Auto Dealer Monthly Magazine is the daily operations publication serving the retail automotive industry. This automotive publication serves dealer principals, officers and general managers with the latest best practices.
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dealership spotlight / crm Kimberly Long Express Auto Emphasizes the R in CRM Relationship Building Via Mutual Trust management in the automo- tive retail business, they think of the manufacturers' surveys W hen some people think about cus- tomer relationship and CSI scores that so many franchise dealerships focus on. An independent dealer doesn't have to meet a manufacturer's CSI goals, of course, but that doesn't mean customer rela- tionship management is any less important to the success of that independent dealer. That is something Matt Ghazal has been very much aware of since becoming a dealer in 1995. Although he got his start in the business by focusing on indirect special finance, he eventually turned his attention entirely toward buy here pay here. Express Auto now consists of five locations in four cities in Michigan. The company originated in Kalamazoo and expanded to a second location, opened a store in the Battle Creek market in 2005, and most recently opened locations in Benton Harbor in August 2011 and in Niles in February 2012. Sales volume across all five lo- cations averages between 150 and 200 units per month. The buy here pay here business can present some challenges when it comes to customer relationship management, more so than for other independent dealers. Some BHPH dealers have found it difficult to cultivate healthy, trusting relationships with customers while having to collect payments from them and sometimes repossess their vehicles. At Express Auto, a five-store BHPH operation based in Kalamazoo, Mich., follow-up is the most important aspect of CRM. Management wants to cultivate relationships with all customers who submit leads because many of them are weeks or months away from buying. 34 Ghazal and his team don't seem to find this task as difficult as others might. His philosophy is, "Being able to build a relationship over time is as important as making the sale today," and everything at the dealership is done with an eye toward that philosophy. The foundation of the relation- ship is establishing credibility and value for the dealership in the eyes of potential customers, which begins with the benefits Express Auto offers its customers. Ghazal said things like a limited war- ranty included with a vehicle purchase, a three-day "love-it- or-leave-it" policy, extended service contracts and other perks "all help give us credibility with our customers." Additionally, much of Express Auto's marketing efforts are focused online, further helping the dealerships establish a credible presence with potential customers. "Reputa- tion management is an important part of our online marketing strategy, so reviews, testimonials and our BBB ac- creditation are also things we take very seriously," he stated. To keep sales steady month after month, Ghazal and the staff at the Express Auto stores must maintain strong lead sources and do everything possible to cultivate each and every lead as best they can. "Industry-wide statistics show that walk-ins have decreased every year for the last 10 years. Our own tracking indicates this as well. We also know from our