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!
Digital Dealer Recruit Screen Hire Workshop
How to Recruit, Screen, Hire and Train Internet Sales Professionals for the Best and Greatest Likelihood of Success and Retention How important is it to hire and train the right people while building a sales team that can convert opportunities created by marketing into actual sales results? Paglia - Session #215 - Rm: Montego ABC Organizational development is more important than ever before…with many dealers losing staff while cutting costs during the depths of the recession, those that are growing their business need effective strategies, tools and tactics for attracting, screening and hiring the best Internet sales professionals with the greatest chance of achieving 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 most successful dealers in America have been using for years, and are being used today as a means of increasing success in the hiring process. Ralph Paglia will share the tools and processes he has used to build some of the most successful Internet sales departments in America while teaching attendees what the essential "must haves" are, and how to get them when seeking to grow your sales departments into high performance digital marketing to sales conversion engines.
Growing Your Internet Staff from 10 to 300 Cars per Month
Courtesy Chevrolet in Phoenix, AZ became the USA’s leading Internet retailer of new and certified used Chevrolet vehicles… Human Resource Development was the key (secret sauce) to success.
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.
No dealership has unlimited process execution capabilities…
Dealer Lead Management Process Map Growing Your Internet Sales Team Requires that you Define what Your Internet Process Should Look Like…
<ul><li>New Chevrolet Internet Sales </li></ul><ul><li>Used Car Internet Sales </li></ul><ul><li>Bell Road Internet Sales </li></ul><ul><li>Commercial Internet Sales </li></ul><ul><li>New Chevrolet BDC </li></ul><ul><li>Used Car BDC </li></ul><ul><li>Wholesale Parts BDC </li></ul><ul><li>eFinance Sales Team </li></ul>Growing Your Internet Sales Team works best when it occurs “Organically” and is Specialized Courtesy Chevrolet is a single point Chevy dealer with (at one time) 3 fully staffed BDC Team’s, an eFinance Sales Team and 4 Internet Sales Teams. These 8 teams of automotive sales professionals are identified as follows: Organic Growth Let’s Take a Look at How It Happened…
Courtesy Chevrolet CRM/eBusinessTeams as of August, 2005 Ralph Paglia Begins at Courtesy as eBusiness Director BDC Manager New & Used Vehicle Sales Dept. Internet Sales Manager New & Used Vehicle Sales Dept. CSR 1 CSR 2 CSR 3 CSR 4 CSR 5 CSR 6 CSR 7 CSR 8 ISS 1 ISS 2 ISS 3 ISS 4 ISS 5 ISS 6 ISS 7 ISS 8 Phase 1 Sales Results: Internet sales averaged 88 units per month (new & used) BDC generated sales averaged 92 units per month (new & used) Mike Gordon IT Director
Courtesy Chevrolet CRM/eBusiness Teams as of December, 2005 Ralph Paglia CRM/eBusiness Director Joel Matteson BDC Manager New Vehicle Sales George Salman Internet Sales Manager New Vehicle Sales Francisco Abalos BDC Manager Used Vehicle Sales Bryan Long Internet Sales Manager Used Vehicle Sales Kelly Slaughter & Lisa Sarata CRM Administrators CSR 1 CSR 2 CSR 3 CSR 4 CSR 5 CSR 6 CSR 7 CSR 8 ISS 1 ISS 2 ISS 3 ISS 4 ISS 5 ISS 6 ISS 7 ISS 8 ISS 9 ISS 10 ISS 11 ISS 12 CSR 9 CSR 10 CSR 11 CSR 12 Mike Gordon IT Director Split & Grow Split & Grow <ul><li>Phase 2 Team Expansion: Internet split into new and used managed teams BDC split into new and used managed teams CRM administrative position added (showroom) </li></ul>New Position New Position New Position 80 sales 70 sales 40 sales 40 sales
Courtesy Chevrolet CRM/eBusiness Teams as of July, 2006 Ralph Paglia CRM/eBusiness Director Joel Matteson BDC Manager New Vehicle Sales George Salman Internet Sales Manager New Vehicle Sales Francisco Abalos BDC Manager Used Vehicle Sales Bryan Long Internet Sales Manager Used Vehicle Sales Kelly Slaughter & Cecy Girod CRM Administrators Patrick Miller Internet Sales Manager Courtesy On Bell CSR 1 CSR 2 CSR 3 CSR 4 CSR 5 CSR 6 CSR 7 CSR 8 CSR 9 CSR 10 ISS 1 ISS 2 ISS 3 ISS 4 ISS 5 ISS 6 ISS 7 ISS 8 ISS 9 ISS 10 ISS 11 ISS 12 ISS 13 ISS 14 ISS 15 ISS 16 CSR 11 CSR 12 CSR 13 CSR 14 CSR 15 CSR 16 Designated Sales Consultants Certified to Handle Internet Lead Appointments Mike Gordon IT Director Ron Daly & Scott Daly Special eFinance Team Lisa Esquivez eFinance BDC Omara Spriggs ef inance Sales 100 sales 90 sales 60 sales 50 sales 25 sales 35 sales New Team New Position <ul><li>Phase 3 Team Expansion: Special eFinance team Courtesy-on-Bell ISM </li></ul>Courtney Daly eFinance Admin.
