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IS20G11 - The Blueprint to Building an Internet Dealership - Sean V. Bradley, CSP
The document outlines strategies for building a successful internet dealership in the automotive industry, emphasizing the need for dealers to adapt to digital communication and sales processes. It provides a thorough analysis of current challenges within dealerships, including high attrition rates and underutilization of technology, while proposing a comprehensive approach that incorporates training, accountability, and resource allocation. Key components include promoting a hybrid sales model, utilizing varied communication channels such as video and social media, and implementing effective training and CRM systems.
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IS20G11 - The Blueprint to Building an Internet Dealership - Sean V. Bradley, CSP
- 1. The Blueprint toBuilding an Internet Dealership Sean V. Bradley, CSP Founder and President Dealer Synergy seanb@dealersynergy.com Title Sponsor
- 2. About Me ● Over19 Years in the Automotive Industry ● President & Founder of Dealer Synergy ● Averaged 30+ Units per month ● Delivered 110 Units per month Online in 2002 ● 31,000 Automotive Sales Professionals, Managers, and Owners trained ● 1,200 Rooftops trained ● Best-Selling Author of “Win the Game of Googleopoly”
- 3.
- 4. Thesis Statement The Internetand Phones are the NEW Showroom!
- 5. Dealers Must CHANGE ChangeTheir Paradigm
- 6. Dealers Must CHANGE ChangeThe Way They Allocate Resources Human Resources / Staff Marketing Budget
- 7. Dealers Must CHANGE ChangeThe Way They Recruit / Hire
- 8. Dealers Must CHANGE ChangeThe Way They Train Their Team
- 9. Dealers Must CHANGE ChangeThe Way They Utilize: Products Resources Technology Vendors
- 10. Dealers Must CHANGE ChangeThe Way They Communicate With Prospects / Clients
- 11. Dealers Must CHANGE ChangeTheir Follow Up Process
- 12. Dealers Must CHANGE ChangeTheir Engagement Process
- 13. Current Situation Analysis ofALL Transactions START on search…
- 14. Current Situation Analysis ofAmericans go online before they step foot into a Dealership.
- 15. Current Situation Analysis TheAverage Internet Prospect visits up to different websites and/or Dealerships before they ever go in person.
- 16. Current Situation Analysis TheAverage “In Market” Buyer ONLY visits Dealerships.
- 17. Current Situation Analysis BottomLine… If you get them to your Dealership, unless something goes wrong at the Dealership or they are NOT qualified...they are getting SPOTTED.
- 18. The TOP 7Reasons “Why People Go Online or Call in as a Phone Up” P. R. A. C. T. I. C. E. - Price - Research - Availability - Convenience - Trade - “I Hate Car Salesman” - Credit - Everything Else
- 19. Current Communication Metricsand Reality Outbound Phone Calls connect at an 11-14% Connection Ratio.
- 20. Current Communication Metricsand Reality have an average 2-4% Read-Open Ratio.
- 21. Current Communication Metricsand Reality 96% of Text Messages get read.
- 22. Current Communication Metricsand Reality The Majority of Dealerships do NOT utilize powerful forms of communication consistently or at all: Video Email / Video Text Messaging Apple FaceTime / Skype Social Media Direct Messaging “DMs”
- 23. Current Communication Metricsand Reality Video Enhances ALL Forms of Communication: Just adding “Video” in an email subject line increases read-open rates by 19%. Video in an Email (Video Email) increases read-open rates by up to 300%. Video in Text (Video Text Messaging) gets read up to 99% of the time. 1 Minute of Video is equivalent to 1.8 Million Written Words.
- 24. Current Communication Metricsand Reality Majority of Dealerships do NOT Articulate their Value Package Proposition (Why Buy From Us? Message)
- 25. Current Dealership /Sales Consultant Profile The Average Dealership delivers per Month.
- 26. Current Dealership /Sales Consultant Profile The Average Dealerships’ Average Cost Per Sale in Advertising is per Car Sold
- 27. Current Dealership /Sales Consultant Profile The Average Dealership has: 10 Sales Consultants 2 Sales Managers A General Manager and/or a General Sales Manager An F&I Manager
- 28. Current Dealership /Sales Consultant Profile The Average Dealership Invests LESS Than $1,000 per month in Training. Less than $100 per Sales Person per Month in Training and less than $10 per Car Sold per Month. The Average Dealership has a 70%+ Attrition Ratio on the Showroom Floor.
- 29. The Difference Betweenan Internet Department and a “BDC…” Internet Sales Phone Sales Unsold Showroom Follow-Up Data Mining Equity Mining Lease Retention Service BDC Service Conversions OEM Campaigns Buy Backs Cross-Promotional Marketing CSI A BDC...
