Posts Tagged ‘car dealer’

Playing Hot Potato – BDC Training Don’ts from Dealer Knows Consulting

Sunday, October 24th, 2010

I was on-site training a new dealer client’s BDC team last week when I heard the most disturbing thing.  The phone rang and the BDC agents began a discussion that went something like this:

“Who’s turn is it?”
“Not mine.”
“Not mine either.”
“Well I just had one, like, two minutes ago.”
“So did I.”
“I think it’s your turn so you take it.”
“I’m in the middle of an email. Can’t one of you?”
“But it’s not my turn.”
“Or mine.”

It was about this time, during the ninth ring of the phone, that I raised my voice and hollered, “Someone pick up the (darn) phone!  There’s a customer waiting!”

That outburst immediately got their attention and at least motivated one of them enough to answer the call.  With a little side-by-side guidance from me, she was able to set an appointment with the prospect.  I wonder how many more rings that customer would have waited through before hanging up and calling another dealer.

Your dealership team must realize that the phone is the lifeline into the store.  I am of firm belief that if you know how to handle an inbound sales call, you never have to take an up in your life.

Maybe it is just the fact that in most BDCs, the phone rings so often it is overlooked.  Had that call gone to the sales floor, in this economy, someone is liable to get stabbed by a coworker for the chance to get the lead.

This was a terrible game the BDC agents were playing with an inbound sales call.  It is the automotive dealership’s version of playing Hot Potato.  I see it happen with both phone calls and Internet leads now and again during either my in-store consulting or Virtual Dealer Training.

When I asked them why that exchange took place, their excuse was that they only wanted to be fair to the other team members.  They want everyone to have a shot at setting an appointment.

But when do you say enough is enough?  I didn’t want to “tattle” on them to the ownership and suggest they might have a crew too passive to be effective as appointment-setters because I feel everyone can be trained.  Everyone can get better with some coaching.  In this instance, my first lesson to them was that sometimes it is better to be greedy than it is to be fair.

Let it be known that I am 100% in support of having a trained, aggressive Business Development Center team handling inbound sales calls much the same way I believe there is a value to having prepared professionals in an Internet sales department managing leads.  There is a benefit to having specialized workers with defined skill sets in these positions.  I’m also all for having a fair distribution of opportunities (phone and email) between those team members.  What I cannot support is when department policy interferes with the level of support you should provide a prospect.

When that phone rings, imagine it is a mystery shop you are receiving from your owner’s 20 Group.  You do not want to be the reason your dealership scores low marks in front of their peers.  That could lead to a job loss if the call is mishandled poorly enough.

But let’s look beyond your job security and put yourself in the customer’s shoes.  When you call into a place of business, do you want those employees to look at the ringing phone as an albatross?  A chore?  Of course not!  You are a potential customer that wants, nay, deserves a professional greeting, a kind response, and an intelligent answer to your question.  Recognize this and handle all calls accordingly.

I know this doesn’t happen in many places, but it does indeed happen.  Watch out for it.  Listen to how the calls are being handled and make adjustments… for your sake and the customer’s sake.  And for gosh sake, please stop playing hot potato with your sales calls.



Do You Have a BDC or a BCC?

Wednesday, August 11th, 2010

BDC is one of the most incorrectly overused terms in the automotive retail environment. Far too often, the roles and responsibilities of the employees working in these “Business Development Centers” are doing no developing at all. They are simply the communicating with the customers. And there’s the rub.

From what I’ve seen during my limited time training dealers, most that believe they have a BDC have a team of individuals dedicated to answering the phones and sending emails. Well someone would have to do that no matter what, so in this instance, you have a Business Communication Center. You’ve created one place where the basic back-and-forth with customers is handled.
The Merriam-Webster definition of Communication is “a process in which information is exchanged between two individuals”.

While I was last on the retail side of the dealership world, I was running a true Business Development Center. The definition of Development is “the act of improving, expanding, or refining.” My BDC team had responsibilities that far exceeded the realm of basic email and phone unsold follow up communication that is so customary in many other dealerships.

