Garbage In, Garbage Out: Turn Your CRM From Trash to Treasure
2 likes617 views
The document discusses how most dealerships are not properly utilizing their customer relationship management (CRM) systems. It notes that CRMs are often not set up correctly, staff are not trained on how to use them effectively, and they are not being used to manage customer relationships and maximize sales opportunities. Proper use of a CRM, including customizing it for the dealership and holding staff accountable for tasks, could increase sales by up to 30% according to the information provided. The document advocates for radical changes in how dealerships approach and leverage their CRM.
Garbage In, Garbage Out: Turn Your CRM From Trash to Treasure
- 1. Garbage In, Garbage Out: Turn Your CRM From Trash to Treasure Sean V. Bradley, CSP President and Founder |Dealer Synergy| Audubon, NJ 267-319-6776| seanb@dealersynergy.com @seanvbradley #NADASHOW
- 2. The views and opinions presented in this educational program and any accompanying handout material are those of the speakers, and do not necessarily represent the views or opinions of NADA. The speakers are not NADA representatives, and their presence on the program is not a NADA endorsement or sponsorship of the speaker or the speaker’s company, product or services. Nothing that is presented during this educational program is intended as legal advice, and this program may not address all federal, state, or local regulatory or other legal issues raised by the subject matter it addresses. The purpose of the program is to help dealers improve the effectiveness of their business practices. The information presented is also not intended to urge or suggest that dealers adopt any specific practices or policies for their dealerships, nor is it intended to encourage concerted action among competitors or any other action on the part of dealers that would in any manner fix or stabilize the price or any element of the price of any good or service. 2
- 3. 3 About Sean V. Bradley, CSP ● Founder & President of ● Best-Selling Author - ● 9-Time Convention Speaker ● Conference Speaker ● 9-Time Dealers’ Choice Awards Winner ● 19+ Years in the Automotive Industry ● 35,000+ Automotive Professionals Trained ● 1,300+ Unique Rooftops
- 4. What you are going to learn... • How to turn your CRM into your ATM • Turning your CRM from TRASH to TREASURE 4
- 5. Staggering Stats from Customer records in the DMS not matching the CRM Industry Average: 340 Best in Class Average: 57 5
- 6. Staggering Stats from The amount of salespeople completing CRM Certification Courses: Industry Average: 74% 6
- 7. Staggering Stats from 54% of employees hired for Customer-Facing positions said they received enough training. 7
- 8. Current Situation Analysis • Over 80% of dealers are NOT using the CRM the right way. • Most dealers’ CRMs aren’t even SET UP the right way! 8
- 9. Current Situation Analysis • The average ROI for CRM is $8.71 for every dollar spent. • 22% of salespeople still don’t even know what the CRM is! Source: Nutshell 9
- 10. Current Situation Analysis • CRM application can increase sales by up to 29% – To be specific… if you average 100 units. With PROPER “CRM” protocol you can expect 130 units per month! Source: Nutshell 10
- 11. Current Situation Analysis • Sales reps saw an increase in productivity by 26.4% when they added social networking and mobile access to the CRM. Source: Nutshell 11
- 12. Current Situation Analysis • 74%of CRM users say their system gave the improved access to customer data. – With data more readily accessible, it is easier to track customer satisfaction and retention. Source: Nutshell 12
- 13. Current Situation Analysis • Without CRM, 79%of leads fail to convert. • Conversion rates can improve by 300%with a CRM properly in place. Source: IBM 13
- 14. Current Situation Analysis • CRM can reduce the cost of leads by 23% Source: IBM 14
- 15. Current Situation Analysis • 83%of Best-in-Class dealers received regular automated reports from their CRM. • Only 44%of Average dealers were doing this. Source: Auto Dealer Monthly 15
