This document summarizes an eBusiness strategy workshop for Washington State Toyota dealers. The workshop introduces facilitators and assesses participants' IT savvy. It discusses using IT to sell and service cars more efficiently and profitably online and in dealerships. The goal is to increase traffic, develop an interactive site, and establish sales processes to convert online leads into appointments and sales.
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Washington State Toyota DealersWashington State Toyota Dealers
Jim Kinsella
&
Ralph Paglia
Introducing Your Facilitators:Introducing Your Facilitators:
TAS CatalystsTAS Catalysts
Reynolds Transformation SolutionsReynolds Transformation Solutions
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Washington State Toyota DealersWashington State Toyota Dealers
Today’s seminar is for you… Please writeToday’s seminar is for you… Please write
your Information Technology Savvyyour Information Technology Savvy
“Self Assessment”“Self Assessment” ratingrating (1-5)(1-5) on a note padon a note pad
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Washington State Toyota DealersWashington State Toyota Dealers
How to use Information TechnologyHow to use Information Technology
to sell & service cars moreto sell & service cars more
efficiently & profitablyefficiently & profitably
•On the InternetOn the Internet
•On the Showroom FloorOn the Showroom Floor
•In the Service DriveIn the Service Drive
•Over the Telephone linesOver the Telephone lines
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Washington State Toyota DealersWashington State Toyota Dealers
GoalGoal
By the end of this course you will be able to:By the end of this course you will be able to:
•• Increase theIncrease the TRAFFICTRAFFIC to your siteto your site
•• Develop and maintain anDevelop and maintain an INTERACTIVE SITEINTERACTIVE SITE thatthat
helps turn traffic into showroom visits, telephonehelps turn traffic into showroom visits, telephone
calls and requests for informationcalls and requests for information
•• Establish aEstablish a PROCESSPROCESS for turning requests forfor turning requests for
information into relationships that generateinformation into relationships that generate
appointments which result in salesappointments which result in sales
•• Close moreClose more SALESSALES with all customers regardless ofwith all customers regardless of
how they enter the dealership by building betterhow they enter the dealership by building better
relationships that improve gross profitsrelationships that improve gross profits
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Washington State Toyota DealersWashington State Toyota Dealers
Turn offTurn off
Cell PhonesCell Phones
Or…Or…
Switch toSwitch to “Silent”“Silent” modemode
For your comfort…For your comfort…
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Washington State Toyota DealersWashington State Toyota Dealers
What are we here to accomplish today?What are we here to accomplish today?
•Business FactsBusiness Facts
•Metrics – What we knowMetrics – What we know
•What to ExpectWhat to Expect
•Develop & define our TAS mission objectivesDevelop & define our TAS mission objectives
•Evolution of Internet usageEvolution of Internet usage
•Creation of detailed Strategic Action Plan thatCreation of detailed Strategic Action Plan that
identifies what will be done, by whom, when dueidentifies what will be done, by whom, when due
and who is responsible to monitor progress…and who is responsible to monitor progress…
•Set the stage for effective, results orientedSet the stage for effective, results oriented
in-dealership consulting & training deliveryin-dealership consulting & training delivery
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Before they buy,Before they buy,
while they buy,while they buy,
and after they buy….and after they buy….
We will look at how Information TechnologyWe will look at how Information Technology
can be used to efficiently accomplish this…can be used to efficiently accomplish this…
so we canso we can sell more in less timesell more in less time, make more, make more
money and achieve higher CSI scores!money and achieve higher CSI scores!
Improve our ability to establish andImprove our ability to establish and
maintain relationships with customers…maintain relationships with customers…
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Washington State Toyota DealersWashington State Toyota Dealers
Let’s Start by taking a look at whatLet’s Start by taking a look at what
was predicted for the future of the carwas predicted for the future of the car
business just a short time ago . . .business just a short time ago . . .
The next slide is what we saw in late 1998!The next slide is what we saw in late 1998!
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Washington State Toyota DealersWashington State Toyota Dealers
Internet & Automotive TrendsInternet & Automotive Trends
OurOur businessbusiness isis
changingchanging at theat the
speed of light!speed of light!
Are you ready?Are you ready?
Source: Forbes 1998Source: Forbes 1998
1997
(Actual)
1998
(Est.)
1999
(Est.)
2001
(Est.)
Internet Sales Volume
New Vehicle Sales Volume
100-
80-
60-
40-
20-
0-
2%
6%
10%
20%
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Washington State Toyota DealersWashington State Toyota Dealers
The reality of what has happened:
How customers are using the Internet
in their Buying Cycle…
-WhatWhat “The Experts”“The Experts” PredictedPredicted
50%
would
buy online
-What Has Actually HappenedWhat Has Actually Happened
10%
20%
70%
are now going
for information
Does that mean that the 90% are now price shoppers?Does that mean that the 90% are now price shoppers?
Or… Do they have higher Service and InformationOr… Do they have higher Service and Information
expectations from our Sales Consultants?expectations from our Sales Consultants?
