What is CRM?
A screenshot from a Reynolds SalesVision system (circa 1999?)

What is CRM?

 Seriously. Yes, I know CRM = Customer Relationship Management, and that is the source of my question. I just went to the NADA 2021 and queried “CRM” on the exhibitors page and got a result of fifty eight “CRM vendors.” FYI, they’re not all CRM vendors. So, what is a CRM and what should a CRM be.

One would would think CRM is a tool for managing a relationship with a customer...right?

More often than not CRM is a tool for managing a relationship with a prospect, or an opportunity. Often it is a sales pipeline management tool on steroids. Which leads me to a question. If it is a “Customer” relationship tool, what’s in it for the customer? Which leads to more questions.

  • Is it a portal to access all the documentation on their vehicle(s) – service history, sales documents, warranty/extended warranty …?
  • Does it provide the customer with all the contacts the customer has come in contact with your business?

The good news is CRM is getting closer to what it should be – a tool for managing the relationship with a customer, and prospect. What do I mean? Well, initially automotive CRM tools were only interested in managing vehicle sales relationships. Service and parts were out, and they only were outward looking (i.e. benefiting the dealership). That has changed; however, most offer fixed and variable operations as separate packages. My issue is that if you ask a customer if they are a fixed or variable customer they’ll look at you like you’ve grown a third eye. They see themselves as a customer.

What do you think?


Nathan Sernoffsky, MBA

Partner Success Manager

4 年

"Are you a fixed or variable customer?" I love it! I worked on both sides of the equation, dealer and OEM. There are a few dealers that get it, but not many. A CRM should help you manage your relationship with your customer. It would have the option/opportunity for your customers to identify themselves as customers. And it would forget about getting their data just to sell it. You know it when you see it. The best case is when employees act as the CRM. They know the customers, greet them by name and welcome them. They talk to customers about everything but their car. When I worked for Subaru corporate, we always asked our dealers and customers, how many cars have they bought? Where do service them? We would do just about anything for our "customers" because we knew we had a relationship.

Dr. Juraj H.

Data Analytics & Automotive Applications Expert for Dealerships | Guiding Data-Driven Strategies for Growth & Competitive Advantage

4 年

I think this old "CRM" cannot work longer; it just does not fit with last year. I believe we are on the edge of massive changes, and we could even ask who our customers are

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