Posts Tagged ‘dealer’

Staffing Your Internet Department From Within

Monday, April 30th, 2012

Dealerships don’t often support the American dream.  Knowing that the people you employ are the key to your success, I still find it frustrating how often a dealer looks outside of its own walls to find new talent.  We are from a society where the goal is to have upward mobility in our careers and yet we rarely offer our own the chance.

More than most, I recognize that Internet sales, lead management and digital marketing are specific talents.  These are skills that some have and some don’t.  That being said, with training in place, an average employee can deliver above-average results.  With the Internet proving itself to generate more traffic and profit for all departments than any other medium, it is absurd that we have it sectioned off as an evil stepchild in our dealerships.  (Just look where it is located at most stores.  A customer comes in and asks for the ISM and the salesperson says “They’re all the way in the back.  Let me go get them for you.”

Many dealers treat their Internet departments and BDCs as if they are on an island.  They have little contact to the outside world (or the showroom).  They are positioned out of sight and out of mind.  Internet department is still considered for the misfits that the leaders of the company don’t fully understand.

An Internet department/BDC may be a different department or island, but it shouldn’t be viewed as a place to send the outcasts.  It should be viewed as a rewarding paradise.  Being promoted from the sales team (or, dare I say, the Finance department) to the Internet department should be a privilege.  The eCommerce department should be a stepping stone to the highest echelons of management.  It is not where you send weak sticks from the sales floor to go wither away.  “Hey, Tommy hasn’t sold more than a few cars for the last couple months.  Let’s send him back to the Internet department, get him some leads and sales, and boost his confidence.”

No.  That is a bad idea.  Tommy needs to be better trained or let go.  Poor performance on the sales floor doesn’t bode well for their success in Internet sales.  Sales to Internet Sales must be considered a promotion.  It should come with additional training, vast resources, and more power to effect change.  It is far better, for this reason, that you promote from within rather than bring someone in from outside.  At least the people who’ve succeeded with you know the culture of the store.  And yet, far too many dealers don’t consider promoting their top sales people into their Internet departments.

Too often during my training of dealerships’ sales staff do I meet potentially great Internet sales candidates that have not been considered for an Internet sales position.

When I tell ownership and management about the opportunity to advance a sales professional to the Internet team, I commonly get two responses:

1)     She’s too valuable to take her off the floor.

(This makes no sense – On the floor, a sales professional touches 100 customers in a month.  On the phone and with leads as an appointment-setter, she touches 250 prospects a month.  If you give her the ability, as well as the responsibility to assist in closing deals and taking Internet TOs, she is at least twice as valuable.)

2)    She makes too much money on the floor to want to leave.

(Then you are strongly underpaying your Internet team.  If someone’s impact can be greater in another department, and bring in more dollars to the store, wouldn’t you agree that their compensation should be greater as well?)

These are two common misconceptions about evaluating talent in your store.  Often, because a manager is so close to the people around them, they don’t consider them for other opportunities.  However, a salesperson’s closeness to the dealership’s operations is a true benefit.  It allows them to hit the ground running in their new role rather than have to start an evaluation process from the beginning.

Before you opt to bring in an outside candidate, review the team you have around you.  Recognize the importance of the Internet position and see if there is an opportunity for you to reward a loyal employee with a chance to step up and take on more responsibility.  After all, growing in one’s work status is the American dream.  Why not support the dream?

The Upward Mobility at Car Dealerships

The Upward Mobility at Car Dealerships



New Blood, Bad Blood

Monday, March 12th, 2012

Not all new employees are promoted from within. Rarely have all of the sales managers at your store once been the salespeople on your floor. In other words, dealers often look outside of their own four walls and bring in a candidate from another dealership. Sometimes, though, new blood can cause bad blood. Some deserved and some not so warranted.

There are a few ways I’ve learned to avoid the cold front that occurs when a new manager is hired. One method is to get your current team bought-in and even excited about the new arrival. “How the heck do you do that?” you ask? Simple.

The first step is by involving the sales floor in the hiring of said manager. It is unlikely that your sales team is native only to your dealership. My guess is they’ve worked elsewhere and experienced other processes and people. Your sales team understands the makings of quality management material. For that reason, get them involved. If you are shopping for a sales manager (and not looking to replace someone on the floor currently), ask your top sales reps if they have worked with any great managers at other locations. Since sales managers are such valuable commodities for a store, why not try to reach for the best and snag away a competitor’s top performer? If your team feels you are valuing their opinion, they will be more open to a change at guard.

