People: Organizational Development for BusinessGrowth & Increased Profits Ralph Paglia President | Automotive Media Partners, LLCRalph will present a combination of dealership case studies, strategydescriptions, tactical action items and recommended best practices allfocused on providing automotive professionals with the insights andknowledge to improve the way they grow their teams and businessrevenues. The key focus is on people, because all research shows thatin automotive retail, the key limiting constraint, or growth factor isconsistently the people that are attracted to, selected by and becomepart of each organization.
Courtesy Chevrolet in Phoenix, AZ becamethe USA’s leading Internet retailer of newand certified used Chevrolet vehicles…Human Resource Development was the key
Organizational Development for Business Growth and Increased Profits • Organizational Development is the primary and most essential stumbling block that many dealers and GM’s report as the reason for their Internet Sales and/or BDC Operation’s failure or lack of growth into strategically significant levels 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
Hire The Winners Assessment: and Assessment Example Hire The Winners Report Accurate Results in 20 Minutes
Growing Your Team’s Capabilities Allows Dealers to Feel More Confident about Online Ads100,000 Courtesy Chevrolet Monthly Web Traffic; Nov. 2005 through Jan. 2007 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 BZ Results site Cobalt GM PowerShift Site Reynolds Spanish Site SEO/SEM Driven Micro-Sites AZ Central-Chevy Site ClickMotive SEM Sites Other Sites
61,642 Leads Generated and Tracked within CRM System Courtesy Chevrolet Lead Volume by Broad Category Source TypeCRM & Non-Web Generated SEM/SEO Generated Leads Leads 14,792 18,738 24% 31% Third Party Sourced Leads 26,095 42% GM Provided Leads 1,997 3% SEM/SEO Generated Leads Third Party Sourced Leads GM Provided Leads CRM & Non-Web Generated Leads
Growing Your Staff using Large Quantities of Leads will Generate Higher Volumes of Sales 4,008 eBusiness Department Sales of New & Used Vehicles in a single year Segmented by Marketing Category (Total Store Sales >11,000) Unit Sales Volume by Lead Source Category CRM & BDC Recycled SEM/SEO Generated Leads Web Generated Leads 1,075 1,695 27% 42% Third Party Sourced Leads GM Provided Leads 989 249 25% 6%SEM/SEO Generated Leads Third Party Sourced Leads GM Provided Leads CRM & Non-Web Generated Leads
Growing Your Staff using Large Quantities of Leads will Result in Closing Ratio Variations Sales/Lead Closing Ratios ranged from 5.15% to 16.64% when18.00% segmented into categories based on Marketing Type 16.64%16.00%14.00% 11.76%12.00% 9.93%10.00%8.00%6.00% 5.15%4.00%2.00%0.00% SEM/SEO Generated Leads Third Party Sourced Leads GM Provided Leads CRM & Non-Web Generated Leads Total Lead Source Working Completed Invalid Leads Sold Leads Leads SEM/SEO Generated Leads 14,792 591 8,252 5,652 38% 1,075 11.76% Third Party Sourced Leads 26,095 1,339 17,838 6,909 26% 989 5.15% GM Provided Leads 1,997 55 1,316 501 25% 249 16.64% CRM & Non-Web Generated Leads 18,738 1,997 15,065 1,665 9% 1,695 9.93% Totals 61,642 3983 42471 14746 24% 4008 8.55% Monthly Averages for 2006 5,137 332 3,539 1,229 24% 334 8.55%
Internet Strategy Current National Close Rate 9% Realistic Planning Potential is 18% Pains 80% of a dealer’s Phone, Lead and Showroom traffic originates from the net… What is your dealer’s current marketing strategy? Lead providers? What is submission ratio from dealer’s site? Who updates it? Dedicated people? Process? Pricing strategy? Does dealer monitor and measure visitors, leads, response rate, appt%, show%, close%, profit, CSI, etc… eBusiness training? Strategic Drive TRAFFIC to an INTERACTIVE web site that generates leads that flow into Goal dealer’s PROCESS engine which converts them into SALES. Convert Internet leads into showroom visitors that buy cars Tactical Use a predefined and consistently executed inquiry response process,Objectives customized email templates and phone scripts that result in appointments that generate increased customer visits to the dealership Process 1. Autoreply acknowledges inquiry and sets customer expectations 2. Email with price quotes on several vehicles and sets stage for phone contact is sent within 30 minutes of lead arrival (business hours) 3. Call customer on phone within 45 minutes 4. Schedule showroom visit & test drive appointment 5. Confirm Appointment via email AND 3rd party phone callTechnology •Internet leads from ALL sources routed into Lead Management Tool that integrates with DMS, reducing keystroke entry of customer information •Wireless devices for ISS’s that integrate with Lead Management Tool Metrics Lead volume by ISS with response time, appointment & closing ratios