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Customer Online
“Click-Through” Goal
Information Services Buying Services
Dealership Web SiteManufacturer Web Site
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Information Search Sequence
• 25% of buyers visit manufacturers’ web sites
first; over 60% visit either first or second; 25%
never visit
• 40% of buyers visit dealers’ web sites second or
third; 25% never visit
Implications: manufacturer and dealer web
sites are critical in communication process
since these are the first pieces of information
shoppers are exposed to. Large opportunity to
attract shoppers to manufacturer and dealer
web sites
Rice University Toyota Buyer Study
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Manufacturer Web sites
• Toyota buyers found manufacturer web
sites significantly more valuable than
buyers of other cars
• Buyers report having spent
approximately 2.4 hours on
manufacturer web sites
– Toyota owners spent average of 4.9 versus
1.8 for non-Toyota owners
Rice University Toyota Buyer Study
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Washington State Toyota DealersWashington State Toyota DealersValue of Alternative Information Sources
Toyota Buyers vs. Others
Toyota BuyersNon-Toyota Buyers
ValueofInformation(1-7scale)
6
5
4
3
2
1
Value of info source
dealer visit
brochure
Manuf. Web site
dealer Web site
auto-buying service
3rd party info
w ord-of-mouth
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Washington State Toyota DealersWashington State Toyota Dealers
Automotive Internet User’s Satisfaction
Calendar Year 2000 Sales Satisfaction Survey
NATIONAL SURVEY OF OVER 150,000 NEW VEHICLE BUYERS
Overall Satisfaction (% Completely Satisfied)
Overall ownership experience……………………………….. 56 64 51
Overall vehicle quality…………………………………………. 53 62 49
Vehicle equipped as wanted ……………..…………………... 58 64 55
Purchase experience…………………………………………… 58 67 54
Dealership’s ability to provide good value for the money 55 63 52
Comfort and friendliness of facility …………………………. 63 73 59
Use
Internet
Do not Use
Internet
Use Ind.
Buying
Service
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Washington State Toyota DealersWashington State Toyota Dealers
In the Brick and Mortar world, what separates aIn the Brick and Mortar world, what separates a
good facility from a poor facility?good facility from a poor facility?
• LocationLocation
• CleanlinessCleanliness
• SignageSignage
• MerchandisingMerchandising
• ParkingParking
• SelectionSelection
• Appropriate staffingAppropriate staffing
What is the difference in the results?
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Who is responsible for ensuring that our facility
is properly maintained in all of these areas:
• Location
• Cleanliness
• Signage
• Merchandising
• Parking
• Selection
• Appropriate staffing
Is our staff that is responsible for the above aware
of what their roles are and who they answer to?
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What would happen if . . .
• Location: We didn’t have enough visibility to drive
traffic onto the lot?
• Cleanliness: The building wasn’t painted, the windows
were dirty and the grass was never mowed?
• Signage: People saw us as just another big used car
store from the road?
• Merchandising: We never changed the look of the lot
or the specials on the windows, would we become
part of the horizon or would we be a place that people
noticed?
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What would happen if . . .
• Parking: There wasn’t enough room to accommodate
our customers, making it a hassle to stop and inquire?
• Selection: People couldn’t see our New or Used car
inventory?
• Appropriate staffing: We didn’t have a finely tuned
sales team?
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Given the fact that 70% of your customers are
researching products, price and facilities before
they come to your dealership, are you willing to
risk our Online results by:
• Location: Not making people aware of where we’re located
• Cleanliness: Not keeping all of our photos/info up to date
• Signage: Not directing people to where they can contact us
• Merchandising: Not making people aware of our specials
or updating our themes
• Parking: Not giving them a place to hang out and find
relevant information
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Given the fact that 70% of your customers are
researching products, price and facilities before
they come to a dealership, are we willing to risk our
Online results by:
• Selection: Not having a complete description of our new
and pre-owned inventory
• Appropriate staffing: not keeping our Online sales team
aware of today’s best practices of response time and content
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Customers use the Internet, and a dealer’s
presence and processes related to it to “Qualify”
the dealership, the specific vehicle, facility, etc.
• Selection: “Does this dealership have the Black
LS that we’re thinking about?” --- “I don’t know,
honey… When I searched their inventory it came
up with a NO VEHICLE FOUND message.”
• Dealer Response: “What did the dealer send you after you
did that “Quick Quote” thing on their web site?” --- “Well Honey,
they didn’t send me back anything, I guess they don’t want to
sell us a car… Let’s call that other Lincoln dealership we saw.”
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If we’re not willing to risk those results, we need
to ask a few questions?
• Location: Who will make sure you’re on the online road map?
• Cleanliness: Who will update the photos and information?
• Signage: Who is going to direct the navigation of the site?
• Merchandising: Who will change the look and feel of your
site and make people of aware of your specials?
• Parking: Who will determine what dealership specific
information such as hours, awards and unique dealership
characteristics will make someone spend more time on your
site than on the competition’s?
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If we’re not willing to risk those results, we need
to ask a few questions?
• Selection: Who will make sure that all of the inventory is
online and that the optional equipment information is up
to date?
• Appropriate staffing: Who will respond to the online
customers and what are the store’s benchmarks for
response time, content and follow-up?
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Once we’ve identified who will do these things, we needOnce we’ve identified who will do these things, we need
to ask another question:to ask another question:
““Does the person dedicated to the assigned tasksDoes the person dedicated to the assigned tasks
possess the skills needed for optimum effectiveness?”possess the skills needed for optimum effectiveness?”
Ultimately, the disciplines
employed in the Online world will
result in additional payoff with
increased/sustained profitability in
the Brick and Mortar world as well.
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1. Request more
information
electronically
2. Pick up the
telephone and call
the dealership
3. Get into their car
and visit the
dealership!
When people like what they see on your site,
they’ll do one of three things:
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Time Spent = Leads Received
INTERACTIVE WEB SITE
LeadRatio
0 2 4 6 8 10 12 14 16 18 20
Time ( minutes )
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In your opinion . . .
Have we changed our sales process
to make effective use of the number
one research tool used by today’s
customers?
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In your opinion . . .
Does the fact that customers have all this information
sometimes put our sales people in a reactive mode
rather than a proactive mode?
““I went on the Internet andI went on the Internet and
found a price that is less thanfound a price that is less than
you quoted . . .”you quoted . . .”
“I went on the Internet and“I went on the Internet and
found that my trade-in is worthfound that my trade-in is worth
more than you are offering me.”more than you are offering me.”
