The future of CRM is not email and text messaging

yhurg · #1 (**permalink**) 04-13-2007, 01:16 PM

In a newsletter this morning there was an excerpt to an article that caught my attention. The headline read, “The future of CRM: email and text messaging.” The link went to the website homepage of the company that produced the article so I do not have a good reference for this, but the headline caught my eye because I think it is the wrong message.

The right message of course would have read, “The future of CRM…Blogs.” There is nothing futuristic about email and text messaging. In fact, I have found email to be a hideous communication tool that few dealers utilize effectively. Blogs on the other hand are futuristic, at least for automotive, and are far more beneficial as a CRM tool.

With blogs, dealers are able to converse with the masses and actually build relationships with two-way communication. Dealers can post information about anything going on inside the dealership, the local community, and the industry. Customers that visit the blog can write back, ask questions, get assistance, complain about things, etc. Anyone in the dealership could theoretically engage in conversation and anyone on the Web can theoretically interface with the blog. Readers are not be limited to only those who are in the dealers (very small) email database that managed to read or even receive the emails that were sent. Anyone with access to the Web searching for things discussed in the blogs could collide with the information.

Again, there are certainly uses and benefits to email and text messaging such as sending service coupons, sales promotions, newsletters, etc., but to say they are the “future of CRM” is not the right message for dealers.

This post is an excerpt from my blog, BlogPro Automotive. Visit my blog each day to learn more about how blogging can benefit the automotive dealer.

ZoomZoom · #2 (**permalink**) 06-15-2008, 03:50 PM

Using blogs in place of, or in addition to email and text messaging may prove to be effective on some levels, and they are certainly more futuristic. However, using a blog on the dealership's website is not a function of their CRM system. CRM means "Customer Relationship Managment;" you can't manage your relationship with people if you don't know who they are! Blogging in the manner described is really just fancy advertising. Putting a nice write up around a coupon in a blog entry is no different than putting one of those ads in the newspaper that is designed to look like an actual news story (and then putting a coupon on it!!).

There is also a HUGE reason not to do this at all: by allowing anonymous postings & replies the dealer is opening themselves up to negative feedback on their own forum. What is to stop the competition from bad-mouthing the dealer on their own website!?!?

yhurg · #3 (**permalink**) 06-17-2008, 06:05 AM

Those are valid points.

If blog content is not relational or conversation-driven then yes the information is just another form of advertising, or as you suggest, a coupon with a story around it. So true.

In regards to some of your suggestions however, such as,

...you can't manage your relationship with people if you don't know who they are!

Blog software has a setting that requires user registration with a valid email address to leave a comment. Thus, if this setting is utilized, which it should be, then indeed you have acquired an email address that you may use for marketing purposes. That is Blogging 101.

In regards to,

What is to stop the competition from bad-mouthing the dealer on their own website!?!?

Well, any business naive enough to do this in a professional setting is really just putting their own foots in their mouth. (Like that? "Foots"). Readers see through this. It doesn't work for the antagonist. Plus, Blogmasters can easily remove comments made by malevolent persons or even require comments be approved, or moderated, prior to being published.

Blogs are absolutely NOT futuristic. That is a totally relative suggestion. Businesses have been using blogs (and other forms of threaded messaging) for relational marketing purposes for more than 6 years now. Blogging is becoming as common as email.

JUST BECAUSE ONE PERSON THINKS THAT HENRY VIII WAS NOT WRITTEN BY SHAKESPEARE DOES NOT CHANGE THE FACT THAT IT INDEED WAS SO. - C.S. Lewis (The Weight of Glory)

Blogging has proven to be one of the most constructive forms of networking and relational marketing, plus a powerful means for SEO promotion.

jeffsweaver · #4 (**permalink**) 07-22-2008, 05:35 AM

Greetings Dealer Community,

Are you interested in posting articles, perspectives, commentary and submitting your dealership to a directory? Interactive online video and text chat available to see who you are talking with.. perhaps your bank rep, vendor rep and more... tell all your friends working at dealers... speak up, speak out and share your views. Spectate or participate, it is up to you! Times are tough and varied perspectives are necessary these days.. visit www.autofinanceindustry.com (Free) In an effort to keep the integrity of the site, it is asked you connect through www.linkedin.com to validate your professional footprint to be sure the content is relevant and from a professional such as you!

Best Regards,

Jeff

sporty81 · #5 (**permalink**) 01-04-2009, 11:08 PM

Quote:

Originally Posted by yhurg

The right message of course would have read, “The future of CRM…Blogs.” There is nothing futuristic about email and text messaging. In fact, I have found email to be a hideous communication tool that few dealers utilize effectively. Blogs on the other hand are futuristic, at least for automotive, and are far more beneficial as a CRM tool.

Blogs don't have anything to do with CRM. In it's simplest form, an automotive CRM solution is used to contact a SPECIFIC customers and sell them something or make sure they were happy with a service they received.

A blog is good for advertising and communicating to customers. But not a specific customer.

A CRM is used to communicate to someone when their oil change is completed or when they need a new oil change. I don't think a blog can do that...

Username · #6 (**permalink**) 11-06-2009, 02:46 PM

The premise that you could use a blog as a CRM tool is flawed on a number of levels.
1. A blog is a passive means of communication, users have to seek out the site and actively keep visiting it. Email and text are active means of communication which means you can push a message to a customer whether they choose to receive it or not.

2. Because a blog is passive it won't be very effective for car dealerships for the simple fact that customers don't give an F about what a car dealer has to say, or what he thinks about the community. They want to buy a car for the best price and get out as quickly as possible.

3. You are dealing with a very broad cross section of the public. According to about 3 or 4 polls that I've seen only about 2-3% of the population in the US visits a blog on a regular basis (regular basis being at least once a month) Think about this, if you are one of the biggest dealers in the country selling 1,000 cars per month (12,000/year) and you have 2% of those customers reading your blog (240 customers) and you can convince 25% of those customers to come back because of your blog (60 customers) and you can close 50% of those customers (30 customers) you've converted 12,000 potential customers into 30 sales or a .25% closing ratio at absolute best.

Would you spend any time, money, or effort on a marketing effort that returned a quarter percent closing ratio?

Charley Pompey · #7 (**permalink**) 12-20-2009, 12:35 PM

I think blogs for auto dealers to access their customers may have a place, but NOT now and certainly not to replace CRM. The great majority of people are not even aware of what a blog is and how it may help them.
We're 2-3 years away.

yhurg · #8 (**permalink**) 12-21-2009, 04:37 PM

Two to three years is a long time for technology. I was arguing 3 years ago that in 2-3 years the time for dealers to be blogging would be ripe and I think if you consider the shift today of dealers picking up Facebook we are seeing that. We have been managing blogs for dealerships now for more than 2 years and while they are not your cream of the crop mainstream blogs they are proving highly effective for SEO purposes and for driving good quality visitors to dealership websites.

Charley Pompey · #9 (**permalink**) 12-21-2009, 05:13 PM

I agree, I like blogs for SEO purposes, a regular addition of new relevant content is always good for SEO.
Blogs are very time and labor intensive though. I know from experience. Anyone can throw up some garbage and call it a blog. That is really my difficulty here. At this time, my opinion only, most dealers cannot justify the labor and time needed for the blog to be timely, relevant to your customers and competently written. The public awareness is just not there yet.
If you have someone who can maintain the blog properly (and may enjoy it), then definitely use one.