- 16. Current Situation Analysis • The average dealers set less appointments, which led to fewer opportunities, missed customer connections, and lower profit. Source: Auto Dealer Monthly 16
- 17. Current Situation Analysis Most Dealerships DO NOT: Customize “Action Plans” (Processes) in their CRM… The Dealers that have “Action Plans” unfortunately MISS important Action Plans like: -Trade Appraisal- -Credit Applications- -Special Finance- -Specific Lead Sources- -N/U- -Dead Deals (ALL Scenarios…)- 17
- 18. Current Situation Analysis Most Dealerships DO NOT: Have the RIGHT “Sources” in their CRM Have ALL of the Proper Integrations Social Media Click to Call 18
- 19. Current Situation Analysis Most Dealerships DO NOT: Have ALLof the Proper Integrations Call Tracking Inventory Desking DMS Reverse Look-Up etc… Have the RIGHTContent Email Templates HTML Templates Video Templates 19
- 20. Current Situation Analysis Most Dealerships DO NOT: ● Have the RIGHT Content ○ Text Templates ■ HTML Templates ■ Video Templates ○ Chat Templates ■ HTML Templates ■ Video Templates 20
- 21. Current Situation Analysis Most Dealerships DO NOT: TRAIN Correctly or AT ALL for CRM… CRM Companies DO NOT Train on: -Psychology- -Strategy- -Content- -“How to Use CRM” to Sell or Service Prospects / Clients…- 21
- 22. Current Situation Analysis Dealers average 75 - 80+ percent attrition. With the high turnover, even if dealers did train, attrition kills Dealers and Dealer Groups... 22
- 23. Current Situation Analysis Most Dealerships DO NOT: Use the CRM correctly on an Operational Level: Meaning that Showroom Sales Consultants for the MOST part do NOT use the CRM to Time Manage, Project Manage, Follow Up with ALL: Prospects Clients Referrals 23
- 24. Current Situation Analysis Most Dealerships DO NOT: Use the CRM correctly on an Operational Level Managers ABSOLUTELY Do NOT use CRM the right way… They DO NOT use the CRM to “Manage” their Sales Teams Productivity Production 24
- 25. You Can SAVE Money! - Example 100 units per month = $64,000 / $640 per car sold… (10 Sales Consultants, 2-3 Managers) 25
- 26. You Can SAVE Money! - Example THIS IS A LIE! 26
- 27. You Can SAVE Money! - Example Out of the 100 units… ...How many should have happened ANYWAY? 27 100
- 28. You Can SAVE Money! - Example Lease Retention? 28
- 29. You Can SAVE Money! - Example Prior Customers? Maybe 20 - 30 units 29
- 30. You Can SAVE Money! - Example Location / Franchise Approximately 20 30
- 31. You Can SAVE Money! - Example Referrals from ALL employees (Sales, Service, Office, etc) Approximately 10-20 31
- 32. You Can SAVE Money! - Example THIS IS Between 50 - 70 units out of 100! Meaning that ACPS = $1,280 - $2,000 per car sold utilizing ADVERTISING 32
- 33. Average Closing Ratios OEM leads within 30 days = 6% 3rd Party Leads within 30 days = 8% Dealership Website Leads within 30 days = 14% Fresh Walk-In Prospect closes at 18-20% Be-Back closes at 50% Referrals close at 50% 33
- 34. Average Closing Ratios BUT… a Prior Customer closes on average at 65% and a HIGHER Gross Per Copy AND… a Service Customer is 7 times as likely to PURCHASE from where they SERVICE! 34
- 35. So WHY… Do Dealers SPEND so much MONEYon driving FRESH Traffic into the Dealership, BUT Do NOT… Handle the “Leads” / Opportunities the RIGHT Way when they receive them? 35
- 36. So WHY… Do Dealers SPEND so much MONEY on driving FRESH Traffic into the Dealership, BUT Do NOT… Have their CRM tool set up the right way? 36
- 37. So WHY… Do Dealers SPEND so much MONEYon driving FRESH Traffic into the Dealership, BUT Do NOT… Have their TEAM trained on their CRM? 37
- 38. So WHY… Do Dealers SPEND so much MONEYon driving FRESH Traffic into the Dealership, BUT Do NOT… Utilize their CRM? 38
- 39. So WHY… Do Dealers SPEND so much MONEYon driving FRESH Traffic into the Dealership, BUT Do NOT… Manage their CRM? 39
- 40. So WHY… Do Dealers SPEND so much MONEYon driving FRESH Traffic into the Dealership, BUT Do NOT… Hold EVERYONE Accountable on the CRM? 40
- 41. Radical IDEA 41
- 42. Maximizing the MOST Powerful Operations Tool in Your Dealership… THE CRM! 42
- 43. The CRM is the Central Nervous System of the dealership! Customer Relationship Management 43
