DealerAdvantage; Staffing for Online Sales Success
- 1. Growing Your Internet Staff from 10 to 300 Cars per Month
- 2. Courtesy Chevrolet in Phoenix, AZ has become the USA’s leading Internet retailer of new and certified used Chevrolet vehicles… Human Resource Development has been the key to this success.
- 3. Growing Your Internet Staff from 10 to 300 Cars per Month Ralph Paglia - CRM / eBusiness Director Organizational Development is the essential stumbling block that many dealers and ISM’s report as the primary reason for Internet Sales Operations failure or lack of growth into a strategically significant level of sales.
- 5. Growing Your Internet Team’s Capabilities Allows Dealers to Feel More Confident about Online Ads Courtesy Chevrolet’s Internet Sales Team growth has Allowed the Dealership to Become More Aggressive with Lower Cost Online Marketing 100,000 Courtesy Chevrolet Monthly Web Traffic; Nov. 2005 through Jan. 2007 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 BZ Results site Cobalt GM PowerShift Site Reynolds Spanish Site SEO/SEM Driven Micro-Sites AZ Central-Chevy Site ClickMotive SEM Sites Other Sites
- 6. Growing Your Internet Staff from 10 to 300 Cars per Month Requires Large Quantities of Leads 61,642 Leads Generated and Tracked within CRM System Courtesy Chevrolet 2006 Lead Volume by Broad Category Source Type CRM & Non-Web SEM/SEO Generated Leads Generated Leads 14,792 18,738 24% 30% GM Provided Leads 1,997 3% Third Party Sourced Leads 26,095 43% SEM/SEO Generated Leads Third Party Sourced Leads GM Provided Leads CRM & Non-Web Generated Leads
- 7. Growing Your Internet Staff using Large Quantities of Leads will Generate Higher Volumes of Sales 4,008 eBusiness Department Sales of New & Used Vehicles in 2006 Segmented by Marketing Category (Total Store Sales >11,000) Unit Sales Volume by Lead Source Category CRM & BDC Recycled SEM/SEO Generated Leads Web Generated Leads 1,075 1,695 27% 42% Third Party Sourced Leads GM Provided Leads 989 249 25% 6% SEM/SEO Generated Leads Third Party Sourced Leads GM Provided Leads CRM & Non-Web Generated Leads
- 8. Growing Your Internet Staff using Large Quantities of Leads will Result in Closing Ratio Variations Sales/Lead Closing Ratios ranged from 5.15% to 16.64% when segmented into categories based on Marketing Type 18.00% 16.64% 16.00% 14.00% 11.76% 12.00% 9.93% 10.00% 8.00% 6.00% 5.15% 4.00% 2.00% 0.00% SEM/SEO Generated Leads Third Party Sourced Leads GM Provided Leads CRM & Non-Web Generated Leads Total Lead Source Working Completed Invalid Leads Sold Leads Leads SEM/SEO Generated Leads 14,792 591 8,252 5,652 38% 1,075 11.76% Third Party Sourced Leads 26,095 1,339 17,838 6,909 26% 989 5.15% GM Provided Leads 1,997 55 1,316 501 25% 249 16.64% CRM & Non-Web Generated Leads 18,738 1,997 15,065 1,665 9% 1,695 9.93% Totals 61,642 3983 42471 14746 24% 4008 8.55% Monthly Averages for 2006 5,137 332 3,539 1,229 24% 334 8.55%
- 9. Current National Close Rate 9% Internet Strategy Realistic Planning Potential is 18% Pains 50% of a dealer’s Phone, Lead and Showroom traffic originates from the net… What is your dealer’s current marketing strategy? Lead providers? What is submission ratio from dealer’s site? Who updates it? Dedicated people? Process? Pricing strategy? Does dealer monitor and measure visitors, leads, response rate, appt%, show%, close%, profit, CSI, etc… eBusiness training? Strategic Drive TRAFFIC to an INTERACTIVE web site that generates leads that flow Goal into dealer’s PROCESS engine which converts them into SALES. Convert Internet leads into showroom visitors that buy cars Tactical Use a predefined and consistently executed inquiry response process, Objectives customized email templates