If you will be searching for a new CRM system at the NADA convention this year, whether you are ready to get started, ramp up, or change course, the tips below will help you to best assess and screen your options.

In a previous article, we discussed some CRM resolutions for the New Year and, in particular, how seeing significant business improvement requires more than just purchasing and installing a system. The acquisition itself is likely the most critical step, however, as many CRM implementations sink or swim by the thoroughness of the buyers assessment process, and a proper assessment starts with thorough requirements.

What not to do

The number one mistake is to let features drive your decision. When you focus primarily on specific features, you run the risk of acquiring a system that will not meet your needs and might actually disrupt business. There is always more than one way to meet a need ,and different vendors will naturally have different implementations. Requiring a specific feature assumes there is only one good way to solve a problem and disregards all new innovations. It also ignores how well staff are able to adapt, or how easily business processes can be altered, to accommodate new implementations. Focusing on features alone causes you to disregard the most important factor: Your business. Software features are no substitute for business goals.

What you should do

Start by documenting your business goals for at least the next year, and be specific. How much do you want to cut your ad spend? How much of an increase gross or units are you looking for, and over what timeframe? How much can you reduce fixed operations costs and by what measurement? It may help to detail requirements by functional area-showroom, service, F&-I, Internet, BDC, marketing, and so on. With your list complete, rank each requirement on a scale of one to five, with five being critical and one being nice, but unnecessary. When you outline what your goals are, you let your business drive the technology, not vice versa.

Getting this on a single page, with four columns-goal, priority, target, timing, and maybe a fifth column for notes, gives you a blueprint for some enlightening vendor discussions. Simply ask how they can help you achieve the stated goals. However, avoid the second biggest mistake: Considering cost too soon. Assessing cost early is like wearing blinders, limiting your view and thereby limiting potential. You might discard an option that would help you to exceed your goals, and thus pay for itself many times over.

Having a solid requirements process also provides other benefits down the road, once you have made your selection. First, while it is easy for a vendor to deny new feature requests and say a product is working as intended, no good vendor will deny helping you achieve your business goals. Requirements allow for mutual accountability. Second, with technology, there will always be bumps in the road, especially in the first six months. Forcing specific features creates friction, whereas a goal-oriented approach allows for flexibility while still meeting your goals.

Best of luck at this years NADA conference and exposition!

Joseph Loria is director of operations for Autobase. He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .