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How CRM Software Can Help You Overcome Challenges Affecting Car Dealerships


DealersGear/How CRM Software Can Help You Overcome Challenges Affecting Car Dealerships

With digital advancements, the growth of Web 3.0, and recent changes due to COVID-19, many businesses are left wondering what's next for them. The car dealership industry one that must keep up with these changing times. Even though some sales and business principles in car sales have stayed constant over the years, change is inevitable.

Fortunately, there has been no shortage of inventions for car dealers to adjust to these changes. Salespeople, car dealership owners, and managers must remain watchful for new trends due to digitalization and the global pandemic. If you're in the car dealership business, look into car dealership CRM supplier, DealersGear as your one solution.

The CRM Software Movement

A Customer Relationship Management (CRM) program is a tool that helps a company, or person prospect leads and then convert them into customers. It's also an excellent source of client service and after-sales assistance. Some of the benefits that CRM solutions provided by the automotive advertising agency include:

  • Sales and customer support automation
  • Prospect mining
  • Text message marketing
  • Sales analysis and reporting
  • Customer management
  • Lead generation
  • Email blasting
  • Customization

Car dealers may create more prospects, move them through the pipeline faster, and process transactions more effectively using CRM and SEO for car dealerships' solutions to guarantee customer happiness. 

How CRM Software Helps Car Dealerships Overcome Challenges

With global car sales crashing from 74.9 million units in 2019 to 63.8 million last year, it's no wonder being a car dealer is more complex than ever. But what exactly are the challenges they face? And how can CRM software provides a solution? Let's explore some of the most common issues below.

  • The new car supply bottlenecks

The slowdown of new car order shipments due to the COVID-19 pandemic has impacted the whole supply chain, including dealers. The root problems are various travel restrictions and reduced workforces in factories because of health protocols. Since COVID, there's been a significant shift in car buying experiences. 

Sales have slowed down as clients must wait longer for their purchases. Customers are also less satisfied than they used to be.

While the market for new cars is out of our hands, there are things we may do to respond well. Using CRM for car dealers to manage customer expectations and provide timely reports can be a tremendous step forward. 

Car dealer staff may use a CRM's contact management tool to send their waitlists timely feedback, giving them greater peace of mind and confidence that the transaction will go through. It trumps manual techniques, where clients fall through the gaps on several occasions each year.

  • Increased demand for used cars

Used cars are becoming more popular among car buyers for two primary reasons: 

  1. budget restrictions 
  2. shortage of new car inventory caused by chip shortages. 

However, how much this impacts your dealership depends on several factors, such as your customer base, location, and the type of vehicles you typically sell.

If you're an auto dealer, our CRM software will help increase your used car sales even when inventory is low. Reviewing customers' wishlist vehicles in the CRM software and then contacting them via text or email if you have something similar (or better) will build a strong relationship with the customer - making them more likely to do business with you in the future.

  • Aftersales remains critical

 Since people spend less time on the road in today's hybrid workplace, servicing cars isn't a high priority. However, car dealers may still provide value to existing customers through other services. For example, clean sanitation and cars appear more critical amid the epidemic. 

In addition, people want to find ways to stop potential issues before they even start happening. This might include moisture buildup, faded paint, or a gas tank breakdown.

By using a CRM system, car dealers can track their customer's past and get an idea of the best time to offer them a tune-up. They can also see what types of issues their cars are currently facing. In addition to using CRM tools, deploying ERP software solutions can help a company internalize changes to service priorities and get on the right track regarding after-sales.

  • Annoying prospects with irrelevant messages

Today, customers are more aware of the messages businesses send them and are critical of these communications. Unlike in 2000, when car sales methods were less sophisticated, auto dealers now need to send individualized messages tailored to their prospects if they want any chance at success. 

Furthermore, the more relevant an upsell is to a customer, the greater likelihood that the customer will become a hot lead. 

To increase your conversion rate, it's well-known that you should use CRM tools to target specific personas rather than take a "lazy" approach by blasting generalized text messages. 

For example, let's say you're targeting new families-- what are the issues they face with a new car? What are their top priorities-- safety, style, or fuel efficiency? What's their budget like? Using a CRM tool to personalize these campaigns and address specific pain points will make you more likely to achieve conversions. 

  • Changing customer behavior

It's normal for markets to change over time as people's consumer habits evolve. Observing these changes and reacting, car dealerships should investigate the following market developments. By keeping up with innovation, your business can maintain a leg-up on the competition. 

Because time is a precious commodity, customers are now more likely to make spur-of-the-moment decisions. 

Customers search for internet locations. When buyers can begin the purchase process online, 7 out of 10 are more inclined to buy from a dealer. 

So now the question is whether your business has that capability. At the very least, a dealership should have social media sites—at the very minimum, Facebook and Instagram accounts—and an official website. There are several excellent car listing sites to be included in your arsenal.

Customers are increasingly mobile. According to a recent poll, customers now use their smartphones to look at vehicle prices online.

Having an auto dealership CRM software allows all the channels and platforms that your dealership has to work together so that your sales and admin team can be ready to adjust to the digital activities of your potential clients.

  • Fear is still a factor

Some people are still apprehensive about contact due to the COVID-19 situation. And because salespeople must strive never to leave anyone out, we'll need contactless sales technologies for those who prefer less face-to-face interaction with some automotive sales training. A CRM tool can assist in making that possible by providing a channel for customers who want more health security to reach out to at any time of day or night from the comfort of their homes.

Selecting The Best CRM Software For The Job

How do you choose the finest CRM for your car dealership? The first step is to determine your needs, and which of the problems described above need to be addressed. Examine our automotive CRM reviews to see what previous customers have to say about this tool. When you select the appropriate tool for the proper purpose, you'll be in a better position to develop in the future, despite all the difficulties and adjustments.

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