of your customer

These strategies will enhance your likelihood of long-term CRM success.

• Get Buy-In from all levels of Management
• Build a team and define your business objectives
• Identify who your customer is - what they want, and how they want it from you
• Agree on desired customer behaviors and define customer experience goals
• Have an integrated customer strategy
• Define and map data requirements and standardize your data.
• Dialogue with your customers and get personal
• Develop success metrics and Test, test, test
• Communicate your successes to the rest of the organization.
• When buying any new CRM system, keep it simple, only buy what you need.

At the end of the day, you will want both your customer and your business to perceive that they are getting more from the relationship than they are contributing. While your dealership is most likely defining its benefits and costs in purely monetary terms, the customer is more likely to be weighing more intangible aspects of the interaction. In any event, if there is satisfaction in both parties, the relationship is likely to last, creating our win-win scenario!