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Why are the dealers still using outdated software as their CRM solution?


To answer this question one should understand the history of the automotive industry. Back in the days of sales and service dealers didn't use any software at all, as matter of fact only recently the dealerships are installing computer terminals to most of the sales staff. The first usage of an automotive CRM solution was invented based on a need of book keeping for accounting and service department. And first CRM solution that was evolved was for service technicians to use a computer terminal to book in their next car for oil change.

The system was invented out of necessity and it didn't have time to mature and evolve. The main purpose of the early days was to keep track how many hours a technician spend on a car, so accounting department could pay him. This version of the CRM was mainly supplied from the big names (I am not going to mention names here). It worked fine for many years, based on very early technologies. But today the dealerships are trying to model their business after other industries where a customer's contact information and business intelligence is important.

The early versions of the CRM was based on very outdated data base design and structure where it can't not meet today's standards. So the vendors tried to come up with a quick solution to meet the dealer's needs. But the solution failed because the incompatibility of the database designs, and unwillingness to use cutting edge technology. But the dealerships have very little choice at the moment because of the amount of data that was already entered is virtually impossible to be taken out or updated.

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