"Our dealer is considering Higher Gear group and Autobase for our sales and service CRM program. Can you provide some insight to the pros and cons of each of these two CRM providers?".

These 2 CRM’s are frequently compared to each other. Both are server based and many dealers like the idea of having their CRM and customer information "in house" rather to the web based CRM programs.

It’s been awhile since I’ve used Autobase and it’s been over a year since I booted Higher Gear out of my current dealer. Therefore it’s not really fair for me to compare the 2 since I’m sure both have made changes and hopefully improvements since I have last used them.

I know there are a lot of readers using either Higher Gear or Autobase CRM and if you are one of those readers. Why not share some of your personal pros and cons for each CRM provider?

Share your pros and cons…

First off, I must admit this article is purely speculation based on rumors – it is about the future, and not set in stone.

Two things have come up this week, which are major concerns for me. One deals with the two big DMS providers: Reynolds & Reynolds and ADP. The second is something I heard about Toyota. We all know privacy laws have become more stringent than ever and continually evolve to encapsulate wider venues almost daily. It was simply a matter of time before the DMS providers had to jump on the privacy band-wagon by creating their own set of requirements.  This should be nothing new for a Reynolds & Reynolds dealer. Mostly this will affect third-party vendors. As an ADP dealer I am beginning to become familiar with their upcoming process. It seems as though they are offering vendors two steps: 1) The vendor has to purchase an API to gain DMS access (about $80,000) and 2) become certified through ADP (about an 18 month process…currently). Fortunately, dealers will be able to send out some information to vendors, but the more DMS information a vendor interacts with the harder it will be for that organization. I foresee the next few years being difficult in working with DMS information and vendors. We will have a short list of approved vendors to choose from.

To further shorten that list is the second part: our manufacturers. This part fully comes from the rumor-mill, but I heard Toyota is considering a new mandate. The mandate will require dealers to only use approved CRM/ILM vendors. This will be more stringent than what Honda currently does. Honda only wants to monitor certain areas of how Internet leads are handled, so they require a dealer to use a pre-approved list of vendors or offer dealers to pull leads through their own Honda Interactive Network. From what I heard about Toyota, they are considering only passing leads to dealers who use one of their pre-approved CRM/ILM vendors, and not offering any other alternatives to access Toyota leads. Speculation on the rumor vine, also states Toyota will take things even further by requiring the whole dealership use one of these vendors. Toyota is interested in not only how Internet leads are handled, but showroom traffic as well. Typically Toyota sets the franchise premises, so it is only a matter of time before other OEM’s move in the same direction.

If speculation becomes fact, this could mean dealers have an extremely short list of vendors to choose from. And dealer groups could be even more limited as one manufacturer requires a particular CRM/ILM that another manufacturer may not.

Can you see what a mess all of this could put all of us in?

P.S. One more time, this is purely speculation from the rumor-mill. I mention it on DealerRefresh to give everyone a heads-up on a potentially difficult future.

5 quick reasons why I hate CRM software for automotive dealers.

1. Lack of strong ILM utilities – Most CRM software fail to include a strong ILM (internet lead management) utility.
2. Workflow never works right -€“ when I say “€œworkflow”€ I mean your pre-determined automatic scheduled follow-up that you set up in your CRM tool. This might be a scheduled phone call on day 1, 3, 5 etc. or
   scheduled emails and/or letters. I have yet to find a CRM that is able to change its follow-up on the fly according to where a sales person determines what phase the customer is in.
3. Sold deals get LOCKED – If your CRM updates your Sold customers by pulling from your DMS, many CRM’€™s “€œlock”€ the Sold opportunity, making it impossible to make necessary changes to the customer or vehicle information.For example; you title the car in the business or company name and this overwrites the customer’s name that you have entered into your CRM. Now your “after sold” follow up letters are addressed to the business name rather the customer. Another example; a front end or back end gross changes but the CRM doesn’t  allow you to edit this since the opportunity has already been updated by the DMS.
4. They allow dealers to SPAM! – Yes..it’€™s SPAM. If you’re using your CRM to broadcast email specials to customers that inquired about a vehicle from your website or a 3rd party lead you bought from Dealix, AutoUSA, Cars.com, etc. and they have not opt-in for your specials email, you ARE SPAMMING! Remember, SPAM is the customer perception. (I’€™ll write more about this later).
5. Too much maintenance – You almost need a full time person to handle the administrative duties and the phone calls to tech support.

I could go on with another 5-10 more reason why I hate most CRM’s software. I’€™ll keep that for another continued post someday.

I need some help from my readers. Who is using or has used ADP web CRM and desking tool?

Fill myself and other readers in with the good and the bad.

• What features do you like and/or dislike?
• How would you rate their customer service?
• What ongoing issues have you had with ADP web CRM?
• How strong are the Internet Lead Management features?
• Would you recommend their CRM and Desking tool to other dealers?

Whatever information you would like to share would be appreciated.

Thanks in advance to anyone that has some information to share.

Share your comments.

Are you a Mercedes-Benz BDC Manager?

If so, I have put together an exclusive website just for us!

MercedesCRM.com – this is where you can go to voice your opinions and share your comments about the “Mercedes Qualified” CRM Vendors that Mercedes-Benz USA allowed you to choose from and are now currently using.

I took it upon myself to put this site together after attending the MB-BDC meeting in Philly. While I was there, someone had suggested that Managers should be supplied a list of dealers corresponding to each CRM Vendor. This would allow the Mercedes BDC Managers the ability to Network and “Team Up” with other Mercedes BDC Managers in order to help get enhancements features added or changed to their CRM Software. I thought it was a great idea! (if that person ever reads this..please send me an email!).

So, IF you are indeed a Mercedes BDC Manager, please visit MercedesCRM.com or link directly to your corresponding CRM Software Vendor page below.

• Higher Gear CRM
• UDC – Universal Dealer Consultants
• ADP web CRM
• Reynolds & Reynolds Contact Management
• AutoBase CRM
• NCompass CRM
• Elead CRM
• ReckonUp CRM

If you are not a Mercedes BDC manager but are using one of the mentioned CRM Vendors, please feel free to express your comments as well.