Courtesy Chevrolet CRM/eBusiness New BDC with 27 Work Stations
Document Roles & Responsibilities for All Internet Sales Positions
* July 2006 Interactive Marketing Budget Document Pay Plan & Bonus Structure that reflects taller Internet sales funnel
Lead Volume puts pressure on response times as a factor of staffing levels!
Organizational Structure Determines Process Capabilities and Monitoring Top 4 Ways to Close More Sales to Leads Received Dealer Response Attributes Experienced by Customers within 24 hours of Submitting an Inquiry Purchase Respondents* who DID NOT experience the attribute % of Purchase* among the Leads who DID Experience the attribute Statistical Correlation Factor of Response attribute with Vehicle Purchase #1 Make Direct Phone Contact with Customer (after sending Email w/availability & prices) 17% 27% 11 #2 Send Price Quotes by Email to Customer 20% 27% 9 #3 Contact Customer more than once by Email 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
Customer goes online and 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 Staffing Determines Process Execution Capabilities and Monitoring
Lead Process Maps should be indexed to email templates, phone scripts and word tracks so that dealership employees have a “paint by numbers” guide to 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 should contain brief explanations 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 easy for dealership employees to recognize the right template or document when they see it in their CRM tool.
When Lead Process Maps are indexed to correspondingly numbered email templates, phone scripts and word tracks, the dealership is far more likely to execute the repetitious tasks that create customer experiences which correlate with higher sales closing ratios. The best process maps break down email and phone contact processes into separate flows so that they can be executed by different resources when scaling up lead volumes and organization structures.
Although many car guys will say they believe in the concept of following up until prospects either buy or die… Large scale lead generation through highly effective marketing practices requires 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 assigning them to alternate resources such as a BDC will allow ISS’s to stay focused on the 50% of the leads that buy, and do so within the first 10 days Have a defined process for “closing out” unsold leads
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 contact with the customer! Outbound phone calls, ongoing phone follow-up and responding to emails requires adequate staffing and skill levels
Telephone Process <ul><li>85% of Web visitors who contact the dealership before coming into the showroom, use the phone </li></ul><ul><li>Direct Phone contact (after responding to an Internet lead by email), has the greatest impact on increasing sales closing ratios </li></ul><ul><li>Phone Follow-Up Sales Strategy: </li></ul><ul><li>Focus on having a set of objectives in front of us, each time we make an email follow-up call </li></ul><ul><li>Word Track Forms (scripts) are used for training and collecting customer information during each call that is made immediately after sending personalized email response </li></ul>
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<ul><li>Recruiting 2.0 </li></ul><ul><ul><li>Place job opening on 100’s of job boards including Monster, Career Builder, Indeed, Simply Hired, Zip Recruiter, Craigslist, Facebook, Twitter, Myspace, LinkedIn, Google+ and MORE. Nobody used more resources than AutoMax! </li></ul></ul><ul><ul><li>Schedule & conduct ALL interviews & screen applicants using The Car Sales Simulator. (We have a team of people that interact with and schedule interviews with thousands of potential hires each week) </li></ul></ul><ul><ul><ul><li>The Car Sales Simulator Uses interactive video to present potential salespeople with a set of decisions that will either lead to the sale or the GSM’s office for a “talking to.” </li></ul></ul></ul><ul><ul><li>For those that make it through the interview & screening process either we’ll conduct the training or you can. (We have multiple packages) </li></ul></ul><ul><ul><li>From porters to presidents, we will interview, screen and train internet sales managers, BDC reps, social media managers, sales people, sales managers, service advisors, general managers and more! </li></ul></ul><ul><li>Low Fee, Turn Key, With A Satisfaction Guarantee! </li></ul><ul><li>25% discount for all attendees present! </li></ul>Video From Craig AutoMaxRecruitingAndTraining.com | 800-878-5090 Actual Graduate Class