Methodical,Strategy-Driven Success - Cover Story September 2007

With the continuing explosive growth of online auto shopping, dealers are looking to leverage every technology and process to improve their game. It is getting more challenging as all dealers, manufacturers and vendors recognize that the Internet is here to stay. Not too long ago only 25 percent of dealers had Web sites; now, 96 percent do.

A primary challenge dealers are facing is how to put an Internet department together. There are lots of pieces to the technology puzzle, like Web sites, search engine optimization, lead management software, CRM software and call monitoring. Training their teams to be effi cient, focused and productive is an important step for any dealership. Then there are staffi ng and process issues to address as well.

It isn't enough to have the separate components; dealers need the solution to be customized to their store and the way they do business. All the pieces must fi t together properly, or else the outcome will be erratic at best. Often when a dealer is not getting the results, they look at buying more leads or changing Web site vendors, when the real problem lies in the process or the people. That is a major reason why Internet initiatives can fail. Dealers buy tools, but do not get the proper training, and managers do not hold the employees accountable to perform all the tasks necessary to earn new business.

Peruzzi Automotive Group increased Internet sales from 30 to 107 per month in six months by using a SWOT analysis to identify new markets of opportunity. The best way to start the process of building or rebuilding a successful Internet sales department is to perform a SWOT analysis (strengths, weaknesses, opportunities and threats). This is one area where hiring a consultant can bring in a fresh perspective and new ideas. Dealers should look inward at their current initiatives and then outward at their competition.

One needs to create a vision of where they want to go, as well as a roadmap to get there. D.I.M.E. is an easy acronym to remember that can serve as your guide:

• Design: Defi ne the dealership's vision of the future. Then design a roadmap to reach the levels of production and the ease of process the dealership wants to enjoy.
  
  
• Implement: After completing the design phase, it is time to implement. The implementation phase consists of training your people, and setting up the technology and creating promotions to support your processes.
  
  
• Manage: Tracking is a necessity to successful management. Performance must be measured and monitored on a daily, weekly and monthly basis.
  
  
• Evolve: Technology is constantly evolving. Dealerships need to keep up with the latest ways to reach customers. Web sites and e-mail were new at one time and provided a leg up for the stores that embraced them. Currently, video search is one of the newest ways to gain an advantage over the competition. Next year it will be something new. It is important to stay ahead of the curve.

Focus should be concentrated on four key areas: the Products (tools), People, Process and Promotions at your dealership. Quite simply, the store needs to fi nd and create Products, People, Process and Promotions that are going to personify their own unique vision. As you review each area, it is helpful to know where to look and what to look at.

When reviewing your products, the two hot buttons are Web sites and search engine optimization. Research has shown that dealers get the best closing ratios from leads generated from their own Web site. So dealers should focus on how to get more traffi c and more leads from their own site. There are other ways to generate traffi c that are very economical and more effective than expensive Pay-Per-Click (PPC) campaigns.

Social networking costs nothing and will bring buyers into your store. Go to bestplaces. net to learn the demographics of the people in your area. Use this information to determine how to reach them. For example, if you have a high percentage of African American population, go to blackplanet.com* and establish a presence. Have one of your African American salespeople set up a profi le and post all of your videos. Your goal is to become the automotive resource in your area for this demographic. It is important to be among the fi rst in your market to capitalize on this. Dealerships need to learn how to use these powerful resources and leverage the existing video and social networks on the Web. That - combined with Psuedo-sites, focus sites and micro-sites - will bring an incredible amount of incremental traffi c to a dealership Web site.

The integration of a well-trained staff and a solid process will make all the difference in the results obtained. Some dealers still are putting the wrong people in the Internet departments, or they are understaffed and unable to handle the follow-up properly. Often, dealers would put either an IT/techie or an underperforming salesperson off the fl oor to be the Internet manager. Dealers quickly fi nd out that product knowledge and communication skills are more important than technical knowledge. Many technical people are not good communicators. They are great at sending fancy e-mails, but do not follow-up with phone calls, and if a salesperson can't close a sale, you don't get better results by moving him to another department that involves sales.

Finding the right people to staff your Internet sales department and utilizing the latest technology and methods is extremely important. The normal methods will produce the normal results. If you pursue new people the same way your competition pursues new people, you will get the same quality people they do.

people. Every store is running newspaper ads and posting jobs on Careerbuilder.com and Monster.com. Try something different, such as broadcast television. Purchase 10 30-second spots. It will cost you somewhere around $3,000-$5,000. In the commercial, stand in front of your store and say something like, "Hi, my name is Sean V. Bradley and I am the owner of Bradley Motors here in Philadelphia, PA. We just completed our new multi-million dollar customer development center and need quality people to staff it. If you are currently working at a dealership and are not happy, or feel you are not able to earn the money you want and deserve, if you have no dealership experience, but have good communication skills and would like an exciting career in a trillion dollar industry, call us or go online and submit your resume. We are growing so quickly here at Bradley Motors, we are always looking for good people to help us enhance our customer experience."