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In your opinion . . .
Are dealership Gross Profits effected by the depth of
information that today’s shoppers get on the Internet?
Relevant Research Result: “The online shopper pays
an average of $176 more than the brick and mortar
buyer” - - - J.D. Power / Automotive News 2001
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In your opinion . . .
Are dealership new and used
car sales volumes
affected by the information that
today’s shoppers
get on the Internet?
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Relevant Research Result
65% of 2001 Ford Division buyers and prospective
buyers are using the Internet as an Information
Source prior to the purchase of a new vehicle.
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NumberofLeads
Time
URL
Search Engine
Alliances
TRAFFIC
Lead Sources (To dealership site)
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Market
Outside
Market
Customer
Base
TODAY TOMMOROW
Market
Outside
Market
Customer
Base
FUTURE
Market
Customer
Base
Outside
Market
Target Customers ( Where dealerships market )
TRAFFIC
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Lead CostCost
1997
Referral Services
1998 2000 2001
Dealership Web Site
Manufactures Web Site
TRAFFIC
1999
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Customer Loyalty ( to Dealer )
TRAFFIC
Loyalty
Dealership Web Site
Manufactures Web Site
Referral Services
1997 1998 2000 20011999
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Buying Cycle
TRAFFIC
3 Months 3 Weeks 3 Days
MFR.
MFR.
MFR. Referral
Services
Referral
Services
Referral
Services
Dealership
Site
Dealership
Site
Dealership
Site
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Closing Ratio
TRAFFICClosing%
Dealership Web Site
Manufactures Web Site
Referral Services
Time
0%
5%
10%
15%
1997 1998 2000 20011999
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Quantity
Dealership Web Site
( free leads )
Manufactures Web Site
( free leads )
Referral Services
( fee based leads )
Lead Volume ( per dealership )
TRAFFIC
1997 1998 2000 20011999
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Lead Quality
TRAFFIC
Quantity
Dealership Web Site
Referral Services
( fee based leads )
1997 1998 2000 20011999
Manufactures Web Site
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In your opinion . . .
How can we improve our sales processes to better
serve today’s informed customer and protect and
improve our closing ratio and gross profit?
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Washington State Toyota DealersWashington State Toyota DealersPROCESS
What is wrong with this picture?
Buying Cycle Dealership Follow up %
3 Days
(35%)
3 Months
(25%)
3 Weeks
(40%)
3 Days
(85%)
3 Months
(5%)
3 Weeks
(10%)
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Customers who build a vehicle in stock
PROCESS
40%
In stock
10 Order
5%
Does not exist
45%
Locate
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Customers willing to consider alternative vehicles
PROCESS
10%
Inflexible
90%
Consider Alternatives
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Closing % by Contact Method
PROCESS
Close%
Auto
e-mail
Personal
E-mail
Face to FacePhone
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In your opinion . . .
Should all of our Sales Professionals know
what customers are being told to expect by the
dealership’s and the manufacturer’s web sites?
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In your opinion . . .
How are the CSI scores from customers who get
information from the Internet prior to making a
purchase, compared to those from buyers who
don’t use the Internet?
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Relevant Research
Recent Customer Viewpoint Scores show that
Automotive Internet Users are 8-10% less Completely
Satisfied than customers that do not use the Internet
for research prior to purchase.
75
80
85
90
95
100
Sales
Experience
Delivery Cleanliness Sales
Person
AIU's
Non-AIU
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In your opinion . . .
What is the likelihood of customers
(who are less than completely satisfied)
buying additional vehicles from a dealer?
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In your opinion . . .
Given the fact that over 65% of our current customers
are using the Internet for research, and that this trend
seems to be increasing, should we be concerned
about the impact on our Customer Viewpoint Scores?
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In your opinion . . .
Do we need a plan to upgrade our Sales Consultant’s
computer and Internet skills as well as regular
updates on the information sources used by
customers to get information, in order for them
to better serve our customers?
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In your opinion . . .
Would it benefit a dealership if Cyber Car began aWould it benefit a dealership if Cyber Car began a
program of working with the dealership’s staff to:program of working with the dealership’s staff to:
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Improve showroom sales results:
Train sales professionals on how to use processes
on the showroom floor that utilize the credibility of
Internet based information sources to build better
relationships and increase closing ratios with ALL
customers.
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Facilitation PointFacilitation Point
