Dealers turning to IT to help beat effects of credit crunch

06 May 2008

 

Dealers are demanding more from their IT in an effort to increase customer services levels, pinpoint sales opportunities and maintain their order book in the battle against the effects of the credit crunch.

 

DMS specialist Pinewood says that the more technologically aware dealers are implementing strategies centred around their IT systems as a means of keeping their trading buoyant.

 

Managing director Neville Briggs explained: “We are seeing what we call ‘iPod generation’ dealers who are very IT-savvy - looking to their DMS systems to help them weather the economic storm.

 

“Indeed, they see the tougher trading conditions as an opportunity to steal a march on their competition by offering better levels of personalised service.”

 

Briggs added that as the credit crunch started to bite, these dealers were looking to maximise returns from the more limited number of opportunities that exist in the market.

 

He said: “They are using their DMS systems to ensure that no stone goes unturned in the quest for profit. We are seeing a definite shift in user attitude – the DMS is increasingly seen as an income generator as opposed to simply a departmental management system.”

 

Briggs said that the key IT tool used to increase service levels by these dealers was CRM. They identified the right moment to contact customers and could more closely match products to needs.  

 

He said: “For example, we have some dealers who use their DMS system’s CRM capabilities to send out tightly focussed SMS mail-shots aimed at very specific customer groups. Perhaps the target market for this mail-shot is only 40 people – but the response rate could be 25 per cent, much higher than for traditional mass mailings.”

 

“Overall, the credit crunch means that there is a drive for better service levels and smart dealers are using technology to deliver this and ensure they really know their customers. In the long run, the expectation is that this will mean happier and better serviced customers.”

 

A further development prompted by the credit crunch is that a higher level of integration between manufacturer and dealer IT systems is being demanded by both parties.

 

Briggs explained: "This is being driven by manufacturers who want increasing levels of real time information from their dealerships which can help them gauge the effects of the credit crunch; and also by dealers who want to ensure that they maximise every opportunity and are looking to their manufacturer to help them do so.”

 

 

For further details please contact Simon Wells at
Paperchase Public Relations on 01283 711311
or e-mail simon@paperchasepr.co.uk