According to research carried out by IT firm Pinewood Computer Solutions, retailers often divert resources away from prospecting for sales when times are good.
But they could pay the price in an increasingly hardening market, particularly with a 4 per cent decline in European car sales recorded in February.
Pinewood, which makes the Pinnacle dealer management system, said its study of 1,040 retailers found some who had stopped prospecting altogether.
Managing director Neville Briggs said: “It is questionable whether some dealerships have adequate CRM skills available — it's a potentially dangerous situation. We found dealers who are enjoying strong footfall stop CRM activity almost completely because they are busy dealing with enquiries from customers who come to them.
“However when strong sales drop away in the motor industry, it usually happens quickly — these dealers have effectively set themselves up for a fall.”
Briggs insisted: “Dealerships should do everything possible to avoid a stop-start business cycle — CRM is a core activity for any car sales operation and should always be carried out as part of their day-to-day business.”