PHOTO: Ken McCown photography http://www.flickr.com/photos/kenmccown/STEP ONE- WHAT IS EXPECTED?
Congratulations! You have been selected to run your stores’ Internet Department. Now what? In this entry I will provide some key areas for you to focus on and hopefully ramp-up quickly and begin to be an impact player for you store.
First Things First
You need to understand what Internet sales is NOT. It is not a place for “computer geeks” with pocket protectors, meek people, someone who abhors the phone, or even someone who is “good on a computer”. None of these traits will make for a successful ISM. Rather, someone who is focused, great on the phone, can handle objections and is able to make a connection with the prospect over the PHONE. The phone is the life line of the department.
Assuming you have had some degree of success in sales yourself, you are hopefully versed in some of the basic rebuttals (If I could would ya?) and know how to get someone to commit. The very first thing you should want to do is find out EXACTLY what is expected of you. By that I mean what is supposed to happen now that you are in charge. Key areas to ponder and discuss are:
- What level of production is expected?
- Focus on new or used? Certified pre-owned? What would your GM define as successful?
- What constitutes an Internet Deal?
- Email customers only? Phone pops originated from the Internet? Customers finding a vehicle at the manufacturers’ website and driving in? Referral from a friend who found the car on the Internet? Get this laid down right now, and make sure they understand if you are not getting credit for walk-ins and phone pops from Internet driven events, your numbers will take much longer to get to where they want to be.
- What is the budget?
- Where is the money going? How much is there? If you want an increase are there more monies for leads? What kind of ROI are we expecting? Every store is different. Some dealers squeak by on a budget under $5000, and others "dump" money into web advertising. Manage the monies to get the most bang for your buck.
- What is the quota?
- How many new and used are we wanting and what kind of GP/unit?- What about last year for comparison?
- Is it realistic given historical data, inventory and budget? If you have been selling 30-40 cars/month on the Internet, your inventory is under 100 units and your budget is around $8000 (averaging $200/sold for advertising), you probably will not hit your objectives. How can you magically double production when all else remains the same?
- What kind of model is the department to be?
- Pure Internet: Cradle to grave where one ISM receives lead, contacts the prospect, shows the car, and handles the negotiations to delivery.
- BDC: Appt setters are the first response. Initial and subsequent contacts are made to set an appointment for the floor or specialized sales professionals.
- Hybrid: BDC personnel initiate contact, work the lead for say 1 week. If a quote is needed or after 1 week, the lead is handed off to an ISM, or vice-versa.
- Is there any historical data to review?
- Assuming this is not the first time the store has been on the web, there is some sort of track record to be captured and considered, even it is only the number of sales.
- Evaluate it, what is glaring that needs to be improved upon?
- What is the average response time? Shoot for under 1 hour, but take baby steps to get there. A slower, measured response is better than shooting a canned response after your autoresponder goes out.
- Which vendors are you using?
- Primary lead source? Hopefully your own website.
- How many 3rd party vendors? Autotrader, Cars, Autobytel, Dealix, AutoUSA, eBay, Craigs list?
i. How are they performing? How many leads/month? Cost? Are they actually buying?
ii. Closing ratios? Measuring how many you close will tell you if the leads are acceptable or not. Look for 6-9% on third party leads.
- What about current customer base? Are you marketing to current service customers? Are they getting monthly service specials
- How much for how much? Get invoices from Accounting, and a copy of all agreements with vendors.
- Dedicated phone numbers for the Internet? Autotrader, Cars, and many other vendors, including your website, can have a direct number to the Internet Department, and allow you to listen to what is being said to the customers.
- What is the GMs' vision?
- Where do we want to go? 25%, 33%, 50% of the business? What is his measuring stick?
- What is the strategy? (He is the strategist, you are the tactician; ensure a smooth integration with parts and service to prospect for good customers and trades)
- What is the policy on quotes? What is the policy on working deals? Can you work a deal over the phone and arrange delivery, or must they come in for the best price?
- Who do you report to?
- How will you be evaluated?
- How many people do you have?
- Are you allowed to promote from the floor?
- Pricing strategy? Quote everyone, be lower than everyone, Just Get ‘em in?
- Does management REALLY know what Internet means? Or is this just the thing to do now? Are they using it now to “Keep up”, or do they genuinely believe in the webs influence?
- For smaller rural stores or old family-owned stores, this may be more applicable than most. For example, one day a young man was checking out our Bentley Continental, and wondered aloud “Who in
- If your store has fiddled around in the past with the web, what is driving the change?
- Did they pick this up at their last 20 group meeting?
- Do they have resources (people they can call on) to assist you?
- Are they “all in” behind you?
- What are the skating policies?
- Open door policy?
- Weekly meetings with department heads to discuss issues?
- Open to reconsidering pre-owned inventory? (To be discussed later)
- WHAT IS THE PAY PLAN?
-How will you be compensated?
Gross Profit?
Volume?
Hybrid?
-What is fair?
