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Bark's Bites: Dealers Are the Worst Businessmen, Part Two
by
Mark "Bark M." Baruth
(IC: employee)
Published: July 29th, 2016
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I’m back like a rebel making trouble with another installment of Dealers Are The Worst Businessmen. Today, we’ll be talking about the information that most dealers use to make every decision in the dealership, and how it’s completely and utterly useless.To those of you who’ve worked in the dealership world, you already know what I’m talking about, right? Yep. The CRM (Customer Relationship Management) tool. Doesn’t matter whether it’s VinSolutions, DealerSocket, or any of the other popular software solutions on the market. Nowhere will you find a more prominent example of “garbage in, garbage out” than in the customer data mining that occurs at every dealer group. It’s a wonderful example of how most dealers spend thousands of dollars on tools they believe they need and then neglect to learn how to properly use.But first, a story. Nearly 18 long months ago, I walked into a Ford store in central Kentucky to lease my Fiesta ST. As I mentioned in my original write-up, I spoke with the Internet Sales Manager for a couple of weeks about my decision, and even submitted a lead through Autotrader’s Trade-In Marketplace tool. But when it came time for my salesperson to enter my information into their CRM tool, I watched him as he selected “Referral” from the drop down window.“Excuse me, sir,” I said, having a near heart attack (as I worked for Autotrader at the time), “but I am not a referral. I submitted a lead through Trade-In Marketplace.”“Yeah,” said the older gentleman, without turning his face to me, “but I get paid less on the deal if the Internet Department is involved.”Oof.You see, my friends, there’s a struggle at every dealership. It’s called “attribution.” Every car dealer in America wants to know where each and every sale originates. Even though it’s a statistical fact that nearly ninety percent of today’s shoppers start their searches for their dream cars online, car dealers refuse to accept it. In fact, if I were to walk into any dealer’s office across the country and ask him where most of his sales come from, I’ll get these answers, and in this order:
- Referrals
- Walk-up/Drive-by
- Dealer’s Website
#BarksBites
#CRMTools
#CustomerRelationshipManagement
#Dealerships
#InternetSales
#Referral
#Referrals
#Walk-up
Mark "Bark M." Baruth
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Published July 29th, 2016 9:00 AM
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I have purchased more cars than I can count over the last 60 years. When single, I found going to a dealer and negotiating for a car to be a form of entertainment. Back in the day, a salesperson could actually quote a price and close the deal. No "OK, now we see the guy who closes the deal". I don't have the time or energy to screw around with the current process when one walks into a dealer these days. I am strongly considering a broker for the next buy. Or the option of using something like True Car to find an acceptable car/price. I want the paperwork ready to sign when I walk in the door and the car ready to drive away. No more multiple hours screwing around with some jerk "closer". Cars, for me, are no longer something that give me a rush, like my new Pontiac 1968 GTO. Now they are just an appliance and need to be reliable and safe.
Next time I buy a new vehicle I am going to use COSCO. I would rather go to the dentist than deal directly with a stealership.