The second step is by bringing a leader from the sales floor into the interview process. Most dealerships have that one popular salesperson that can both stir up the pot, but also lead the pack. When you are interviewing candidates for executive management positions, by all means, allow the salesperson to interview them as well. If you can get buy-in from the leader on the sales floor, they will, in turn, share their approval with others and immediately generate goodwill before they ever start. One little “I like him. I think he’ll be really good.” from their lips to the ears on the showroom floor can go along way in minimizing any anxiety that occurs when a new manager begins.

If you don’t give your sales team a voice during this hiring process you are opening up the ability for them to resent the decision, thereby causing bad blood.

How else can new blood negatively infect the positive vibes on a sales floor? Allowing them to make immediate technology decisions. Any good manager measures the tools at their disposal when they come into a new store environment. However, many new managers want to immediately surround themselves with only solutions and technologies that they know. They try to create a “former dealership west” or a mirror image of the store they recently came from. Just because it was being used at their previous store doesn’t mean it was successful there. Unfortunately, some managers just like working with those tools they are most comfortable with. They bring in these vendors, not because it is the right thing for the store, but because it is most convenient for them.

When looking to change up the technology (think CRM, websites, desking), make it an organizational decision rather than a one-person, “they must know what they are talking about” situation. (Same goes for any major process overhauls they recommend.) “This is what we did over at my last store”, isn’t worth anything because all dealerships are different. If new blood brings in these wrong solutions and processes, then it will negatively affect the entire sales floor’s performance and the sales floor will blame them and you for it. Don’t allow that one person to change the direction of the ship without proper guidance from the crew. Don’t get me wrong… I don’t believe the sales team should run the roost. However, a strong, motivated crew in the showroom goes a LONG way to a store’s success and overall culture.

One last way to help create a positive relationship between new hires and current employees is to sponsor regular lunches with them. A few times a week after the new hire begins, send a small group of your employees out to dinner with them. Pick up the tab. It doesn’t hurt a dealer’s pocketbook to cover a few lunches and the time your salespeople (as well as service and parts managers) spend getting to know the new manager outside of work breeds a better working relationship. Also, your salespeople won’t get disheartened when a new floor manager starts as it means free lunch for them. It’s amazing how the little things can have such a big impact.

As ownership, it is imperative that the people you hire into your dealership adhere closely with the culture. Nonetheless, even with the right hire, there will always be hiccups and hesitation that must be overcome early on. You must do your best to ensure that the infusion of new blood into your store doesn’t cause a cancer in the rest of it. Take a few measures to involve your sales team into the process and you will see much quicker buy-in and better working relationships.

Adding a new piece to the puzzle?

 



The No-Need Deposition

Sunday, January 1st, 2012

I was speaking to friends at a New Year’s Eve party who had recently purchased a new car. I asked about their experience. They said it was “good”… just as they had expected. They had researched the vehicle online (OEM, Edmunds, KBB and finally the dealership site) before heading into the store. Everything had gone according to plan. I asked if they left the dealership an online review and they said “Yes. Three stars.”

Why only three?” I asked.

Then they told me how the only reason they gave three stars was because the salesperson kept trying to make them feel bad after the sale.

“Feel bad? After?” I asked. It turns out their salesperson kept saying over and over “My manager is really upset at me for selling the car this low.”

“My manager is pretty pissed off he has to let for of this car for the price you got online.” ETC. Etc.

We’ve all heard this before (and if you’ve been doing this for a while, you may have even had a manager tell you to say something similar to a customer.) Allow me to say that, in today’s world, saying these unnecessary statements AFTER the deal is made is only begging for negative reviews.

After hearing this (and laughing a little), I asked myself, ”Why?” Why does this still go on? Why did it go on in the first place? I’m sure, in all of the sales I’ve made and customers I’ve closed, I’ve even said this to a customer before. Why would anyone do this? I’ve never heard of a customer relenting and saying – “Okay, then just raise the price $400 more. I don’t want them feeling bad.” Or “You shouldn’t get in trouble for it. How about we add on a few hundred more just in case.” NO. That’s insane.

As a manager, if you accept a deal… live with it. Urge your salespeople to deliver top-notch customer service after the sale and hope for returning service department traffic. Or don’t accept it. You aren’t a guilt-trip artist. You are a sales manager. It doesn’t work anyway and you should recognize that it doesn’t do any good.