1. What is your current sales process?
- Map out our current sales process
2. Let’s look at some examples of successful
processes that incorporate the internet and
information technology in a way that better serves
our customers
3. Make decisions on which best practices we
want to build into our own
- Map out enhancements to the process
STOPSTOPSTOPSTOP
71. 150 100
50 160
200 5%
20% 5
1000 20%
800 32
4% $1,135
32 $5,675
$1,135 $36,320
$36,320 $68,100
$435,840 $435,840
$367,740
30% 30
200 50% 80
$1,135 25% 7.5
$100 50% 40
$1,235 60% 5
$20,000 80% 32
$240,000 28
330
460
20% 92 $435,840
30% 138 $240,000
25% 23 $272,536
50% 69 $370,464
33% 8 $367,740
40% 28
$1,135 $1,686,580
$8,615
$31,326
$103,376
$375,912
$272,536
1560
200
1360
2%
4%
27
54
$1,135
$30,872
$61,744
$370,464
TARGETED - Monthly Incoming Sales Call Profit Contribution:
Incoming Sales Call Management Process
Showroom Sales Process:
Management "Desking" Process:
Incoming Sales Call Management:
Unsold Opportunity Follow-up Process:
Please note that all projected results are based on isolated
improvement in operating processes and do NOT take into
account potential compounding of results. Improvements in
operational process results in two or more of the areas
described by this sprea
RESULTS: Annual Profit Increase =
Targeted Profit Increase Summary
Current Monthly Incoming Sales Call Volume:
Average Monthly Preowned Deliveries:
Current New & Used Closing Ratio:
Total Showroom Opportunities:
Average Unsold Showroom Opportunities:
Average Monthly Total Vehicle Deliveries:
TARGETED INCREASE - Showroom Closing Ratio:
RESULTS: Increase in Monthly Deliveries =
Current Average Gross Profit PVR:
RESULTS: Increase in Monthly Sales Gross =
Showroom Sales Process
Current Appointment Scheduled Ratio:
TARGETED - Appointments Scheduled Ratio:
RESULTS: Increase in Annual Sales Gross =
Average Monthly New Vehicle Deliveries:
Average Monthly Total Vehicle Deliveries:
Current Sales to Incoming Internet Opportunities:
TARGETED - Delivery to Opportunity Ratio:
RESULTS: Sales to Incoming Internet Opportunities =
Current Average Gross Profit PVR:
TARGETED INCREASE - Gross Profit PVR:
Management "Desking" Process
RESULTS: Increase in Monthly Sales Gross =
RESULTS: Increase in Annual Sales Gross =
Current Average Gross Profit PVR:
RESULTS: Targeted Average Gross Profit PVR:
Current Appointment Scheduled Ratio:
TARGETED - Appointments Scheduled Ratio:
Current Appointment Show Ratio:
TARGETED - Appointment Show Ratio:
Current Deliveries to Appointments that Show:
Current Average Gross Profit PVR:
Current Monthly Incoming Sales Call Profit Contribution:
TARGETED - Deliveries to Appointments that Show:
Current Annual Incoming Sales Call Profit Contribution:
RESULTS: Targeted Annual Incoming Sales Call Profit Contribution:
RESULTS: Increased Annual Incoming Sales Call Profit Contribution:
Current Monthly Follow-up Sales Profit Contribution:
TARGETED - Monthly Follow-up Sales Profit Contribution:
RESULTS: Increased Annual Follow-up Sales Profit Contribution:
Current Sales Volume Generated by Follow-up Process:
TARGETED - Sales Volume Generated by Follow-up Process:
TARGETED - Total of Incoming Internet Opportunities:
Current Total of Incoming Internet Opportunities:
Current Delivery to Opportunity Ratio:
Current Average Gross Profit PVR:
Current Monthly Sales to Total Incoming Opportunities:
Current Monthly Unsold Incoming Sales Opportunities:
Unsold Follow Up Calls & Email Process
Current Total of Showroom, Phone & Internet Opportunities:
Current Overall Follow-up Closing Ratio:
TARGETED - Overall Follow-up Closing Ratio:
Internet Profit Contribution Analysis:
Current ANNUAL Incoming Internet Lead Profit Contribution:
Current Appointment Show Ratio:
RESULTS: Increase in Monthly Sales to Internet Leads =
RESULTS: Increase in ANNUAL Sales to Internet Leads =
Current Deliveries to Appointments that Show:
TARGETED - Deliveries to Appointments Shows:
Fill in the appropriate Data into the white, unshaded cells displayed below… TARGETED Data entry should be based on facillitation by Catalyst
Management Strategy Meeting Sales Analysis
Business Case Foundation for Today's Strategic Development Workshop
TARGETED - Appointment Show Ratio:
Strategy For Achieving The Above Results
Current Monthly Incoming Internet Lead Profit Contribution:
TARGETED - Monthly Incoming Internet Lead Profit Contribution:
TARGETED - ANNUAL Incoming Internet Lead Profit Contribution:
RESULTS: Increased Annual Internet Lead Profit Contribution:
Internet Profit Contribution Analysis
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Follow Up
What is your belief . . .
Is it the Dealer’s or Manufacturer’s responsibility
to ensure that successful customer follow up is
executed?
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What is your belief . . .
Is it more effective for the Dealer or the
Manufacturer to deliver customer follow up?
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Relevant Research Result
75% of new vehicle buyers surveyed would prefer
communication directly from the dealer where
they purchased their vehicle rather than from
the manufacturer.
Communication from the manufacturer
is a welcomed addition to dealer-based follow up
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What is your belief . . .
How frequently should Dealers contact their
customers who have purchased a vehicle?”
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In your opinion . . .
How frequently should we contact prospective
customers who have visited our showroom, called
us on the phone or have been to our web site?
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What is your belief . . .
How likely are walk-in, phone or Internet customers
to purchase a vehicle from our dealership without
hearing from us after their initial contact?
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What is your belief . . .
How likely are customers, who have purchased
a vehicle from us, to purchase another vehicle
from our dealership without being contacted
after the sale?
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Relevant Research Result
33% of customers surveyed have never been
contacted by the dealership where they
purchased their vehicle.
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Relevant Research Result
64% of customers who contact a dealer in person, by
telephone or email have never received any follow up
after their initial contact with that dealer.
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Source: J.D. Power and
Associates 2001 New
Autoshopper.com Study
Non-Internet Users: 30%Non-Internet Users: 30%
Submit OnlineSubmit Online
Purchase Request:Purchase Request: 16%16%
Submit OnlineSubmit Online
Purchase Request:Purchase Request: 16%16%
Buy Online: 4.7%Buy Online: 4.7%
Automotive Internet
Users: 70%
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Considering that the majority of people
(who buy vehicles today) use the Internet
to gather information prior to making a
purchase decision . . .
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In your opinion . . .
Would it be an effective marketing strategy to get
customers comfortable communicating via email and
using our dealership web sites for needs as simple as:
Service Appointments?
Parts and Accessories?
Rental Cars?
Their Owner’s Manual?
Recommended Maintenance?
Getting driving directions?
Checking traffic reports?