A BDC must do more. They must develop business… on their own… on behalf of the dealership… by being proactive… with sales AND service customers. A Business Development Center creates their own opportunities while a Business Communication Center simply handles the normal dealership interaction that others within the store can handle themselves.

Your typical BCC team will handle inbound calls, manage inbound leads, respond to those leads, make outbound internet calls, and set appointments from each of those avenues. A BDC team should do everything above and more. They should follow up on behalf of the floor’s salespeople with calls to their unsold customers. This call can be done under the veil of a “customer satisfaction manager” call, asking questions about the customer’s in-store experience just a few days prior with the attempt to bring them back in for an appointment.

A BDC should also make post-sale follow up on behalf of each individual salesperson. Know that this doesn’t exclude the salesperson from making their own thank you call, but it should be done in addition to so as to ensure no customer is unhappy with their experience. You can’t rely on your sales team, not only to make the call, but to be truthful about what the customer stated. A second voice on the phone is always a good idea.

At the same time, I feel it is the salesperson’s responsibility to ask for referrals. Provided the salesperson has built the rapport they should have with their sold customer, it is easier to extract referrals if the customer trusts the person they are talking to rather than someone they haven’t met.

You should be actively marketing to your database through both phone and email communication. There is no better way to do this than having your team handle upcoming loan and lease expiration calls. Calls to lease and loan ending clients of the dealership were very prevalent several years ago, but I think they have gone away over time. And that is unfortunate. There is no better client to earn than a loyal one you are keeping. Make sure that you have a team and process in place to make calls to these valuable customers.

Not only is your Business Development Center your first line of defense when a prospect calls or emails in, but it should also be the backstop of the dealership. No customer should ever be marked “lost”, “inactive”, “upside down in trade”, “unable to finance”, or “bought elsewhere” unless another member from your dealership, namely someone from your BDC, has reached out and tried one last time. You need your team to play the role of first and last person to touch each opportunity when possible.

Recognizing that a real Business Development Center is the voice of the dealership on every inbound/most outbound calls, make sure you use them in such a way. While I was managing my BDC, we didn’t only manage the customer relationships inside the dealership, but managed the dealership’s brand outside it as well. I’m a firm believer in investing your time in the local community. We executed many grassroots marketing campaigns where I sent out my staff out into the public (and usually accompanied) to work events. From shaking hands, giving out litte give-aways and tchotchkes, running contests, setting up booths at fairs, and attending multiple chamber of commerce meetings, there was not much my BDC team wasn’t able to handle. If they can be the voice of the dealership and are trained, not only on scripts, but product knowledge and customer service initiatives, there is nothing they cannot handle. This is what I consider true business development.

So either require more from your Business Development Center personnel or start calling them a Business Communication Center. Don’t overpay for someone just because they can handle a script, send out well-worded emails, or exchange information between two parties. If you are going to pay a premium for “development”, make it worth the dealership’s while. Make them sound in the art of improving, expanding, and refining. THAT is development.



It Takes a Village – by Joe Webb

Sunday, August 8th, 2010

When a lead arrives, a prospect is born. As the lead ages in the CRM systems of our homes, it must be cared for. Every lead has specific needs and it is the responsibility of the guardians of that lead to nurture it. Rules must be set for the lead to follow and certain requirements are to be enforced. One person should not be the sole guardian of each lead. It takes a village.

To ensure a lead reaches its full potential (sale = adulthood), multiple people within your dealership have to get involved. At different points of every lead’s existence there comes a time where different influences must help it along its way to sale.

Simply put, it cannot just be the Internet Sales Manager’s sole responsibility to manage every lead. This is why a Business Development Center is of such importance to so many dealerships. It gives dealers the ability to have multiple hands on each individual lead. If you do not have the benefit of a BDC, you must bring your management team into the mix. However, with a BDC team in place, you are creating both a front line of defense for your dealership as well as a backstop.

If the initial correspondence with an e-lead is handled by the Internet Sales Manager, then I believe you should have a second stage of communication where a representative from the BDC/management team reach out to the customer under the guise of Customer Relations Manager. If a consumer feels as if they are valued and have the attention of multiple people in the store, they may feel better taken care of. At the same time, the second stage calls made from the BDC/management team will alert you to shortcomings the prospect may have felt they had with the original ISM. Much like a BDC call to an unsold walk-in on behalf of the sales floor, a second ear open to a customer’s needs usually yields eye-opening results.