This type of ad will produce several results. It will help you fi nd the right people to help you reach your Internet sales goals and catch the attention of quality managers, salespeople, and other dealership personnel in your area. This ad will also be seen by all of the consumers in your area. You will be the only dealership they see running ads like this. Consumers will see that your store is committed to customer service, that you are growing and that big things are going on at your store. This will differentiate you from all the other dealers in your area in the eyes of consumers.

Once you have the right people, a critical component is training. A formal training program can give employees a solid foundation that provides not only great results for the dealership, but job satisfaction that keeps employees from leaving in frustration. There are many options for training, including one-day seminars, on-site engagements and multi-day bootcamps.

Many vendors and trainers offer one-day seminars and workshops that are great opportunities to add to the basic Internet sales knowledge employees already have. The focus should be on content and not the cost. Make sure you understand what the benefi ts are and what the expected learning outcomes will be. If it makes your department more effi cient or effective, it has relevant content.

Selecting the right on-site training partner is important to your store's success. While it is inevitable there will be some content overlap with material out there from all trainers, what is really important and differentiates the best is their custom approach to each assignment and their people.

Every engagement should start with a thorough analysis of the dealership. Then a custom solution should be designed for each dealership. What works for a dealer in Boston might be completely different than what works for a multi-point dealership client in Evansville, Indiana. The markets, the resources, the staffi ng and the tools are different with every store, so the training company needs to make sure the solution fi ts the needs of the specifi c dealer.

Additionally all trainers need to have experience and success in Internet automotive sales. Training isn't about telling clients what to do. Effective training needs to show them how to do it. Trainers should make calls, book appointments, go along on demo rides and sit in the fi nance offi ce during the closing process.

Look for a training partner that provides a 360-degree view of Internet departments and their customers - someone who works with vendors and is backed by industry experts

After training, follow-up is important and dealerships should look for a solution that monitors their results on a daily basis after training is completed. The right training partner will check call to appointment to sale ratios, monitor all e-mail and phone correspondence, provide ongoing training on handling objections and rebuttals and so much more.

Nelson Mazda went from seven to 80 Internet deals per month in one year by using the Design, Implement, Manage and Evolve (D.I.M.E.) method.

In the past, dealers had to pay trainers to come to them and spend a week or more explaining what an Internet client wants and how to sell to them. Speakers at 20 groups offer great ideas, but only have a few hours to teach. The best way to learn what your store needs to know to be successful is to attend a comprehensive Internet sales boot camp. Find one that is a train-the-trainer Internet course.

These are perfect for departments that want to improve the results they are already getting. The format is in-depth, and the longer time frame allows for a greater amount of material to be taught. Participants also enjoy the benefi ts of networking and sharing ideas with other participants. Often, dealerships will recognize results the same day they implement what they learned from the session.

There is always a need for one-on-one training. Video on demand, training, tracking, testing and certifi cation through an online virtual training system will work, too. The number of vendors and trainers are growing exponentially. Video on demand systems are used successfully by Sonic, MileOne, Sony and Disney, to name just a few.

While indeed the Internet is not a new phenomenon anymore, the landscape continues to change, and there is always a need for training to stay ahead. It is just a matter of how much training is needed. With the Internet, training is focused on how to leverage technology to increase sales and how to best meet the expectations of Internet customers. Companies that are focused on improving customer service have always embraced training for salespeople and service employees. Those organizations are constantly evolving their process. Generating leads for salespeople is expensive. Make sure these leads don't fall in to the laps of illequipped and under-trained people. Investing in the right people and giving them the right training is the first step toward success.

As more and more people are using the Internet, the focus has shifted away from the 20 percent of the market who are shopping price alone to those who are looking to save time, checking inventory or looking for a better way to do business.

Finding new and cost-effective methods for promoting your dealership can be a challenge. It seems each year the cost of leads, Web sites and other Internet based advertising mediums increases. Google's purchase of YouTube, a provider of free hosting for video on the Internet, cemented video and video search as the next evolution of marketing. The success of YouTube and MySpace show the desire for video on the Internet.

The best news of all is that many dealerships can get started with what they already have. They need to collect a library of videos; local commercials, national commercials, testimonial videos, walk-around videos, how to properly install a car seat, what you need to know to fi nd the right car, secrets of a car salesperson, and more. All of these videos are presented by your dealership, with many recorded at your dealership. Take these videos and post them on YouTube for free. YouTube will handle the coding and make them available to be searched at Yahoo, MSN, AOL and Google. When people search for videos on topics related to car buying, they will fi nd your store.

Call or e-mail Sean for your free strategy session. This is not vaporware; this is a phone consultation to go over:

• Your four P's - Products, People, Process, Promotions
  
  
• SWOT Analysis - Strengths, Weaknesses, Opportunities, Threats
  
  
• D.I.M.E. - Design, Implement, Manage, Evolve