We have advocated for years now for dealers to integrate three core technology platforms—DMS, CRM, and CDP—to enhance customer experience, boost online conversions, and increase customer lifetime value, some were (and still are) skeptical. DMS Outages and Data Feed Interruptions have starkly illustrated the critical importance of having all relevant customer data centralized and readily accessible.
The threat of ransomware attacks, data feed interruptions, and a lack of redundancy measures have become more and more prevalent lately. As these incidents become more frequent, they expose the vulnerability of dealerships that lack robust contingency plans. Progressive dealer groups are responding by implementing phishing simulations to test their staff’s readiness. Despite these measures reducing phishing engagement, human error remains an unpredictable risk that can, and HAS led to compromises in data feeds.
Recent events have highlighted the crucial role of CDPs in dealership operations. Enterprise-grade CDPs offer a centralized repository for data from a variety of sources, including DMS, CRM, retail websites, phone systems, marketplaces, credit bureaus, and data hygiene services. Given that CDPs update in real-time or nightly, they provide a valuable safeguard if primary systems are compromised, as evidenced by the recent outage.
Dealers using CDPs alongside DMS systems found that they could continue sending thousands of customer communications even when their primary systems were down. These data integrity measures confirm that a CDP is not just an optional tool but a vital backup that ensures business continuity during system failures.
A reliable backup plan is critical for dealership CRM systems. When a dealer’s CRM is down, a well-configured CDP can capture consumer data from web forms in real-time, often before the CRM itself can process it. This capability becomes particularly important when third-party lead sources are also configured to send data to both the CRM and the CDP, minimizing disruptions.
Moreover, CDPs can manage email campaigns and SMS communications, bridging the gap when a CRM is offline. Enterprise CDPs often come with CRM integrations, allowing for a swift transition to a temporary CRM platform if necessary. Events have shown that integrating AI communications with CDPs can further mitigate the impact of system outages.
Concerns have been validated as it seems there are indeed limitations in DMS functionality at critical financial reporting junctures. Especially with DMS systems being used as a dealership’s primary accounting system. In the absence of a functioning DMS, dealerships have had to revert to manual processes and retrain staff. However, the CDP has proven invaluable by maintaining customer communication and personalized messaging despite the DMS failure. With access to historical transaction data, the CDP helps dealerships continue servicing customers effectively.
Compromises have spurred new integration projects between CDPs and dealership operations tools, highlighting the need for enhanced resilience. Even when the DMS is down, the CDP allows dealerships to manage inbound calls and verify customer vehicle ownership, ensuring that marketing messages and real-time communications can proceed.
Recent events have been a powerful reminder of the need for robust contingency planning. Industry leaders have been sharing their experiences and strategies for overcoming such challenges, with influencers leading the conversation.
The upcoming Modern Retailing Conference (MRC) in Palm Beach will provide an invaluable opportunity to delve deeper into these lessons and prepare for future threats. For those who haven’t yet registered, the event often sells out, and discounted room rates are available only until the block expires. Don’t miss this chance to gain crucial insights and strengthen your dealership’s resilience against future disruptions.