In another instance, when an appointment is set by an Internet Sales Manager, it is only good business to have an additional person reach out and confirm the appointment. Let’s face it…. Doctors are not the ones calling you back to confirm your appointment, it’s the nurse receptionists.

That is the power of the BDC. More than one person making multiple touches to maximize results. It is a team environment. We must make back-up calls for the sales team to unsold customers, to all sold customers, to all set appointments, to all missed appointments, to all potential customers, to all active leads, to all impending lost customers, and to all lease return customers.
And it isn’t just calls that should be made to these consumers, but emails too. Fit yourself with a strong CRM that allows several people to be prompted/triggered to contact each customer (via phone and email) without the lead changing hands. That is a very important trait to have in any good CRM.

A lead cannot and should not be handled by one. It must be handled by multiple. Don’t let the youthful leads of our generation slip through the cracks of our dealership society by letting them fall by the wayside. Guide the leads using different role models at different times through their life to help them blossom into the sale they deserve the chance to be. To raise a customer from lead to sale, it takes a village.



DealerKnows Consulting Introduces Automotive eCommerce Expert Bill Playford as Vice President

Thursday, June 24th, 2010
DealerKnows Consulting, an Automotive Internet Sales Training firm, officially announced eCommerce expert, Bill Playford, as their new Vice President today.

Joe Webb, President and Founder of DealerKnows Consulting said “I couldn’t be more pleased to have someone of Bill’s caliber and reputation join my DealerKnows team. He brings a level of in-the-trenches know-how that is often unmatched in most automotive digital marketing professionals and he is one of the few that is as passionate about this industry as I am.” 

Vice President of DealerKnows Consulting

Vice President of DealerKnows Consulting

Playford continues, “Joe Webb and I have known each other for several years and fast became friends. We share a deep-seeded desire to change the way vehicles are bought and sold. We understand that people buy cars from people. We also know that with practice and dedication, the car business cannot only be financially rewarding, but also a way to create friends (and clients) for life. These shared philosophies, coupled with our experience with dealers and vendors, will allow us to continue to offer world-class consulting to our dealer clients.”

Bill brings a decidedly different skill set to the DealerKnows team. While spending the last three years working for Trilogy, Bill played an instrumental role in launching three new retail solutions for the domestic and international market. He adds a depth of knowledge of vendor technology, and its effective implementation at the dealer level. Moreover, he brings the experience of working for one of the most successful privately owned technology companies in the world.

Having recently served as Director of Retail Operations for Trilogy’s SmartLeads program, Bill brings intimate knowledge of lead acquisition, lead quality, lead scoring, and lead segmentation. In the process of adding nearly 150 dealers and over 350 franchises to beta test Trilogy’s lead scoring and lead prioritization software, Bill helped dealers develop successful ways to efficiently acquire and convert third party leads. His efforts were reflected in OEM and dealer group adoption of the SmartLeads lead purchasing program.

As the Vice President of DealerKnows Consulting, Bill will be dedicating his time to the Virtual Dealer Training program recently launched by the company’s founder, Joe Webb. “I couldn’t be more excited to have Bill Playford take the reigns of an already successful program like our Virtual Dealer Training. Clients on our Virtual Dealer Training program have been seeing huge jumps in their online business and Bill’s involvement will only help us grow our virtual offerings and assist more dealerships.” Webb says.

“Throughout my career in the car business, I’ve come to grasp that training (or lack there of) is the root cause of many issues that plague both car dealerships and customers, alike. Many new retail hires lack the perspective and understanding that it takes to experience success. Workload, turnover, management shuffles, and egos tend to impede training from within. Expense, consistency, and timing tend to preclude training from outside. Hiring an “expert” to run the operation is often cost prohibitive, or just not practical. The end result is that training is viewed as a good idea, but too hard to coordinate, and thus put on the shelf. “Playford states.