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In your opinion . . .
As customers become
more comfortable with
eBusiness through their
vehicle ownership cycle,
would they become more
likely to use the dealer’s
web site and the forms in
it as part of their next car
purchase research?
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In your opinion . . .
If a dealer’s current customer base became
comfortable communicating with the dealership
through email and the dealer’s web site . . .
What would this do to the
expense structure and the
costs of advertising,
marketing and promoting
the dealership’s products
and services?
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STOPSTOPSTOPSTOP
Facilitation Point
Let’s evaluate our current follow-up process
and take a look at how we can use the
technology provided by the
DealerConnection suite of products
and services to improve our results…
What our some of the tools we can use to improve follow-up?
DealerConnection - eMail service
SalesPoint - Opportunity management
OwnerConnection - Personal web site
DealerConnection - Optional site sections
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Commitment & Buying
PEOPLE
Uninformed
Optimism
Uninformed
Pessimism
Informed
Pessimism
Informed
Optimism
I III
II IV
Active resistancePassive resistance
Commitment Involvement
Understanding
• Who are the key managers and Personnel in the dealership
• Plot yourself
• Plot the team on the chart (Quadrant I, II, III, IV)
• What needs to happen to bring everyone to quadrant III?
• Who will do it, when will it get done, and how can you make sure it is done?
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In your opinion . . .
How important is it that:
Every customer, whether
they are walk-in, phone or
an Internet lead is followed
up using their preferred
method of contact?
90. 150 100
50 160
200 5%
20% 5
1000 20%
800 32
4% $1,135
32 $5,675
$1,135 $36,320
$36,320 $68,100
$435,840 $435,840
$367,740
30% 30
200 50% 80
$1,135 25% 7.5
$100 50% 40
$1,235 60% 5
$20,000 80% 32
$240,000 28
330
460
20% 92 $435,840
30% 138 $240,000
25% 23 $272,536
50% 69 $370,464
33% 8 $367,740
40% 28
$1,135 $1,686,580
$8,615
$31,326
$103,376
$375,912
$272,536
1560
200
1360
2%
4%
27
54
$1,135
$30,872
$61,744
$370,464
TARGETED - Monthly Incoming Sales Call Profit Contribution:
Incoming Sales Call Management Process
Showroom Sales Process:
Management "Desking" Process:
Incoming Sales Call Management:
Unsold Opportunity Follow-up Process:
Please note that all projected results are based on isolated
improvement in operating processes and do NOT take into
account potential compounding of results. Improvements in
operational process results in two or more of the areas
described by this sprea
RESULTS: Annual Profit Increase =
Targeted Profit Increase Summary
Current Monthly Incoming Sales Call Volume:
Average Monthly Preowned Deliveries:
Current New & Used Closing Ratio:
Total Showroom Opportunities:
Average Unsold Showroom Opportunities:
Average Monthly Total Vehicle Deliveries:
TARGETED INCREASE - Showroom Closing Ratio:
RESULTS: Increase in Monthly Deliveries =
Current Average Gross Profit PVR:
RESULTS: Increase in Monthly Sales Gross =
Showroom Sales Process
Current Appointment Scheduled Ratio:
TARGETED - Appointments Scheduled Ratio:
RESULTS: Increase in Annual Sales Gross =
Average Monthly New Vehicle Deliveries:
Average Monthly Total Vehicle Deliveries:
Current Sales to Incoming Internet Opportunities:
TARGETED - Delivery to Opportunity Ratio:
RESULTS: Sales to Incoming Internet Opportunities =
Current Average Gross Profit PVR:
TARGETED INCREASE - Gross Profit PVR:
Management "Desking" Process
RESULTS: Increase in Monthly Sales Gross =
RESULTS: Increase in Annual Sales Gross =
Current Average Gross Profit PVR:
RESULTS: Targeted Average Gross Profit PVR:
Current Appointment Scheduled Ratio:
TARGETED - Appointments Scheduled Ratio:
Current Appointment Show Ratio:
TARGETED - Appointment Show Ratio:
Current Deliveries to Appointments that Show:
Current Average Gross Profit PVR:
Current Monthly Incoming Sales Call Profit Contribution:
TARGETED - Deliveries to Appointments that Show:
Current Annual Incoming Sales Call Profit Contribution:
RESULTS: Targeted Annual Incoming Sales Call Profit Contribution:
RESULTS: Increased Annual Incoming Sales Call Profit Contribution:
Current Monthly Follow-up Sales Profit Contribution:
TARGETED - Monthly Follow-up Sales Profit Contribution:
RESULTS: Increased Annual Follow-up Sales Profit Contribution:
Current Sales Volume Generated by Follow-up Process:
TARGETED - Sales Volume Generated by Follow-up Process:
TARGETED - Total of Incoming Internet Opportunities:
Current Total of Incoming Internet Opportunities:
Current Delivery to Opportunity Ratio:
Current Average Gross Profit PVR:
Current Monthly Sales to Total Incoming Opportunities:
Current Monthly Unsold Incoming Sales Opportunities:
Unsold Follow Up Calls & Email Process
Current Total of Showroom, Phone & Internet Opportunities:
Current Overall Follow-up Closing Ratio:
TARGETED - Overall Follow-up Closing Ratio:
Internet Profit Contribution Analysis:
Current ANNUAL Incoming Internet Lead Profit Contribution:
Current Appointment Show Ratio:
RESULTS: Increase in Monthly Sales to Internet Leads =
RESULTS: Increase in ANNUAL Sales to Internet Leads =
Current Deliveries to Appointments that Show:
TARGETED - Deliveries to Appointments Shows:
Fill in the appropriate Data into the white, unshaded cells displayed below… TARGETED Data entry should be based on facillitation by Catalyst
Management Strategy Meeting Sales Analysis
Business Case Foundation for Today's Strategic Development Workshop
TARGETED - Appointment Show Ratio:
Strategy For Achieving The Above Results
Current Monthly Incoming Internet Lead Profit Contribution:
TARGETED - Monthly Incoming Internet Lead Profit Contribution:
TARGETED - ANNUAL Incoming Internet Lead Profit Contribution:
RESULTS: Increased Annual Internet Lead Profit Contribution:
Internet Profit Contribution Analysis
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Relevant Research Result
49% of dealership profits, (industry wide) are
generated from dealership Fixed Operations.