If you tell the customer this to cover up the fact that you are gouging them in the wallet, then why mention anything? It is akin to having a royal flush in poker on the draw and then immediately saying “Wow. I’ve got nothing. What a terrible hand of cards. I hope you folks don’t take advantage of my miserable hand here.” NO. That’s stupid.

If you are a salesperson and this is a tactic you’ve tried, ask yourself what good it could possibly do. There are several phrases that we are accustomed to saying or hearing that are No-Need statements. There simply is no-need to say them so why say them at all. If you know of any other “No-Need” statements, I’d love to hear them.



The Probability of Accountability

Sunday, December 4th, 2011

I arrived roughly 10 minutes early to train a new dealer client last week.  I meandered around the showroom trying to get a feel for who they were as a store and how they presented their dealership brand.  That’s when I came across a salesperson sitting at his desk with a very familiar CRM open.  To my wide-eyed amazement, I got to see him complete ALL of his scheduled calls for the day (roughly 30) in the 5 minutes before the store opened.  All without picking up the phone.  This guy was gifted.

“Left message, LM, LM, LM, LM, Flip to Lost, Flip to Dead, Flip to Bought Elsewhere, LM, LM, LM”.

 

Essentially, this gentleman had no desire to call a single customer back, but was more dedicated to simply getting his workload off of his plate for the day.   He was throwing away opportunities to both interact with his current clients and, in some cases, sell a car.  This is happening at your store too.

 

There are three things I know about the majority of salespeople in our industry.

1)  They will work their pay plan.  Whatever it is, they’ll work it.
2)  They won’t follow-up with their customers

3)  They won’t follow up with their customers.

 

I see managers hypocritically hold BDC and Internet teams to a high standard of number of calls made, number of appointments set and shown, but I find it amazing how they don’t hold their own sales team (those that they actually manage) accountable.  In my experience, the lowest probability of accountability happens on the showroom floor.  Your sales managers are around your salespeople so often, they easily overlook everything they aren’t doing.  You could almost remove the word “manager” from their title at all.  This needs to stop.

 

Salespeople won’t make their calls on their own.  They just won’t.  Even if you ask them nicely or schedule the call for them in the CRM and demand them to make the calls, they will find a way to push off, put away, hide, falsely complete, delete, bury, or kill that action scheduled for them.

 

You MUST actively train, track, and hold accountable your team to ensure they are making all of their follow-up calls, unsold calls, sold calls, lease retention calls, birthday calls, anniversary calls, bird calls, cat calls, or any other calls you have scheduled in the CRM for them.  Otherwise, without being held accountable, they will almost always take the path of least resistance, cycle through their day’s tasks and eliminate their opportunities to connect with a customer.  They simply don’t have their feet held to the fire enough.

 

There are systems out there (PBX boxes, call monitoring/recording software) that can increase the likelihood that accountability will become part of your showroom (and management) process.  Whether you invest in the technology, the people, or the training, you must demand that your entire sales team performs the duties asked of them in the CRM.  It is not just your livelihood; it’s theirs as well.  They just aren’t held accountable enough to realize it.



Social Spamming – by Joe Webb

Monday, November 14th, 2011

We have grown up with a different concept of advertising.  The way we have marketed ourselves over the years has been far too ‘push’ and not enough ‘pull.’  So when a new medium such as social media presents itself, many believe it is just a new platform we should deliver ‘push’ advertising through.  Understand, though, that this is spam.  Social spam.

 

Countless dealers have created Facebook pages and begun the slow, arduous task to understand it.   However, those two tasks should happen the other way around.  Instead of comprehending the needs, wants and wishes of their online social sphere of friends and followers, they just start more ‘push’ advertising.  It is akin to turning on the car and driving off… when you are 13 years old… before you have a license or even understand how to operate the vehicle… just because you saw it on TV and it looks doable, doesn’t mean it is without training and knowledge.

 

Prices and deals and Interest rates, oh my.  You can still see dealers sadly posting their inventory to their Facebook walls, tweeting out about the new model in stock, and offering below invoice pricing on their pages.  None of these ways work.  It is not the right vehicle to promote your vehicles on.  It isn’t the right medium.  Not for your followers.  Your Facebook page cannot be a new version of your newspaper ad.  Twitter and Youtube cannot be the where radio station-style ad spots are blasted out.