and phone scripts that result in appointments that generate increased customer visits to the dealership Process 1. Autoreply acknowledges inquiry and sets customer expectations 2. Email with price quotes on several vehicles and sets stage for phone contact is sent within 30 minutes of lead arrival (business hours) 3. Call customer on phone within 45 minutes 4. Schedule showroom visit & test drive appointment 5. Confirm Appointment via email AND 3rd party phone call Technology •Internet leads from ALL sources routed into Lead Management Tool that integrates with DMS, reducing keystroke entry of customer information •Wireless devices for ISS’s that integrate with Lead Management Tool Metrics Lead volume by ISS with response time, appointment & closing ratios
- 10. Growing Your Internet Sales Team Requires that you Define what Your Internet Process Should Look Like Inbound Internet Lead Management Process Dealer Lead Management Process Map
- 11. Growing Your Internet Sales Team works best when it occurs “Organically” and is Specialized Organic Growth Courtesy Chevrolet is a single point Chevy dealer with 3 fully staffed BDC Team’s, an eFinance Sales Team and 4 Internet Sales Teams. These 8 teams of automotive sales professionals are identified as follows: 1. New Chevrolet BDC 5. New Chevrolet Internet Sales 2. Used Car BDC 6. Used Car Internet Sales 3. Wholesale Parts BDC 7. Bell Road Internet Sales 4. eFinance Sales Team 8. Commercial Internet Sales Let’s Take a Look at How It Happens…
- 12. Courtesy Chevrolet CRM/eBusiness Teams as of August, 2005 Ralph Paglia Mike Gordon IT Director Begins at Courtesy as eBusiness Director BDC Manager Internet Sales Manager New & Used New & Used Vehicle Sales Dept. Vehicle Sales Dept. CSR CSR CSR CSR CSR CSR CSR CSR ISS ISS ISS ISS ISS ISS ISS ISS 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 Phase 1 Sales Results: Internet sales averaged 88 units per month (new & used) BDC generated sales averaged 92 units per month (new & used)
- 13. Courtesy Chevrolet CRM/eBusiness Teams as of December, 2005 Ralph Paglia CRM/eBusiness Mike Gordon IT Director Director Joel Matteson George Salman BDC Manager Internet Sales Manager New Vehicle Sales New Vehicle Sales 80 sales 70 sales CSR CSR CSR CSR CSR CSR CSR CSR ISS ISS ISS ISS ISS ISS ISS ISS 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 Francisco Abalos 40 sales BDC Manager Bryan Long Used Vehicle Sales Internet Sales Manager Used Vehicle Sales CSR CSR CSR CSR 9 10 11 12 40 sales ISS ISS ISS ISS 9 10 11 12 Kelly Slaughter & Lisa Sarata CRM Administrators •Phase 2 Team Expansion: Internet split into new and used managed teams New BDC split into new and used managed teams Position CRM administrative position added (showroom)
- 14. Courtesy Chevrolet CRM/eBusiness Teams as of July, 2006 Ralph Paglia Mike Gordon IT Director CRM/eBusiness Director Joel Matteson George Salman BDC Manager Internet Sales Manager New Vehicle Sales 100 sales 90 sales New Vehicle Sales CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Francisco Abalos Bryan Long BDC Manager Internet Sales Manager Used Vehicle Sales 60 sales 50 sales Used Vehicle Sales CSR CSR CSR CSR CSR CSR ISS ISS ISS ISS ISS ISS 11 12 13 14 15 16 11 12 13 14 15 16 Patrick Miller New Courtney Daly Ron Daly & Scott Daly Internet Sales Manager eFinance Admin. Special eFinance Team Position Courtesy On Bell 35 sales 25 sales Lisa Esquivez Omara Spriggs Designated Sales Consultants eFinance BDC efinance Sales Certified to Handle Internet Lead Appointments •Phase 3 Team Expansion: Kelly Slaughter & Cecy Girod Special eFinance team CRM Administrators Courtesy-on-Bell ISM
- 15. Courtesy Chevrolet CRM/eBusiness New BDC with 27 Work Stations Opened in September, 2006