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In your opinion . . .
Would the development of eBusiness capabilities and
CRM processes within Dealership Fixed Operations
make sense as part of a dealer’s business plan?
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1. Electronic Appointment System
• Route email messages to dedicated appointment
person
• Incorporates Welcome Board
concept into the service drive
• Limit online appointments to
three 15 minute appointments
per hour for each Service Advisor
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2. Interactive Appointment Reception
• Customer’s name and scheduled
time on Welcome Board
• Send eMail to customer with a
predetermined price and agreed
upon completion time
• Service Advisor performs walk
around vehicle inspection with
the eCustomer at time of arrival
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3. Quality Care Maintenance
• Use OwnerConnection in the dealer’s DealerConnection
web site to schedule each customer’s first maintenance
appointment at time of new/preowned vehicle delivery
• Suggest Ford recommended service bundles
• Implement a “Permission Based” electronic service
reminder program that uses email to notify customers
who prefer email messages over phone calls
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4. Menu Pricing and/or Committed Price
to Customers
• Send eMail to customers offering a committed price for
service requested
• Parts availability verified for requested repair and
customer sent an email advising that parts needed
are in stock
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5. Shop Scheduling
• Implement scheduling system that accounts for
Technician Time and permits accurate start and
finish times
• Offer to send emails to eCustomers
affected by time over-runs with updated
completion time
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6. Customer Convenience
• Ensure Customer mobility
- Loaner Vehicles
- Shuttle Services
- PC with Internet Access for use by customers
• Assign accountability for the maintenance of a
comfortable waiting area
• Offer Saturday and Extended Hours by listing them on
your DealerConnection web site
• 24 Hour a Day, 7 Day a Week online service
scheduling within your
DealerConnection web site
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7. Parts Pre-Picking
• Parts availability checked upon receipt of emailed service
request
• If parts are unavailable, eCustomer informed by eMail
• If parts are available, confirmation is sent by eMail to
the eCustomer
• Upon eCustomer arrival a picking list is generated
• Parts are pulled and placed in a bin available for
technician to pick up
• Technician gets parts
with no delay at parts counter
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8. Repair Order Processing
• Review of eMails received & RO paperwork flow
• Identification of documentation issues
• Use diagnostic tools and technical information
• Hand over vehicle for test drive (if required)
• If not fixed, initiate corrective action
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9. Repair Order Completion and Invoicing
• Send eMail to customer advise about completion
• Complete and prepare invoice, send summary and
customer-pay totals to customer by eMail
• Prepare all documentation for vehicle delivery prior to
the customer arriving for vehicle pickup, notify customer
by eMail that all documents have been completed
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10. Customer Information and Vehicle Return
• Welcome customer by name and ask if there are any
questions regarding the work done and charges incurred
that were not answered by eMails
• Accurate promise times sent by eMail along with any
changes or updates
• When appropriate, discuss future services and ask if
customer would like to be notified of any specials
available or service reminders by eMail
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11. Service Follow-up
• Permission Based collections of eMail addresses in the
service drive along with an “Opt-out” process
• Follow-up eMails sent within 3 working days of service
completion to customers who prefer eMails to phone calls
• After eMails are sent, customers who are not completely
satisfied are documented and entered into your concern
resolution process system
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12. Concern Resolution
• What is our process when customers choose Electronic
Communication as part of their concern resolution
request?
- Establish roles and responsibilities
• What do we do with eMails that identify customer needs
and expectations?
• How do we respond to eMails that identify actions
needed for concern resolution?
• When do we use eMails as part of a follow-up
and to analyze problems?
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In your opinion . . .
Would it benefit your team
if we began a program of
working with the Parts and
Service staff to empower
them with the specific skills
and knowledge of
processes that take
advantage of the eBusiness
tools that are currently
available to them?
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Our mission includes…
Laying the ground-work for a holistic dealership
based customer follow-up system that includes
eBusiness technology and CRM, is customer
focused, but is not intimidating to sales and service
management, or sales consultants
Loyalty
Package
• Physical
• Virtual
Follow
Up
Holidays
Service
Reminders
Service Experience
1 2
4 3
BlueOval
Service Experience
Welcome
Service
Follow Up
Updates on
Products &
Promotions
90 Day
Contacts
Initial Visit
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In your opinion . . .
Will dealership marketing, advertising and
promotional costs increase, decrease or stay
the same in the future?
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In your opinion . . .
Will the automotive retail business become less
competitive or more competitive in the future?
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In your opinion . . .
Will the importance of customer retention increase,
decrease or stay the same in the future?
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In your opinion . . .
What would be the results of implementing a long-term
loyalty process in a dealership using the DealerConnection
technology that is now available to all Ford dealers?
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In your opinion . . .
Would the marketing, advertising and promotional costs
of maintaining your dealership’s market share increase,
decrease or stay the same?
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In your opinion . . .
Could our marketing and advertising expense be
reduced by implementing a eBusiness strategy?