- 44. Advice from Capture clean data. According to research from IBM, poor data quality costs the US economy around $3.1 trillion a year. 44
- 45. Customer Relationship Management “CRM” is almost NON Existent. Most Dealerships and their team do NOT create, maximize or perpetuate RELATIONSHIPS via their CRM… 45
- 46. Customer Relationship Management Examples: If you look at MOST Dealership’s CRMs and its Content you can NOT get a clear feeling of the organization and their Value Package Proposition. Dealerships and their Team do NOT “Customize” the experience for their specific prospects and clients 46
- 47. Customer Relationship Management Examples: Most Dealerships and their Team’s Follow Up protocol is antiquated and the time frames are NOT consistent and/or their frequency is NOT enough Dealerships and their Team NEGLECT the majority of communication opportunities -Video Conferencing / Skype- -Video Email / Video Text- -Social Media DMs- 47
- 48. Staggering Stats from Time Before Marking Prospects as Lost: Industry Average: 2 Days Best in Class Average: 35 Days 48
- 49. Staggering Stats from Calling Customers more than Once on Day One: 2013 Best in Class Average: 20% 2016 Best in Class Average: 49% 49
- 50. Staggering Stats from Phone Calls Made to Customers During the First Week of the Buy Cycle: Best in Class Average: 4 50
- 51. Questions to Ask from How many overdue tasks are in your CRM? 51
- 52. Questions to Ask from Are you satisfied with your dealership’s CSI scores? 52
- 53. Questions to Ask from Does your team enter all customer interactions into your CRM? 53
- 54. Questions to Ask from What do you do when a salesperson doesn’t complete their assigned tasks? 54
- 55. Questions to Ask from How often do you hold CRM training at your dealership? 55
- 56. Staggering Stats from Dealerships Using the Customers’ Preferred Method of Contact 2013 Best in Class Average: 80% 2016 Best in Class Average: 89% Respecting how customers prefer to be contacted increases your likelihood of a response. 56
- 57. Staggering Stats from Sending emails that Encourage Answers 2013 Best in Class Average: 61% 2016 Best in Class Average: 90% Customers have no reason to respond to emails that don’t ask helpful questions. 57
- 58. CRM Reality Check The CRM Company’s responsibility is ONLY the Technology behind the tool. NOT: Content, Strategy, Psychology, or Operations. 58
- 59. CRM Reality Check • The CRM Companies don’t set the proper expectations. • They DON’T set you up the right way. • They DON’T train you the right way. 59
- 60. CRM Reality Check • Dealers have a false sense of security after CRM company training, they think that’s it. • There is NO contingency plan for Attrition. 60
- 61. What is the Proper Way to Set up the CRM? First, “Begin with the End in Mind” -Map out ALL Processes- -Prioritize them- 61
- 62. What is the Proper Way to Set up the CRM? • Map out the “Types” • Map out ALL “Sources” • Map out ALL Integrations / APIs • Create Google Docs and SAVE EVERYTHING • Once Outline and Processes are Mapped out, then CREATE ALL custom “Content” 62
- 63. 63 CRM Content is SO important. But for lack of time, I am going to focus on just ONE point… VIDEO and your CRM here…
- 64. 64 The Power of Video 1 Minute of Video is equivalent to 1.8 Million Written Words!
- 65. 65 The Power of Video Every day, the average adult consumes over 6 hours of video.Source: TechCrunch
- 66. 66 The Power of Video If you aren’t using video for your dealership, you are missing 8 out 10 car buyers. Source: Digital Dealer 4X more consumers would rather watch a video on a product, rather than read about it. Source: Digital Dealer
- 67. 67 The Power of Video ● Using video in your sales emails will get you 80% more replies and responses. ● You will get ~87% more clicks through video email. ● Video is more effective because you can speak 4X faster than you type! ● Video in Emails increases read / open rates by 200%-300%! Source: BombBomb
- 68. 68 The Power of Video You need an extensive library of CRM Video Templates. Here are some examples...
- 69. 69 CRM Videos Example - Virtual T.O.
- 74. 74 CRM Videos Video Text Example Check this out!
- 75. 75 Check this out! Communication Video Text Example Check this out!
