Dealers need new CRM strategies to respond to changing car markets

14 August 2008

 

Dealers need new CRM strategies to manage the effects of the credit crunch and rocketing fuel prices on the new and used car markets.

 

Dealer management systems specialist Pinewood says that CRM approaches that have worked during the last decade where access to ready credit was taken for granted are no longer always right for the picture that is emerging in mid and late 2008.

 

In particular, dealers that were traditionally able to "up-sell" customers into ever bigger and more luxurious cars may now need to offer a downsized or niche alternative that is still an attractive option.

 

Managing director Neville Briggs said: "The latest SMMT figures and other feedback from the new and used markets show that there is definite trend away from larger cars towards smaller and more fuel efficient vehicles as well as a growing interest in less mainstream brands where image is less important than cost of ownership considerations.

 

"Switched-on dealers are already ahead of this trend. They know it is no longer acceptable to aim their CRM towards simply putting the same old choices in front of customers. They are now also offering smaller and more fuel efficient options.

 

"However, there are some sectors of the dealer market that are not moving quickly enough. They need to change or risk losing customers altogether, perhaps to another marque."

 

Briggs said that the used car market was likely to be even more affected than new car sales.

 

He explained: "Used car buyers, almost without exception, are more budget sensitive than new car customers, so you must make sure that you are stocking and offering them vehicles that fit in with all their aspirations, fuel economy included."

 

Briggs said: "Our customers use Pinnacle as their core CRM tool. Their sales and marketing strategies are reflected in the way that the system is set up and used every day by dealership staff.

 

"Making changes to the marketing strategy should be relatively easy for those who watch consumer buying trends, think on their feet and use all the CRM tools that technology places at their disposal."

 

 

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