Courtesy Chevrolet sold over 11,000 new and used vehicles in 2006, of which over 4,000 originated from Internet generated leads (electronic and phone).
Average monthly sales total for the combined Internet Sales and BDC teams was 180 vehicles per month…
Split both the BDC and Internet Sales Teams from 2 to 4 managed profit centers, and increased BDC rep’s from 8 to 12, increased ISS’s from 8 to 12… Average monthly sales total for the combined Internet Sales and BDC teams rose to 220 vehicles per month… Added CRM Administration Staff of 2, and moved telephone switchboard receptionists to 2 nd floor and off of the showroom floor. CRM admin staff funded with money previously used for outside vendor’s unsold showroom follow-up USPS direct mail program and newly structured Lead Quality Program that tracks invalid leads and credits for those invalid leads from 3 rd Party Lead Providers.
Added Special eFinance Team to handle online credit applications (720 received in July 2006 with 44 sales generated at $116,000 in gross profits), Added a Courtesy on Bell Road satellite store Internet Sales Manager to handle eLeads and set up appointments for sales staff… The Courtesy Chevrolet CRM/eBusiness Teams combined sales objectives & monthly capacity rose to 360+ CRM/eBusiness Facilitated Vehicle Sales per Month…
Clearly defined job descriptions serve strategic objectives before and after hiring people for each eBusiness position… Providing itemized lists of tasks in detail, along with clearly and objective performance evaluation criteria ensure that all members of the team are focused on the same goals and day to day task completion efforts. For recruiting, a clear job description makes it easier for good people to leave their current situation and know what they are getting into, how they will be both evaluated and paid… Demystify the Internet Sales Specialist job!
Pay plans should be progressive in a manner that creates extra rewards for deals sold at the beginning of the month, based on selling incremental units during the second half of the month. Performance bonuses based on process evaluation metrics should have minimum lead volume qualifiers to ensure that those who take on more leads than others are not penalized for handling extra work load.
Amongst all the attributes of a dealer’s response to an Internet Lead, the time from when a customer submits a lead to when they have received a personalized email message that directly addresses their inquiry consistently shows up as correlating with sales closing ratios… All response content equal, faster dealers will outsell slower dealers. However, Content is still King in that a poor response sent quickly will reduce sales closing rates. It is important to realize that lead response time is a qualifier, an index that determines maximum closing rate upper limits. Once again, it is what the customer experiences, not how or who does it that determines the results.
Lead Management Process is no longer as much an art as it has become a science… Numerous studies that utilize an OEM database matching process which tracks leads and the eventual Retail Delivery Report, then correlates sales for the brand, sales by the original lead receiving dealer, with significantly large volumes of customer submitted survey responses provide a clear and objective analysis of what the customer experiences, the differences in those experiences and their correlation with likelihood of purchasing from the dealer that received the lead. This ability to actually measure what each dealer does with their leads, through the eyes of the customer, and how these activities correspond with a sale, or a lost sale, allow a scientific management approach to Lead Management Process in a manner that absolutely WILL impact sales results from a given volume of leads.
Here is a simplified illustration of what happens at Courtesy Chevrolet in Phoenix when a new lead is received from a customer requesting a price quote on either a vehicle in stock or one that the customer has configured. Although Courtesy is fairly unique in that a BDC supports each Internet Sales Specialist with telephone follow-up, it is important to understand that this is actually a compromise in the store’s original LMP so as to enable the scalability to handling monthly lead volumes that frequently exceed 6,000 leads in a month, and over 60,000 leads a year… It is important to understand that achieving the customer experiences that impact sales closing ratios in a positive manner is a more important objective than who actually completes the tasks associated with those experiences… The customers are less concerned with who provides them with good service, than they are in actually receiving it!
Best Practices for Screening, Selecting and Hiring Dealership EmployeesHow important is it to hire and train the right people while building asales team that can convert opportunities created by marketing intoactual sales results?Organizational development is more important than ever before…with many dealerslosing staff while cutting costs during the depths of the recession, those that aregrowing their business need effective strategies, tools and tactics for attracting,screening and hiring the best Internet sales professionals with the greatest chance ofachieving their own personal success, as well as sales productivity for the dealership.This session will explore organizational development strategies, recruiting, screening,hiring and training tools as well as the materials and processes that the mostsuccessful dealers in America have been using for years, and are being used today asa means of increasing success in the hiring process. Ralph Paglia will share the toolsand processes he has used to build some of the most successful Internet salesdepartments in America while teaching attendees what the essential "must haves" are,and how to get them when seeking to grow your sales departments into highperformance digital marketing to sales conversion engines.
