Ultimate Glossary of Automotive CRM Terms
Learn the must-know CRM terms for car dealerships—from equity mining to AI workflows. Build your knowledge of dealership CRM, sales, and service tools.
The customer relationship management (CRM) systems are critical in driving sales, improving service, and building long-term loyalty, mainly for automotive dealerships. Whether you’re a seasoned dealership professional or new to the industry, understanding the language of automotive CRM is essential for maximizing your system’s potential.
This article breaks down key CRM terms specific to the automotive world, helping you better navigate your tools, communicate with your team, and make informed decisions that lead to higher customer satisfaction and improved performance.
Core Automotive CRM Concepts
AutoAlert’s CRM Customer Lifecycle Management
CRM (Customer Relationship Management):
A system that dealerships use to manage customer interactions, track leads, follow up on sales opportunities, and improve customer relationships throughout the buying and ownership cycle.
ILM (Internet Lead Management):
A system or process that dealerships use to capture, organize and respond to online sales leads from sources like the dealership website, third-party listings, and social media.
DMS (Dealer Management System):
A software platform that helps dealerships manage core operations such as inventory, sales, service, parts, and accounting in one integrated system.
Equity Mining:
Identifying customers in a dealership’s database with positive equity in their vehicles and may be good candidates for a trade-in or upgrade opportunity.
Data Mining:
The practice of analyzing large sets of customer and dealership data to uncover patterns, trends, and opportunities that can be used to improve sales, marketing, and service strategies.
Customer Lifecycle:
The stages a customer goes through in their relationship with a dealership, from initial contact and purchase to service visits, potential trade-ins, and repeat sales.
Customer Touchpoint:
Any interaction or communication between a customer and the dealership, such as emails, phone calls, showroom visits, service appointments, or website activity.
Customer Profile:
A detailed record of a customer’s information, preferences, purchase history, and interactions with the dealership is used to personalize communication and improve service.
Lead Management:
Capturing, tracking, and nurturing potential customers (leads) through the sales funnel to convert them into buyers.
Opportunity Pipeline:
A visual or organized system that tracks potential sales leads as they move through different stages toward closing a deal.
Retention Strategy:
A plan or set of actions aimed at keeping existing customers engaged and loyal to the dealership, encouraging repeat business, and long-term relationships.
Lifecycle Marketing:
Marketing efforts tailored to the different stages of a customer’s relationship with the dealership, from initial interest through purchase and ongoing service, to maximize engagement and sales over time.
Single View of the Customer:
A comprehensive, unified record of all customer data and interactions across departments provides a complete picture that helps us better understand and serve the customer.
Customer Equity:
The total combined value of a dealership’s current and potential customers is based on their future buying behavior and loyalty.
Dealership CRM Workflows
BDC (Business Development Center):
A department focused on managing inbound and outbound customer communications, qualifying leads, and setting appointments to support the sales team.
Lead Assignment Rules:
Automated guidelines that determine how incoming leads are distributed to sales representatives based on criteria like location, availability, or expertise.
Follow-Up Process:
A structured series of communications with prospects or customers designed to maintain engagement and move leads closer to a sale.
Drip Campaign:
A scheduled sequence of automated marketing messages sent over time to nurture leads or customers with relevant information and offers.
Service Lane Integration:
The connection between the service department and CRM system that allows seamless tracking and follow-up of service customers for sales or retention purposes.
Appointment Scheduling:
The process or tool used to book and manage customer appointments for sales consultations or service visits.
Sales Funnel:
A visual model showing the stages a prospect goes through from initial contact to closing a sale.
Lead Source Tracking:
The practice of identifying and recording where a sales lead originated, such as from the website, social media, or third-party listings.
Vehicle Wishlist:
A personalized list within the CRM where customers or sales staff save preferred vehicles based on specific criteria for easy reference.
Trade Cycle Management:
Monitoring and managing when customers are likely to trade in their current vehicles, helping sales teams target timely offers.
Equity Alerts:
Notifications are triggered when a customer’s vehicle equity reaches a certain level, indicating potential trade-in or upgrade opportunities.
Priority Dashboard:
A CRM feature that highlights the most important tasks, leads, or opportunities requiring immediate attention from the sales team.
Task Automation:
Using software to automatically create, assign, and remind staff of routine sales or follow-up tasks, improving efficiency and consistency.
Automation & AI Terms
Automated Workflows:
Predefined sequences of tasks and communications are triggered automatically within the CRM to streamline processes like lead follow-up or service reminders.