- 30. of BDCs are Brokenor Not Profitable
- 31. The BEST Wayto Build a “BDC” is with a Solid Foundation Internet Sales Phone Sales After those are in rhythm then roll out the next module and then the next, etc.
- 32. Current Challenges inthe Average Dealership There is a disconnect between the “Internet / BDC” and the “Showroom” Departments. Most Dealerships are NOT Set Up Correctly. Dealerships react to leads / opportunity rather than set up a Proactive Strategy. There is not an appropriate allocation for resources (both money or staff).
- 33. Current Challenges inthe Average Dealership Turnover is High at the Dealership.
- 34. Current Challenges inthe Average Dealership CRM is NOT Utilized Correctly or held Accountable. CRM data is compromised and not dependable.
- 35. Current Challenges inthe Average Dealership Sales Consultants are NOT Productive. They utilize ONLY 2-3 of the 8 Potential Ways to Sell an Automobile. They are not able to truly provide the right amount of follow up needed for Internet Prospects. They also do not utilize all of the different ways to communicate with prospects. This leads to missed opportunities and “Bought Elsewheres.” They usually catch the “Low Hanging Fruit.” Sales Consultants are NOT given the proper training and resources for selling in 2018 We assume they know everything. We expect them to just magically be able to do everything and do it commission based…with no money upfront! They are NOT versed in CRM. They do NOT work synergistically with the Internet Sales Department.
- 36. Current Challenges inthe Average Dealership Internet Sales Coordinators / BDC Reps There usually isn’t enough of them. They usually do not have the right schedule. They don’t have the right pay plan. They are doing too many things and spread too thin. “A Jack of all Trades and a Master of None.” There really isn’t a strategy. Very little to no training. Not really included into the same resources and information as the Showroom Sales team. Second rate citizen...they are not as important as Showroom or Showroom Sales Consultants No real time “T.O.s”
- 37. Examples of DealersBeing “Upside Down” Ford Dealership 300 Cars a Month 27 Salespeople Generating 111 units from Phone/Internet Department 189 Remaining Units from the Showroom 27 Salespeople / 189 Units = 7 Units Per Salesperson 8 Ways to Sell a Car - 2 Ways (Phone/Internet) = 6 Ways Increase 2 Units x 27 Salespeople = 54 Additional Net Units Point of Diminishing Return on Follow Up for the Showroom
- 38. Examples of DealersBeing “Upside Down” Another Ford Dealership - Much Smaller 100 units per month 9 Sales Consultants, 3 Managers and a GM 1 Internet Director, 3 Part Time BDC Reps Showroom has less than 200 Ups per month BDC Does EVERYTHING, has 260 fresh leads, 300 RFF, hundreds of ROs, hundreds of Be-Backs etc… BDC is responsible for 49 units Take away BDC, the Showroom is ONLY averaging 5.7 units a piece! They are missing 30+ on the Showroom Side and another 30-40+ on the Internet Side!
- 39. The Solution... ....is buildingan “Internet Dealership” A TRUE Hybrid Scenario
- 40. S.W.O.T. Your Dealership S.W.O.T.Your Dealership on the “4 Ps”
- 41. S.W.O.T. Your Dealership Products(Resources) Website(s), CRM, Call Monitoring, Inventory, Pricing Tools, Computers, Phones, Video, Tablets, Software, etc...
- 42. S.W.O.T. Your Dealership People HR/ Recruiting, Job Descriptions, Schedule, Pay Plan, Motivation, Training, Accountability, etc...
- 43. S.W.O.T. Your Dealership Process S.O.P.s- What to Do, When to Do It, How to Do It, and Why We Are Doing It.
- 44. S.W.O.T. Your Dealership Process Inbound/Outbound -PhoneProcess -Email Process -Text Messaging Process -Video Communication Process -Apple Facetime / Skype -Video Email -Video Text Inbound/Outbound -Chat Process -Social Media DM Process
- 45. S.W.O.T. Your Dealership Process AllOther Processes, etc… Appointment Process Appointment Confirmation Missed Appointment Process Dead Deal Process T.O. Process One on One Process Follow Up Process Engagement Process
- 46. S.W.O.T. Your Dealership Promotions(Marketing / Advertising) Conventional - ? Digital - ? Total - ? Cost? Receive? Generate? NET Profit? Average Cost Per Sale Per Car Sold in Advertising? Per Source? Per Sales Person?
- 47. S.W.O.T. Your Dealership PRIORITIZEYour “4P” Assessment Identify / Bullet Point ALL of the things that are NOT set up, not purchased, broken, missing, etc… NOW after they are ALL identified and bullet pointed, go back and out them in PRIORITY order. You must create a “checklist” but must prioritize it.
