How to Maximize Gross with Your Online Customers - Volume 4 Issue 4 April 2005

The Key Factors for Success

With the majority of auto shoppers doing their research on the Internet before stepping inside a dealership, we can be certain that they have a lot of ammunition under their belt when it comes to negotiations. The question is, can you make a good gross with an Internet customer?

The answer is, YES!

Here are some key factors that will help you maintain gross with your Internet customers, and make your Internet department a success:

• Attitude
• Qualify
• Skills
• Strategy
• Be Creative

Attitude
Your attitude is the most important part of being successful in the Internet sales arena. You need to believe that you will hold gross selling vehicles through the Internet department. If you approach leads with the attitude that everyone on the Internet is just looking for your best price, then you will price your cars accordingly. The truth is, only 15% of Internet shoppers buy on price alone. So what is the other 85% looking for?

Qualify
We need to understand why the Internet prospect went online in the first place. Most Internet departments get a lead and call or email the lead with a price quote that is either below invoice or 1-2% above invoice. Too often, dealers do this without really understanding the prospect's motivation. It is quite possible, and often probable, that the prospect is more interested in the specific vehicle they want than price. So, instead of focusing on giving them the right price, emphasize getting them in for an appointment. 99% of shoppers want to drive the car before they buy, so if they are seriously interested, they will come in.

Skills
Once you've qualified your prospect, you need to possess the right skills to make a deal. Internet prospects present a unique challenge and require a different process and sales skill set than walk-in prospects. You will need sales people who are trained and skilled at servicing this unique prospect.
Your sales representatives should be able to build value before the prospect ever sets foot in the dealership. Prospects focus on price because it is the only tangible measure in the process prior to their arriving at the dealership. Giving them other tangibles, even via email, helps build rapport. For instance, notices on the latest CPOs that have come in, incentives, etc. are tangibles. Build a relationship with your prospect that creates a win-win situation.
Skills and qualities that a good Internet sales person should possess are:

• Excellent phone communication skills
• A mental archive of rebuttals and closes
• Superior organization skills
• Dedicated and unrelenting follow-up skills
• Technical skills (these are secondary to those listed above, but always help!)

Knowledge
We have all heard that knowledge is power. In order to be the best you MUST "Master Your Craft." One of the most important aspects to Internet sales is to understand the third party site landscape and how critical it is in automotive retailing today. Your third party lead aggregator (such as Dealix, AutoUSA, and Autobytel) can help you in this area. For instance, you should have an understanding of where the best leads comes from, and also be able to control the sales territory, along with the makes and models requested, for the leads you get. Also, your sales representatives should be able to identify which sources are good for new car shoppers and which are for used car shoppers. They should also have an idea on how the leads are gathered and where to get the most accurate trade-in values. The bottom line is - the more you know about where customers are on the Internet, the more effective both you and your dealership will be.

Strategy
If your dealership gets 800 leads, and you get 30% of those to come in for appointments, that's 240 shows. If you sell 50% of those, that's 120 sales. That's about a 20% close rate, a good goal. In other words, 800 leads to sell about 120 units.
Leads can come from your website, business development initiatives, your OEM, and third party providers. What's important is finding multiple opportunities to do business, and connecting with good customers, wherever they happen to be.
Once you start gathering this car buying interest, you need to manage it. This is where you will use an ILM or CRM tool to assist in the engagement process. There needs to be a standard operating procedure in place for every step of the sales process: initial contact, follow-up, the phone process, securing appointments, giving price, the "in the dealership" experience, post sale, and CSI.

Be Creative
Don't be afraid to think outside the box. One of the areas where the Internet has grown the fastest has been in finance. Everything from credit cards to mortgages and, of course, automotive financing can be applied for online. Develop a custom business plan for your dealership combining all of the most profitable parts of your dealership and make it available 24 hours a day, 7 days a week. One area that is often overlooked is distressed credit. Only 30% of car buyers have perfect credit. Let's engage the other 70% of our customer base with Special Financing. Remember, a sub-prime candidate can have a gross average of $3,500+ per copy on used vehicles!

Seize the Opportunity
The Internet is not for the meek or timid; however, it is also not, as one of my prospects once referred to it, "The Devil" either. It is an opportunity to provide better service more quickly and thoroughly than ever before. Your response to third party leads and your website are the first impressions that many prospects have with you and your dealership. The correct attitude, skills, and knowledge, combined with prospect qualifying, strategy, and creativity will not only build value in your dealership, it will also build gross in your Internet deals.