Creating Process Execution Capabilities Drives Staffing Requirements No dealership has unlimited process execution capabilities…
Growing Your Sales Team Requires that you Define what Your Lead Response Process Should Look LikeInbound Internet Lead Management Process Dealer Lead Dealer Lead Management Management Process Map Process Map
Growing Your Sales Team works best when it occurs “Organically” and is Specialized Organic Growth: Specialization = ScalabilityEvolution of a single point Chevy dealer into an online marketingbehemoth with 3 fully staffed BDC Team’s, an eFinance SalesTeam and 4 Internet Sales Teams. These 8 teams of automotivesales professionals are identified as follows:1. New Chevrolet BDC 5. New Chevrolet Internet Sales2. Used Car BDC 6. Used Car Internet Sales3. Wholesale Parts BDC 7. Bell Road Internet Sales4. eFinance Sales Team 8. Commercial Internet Sales Let’s Take a Look at How It Happens…
eBusiness Teams – Phase 1 Ralph Paglia Ralph Paglia Mike Gordon IT Director Begins at Courtesy Begins at Courtesy as eBusiness Director as eBusiness Director BDC Manager BDC Manager Internet Sales Manager Internet Sales Manager New & Used New & Used New & Used New & Used Vehicle Sales Dept. Vehicle Sales Dept. Vehicle Sales Dept. Vehicle Sales Dept. CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 11 22 33 44 55 66 77 88Phase 1 Sales Results: Internet sales averaged 88 units per month (new & used) BDC generated sales averaged 92 units per month (new & used)
eBusiness Teams – Phase 2 Ralph Paglia Ralph Paglia CRM/eBusiness CRM/eBusinessMike Gordon IT Director Director Director Joel Matteson Joel Matteson George Salman George Salman BDC Manager BDC Manager Internet Sales Manager Internet Sales Manager New Vehicle Sales New Vehicle Sales New Vehicle Sales New Vehicle Sales S p lit 80 sales 70 sales Slit p & G rw o & ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR Gw ro 11 22 33 44 55 66 77 88 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 Francisco Abalos Francisco Abalos 40 sales BDC Manager BDC Manager Bryan Long Bryan Long Used Vehicle Sales Used Vehicle Sales Internet Sales Manager Internet Sales Manager on Po N e w siitt w io Used Vehicle Sales Used Vehicle Sales Po N iio n on P o Ne w siitt w s CSR CSR CSR CSR 40 sales P Ne 9 10 11 12 s ISS ISS ISS ISS ISS ISS ISS ISS 99 10 10 11 11 12 12 Kelly Slaughter & Lisa Sarata Kelly Slaughter & Lisa Sarata CRM Administrators CRM Administrators •Phase 2 Team Expansion: Phase 2 Team Expansion: Internet split into new and used managed teams Internet split into new and used managed teams New New BDC split into new and used managed teams BDC split into new and used managed teams Position Position CRM administrative position added (showroom) CRM administrative position added (showroom)
eBusiness Teams – Phase 3 Ralph Paglia Ralph PagliaMike Gordon IT Director CRM/eBusiness Director CRM/eBusiness Director Joel Matteson Joel Matteson George Salman George Salman BDC Manager BDC Manager Internet Sales Manager Internet Sales Manager New Vehicle Sales New Vehicle Sales 100 sales 90 sales New Vehicle Sales New Vehicle SalesCSR CSR CSR CSR CSR CSR CSR CSR CSR CSR ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISSCSR CSR CSR CSR CSR CSR CSR CSR CSR CSR 1 2 3 4 5 6 7 8 9 10 11 22 33 44 55 66 77 88 99 10 10 1 2 3 4 5 6 7 8 9 10 Francisco Abalos Bryan Long Bryan Long Francisco Abalos BDC Manager Internet Sales Manager Internet Sales Manager BDC Manager Used Vehicle Sales Used Vehicle Sales 60 sales 50 sales Used Vehicle Sales Used Vehicle Sales CSR CSR CSR CSR CSR CSR ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS 11 12 13 14 15 16 11 11 12 12 13 13 14 15 16 14 15 16 Patrick Miller Patrick Miller New Courtney Daly Courtney Daly Ron Daly & Scott Daly Ron Daly & Scott Daly Internet Sales Manager New Internet Sales Manager Position eFinance Admin. eFinance Admin. Special eFinance Team Special eFinance Team Nw Position e N w e Courtesy On Bell Courtesy On Bell 35 sales Ta em Ta em 25 sales Lisa Esquivez Lisa Esquivez Omara Spriggs Omara Spriggs Designated Sales Consultants eFinance BDC eFinance BDC efinance Sales efinance Sales Certified to Handle Internet Lead Appointments •Phase 3 Team Expansion: Phase 3 Team Expansion: Kelly Slaughter & Cecy Girod Kelly Slaughter & Cecy Girod Special eFinance team Special eFinance team CRM Administrators CRM Administrators Courtesy-on-Bell ISM Courtesy-on-Bell ISM