- 16. Courtesy Chevrolet CRM/eBusiness New BDC with 27 Work Stations Opened in September, 2006 90,000+ Outbound Phone Calls / Month
- 17. Courtesy Chevrolet CRM/eBusiness Teams as of September, 2006 Mike Gordon Ralph Paglia IT Director CRM/eBusiness Director Joel Matteson George Salman Internet Sales Manager BDC Manager New Vehicle Department Vernon Intara Cisco Abalos 125 sales BDC Team Leader BDC Team Leader NEW Vehicle Sales USED Vehicle Sales ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS 125 sales 125 sales 1 2 3 4 5 6 7 8 9 10 CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR Bryan Long 1 2 3 4 5 6 7 8 9… 12 ISS ISS ISS ISS Internet Sales Manager 11 12 13 14 Used Vehicle Sales 75 sales CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR 13 14 15 16 17 18 19 20 21… 24 ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS 15 16 17 18 19 20 21 22 23 24 Barbara Mason 50 sales eFinance Manager Ron Daly & Scott Daly Adrian Fajardo 50 sales Internet Sales Manager Special eFinance Team Certified Judith Rodriguez Courtesy On Bell Sales eFinance Admin Consultants Phase 4 Team Expansion: Assigned New 26 Workstation BDC w/1 Manager supervising 2 Team Leaders; to Handle Kelly Slaughter & Cecy Girod 1 New Car BDC Team Leader & 1 Used Car BDC Team Leader - Internet Leads CRM Administrators Consolidate 2 BDC’s into 1 and develop new & used BDC Teams
- 18. Courtesy Chevrolet CRM/eBusiness Teams as of January, 2007 Ralph Paglia Mike Gordon CRM/eBusiness Director IT Director Joel Matteson George Salman BDC Manager Internet Sales Manager New & Used Dept.’s New Vehicle Department Vernon Intara Steven Clemens 112 sales BDC Team Leader BDC Team Leader NEW Vehicle Sales USED Vehicle Sales ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS 120 sales 120 sales 1 2 3 4 5 6 7 8 9 10 CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR Bryan Long 1 2 3 4 5 6 7 8 9… 12 Internet Sales Manager ISS ISS ISS ISS Used Vehicle Sales 11 12 13 14 80 sales CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR 13 14 15 16 17 18 19 20 21… 24 ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS 15 16 17 18 19 20 21 22 23 24 Certified Sales Adrian Fajardo Consultants Internet Sales Manager Eric Steffes, Kevin Youtsy, Omara Spriggs Courtesy On Bell Assigned eFinance Sales Team to Handle Internet Leads 60 sales Toni Hunter & Jackie Bombardo 25 sales CRM Administrators
- 19. Courtesy Chevrolet CRM/eBusiness Teams as of March, 2007 Mike Gordon Ralph Paglia IT Director CRM/eBusiness Director Joel Matteson George Salman ISM #1 Mike Funk BDC Manager New Chevrolet ISM #2 New & Used Dept.’s New Chevrolet 70 sales Vernon Intara Steven Clemens 70 sales BDC Team Leader BDC Team Leader NEW Vehicle Sales USED Vehicle Sales ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS 1 2 3 4 5 6 7 8 120 sales 120 sales 9 10 11 CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR Bryan Long 1 2 3 4 5 6 7 8 9… 12 Internet Sales Manager ISS ISS ISS ISS ISS Used Vehicle Sales 12 13 14 15 16 80 sales CSR CSR CSR CSR CSR CSR CSR CSR CSR CSR 13 14 15 16 17 18 19 20 21… 24 ISS ISS ISS ISS ISS ISS ISS ISS ISS ISS 15 16 17 18 19 20 21 22 23 24 Certified Sales Adrian Fajardo Consultants Internet Sales Manager Assigned Courtesy On Bell Eric Steffes, Kevin Youtsy, Omara Spriggs to Handle 60 sales eFinance Sales Team Internet Leads Toni Hunter & Jackie Bombardo 25 sales CRM Administrators
- 20. Document Roles & Responsibilities for All Internet Sales Positions
- 21. Document Pay Plan & Bonus Structure that reflects taller Internet sales funnel * July 2006 Interactive Marketing Budget
- 22. Lead Volume puts pressure on response times as a factor of staffing levels!
