We use technology on a daily basis, and are constantly introduced to the latest products, processes, and enhancements. We are captivated by all this cool, new technology, but how much of the technology do we really use? How can you be sure you gain the most value from the technology choices you make?

Every decision made within your organization, whether its a change in process or the addition of new technology, is directly related to value. If you use technology that provides little or no value, it actually has a negative effect on your organization. Your people become desensitized to leadership initiatives and they discount any new process or technology before they even give it a shot. We should routinely ask ourselves if our choices provide value, and if the answer is no, then changes need to be made.

Most likely, you agree that technology improves the efficiency and effectiveness of your dealership. It allows the organization to operate at a high level and remain competitive. Technology is clearly a valuable tool- you rely on it for your day-to-day business functions, but we still need to ask the important questions: How do you measure its value? How do you know when the processes you have in place are producing optimum results or whether they need to be reconsidered?

Value can be measured by response time, profit, customer satisfaction, return on investment, or by answering questions such as: Have efficiency and productivity improved? Have there been improved communications and information? Most importantly, are you reaching your short term and long term goals with your current system?

For Ray Riley, the general manager of Liberty Toyota in Colorado, the value of using the technology he chose for his dealership is clear. He sees the value gained through his CRM as it directly increases his profit, creates happier customers, and leads to less turnover of his sales staff.

My CRM technology brings a whole new element into the sales process, says Riley. It enables us to show customers a variety of customized workups. Then it generates a presentation showing customers multiple options with precisely what theyll pay each month, depending on variables such as credit score, down payment, rate, and number of payments.

Ten months into the year, sales at Liberty Toyota are up 356 cars. They are selling an additional 40 cars per month, which is a 16 percent increase in sales. The value of his technology is evident in the response from customers and the increase in sales.

Value is realizing direct and measurable results. If you see results such as increased profit and customer satisfaction that can be attributed to the choices you make for your dealership, then you are creating value. If, however, your dealership is not reaping the benefits, its time to take action and make some changes.

Jonathan Ord is CEO of DealerSocket, a CRM software provider focused on providing the most comprehensive solution available to the U.S. automotive dealership market. He can be reached at 949-900-0300 or visit www.dealersocket.com for more information.

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