Intersection of CRM Technology and Inventory Management

No other proverb sums up the automotive dealership landscape than the 1849 statement by Jean-Baptiste Alphonse Kerr when he wrote: “The more things change, the more they stay the same.”

At the turn of the century, the automobile industry boom was firmly in place and rapidly taking shape. New relationships were being forged around the globe. Everyone wanted to be part of the automobile industry. Family-owned dealerships such as McDaniel Automotive and Smith Ford still bring in fourth- and fifth-generation family members.

The primary goal of any car, truck, 18-wheeler, bus, or motorcycle dealership is to sell more vehicles than the month before. Over the decades, new and used dealerships have accepted any form of innovative technology as long as they sold more vehicles. Early dealership inventory and CRM efforts consisted of leather-bound ledgers and maybe a typewriter.

In the first half of the 20th century, demand far outweighed supply. Henry Ford’s famous Model T marketing statement still resonates today: “customers can have any color they want, as long as it was black.”

In the last 24 months alone, CRM and inventory solutions have forced software engineers and producers to include social networking and mobility in their mix. There are vast opportunities for AI (artificial intelligence), software, and the cloud in the automotive retail space. Legacy technologies, such as using only paper deal jackets, create roadblocks for dealerships who didn’t heed the call to upgrade.

Automotive Retail CRM Solutions

Many dealership experts believe AI and ML (machine learning) technologies will revolutionize how dealers manage sales, CRM, inventory, finance and insurance (F&I), and the service lane. Automobile CRM solutions can be all-encompassing for sales, F&I, and inventory or be very simple for a small used car lot.

CRM solutions are divided into several categories: car salesman, overall dealer, independent dealership, lead management, and social media CRM.

DealerSocket is one of the best “Top Car Salesperson CRM” solutions. The car sales business is all about numbers; more phone calls equals increased appointments and sales. DealerSocket helps to create higher numbers throughout the sales process.

Solera’s DealerSocket features a full suite of digital marketing features to increase a salesperson’s customer engagement. The software attempts to centralize all desking processes, leaving no rock unturned. Each dealership area is integrated into DealerSocket, so salespeople can track each customer and take ownership. The software facilitates the connection of the salesperson to the customer across every digital device.

Salesforce Automotive CRM is for small to midsize dealerships, hoping to get much bigger. The software is excellent for dealerships with one to three automotive brands. Salesforce Automotive has been designed to scale rapidly from just a few personnel and a single automotive brand to hundreds of personnel and several car companies. A great visual dashboard and lead capture to conversion functionality.

Vital software is a sophisticated platform for car dealership management and franchise management. The software gives everyone in the organization a single point of contact. The platform carries a precise tracking program and customer CRM contact management. Vital offers support for backend and front-end operations and inventory integration. Vital has excellent reporting functions, specifically for franchise and compliant reporting. Reporting for sales, service, and parts is robust. The software has good functionality with a chain of command for fixed operations, business development, and head office.

Dealer Inventory Management

Plenty of quality stand-alone inventory management platforms are on the market; however, with advanced analytics, why track only sales? Know customer demographics inventory levels over time and start pre-ordering for a busy season. Discover various success rates on different marketing channels to improve website sales.

Autosoft is an excellent stand-alone platform with extensive reporting, security, and third-party integrations. Make inventory decisions based on your market, not the developers.

Large multi-brand dealerships, with market footprints scattered around several metropolitan locations, often bundle front and back-end operations into one package for continuity. These bundles have a defined chain of command structure with a central dashboard. General Managers, Service, and Parts report to a central command. Inventory controls and other add-on systems are bundled into the central dashboard.

Above all else, Dealer software packages are CRM systems at heart and driving sales. “the more things change, the more they stay the same.”

DealerCenter is a great example of a platform that brings everything together in a single package. The software boasts a rich feature set based on cloud management principles. DealerCenter provides the backbone for dealerships to add specific pieces to customize the overall package. DealerCenter is fully integrated into AI and ML, but does not sacrifice traditional car sales techniques. The platform controls most aspects of running a car dealership, from DMS, Desking Tools, Inventory, CRM, and any buy here/pay here operations—fully integrated F&I/lender management and accounting.

One of the strongest dealership trends is management for specific functionalities like Hispanic markets, sales, and social media efforts. Why buy the whole cow when all you want is a steak?

Izmocars captures the rapidly expanding Hispanic market—dynamic integrations of customer engagement, sales, and prospecting on mobile to mobile. Customer conversations are tracked; the salesperson can then act on the information. Marketing efforts, including virtual walkarounds and interactive demos, are captured.

Independent dealerships can find some very good management tools with Selly Automotive. This platform takes an aggressive mobile-first management style. The platform features an excellent CRM and ILMS (internet lead management system), empowering reps to take a proactive style when dealing with clients. “No opportunity falls through the cracks” is the Selly Automotive way. Every communication portal is upgraded with an excellent follow-up system.

Selly Automotive is fully AI functional and heavily tied into the CRM module. Large multi-brand dealerships should keep looking because Selly Automotive is designed for one to three brands.

VinSolutions may be one of the best contact management systems for automotive dealerships and their salesforce. The platform is designed to improve and enhance every step of the client’s journey to conversion. The advantage of VinSolutions is the unified client view through sales and service. The client feels better about the car buying process because a single person handles their account. Plenty of customer analytics and action steps make VinSolutions a good choice for small to medium-sized dealerships. There are lots of good features, such as full AI, great mobile integration, desking, and inventory management.

The future of automobile CRM and Inventory management systems is a better understanding of the dealership’s customers at every touch point. Artificial Intelligence will play a significant role in every piece of software now and in development. Data will be transferred to the cloud for better connectivity and mobility solutions.

Industry experts are expecting rapid growth in interconnected CRM solutions. Sales, service lanes, and parts touch points will feed off each other to keep customers through every buying cycle. New social media channels such as LinkedIn and X will be exploited.

Salesforce will become a major player in the market, serving customers in both the automotive industry and other sectors. Technological innovation will benefit customers at every level of operation.

Dealer platforms will become highly specialized:

• Dealer Car Search is a premium application to enhance social media penetration. The platform makes it easy for management and sales personnel to produce a variety of websites.
• Reynolds and Reynolds is the perfect application for forecasting and identifying sales opportunities in the immediate market. Integrates all the primary functions of a dealership.
• EASI’R is an overlay platform that streamlines the sales process from acquisition to conversion. The application uses specialized algorithms to determine the best time to contact a client.

Final Word

Dealerships will continue to explore every possible way to sell a car. If the process involves AI or a great CRM platform, the powers that be will take a look.