Growing Your Internet Staff from 10 to 300 Cars per Month
Courtesy Chevrolet in Phoenix, AZ becamethe USA’s leading Internet retailer of newand certified used Chevrolet vehicles…Human Resource Development was the key
“This is a people business…” Organizational Development is the essential stumbling block that many dealers and ISM’s report as the primary reason for Internet Sales Operations failure or lack of growth into a strategically significant level of sales.
Create a Video that showcases why People want to Work for Your Dealership• Training• Compensation• Benefits• Supportive Team• People Matter• Career Growth
Use Video Role Play Assessment• Pre-Screen Applicants• Identify Training Opportunities• Invest Time with the Most Qualified Candidates• Use as a Recruiting Tool• Ideal for Social Media based Recruiting• Don’t waste valuable ($$$) management interview time on applicants destined to fail!
Process Execution Capabilities Drive Staffing Requirements No dealership has unlimited process execution capabilities…
Growing Your Internet Sales Team Requires that you Define what Your Internet Process Should Look Like…Dealer LeadManagementProcess Map
Growing Your Internet Sales Team works best when it occurs “Organically” and is Specialized Organic GrowthCourtesy Chevrolet is a single point Chevy dealer with(at one time) 3 fully staffed BDC Team’s, an eFinanceSales Team and 4 Internet Sales Teams. These 8 teamsof automotive sales professionals are identified asfollows:Chevrolet BDC• New • New Chevrolet Internet Sales• Used Car BDC • Used Car Internet Sales• Wholesale Parts BDC • Bell Road Internet Sales• eFinance Sales Team • Commercial Internet Sales Let’s Take a Look at How It Happened…
Courtesy Chevrolet eBusiness Teams – Phase 1 Ralph Paglia Mike Gordon IT Director Begins at Courtesy as eBusiness Director BDC Manager Internet Sales Manager New & Used New & Used Vehicle Sales Dept. Vehicle Sales Dept. CSR CSR CSR CSR CSR CSR CSR CSR ISS ISS ISS ISS ISS ISS ISS ISS 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8Phase 1 Sales Results: Internet sales averaged 88 units per month (new & used) BDC generated sales averaged 92 units per month (new & used)
Courtesy Chevrolet eBusiness Teams – Phase 2 Ralph Paglia CRM/eBusinessMike Gordon IT Director Director Joel Matteson George Salman BDC Manager Internet Sales Manager New Vehicle Sales New Vehicle Sales Sp l i t 80 sales 70 sales Spl & it ISS ISS ISS ISS ISS ISS ISS ISS Grow CSR CSR CSR CSR CSR CSR CSR CSR & 1 2 3 4 5 6 7 8 Gro 1 2 3 4 5 6 7 8 w Francisco Abalos 40 sales BDC Manager Bryan Long Used Vehicle Sales Internet Sales Manager n si t w io Used Vehicle Sales Po Ne n sit w CSR CSR CSR CSR 40 sales io Po N e 9 10 11 12 ISS ISS ISS ISS 9 10 11 12 Kelly Slaughter & Lisa Sarata CRM Administrators •Phase 2 Team Expansion: Internet split into new and used managed teams New BDC split into new and used managed teams Position CRM administrative position added (showroom)
Courtesy Chevrolet eBusiness Teams – Phase 3 Ralph PagliaMike Gordon IT Director CRM/eBusiness Director Joel Matteson George Salman BDC Manager Internet Sales Manager New Vehicle Sales 100 sales 90 sales New Vehicle SalesCSR CSR CSR CSR CSR CSR CSR CSR CSR CSR ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Francisco Abalos Bryan Long BDC Manager Internet Sales Manager Used Vehicle Sales 60 sales 50 sales Used Vehicle Sales CSR CSR CSR CSR CSR CSR ISS ISS ISS ISS ISS ISS 11 12 13 14 15 16 11 12 13 14 15 16 Patrick Miller New Courtney Daly Ron Daly & Scott Daly Internet Sales Manager eFinance Admin. Special eFinance Team Position New Courtesy On Bell 35 sales Tea m 25 sales Lisa Esquivez Omara Spriggs Designated Sales Consultants eFinance BDC efinance Sales Certified to Handle Internet Lead Appointments •Phase 3 Team Expansion: Kelly Slaughter & Cecy Girod Special eFinance team CRM Administrators Courtesy-on-Bell ISM
Courtesy Chevrolet CRM/eBusiness New BDC with 27 Work Stations
Document Roles & Responsibilities for All Positions
Document Pay Plan & Bonus Structure thatreflects taller Internet sales funnel * July 2006 Interactive Marketing Budget
Lead Volume puts pressure on response times as a factor of staffing levels!
