Baby, you can drive my car

Research conducted by the University of Maryland’s Robert H. Smith School of Business with the support of automotive marketing services company Autobytel Inc. has produced encouraging new results for users of customer management systems.

According a survey which followed up earlier analysis, auto dealerships using customer management systems are performing some 23 percent better than their competition. The study was undertaken by researchers of the school’s Department of Decision and Information Technologies; surveys were distributed through Autobytel Inc. to thousands of customer dealerships.

Earlier results released from the survey in February 2006 showed that dealerships using customer management systems were performing 15 percent better than competitors without. With completion of the analysis, that figure has been bumped eight percentage points higher. Customer dealerships, including those that use the Autobytel Web Control system and Retention Performance Marketing programs, were analyzed.

Touted as “the first of its kind from a major academic research institution,” the final numbers revealed the eye-opening statistic of 91 percent of survey respondents reporting that customer management systems had created value in the vehicle sales process.

Another interesting finding was that simply having the technology at the dealership made no significant difference in performance. Instead, there was shown to be a direct correlation between success and using the technology on a daily basis, implementing business process change tactics, and amount of available automation capabilities used.

The study defines customer management systems as information systems used to attract and manage sales leads and customers through pre-sales and post-sales activities. Additional research results measured how automated service retention programs affect dealership performance and how information technology influences employee effectiveness in sales and service departments.

Jason Kuruzovich, lead researcher and doctoral candidate in information systems at the University of Maryland’s Robert H. Smith School of Business, concluded that “These results suggest that a dealership’s adoption and use of customer-focused technologies during the sales process can be a critical source of competitive advantage.”

The Robert H. Smith School of Business is an institution specializing in management education and research for the digital economy. The Smith School boasts education locations in North America, Europe, Africa, and Asia.

Autobytel Inc. is an internet-based automotive marketing services company, assisting retailers in selling cars and manufacturers in building brands through marketing, advertising, CRM products and programs. Autobytel owns and operates Autobytel.com, Autoweb.com, Carsmart.com, Car.com, AutoSite.com, Autoahorros.com, and CarTV.com.