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You may be wondering why the president of a dealership management system (DMS) company is talking about CRMs. It’s not because I want to sell you a CRM. It’s because one of the most frequently asked questions I get from customers is, “What do you think about such and such CRM?”


The first thing I always answer is, “Why do you want to switch?”


The reasons I get vary and often include: “Well, our new Internet Sales Director thinks that CRM is better,” or “Our guys just aren’t using the current CRM, they don’t really like it,” or “I hear this CRM is amazing and we could increase our revenue by 30%!” (Really?) Sometimes, dealers and managers can’t even give a good reason why they want to switch CRMs.


Besides your DMS, a CRM is potentially the largest technology expense your dealership has. So why switch if you don’t need to? And if you do switch, do you know which system you should switch to? The system that works for your fellow dealer in a 20 Group or the dealership down the street may not be best for you.


Here are the top three reasons NOT to buy a new CRM:


1)   The newly hired Sales Director/ Internet Director prefers Vendor X’s CRM over your current CRM and insists on changing.

2)   The GM/ Sales Manager is good buddies and plays golf with so-and-so over at Vendor X.

3)   Just went to a trade show and saw a sales pitch for a really cool CRM.


If your current CRM has a low utilization rate, take some time to figure out why. Even the most basic CRMs have the ability to log ups, track performance from various ad sources, and send out letters and e-mails. If your employees aren’t using the CRM for these tasks, find out if the problem lies with the system or in the management of processes and employee accountability.


Because here’s the bottom line: if your salespeople aren’t using your current CRM the way they’re supposed to, they’re not going to use a brand new CRM the way they’re supposed to. So promises of increased revenue (based on features that won’t be used) will fall flatter than a tire with a leaky valve stem.


If you’re still thinking about switching CRMs, try a proven 10-step process that will help guide you to the right decision—without regrets and without wasting unnecessary money. Visit and download our FREE, unbiased ebook, “The Auto Dealer’s 10-Step Guide to Choosing the Right CRM for Your Dealership.”

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