CALL US AT 1.866.756.2620

Tag Archive: Internet Lead Management

Alan Ram

Is Your Dealership in Conflict?

Chess

Here’s the problem at many dealerships: In our heads, we know what we want our people to be doing on a daily basis, but our actions and processes (or lack thereof) contradict what our heads are thinking, and we end up sending our staff conflicting messages. What do many of you see as you walk through your showroom? You might see five salespeople standing out on the point for three hours, waiting for one customer while discussing their upcoming fantasy football draft. As a dealer, that should make you crazy. What do you want to see? You want to see your people working the phones EFFECTIVELY and driving better quality traffic to the dealership.

Here are a couple issues I see at play at many dealerships:

First and foremost is your open floor. There is absolutely no benefit to you as a dealer in having an open floor. NONE!! All an open floor does is encourage your people to stand around and do nothing while they wait around for a floor up that was coming in anyway.

I see this happen all the time; a dealership has my training and their people are excited to work the phones. A couple salespeople, who don’t necessarily think it’s part of their job to actually follow up or generate anything, continue to stand out on the lot…and wait. Luckily for them, they don’t have to compete anymore for floor traffic with all the salespeople who are doing what you want them to do on the phones. Let’s just say that one of the salespeople standing around happens to bump into a customer that buys a car. Pretty soon the salespeople who are on the telephone, doing what you want them to do, start realizing that they’re not having a chance to even get an up. Now human nature takes over and they start the migration back to the front door. They indirectly feel that they are being punished by doing what you asked them to do. Your open floor is hurting productivity and needs to go.

Have you ever had to bribe your kids to get them to eat their candy and ice cream? “Now Billy, if you don’t eat your ice cream, you’re not going to get any candy.” I doubt that’s a conversation that happens at anyone’s house. It’s more like, “If you don’t eat your Brussels sprouts, you don’t get dessert”. You don’t need to convince them to eat their candy and ice cream. They were going to eat that anyway. To me, spiffing your salespeople for selling your floor ups is the same thing. They’re going to take your floor ups whether you spiff them or not! If a salesperson that sold 25 cars off strictly floor ups was to leave tomorrow, how many deals would you lose? Probably none. Why? Because those customers would still come in. They would just be distributed differently. What about that salesperson that sells 20 cars a month off primarily their own efforts to repeat and referral clients? If that salesperson was to leave, how many deals would you lose? I would say all of them. Therefore, a salesperson that sells repeat and referral customers is far more valuable to you than one that sells floor ups. If you’re going to have a spiff program, let’s spiff them for what you want them to do versus what they were going to do anyway! A referral spiff for example. If it really is a referral your salesperson generated through their efforts, wouldn’t it make sense to spiff them for it?

We also all want our sales staff doing a better job at working (mining) their sold customer base. What if we spiff them for selling repeat customers or for turning service customers back into sales clients. Now you have your salespeople thinking, “I make more money by selling a repeat or referral client than I do a floor up.” That’s when they’ll start focusing on those things you want them to focus on. That’s when you’re using your spiff money to change their behavior and ultimately change the culture. You will not sell one less car by eliminating a unit bonus, but you’ll sell a lot more cars by instituting a repeat and referral spiff.

The key to this coming together and getting the results you want is obviously training. Your people need to be trained on how to get results on the phone. When they’re trained it gives them confidence. When they have confidence, they’re much more likely to be successful and they gain momentum. It all starts with training and having processes in place that are consistent with, and not in conflict with, what you want to see happening on your showroom floor.

Permanent link to this article: http://blog.ncm20.com/2015/07/dont-let-business-development-kill-your-business/

Alan Ram

To be or not to BDC? That is the question.

Phone

Here’s a question for you:
Is your BDC the result of a failure in training?

