If you haven’t cleaned your Automotive CRM customer database recently, it could be costing you as much as 12% in lost revenue according to a recent Experian study. With automotive consumers increasing demand for faster, more convenient car buying and servicing experiences, dealers are turning to new digital technologies which all gather more customer data from online sources.
That’s great news for the industry, right? But with the increased power of technology comes the increased responsibility for dealers to maintain accurate customer data or risk squandering precious advertising and operating dollars.
The True Cost of Bad Data in Your Automotive CRM
With today’s advanced auto dealer software, most dealers are gathering information across thousands of data points. However, many are struggling to tie it all together and deliver the personalized experiences today’s consumers expect. In the Amazon age, the old idiom garbage in, garbage out rings true more today than ever before. According to IBM, bad data costs the U.S. economy more than 3.1 trillion a year.
Just think about the hidden costs and missed opportunities:
- Mailing to inaccurate addresses
- Sending invalid emails
- Fewer customers viewing emails because of reduced deliverability rates
- Wasted phone time dialing invalid numbers
- Lost data due to non-compliant employee texting from personal phones
- Reduced sales productivity sifting through bad records
- Sales team losing faith in data quality and questioning utilization processes
Busting Down Dealership Data Silos
If you’re tracking service customers in a different system than sales, then you likely have dirty data in your database. Without a connected technology platform, non-consistent data that displays in a limited view can diminish your marketing abilities and customers’ overall experience with your business. This limited view might include duplicate or inaccurate owner records, out-of-date service or vehicle information, or missing notes and conversations – all items that could result in a lost opportunity to deliver a personalized experience.
Remember, your customers view the dealership as one company, not separate departments. They expect you to know their history and proactively tailor messages and offers that are provided to them throughout their journey. Essentially, making you the obvious choice when deciding with whom to do business. Breaking down data silos and giving employees a single view of every customer improves productivity, customer experiences, and helps your dealership capitalize on every business opportunity.
Tips for Maintaining an Accurate Database
Data hygiene isn’t a glamorous process, but clean data is essential to the success of your dealership. Here are some quick wins for cleaning up your data:
- Start with Phone Processes
A recent JD Power Study of calls to dealerships found that 11% of phone calls yielded customer data. That means only 11 out of 100 calls resulted in viable information, leaving the other 89 in the market to contact competitors. If you’re not confident that your team is handling calls properly and accurately logging 100% of the time, consider partnering with dealership BDC experts who can help you capture the exact details needed to grow your business.
- Clean House Before You Move (Then Keep it That Way)
If you are thinking of switching CRM technologies, consider the reality of your data and create a plan to cleanse outdated data for a smoother implementation process. Most savvy technology partners offer email data hygiene or BDC services to improve CRM data accuracy. And because of the large volume of data today’s dealerships are collecting, many CRMs suggest and offer data hygiene services on a quarterly basis for optimal results.
- The Little Notes Matter
Typically, salespeople write brief, cryptic notes. Any person should be able to view a contact record and have the same level of knowledge about a customer as the salesperson. Notes should include details about why the customer isn’t taking a next step or what information is needed to make a decision and how the rep is helping move the process forward.
- Log Every Opportunity, Every Time
In many dealerships, there’s still room for improvement when it comes to logging prospects. CRM mobile apps with a driver’s license scanner that automatically populates CRM fields with customer data can lighten the load and make the logging process easier and more seamless.
- Share the Love
Many groups that own multiple stores in a metro area aren’t sharing data even though this feature is available in most CRM systems because they are competing for the business. But in the age of the customer, dealers should consider shifting focus to the consumer’s experience with the brand, not just the dealership. Companies tend to provide a different level of experience to customers who have consistently serviced their vehicle(s) or who have made several purchases with them versus those customers shopping.
In automotive retail, data is your most valuable asset. When that data doesn’t get the routine maintenance it needs, your customers and your bottom line will feel it. Start saying no to dirty data. Chat with a CRM expert to learn about how the most powerful CRM in the industry helps you manage data and deliver remarkable customer experiences.