 

Look at how you are engaging in discussion, creating awareness of topics that are important to your followers.  Nobody gives a good gosh darn (that is me being civil) about the awesome deal you have on the 2005 Camry.  Not on the social networks they don’t.  Post those types of content and in-your-face advertisements on a social landscape and you will be discarded like a Viagra ad in an email inbox.  You are social spamming them.



It’s Not the Length, But How You Use It

Wednesday, September 28th, 2011

Let’s talk about quality, not quantity.  It is the only true way to measure greatness.  No matter what position you were in, how good you were during it is more important than how long it lasted.  It’s not the length, but how you use it.  To flesh this out, before there are any misconceptions, I must say that how long you have been in your current role at your dealership is not important.  It is what you have been able to achieve.

As I travel around the nation meeting Internet professionals, I’m am starting to see more and more people who are puffing out their chest and walking with a bit of a strut because they are the top dog at their dealership.  They must be great because they’ve been there for so long.  One individual recently told me “I’ve been doing Internet since 1995 so I must be doing something right if I’m still here.”  No.  No, you are wrong.  If you have been exploring (and commanding) this space for 16 years and you are still in the same position, maybe there is still some room to move and improve.  Stagnant water never thinks it’s a tidal wave.
A good friend of mine in the industry always said “Don’t confuse activity with accomplishment.  Just because someone has done the job doesn’t guarantee that they are any good at it.”  In other words, if you want to walk around with that air of authority and confidence, you better have achieved some impressive results.  You better have some statistical, documented data backing up the fact that you are as great as you think you are before you walk around high and mighty.  The longevity in a position does not prove that you have been successful at it.  It just means that you are serviceable.  Just because you have had your Internet title for 10 years doesn’t mean you are an industry leader and captain. It means you’ve been a dedicated soldier.  Don’t go giving yourself medals because you have battle scars.  You need to have been given them for all of your battle victories.
So, I urge you to be open-minded when you attend these upcoming automotive conferences.  Listen and learn at these events the same way even the true industry experts do.  The time of servitude at your dealership doesn’t play a role in how well you’ve performed during it.  Your success cannot be quantified in years, but with accomplishments.  Your 20 years spent in this industry at your desk might have awarded you the ability to come to a conference, but it doesn’t prove that you know all.  For a few days in October, I ask you to become a student. There is always room to grow.



The Right “Man” for the Job?

Monday, June 27th, 2011

Disastrous results occur when a car dealership sales manager hires someone solely based on one small skill-set the position requires rather than look for someone that can handle all the Internet responsibilities.

Starring – Tyler Jennings and Joe Webb

Another DealerKnows Studios production



The 4 Words That Make Sales Managers Sound Stupid

Saturday, June 25th, 2011

There are four words that are said by Sales Managers around the nation. These four words make them sound stupid. These happen to be the very same four words that are the bane of every Internet Manager and BDC Agents’ existence. They hear it from their Sales Managers endlessly and with each utterance, your Internet team grows a little more frustrated. A little more fed up. A little more disheartened that short-sightedness and small-mindedness runs the showroom. When are we going to get away from the phrase “Just get ‘em in.”

I know many of you are smiling right now because this phrase, this idiotic phrase, single-handedly is the most ridiculous request told to you daily.

In an effort to give a customer information that will bring them into the showroom floor, the Internet Manager states things such as,
“The customer wants to know if we have any in stock?”
“Just get ‘em in.”

“The customer wants a price on the vehicle they asked for.”
Just get ‘em in.

“The customer wants to make sure they can get approved before they drive in from 3 hours away with their family after attending a funeral.”
“Just get ‘em in.”

Now do you see how stupid this saying is? As a Sales Manager, do you take a TO, sit down in front of the customer and say, “Just buy the car.”
But I want to know the payment.
“Just buy the car.”
I’d like to drive it first.
“Just buy the car.”

No. you don’t say that, because that would obviously be a stupid thing to say. You give the customer reasons to purchase from you. You must provide information to them that assists in their decision. You have to understand that online shoppers, those people speaking to your Internet and BDC teams, are seeking the same information, and you need to allow your staff to deliver it to them. I’m not advocating negotiating through email and phone, but at least educate your staff as to how to overcome those questions. Your role as manager is to provide some insight and word tracks to your team so they understand to how to address the customers’ specific requests and earn the right to ask them into the store.

In 2011 (as it has been for some time), both in-store customers AND Internet shoppers have needs. They need information before they make a purchase. They need their questions answered before they make a decision. Your sales management team must learn to empathize with the Internet shopper (and their BDC team) and recognize that people in search of answers aren’t just going to come in if you refuse to give them the answers.

