Nearly two-thirds of the automotive retailers in the United States and Canada expect their revenues to increase this year, on average by about 15 percent, according to a survey conducted on behalf of The Reynolds and Reynolds Company.

The survey was conducted in April among 706 dealerships in the United States and Canada. The results showed that 64 percent of those surveyed expect to see gains in revenues. In addition, according to the survey, nearly 33 percent of U.S. dealerships and 20 percent of Canadian dealerships plan to increase their number of locations or add franchises.

According to Reynolds and Reynolds, the survey also asked respondents to rank their priorities for the remainder of the year. Automotive retailers indicated that increasing customer loyalty is their top priority. Keeping pace with technology and improving operations tied for second place in the priority rankings, while employee retention and training was third.

Lloyd G. "Buzz" Waterhouse, CEO, chairman and president of Reynolds and Reynolds, said the survey provides valuable insight for auto retailers, car companies and suppliers who are looking for a strong 2002 following the tumultuous year of 2001, when unprecedented financial incentives helped spur sales.

"This survey shows that profitability and customer loyalty remain top concerns for automotive retailers. They will be looking to suppliers to provide innovative products, services and training solutions to enable them to reach and retain customers in new and meaningful ways," he said.

Waterhouse said that some of these ways include: new customer prospecting, service reminder and loyalty programs, new Web marketing and online lead generation tools and CRM training for staff. According to the survey, four out of 10 dealers will increase spending on customer retention activities. Sixty-two percent of dealers said they would use their Dealership Management System (DMS) provider for service reminder and loyalty programs, while more than four out of 10 expect support by their DMS vendor for direct marketing, lead management and Web marketing.

According to the survey, larger dealerships are looking for DMS vendors to provide data integration, service price guides, technical consulting, assistance with regulatory compliance, Internet connectivity, data cleansing, Web services, disaster recovery and assistance with car company communications.

The survey also indicated that dealers expect to invest in improving employee skills in technical areas, including the Internet, Systems Administration, Hardware/Networking and Microsoft Office-with 64 percent expecting their training focus to increase significantly in the next two years. Dealers indicated a preference for on-site training, followed by Web-based or self-instruction-approaches that provide employees hands-on experience in their own environment.

Respondents to the survey indicated interest in utilizing outside expertise to help improve the flexibility and integration of their CRM programs - including direct mail, lead management and Web marketing initiatives.

"The results of this survey confirm that dealers are looking to CRM, technology integration, innovative Web services and comprehensive training to deliver those results," said Waterhouse. "And when it comes to selecting partners to provide these solutions, they're looking for companies who understand the unique needs of the auto retailing industry - companies like Reynolds and Reynolds," Waterhouse said.

Waterhouse said that Reynolds is driving the change to a more connected model in automotive retailing through the Reynolds Generations Series family of products and services. As one example, its Web brand management capability provided through Reynolds Automark Web Services updates inventory continuously on retailer web sites.

Other survey results include a growth in spending for preprinted forms (47 percent) and an increased willingness to order supplies online (43 percent). Reynolds is meeting this need through ReySource(tm), its award-winning direct sales channel, which provides a convenient way for dealers to leverage the power of Internet technology to simplify their billing and supply management issues for their customers.

Reynolds and Reynolds (www.reyrey.com) is a provider of integrated solutions that help automotive retailers manage change and improve their profitability. With 75 years of experience serving automotive retailing, Reynolds claims to enable car companies and retailers to work together to build the lifetime value of their customers. The company's software, service and training solutions include a full range of retail and enterprise management systems; networking and support; e-business applications; Web services; learning and consulting services; customer relationship management (CRM) solutions, document and data management and leasing services. Reynolds serves more than 20,000 customers comprising 90 percent of the automotive retailers and all car companies in North America. It conducts CRM consulting services on five continents.