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7 profit leaks

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7 profit leaks

  1. 1. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation DEALER CRM BUSINESS DEVELOPMENT 7 POINTS OF OPPORTUNITY
  2. 2. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation 1. INBOUND SHOWROOM Objective: Ensure collection of complete customer contact information Process: 1. Greet Customer 2. Collect customer information including email 3. Log information into Dealer CRM application 4. Generate number from CRM app - required to work deal 5. Provide Salesperson incentive Technology: • Key control tied to CRM application that integrates with DMS. • Data used by CRC for sold and unsold follow-up activities Metrics: Daily CRM Application Showroom Traffic Report by Salesperson
  3. 3. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation Inbound Showroom
  4. 4. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation 2. INBOUND PHONE Objective: Ensure collection of customer contact information and consistency of phone techniques Process: 1. Receptionist routes calls to CRC (Sales and/or Service) 2. Answer calls using scripts 3. Schedule an appointment 4. Enter Customer information into CRM application 5. BDC re-contacts customer Technology: • Calls automatically identified by caller ID and ad source • Data entered into CRM app. and recorded Metrics: Customized Sales Call Reports identifies Source and call volume by CRC staff with appointment to volume %
  5. 5. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation Inbound Phone
  6. 6. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation 3. INBOUND INTERNET Objective: Convert Internet Leads into showroom visitors that buy Process: 1. Respond to inquiry via email within 30 minutes using templates 2. Answer customer questions in first personalized email 3. Email quote on several vehicles, set stage for call 4. Call customer on phone within 2 hours 5. Schedule Appointment 6. Confirm appointment via email AND phone call Technology: • Internet Leads from ALL sources routed into Lead Management/CRM app that integrates with dealer’s DMS • Wireless device that integrates with CRM application Metrics: Lead volume by ISM with response time, appointment/closing ratios
  7. 7. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation Inbound Internet
  8. 8. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation 4. OUTBOUND UNSOLD FOLLOW-UP Objective: Convert Unsold Opportunities into showroom visitors that buy Process: 1. CRM application automatically generates daily customer contact action plan 2. Management conducts daily Save-A-Deal meeting 3. CRC executes follow-up contact by phone, mail and email 4. Schedule appointment with customer to visit dealership 5. Make appointment confirmation call and send email Technology: • CRM app schedules unsold follow-up completed by CRC staff. • Future follow-up is “results based” on today’s activity. Metrics: Contact volume by CRC staff with appointment/closing ratios
  9. 9. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation Business Development Center Outbound Unsold Follow-up
  10. 10. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation 5. OUTBOUND SOLD FOLLOW-UP Objective: Maintain contact throughout the ownership cycle focused on customer satisfaction ensuring a pattern of repeat business Process: 1. CRM application schedules sold follow-up calls, letters and emails according to a preset timeline (Lease Renewals, RTCM) 2. CRC completes customer contact utilizing scripts & templates 3. Schedule appointment 4. Make appointment confirmation call and send email Technology: • CRM app integrated with DMS so that sales activity automatically schedules sold follow-up to be completed by CRC staff • Future follow-up is “results based” on today’s activity Metrics: Contact volume by CRC staff with appointment/closing ratios
  11. 11. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation Outbound Sold Follow-up
  12. 12. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation 6. OUTBOUND SERVICE FOLLOW-UP Objective: Every customer who has their vehicle serviced by the dealership is contacted to ensure satisfaction and generate repeat business Process: 1. CRM application schedules service follow-up calls 2. CRC completes customer contact utilizing scripts & templates 3. Schedule appointment 4. Make appointment confirmation call and send email Technology: • CRM app integrated with DMS so that R.O.’s automatically trigger next day follow-up to be completed by CRC staff • CRM application creates action plans based on anticipated service needs based on mileage and time intervals. Metrics: Service customer contact completion rate by each CRC staff