- 48. Begin With theEnd in Mind How many units per month do I want to sell from my Showroom side? How many units per month do I want to sell from my Internet (email) opportunities? How many units per month do I want to sell from my Phone Up opportunities? How many units per month do I want to sell from my BDC activities?
- 49. Reverse-Engineer the RoadMap! How many Fresh “Ups” do I need to drive the Showroom this month? How many Ups does my Showroom Sales Team need to contribute / drive to the Showroom? How many Showroom Sales Consultants do I need to have to handle these opportunities the right way?
- 50. Reverse-Engineer the RoadMap! How many Internet Purchase Requests do I need to buy or generate this month? -How many from the OEM? -How many from my website? -How many from 3rd Party Lead Source Providers, Online Classifieds, etc…? -How many from Digital Marketing? -How many reps do I need to handle these opportunities correctly? -Internet Coordinator / BDC Reps -Internet Sales Consultants / “Point Guards”?
- 51. Reverse-Engineer the RoadMap! How many Phone Ups do I need to generate this month? From the Conventional Sources? From the Digital Sources? How many reps do I need to handle the Phone Ups correctly?
- 52. Reverse-Engineer the RoadMap! How many BDC opportunities do I need to generate this month? Data Mining / Equity Mining Unsold Showroom Traffic Lease Retention Special Finance Cross Promotional Marketing Fleet How many reps do you need to manage these leads?
- 53. Map It Out Startwith Mapping out the “NEW” Showroom Sales Team, utilizing the “Money Mind Mapp” Strategy (Individual) = 30 Total Units Sold
- 54. Map It Out Startwith Mapping out the “NEW” Showroom Sales Team, utilizing the “Money Mind Mapp” Strategy (Dealership) = 300 Total Units Sold 200 200 200 640 800 300 400 100 100 160 160 10 20 20 200 200 100 160 160 10 20 20 10 20 50 80 80 10 10 10
- 55. Map It Out Next- map out the Internet Sales and Phone Sales Strategy utilizing the “Money Mind Mapp.”
- 56. There are 7 MAINTHINGS you need for your plan to work...
- 57. The 7 MainThings 1. Vision… Where are you going? What is the mission? And FAILURE IS NOT AN OPTION!
- 58. The 7 MainThings 2. Opportunities… You NEED LEADS! You can NOT sell something to NO ONE.
- 59. The 7 MainThings 3. People… You need to have the RIGHT people and the RIGHT AMOUNT of people working these opportunities!
- 60. The 7 MainThings 4. A Plan…Process, Structure. A Standard Operating Procedure for EVERYTHING.
- 61. The 7 MainThings 5. Training... Your people from the TOP down need to be fully trained.
- 62. The 7 MainThings 6. Accountability / Tracking... EVERYTHING needs to be tracked. NOT just the things your dealership has always tracked. People 4 Ps Technology Vendors Activities Managers EVERYTHING!
- 63. The 7 MainThings 7. Evolve, Adapt and Improvise...FITFO
- 64. Implementation HR / Recruiting RecruitDifferent! www.AutomotiveSalesCareers.com HR Recruitment Videos
- 65.
- 66.
- 67.
- 68. Implementation HR / Recruiting Use: Createa “Pro Pay Plan” Strategy -Employees Network -CONVENTIONAL Media! -Colleges/Universities/Tech Schools -Internships -ALL Internet Means...like a Digital Marketing Strategy -Your Website -ALL Social Media -Email Blasts -PAID Facebook Ad Manager -PAID OTHER Social Media
- 69. Implementation CRM (Set Up& Training) Types: Walk-In Phone Email Text Social Media Chat Other
- 70. Implementation CRM (Set Up& Training) Source: Be Ultra Specific Limit Options Status: Active Inactive Sold Future N/A
- 71. Implementation CRM (Set Up& Training) Action Plans Internet After Hours Phone Sold Showroom Dead
- 72. Implementation CRM (Set Up& Training) Templates / Scripts Video Email Template Library
- 73. Rate sessions &download PPT decks on the Digital Dealer mobile app. Implementation CRM (Set Up & Training)
- 74. Implementation CRM (Set Up &Training)
- 75. Implementation CRM (Set Up& Training) Text Template Library HTML Template Library
- 76. Implementation CRM (Set Up& Training) Training CRM Company CRM Content CRM Strategy CRM Customization
- 77. Implementation Communications Phone & Voicemail TextMessaging Email Video
- 78.
- 79.
- 80.
- 81.
- 82. Implementation Value Package Proposition(Why Buy) P. R. A. C. T. I. C. E. - Price - Research - Availability - Convenience - Trade - “I Hate Car Salesman” - Credit - Everything Else
- 83. Implementation Value Package Proposition(Why Buy) Military/First Responders First-Time Buyers Women Students Teachers Service Perks Daycare Service Free Food Community Involvement
- 84.
