WhitepaperClose the Loop and Open the Floodgates
The benefits of closed loop systems in CRM/lead management
Closing the Loop and Opening the Floodgates (Benefits of Closed Loop Systems in CRM/Lead Management) is about process, discipline and knowing more about your customers than your competition.
What would it be worth to your dealership’s bottom line if you simultaneously improved each of the following areas by three to five percent? 1) eliminated leads from falling through the cracks, 2) reduced advertising costs while maintaining the amount of advertising spent on each unit sold, 3) increased revenue-per-up and, 4) improved close ratios? Would it have a huge impact – we thought so.
A closed loop offers improvements in each of those areas. In the next few pages we are going to: 1) describe what “closed loop” means, 2) examine the merits of this type of process, 3) provide you with some guidelines on how to implement a closed loop sales process.
Closed Loop – What Does It Mean?
So what does “closed loop” mean anyways? “Closed loop” refers to a way of performing tasks. What defines it is that each task is predefined with built-in monitoring and feedback devices. In the “closed loop” system the process never ends, because there is always a logical next step. One key benefit of the “closed” system is that all relevant and actionable information is collected and it is never lost.
In an “Open” system, there are no checks or balances to, a) ensure each step is accomplished or, b) provide action when a step is not completed in a timely manner –self-discipline and ad hoc monitoring are the safeguards used to ensure steps are followed.
In the “Closed” system, discipline is built in; all steps are monitored, and when a step is not completed, a flag is created and feedback is automatically generated.
Can Your Dealership Benefit From a Closed Loop System?
You might be thinking your dealership would not benefit from a closed loop system. “Open” systems can work, but only to a point, and only with people that have exceptional talent and self-discipline. These lucky individuals use their skills and talents to create their own closed loop systems; they have great discipline, are very organized and are in effect self-monitoring.