My manager said you can come in and he’d be happy to help you with that.
Did he give me a price like I asked?
No, he didn’t. But I’m sure he’ll make you a great deal as we are a large dealership that does our best to earn a customer’s business.
Good. Then what’s the price?”
(5 minutes later)
To the manager: She wants to know a price.
“Just get ‘em in.”

This circle jerk occurs on your showroom floor in the (lack of) communication between your Internet team and your Sales Managers EVERY DAY.

Sales Managers need to stop sounding stupid, start addressing customers’ questions, and put their Internet and BDC team in a position of power with transparent information or they will eventually hear “Just pack your bags” because you cannot survive in this marketplace with these idiotic, flippant requests to your Internet or sales team. It doesn’t work like that anymore. If you are unwilling to say to a customer “Just buy the car” without giving ANY information, value or benefit for them to do so, then you have not a leg to when trying to defend the phrase “Just get ‘em in.”

That is all.
Signed: Joe Webb and Internet Managers/BDC Agents everywhere.



Automotive Gypsies

Wednesday, June 15th, 2011

I grew up in Cincinnati, Ohio and throughout my youth, our fine city would be infiltrated, so to speak, with unsightly visitors. Gypsies would swarm the town, shopping malls, and neighborhoods. They would loiter about, often even able to go unseen without a keen eye looking for them.

They were vagabonds and pick-pockets, always looking for the edge to take advantage of you and fleece you on something (purse, wallet, game tickets) if you weren’t watching your belongings. Some would go to the extreme. If they saw you grilling out in your backyard, they’d walk right in through the open front door and steal the paintings white off your walls. They were almost magicians at taking from you without you ever noticing.

Well we have Automotive Gypsies as well. They are right there, taking from you, and you don’t even see them. You do nothing to prevent it because you are unaware they are taking money away from you.

The Gypsies of the automotive world are these lead-generating website on YOUR Google Page One, singlehandedly stealing your customers right out from under your nose. They live and breathe off of you and your business. They optimize their own sites for your dealership’s name and gather leads that should be yours. They take your business, customers looking for you specifically, and they sell them off to the highest bidder. These Automotive Gypsies are scavengers and will take whatever they can get their hands on.

They litter Google Page One with both organic positioning – based on their optimized content about YOUR dealership or they actually pay through PPC campaigns, leeching right off of you.

Here are some of the top Automotive Gypsies I see:

AutoSite.com
AutoND.com
Autodealerbase.com
Autobodyalliance.com
Autodiscountgroup.com
AutoSales.com
Mystore411.com
Quickr.com
Vast.com

I’m sure there are some others I’ve missed so feel free to share them with the rest of us. They are a dime a dozen and worth less than that.

Some of these are sometimes just microsites to third-party lead providers trying to maliciously get in on YOUR opportunities such as:

Edmunds (everyone who wants to harvest leads buy PPC on dealership names)

Autotropolis – Going after YOUR organic internet shoppers because they are optimizing their site with keywords involving your dealership name and city in an effort to sell your leads right back to you – or your closest competitor.

Some are local directories, using solely PPC/SEM to break in onto your turf, such as:

Autos.aol.com – local directories where they can search for other cars.

Superpages.com.

I strongly urge you to start keeping a close eye on the 10-12 spots that take up your dealership’s Google Page One.

Are they all of your online entities and digital assets that you control or are they Automotive Gypsies, slyly pickpocketing your dealership of its leads right from under your nose?

It is time you claim all the spaces on Google surrounding your own name. Do your best to dominate these sites and move them down the Search Engine Results Pages (SERPs) so you can protect what is rightfully yours. Automotive Gypsies aren’t deadly. They are just dangerous to your bottom line if you let them run wild on the streets of Google.

Keep your eyes open. Do you see them? You may not even noticed they’ve been hanging around you all along. They’re tricky little buggers and the first step to preventing their mischief is by seeing them in the first place.

- Joe Webb, DealerKnows Consulting



Between Two Ferns with Joe Webb – Shaun Raines’ 10th Digital Dealer Conference Promo Video

Friday, April 1st, 2011

Joe Webb of DealerKnows sits down with Shaun Raines of ReachLocal for an interview between two ferns.

This is a (rejected) promo video for Shaun’s session, “Knowledge is Power”, at the 10th Digital Dealer Conference in Orlando.