2. Employed a Comprehensive Approach
Used Both Data Analysis and Experts
• Data Analysis - Engaged GCI's Analytic Competency Center and the SAS
Institute to determine the analytical drivers of close rates
• Dealer & Field Feedback - Quizzed Regions & Key Dealers
- emailed and called all Regions
- Interviewed both poor performing and top performing dealers
• Competitive Perspective - Conducted interviews with:
- GM BuyPower - Brian L. Wines, Manager, GM BuyPower & Internet Alliances
- DCX - Rich Everett, Manager of Interactive Communications
• Industry Expertise – Conducted interviews with:
- KBB - Stephen Henson, Vice President, Marketing and Business Devpmnt
- Yahoo! - John Costello, Chief Global Marketing Officer
- Forrester – Harley Manning, Partner
- Reynolds – Randy Harvey, VP Marketing
- J.D. Power - Scott M. Weitzman, Senior Director Automotive lnternet
10. Who did we talk to?
• Poor Performing Dealers:
a) 1/3 Small 10 to 49 leads per month
b) 1/3 Medium 50 to 99 leads per month
c) 1/3 Large over 100 leads per month
– 50% reduction in close rate from August 2002 to
September – November 2002
– Geographically dispersed
• Influential, Good Performing Dealers
• Talked to Dealers, GM’s and a few ISM’s
where dealers or GM’s were not available*
*see attached list
11. What did we ask?
• Was dealer aware of decline?
• Did “retail” and “used retail” volume follow similar trends?
• Gauge importance dealer places on Internet leads
• Gauge stability of Internet personnel and internet sales
process
• Obtain dealers opinion on why their close rate declined
• Solicit ideas on how Ford can help
12. Overall Findings
Awareness: Most poor performing dealers (76%) were aware of their close rate
decline
“Zone Manager has brought to our attention”
Rob DeRoy, Premier Ford
Retail: Most dealers (67%) identified a relationship between close rate declines and
a decrease in “retail” and “used retail” franchise volume
“240 units this month, normal is 300 “
Noel Daniels, Gary Daniels Ford
Internet Importance: Virtually all dealers rated Internet business as very important
to their dealership
“Took my best salespeople and placed them in the internet department”
Gary Romeo, Lou Fusz Ford
Turnover: Almost half (42%) indicated they had experienced some turnover in the
Internet Sales Department
“Decline is a direct result of losing our Internet Sales Person”
Jerry Chase, Framingham Ford
13. Findings
• Smoking Gun? - There was no single causal factor
that drives changes in close rates
• Big 3 - The top factors mentioned were:
1. Market Conditions – Same as other retail business
“Close rates track the retail market. When we do well in the showroom, we do well with
Internet leads” Rueben Muinos, Galpin Ford
”Unrest in the economy, customers are having a hard time making a commitment both online
& offline” Dan Wiebold Jr., Dan Wiebold Ford
2. Inventory/Mix/Availability – Can’t sell what you don’t have
“Multiple leads being submitted for 6.0L Diesel, no inventory”
Colin Wickstrom, Wickstrom Ford
3. Turnover and Training – The loss of key managers hurts
“Having trouble finding the right person, has worked with over a dozen different
salespeople and can’t find the right fit”
Brian Augustine, Ken Grody Ford
15. Competitive Findings
• GM
– Believes that their close rate is generally higher (20%
- 23% nationally), but this may be driven by their
methodology
– Experiences same monthly cyclical variances as Ford
• DCX
– Does not measure close rate electronically
– Feedback from 5-Star dealers indicates that there is a
similar relationship to retail
17. Industry SME - Findings
• Staff Turnover - Consultants from a variety of sources
see continuous turnover of staff during re-visits to
dealers for continued training
• Maintenance - Dealers that have an eBusiness
Coaching and Maintenance program experience lesser
degree of fluctuation in sales results due to staff
turnover
• Process vs. People - Dealers that have a documented
eBusiness Process that is supervised and monitored by
the management team have more consistent sales
results than dealers whose eBusiness program is
primarily defined by an individual operating without
accountability to defined processes
18.
19. How can Ford help?
Top items mentioned by dealers included:
– Reports: Provide lead details report online
• Gene Evans, Gene Evans Ford (Note: Plan in place via FMCdealer for March 2003)
– eCoupons: Consumers required to complete name, address,
phone number
• Dave Ashby, John Kennedy Ford (Note: In process of development after increased
FordDirect enrollment rates)
– Training: We should concentrate training on poorer performing
Internet Dealers
• Colin Wickstrom, Wickstrom Ford (Note: Internet sales training in development for
March/April 2003 rollout in Atlanta Region)