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Relevant Research Result
Dealerships are currently spending $350 to $600 per
sold vehicle in advertising for each sale, depending
upon region
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Our mission includes…
Laying the ground-work for a holistic dealership
based customer follow-up system that includes
eBusiness technology and CRM, is customer
focused, but is not intimidating to sales and service
management, or sales consultants
Loyalty
Package
• Physical
• Virtual
Follow
Up
Holidays
Service
Reminders
Service Experience
1 2
4 3
BlueOval
Service Experience
Welcome
Service
Follow Up
Updates on
Products &
Promotions
90 Day
Contacts
Initial Visit
118. Initial Visit
Sales Experience
Customer Information Center
Loyalty
Package
• Physical
• Virtual 24 Hr
Call
Follow
Up
Birthdays
Anniversary
Holidays
Service
Reminders
Service Experience
1 2
4 3
BlueOval
Service Experience
Welcome
Service
Follow Up
Follow
Up
Continued
Follow Up
Updates on
Products &
Promotions 90 Day
Contacts
eBusinesseBusiness
enables & enhancesenables & enhances
119. 150 100
50 160
200 5%
20% 5
1000 20%
800 32
4% $1,135
32 $5,675
$1,135 $36,320
$36,320 $68,100
$435,840 $435,840
$367,740
30% 30
200 50% 80
$1,135 25% 7.5
$100 50% 40
$1,235 60% 5
$20,000 80% 32
$240,000 28
330
460
20% 92 $435,840
30% 138 $240,000
25% 23 $272,536
50% 69 $370,464
33% 8 $367,740
40% 28
$1,135 $1,686,580
$8,615
$31,326
$103,376
$375,912
$272,536
1560
200
1360
2%
4%
27
54
$1,135
$30,872
$61,744
$370,464
TARGETED - Monthly Incoming Sales Call Profit Contribution:
Incoming Sales Call Management Process
Showroom Sales Process:
Management "Desking" Process:
Incoming Sales Call Management:
Unsold Opportunity Follow-up Process:
Please note that all projected results are based on isolated
improvement in operating processes and do NOT take into
account potential compounding of results. Improvements in
operational process results in two or more of the areas
described by this sprea
RESULTS: Annual Profit Increase =
Targeted Profit Increase Summary
Current Monthly Incoming Sales Call Volume:
Average Monthly Preowned Deliveries:
Current New & Used Closing Ratio:
Total Showroom Opportunities:
Average Unsold Showroom Opportunities:
Average Monthly Total Vehicle Deliveries:
TARGETED INCREASE - Showroom Closing Ratio:
RESULTS: Increase in Monthly Deliveries =
Current Average Gross Profit PVR:
RESULTS: Increase in Monthly Sales Gross =
Showroom Sales Process
Current Appointment Scheduled Ratio:
TARGETED - Appointments Scheduled Ratio:
RESULTS: Increase in Annual Sales Gross =
Average Monthly New Vehicle Deliveries:
Average Monthly Total Vehicle Deliveries:
Current Sales to Incoming Internet Opportunities:
TARGETED - Delivery to Opportunity Ratio:
RESULTS: Sales to Incoming Internet Opportunities =
Current Average Gross Profit PVR:
TARGETED INCREASE - Gross Profit PVR:
Management "Desking" Process
RESULTS: Increase in Monthly Sales Gross =
RESULTS: Increase in Annual Sales Gross =
Current Average Gross Profit PVR:
RESULTS: Targeted Average Gross Profit PVR:
Current Appointment Scheduled Ratio:
TARGETED - Appointments Scheduled Ratio:
Current Appointment Show Ratio:
TARGETED - Appointment Show Ratio:
Current Deliveries to Appointments that Show:
Current Average Gross Profit PVR:
Current Monthly Incoming Sales Call Profit Contribution:
TARGETED - Deliveries to Appointments that Show:
Current Annual Incoming Sales Call Profit Contribution:
RESULTS: Targeted Annual Incoming Sales Call Profit Contribution:
RESULTS: Increased Annual Incoming Sales Call Profit Contribution:
Current Monthly Follow-up Sales Profit Contribution:
TARGETED - Monthly Follow-up Sales Profit Contribution:
RESULTS: Increased Annual Follow-up Sales Profit Contribution:
Current Sales Volume Generated by Follow-up Process:
TARGETED - Sales Volume Generated by Follow-up Process:
TARGETED - Total of Incoming Internet Opportunities:
Current Total of Incoming Internet Opportunities:
Current Delivery to Opportunity Ratio:
Current Average Gross Profit PVR:
Current Monthly Sales to Total Incoming Opportunities:
Current Monthly Unsold Incoming Sales Opportunities:
Unsold Follow Up Calls & Email Process
Current Total of Showroom, Phone & Internet Opportunities:
Current Overall Follow-up Closing Ratio:
TARGETED - Overall Follow-up Closing Ratio:
Internet Profit Contribution Analysis:
Current ANNUAL Incoming Internet Lead Profit Contribution:
Current Appointment Show Ratio:
RESULTS: Increase in Monthly Sales to Internet Leads =
RESULTS: Increase in ANNUAL Sales to Internet Leads =
Current Deliveries to Appointments that Show:
TARGETED - Deliveries to Appointments Shows:
Fill in the appropriate Data into the white, unshaded cells displayed below… TARGETED Data entry should be based on facillitation by Catalyst
Management Strategy Meeting Sales Analysis
Business Case Foundation for Today's Strategic Development Workshop
TARGETED - Appointment Show Ratio:
Strategy For Achieving The Above Results
Current Monthly Incoming Internet Lead Profit Contribution:
TARGETED - Monthly Incoming Internet Lead Profit Contribution:
TARGETED - ANNUAL Incoming Internet Lead Profit Contribution:
RESULTS: Increased Annual Internet Lead Profit Contribution:
Internet Profit Contribution Analysis
Editor's Notes
4.7% of retail sales in 2000 were made online
How has this affected our business… Right Now.
