CRM has "transformational effect" says study

News Article - Wednesday, July 19, 2006

filed under: Technology

Further information

CRM technology is having a transformational effect on customer relationships in the car retail industry, according to a new report.

Car dealerships using customer management systems were found to be performing up to 23 per cent better than their competitors.

Initial results from the University of Maryland's study suggested dealerships using customer management systems were performing 15 per cent better.

With all analysis complete, however, the final results indicate that benefits to the dealerships can reach 23 per cent.

"The study's results further validate the transformational effect technology, and CRM in particular, is having on the retail auto industry, particularly in improving the relationships dealers have with their customers," said Jason Kuruzovich, lead researcher at the university's business school.

"Today's informed consumers want to work with dealers who give them the most relevant information in a timely and direct way."

He added: "It's apparent that dealers who properly utilise technology in their customer communications are ahead of the curve in delivering what consumers want."

Dealerships that saw the greatest results with the CRM software were found to be using the technology on a daily basis, implementing business process "change tactics" and taking full advantage of the automation capabilities available in these systems.

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