AI-Powered CRM:
A customer relationship management system enhanced with artificial intelligence to provide more innovative lead scoring, personalized recommendations, and predictive insights.
Predictive Modeling:
Historical data and algorithms forecast customer behavior, such as which leads are most likely to buy or when a service visit is due.
Behavioral Targeting:
Marketing strategy that uses customer actions and preferences to deliver personalized messages and offers at the right time.
Intelligent Lead Routing:
An automated system that assigns leads to the most appropriate sales representative based on availability, expertise, or geography.
Data Hygiene:
The ongoing process of cleaning and updating customer data to ensure accuracy, completeness, and reliability in the CRM.
Duplicate Resolution:
Techniques and tools are used to identify and merge or remove duplicate customer records in the CRM to maintain a clean database.
Automated Email Campaigns:
Pre-scheduled email sequences are sent automatically to nurture leads or communicate with customers without manual intervention.
Chatbots:
AI-driven virtual assistants that interact with website visitors or customers in real-time to answer questions, qualify leads, or schedule appointments.
Sentiment Analysis:
The use of AI to analyze customer communications (like emails or reviews) to determine their feelings or attitudes toward the dealership or brand.
Marketing & Communication
Bulk Emailing:
Sending a large volume of emails at once to a broad audience, typically used for promotions, announcements, or newsletters.
SMS Marketing:
Using text messages to send promotional offers, service reminders, or updates directly to customers’ mobile phones.
Email Append:
Adding or updating email addresses to existing customer records in the CRM to improve communication reach.
Opt-In Compliance:
Ensuring that customers have given explicit permission to receive marketing communications, complying with legal regulations like GDPR or CAN-SPAM.
Campaign Segmentation:
Dividing a marketing audience into smaller groups based on criteria such as demographics, behavior, or purchase history to send more targeted messages.
A/B Testing:
A method of comparing two versions of a marketing message or email to see which one performs better with the audience.
Open Rate / Click-Through Rate (CTR):
Metrics used to measure email campaign success—Open Rate tracks how many recipients open the email, while CTR measures how many click on links inside it.
Personalized Communication:
Tailoring messages and offers to individual customers based on their preferences, history, or behavior to increase engagement and loyalty.
Customer Journey Mapping
Visualizing a customer’s complete experience with the dealership, from first contact through purchase and beyond, to improve marketing and service strategies.
Sales Metrics & Reporting
Sales Conversion Rate:
The percentage of leads or prospects that successfully result in a sale.
Lead Response Time:
The time it takes for a sales representative to contact a lead after receiving it.
Engagement Rate:
A measure of how actively customers or leads interact with communications, such as emails opened, clicked, or replied to.
ROI (Return on Investment):
A metric that calculates the profitability of a marketing or sales effort by comparing the money earned to the money spent.
CRM Usage Rate:
The frequency and extent to which dealership staff actively use the CRM system to manage leads, customers, and tasks.
Close Ratio:
The proportion of sales opportunities that result in closed deals is often expressed as a percentage.
Customer Lifetime Value (CLV):
The total revenue a dealership expects from a customer throughout their relationship.
Win-Back Campaign:
Marketing efforts aimed to re-engage past customers who have not purchased from or interacted with the dealership for a certain period of time.
Churn Rate:
The percentage of customers who stop doing business with the dealership over a specific period.
User Roles & Permissions
Sales Manager:
The person responsible for overseeing the dealership’s sales team, setting goals, coaching staff, and meeting sales targets.
BDC Manager:
The leader of the Business Development Center manages inbound and outbound customer communications, lead follow-up, and appointment scheduling.
Internet Sales Manager:
The manager who oversees online sales leads, internet inquiries, and digital sales processes to maximize online vehicle sales.
Finance Manager (F&I):
The dealership professional who handles vehicle financing, insurance products, and finalizes sales contracts with customers.
CRM Administrator:
The individual responsible for managing and maintaining the CRM system, including user setup, data quality, and system customization.
User Access Levels:
Defined permissions that control what dealership employees can see and do within the CRM based on their role or responsibilities.
Role-Based Permissions:
Security settings that assign access rights within the CRM according to an employee’s job function, ensuring appropriate data access and controls.
We hope these definitions of CRM terms can serve you in your dealership role and even offer inspiration for efficient dealership operations. Though most dealerships come equipped with processes and technology to help you be successful, not all are equal in quality. To ensure all of the above concepts are being considered and covered at your dealership, learn how the #1 dealership platform and CRM can keep your processes in line and provide the highest level of insights to allow you to outperform the competition.
