Algebra Books and Crayons-The Trouble with your Lead Management Tool
I have worked for over 15 years in the automotive sales industry – my formal education includes a Bachelor’s in engineering and a Masters in marketing. That stated, I in no way intend to demean the intelligence or ability of any of the hard-working people in this business by the title or contents of this article. I consider this business to be challenging, exciting and extremely dynamic given all of the market forces driving change in the traditional business model. Personally, I am privileged to have been able to build a career doing something I love for so long.
The lead management tool, used by most Internet sales organizations, is a necessary and extremely important element to selling cars. The tool manages the prospect data, schedules salesperson actions and reports on key information like response time and closing ratios. It aggregates multiple lead sources into a single database. This tool and the invaluable data about potential customers is critical to the success or failure of any dealer who intends to be where this industry is going and not captivated by past habits. Here’s what I’ve learned in 15 years and by personally experiencing every lead tool available in the market:
The usability of any lead management tool can only be best understood by those who have spent time successfully managing Internet sales within a dealership.
Most of the lead management tools available on the market today have been developed by software programmers unfamiliar with the dealer or the sales environment who then consult well-meaning but unknowledgeable people about what their database should do. So those who barely know have consulted to those who don’t, and quite frankly, shouldn’t know how to manage and run successful internet sales within a dealership.
Which leads us to-
The result - most lead management tools are far too complicated visually and operationally for the people who use them. Multiple paths to arrive at customer data or to generate emails or complete scheduled events creates confusion, dilutes the training experience and kills the intended goal of engaging and managing the customer. It’s even worse for the manager overseeing the sales team who must maximize his time across multiple sales functions to try to manage a system with numerous complicated reports and multiple click paths to get to basic, real-time meaningful information.
Hence, the title - If you give Algebra books to a kindergartners and they color on the pages with crayons, who can blame them? They will naturally operate at the level they need to for their own well being and they will capitalize on the complexity and confusion to justify non-compliance to your Internet sales process.
Evaluating the sales people defines how you evaluate the tool
Being able to quickly understand and evaluate what your Internet sales people actually do during the day is singularly critical when selecting a lead management tool. How quickly was the incoming lead responded to; how many calls in what time-frame and what was said; at what point did the Internet salesperson turn the contacted but non-responsive lead to a manager, etc. etc.? DMS compatibility, Website integration, automated programming, and reporting breakdowns are all secondary reasons to select a lead management tool. Simplicity of the user interface, process creation, reporting and oversight are your primary concerns. Get references and check customer service availability, service uptime, response time and time to resolution as well.
Regardless of the lead tool, it’s the process!
Process management is the key to the ills of poor Internet sales in your dealership. This marketing medium will require more work from your sales staff and managers, but the net is dramatically higher. If you don’t have the same level of measurable control, results and accountability in your Internet sales as you do on the floor, find someone who can help you NOW! You’ll see dramatic results and run circles around your competition who has no clue on how to get results with it. The smart dealers of this market will get in the trenches and figure out what really works.
As a wise man in this industry once said to me - “Not every thing we do in this industry is wrong.” We still have to sell cars and make profit. How we get customers and manage sales people is changing. Select your tools wisely and beware of sales pitches and promises from those who haven’t done what you do, or who don’t use the tools they sell. Look through the eyes of a salesman / manager. In the end, they are the ones who deliver the sales or are hindered from them.
Bill Phillips
President and founder of Automotive Internet Management Inc.,
An Internet sales training, management and oversight consulting company.
AIM, Inc.
350 Goddard
Irvine CA,
949-716-7716
November 21st, 2008 at 3:08 pm
This is a great post! You are definitely correct that most software applications simply look and feel like they were created by computer programmers and not designed to be user friendly.
The inherit problem with all software is that ultimate flexibility creates ultimate complexity. CRM systems are very large flexible and complicated systems.
As the CTO of VinSolutions the usability of all of our software products is my number one priority. There is a constant battle between flexibility, complexity and usability.
November 22nd, 2008 at 3:36 pm
I think I agree and disagree at the same time. I think the biggest problem with most software packages is that most customers only use about 25% of the capability then blame the vendor for the lack of success. Your right that people (sales staff and managers) will take the path of least resistance and only use it as much as they have to. Getting by is enough, for a lot of people. This takes us back to a couple of previous posts about “Who to hire” and “Fire the whiners”.
It is the responsibility of the BDC Director/Internet Director/IT Director (your top IT person) to master the software. If they can’t do that get someone else. Build your process and the best path and procedure with the software. Train on that and keep everyone on the path.
Unless you pay the money to build a custom CRM/Lead Management tool you have to take a package that was designed with the broadest customer appeal. And yes it was probably redesigned to “fit” into the automotive industry or designed by someone who had no direct understanding of Automotive Internet sales.
Using off the shelf software is about “workarounds”. Blaming software for a lack of sales is like blaming your vehicle manufacturer for it. A salesman can sell any car in any market. The person you put in charge of your internet department (or any department for that matter) should know what needs to be done, how to do it, what to measure and how to measure it, if they can’t get the job done find someone who can. Some of the tools out there help a lot, some a little and some just plain stink. The Romans built building 2000 years ago with out power tools, cranes or laser levels and they’re still standing. Their tools pretty much stunk back then.
November 26th, 2008 at 6:26 am
What I keep hearing about across the nation is the lack of sales talent and the small pool from which to hire from. Even though people that we lost to Big Real Estate pay checks are returning to the business in record numbers.
I have found good people in this industry, think like minded. I believe the software should match how the good people think and at the same time allow us to manage the bad ones. Good managers can manage bad people and bad managers only want to manage good people who don’t need managing.
Dealers selecting tools right now are usually always those who struggling with this new consumer contact point. Belief that the new tool will solve the problem is a big mistake. The tools can hinder the user if they aren’t simple to use in this industry.