Organizational Structure Determines Process Capabilities and Monitoring Requirements… % of StatisticalTop 4 Ways Purchase to Close Dealer Response Attributes Respondents* Purchase* Correlation among the Factor of who DIDMore Sales Experienced by Customers within NOT Leads who Response attribute to Leads DID Received 24 hours of Submitting an Inquiry experience the attribute Experience with Vehicle Purchase the attribute Make Direct Phone Contact with Customer #1 (after sending Email w/availability & prices) 17% 27% 11 #2 Send Price Quotes by Email to Customer 20% 27% 9 Contact Customer more than once by Email #3 and Telephone (within First 24 Hours) 21% 25% 5 Make sure Customers are either Completely or #4 Very Satisfied with the Lead Response 21% 24% 3
Staffing Determines Process Execution Capabilities and Monitoring Requirements…Customer goes onlineand submits Lead Internet Sales Specialist ISS) reviews lead, selects 4 vehicles for Price Quotes Sends email with Quotes & Cars BDC Staff makes initial phone call, collects customer info, sets up an appointment for the ISS If no appointment, ISS Contacts customer and seeks appointment and/or agreement
Lead Process Maps should be indexed to email templates, phone scripts and word tracks so thatdealership employees have a “paint by numbers” guide towhat is expected when a lead is received. This process mapfocuses on the first 12hours after a new lead is received.
Lead Process Maps should contain briefexplanations for the logic and execution tips for employees to review before actually using the email templates, phone scripts and word tracks. Actual template illustrations make it easyfor dealership employees to recognize the right template or document when they see it in their CRM tool.
When LeadProcess Maps are indexed to correspondingly numbered email templates, phone scripts and word tracks, thedealership is far more likely toexecute the repetitious tasks that create customer experiences which correlate with higher sales closing ratios. The best process maps break down email andphone contact processes into separate flows so that they can be executed by different resources when scaling up lead volumes and organization structures.
Have a defined process for “closing out” unsold leadsAlthough many car guys will say they believe in the concept of following up untilprospects either buy or die… Large scale lead generation through highly effectivemarketing practices requires that scarce resources be allocated to where they willgenerate the most sales. Outsourcing followup on leads that have reached adesignated status (dormant) or assigning them to alternate resources such as a BDCwill allow ISS’s to stay focused on the 50% of the leads that buy, and do so within thefirst 10 days
Nothing has more impact on results than phone contact with the customer!Outbound phone calls, ongoing phone follow-up andresponding to emails requires adequate staffing and skilllevels
Telephone Process• 85% of Web visitors who contact the dealershipbefore coming into the showroom, use the phone• Direct Phone contact (after responding to anInternet lead by email), has the greatest impact onincreasing sales closing ratiosPhone Follow-Up Sales Strategy:• Focus on having a set of objectives in front of us,each time we make an email follow-up call• Word Track Forms (scripts) are used for trainingand collecting customer information during each callthat is made immediately after sending personalizedemail response
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Questions and Answers…Ralph PagliaCell: 505-301-6369RPaglia@gmail.comwww.RalphPaglia.comReference Links:http://www.ADMPC.comhttp://slideshare.net/RalphPagliahttp://www.hirethewinners.com/admhttp://www.Automax.com