  13. 13. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation Outbound Service Follow-up
  14. 14. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation 7. OUTBOUND SALES PROSPECTING Objective: Proactively contact customers not currently in dealer’s portfolio of business to increase conquest sales and AOI market share Process: 1. Customer lists downloaded into CRM application 2. CRM app. schedules prospecting calls, direct mail & email 3. CRC completes customer contact using scripts & templates 4. Schedule appointment 5. Make appointment confirmation call and send email Technology: • CRM app. integrated with DMS so that customer data is available upon arrival without duplicate data entry • CRM app. creates action plans based on identifying those people on list most likely to become customers. Metrics: Prospective customer contact completion rate by each CRC staff
  15. 15. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation Outbound Sales Prospecting Business Development Center
  16. 16. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation SAMPLE BUSINESS PRACTICES 1. SHOWROOM • All showroom traffic logged into Dealer CRM Applications (Customer Tracking software) Salesperson is protected for 72 hours – Prestige BMW • Pay Greeter $1.00 per email address obtained – Central Florida Chrysler/Jeep
  17. 17. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation 2. INCOMING PHONE • CRC Manager listens to and records every phone call by using “Who’s Calling” type service… Offers management critique capabilities – Fairbanks Dodge/Mazda • Using Nextel Technology; incoming sales calls go immediately to Salesperson’s cell phone… Provides immediate customer contact – Schumacher European Ltd. SAMPLE BUSINESS PRACTICES
  18. 18. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation 3. INTERNET • Clearly defined Internet Lead Response Process with verifiable metrics… 13% Closing Ratio, 120/month, #21 Ward’s Top 100 – Sterling McCall Toyota • Personal response within 30 minutes of request, not including auto-response, both Team and individuals held accountable for response time … 16% Closing Ratio, 21% Sales Volume mix – Ourisman Chevrolet SAMPLE BUSINESS PRACTICES
  19. 19. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation 4. UNSOLD FOLLOW-UP • All customers are manually entered into Gold Mine (using Gold Mine for 8 years) by CRC Coordinator… automatically schedules written and phone follow-up – Schumacher European Ltd. • Using Dealer CRM Application, follow-up calls made by Salespeople who can be locked out of the system if calls are not made… Increased follow-up consistency – Prestige BMW SAMPLE BUSINESS PRACTICES
  20. 20. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation 5. SOLD FOLLOW-UP • 14 phone contacts per customer in the 1st year… #1 Infiniti dealer for CSI in the past 3 years - Infiniti of Orlando • Follows RTS recommended 4 Phase Lease Renewal Process… 75%+ YTD Lease customer retention rate – Scott Honda SAMPLE BUSINESS PRACTICES
  21. 21. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation 6. SERVICE • State of the art color glossy dealership quick reference guide given on delivery to introduce the CRC – Schumacher European Ltd. • Service reminder postcards sent to customers for specific dealership-only service (not oil changes)… Generates greater revenue per Repair Order – Ourisman Chevrolet SAMPLE BUSINESS PRACTICES
  22. 22. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation 7. PROSPECTING • CRC Managers required to confirm scheduled appointments as part of process and salesperson’s pay plan requirements… 85% show ratio average – Sterling McCall Toyota • A rotation of Salespeople prospect daily using a purchased list of current Chrysler owners – Central Florida Chrysler/Jeep SAMPLE BUSINESS PRACTICES
  23. 23. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation Buy-in from all department managers Hiring, training and keeping the right personnel Fully integrated technology (CRM to DMS) Investment (facility, equipment, software & training) Verifiable R.O.I. Measurement PROCESS IMPLEMENTATION CHALLENGES
  24. 24. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation Dealer Meetings Best Practice Manual Technology Assessments Program Development Regional Pilots NEXT STEPS
  25. 25. R E T A I L B U S I N E S S D E V E L O P M E N T B E S T P R A C T I C E S Customer Relationship Management: Dealer Processes & Tactical Implementation Customer Relationship Management: Dealer Processes & Tactical Implementation DEALER CRM PROCESS DEVELOPMENT What does success look like? “All the lights are on, and the customers come home”

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