Dynamically Accurate Job Descriptions and Clearly Defined Pay Plans Clearly defined job descriptions that include minimum levels of performance, as Clearly defined job descriptions that include minimum levels of performance, as well as what measurements and levels will be determined as “superior” well as what measurements and levels will be determined as “superior” performance may be the single greatest missing ingredient in dealership performance may be the single greatest missing ingredient in dealership management execution today… management execution today… “It is a clear and inarguable fact that creating and maintaining precise job descriptions and detailed pay plans is a management responsibility… If you are incapable of writing a detailed job description, then you are simply not qualified to manage employees assigned to perform that job… PERIOD!” – Ralph Paglia
Document Roles and Responsibilities For All Internet Sales Positions
Document Pay Plan and Bonus Structurethat reflects taller Internet sales funnel * July 2006 Interactive Marketing Budget
Lead Volume puts pressure on response times Lead Volume puts pressure on response times as aafactor of staffing levels! as factor of staffing levels!
Staffing and Organizational Structure Determines Process Execution Capabilities and Monitoring % of Purchase StatisticalTop 4 Ways 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 #4 Make sure Customers are either Completely or Very Satisfied with the Lead Response 21% 24% 3 *Survey Participants who Purchased a Vehicle were identified via RDR data cross reference and matching with Internet Lead Data
Staffing and Organizational Structure Determines Process Execution Capabilities and MonitoringCustomer 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 havea “paint by numbers” guideto what is expected when a lead is received. This process map focuses on the first 12 hours after a new lead is received.
Lead Process Maps shouldcontain brief explanationsfor the logic and executiontips for employees to reviewbefore actually using theemail templates, phonescripts and word tracks.Actual template illustrationsmake it easy for dealershipemployees to recognize theright template or documentwhen they see it in theirCRM tool.
When Lead Process Maps areindexed to correspondinglynumbered email templates,phone scripts and word tracks,the dealership is far more likely toexecute the repetitious tasks thatcreate customer experienceswhich correlate with higher salesclosing ratios. The best processmaps break down email andphone contact processes intoseparate flows so that they canbe executed by differentresources when scaling up leadvolumes and organizationstructures.
Have a defined process for “closing out” unsold leadsAlthough many car guys will say they believe in the concept of following up until prospectseither buy or die… Large scale lead generation through highly effective marketing practicesrequires that scarce resources be allocated to where they will generate the most sales.Outsourcing followup on leads that have reached a designated status (dormant) or assigningthem to alternate resources such as a BDC will allow ISS’s to stay focused on the 50% of theleads that buy, and do so within the first 10 days
Actual OEM Internet Mystery Shop Scoring Index LMP Scoring Index Objective Review of Dealership Employee Lead responses encourages consistency and creates a numeric accountability – an LMP Report Card for Dealer or GM review…
Nothing has more impact on results than phone and/or SMS contact with the customer!Outbound phone calls, ongoing phone and SMS follow-up andresponding to emails requires adequate staffing and skill levels
Telephone Process• 85% of Web visitors who contact the dealershipbefore coming into the showroom, use the phone• Direct Phone contact (after responding to an Internetlead by email), has the greatest impact on increasingsales closing ratiosPhone Follow-Up Sales Strategy:• Focus on having a set of objectives in front of us, eachtime we make an email follow-up call• Word Track Forms (scripts) are used for training andcollecting customer information during each call that ismade immediately after sending personalized emailresponse
Ralph PagliaCell: 505-301-6369RPaglia@gmail.comwww.RalphPaglia.com Questions and Answers…Reference Links:http://www.ADMPC.com(AutomotiveDigitalMarketing.com)http://slideshare.net/RalphPagliahttp://www.dealerELITE.nethttp://www.hirethewinners.com/adm