- 85.
- 86. Implementation Training Pay Plan Dealership Bonus /Spiffs OEM Spins Dealership Information Orientation Employee Handbook Mission/Vision Statement Community Involvement OEM Incentives, Rebates, Programs, Specials Inventory New Used Unique Communication Resources / Types Phone Text Email Video Conference Text Chat Social Media & Chat
- 87. Implementation TrainingTechnology Computers Tablets/iPads Search/Search Engines Google YouTube Apple Siri AmazonAlexa Telephones/Headsets Typing Spelling Grammar Chat Technology CRM Ecosystem Templates/Scripts Action Plans/S.O.P.s Taking Notes DMS Dealer Website Personal Website Vendor Websites Data/Equity Mining OEM Technology Hand-Raisers
- 88. Implementation TrainingTechnology Video/Video Production YouTube SEO Microsoft Office Word Excel PowerPoint OnlineReputation Google Reviews Dealer Rater Video Testimonials Cars.com Yelp Edmunds.com Technology Social Media Facebook YouTube LinkedIn Instagram Twitter Pinterest Social Media PAID Ads/ Campaigns
- 89. Implementation Training Personal Resources Typing Public Relations“PR” (Positive Propaganda) Networking Referral Generation Prospecting Speaking Appearance / Hygiene
- 90. Implementation Integration of Showroom& Internet / BDC… Showroom Sales Consultants into the Internet / BDC BEFORE they go on the Showroom Floor, they must do a “tour” in the Internet / BDC “Point Guards” “Overflow” Showroom Sales / Internet / BDC “Up System” Internet / BDC Reps onto the Showroom Sales Floor Promoting Internet / BDC Reps into Internet Sales Consultants / Point Guards or even as a traditional Showroom Sales Consultant.
- 91. Implementation Explaining of the“Point Guard” Role What are the responsibilities of a Point Guard? “Substitute Coordinator” “T.O. Manager” (Proactive and Reactive) Appointment Confirmations “B Team on the Relay Race” Who should be a Point Guard? Point Guard Pay Plan & Schedule Point Guard Accountability
- 92. Implementation Explain the InternetCoordinator Role 120 Outbound Calls Per Day (11-14% Connection Ratio) 14-16.8 Conversations Per Day (30-35% Appointment Made Ratio) 5-6 Appointments Per Day (65-70% Appointment Show Ratio) 45% Selling Ratio
- 93. Implementation 31 Calendar Days 22Employee Working Days 120 Calls per day x 22 = 2,640 Calls for the month 2,640 Calls x 12% = 317 Conversations 317 Conversations x 30% Appointment Made Ratio = 95 appointments 95 Appointments x 65% Appointment Show Ratio = 62 appointment shows 62 Appointment Shows x 45% Appointment Sold Ratio = 28 Units 28 Units x 5 Reps = 140 Units 1.5 Reps = 600 Calls per Day x 22 Days = 13,200 Calls 28 units x 10 Reps = 280 Units 10 Reps = 1,200 Calls per Day x 22 = 26,400 Calls EXAMPLE in March
- 95. We MUST Changeour Paradigm
- 96.
- 97. We Acknowledge What is Broken,Not Working, Not Set Up, etc...
- 98. Create a Planwith a Priority Protocol on What to Fix, Replace, or Secure...Take it One Bite at a Time.
- 99. Begin with theEnd Result in Mind...
- 100.
- 101. Form VOLTRON! Showroom Strategy InternetSales Strategy Phone Sales Strategy BDC Strategy
- 102.
- 103. Integrate all Initiatives intoone “Ecosystem”!
- 104. STOP being “Upside Down”!Allocate PROPER resources accordingly!
- 105. Create a NEW andBETTER HR/Recruiting Strategy
- 106. Create a NEWand BETTER CRM Strategy
- 107. Start to utilizeALL forms of communication available to you for follow up and engagement of BOTH prospects and clients.
- 108. Create and masteryour dealership’s VPP
- 109. Train, Train, Train,Train, and KEEP TRAINING! Utilize a Virtual Training, Tracking, Testing and Certification Platform and track the trajectory of each and every one of your employees!
- 110. BUILD an “INTERNET DEALERSHIP” NOTan Internet Department!
- 111.
- 112. ENJOY THIS SESSION? Postabout it on social media using the hashtag #IS20G! Share some love for your favorite speakers! Title Sponsor Contact Info: Sean V. Bradley, CSP Founder and President - Dealer Synergy 267-319-6776 seanb@dealersynergy.com