Friday, September 03, 2010
CRM: e-Business and the Human Element

11/11/2006

Happy holidays to everyone. You can make this December one to remember because it is a great time to restructure your Internet department toward a new and beneficial approach. The essence of customer relationship management is personal connectivity, or as I often describe it, the “human element.” In a business environment that rewards efficiency and automation, the “human element” is often the victim – lost in the mass production, cost-cutting undertow.

The e-Business component of the car business has the largest “human element” deficit than any other area. I believe there are two main reasons why most e-Business departments are the way they are. First, asynchronous medium, such as e-mail or advertising, disconnects the source (sender) and the receiver. The dilemma with asynchronous communication is that the source does not get the immediate feedback that enables them to modify or adjust the message to the receiver, because it is one-way communications. We all receive or interpret messages differently and as a consequence, written words need to be very carefully chosen.

 Due to the nature of asynchronous communication, developing the relationships that will ultimately produce sales is difficult without effective e-processes and the proper communications training. Secondly, whenever an “e” is put in front of a term, i.e. e-Business, hiring agents operate within the paradigm that the stated position requires someone who is mainly technology-oriented. The combination of these two elements thus limits the “human element” of effective customer relationship communications and in turn limits your e-Business department’s potential. Below I will give you a number of concrete, objective solutions to infuse the “human element” into your e-Business department.

First, I’ll tackle the latter of the two problems. If you are hiring a new Internet sales manager or Internet team member, the solution is easy – don’t consider advanced technological skills as an interview winner. You should select someone who has the charisma, drive and aptitude to be effective at selling cars while fitting into your corporate culture. The menial technological skill requirements, however, should simply qualify applicants to be considered for the position. The key here is you don’t need a NASA computer programmer. You simply need someone who is comfortable using web-based, point-and-click applications with the ability to adapt to and be trained in using new software as it is needed and has the ability to communicate effectively with your web site service providers.

Now, if you already have an employee who is highly tech-oriented, it gets more complicated. The reason being is you have two options: either re-train and re-tool the current employee in 21st century communications/people skills or find a replacement. The complicated nature of this decision rests in the assessment of the current employee, as well as an assessment of the current labor market. That part is up to you; just remember to heavily consider only the skill sets that enable he/she to sell cars – interfacing with customers and having solid communications skills, because the rest is simple to train.

Next, we will look at how your e-Business department can create differentiation through effective use of traditionally asynchronous communication. Think about this, would you ever consider approaching all of your fresh ups or phone ups with the same generic script describing and focusing on how great just your products are? Obviously, you wouldn’t because this lacks personal connectivity. So, why is the status quo among most dealers across the country to employ the above strategy on their web sites? The answer is simple: people don’t know what they don’t know. My goal with this article is that you begin to grasp the new frontier of e-customer relationship management.

Let’s start with making your dealership’s web site more e-CRM oriented. The first step is to create a purpose statement for why your web site exists. Examine the following purpose statement: “Our web site is to establish trust and value in our people, our dealership and our products, while making multiple positive emotional deposits in our current and future long-term customers.” Take this purpose statement and let it drive your decisions regarding your web site. And don’t lose sight of the fact that your web site exists to generate lead interest. Combine all of this and your web site will uncover customer after customer!

Once you’ve developed a lead, your ultimate goal should be to create trust and develop rapport with the potential customer, lest you battle the price skirmish. Then, look beyond the sale at all of your past customers – reselling your owner base should be a priority within your Internet department. A successful way of connecting with both of these segments is through e-mail, but you must do it right. According to Jupiter Research in a 2005 study, personalized, targeted messages can “increase net profits by an average of 18 times more than broadcast mailings.”

There are three keys to delivering a message that will be effective. The first is content relevancy, in other words, does the message apply to the person you are sending it to? Let’s say your dealership has the new Mercedes S-Class in stock. In order to send a message about the new S-Class to the right people, you have to target the right segment. You will probably want to send this message to your S-Class owner base and service customer base, plus any other groups you think could have a realistic interest in upgrading to the purchase or lease of the new S-Class. Read between the lines here – don’t waste a valuable touch opportunity on someone who bought a used C-Class sedan.

The second key is the timeliness of when the message is sent. This can pertain to the buying cycle of a new lead, the lease cycle of a current customer, or even what time of the week you send a given message. Depending on the value added message and receptivity of that message in the mind of the recipient, the message impact will vary. If you’re having a two-day owner appreciation event, give your customers a week or two of notice, but if you are having a three-hour only special, plan the e-mail to land a day or two before the event.

The last key to creating and delivering an effective message is by far the most important. Remember, your customers are selfish. So, in turn, your message has to provide value for your customer. It can be in the form of a service coupon, car wash or a pre-special sale notice. For higher end dealerships, I recommend, “invitation only receptions” to see new models. For example, a used C-Class Mercedes would benefit from a three-hour special, but an “invite only reception” would create value for an S-Class buyer.

Apply these three keys to sending e-mail and you will be more effective at connecting with your customers. Blessings of the season to you and your family.

Chuck Barker’s experience ranges from an executive with a Fortune 200 computer corporation to the automobile business. He has held positions as business development manager, sales manager, acting GM, ADP executive regional manager specializing in CRM and his own current company, Impact Marketing & Consulting Group, LLC, located in Virginia. His firm delivers CRM process strategies, 21st century CRM sales training, CRM e-business deployment and  CRM management leadership workshops. More information can be located at his web site: www.impactgroupcrm.com.


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