- 76. What is the Proper Way to TRAIN on the CRM? -Have a CRM “Checklist” for Training!- -CRM Company- BUT… with PROPER Expectations! 76
- 77. What is the Proper Way to TRAIN on the CRM? Virtual Training 77
- 78. What is the Proper Way to TRAIN on the CRM? Facebook Groups! 78
- 79. What is the Proper Way to TRAIN on the CRM? Google / YouTube Mother of 4 Builds House from Scratch Using YouTube Tutorial Videos! 79
- 80. CRM Training Checklist • Get CRM Training from CRM Company. BUT… understand it is ONLY “technology” training, NOT… – Process, Psychology, Strategy, Operational etc… • Process Training – Map out ALL relevant Processes / Action Plans that are relevant to EACH employee – Know EACH and EVERY Process – Know ALL supporting content for EACH relevant Processes / Action Plans • Templates – Email – Text – Chat • Scripts • Objections Rebuttals 80
- 81. • “How To” – Log an Up • Walk In • Phone • Text • Email • Social Media • Chat – Follow Up with: • Fresh Ups • Internet • Phone Ups • Prior Customers • Be-Backs 81 CRM Training Checklist
- 82. • “How To” – Follow Up with • Referrals • Service Opportunities – Time Manage / Project Plan / Be Productive • Daily, Weekly and Monthly – Project and Forecast – Run reports and track KPIs / ROI – Identify lost opportunity and lost productivity – Generate Campaigns • Data Mining • Equity Mining – Email Market / Broadcast Email 82 CRM Training Checklist
- 83. • “How To” – Handle Appointments • Schedule an Appointment • Confirm Appointments / Appointment Reminders • Reschedule Missed Appointments – Dead Leads – Handle Sold Customers • C”R”M… “RELATIONSHIP” Management • Referrals • Direct to Fixed Operations – Customize CRM for EACH individual Prospect / Client – Proper input of notes in CRM – Use the Mobile App 83 CRM Training Checklist
- 84. • “How To” – Use ALL Features, Integration / APIs… • Click to Call • Social Media • Call Tracking • Inventory • Chat • Video • Texting • Pricing • Credit Center • Data Mining / Equity Mining / Campaigns 84 CRM Training Checklist
- 85. What is the Proper Way to MANAGE the CRM? • Create a CRM Expectations (Non Negotiable) Document and have ENTIRE Team sign… • Create CRM KPIs For – Internet / BDC – Showroom – Management • Create a CRM Accountability Protocol – With BOTH Rewards and Consequences • CRM 101s with – Sales Team – Internet / BDC – Management • Automate as much as possible – Reports, Usage, Mistakes, Training etc… 85
- 86. What is the Proper Way to Hold CRM Accountable? • Map out CLEAR expectations with “NON Negotiables” • Have CRM “1 on 1s” • Have SPECIFIC Rewards / Consequences – Rewards • Turn on MORE Leads / Opportunities to those who RESPECT and Follow CRM Protocol! • Maybe a financial benefit – Bonus / Spiffs… – Consequences • Write Ups • CUT OFF “Leads” • Termination • Create a FULL Time Position of “CRM Manager” • Work very closely with CRM and / or Consulting company…. 86
- 87. Turn Your CRM into an ATM You need to map it out correctly for ALL areas! You need to train ALL people on it! 87
- 88. Turn Your CRM into an ATM Have a Daily, Weekly and Monthly “Plan” Consider ALL possibilities! 88
- 89. Turn Your CRM into an ATM “Be-Backs” “Dead Leads” “Lease Retention” “Data Mining / Equity Mining” “Prospecting” “Referral Generation” “Time Management / Organization” 89
- 90. Turn Your CRM into an ATM “Community” “Fleet” “F&I” “Fixed Operations” “Aftermarket” “Conquesting” “Email Marketing” 90
- 91. Turn Your CRM into an ATM In Addition to the basics… • Walk In Ups • Internet Sales • Phone Ups 91
- 92. Turn Your CRM into an ATM Internet Follow Up: Trade Appraisals Credit Applications Custom Sources Processes Intermediate Follow Up LONG Term Follow Up 92
- 93. Now let’s go LIVE in 93
- 94. 94 JOIN on
- 95. Questions 95
- 96. Garbage In, Garbage Out: Turn Your CRM From Trash to Treasure @seanvbradley #NADASHOW Sean V. Bradley, CSP President and Founder |Dealer Synergy| Audubon, NJ 267-319-6776| seanb@dealersynergy.com