“Since cloning is not yet a convenient solution,” he continues,” virtual training provides the means to train retail staff conveniently, and cost effectively. A dealer doesn’t know what’s going happen in the eight weeks after they book a consultant, and when the consultant shows up. Incentives change randomly, which can radically affect staff availability. Consultants typically aren’t local, and they surely don’t come for free. Hiring an experienced Internet director can be extremely expensive, and may yield mixed results. Virtual training provides the means to get a dealer’s staff on track, and keep them there- all at an incremental cost. With the DealerKnows training program and client base already in place, this allows us the opportunity as a team to continue carrying the torch toward a more progressive way to virtually educate and consult dealers.”

Prior to joining the SmartLeads team, Playford spent six years developing “click to buy” initiatives, catering to car buyers who are no longer interested in purchasing vehicles the traditional way. Over the course of eighteen months Bill’s team at Trilogy developed and launched a web buying service for the nation’s largest publicly traded auto-group, as well as the developed of a web specific, OEM backed, buying service for the international market.

Like the rest of the DealerKnows team, Bill also brings front line experience to the table. Bill spent four years at one of the first Internet dealers in the country. Building on what he learned from the best, Bill was among the first to launch an analytics program to ensure his dealer was delivering the right message to the right customer. His research directly led to the creation of association-specific buying programs, neighborhood level marketing programs, as well as cost saving lead optimization strategies. His pioneering geographic and demographic specific targeting methodology was also noticed by KBB, where he served on its inaugural Dealer Advisory Panel.

Bill is extremely passionate about automotive ecommerce and says his goal is to share his sales, marketing, and product development skills to help dealers sell more cars, and add customers for life.”I’m truly excited to be joining the DealerKnows team.” Playford states. “Having spent the last few years developing technology, I’ve come to the realization that even the best technology cannot reach its full potential if it is not being used properly. After much careful consideration, I decided I to rededicate myself to helping people sell cars.”



How to Deconstruct Your Leads

Sunday, May 23rd, 2010

When a lead arrives in your inbox, do you quickly send out a response based on the type of vehicle they inquired about? If so, you may be going about it all wrong. While I agree that time is of the essence, the quality of response far outweighs the speed of the response. Why? If five local dealers send 1 minute auto-responses and you were to get back to the same prospect 20 minutes later, who sits atop their inbox when they open it up? You. The benefit? Many people read their emails from the top down. The first returned email is not always the first to be read.

That being said, take your time and follow these steps.

1. Determine (if possible, don’t assume) if it is a man or woman emailing and prepare yourself accordingly before a call or email.

2. What time did they submit their lead? Are they night owls? You should have both follow up emails and calls scheduled 23/24 hours after their initial inquiry (though those are not your first contacts).

3. Does their email address give anything away to where they work? Maybe you’ve sold someone from their office.

4. Does their location assist you in personalizing your email response? You may know someone in their area or have attended a local school yourself.

5. Google their name – find out everything you can about them. (It is time to do a little spying.)

6. Try to find their accounts on LinkedIn, Facebook, Twitter, MySpace, and Spokeo.

Your goal is to find out as much about them – their interests, their likes, where they were schooled, where they work and live – as “digitally possible”. You must use these findings to build rapport with your prospect and find some common ground.

Internet Managers do not have the luxury of sitting in front of these leads unless you are employing video chat at your dealership – which I had done with great results. If not, use the digital networking sites and the clues they leave on their leads to offer them more than a price, but a friendly, professional guide through their car-buying process.

While it seems like a lot to do to each lead, you can legitimately accomplish the tasks in 5 minutes. It is well worth the extra time you will spend. The personalization of your response will weigh heavily on whether they ever walk into your showroom.



A Time To Call

Monday, December 7th, 2009

An individual is interested in a vehicle.  They research the vehicle online endlessly.  Site after site, they peruse through information regarding pricing, features, specs, model configurations, comparisons, and reviews.  To stay away from the stereotypical car sales tricks that they’ve been predisposed to avoid, they decide to send an email inquiring about a specific vehicle to a number of dealerships.  This customer could have called a dealership or simply driven to the local dealer quicker.  Instead, they do all of their homework, hoping to prepare themselves for their inevitable purchase.  Their goal is to receive back information that will help them make the decision between dealers easier. What happens?  The customer’s phone rings.  Sales representatives call unexpectedly and single-handedly shoot themselves in the foot by not utilizing the same medium that the customer has chosen to begin communication.