Ray Kroc story – Customer expectations are always met regardless of where they are in the world, customers know what to expect when they go into a McDonalds and they get it. Customer behaviors are managed when McDonalds was able to train customers to clean up their mess after finishing their meal and depositing it in the trash, thus saving McDonalds MILLIONS of dollars in adding extra employees to clean up the trash left behind at the tables.
Tell the story about the different types of Internet users and their various degrees of use of information technology… The toe dipper, the wader and the swimmer..
After each section we will take a look
Does our stores current sales process have the Internet informed consumer in mind?
Do our salespeople feel intimidated by consumers that have been online?
Do we feel that these shoppers help or hurt our grosses?
How about our overall volume?
5. Currently, the number of Ford Division buyers and potential buyers that are using the Internet as an “information portal” prior to the purchase of a new vehicle is approaching the 65% mark.
Does our entire sales staff understand how we want to treat the Internet informed consumer?
Do all our sales people know what we are telling our customers they can expect when the consumer gets on our website?
How do you think the overall satisfaction of an Internet informed consumer compares to one that is not Internet informed?
6. The latest customer viewpoint scores show that there is an average spread of 8-10% in completely satisfied customers, with those that are not shopping the Internet being more satisfied than those who gather information on the net prior to the purchase of a vehicle. (The results are staggering, considering 65% of Ford Division’s customers are visiting the web prior to purchase)
In the long run what is the likelihood that someone purchases another vehicle from you if they are not completely satisfied?
6. The latest customer viewpoint scores show that there is an average spread of 8-10% in completely satisfied customers, with those that are not shopping the Internet being more satisfied than those who gather information on the net prior to the purchase of a vehicle. (The results are staggering, considering 65% of Ford Division’s customers are visiting the web prior to purchase)
How likely is it that our sales staff, given their personality types, will take the initiative to educate themselves on the technology and tools needed to perform this long-term follow up?
Would it benefit your store if Cyber Car were to ………….
Does our entire sales staff understand how we want to treat the Internet informed consumer?
After each section we will take a look at how improvement in the processes for that section will impact the bottom line on a yearly basis by plugging projected numbers into a ROI spreadsheet,
After each section we will take a look
Which do you believe would be more effective?
Overall 75 % of customers that have purchased would prefer communication from the dealer at which they purchased their vehicle rather than the manufacturer. Communication from the manufacturer is just a welcomed edition.
How often do you believe we should contact someone who has purchased a vehicle from us?
How about someone who has not?
What is the likelihood of selling another vehicle to that customer if we do not, considering today’s competitive market?
What is the likelihood of selling another vehicle to that customer if we do not, considering today’s competitive market?
2. 59% of Dealers express reservations about sharing customer information with the manufacturer, yet 33% customers still say that they have never been contacted by anyone at the dealership that they purchased their vehicle.
2. 59% of Dealers express reservations about sharing customer information with the manufacturer, yet 33% customers still say that they have never been contacted by anyone at the dealership that they purchased their vehicle.
Considering the number of people that use the Internet today to gather information regarding the purchase of a new vehicle, would it make sense to get them comfortable communicating to us via e-mail for something as simple as a service appointment or the purchase of parts through our parts department?
Considering the number of people that use the Internet today to gather information regarding the purchase of a new vehicle, would it make sense to get them comfortable communicating to us via e-mail for something as simple as a service appointment or the purchase of parts through our parts department?
Considering the number of people that use the Internet today to gather information regarding the purchase of a new vehicle, would it make sense to get them comfortable communicating to us via e-mail for something as simple as a service appointment or the purchase of parts through our parts department?
As their comfort level increases through the ownership cycle, can you see people be more or less likely to use the Internet for part of their next purchase from your dealership? ( i.e. Providing their finance information, setting their appointment, filling out an online appraisal form etc.)
Long term what could this do to reduce long-term expenses, as well as redirect and reduce advertising costs?
After each section we will take a look at how improvement in the processes for that section will impact the bottom line on a yearly basis by plugging projected numbers into a ROI spreadsheet,
4. On average, 49% of dealer’s profits are generated by the sale of parts and service, and yet very few of those have extended their e-business departments to the parts and service departments.
4. On average, 49% of dealer’s profits are generated by the sale of parts and service, and yet very few of those have extended their e-business departments to the parts and service departments.
Spend time in the Parts and Service departments to make sure that all processes take advantage of the Internet tools that are provided to them?
Set the ground-work for a holistic customer follow-up system that includes technology but is not intimidating to sales people and is customer focused.
Do you believe that in today’s competitive new and used car market, that advertising costs are going to increase or maintain?
Do you believe that in today’s competitive new and used car market, that advertising costs are going to increase or maintain?
Do you believe that in today’s competitive new and used car market, that advertising costs are going to increase or maintain?
If a long-term loyalty process is implemented at your store, using all the technology available, will the cost of advertising continue to increase? Or is it possible that it may at the minimum stay where it is today?
If a long-term loyalty process is implemented at your store, using all the technology available, will the cost of advertising continue to increase? Or is it possible that it may at the minimum stay where it is today?
Could this advertising dollar be spent more effectively to draw people into our stores considering where the majority of them are going to get their information these days?
3. Currently, manufacturers are spending in excess of $2000 in advertising and incentive dollars to earn a customers business. Dealers are spending anywhere from $350-600 for each sale, depending on their geographic location.
Set the ground-work for a holistic customer follow-up system that includes technology but is not intimidating to sales people and is customer focused.
Let’s take a look at the total dollars that are at stake with this initiative in terms of increased bottom line profits on our financial statement… Go to the spreadsheet and check the numbers in the white boxes for agreement by the management team… Then review the “Targeted Profit Increase Summary” to see what the accumulated total can be if we meet our targets.