- 23. Staffing and Organizational Structure Determines Process Execution Capabilities and Monitoring % of Statistical Top 4 Ways Purchase Purchase* Correlation to Close Dealer Response Attributes Respondents* among the Factor of who DID More Sales Experienced by Customers within NOT Leads who Response attribute to Leads DID experience Received 24 hours of Submitting an Inquiry the attribute Experience with Vehicle Purchase the attribute Make Direct Phone Contact with Customer #1 (after sending Email w/availability & prices) 17% 27% 11 #2 Send Price Quotes by Email to Customer 20% 27% 9 Contact Customer more than once by Email #3 and Telephone (within First 24 Hours) 21% 25% 5 Make sure Customers are either Completely or #4 Very Satisfied with the Lead Response 21% 24% 3 *Survey Participants who Purchased a Vehicle were identified via RDR data cross reference and matching with Internet Lead Data
- 24. Staffing and Organizational Structure Determines Process Execution Capabilities and Monitoring Customer goes online and submits Lead Internet Sales Specialist ISS) reviews lead, selects 4 vehicles for Price Quotes Sends email with Quotes & Cars BDC Staff makes initial phone call, collects customer info, sets up an appointment for the ISS If no appointment, ISS Contacts customer and seeks appointment and/or agreement
- 25. Lead Process Maps should be indexed to email templates, phone scripts and word tracks so that dealership employees have a “paint by numbers” guide to what is expected when a lead is received. This process map focuses on the first 12 hours after a new lead is received.
- 26. Lead Process Maps should contain brief explanations for the logic and execution tips for employees to review before actually using the email templates, phone scripts and word tracks. Actual template illustrations make it easy for dealership employees to recognize the right template or document when they see it in their CRM tool.
- 27. When Lead Process Maps are indexed to correspondingly numbered email templates, phone scripts and word tracks, the dealership is far more likely to execute the repetitious tasks that create customer experiences which correlate with higher sales closing ratios. The best process maps break down email and phone contact processes into separate flows so that they can be executed by different resources when scaling up lead volumes and organization structures.
- 28. Have a defined process for “closing out” unsold leads Although many car guys will say they believe in the concept of following up until prospects either buy or die… Large scale lead generation through highly effective marketing practices requires that scarce resources be allocated to where they will generate the most sales. Outsourcing followup on leads that have reached a designated status (dormant) or assigning them to alternate resources such as a BDC will allow ISS’s to stay focused on the 50% of the leads that buy, and do so within the first 10 days
- 29. Actual OEM Internet Mystery Shop Scoring Index LMP Scoring Index Objective Review of Dealership Employee Lead responses encourages consistency and creates a numeric accountability – an LMP Report Card for Dealer or GM review…
- 30. Growing Your Internet Staff from 10 to 300 Cars per Month Nothing has more impact on results than phone contact with the customer! Outbound phone calls, ongoing phone follow-up and responding to emails requires adequate staffing and skill levels
- 31. Telephone Process • 85% of Web visitors who contact the dealership before coming into the showroom, use the phone • Direct Phone contact (after responding to an Internet lead by email), has the greatest impact on increasing sales closing ratios Phone Follow-Up Sales Strategy: • Focus on having a set of objectives in front of us, each time we make an email follow-up call • Word Track Forms (scripts) are used for training and collecting customer information during each call that is made immediately after sending personalized email response