That should have your attention.  If I’ve ever written an article that will be misconstrued, this will be the one! Let’s get this straight; your people don’t suck on the phones because you don’t have a BDC! They suck because you haven’t properly trained them! As I’ve talked to dealers over the years, I’ve seen many BDC’s spring up out of knee-jerk frustration. While there are obviously exceptions to the rule, this is something I’ve seen repeated in the industry over the past several years.  A dealer says, “We tried training our salespeople, but they’re still terrible at handling phones, so we’ve hired three people and all they’re going to do now is handle our inbound sales calls, as well as Internet leads.” I have a number of different problems with this thought process, and I’m happy to tell you about them:

1) So you’re telling me that the people that you’ve hired to sell Lexus in Chicago are capable of talking to a customer that walks into the dealership, but for some reason, it blows their flipping minds to talk to that same customer on the telephone or communicate via email? I’m not willing to accept that.

2) I have trained tens (if not hundreds) of thousands of salespeople and BDC reps over the years. In that period of time, I have found that it takes every minute as long to PROPERLY train a BDC rep as it does a salesperson. The operative word in the previous sentence is “properly.” As a matter of fact, it takes longer to train a BDC rep. Why? Because while the sales staff already knows the product, the BDC staff is starting from scratch. I’ve asked BDC reps specific product questions before, and you may as well be asking some of them the gross domestic product of Bolivia. So while you think you’re solving one problem, you’re really creating another. Most of the calls I listen to that are made into BDC’s do not represent an improvement over the sales staff. At most, it’s the “get the customer’s name and number” department while trying to set up an appointment without giving the customer an actual reason to come in. I’m not trying to be harsh here. This is fact. We are creating an unnecessary level of specialization at many dealerships.

3) In this day and age, where the number one thing I hear when I do dealer 20 group meetings is “expense, expense, expense!”, shouldn’t the number one expense be hiring a second group of people to do the job the first group should have been doing? We’re talking about communicating with customers on the telephone and Internet here! This stuff isn’t quantum physics. It amazes me that the same dealers who throw up in a trash can when they get a $1000 invoice for training have absolutely no problem adding as much as 20-40k of expense per month in creating a BDC.

4) With that model, no one will want to work for you! Your dealership will compound one of the biggest challenges we already have in this industry, which is the struggle to find good salespeople.  Put yourself in the position of a good sales-person looking for a place to work. You walk into a dealership to interview; it’s a beautiful facility and a great brand. Then the person interviewing you drops the bomb, “by the way, our BDC takes all sales calls as well as handles our Internet leads”. At that point, I would imagine you would stand up, thank the interviewer for their time, and walk out the door to the dealership that lets you handle phone-ups and Internet leads. Do not kid yourself! That is a huge challenge that many dealers hadn’t considered but are now facing. Good salespeople avoid working at those dealerships that severely restrict their opportunities, and those dealerships tend to become a culture of telemarketers and greeters.

Here’s the solution:
Train your people to do the jobs you hired them to do.

If I’m hired to sell cars at your dealership, I should be capable of communicating with customers in person, on the telephone, and online. That would be part of being a well-rounded salesperson. Unfortunately, salespeople don’t necessarily arrive on your doorstep well-rounded. It’s your job to train them. The sad fact is that much of what dealers have bought over the years in the name of training, hasn’t been anything close to training at all. Going to the Marriott and listening to myself or anyone else talk for eight hours is as much training as going to a baseball game is training for baseball. You might get educated, but you’re not necessarily going to get trained. For something to be considered training, three elements need to be present: 1) Education 2) Simulation 3) Accountability. If any of those three elements is missing, whatever you’re trying to accomplish probably isn’t going to happen.

Now I’m not trying to convince anyone to dismantle their BDC. What I’m telling you to do is make sure that you’re not replacing one group of people that you didn’t train properly, with another layer of expense that you’re not training properly either.

BDC’s ARE GREAT and provide a wonderful return on investment when you have them doing the right things the right way. For example, following up unsold customers. 39% of people surveyed say that the reason they would not come back to a dealership is because they didn’t like the salesperson for whatever reason. Too tall, too short, reminded them of their ex-brother-in-law or smelled like smoke. What this is saying is that your sales staff does not have a shot with 39% of what you think are their be-back opportunities. When the customer doesn’t like the salesperson they won’t tell him or her “we didn’t like you”. What will they say? “We’ve decided to hold off” or “We’re not going to do anything right now.” They won’t tell the salesperson, but they will tell someone else. That’s why it is critical that every dealership have someone in ADDITION to salespeople following up on each and every customer that visits the store. That is a great function for your BDC.