Why?  Just as the customer has been trained to research and negotiate from the comforts of their own home, the sales associates have been trained to disregard the email and get them on the phone.  Now, let me state that I agree with the trainings of some other consultants that there is a proven importance to getting a customer on the phone.  However, I disagree with their beliefs that a call to an internet customer comes before an email.  That is an antiquated and dangerous philosophy to be teaching people on the floor during these times.  I also believe that a 1-miute auto-responder confirming the receipt of the lead is not a worthy enough email to warrant a call.  A call to a customer without their permission and without warning is often unwanted and automatically eliminates you from consideration.  You are unwilling to take their desires into account when contacting them, they figure, so how are they to trust you in the future?

When do you reach out to them and how do you do so without upsetting today’s temperamental customers?  You must begin by sending a detailed, personalized email with information (and pricing) regarding their exact vehicle requested as well as some alternative options.  In this personalized, customer-focused email answering all of their questions, you must also state that “I understand you are looking for this information quickly.  If I do not hear from you shortly, I will be calling you to confirm you have received this email.”  Ten minutes after this lengthy email is sent, you have earned the right to pick up the phone and call.  However, the phone call has to be under a guise other than “Hey…got your email.  When do ya wanna come in so I can sell you this here car?”  Now, I put a twang in that call because that is what I commonly receive while mystery shopping.  Priceless.  Instead, here is a best practice that I taught my staff at my dealership.  The call must be presented as “Hello Mrs./Mr. Customer, my name is (you) and I am with ABC motors.  I don’t mean to bother you, but I simply wanted to ensure that you have received the email I sent, answering all of your questions that you inquired about.  “Emphasize the last “you” so they realize that they brought this call on themselves and that you are doing them a favor.  Continue with “With all of the spam filters out there today, I needed to make sure it landed in your inbox.  I’d hate to think that you didn’t get all of your questions answered just because of a mail system.”  Whether they have checked or not, once they have acknowledged and understand your unselfish purpose for calling, you can say, “While I have you on the phone, can I ask if you’ve already had the opportunity to test drive this vehicle?”  Then follow your normal script/phone structure.

Your initial email has provided them all of the information that they’ve requested.  At that point, you have essentially done everything that they have asked of you and more.  You gave them a warning shot that alerted them of an impending call.  Now, if you receive an email immediately back stating – no call – or anything similar (even if you receive follow up questions), I believe you should continue to use that medium.  Email may be their security blanket.  Taking that away from them makes you the enemy.  Respect their wishes and continue with that medium of communication.

Reaching out to them in the same method in which they contacted you shows your customers respect.  We’ve all heard a customer say “if I wanted to talk to someone in person, I would have just called myself.”  It’s difficult to talk yourself out of that one.  I’ve tried and, more often than not, any potential relationship is shot at that point.  So don’t put yourself in that position.  Use the customer’s chosen method of communication and only call when you have given them fair warning.  Otherwise, you are liable to come off sounding as a telemarketer, or worse, the dreaded car salesperson they were trying to sidestep.

Opening a dialogue on the phone with the customer will forever remain imperative.  What is equally important?  Knowing the time to call.

To learn how to make the most of your business development center, visit http://www.dealerknows.com/contact



The “Pretend” Test Drive

Tuesday, July 21st, 2009

A zany car salesman takes an unsuspecting customer on a “pretend” test drive. Craziness ensues.
Another Joe Webb (DealerKnows) “car guy” creation.



Five Senses

Tuesday, March 17th, 2009

 

There are several tricks of the trade to employ while test driving customers. Even with the simplest of instructions, without proper training, every salesperson can get it wrong from time to time. Who is the unfortunate victim of poor training? The customer. Especially in this instance. Another Joe Webb car guy creation.
Starring John Schrimpf and Anthony Pollina