Another thing you can do is shift their focus to your service department. I have worked with many dealerships that have amazing success in having BDC representatives schedule both repair as well as recommended maintenance. They can actively be following up on recall notices and generating service revenue.  This is a huge opportunity.  Your service advisors are on the drive talking to customers. They’re in the shop checking on vehicles. Call your dealership. Try to get a hold of the service advisor sometime and see how often you get voicemail or get put on hold for a period of time.

So again, I’m not telling you to dismantle your BDC. Business Development Centers are great when they are actually developing business. Let’s just make sure you have yours focused on the proper opportunities.

ondemand

Permanent link to this article: http://blog.ncm20.com/2014/11/to-be-or-not-to-bdc-that-is-the-question/

Russell Grant

Five Must-Ask Questions to Better Position Your Marketing Spread

puzzleAs I speak to dealers it is clear that it is becoming increasingly difficult to develop a marketing strategy as more and more services and programs are being offered. Innovation due to big data has flooded the marketplace with plenty of marketing options. Dealers are left with tough decisions with respect to their ad spend.

Here are Five Questions to Consider with your Marketing Budget

1. Are you at the front of the food chain? Not a day that goes by that a dealer doesn’t tell me that more and more customers are shopping them on the Internet. Because of this, once the customer gets to the dealership the profit in the deal is minimal. Even this is a best case scenario because sometimes the customer doesn’t even get to the dealership. This is when I ask dealers this question: Tell me about your lead generation and your spend?

Dealers usually tell me how much they spend on 3rd party leads and how frustrating it is. I ask them about using their owner data so they achieve more 1st party leads than 3rd party leads. The key is using the data to drive your marketing so that you can identify your customer at the front of the buying cycle. The more 1st party leads you create, the less 3rd party leads you will need. Remember, a 3rd party lead has been passed out to several other dealers. Your success rate and ability to make more gross is diminished the further down the line you are.

2. Are you spending the majority of your budget on the people with whom you will have the greatest impact? I would compare this to politics. The first goal is to rally and excite your base. Second is to go after the swing votes. The further you move from left to right or right to left, the less impact you will have. The same is true in marketing. Start with an Owner Marketing Plan. Next, look at becoming more strategic with conquest marketing. Conquesting has become more cost effective with digital techniques. In the future, this will become more advantageous as you will be able to use better data to streamline your efforts.

3. Are you staying in front of customers who have shown interest? This has become a point of emphasis as dealers can drive a lot of visitors to their website, but conversion to an actual appointment is often low. Retargeting has become a great way to stay in front of these customers. Remember, customers are now in the market and doing research for up to 180 days before they buy. It is vital that we stay in front of this customer beyond initial contact. Email campaigns are a cost-effective way to accomplish this goal.

4. Are you making it easy to buy from your dealership? Great marketing should go beyond a response; it should also make it easier to buy from your dealership. When we get a customer response, if we don’t make it easy to buy, then it becomes too easy for the consumer to just go to another dealer’s website. Marketing has to push people down the sales funnel. By engaging your customer this way, it takes your customer to a deeper level within your dealership and diminishes the need for the customer to visit other dealership websites. We should value marketing that creates more dealership appointments and test drives.

5. Are we measuring correctly? Every dealer I speak to wants measurable results. Who can blame them? The challenge is: are we using measurements that correctly gauge how customers buy? Measuring customer timeframes will help us calculate the effectiveness of our spend. We should also calculate how much time on average it takes to close the sale. For example, if it takes an average of 62 days from initial contact to close of sale, then you need to figure how to lower the average number of days to close. Choose a sales process or marketing tool that will help you better track each customer, expedite the process and keep the sale in-house.

Look at your budget and ask these five questions, then look at programs for the future. This should give you a great start and, more importantly, a better position for your dealership’s budget. Innovation is coming to the marketplace – make sure you’re positioned to benefit from it.

internet

Permanent link to this article: http://blog.ncm20.com/2013/10/five-must-ask-questions-to-better-position-your-marketing-spread/